Real Estate Information Archive

October 27, 2014

 

HARRY’S BI-WEEKLY UPDATE

                     A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

                                                  

 NOTE TO SELLERS -- “TAKE TWO TYLENOL AND CALL ME IN THE MORNING”

The Wall Street Journal, 10.24.14

An article to be published next year in the Journal of Experimental Social Psychology is entitled, “Can Acetaminophen Reduce the Pain of Decision-Making?”.  It builds on previous work that shows emotional pain can overlap with the physical kind. 

This study caused Stefanos Chen, a columnist for The Wall Street Journal, to wonder if the painkiller Tylenol (brand name for Acetaminophen) could compel homeowners to reduce their asking price.

I, of course, read this article and couldn’t help but smile.  I thought you might enjoy a brief synopsis. 

According to Nathan DeWall, co-author and professor of psychology at the University of Kentucky, “when people talk about decisions they have to make, they talk in terms of pain.”  Consider the neighbor who says that selling his house “hurt”. 

An experiment of 95 undergraduate students showed, as predicted by researchers, that “loss aversion”, a decision-making theory that people would much rather avoid losses than acquire gains,  can be proven scientifically.  Loss was found easier to accept by those taking acetaminophen than those who did not. 

“It was easier for them to give up something they owned—and that’s really hard for people to do,” Prof. DeWall said of the group on acetaminophen. 

“It’s the same principle at play when a sentimental homeowner balks at an agent’s comparable sales figures and demands a higher price for his home,” he added. 

The study certainly offers insight but not all the answers, he said.  “I’m not saying that if you take acetaminophen people are going to stop fighting with their real-estate agents.”

The moral of the story?  When you and your real estate Agent are at odds over the pricing of your home or the thought of lowering the asking price—try Tylenol—and see if it helps.  It certainly can’t hurt!

 

RELAXED MORTGAGE LENDING RULES, LOWER DOWN-PAYMENTS, IN THE PIPELINE

The Wall Street Journal, RealtorMag, The Gazette, HousingWire, 10.14

So many stories this last week concerning new rules and regulations for home financing.  This past year has been tough for those looking for mortgages, especially first-time borrowers, in part due to the Dodd-Frank Act which went into effect January 10, 2014.  This regulation was intended to help financial institutions avoid sending the housing market into another recession due to “risky” mortgages made to borrowers who had marginal credit and little documentation to justify the loans. 

Unfortunately, as I and many others predicted, enforcement of the new regulations hampered many borrowers from obtaining a mortgage and the housing market slowed down substantially.  

Several things are in the pipeline and include:

• An agreement between Fannie Mae and Freddie Mac, which could lower barriers and restrictions on borrowers with weak credit.  This would help lenders protect themselves from claims of making bad loans and would require a 3% down-payment (as was once the case) rather than the 5% minimum of recent times.  It’s possible the 3% could be limited to first time homebuyers, but those are the ones who have been hurt the most recently and this will drastically reduce their expense in obtaining their first home mortgage.

Fannie and Freddie do not make loans directly.  They buy them from lenders and package them into securities and then give guarantees to make investors whole if borrowers do not repay.  This payback comes from penalties charged to mortgage lenders and in turn, lenders have been making mortgage loans only to borrowers with excellent credit in the recent past.  Regulators and lenders are still walking a fine line between expanding mortgage access and moving too far toward the loose credit that led to the crisis.  Borrowers will still be required to not carry excessive debt relative to their income, but with the “lower down-payment loans” made “sellable”, more buyers will qualify for loans.

• A long stalled provision of the Dodd-Frank Act has been approved by The Federal Reserve, Securities and Exchange Commission and the Department of Housing and Urban Development which will result in relaxed mortgage-lending rules. 

Originally, lenders were required to hold 5% of the risk of mortgages packaged and sold to investors or require a 20% borrower down payment. But regulators, concerned that overly stringent rules would harm the housing market’s continued recovery, backtracked on the 20% down payment. 

Banks will now be able to avoid the 5% risk-retention requirement if they verify a borrower’s ability to pay back the loan and comply with other requirements, such as a borrower’s debt payments not exceed 43% of income.  These represent an effort to ensure that more mortgage loans are available to consumers.

• Mortgage lenders are looking to lower the minimum FICO scores that borrowers need to qualify for a jumbo loan.  A FICO score is the most commonly used method for determining credit scores and is used by Trans-Union, Equifax and Experian, the nation’s three biggest credit agencies. 

While today a borrower may be able to get a jumbo loan with a FICO score as low as 680 out of a possible 850, many lenders draw the line at anything below 720.  The best terms go to those with a score of 760 and higher.  Now, though, lenders are wanting to get more jumbo loans, those that exceed Fannie Mae and Freddie Mac conventional loan limits of $417,000 in most places and $625,00 in some high-price areas.  To do so they are looking at lowering the required minimum FICO score if all other factors are met.  

I realize all of this can be a bit complicated and every situation is different.  That’s why I’m here for you.  I study all the new regulations as they come out and do my best to mesh the best mortgage lender for each individual client.  My forty-two plus years in the local real estate arena has given me the edge in knowing exactly what’s available and I can help steer my clients in the right direction for their personal situation.  If you, or any family member or co-worker is in the market for a new, or new-to-you, home, please give me a call at 598-3200 or email me at Harry@HarrySalzman.com and let me put my extensive knowledge to work for you. 

 

MORTGAGE RATES STILL HISTORICALLY LOW, DEFYING EXPERTS’ PREDICTIONS

Housing Wire 10.15.14, The Wall Street Journal 10.26.14

Despite experts who have long predicted differently, interest rates keep tumbling and are offering borrowers a fresh opportunity to save money.

The week ending October 17, 2014 saw the fixed-rate, 30-year mortgage fall to 4.03%, the lowest level since June 2013 and it remained there through last Thursday.  This compares to 4.29% in mid-September and can translate into tens of thousands of dollars in savings through lower monthly payments over the course of a 30-year mortgage. 

Along with lower interest rates, home loan demands have surged, with applications jumping nearly 12% in the week ending October 17^th compared with a week prior, according to the Mortgage Bankers Association. 

This increase is being driven by those wishing to refinance existing mortgages, but falling interest rates are also helping ease the sting of rising home prices by making it possible to afford a house that might otherwise by out of reach. 

All of this is good news for both Buyers and Sellers.  If you are looking to Sell and Trade Up, or Buy for the first time or for Investment purposes, the low mortgage loan rates are going to work in your favor. 

First time buyers will find that with increasing rental payments, it makes sense to own if at all feasible.  When you rent, you’re paying someone’s mortgage, so why not find out if it’s to your advantage to pay your own?

If you’re looking to Buy for Investment purposes, those higher rental prices are going to help you recoup your investment a lot sooner. 

And, if you’re looking to Sell and Trade Up, the lower interest rates will help you keep your new mortgage payments down while helping your potential Buyers do the same.

All in all, it’s a great time to be in the housing market and if you’ve been sitting on the fence, now is a great time to give me a call and determine whether or not your real estate dreams can be realized. 

 

WHEN PURCHASING A NEW HOME, SHOULD YOU RENT YOUR HOUSE RATHER THAN SELL IT?

Keeping Current Matters, 10.14.14

A recent study concluded that 39% of Buyers prefer to rent out their last home rather than sell it when purchasing their new home.  The reasons cited were that “many homeowners were able to refinance and ‘locked in a very low mortgage rate in recent years.  That low rate, combined with a strong rental market, means they can charge more in rent than they pay in mortgage each month…so they are going for it.’”

Residential real estate is a great investment right now and in some cases this makes perfect sense.  However, there are a number of questions you might ask yourself BEFORE you decide to follow this path.

1. How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations?  (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
2. Because of the economy, many homeowners cannot make their mortgage payment.  What percentage of tenants do you think cannot afford to pay their rent?
3. Have you interviewed experienced eviction attorneys in case a challenge does arise?
4. Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5. Will you allow pets?  Cats? Dogs? How big a dog?
6. How will you actually collect the rent?  By mail?  In person?
7. Repairs are part of being a landlord.  Who will take tenant calls when necessary repairs come up?
8. Do you have a list of craftspeople readily available to handle these repairs?
9. How often will you do a physical inspection of the property?
10. Will you alert your current neighbors that you are renting the house?

Bottom line:  Historically, renting out Residential real estate is a great investment but not one without its challenges.  Be certain that you have decided to rent your home because you want to become an Investor, not because you are hoping to get a few extra dollars by postponing a sale.

 

WINTER SKI GUIDES AVAILABLE AT THE OFFICE

We have a limited number of copies of the 2014-15 Winter Guide produced by Colorado Ski Country USA at the office, so if you’re interested, just stop by and pick one up. 

 

HARRY’S PHILOSOPHY OF THE DAY

(some more words of wisdom I picked up at the Chicago conference..)

 

“Luck is a dividend of sweat.  The more you sweat, the luckier you get.”  --Ray Kroc

“To find joy in work is to discover the fountain of youth.”  --Pearl S. Buck

“”Try not to become a person of success, but rather try to become a person of value.”

--Albert Einstein

“The two most important days of your life are the day you were born and the day you found out Why.” --Mark Twain

 

 

 

                                                            

October 14, 2014

HARRY’S BI-WEEKLY UPDATE

                  A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

                             

SEPTEMBER LOCAL STATISTICS LOOKING GOOD

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

Local homeowners should be happy with the recently released housing statistics. While the month-over-month averages are not increasing as quickly as they did several years ago, the slow, steady growth we are seeing is a good sign that the housing market is stabilizing and continuing to provide increased equity for homeowners.

In general, September is a slower sales month.  People with children still at home and in school want to make certain they are settled in prior to the start of the school year, therefore more sales usually happen prior to Labor Day.

As you will see, September sales in El Paso County show that the relationship of selling price to listing price is 98.4%.  And the average days on the market is 80.  This means that if you are planning to Sell and you price your home realistically, it’s going to happen.  If you are in the market to Buy, it’s also a good time because prices are not increasing at too fast of a pace and interest rates are still historically low.  There are fewer homes available, though, and that’s possibly due to the higher price of rentals.  A number of renters are looking to become first-time homeowners, figuring that if they are going to pay someone’s mortgage it might as well be their own!

Here are some highlights from the report.  Please click here to view the detailed 10-pages .  If you have any questions about the report or anything else to do with Residential real estate, please call me at 598.3200 or email me at Harry@HarrySalzman.com.  

In comparing September 2014 to September 2013 in PPAR:                       

                        Single Family/Patio Homes:

• New Listings are 1,249, Up 8.0%
• Number of Sales are 1,026, Up 23.8%
• Average Sales Price is $253,218 Up 3.3%
• Median Sales Price is $225,000, Up 5.6%
• Total Active Listings are 3,831, Down 5.9%

                        Condo/Townhomes:

• New Listings are 172, Up 19.4%
• Number of Sales are 153, Up 51.5%
• Average Sales Price is $162,458, Down 6.6%
• Median Sales Price is $150,000, Up 7.9%
• Total Active Listings are 405, Down 11.2%
•  

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Average Sales Price

Black Forest                            $393,500                              $380,587

Briargate                                  $272,750                              $312,731       

Central                                      $176,500                              $215,121

East                                          $175,250                              $185,264

Fountain Valley:                      $190,950                              $199,041

Manitou Springs:                    $275,250                              $294,493

Marksheffel:                             $258,000                              $277,047

Northeast:                                $220,000                              $243,386

Northgate:                                $350,000                              $377,733

Northwest:                               $307,250                              $336,629

Old Colorado City:                  $174,450                              $195,653

Powers:                                    $222,000                              $223,671

Southwest:                              $240,500                              $317,226

Tri-Lakes:                                $349,625                              $360,214

West:                                         $242,500                               $295,602

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

WORLDWIDE relocation COUNCIL MEETING FOCUS WAS “ENJOY LIFE”

I just returned from a week in Chicago where I attended meeting with Realtors from all over the world who specialize in relocation—either around the world, around the country, or simply around the corner.  It’s always energizing to share stories and gather new information that I can use to help turn what can be a stressful experience for my clients into one that is as stress-free as possible. 

