Real Estate Information Archive

                                              

October 13, 2015

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 REGIONAL BUSINESS ALLIANCE PRESENTED ME WITH A COMMUNITY SUPPORT “AWARD FOR EXCELLENCE”

Most of you know that a word I often use is “WOW” and Saturday night was a VERY big “WOW” for me.

At the Annual Colorado Springs Business Alliance’s Business and Industry Awards Dinner at The Broadmoor, I was totally surprised and overwhelmed when CEO Dirk Draper called me onto the stage and presented me with this award.

Having lived in Colorado Springs since 1972, I have always made it a priority to volunteer my time in serving the City of Colorado Springs, civically and in the corporate and non-profit sector.  This is something I believe important for any successful citizen.  Colorado Springs is my home, the place where I earn a living and the place where I take great pleasure in helping folks to relocate.  As I tell everyone I meet all over the country—this is the place where “America the Beautiful” was written and there’s a reason for that. 

I do what I do because it is my sincere belief that the only way to show my appreciation is to give back.  I am only one of many in this community who do the same—and we all do it with the hope that we are building a better future for the town that has given us so much.

We do what we do for the sake of doing it, but I found out Saturday evening just how gratifying it is to also get public recognition for it. 

I want to take a moment to thank the RBA, but even more I’d like to thank all of you, because without your confidence in me as your REALTOR^® I would never have been in a position to accept this award.

Please excuse this bit of self-serving promotion, but of all the awards I’ve received over the years, this one is special due to its special significance to my life.

 Again…I thank you all.

 

AND SPEAKING OF “WOW”…

When is the last time YOU said “WOW” and really meant it?  Those of you who have been house hunting with me use it often and with good reason.  I do the homework to make certain that I can find the home that fits not only your needs and wants, but your budgetary concerns as well.

If you or anyone you know is in the Residential real estate market, why not find your own “WOW” by giving me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s discuss how we can make that happen.

 

RESIDENTIAL real estate SALES INCREASE FOR 15^TH STRAIGHT MONTH

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

I am thrilled to report that things are continuing to look excellent for the Pikes Peak Region in the Residential real estate Market.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes are up 18.8% over the same period last year.  And Condo/Townhome sales are up 32.4% over the same period last year.  This is especially significant because we are approaching the time of year that home sales tend to slow down due to the holiday season.

While total active listings still remain down from the same period last year, new listings in October were up slightly in the Single Family/Patio Homes category and up 24.1% in the Condo/Townhome category in year over year comparison.

These numbers continue to reflect strong consumer confidence and local job growth.  Many people are taking advantage of increased home equity in order to sell and trade up while getting still historically low interest rates.

Increased new listings mean more choices for those looking to buy, but with homes selling quickly it’s important to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary at times in order to get the home you want. 

Here are some highlights from the October 2015 PPAR report.    You will see below that I have changed the comparison on the Monthly Sales Analysis to better help you see the year-over-year increase in Median Sales Prices.  This really illustrates how the Pikes Peak Region has done during the Housing Recovery.  Please click here to view the detailed 13-pages, including charts for October 2015. If you have any questions, as always, I’m just a phone call away at 598.3200.

In comparing October 2015 to October 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1197, Up 0.8%
• Number of Sales are 1,107, Up 13.9%
• Average Sales Price is $263,584, Up 2.7%
• Median Sales Price is $234,900, Up 4.4%
• Total Active Listings are 2,936, Down 16.1%

                        Condo/Townhomes:

• New Listings are 180 Up 24.1%
• Number of Sales are 166, Up 23.9%
• Average Sales Price is $169,350, Up 4.8%
• Median Sales Price is $155,000, Up 5.4%
• Total Active Listings are 253, Down 34.5%

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

Comparing Year-Over-Year Median Sales Prices

                                                Median Sales Price             Median Sales Price

                                                October 2015                                    October 2014

Black Forest                             $423,500                              $393,500

Briargate                                   $292,750                              $272,750         

Central                                      $204,150                              $176,500

East                                           $187,500                              $175,250

Fountain Valley:                       $199,900                              $190,950

Manitou Springs:                     $295,000                              $275,250

Marksheffel:                              $264,500                             $258,000

Northeast:                                 $233,000                             $220,000

Northgate:                                $398,450                              $350,000         

Northwest:                                $334,950                              $307,250

Old Colorado City:                   $242,000                             $174,450

Powers:                                     $230,000                             $222,000

Southwest:                                $276,000                             $240,500

Tri-Lakes:                                  $430,609                             $349,625

West:                                         $272,500                             $242,500

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

 

ON VETERAN’S DAY…IT’S TIME FOR THANKS

I’ve always been so “Proud to be an American” as the song goes and with that I am aware of the many sacrifices that have been made in the past and continue to be made each and every day to ensure that we all can live in peace in the greatest country in the world. 

With Veteran’s Day this week I especially want to give a shout out to all who have served and those currently serving in our Armed Forces. 

Living in a city that has so much military presence and having worked with so many of these families in relocation, I am acutely aware of the hardships and personal sacrifices these folks make.  We all owe them a tremendous debt of gratitude, on Veterans Day and every day.

THANK YOU VETERANS -- ONE AND ALL.

 

FEDERAL RESERVE KEEPS SENDING MIXED MESSAGES

                           

I happened to see this illustration in The New York Times Sunday magazine a couple of weeks ago and thought it actually more “right on” than humorous and wanted to share it with you.