Easing stress during relocation for the entire family is of prime importance to me.  There are so many stress triggers that need to be dealt with, such as:

• Possible Negative Equity in the current home and its subsequent listing for sale
• Loss of spousal income and spousal job search
• Unfamiliarity of new town or neighborhood
• Schools
• Disclosure/Inspection issues
• Household goods move
• Mortgage qualifications

These stress triggers, and more, are just another reason why it’s important to deal with a competent real estate Broker who can assist you in all the above areas and help you find solutions to potential problems even before they surface. 

A Broker familiar with relocation will be acquainted with Brokers all over the world who can help with getting a current home listed when the move entails a cross-country or cross-the-world situation.  My many years of involvement with the Worldwide Relocation Council (WRC) has given me the pleasure of meeting Brokers who have the same “customer service” orientation as I do.  Knowing this, I can make certain that my clients will receive the same good advice that I give on a local level.

The “Enjoy Life” theme also concentrated on the “retirement journey” that many of us will travel, either soon, or one day in the future.  There are so many questions involved in setting goals and objectives for Retirement and many of them need to be answered long in advance of the actual act of retiring. 

Some of the Goals and Objectives might include:

• Where do I want to live?  City, State, Country, Home, Condo, Retirement Community?
• What do I want to be able to do with my time?
• How is my health now and expectations for future?
• Estimate how much you will need—one rule of thumb is that you will need 70% of your annual pre-retirement income to live comfortably
• Create an overall plan, including financial lifestyle, family, long-term care, insurance, will

Looking at these areas are important to do BEFORE you decide to retire as the answers to many of these questions will determine where, when and IF you are ready to retire.

A MetLife Study of Baby Boomers (1946-1964) done in April 2012 showed:

• 2011--- oldest Baby Boomers reached new milestone—Age 65
• 45% of Boomers age 65 are now fully retired
• 14% are retired, but are working part-time or seasonally
• 37% of those who retired earlier than planned cited health-related reasons and 16% cited job loss
• 27% of those working said they needed income for daily living and 13% cited desire to stay active
• On average, Boomers not retired yet plan to do so by age 68.5
• 71% are married or in a domestic partnership, 12% divorced or separated, 10% widowed and 7% single
• 83% have children, 84% have grandchildren and 24% caring for at least 1 parent
• 93% currently own their own homes, valued at $255,000

Lots to think about.  It’s always a good idea to make plans earlier than necessary and I’d certainly recommend you talk to your financial, tax and other advisors for help for your individual situation.  One thing you might ask them about is the possibility of owning investment property, which can help grow equity while providing you with a monthly income, probably more then the mortgage payment.  If that’s something that you are considering, give me a call and I can help you define your investment property goals. 

As an aside…I did manage some personal time in Chicago and lo and behold, I couldn’t escape my profession even while taking a leisurely walk.  The first building I saw was “The Realtor Building”, home to the National Association of Realtors, on Michigan Avenue.  There was a wooden-horse decorating contest going on and here is a picture of me with the one designed by the Realtors—entitled “The A-MARE-ICAN Dream of Property Ownership.”

 

A FEW MISTAKES THAT CAN SABOTAGE YOUR HOME SALE

RISMedia, 10.3.14 & The Wall Street Journal, 10.2.14

I’ve been asked over and over what I think needs to be done in order to get a home in “Selling Condition”.  My answer will differ from home to home and some will need more updating than others.  I wanted to share some information I recently read.  Not all of it will apply to all Sellers, but it’s certainly a good place to start. 

According to the real estate Staging Institute, a “staged” home sells 70% faster than a non-staged home.  Below is a list of common staging mistakes to avoid:

1. Mistake:  Not creating space.  Clutter robs a home of space.  Make sure everything is cleared from the countertops and remove at least two-thirds of books on the shelves.  Closets should be half full.  If a Buyer sees a jam-packed closet they will think it’s too small for them.
2. Mistake:  Excessive furniture.  Too much, or over-sized furniture can ruin a home sale.  Swap out a king sized bed for a queen in order to create more space unless the room is large.  Pull furniture two or three inches from the walls throughout the house and allow the corners of the room to be visible.
3.  Mistake:  Household smells.  The only thing as important as decluttering is having an immaculate house.  A house that smells odd to a prospective Buyer, whether because of a cat’s litter box, a dog or exotic food smells, can easily be a deal breaker.  Don’t try to mask smells with room freshener.  Simply open windows a few minutes before your home is being shown.
4. Mistake:  Failure to edit.  Too many personal items can increase clutter.  Remove as much as possible to allow the potential Buyers to picture the home as one they want for themselves.
5. Mistake:  Having more than one focal point in a room.  Every room needs a focal point but more than one is overkill.
6. Mistake:  Color Faux Pas.  It’s important to maintain a continuum of a neutral paint color throughout the main areas of the house to provide a sense of openness and flow.  This also helps make a room look bigger.
7. Mistake:  Covering up the light.  Lighten up!  You want as much light to come in as possible.  Remove unneeded blinds.  Pull drapery aside.  You want a Buyer to think: “I could live here, it’s nice and bright.”
8. Mistake:  Skipping the walk-though.  Make a trip through your home and test all the cupboards, cabinets and drawers for proper opening and closing.  Squeaky cupboards or jammed drawers will make the Buyers think they will need to fix them.  Replacing hinges and greasing drawer tracks is inexpensive and quick.
9. Mistake:  Neglecting the exterior.  The front porch is the home’s first impression.  Painting the front door and placing seasonal planters on each side improve the look.  Keep lawns freshly mowed and pressure-wash outdoor decks and aluminum siding.  This can do wonders for a home’s first impression and boost its value.

So there you have it.  Just some common sense suggestions that can help get a home ready for sale.  This is a great time to pare down and get rid of things you have been saving but really don’t want to move to your next home.  And, as always, I’m here to help with suggestions for your individual property to make certain the “first impression” is a good one.

 

HARRY’S PHILOSOPHY OF THE DAY

(some other words of wisdom I picked up at the Chicago conference..)

 

“Never get so busy making a living that you forget to make a life.” –Dolly Parton

“”Don’t be afraid to give up the good to go for the great.”  --John D. Rockefeller

“”Things work out best for those who make the best of how things work out.”  --John Wooden

“We make a living by what we get, but we make a life by what we give.”  --Winston Churchill

“Choose a job you love and you will never have to work another day.”  --Confucius

 

 

 

 

                                                            

September 29, 2014

HARRY’S BI-WEEKLY UPDATE

                        A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

                             

 

                                       

 

 

GUESS I’D RATHER BE IN COLORADO….

For those of you who have gotten to know me well, that goes without saying, but it’s most especially true this time of year when we get to see the Aspen trees change color in the mountains.  I don’t think there is anything as spectacular and there’s just a short window for viewing.  This past weekend, we were able to see nature at its best and I wanted to share several pictures I took with you.  It’s impossible to capture the magnificence of it all, but the photos above will give you a small idea of what I’m talking about. 

Those of us that call Colorado home know that our state is gorgeous in all four seasons.  And each season offers something for everyone—from sporting activities to sightseeing and great food.  For those looking to relocate here, you’re in for a treat.  You will soon realize what I mean when I talk of our “Rocky Mountain High”.  There’s just nothing like it.

SPEAKING OF FOUR SEASONS, HOME BUYING CAN BE TRICKY WITHOUT A COMPETENT real estate BROKER

The Wall Street Journal, 9.22.14

There have been lots of articles about the housing recovery and how it’s starting to slow down a bit to catch its breath so to speak.  Prices are continuing their upward climb and mortgage rates are still historically low.  However, the market’s foundation is starting to wobble a bit and forecasters are beginning to rethink their higher price valuation predictions. 

The slowdown is good news for homebuyers, of course.  The recent weakness in real estate investments, including homebuilders, has created opportunities for bargain hunters, some analysts say.  However, if the Federal Reserve begins raising interest rates next year as expected, the cost of financing will increase—making things tougher for Buyers and Investors alike. 

Many analysts argue that now is a good time to buy.  The slowing growth in prices makes homes more affordable, even as rental costs inflate for single-family homes and multifamily apartments.  Interest rates remain low, with the average for conforming 30-year fixed-rate mortgages recently at 4.19%, close to the lowest levels of the year. 

Some of the slowdown has to do with the time of the year, but I’ve found that no matter what the season, if you are dealing with a competent real estate Broker who has been successful during all seasons and some recent economic cycles, you can expect to find just what you are looking for.  It’s easy to find a home, either for personal use or investment, when the market is hot, but market conditions change and you need to make certain that you are dealing with someone who knows the “ins and outs” of every season and every cycle. 

With my 42 plus years in the local real estate arena, I’m uniquely qualified to help you and your family with all your Real Estate needs.  Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if now is the right time to make things happen for you.

 

MORTGAGE LENDING CAN BE PUZZLING

The Wall Street Journal, 9.12 and 9.22.14

With the mortgage credit game changing constantly and with more changes to come, it’s hard to know exactly where to get the best loan for your specific needs.   Those with top credit scores will find it much easier than most to qualify for loans of all types and will find that the shift in mortgage lending rules will present an opportunity to get a larger loan—and better home—without having to pay a higher interest rate. 

While fixed rate mortgages have been the norm lately, Adjustable Rate Mortgages (ARMs) with a 30 year repayment period and fixed rate for the first 10 years offer a conservative option for those looking for lower payments.  Most borrowers won’t need the loans for more than the fixed period as the typical Seller in 2013 owned his home for nine years, according to the National Association of Realtors. 

Borrowers who are considering an ARM should look for one with a fixed rate at least as long as the period they are planning to keep the house since the loan’s interest rate will rise considerably once the fixed period ends.  They should also put aside some of the savings they realize from the lower initial monthly payments in case they need to stay in the home longer than originally planned.

But no matter what type of mortgage loan a borrower may want, it’s not a “one size fits all” type of situation.  What is the best type of loan for those who qualify for the best rates and terms? Where do you go for lending if you are not in the select group with top credit scores?  What if you’ve had a bankruptcy or foreclosure?  These questions, and others, are very important to borrowers and another reason why you need to work with a qualified, competent real estate Broker.  A good Broker will have established contacts with lenders and can help direct you to the one that will work best for your individual financial situation.  This should be done prior to finding a home so that you won’t be disappointed.  You will know in advance what best fits your budget and being pre-approved will give you peace of mind while shopping for homes.  The “wrong” lender can make the home buying experience an unpleasant one and that’s something I’ve seen too often when the Broker hasn’t done everything necessary to help their Buyer. 

An important part of my service is making certain that I understand the needs of each client and with my investment banking background I do the homework to make certain that my clients are directed to a competent mortgage lender best suited for their needs. 

Today’s mortgage lending is getting more and more complicated but it doesn’t need to be for you.  Making sure you deal with the “right” real estate Broker can help alleviate many of the problems which could arise long before they do. 

Enough said for today.

 

HIGHER RENTS, LOWER WAGES ARE LEAVING MORE CASH-STRAPPED

RealorMag, 9.16.14

Nationwide, rents have risen by 6 percent according to data compiled from Harvard’s Joint Center for Housing Studies, and renters are increasingly becoming cash-strapped while facing the higher rents in conjunction with shrinking or stagnant paychecks. 

Traditionally, homeowners have long outnumbered renters by more than three to one, according to Realty Trac.  However, since the recession, the rate of homeownership has been steadily dropping from a 69.2 percent peak in the fourth quarter of 2004 to 65.42 percent in the fourth quarter of 2013, according to Census data.

The number of renter households has risen to 43 million, or 35.4 percent of all U.S. households, which is up from 31 percent in 2004, according to the Harvard report.

This means, of course, that 64.6 percent of households own their own home, townhouse or condo and I am a firm believer that somehow we need to help turn those renters into owners so that they can start building equity rather than helping someone else do so. 

This is obviously a great time for Investors to get in the market since rental income is going up, but it’s also a good time to turn renters into first-time or once-again homeowners.  If you know someone who is renting and wants to find out the feasibility of owning, please refer them to me and let me see if I can help them realize their “American Dream”.

 

LOCAL SALES TAX REVENUE CONTINUES TO INCREASE

The Gazette, 9.20.14

A healthy tourist season helped sales tax collections increase for a fourth straight month in August, according to a report from the Colorado Springs Finance Department.  Collections of the city’s 2 percent sales tax in August (July sales) were up 8 percent from August 2013. 

No wildfires or flooding most certainly contributed to this increase in tourism.  “The fact that there were no natural disasters certainly makes it more likely that tourists will want to visit the region, but the magnitude of the increase was perhaps unexpected,” said Tatiana Bailey, executive director of the Southern Colorado Economic Forum.  “One of the benefits of a strong tourism season is other businesses that cater to tourists—restaurants and retail shops—are also having a strong year.”

 

COLORADO SPRINGS RANKED AMONG “INTELLECTUAL ELITE”

The Gazette, 9.17.14

Colorado Springs is ranked 8^th in the nation among “intellectual hubs” out of 50 of the largest metro areas studies by WalletHub.com.  In comparison, Denver was number 28. 

UCCS spokesman, Tom Hutton, pointed to the growth of UCCS and the presence of Colorado College, Pikes Peak Community College, the Air Force Academy and others as some possible reasons for the high ranking.  And the officers corp at area military installations add more educated individuals to the population as does the tech sector, and many bright retirees who move here from all over the world. 

Some of the factors used to identify intellectual hubs by WalletHub, a financial network, included “education level” and “quality of education”.

Here’s some of what makes Colorado Springs so high on the list:

• Second in percentage of high school diploma holders
• Fourth in percentage of college or associate degree holders
• 15^th in percentage of workers with jobs in computer, engineering and science
• 22^nd in percentage of graduate or professional degree holders
• 23^rd in percentage of bachelor’s degree holders
• 31^st in public school system ranking

So there you have it.  Just another feather in our ski-cap.  In any case, a great bragging point when speaking to our friends in Denver.

 

HELP WANTED IN COLORADO SPRINGS

The Gazette, 9.24.14

Pikes Peak Workforce Center’s semi-annual Job Fair will be held on October 8^th and 114 Colorado Springs area employers say they have openings for 6,000 to 7,000 positions within the next two to three months. 

According to Jeanne Cotter, Workforce Center spokeswoman, this will be one of the largest job fairs the Center has held in terms of the number of openings.  The spring job fair had a similar number of employers but only 2,500 positions were available then. 

This comes along with the Colorado Springs area unemployment rate falling to 6.5 percent in July—the lowest in almost six years. 

The job fair will be from 11 a.m. to 3:30 p.m. October 8 at the Hotel Elegante Conference and Event Center, 2886 S. Circle Drive.  Doors will open at 9:30 a.m. for veterans and the spouses only.

For a complete list of employers who plan to attend, go to www.ppwfc.org and click on “fall job fair”.

 

BE SURE TO REGISTER SOON FOR SOUTHERN COLORADO ECONOMIC FORUM

The Southern Colorado Economic Forum is being held on Friday, October 10, 2014 at the Antlers Hilton Hotel Ballroom. 

You won’t want to miss out on all the useful information that is presented at this Forum so it would be wise to get your registration in as soon as possible for this always-sold-out event.  You can register online at : www.SouthernColoradoEconomicForum.com . 

Salzman real estate Services, LTD is proud to be the only Residential Real Estate sponsor and has been since the Forum’s inception 18 years ago. This is a “must attend” event for anyone in business in the Colorado Springs area and I know you will find it a useful tool in making business decisions for the coming year. 

 

HAPPY NEW YEAR TO MY JEWISH READERS

The Jewish New Year 5775 is now upon us and I’d like to take a moment to wish all my Jewish readers a heartfelt “L’Shana Tova” (Happy New Year). 

To all my readers, Jewish or not, I wish you a year filled with much good health, happiness, success, love and most importantly...Peace. 

 

HARRY’S JOKE OF THE DAY

 

 

 

 

August 18, 2014

 

                       HARRY’S BI-WEEKLY UPDATE

                   A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.                       

                                    

THE “GOOD OLD DAYS” ARE STILL HERE IN “MY” WORLD

When I saw this illustration I couldn’t help think about “Dick and Jane” and “Spot” and the early days of learning to read at school.  With most schools starting this week in Colorado Springs, a lot of kids will be attending a new school because of it being their first time, graduations, or their family has moved to a new neighborhood.

I personally have helped a number of families relocate this year and when there are children involved, one of the big considerations is moving to an area with good schools, parks and other children in the neighborhood for playmates. One of the many facets of moving involves the happiness of the “entire” family, especially the young members.  Oftentimes the parents might want to look at various neighborhoods recommended by friends and I have had to lead them in another direction entirely because of my awareness of the lack of “kid friendliness” of their first suggestion. 

My objective as a Realtor is to try my best to find the best fit for the family as a “whole”.  Having been involved in more than 2000 transactions during the last 42 years has given me extensive knowledge of local neighborhoods and how they might work for a particular family’s needs. 

Neighborhoods change over time, as do the demographics and the quality of schools located within them.  No matter how much you might like a home, if it no longer suits your family’s current needs there will be considerable stress for all.  And if you are looking to Buy, the house you think is great might not be located in the best area for the needs of all family members. 

These considerations are probably the most important when looking for a home or considering to Sell your present one.  The happiness of the entire family will play a role of great importance for the next several or many years, depending on your individual situation. 

My goal is to make sure that the “Good Old Days” are here to stay for every family I relocate and I can help you and your family share in that goal.  Your happiness is important to me.  I will always make that my main focus when working with each and every client. 

 

HOME PRICES ARE RISING AT SLOWEST PACE SINCE 2012, BUT THAT’S NOT SO BAD

NAR,8.12.14, Realtor.org 8.12.14, The Wall Street Journal, 8.13-16.14, RealtorMag, various dates, DSNews 8.7.14

The National Association of Realtor’s (NAR’s) latest Quarterly Report of Median Sales Price of Existing Single-Family Homes for Metropolitan Areas was released several days ago and home value appreciation continued to moderate in 122 of the 173 metropolitan areas surveyed. 

While the median existing single-family home price increased in 71% of measured markets from the second quarter 2013, the gain continued to be lower than in recent times.  Colorado Springs was among those cities and showed an increase in median home price of 1.4% compared to a year ago.

Forty-seven areas (27%) recorded lower median prices during that same time period.  To read the 3-page report in its entirety, please click here.

Lawrence Yun, NAR chief economist, says price increases are balancing out the benefit for both Buyers and Sellers.  “National median home prices began their most recent rise during the first quarter of 2012 but had climbed to unsustainable levels given the current pace of inflation and wage growth,” he said.  “At this slower but healthier rate, homeowners can continue steadily building equity.  Meanwhile, for Buyers, increased supply with moderate price gains is giving them better opportunities to choose.”

The national median existing single-family home price in the second quarter was $212,400, up 4.4% from the second quarter of 2013.  The median price during the first quarter of 2014 rose 8.3% from a year earlier.

Yun added that despite the stabilization in price growth, sharp increases still exist in some markets and are impacting sales, most notably on the West Coast where inventory shortages are more prevalent. 

Despite the slow increase in home prices, Yun still expects home sales to make a strong showing in the second half of 2014.  He also made the following forecasts.

• Higher inflation and higher interest rates.  The Federal Reserve is planning to end its purchasing of Treasury and mortgage-backed securities in October.  Yun expects interest rates to increase in 2015.  He also expects the Consumer Price Index (CPI) which measures inflation, to increase 3.5 percent in 2015.
• Multi-year housing expansion.  The population is on the rise.  The U.S. gained 34 million people since 2000, but home sales were 5.2 million in 2000 and 5.1 million in 2013.  The pent up demand will eventually equate to additional home sales over the next few years, Yun says.
• Continued inequitable wealth distribution.  Household net worth is at an all time high, but only for the 10 percent of the U.S. population that has investments in the stock market.  At the same time, rents are rising and incomes are generally stagnant.

According to Mark Fleming, the chief economist with CoreLogic, the ongoing slowdown in price appreciation reflects a “reversion to normality” that is “expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble”.

Fannie Mae’s chief economist, Doug Duncan, in commenting on Fannie Mae’s July 2014 National Housing Survey says “the continued cautious sentiment expressed across the range of consumer indicators this month gives weight to our view that the first phase of the housing recovery is decelerating, and 2014 will be a year of mixed housing outcomes with home prices rising more slowly and home sales falling slightly.  We have always believed that for the housing recovery to be considered robust, we will need strong and sustained full-time job and income growth.  Recent data indicating the creations of more than 200,000 jobs over each of the last six months, combined with this month’s improvement in the share of consumers reporting significantly higher household income than a year ago, does provide some reason for optimism.  If these trends continue, they could lead to some upside in housing in 2015.”

For now, though, caution seems to be the rule.  Many economists are saying that price appreciation is slowing partly because Buyers, including Investors, have become more cautious and are pulling back amid the big price gains of the past year.  Also, these same price gains have persuaded more homeowners to put their homes up for sale which has added inventory.  The multiple-offer situations are not as prevalent as they were earlier this year.

There are also some Sellers who are listing their homes now rather than waiting for next year’s Spring buying season because of fear that interest rates will be higher at that time.

Highlights from the Fannie Mae Survey include:

• Half of respondents said they thought it would be difficult for them to get a home mortgage today
• The average 12-month home price change expectation dropped to 2.3%
• The average 12-month rental price change expectation fell to 3.8%
• The share of respondents who say their household income is significantly higher than it was a year ago rose by 4 percentage points to 28%--a survey high.

 And locally…

As I mentioned above, Colorado Springs saw a 1.4% increase in the median home price in the NAR Quarterly Report.  While this is lower than recent increases, it must be reiterated that our area never saw the dramatic drops or number of foreclosures that many areas in the country did. 

What these statistics mean to us is that our local homes are still increasing in value and providing steady home equity for owners.  More importantly, it means that more Buyers are NOT being priced out of the market by unsustainable home price gains that have kept them from qualifying for home financing.  It’s a “win-win” for all at the moment, most especially when you consider that mortgage loan rates are still historically low and lenders are slowly making funds more available.

 

MORTGAGES ROLL BACK TO YEARLY LOW

RealtorMag 8.15.14, Housingwire, 8.8.14

This past week, the 30-year fixed-rate mortgage rate averaged it’s low for the year at 4.12%.  The same low was reached in May as well as a week in July, this according to Freddie Mac in its weekly mortgage market survey.

The rates have countered many forecasters’ expectations so far this year by not rising, but dropping instead.

Will this continue?  According to the above statements by Yun, possibly not.  But it’s really anyone’s guess at the moment. 

The best advice I can give you is today’s interest rates are CHEAP.  If you Buy now, I believe you will be looking back a year from now and be happy that you did.

 

CHANGE IN CREDIT REPORTS COULD REVAMP CREDIT SCORES

The Gazette, 8.9.14, DSNews, 8.11.14

FICO, the company responsible for one of the most widely used measures of credit health is making changes to its current model that could boost credit scores nationwide.

In a recent announcement, analytics and decision management from FICO said its new credit model, FICO Score 9, “introduces a more nuanced way to access consumer collection information,” resulting in greater precision for lenders measuring a borrower’s credit stability.  The model will be available to lenders through the country’s various reporting agencies in the fall.

When I learn how the changes will effect home mortgage lending, you will read it here.

And good news for renters looking to buy…two of the national credit bureaus—Experian and TransUnion—have begun incorporating verified rental-payment data into credit files where it can be included in the computations of credit scores when they apply for a mortgage. 

 

MORTGAGE LENDING STANDARDS EASING

The Wall Street Journal 8.5.14, Bloomberg-BusinessWeek, 8.5.14

The Federal Reserve’s quarterly survey of banks showed that nearly one in four U.S. banks said they had eased mortgage-lending standards for borrowers with strong credit during the second quarter of 2014.  This is the largest such movement by lenders since the housing bust hit 8 years ago.

The standards have eased amid sustained increases across the U.S. in home prices and a plunge in refinancing activity over the past year. 

According to the survey, demand for prime mortgages rebounded to its highest level in a year, offering a hopeful sign for housing markets that have stumbled during the first half of the year. 

Over the past year, top policy makers have expressed concern that tight credit standards could hamper the housing recovery.  Fed Chairwoman, Janet Yellen,  speaking to a congressional hearing last month, said that while standards should have ratcheted up after the housing bubble, “it is now become the case than any borrower without a pretty pristine credit rating finds it awfully hard to get a mortgage.” 

While easing the lending standards will help some consumers, those who have high levels of debt, damaged credit from the recession or insufficient incomes to become home Buyers will have to wait for these to change in order to obtain mortgage loans. 

HARRY’S JOKE OF THE DAY

 

 

                                                           

May 27, 2014

 

HARRY’S BI-WEEKLY UPDATE

                        A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

                             

EVERY DAY IS MEMORIAL DAY…..

While the “official” observance was yesterday, I believe that every day is Memorial Day in the hearts and minds of those of us who understand its true significance.   My father and father-in-law both served with the members of the Greatest Generation and were among the lucky ones to come back and relate their experiences.  So many others, then and now, were not so fortunate and we owe them a tremendous debt of gratitude for the sacrifices they made in order for us to live in peace.  Those who gave their lives for our country are the true heroes amongst us.

 

THE TIME TO BUY IS NOW

Lots of reasons to BUY NOW and I’d like to share some of them with you. Total home ownership is right around 64.7% compared to 69.1% seven years ago.  Some of this can be attributed to foreclosures from the housing meltdown and some to the new mortgage loan regulations.  Whatever the reason, the situation is creating an increase in renters.  If you are wanting to sell and trade up, you might want to consider keeping your present home as a rental.  With historically cheap mortgage money and long term appreciation better than you could get elsewhere, this is an option worth considering if it makes financial sense to you personally.

Eric Belsky, Managing Director of the Joint Center of Housing Studies at Harvard University, revealed five financial reasons people should consider buying a home in his paper on homeownership entitled: “The Dream Lives On: the Future of Homeownership in America.”

1. Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money.  As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor.  Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity.  With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2. You’re paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3. Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4. There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income.  On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5. Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom line?  Not only does homeownership makes sense for many Americans for social and family reasons, it makes sense financially.

 

HOUSING RECOVERY REGAINS SOME STEAM BUT REMAINS WEAKEST LINK IN ECONOMIC RECOVERY

The Wall Street Journal, 5.23.14, USAToday, 5.23.14, The Gazette, 5.24.14, inman.com, 5.21.14

The housing recovery regained momentum for the first time this year during the critical Spring selling season.  Sales of existing homes rose 1.3% in April to a seasonally adjusted annual rate of 4.56 million, according to the National Association of Realtors.  It was, however, 6.8% lower than the year ago level.

This comes after a particularly harsh winter nationwide and “we think the recent slump in home sales may now be in the past”, said Daniel Silver, economist at J.P. Morgan Chase.  The coming months are crucial for the U.S. housing market because families prefer to move to a new home in a new school district by the end of summer, among other reasons. 

On the positive side, the supply of homes in April increased from March while price gains eased—two trends that could help pull more Buyers into the market and boost sales further if they continue.

Lawrence Yun, chief economist of NAR expected the improvement.  “Some growth was inevitable after sub-par housing activity in the first quarter, but improved inventory is expanding choices and sales should generally trend upward from this point.”

“We’ll continue to see a balancing act between housing inventory and price growth, which remains stronger than normal simply because there have not been enough Sellers in many areas.  More inventory and increased new-home construction will help to foster healthy market conditions,” Yun said.

NAR President Steve Brown said that there was some heating of the market last moth.  “The typical time on market shrunk in April, with four out of 10 homes selling in less than a month,” he said. 

“Homes that show well and are properly priced tend to sell the fastest.  More housing inventory gives Buyers better choices, and takes the pressure off the buying process, which is a welcome sign, especially for first-time Buyers.”

Properties sold faster for the fourth straight month in April, reflecting the prolonged lag in inventory relative to demand.  The median time on market for all homes was 48 days in April, down from 55 days in March.  It was 43 days on market in April 2013.

Fannie Mae Chief Economist Doug Duncan thinks that improving financial and labor market conditions should also contribute to a rebound, with economic growth in April, May and June accelerating to an annual rate of 3 percent. 

The outlook for housing “remains more worrisome with existing-home sales, new-home sales, housing starts and multifamily housing all experiencing year-over-year declines despite improving consumer attitudes,” Duncan said.  “However, we anticipate a modest uptick in housing activity as the Spring and Summer selling and buying seasons get under way.”

Fannie Mae economists say that “given the current regulatory landscape, we believe rising employment and income are more likely to bolster housing demand rather than easing credit conditions.”

In March, existing homes were selling at the slowest pace (4.59 million units a year) since July 2012, and were down 6.6 percent from a year ago for the first quarter as a whole.

One bright spot, however, is the growing number of consumers surveyed by Fannie Mae who say it’s a good time to sell a home.  “As consumers become more confident in the selling environment and more supply enters the market, it will help to boost turnover,” Fannie Mae economists said.  “Leading indicators of home sales point to cautious optimism in the near-term outlook.”

Fed Chair Janet Yellen appeared before Congress several weeks ago and said that the recent housing slowdown “could prove more protracted” than expected.  While neither Yellen nor other surveyed economists expect a housing rebound that began in 2011 to reverse course, they say the turnaround will be more gradual, crimping economic gains in 2014. 

 

THE MAIN CULPRITS BEHIND THE HOUSING SLOWDOWN…AND A POSSIBLE SOLUTION FOR FIRST TIME BUYERS

RealtorMag 5.22.14, NAR, 5.22.14

Rising mortgage rates are the main culprit for the weakening in home resales this year and they could further dampen existing home sales, according to a new paper published by John Krainer, an economist at the Federal Reserve Bank of San Francisco.  He also cited other factors such as the fragile economic recovery and the retreating of investors who have slowed their market share as home prices rise. 

Fed Chair Janet Yellen cited “very slow household formation” as young adults saddled with student debt continue to live with their parents.  “My expectation is that as the job market strengthens…we’ll see household formation pick up, but it’s hard to know here what exactly the new normal is,” she said.

New mortgage lending regulations which took effect on January 10, 2014 have also made it difficult for many, especially first time homebuyers, to obtain mortgages. 

The FHA has recently announced a plan to expand access to mortgage credit for underserved borrowers according to Department of Housing and Urban Development Secretary Shaun Donovan. 

Donovan said that the FHA will launch a housing counseling program later this year.  The four-year, two-phase pilot program, called Homeowners Armed With Knowledge (HAWK) will offer a 50 basis point reduction in the upfront mortgage insurance premium and a 10 basis point reduction in the annual premium at the time of loan origination to first time home buyers who complete the program.  Loans that remain in good standing will also receive reductions, which could add up to thousands of dollars in savings for homebuyers over the life of their loan. 

 

5 REASONS TO HIRE A real estate PROFESSIONAL

keepingcurrentmatters, 5.20.14

Whether you are Buying or Selling a home, you need an experienced real estate Professional in your corner.  I’ve been telling you this for a long time, but today’s new rules and regulations makes For Sale By Owner (FSBO) more confusing and difficult than ever.

The reasons have not changed, but they have been strengthened in recent months as the market recovers.

1. What do you do with the paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing.  A true real estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream home, now what?

There are over 230 possible actions that need to take place during every successful real estate transaction.  Don’t you want someone who has been there before, who knows what these actions are, to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home.  However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a real estate Professional. From the Buyer (who wants the best deal possible) to the home inspections companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to during the process.

4. What is the home you’re buying/selling really worth?

Not only is it important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market, but you also need someone who is not emotionally connected to your home, to give you the truth as to your home’s value.

According to the NAR, “the typical FSBO home sold for $184,000 compared to $230.000 among agent-assisted home sales.”

Get the most out of your transactions by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the Internet about home sales, prices, mortgage rates: how do you know what’s going on specifically in your area?  Who do you turn to, to tell you how to competitively price your home correctly at the beginning of the selling process?  How do you know what to offer on your dream home without paying too much or offending the seller with a low-ball offer?

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman”—Dave Ramsey

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one.  You need some one who is going to tell you the truth, not just what they think you want to hear.

Bottom Line?

You wouldn’t try to replace the electrical wiring in your home unless you were an electrician nor install new sinks or toilets unless you were a plumber.  Why would you want to make one of the most important financial decisions of your life with hiring a professional? 

Fortunately, if you’re reading this, you already know that answer.  You have me.  With my investment banking background and 40 plus years as a top producer in the local real estate arena, I’ve got you covered.  Whether you’re Buying, Selling or looking for Investment Income, I’ve got the pulse on the market and help make your dreams a reality.  Just give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the conversation started.

 

HARRY’S JOKE OF THE DAY 

 

 

 

 

                                                            

April 14, 2014

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

             

                                                                               

HAPPY HOLIDAYS TO ALL WHO CELEBRATE

I’d like to take a moment to reflect on the significance of the two religious holidays that are happening this week.  Both remind us of the importance of FREEDOM, one of the basic principles upon which our great country was founded. 

It is my hope that everyone can appreciate the value of freedom and start working together and not against each other. Appreciation of our differences simply requires more understanding of what makes each of us unique. As this holiday season approaches...I wish you all peace and the freedom to be who you are and to have the freedom to practice whatever it is that makes you--you.

 

IS A HOUSING BUBBLE HERE ONCE AGAIN?

DSNews 4.1.14

When year over year price increases continue on a double-digit course despite recent slowdowns, the question of a housing “bubble” comes again to the forefront and it’s a question I’ve recently been asked by clients.

According to Jed Kolko, Trulia chief economist, the answer is both yes and no!  Kolko estimates that national home prices are still around 5 percent undervalued when examining long-term fundamentals like historical prices, incomes and rents.  While ongoing improvements in prices have brought the market close to a tipping point, he notes that it’s still a far cry from the 39 percent overvaluation in the first quarter of 2006.

“Even though recent double-digit price gains look unsustainable, current national price levels are not cause for alarm,” Kolko said in a blog post.  “Sharp price gains, like we’ve had in 2012 and 2013 are not the sign of a bubble unless price levels look high relative to fundamentals.”

He further added that “the slowdown in price gains make it less likely that we’re headed for another bubble.”

 

WHAT A GOOD real estate BROKER BRINGS TO THE TABLE

You want to sell your home and wonder why you need a reputable real estate Agent to help with this transaction?  I’m here to tell you how and why this can make a difference between heartbreak and success. 

When we need advice in a legal, medical, accounting or whatever situation, we go to the best lawyer, doctor, accountant, etc. that we can find.  Their professional help can save us time and money.  Oftentimes, we seek a second opinion and then make informed decisions based on the professional knowledge we received.

Well, your personal real estate situation is no different.  You need to seek the same level of professionalism in your Realtor that you would in any other professional.

Even forgetting the fact that there are so many “i’s” to dot and “t’s” to cross in negotiating your way through the real estate wars today, a reputable Real Estate Agent can make certain that you’ve done all you can to get your home in the best shape prior to listing.

One of the most important things to consider is pricing.  We all want to get the most money possible for our homes and oftentimes what we think our home is worth is not necessarily what the market will realistically sustain. 

Fixing up your home to put its best foot forward is important to do prior to listing.  The better your home shows, the better competitive advantage and the quicker it will sell. 

Let me share with you three recent success stories from the past three weeks.  All three home Sellers and their properties are in different price ranges and had different Buyer profiles but each Seller took the time to listen to my advice and went under contract in record time.

The listing prices of the three homes were $224,900, $400,000 and $659,900 and all three coincidentally were in the northwest area of Colorado Springs.

• Each of the three Sellers considered my thoughts as to who they might be looking for as Buyers of their respective homes. 
• Each Seller hired the appropriate “fix up” contractor for their price range.  Not all “fix up” contractors are best for all price ranges so knowing who to hire is important.
• All three homes had interior and exterior issues and I was able to help each Seller determine how much they needed to spend in order to receive a quick and reasonable sale.
• Each Seller took my suggestion for the listing price.  I provided each with market value analysis and comparables which they looked at and analyzed to come up with a price. 

One home was on the market 10 days, one for 4 days and one was on the market for less than 24 hours!

That, my friends, is why it’s important to list your home with a reputable real estate Agent.  The type of customer service I provide to each and every one of you is based on more than 40 years in the local Real Estate arena, along with my Investment Banking background.  I do the homework for you and try to make the process as stress-free as possible. 

While I’m talking about Selling a home here, as you know, I put the same detail and work into helping Buyers and Investors find what they want, too.  If you are in the market for any real estate transaction, call me today at 598.3200 or email me at Harry@HarrySalzman.com and let me show you how I can put my considerable knowledge to work for you.

 

COST OF LIVING IN COLORADO SPRINGS REMAINS BELOW NATIONAL AVERAGE

The Gazette

The cost of living in Colorado Springs just keeps getting better.  According to a survey from the Council for Community and Economic Research, last year it was 3.9 percent below the national average, which was slightly better than in 2012 when we were 3.7 percent below. 

The index for 2013 didn’t change much because half of the six components were lower and the other three were higher from a year earlier when compared with the national average.  Components measuring grocery items, transportation and miscellaneous goods and services were lower, while those measuring housing, utilities and health care were higher.

While the index does not measure inflation, it compares prices in more than 300 metro areas for 57 goods and services used or purchased by households where middle managers live.  It’s purpose is to help managers compare living costs when considering a move to another city.

 

A MILLION REASONS…OR POSSIBLY JUST A FEW HUNDRED THOUSAND…TO BUY LOCALLY

The Gazette

A report by Trulia, Inc. of the nation’s 100 largest metro areas ranked Colorado Springs seventh in terms of offering the most house for a $1 million price tag. 

You could fit four million-dollar homes from New York inside a million dollar property in Colorado Springs!  In the New York/New Jersey area a million dollars will get you just 1,489 square feet—the smallest in this survey.

While this is great news for Buyers interested in properties of this size and price range, what it means to the rest of us is that no matter what the price—homes in Colorado Springs are a relative bargain based on size in compared to many other metro areas.

 

DODD-FRANK REGULATIONS POSING A “SERIOUS CHALLENGE”

DSnews 4.9.14

Bankers are worried about lending and that fear is affecting who can qualify for mortgage loans based on the latest version of the Dodd-Frank mortgage regulations.

According to the results of the latest annual real estate Lending Survey by the American Bankers Association, loan officers are clearly showing signs of caution.  More than 80 percent of bankers surveyed believe that tightened Dodd-Frank rules will restrict credit, thereby narrowing the pool of candidates able to secure mortgages.

Regulation Z, which was implemented in January, prohibits lenders from making a higher-priced mortgage loan without regard to the consumer’s ability to repay.  This change led lenders to alter who they saw as viable mortgage loan candidates as they figure out how to do business within the confines of tighter controls.

Robert Davis, EVP of the American Bankers Association said, “The new mortgage rules are a serious challenge, especially in the near term, for mortgage lending.  The problem will last at least as long as bankers calibrate their compliance systems, and perhaps much longer.”

There are some Mortgage Winners and Losers because of this new regulation:

Mortgage Winners:

• Homeowners with solid income, lots of home equity, and excellent credit.  If you want to borrow much less than your home is worth and have great credit and plenty of income to pay your monthly bills, you’ll easily meet the new standards.
• First-time homebuyers.  Most FHA and many low downpayment loans will meet the new safe loan standards.  Those with marginal credit or other impairments that raise questions about their ability to repay a mortgage will likely face the same hurdles they faced before the rule.
• Homeowners whose lenders don’t treat them right.  If your servicer loses your payment, doesn’t answer when you write to ask questions, or forces you to buy expensive insurance you don’t need, things are looking up.  The new mortgage rules set standards for posting payments and answering your questions promptly, and stop mortgage lenders from forcing you to buy insurance you don’t need.
• Homeowners who don’t like to shop around.  In the past, lenders paid loan officers a bonus for pushing customers into higher-interest loans.  Now, lenders can’t do that anymore.  Plus, lenders who charge you more than 1.5% above the going interest rate will lose protection from lawsuits.

When you’re shopping, ask if you’re getting a “qualified mortgage”—that’s the official name for a loan that meets the new guidelines.  You’ll know that your loan is amongst the safest for you and within 1.5% of the rate most people with good credit are paying.

Added protections and tighter lending policies are presenting potential hardships for some people.  The new rule could restrict lending by at least 10% and higher in some regions, which can create difficulties in our economic recovery says Jeff Kibbey, primary legal counsel for Century Mortgage Company.

The future of homeownership depends on greater access to credit.  “Over the past 8 years, homeownership in the U.S. has decreased while many in the growing population have turned to renting instead of buying a home,” said NAR’s chief economist, Lawrence Yun.  “We need to ensure that good, creditworthy renters can someday have the appropriate access to credit so they can build equity through homeownership.”

Mortgage Losers:

• Minorities and modest-income Americans.  Credit continues to be so tight that responsible Buyers are having trouble attaining homeownership, Yun said.  Homeownership among African-Americans has fallen to just above 43%, down from just under 50% in 2004 and African-American net worth has been cut in half due to higher unemployment and the foreclosure crisis.
• Owners and buyers of higher-priced homes in high-cost areas.  If you’re Buying or Selling a higher-cost home, finding a mortgage can by costly if the home’s value is more than the FHA or Fannie Mae and Freddie Mac loan limits of $271,050 (FHA) to $414,000 (Fannie/Freddie) in lower-cost areas and $625,500 (for both) in the highest-cost areas.

If your mortgage is for more than the limits, you (or your home’s Buyers) will need a jumbo loan, which usually means a FICO mortgage credit score of 720 or better and putting as much as 20% down or buying private mortgage insurance.

More people than ever could be in this situation:  Buyers in more than 300 counties face FHA loan-limit reductions greater than 10% and in some markets, the biggest FHA loan size will be cut in half, Yun said.

• Middle-Income Americans who fall outside the new guidelines.  First-time homebuyers trying to purchase a $350,000 house aren’t going to have a lot of loan options if they can’t get an FHA or Fannie/Freddie guaranteed loan,predicts Bankrate.com senior financial analyst Greg McBride.

Those with bigger bank accounts, say a homebuyer purchasing a $900,000 home, won’t have the same difficulties.  That richer borrower is an appealing customer for related financial products so a bank is more likely to give him a loan that falls outside the new guidelines to land him as a customer.

• Single homebuyers.  Dual-income households tend to have higher credit scores because they have a second paycheck to fall back on in a financial crisis.  Restrictive mortgage lending standards favor higher credit scores.
• Mortgage borrowers with fluctuating income who have had a bad year, or two, including business owners, commissioned salespeople, or executives who didn’t get that big bonus.  There’s a new emphasis on ability to repay and that starts with proving you have steady income.
• Mortgage borrowers with lots of debt.  If your car payments, student loans, or other installment debt take up more then 43% of your income, and can’t qualify for an FHA or GSE loan, you won’t meet the new lending standards, so you may have a hard time finding a mortgage.

What does all this mean to you?  Well, it’s not getting any easier to obtain a mortgage, however; having me in your corner with my connections to qualified mortgage lenders, it’s easier to find out exactly what it’s going to take to make that homeownership dream a reality.  No matter which category you fall into, give me a call and let’s see how we can help you navigate through the mortgage lending wars and obtain a qualified mortgage.

 

ON A GOOD NOTE…LOWER MORTGAGE RATES HELP SPRING BUYING

DSNews 4.11.14

With the prime Buying season in full swing, a bit of good news for consumers is that mortgage rates fell a bit last week, according to reports from Freddie Mac and Bankrate.com.

In its weekly Primary Mortgage Market Survey, Freddie Mac reported the 30-year fixed-rate mortgage (FRM) averaging a rate of 4.34% for the week ending April 10, a decline from 4.41% the previous week. 

The 15-year FRM last week averaged 3.38%, down nearly a tenth of a percentage point from early April. 

So while home prices are continuing their upward trend which may cause a bit of “sticker shock” to Buyers, this decline in mortgage interest rates helps ease the shock a bit.  As always, though, if you are looking to Sell and Trade Up or Buy for first time or Investment purposes, NOW is a very good time.  Prices are not coming down, inventories are not growing and mortgages are certain to go up, so don’t sit on the fence if you are wanting to get what you are looking for in the real estate market.

 

HARRY’S PHILOSOPHY OF THE DAY

 

 

 

 

 

March 31, 2014

 

HARRY’S BI-WEEKLY UPDATE

                            A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

                                           

SPRING HAS SPRUNG...SORT OF

More like a trampoline than straight up, but Spring is certainly trying its best to arrive.  However, the Spring real estate Buying and Selling season started early this year for my clients.  I’m not certain if it’s due to light inventory, rising home values or fear of increased mortgage interest rates but we’ve seen a sort of frenzy in the last month that appears to be fueled by at least some of these reasons.

Spring is the traditional selling seasons for lots of reasons, prime among them the fact that families like to relocate after the finish of a current school year and prior to the start of a new one.  I’m finding that many of my Buyers and Sellers are among that group and lower inventories are pushing them to start a bit earlier this year. 

Some things I’ve recently read:

“We had ongoing unusual weather disruptions across much of the country last month, along with the continuing frictions of constrained inventory, restrictive mortgage lending standards, and housing affordability less favorable than a year ago,” says Lawrence Yun, NAR’s chief economist.  “Some transactions are simply being delayed, so there should be some improvement in the months ahead.  With an expected pickup in job creation, home sales should trend up modestly over the course of the year.”

Housing starts were mostly flat in February, due in part to inclement weather.  However, according to Doug Duncan, Fannie Mae’s chief economist, the housing market is expected to show a relatively strong performance beginning with this Spring season.

Inventories of homes for sale have increased 10 percent year-over-year which signals Seller optimism according to realtor.com’s latest National Housing Trend Report, which tracks 146 markets. 

Colorado Springs is number 72 in the cities tracked by this report—almost dead center.  Some important things to remember include the fact that our home prices did not fall as sharply or as low as many other cities so we did not have as much equity to recover.  We also did not have the large number of foreclosures that many other cities experienced. 

The good news for us from that report is that the median home price in the Colorado Springs area is up 6.7 percent year over year and 2.2 percent month over month (yes, even with bad weather!)  Our local inventory is down 12.4 percent year over year and 15.9 percent month over month.  The median age of inventory is 89 days, up 17.1 percent year over year, but down 6.3 percent month over month.

Some important things to consider if you’ve wanted to Buy or Sell or simply on the fence:

• Start early and be sure to interview “competent” lenders and get a “pre-approval” letter.  That “lender approval letter” should be included with the offer to purchase a home.  A recent listing of mine had an offer that included such an unprofessional “pre-qualified” letter from the lender that after I explained it to my client, the offer was rejected.
• Be realistic in pricing your home.  This will help it sell faster and avoid back and forth counter offers. 
• Be open to buying in neighborhoods you might not have considered.  With low inventory, sometimes it pays to look in areas you had not previously considered.  You never know what you might find there.
• Mortgage rates are going up.   It’s going to happen, so if you’re thinking about it, now’s the time to save on your house payment.  Also—be prepared to provide more documentation to your mortgage lender than in the past due to the new regulations that went into effect in January.
• Local inventory is lower and the “best” priced homes go quickly depending on price range and location.  You might sell your home quickly and if you are looking to Trade Up, know what you want, need and can afford so that you can find your next home while there are more choices available.

Home Buying and Selling is not quite as simple as it once was, and that’s where it’s extremely important that you choose a competent real estate Agent to help you navigate through the home Buying and Selling “wars”.

If you’re reading this, you’re one of the lucky ones because you’ve got ME.  With my investment banking background and forty plus years in the local real estate arena, I’ve got the credentials and experience to help you make the right decision for your family.  Whether you want to downsize or upsize or simply move to a new neighborhood, I’ve got the knowledge to provide expert advice that will make the process as stress-free as possible.  Call me today at 598.3200 or email me at Harry@HarrySalzman.com and let’s talk.  Spring is here and it’s best to get ahead of the “frenzy” if you can.

 

SOUTHERN COLORADO ECONOMIC FORUM’S QUARTERLY UPDATES & ESTIMATES

Southern Colorado Economic Forum February 2014

The latest update on the El Paso County Economy, including housing trends, was published on March 27, 2014 and you can click here to read the 10-page report in full.  Here are some of the highlights I thought you would find interesting:

• Single-family permit activity, while slower than February 2013, was still strong--up approximately 21.4% (475 units).  The year 2014 is expected to have a more modest gain of about 10 percent.
• The trend in home sales continues its upward trend and through December 2013 there were 1,648 (18.2%) more homes sold than in 2012.  While not setting records, this is a considerable gain over the weak sales trends of the previous five years.  Rising mortgage rates, low job growth and declining real income in El Paso County will be the challenge for 2014 homes sales to grow more than 5-10 percent.
• The home supply grew by 3.3 percent while sales increased 18.3 percent, suggesting that demand exceeded supply.  The net effect was average prices increased by 7.1 percent in 2013.
• Foreclosures were well below the Forum’s projections and additional declines are expected in 2014.

The next several sections of the report include:

• Colorado Springs Airport Trends
• Colorado Springs Sales Taxes
• New Car Registration Trends
• Employment Trends and Wages
• Personal Thoughts about our Employment Base

It is with pleasure that Salzman real estate Services, a supporter since the Southern Colorado Economic Forum was created by the UCCS College of Business in 1996, is able to share these types of statistics and forecasts with you as soon as they become available, each and every quarter.  I would be happy to answer any questions you might have concerning the detailed reports and how they might affect you personally or any question you might have concerning Real Estate in general.

 

BUYING V. RENTING?

Keeping Current Matters 3.23.14 

A report released by Trulia last week explained that homeownership remains cheaper than renting in all of the 100 largest metro areas by an average of 38%.

Other interesting findings:

• Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting.
• Some markets might tip in favor of renting this year as prices continue to rise faster than rents and if—as most economists expect—mortgage rates rise, due both to the strengthening economy and Fed tapering.
• Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying—and rates haven’t been that high since 1989.

What’s this mean to you?  Buying a home NOW makes sense.  If you rent, your housing expense will only continue to rise (good news for Investment Buyers, though).  Locking in a mortgage rate at today’s prices will save you money as rates are not going to get any lower. 

It’s tougher for first time buyers in today’s market, but it’s NOT impossible.  Give me a call and let’s see what we can do to help make homeownership a reality.

 

3 MAJOR THINGS YOU NEED TO KNOW ABOUT THE 2014 NATIONAL housing market

HousingWire 3.23.14

Veteran housing economist, David Berson, gave his opinion on the near-term future of the housing markets:

Number 1:  2014 should prove to be the strongest year for housing activity since before the Great Recession:

• 2014 should be the year when activity reaches the highest level since 2006/2007.
• An improved job market, with employment growth accelerating and unemployment rates declining is propelling this market.
• People buy homes when their job and income prospects improve—even if it’s more expensive to do so—rather than buy when it is inexpensive to do so but they’re worried about keeping jobs.

Number 2:  Demographics should start to favor housing activity:

• The demographic most affecting the housing market is household formations.  These formations are affected by the job market as people “double up” when worried about the job and income-earning prospects.   Since the Great Recession, many young adults are still living with their parents.
• With the increasing job market, there is a pent-up demand for households.  Both parents and those young adults living at home look forward to seeing themselves in their own households.
• There is a current shortage of about three million households and beginning in 2014 the pace of household formations should accelerate to above-trend pace for several years, pushing up housing demand.

Number 3:  Mortgage availability shouldn’t worsen and may improve.

• While mortgage credit isn’t as easy to get as it was during the housing boom, mortgage availability has increased slightly in comparison to recent years.
• The government or government-sponsored share of mortgage lending has climbed to more than 90 percent in recent years and while that in an untenable situation in the long run, it is unlikely to change much this year.
• Qualified Mortgage lending rules from the Consumer Financial Protection Bureau exempt home mortgages that qualify for purchase or securitization from Fannie and Freddie.  As a result, mortgage lenders won’t have to tighten their mortgage-underwriting requirements in response to QM as long as they sell their loans to the GSEs.

Just some things to consider when deciding whether 2014 is the right time for you to Sell and Trade Up or Buy for the first time or for Investment purposes.  There’s a lot of information coming from a lot of different sources, but most of them are saying that this year is still a great time to jump in the real estate market.

 

FANNIE MAE AND FREDDIE MAC ARE WINDING DOWN

RisMedia 3.20.14

As I’m sure many of you are aware, there is a bipartisan proposal that seeks to wind down mortgage giants Fannie Mae and Freddie Mac and completely overhaul the nation’s mortgage system. 

According to Don Frommeyer, President of NAMB (The Association of Mortgage Professionals), “A change in the mortgage system will be a welcomed change across the board as long as this function does not increase the cost to the consumer.  In the past 5 years, the cost to the consumer has increased largely due to the changes that have been made in the mortgage market.  We need to help consumers going forward.”

“With the proposed changes, Fannie and Freddie would be replaced with a federally insured mortgage system.  Investors will pay a fee to ensure insurance for mortgage securities they buy and potential homeowners will have the assurance that their mortgages are backed by strong capitol,” Frommeyer added.

The bill, proposed by Senators Tim Johnson and Mike Crapo, is still a long ways off from being passed or implemented but many feel this is necessary to prevent another housing crisis or mortgage fiasco. 

I’ll keep you abreast of this proposed legislation and the implications it could have on you.

 

COLORADO SPRINGS WATER EFFECIENCY REBATES AVAILABLE

I received an email from Frank Kinder, Sr. Water Conservation Specialist for Colorado Springs Utilities who wanted me to remind our local readers that they can save water indoors by installing  WaterSense approved toilets and can get rebates of $75 for up to 4 fixtures per home.  They will even recycle the old fixtures for you.

CSU also offers irrigation rebates for controllers, heads and nozzles.  So if you’re ready to remodel or just want to save some cash, check with CSU to see how you can “make every drop count.”

 

HARRY’S PHILOSOPHY OF THE DAY

ONE CHOICE

You’re always One Choice away from changing your life

One…

One tree can start a forest,

One smile can start a friendship,

One hand can life a soul,

One word can frame the goal,

One candle can wipe out darkness,

One laugh can conquer gloom,

One hope can raise our spirits.

And...one choice can change your life.

Think about that.  One choice, just one, can change

your life forever.  Simply put, your life today is what

your choices have made it, but with new choices, you

can change directions this very moment.

Something to think about as you begin a new week.

 

 

 

 

 

 

 

March 17, 2014

HARRY’S BI-WEEKLY UPDATE

                                 A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

             

                                              

 

YOU DON’T NEED LUCK WITH ME AS YOUR REALTOR

Buying and Selling real estate can sometimes be a matter of luck.  Finding the right property, setting the right price and navigating your way through all the paperwork required just to get a property listed can be tricky. That doesn’t even take into consideration obtaining the best mortgage lender for your needs and getting to closing. 

On St. Patrick’s Day, let me assure you of one important thing—you don’t need any more luck--you’re already multiple steps ahead of the game because you have me as your advocate when it comes to all your real estate needs. 

With my Investment Banking background and 40+ years in the local real estate arena, I will always provide each and every one of you with the quality customer service for which I’ve become known. No matter whether you are Selling and Trading Up, Buying for the first time or for Investment purposes, I will always take the time to help you decide what’s best for your individual needs, wants and budget. 

So while you MAY need luck when it comes to winning the Powerball or Lottery, when it comes to one of the biggest financial decisions you’ll ever make—you’ve got all the luck you need because you have me.

 

FEBRUARY LOCAL STATISTICS STILL UNAVAILABLE

As I mentioned in my last eNewsletter, the local PPAR statistics for February were delayed due to a new MLS reporting system. Thanks for your inquiries—it’s nice to see this interest from my readers.  The stats are still unpublished and I will get them to you as soon as they are available to me.

 

A FEW OF MY THOUGHTS ABOUT “TIME”

I often get asked about the “right” time to deal with real estate and my standard answer is that there is NO standard answer.  When it comes to “time” it’s strictly an individualized thing.  So, I put together a list of things that you might want to consider and/or ask yourself when thinking about “time” when it comes to real estate.

• Is it “time” to take the new found equity in your current home and use it to trade up or move to a new neighborhood?
• Is it a good “time” to Buy but retain your current home as a Rental?
• Is it “time” to trade up for personal and family reasons to the home of your dreams while the mortgage rates are still relatively low?
• Is it “time” to change homes due to personal lifestyle changes, such as moving to a single story home from a multi-story, or downsizing or upsizing due to decreased or increased family size?

These are questions only you can answer.  Remember—there’s no right time or right answer—and there are always many questions when it comes to real estate investments.  That’s where I come in.  Once you’ve found out if it’s the right “time” for you, I can help make your answers a reality.  Sometimes it’s simply a matter of finding out whether or not it’s financially a good “time” for you.  Those are areas of my expertise and I’m simply a phone call or email away and will always have the “time” for you.

 

AMERICANS MORE CONFIDENT ABOUT BUYING

Keeping Current Matters

According to the Fannie Mae January 2014 National Housing Survey, two categories reported all-time survey highs:

• 52% of respondents thought it would be easy for them to get a home mortgage today
• 70% of respondents said they would buy if they were going to move

Doug Duncan, senior vice president and chief economist at Fannie Mae explained what this could mean to the real estate market moving forward:

“A majority of consumers now believe that it is getting easier to get a mortgage.  For the first time in the National Housing Survey’s three-and-a-half-year history, the share of respondents who said it is easy to get a mortgage surpassed the 50-percent mark.   The gradual upward trend in this indicator during the last few months bodes well for the housing recovery and may be contributing to this month’s (February’s) increase in consumers’ intention to buy rather than rent their next home.  The dip in overall home price expectations, though notable, is consistent with our view of moderating home price gains this year from a robust pace last year, while positive trends in perceptions about the economy and personal finances over the next year support our view of stronger growth in the broader economy.”

Consumer confidence at this point is good news considering the increasing home and mortgage interest rate pricing.  Hopefully this trend will continue in February’s stats as higher interest rates and new mortgage regulations start kicking in. 

The bottom line is still the same.  If you are looking to Sell and Trade Up or Buy for the first time or Investment purposes….don’t wait around for better prices.  While home values will rise slower than in the past few years, they WILL continue to rise and mortgage rates will definitely rise.  So while your present home continues to increase in equity, so will the next home you might want and with higher interest rates….you’re going to pay more.  And with inventory down, it’s best to start your search now so that you are not disappointed with availability in the neighborhood or price range you want. 

If you or any family member, friend or co-worker has been waiting for the “right” time, why not call me at 598.3200 or email me @ Harry@HarrySalzman.com and let’s see if it’s worth waiting or if it’s time to start the ball rolling.

 

HOUSING PREFERENCES DRIVEN BY GENERATIONAL DIFFERENCES

RealtorMag 3.12.14, RisMedia, 3.14.14

A 2014 NAR Home Buyer and Seller Generational Trend study indicates that younger home Buyers tend to view their home as a strong investment while older Buyers tend to view their homes as a match to their lifestyle. 

The survey provided an in-depth look at the generational differences of recent home Buyers and Sellers.

According to the survey, the largest group of recent Buyers is millennials, those under the age of 34, who comprised 31% of recent home purchases.  Gen X Buyers, born between 1965 and 1979, accounted for 30% of recent purchases and younger boomers, born between 1955 and 1964, accounted for 16%.

“Given that millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand,” says Lawrence Yun, NAR’s chief economist.  “Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people.  However, the challenges of tight credit, limited inventory, eroding affordability, and high debt loads have limited the capacity of young people to own.”

The NAR study showed the median age of millennial home Buyers as 29 and the median income as $73,600.  The typical purchase was an 1,800 square foot home costing around $180,000.

Gen X Buyers, in comparison, had a median age of 40 and a median income of $98,200 while their typical purchase was a 2,130 square foot home costing $250,000.

Multi-generational households, those consisting of adult siblings, adult children, parents and/or grandparents, represented 14% of all home purchases.  These households were largely concentrated among middle age Buyers, with 22% of Younger Boomers identified as a multi-generational household.

Reasons for multi-generational households included:

• Adult children moving back home
• Cost Savings
• Health or care-taking of aging parents
• Spending more time with aging parents

Other findings from the study include:

• 87% of Buyers age 33 and younger consider their home purchase a good financial investment compared to 74% of buyers 68 and older
• Millennials were more likely to buy in an urban or central city than older boomers
• Younger Buyers tended to place higher importance on commuting costs than older generations.  Older generations tended to place more emphasis on energy efficiency, landscaping, and community features
• Millennials plan to stay in the home for 10 years while the baby boom generation plan to stay for 20 years
• Younger Buyers tend to move to larger, higher-prices homes, but “there is a clear trend of downsizing to smaller homes among both younger and older baby boomers and the Silent Generation (those born between 1925 and 1945)”
• 79% of Older Boomers purchased an existing home, compared with 87% of Millennials

Prior to purchasing, 62% of Millennials rented an apartment or house and 20% lived with their parents, relatives or friends.  Younger Boomers and earlier generations mostly owned their previous residence, with older Buyers much more likely to have been homeowners.

As you can see, folks of all ages are now attempting to become homeowners.  With the current obstacles of low inventory, higher prices and mortgage interest rates, along with the new lending regulations, it’s going to get tougher for some to achieve their homeownership goals.  That’s why it is more important than ever to use a qualified real estate Agent for assistance. 

As YOUR Agent, I’m your “go-to” guy.  I do the homework to help make the process as stress- free as possible for first time Buyers as well as those wanting to Sell and trade up or Buy for Investment purposes.  Call me today and let me help you determine the best possible scenario for you.

For those looking to Buy for investment, as you can see, the need for rentals is going to grow along with the higher pricing on homes and interest rates.   In many cases, if it’s financially feasible and you are looking to Sell and trade up, you might consider keeping your current residence as a rental.  These are just some of the options we can discuss when you contact me.

 

FLOOD INSURANCE AFFORDABILITY BILL WILL HELP

NAR President Steve Brown issued the following statement on March 13:

“Realtors applaud the U.S. Senate for passing the Homeowner Flood Insurance Affordability Act, H.R. 3370, to curb flood insurance hikes for homes and commercial properties.

We appreciate the Senate’s swift action on the legislation, which is a responsible and balanced solution to the skyrocketing flood insurance premiums affecting residential and commercial properties that were unintentionally triggered by the Biggert-Waters reforms to the National Flood Insurance Program.”

He went on the praise the bill for the relief it will bring to businesses and homeowners nationwide who have experienced financial hardship due to extreme premium increases. 

Hopefully this Bill will help all of you who found yourselves with higher flood insurance premiums due to the floods of recent times, nationally and most especially here in the Colorado Springs area.

 

MORTGAGE RATES BUMPED UP LAST WEEK

For the week ending last Friday, Freddie Mac reports the following national mortgage rate averages:

• 30-year fixed-rate mortgages:  averaged 4.37%, with an average 0.6, rising from last week’s 4.28% average.  A year ago at this time, 30-year rates averaged 3.63%.
• 15-year fixed-rate mortgages:  averaged 3.38%, with an average 0.6 point, increasing from last week’s 3.3.2% average.  Last year at this time, 15-year rates averaged 2.79%.
• 5-year hybrid adjustable-rate mortgages:  averaged 3.09%, with an average 04 point, inching up from last week’s 3.03% average.  A year ago a this time, 5=year ARMs averaged 2.61%.
• 1-year ARMs:  averaged 2.48%, with an average 0.4 point, dropping from last week’s 2.52% average.  A year ago, 1-year ARMs averaged 2.64%.

So, with Spring buying already underway, it appears that increasing mortgage rates will be there to greet you.  It’s not likely to get better, and most economists are predicting at least 5% on 30-year fixed rate mortgages before the end of 2014.  If you’ve been waiting for the right time to Buy…it’s here. 

 

SOME INTERESTING FACTORS IN relocation

Mobility, March 2014

Several hundred relocation and human resource professionals were asked and answered:

“If you were being transferred, what would you consider the most important factor before accepting the new job assignment?

• 38% -- My spouse’s/family’s happiness while on assignment     
• 22% -- Pay raise/new responsibilities
• 22% -- Potential for career advancement
• 13% -- Location
•   5% -- Length of assignment

As a relocation specialist, a good part of my job entails helping make the move as easy as possible for the whole family, not just the person being relocated for job purposes.  This might mean a neighborhood that’s family friendly or a school district known for the specific needs or talents of the students in the family.  I pride myself on knowing that my success in working to make the whole family happy will make the job transfer a happy one for everyone involved.   And as we all know, a happy family situation makes for a happy employee. 

 

HARRY’S JOKE OF THE DAY (can you tell I just got back from Colorado Rockies Spring Training in Scottsdale, AZ?)

 

 

March 4, 2014

 

HARRY’S BI-WEEKLY UPDATE

                                 A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

             

                                             

SPRING IS IN THE AIR

It’s that time of year.  Colorado is still getting snow interspersed with some lovely temperate days and the Rockies are down in Scottsdale, AZ for Spring Training.  Always faithful and eternally hopeful, I look forward to another great baseball season with both the Colorado Springs Sky Sox and the Colorado Rockies.  Here’s to Baseball 2014, no matter whom you’re routing for.  May the best team win and may Derek Jeter have a fabulous final year with the Yankees.  He’ll be an inspiration to upcoming players for years to come. 

 

FEBRUARY STATS NOT YET AVAILABLE

After waiting an extra day to publish this in order to include local monthly statistics, I just found out that due to the new MLS reporting system they will not be available for a while.  As soon as they are available to me I will send them out to you—hopefully by the next eNewsletter.

 

NEW HOME CRUNCH SHOWS SIGNS OF EASING

Wall Street Journal 2.27.14

After a 14 year low in early 2013, bank lending for land development and construction appears to be heading up, a sign that the supply for new homes will ease in the coming months.

This will hopefully put a downward pressure on new home prices which have been rising rapidly over the last two years and weighing in on the housing recovery.  While the outstanding balance on land acquisition, development and construction rose only slightly in the fourth quarter of last year, “economists note that if the overall balance is growing it means that originations of new homes are rising even faster.” 

According to David Crowe, chief economist for the National Association of Home Builders, “While this is an encouraging signal, we still have a long way to go to get back to a normal flow of credit to builders.”

The rising prices are great news for Sellers, but the tight supply of homes has priced many would-be Buyers out of the market, depending on their price range or neighborhood. Once the added financing yields more housing supply, it will also benefit first-time buyers who have been looking for a new home. 

In the Pikes Peak area, there are still affordable homes available for most Buyers, but it’s best to move quickly if you’ve been considering a move in order to get more of what you want at a more affordable price and interest rate.

 

GDP REVISION PUT DAMPER ON EARLY 2014 GROWTH HOPE

Wall Street Journal, 3.1.14

Last Friday the Commerce Department reported that the gross domestic product (GDP), the broadest measure of goods and services produced across the economy, grew at a seasonally adjusted rate of 2.4% in the final quarter of 2013, down from an initial reading of 3.2%. 

It is assumed that the lower rate was in response to consumer and business constraint due to the economy’s momentum slipping, bad weather across the U.S. and overseas volatility.  These factors will more than likely diminish hopes for an early 2014 breakout in growth.

“Other recent economic gauges, alongside the downgraded GDP growth, have flashed warning signs.  Measure of consumer spending, job creation, factory output and the housing market have come in well below expectations.”

It should be noted that existing home prices continue to grow while sales continue to slow down.  Lawrence Yun, NAR chief economist said unusual weather is playing a big role.  “Disruptive and prolonged winter weather patterns across the county are impacting a wide range of economic activity and housing is no exception,” he said.  “Some housing activity will be delayed until spring.  At the same time, we can’t ignore the ongoing headwinds of tight credit, limited inventory, higher prices and higher mortgage interest rates.  These issues will hinder home sales activity until the positive factors of job growth and new supply from higher housing starts begin to make an impact.”

While this is a national measure, some of the same issues have plagued the local housing market—namely bad weather and in our case, Sellers sitting on the fence in hopes of higher prices on their homes. 

Just a reminder—while home prices will continue to rise, thus providing more home equity for homeowners, if you are looking for to Sell and Trade Up or to Buy for the first time or investment purposes—the home you are looking for will also be increasing in price.  And with mortgage rates due to rise slowly, but steadily, this year—now is a better time than later if you are sitting on the fence. 

Something to consider—with more people being put in a position to rent rather than buy at present—you might want to think about keeping your present home as an investment and leasing it out while moving on to your next home.  These are issues I can discuss with you to help you determine if this is the right direction for your personal financial goals.

If you’re wanting to Sell, I’d again like to remind you of the importance in making certain you price your home right, get it good condition, and be realistic in your expectations.  All these factors will make it much easier to make certain that your home is the one that gets to closing.

If you are sitting on the fence or just beginning to think about a move, why not give me a call and let me help you determine what’s in your best interest?  Sometimes it’s good to wait, and sometimes not, but if you’re in the market or about to be, I am here to help you make an informed decision.  Just give me a call at 598-3200 or email me at Harry@HarrySalzman.com and let’s start the conversation rolling.

 

LOCAL FORECAST IS BRIGHT

The Gazette, 2.27.14, Colorado Springs Business Journal, 2.28.14

Great news was delivered at the Vectra Bank Economic Forecast Update I attended last week.

According to the presentation by a University of Colorado economics and finance professor, job growth in Colorado this year will be the strongest since 2000 and will be especially strong in Southern Colorado.

Rich Wobbekind, executive director of the school’s Business Research Division, indicated that Colorado is expected to rank in the top six states in job growth, with a rate of more then 2 percent this year.

And next year he said Colorado will rank in the top three with a job growth of nearly 3 percent.  The strongest growth will come in construction and technology, he said. 

“I expect stronger growth this year in Colorado Springs as the state continues to recover, especially along the Front Range, and I expect that growth will be much more pervasive and moving south,” Wobbekind said.

“Regionally, with ongoing net migration, Colorado is ‘probably the strongest-growing state in the West’ and one of the fastest-growing states in the country, with 83 percent of the population in 12 Front Range counties, including El Paso County.”

Wobbekind also said he expects the GDP to grow by 3 to 3.5 percent this year.

“Stability in the federal budget will be helpful to the Colorado Springs economy, which will reduce uncertainty, because it depends so heavily on defense spending,” he said.  But he added that cuts to the Army are coming that could affect the area.

Local foreclosure sales have “gone down significantly year over year” as I’ve pointed out many times and considering we’ve had fewer filings than many areas, this is one more positive for the Pikes Peak area. 

Wobbekind said the slower job growth in our area has been linked to military and federal government spending which has declined in the past two years.  His forecast indicates the economy growing at a rate of 3 to 3.5 percent this year and will produce an average of 200,000 jobs a month, with unemployment falling below 6 percent by year-end. 

Recent college graduates and those over 55 have had difficulty in finding jobs so consumer confidence remains somewhat weak and considerably below pre-recession levels.  However, according to Wobbekind, “it is not unusual for the recovery to gain strength in the sixth or seventh year after a recession” so the positive outlook for Colorado Springs is right on track.

 

REALTORS OPPOSE TAX PLAN TO LIMIT MORTGAGE INTEREST DEDUCTION

National Association of Realtors, 2.27.14

Last Wednesday the following statement was issued by NAR:

“NAR supports reforms that promote economic growth, but we strongly oppose severely altering the rules that govern ownership and investment in real estate.  Real Estate powers almost one-fifth of the U.S. economy, employes more than 17 million Americans, and contributes a quarter of all federal and state tax revenue and as much as 70 percent of local taxes.

“We are extremely disappointed with several of the provisions contained in U.S. House Ways and Means Chairman Dave Camp’s tax reform draft released today (2.26.14), namely proposed limits on the mortgage interest deduction and capital gains, and the repeal of deductions for state and local property taxes.”

These proposed changes to the taxation of real estate will impact every single American, either directly or indirectly.  If this passes, it will take away an essential reason many Americans choose to own their own home—namely tax deductions that make home ownership possible and affordable for many. 

You might want to take time to write your Representatives and let them know you are opposed to any bill that will impact or limit your mortgage, capital gains and state and local property tax deductions.

NAR intends to carefully analyze the details of the Chairman’s plan in order to educate the public and Congress on long term implications and I will keep you abreast of news as it becomes available to me.

 

HOT HOME PRICES DUE TO COOL DOWN

Wall Street Journal, 2.26.14, RealtorMag, & RISMedia, multiple dates, Kiplinger Letter

Even though home prices rose to their largest annual gain since 2005, signs keep pointing to a leveling off this year.  Rising home prices are good for consumers who were once under water and now can see some home equity.  However, higher prices along with rising interest rates are reducing affordability, which has curbed sales. 

The most significant reason stated was interest rates which are predicted to rise to 5% or more for 30-year fixed-rate loans by year-end.

Another factor will be more homes going up for sale as price hikes have pulled homeowners out from mortgages that are underwater, making them more willing to sell.  This will loosen inventory a bit.

The Kiplinger Letter recently forecasted a modest 4 to 4.5 percent gain in home values for 2014 vs. an 11 percent gain in 2013. 

“More moderate growth this year is not necessarily bad news, it signals a more sustainable, long-term growth trajectory that will help quell fears that another bubble is arising,” says Gillian White, Kiplinger Letter’s associate editor.  “Rising rates will also be helpful in some cases, cooling overly hot markets, where cheap rates and high demand sparked outsized price hikes.”

 

HOW THE QUALIFIED MORTGATE (QM) IS IMPACTING LENDING SO FAR

RealtorMag, 2.18.14

A recent NAR survey of a sample of lenders to determine the effect of the QM lending rules showed the following:

• 55 percent of survey respondents say the QM rule would impact 2.6 percent to 20 percent of the mortgage originations.
• 60 percent of lenders indicate they were most concerned about the impact of the 3 percent cap on points and fees.
• 45 percent of lenders say they would not originate non-QM mortgages, while a majority said they would defer to investors’ preferences on how to treat non-QM loans.
• About a fifth of lenders surveyed say they did not know whether they would charge non-QM borrowers higher rates.  However, the most frequently cited change for prime and near-prime borrowers was a rise of 50 to 75 basis points and 150 basic points for subprime.

According to Ken Fears, manager of Regional Economics and Housing Finance Policy for NAR’s Economists’ Outlook Blog, “Consumers should expect to have to document their income, employment and resources.  If someone has a high debt-to-income ratio, the FHA, as well as Fannie Mae and Freddie Mac, will be more lenient than private financers.”

 

GOOD NEWS FOR “BOOMERANG BUYERS”

RealtorMag, 2.26.14

Former homeowners who lost their homes to a short sale or foreclosure are now re-entering the housing market.  After spending a few years rebuilding credit, they are ready to begin again.

At three years past the peak of the foreclosures, it’s the time when most people would qualify for another loan according to Daren Blomquist, spokesman for Realty Trac.  “The market really needs these boomerang borrowers to maintain the current recovery,” he added. 

Some boomerang borrowers may find they need to put as much as 20% down in order to qualify, while others are finding opportunities to put down as little as 3.5 or 5 percent. 

While wait times for loan qualification may vary for former homeowners, the typical wait times are:

• Seven year wait for homeowners with a previous foreclosure before they can qualify for a new mortgage through mortgage giants Fannie Mae and Freddie Mac.  If the foreclosure was included in a bankruptcy, the borrower has to wait only four years.
• Two year wait for homeowners who underwent a short sale before they are eligible for another Freddie Mac and Fannie Mae loan.
• Three year wait for homeowners seeking an FHA loan after a foreclosure or short sale.  Some homeowners who underwent a foreclosure because of at least a 20 percent cut in their pay may be able to qualify for a new mortgage after just a year through FHAs Back to Work program.

If you, a family member, co-worker or friend was in the unfortunate situation of having to give up their home, now might be the time for getting back in the game.  Please call me and let’s see whether or not the time is right to again qualify while mortgage rates are still considerably low and homes are still affordable for most income brackets.  I will do my part to help Boomerang Borrowers to once again fulfill the “American Dream” of home ownership.

 

HARRY’S THOUGHT OF THE DAY  (hint, hint—send me your referrals, please)

 

 

February 18, 2014

 

HARRY’S BI-WEEKLY UPDATE

                            A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

             

                                          

COLORADO SPRINGS VOTED MOST ROMANTIC CITY

Well, now it’s official.  The Wall Street Journal’s article on Thursday titled “The Best Places to Find Love” told us what we already knew.  Not only can we claim breathtaking mountain views, home to the U.S. Olympic Committee and the U.S. Air Force Academy and the birthplace of the song “America the Beautiful”, but we are now the “Most Romantic City in the U.S.”.

“According to data gathered by researchers at Facebook, Inc., Colorado Springs residents couple up in committed relationships at a higher rate than in other major cities.”  Some of the reasons cited were strong military and religious communities along with being a college town and an outdoor sports hub attracting more men than women. 

The article says that “it’s a place where people keep fit, active and social, and the growing downtown bar scene probably doesn’t hurt”.

So, if you’re looking for romance, or just looking to keep romance alive, this is the place to be.

 

NAR PUBLISHES FOURTH QUARTER HOUSING STATS…PIKES PEAK AREA STILL DOING WELL IN COMPARISON

The Wall Street Journal, 2.12.14 and NAR

In a report of the164 largest metropolitan areas by the National Association of Realtors (NAR), many of the hottest real estate markets started to cool in last year’s fourth quarter and suggests that higher interest rates and “sticker shock” pushed some Buyers to the sidelines at year-end.    

Released last week, the report includes every MLS sale in these cities over the past four quarters, as well as the past four years.

The median price of an existing home was $196,900, a 10.1% increase overall from a year earlier, compared to the third quarter 2013 which had shown a median price gain year over year of 12.5%. 

“The largest gains continue to be in the markets that were hard hit by the real estate bust and have seen a frenzy of investor interest during the past year.  Many of those markets, however, have cooled a bit, which real-estate agents contend is a good thing because the price run-up had started to scare off Buyers.”

Lawrence Yun, NAR chief economist, said there are two ways of looking at the price gains.  “The vast majority of homeowners have seen significant gains in equity over the past two years, which is helping the economy through increased consumer spending,” he said.  “At the same time, home prices have been rising faster than incomes, while mortgage interest rates are above the record lows of a year ago.  This is beginning to hamper housing affordability.”

“Added housing supply will help moderate price growth this year, and should help to stem erosion in affordability, but mortgage interest rates are projected to rise above 5 percent by the end of the year,” Yun said.

NAR President Steve Brown said consumers need to keep in mind that all real estate is local.  “The national figures provide useful background, but it really gets down to supply and demand in a given neighborhood,” he said.  “Metropolitan area figures are an excellent gauge of local housing markets, but there can be widely ranging conditions within a metro area.  This is why it’s best to consult with a Realtor who has additional resources and can provide much greater detail on specific locations.”

Colorado Springs showed a 4.5% growth over the same quarter last year; however, the median sales price in our area was $217,600—10% higher than the median price of the top 164 cities.

This higher local appreciation is due to Colorado Springs having lower foreclosure percentages than many other areas in recent years and the home values here didn’t dip as low as they had in other cities.

We are forecasting the increase in housing values for the Colorado Springs area to be in the 3-5% range in 2014.  

For a look at all 164 markets included in the data base, please click here.  As always, I’ll be happy to answer any questions you may have regarding this survey or any real estate situation.

 

MORTGAGE RATES SLIDE AGAIN

Wall Street Journal, 2.6.14 and Main St by Brian O’Connell, 2.12.14

Mortgage rates fell to their lowest level since mid-November due to unease over economic growth in the U.S. and market turmoil abroad drove investors to load up on government bonds, thus pushing down long-term interest rates.

While this hasn’t triggered any meaningful gain in home-loan refinancing, it is causing potential Buyers and Sellers to wonder if they can afford to wait much longer before taking action. 

With most real estate industry observers saying mortgage rates will rise significantly in 2014, to roughly 5% for a 30-year fixed-rate mortgage, many fence-sitting Buyers (and Sellers who want to sell and trade-up) could pay a steep price for waiting.

As I write this, the current interest rate of a 30-year, fixed-rate mortgage is 4.0%.

 

SPRING SALES RUSH STARTING EARLIER THIS YEAR

Bloomberg 2.7.14  and  Keeping Current Matters, 2.11.14

Despite harsh weather across most of the country, the spring selling rush may already be underway as some homeowners appear to be listing their properties to take advantage of the rebounding home prices and improved equity. 

Sellers appear to be somewhat worried about what the spring will bring in terms of higher interest rates and the possibility of too much available inventory or even a possible housing crunch.  

Last year inventory shortages persisted when supply was at a 12-year low leading into spring and the shortage helped boost home prices and sparked bidding wars in some areas.  With new home construction now at a third of its 2006 peak, inventories will likely still be tight this spring.  However, economists are saying that improved home prices will likely convince more Sellers to sell this year, and that should relieve the inventory crunch.

“Rising inventory is the primary reason that we expect the pace of price gains to drop back,” says Paul Diggle, property economist for Capital Economics Ltd.  “Prices are expected to rise only 4 percent nationally this year, compared to an 11 percent gain in 2013.”

How does this affect you?  Well, if you’ve been considering selling to trade up or buying for investment purposes, now is the time to start the ball rolling.  With home values up, most people are seeing gains in their home equity, thus allowing them to move forward on plans to upgrade, or downgrade, depending on their needs. 

Here are Five Reasons to Buy a Home Now Instead of Waiting:

• Supply Is Shrinking—finding the home of your dreams may be more difficult going forward with no longer a large assortment to choose from.  Homes in the best locations sell first so you don’t want to miss out.
• Price Increases Are on the Horizon—prices are projected to appreciate by over 25% from now to 2018.  First time Buyers will likely pay more in interest rates and price if they wait until spring.  Even if you want to Sell and Trade Up, it will likely cost you more in net dollars as the home you will buy will appreciate at approximately the same rate as the home you now own.
• Owning a Home Helps Create Family Wealth—in a recent Fed study it was revealed that the net worth of the average home owner is 30 times greater than that of a renter.  Whether you own or rent, you are paying someone’s mortgage.  Why not let it be yours?
• Interest Rates are Projected to Rise—the Mortgage Bankers Association, the NAR, Freddie Mac and Fannie Mae are all projecting that the 30-year mortgage interest rate will rise to over 5% by this time next year.
• Buy Low, Sell High—real estate today is “low” in comparison to where it’s projected to go, so if you’re looking to Buy—again, don’t wait too long.

Interest rates are still low but not likely to remain that way and available options are not what they were, but there are still enough choices to satisfy most consumers.  But—if you’re thinking about it—don’t wait too long.  Call me today at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if this is the right time for you.  I can help you make an informed decision based on your personal needs, wants and budget.

 

STEVE WOZNIAK WAS KEYNOTE AT CSBJ’S CELEBRATE TECHNOLOGY EVENT

I attended the  “Celebrate Technology” event sponsored by the Colorado Springs Business Journal on February 7, 2014 and was enlightened by keynote speaker, Steve Wozniak, “The Woz”, who co-founded Apple Computer with Steve Jobs. 

His insight into technology, education, product delivery and company management was refreshing and insightful.  Hearing about the beginnings of Apple Computer “straight from the horse’s mouth” was also a treat.  Below is a picture of me with “the Woz”. 

I want to take a moment here to congratulate all of the companies and individuals honored at the “Technology Celebration” and to commend the CSBJ on putting on such a terrific event.  I look forward to more speakers of the caliber of Steve Wozniak.

                                      

                                      Me with Steve Wozniak at “Celebrate Technology”

 

HARRY’S INTERESTING TIDBIT OF THE DAY

Since the first Winter Olympic games in 1924 through the Vancouver games of 2010, Norway, with a population of five million, has won more gold and total medals (303) than any other nation.  The U.S. is second in gold and total medals (254) but has a population of 314 million, 63 times that of Norway.  This year these nations will again fight it out for spot number one.