It’s been more than a year since I’ve been telling you that the historically low interest rates are going to rise and I’m still confident that is going to happen…I just no longer can begin to predict “when”.

Janet Yellen, Federal Reserve Chair, said this week that an interest rate hike in December would be a “live possibility” if the economy stays on track.  She has said that the U.S. economy is “performing well” at the moment, with solid growth in domestic spending.  However, she stressed that no decision has been made yet and a move in December will depend on how the economy performs up until that time. 

What is the bottom line here?  The thing I know about interest rates is that I don’t know when they will rise.  But what I DO know is that when the do, it will be the beginning of the end of historically low mortgage loans.  Will they go right back to 10 or 12 percent?  Absolutely not in the foreseeable future.  But even moving up a percentage point or two will make a difference in monthly payments and also affect some people’s ability to qualify for a mortgage. 

This is another “heads up” to those who have been sitting on the fence.  If you’ve even considered a move or buying for the first time, now is the time to consider all your options.  Just give me a call and let’s see if it’s a possibility at present.   

 

U.S. HOME SALES HEADED TO BEST YEAR SINCE 2007 BUT FIRST-TIME HOME BUYS ARE NEAR 1987 LEVEL

The Wall Street Journal, 10.23.15

September was a big month for home sales in the U.S. with existing-home sales climbing 4.7% to a seasonally adjusted 5.5 million--8.8% above a year ago at this time.  This puts the market on pace for its best year since before the recession.

Lawrence Yun, chief economist for the NAR, has said that better job growth, continued low mortgage rates and pent up demand are fueling this activity.  Home prices are rising much faster than income, though, and this is creating a problem for young buyers trying to save for a down payment. 

Prices have been driven up by an increase of college-educated professionals and a lack of new construction nationally.  The combination of rising prices and affordability constraints is beginning to weight on the market. 

Listings remain a problem and Yun said,  “Come spring of next year, based on the current trend, we find we could be facing really tight inventory once the spring buying season returns, unless home builders really ramp up production.”

In conjunction with this, first time home buys fell to 32% of all purchasers in 2015 from 33% last year, the third straight annual decline and the lowest percentage since 1987.  According to economists, the historically low share of younger buyers could pose long-term challenges.  Without these buyers, current owners have difficulty trading up or selling their homes when they retire. 

Most first time buyers have said their biggest challenge beside saving for a down payment was the money owed on student loans.  And with rental rates increasing steadily, it’s really tough for them to put money aside.  The new down payment and loan qualification regulations are helping some of these first timers but others will just have to wait. 

So…more mixed news…home sales are up, but along with them are higher prices and decreased affordability.  Again…the time to Buy is NOW.

 

HARRY’S JOKES OF THE DAY ( courtesy of the Internet and not such a joke when you think about it!)

 

 

October 26, 2015

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.                             

SOMETHING TO SHARE FROM MY BOSTON relocation CONFERENCE

When the last issue was being published I had just returned from the relocation Directors Council (RDC) and Worldwide ERC Symposium in Boston.  I would like to share an issue that we relocation professionals talk about each and every year.  It’s importance to you as a buyer or seller cannot be overemphasized. 

As many of you know, I am a relocation specialist and “relocation” can mean anything from relocating around the world to simply around the block.  There are always many things to consider when making a move, and more especially when it involves moving to a new city or country.  At this conference I have the pleasure of meeting with various people who are involved in residential relocation on a daily basis—the human resources people of national and international companies, relocation real estate professionals, lenders, moving companies, temporary housing specialists and many others who are crucial in helping folks make a move.  This helps me know who, like me, is at the top of their field so that I can recommend them to my clients. 

It was noted at one of my meetings that the most recent Transfer Volume and Cost Survey of Worldwide ERC reported that companies relocating employees saw a four percent increase in transfer volume among current employees and a seven percent increase among new hires in 2014 over 2013.  The survey also indicated that about 80 percent of current employee relocations in the U.S. are interstate moves vs. intrastate moves and that since 2012 there has been an employee reluctance to relocate. 

Some of the reasons for that are the short time frame given to accept the offer and short time to relocate.  That’s where relocation experts provide the greatest help.  We can provide information that can help an employee make a relocation decision in a short time period based on answers to questions concerning the new city, neighborhood demographics, housing possibilities and more.

If someone is moving to Colorado Springs from elsewhere and needs to sell their current home, I have a built-in network of relocation real estate brokers who I can recommend, resting assured they will do a good job for my clients on that end. This also works in reverse, as oftentimes I have local folks who are being transferred and don’t know where to start in looking for a new home in a new city.  I can provide assistance simply by giving referrals to relocation specialists in other cities who I know will get the job done right. 

relocation is About So Much More than real estate

It’s important for anyone planning a move to work with a Realtor such as I who can understand the “little things” that are not so little in the eyes of the ones making the move. It’s important for those of us involved in relocation to understand not only the culture of the company if the move is for business, but also to understand the family dynamics involved.  Moving to a new neighborhood can be traumatic for ALL family members, and especially children who may be transferring to a new school and want kids the same age living in the neighborhood.   

Lifestyle preferences, such as proximity to shopping, restaurants, and sports venues are other considerations that can be important to those making a move.

Understanding the demographics of all local neighborhoods is crucial to making certain that the needs and desires of the entire family are met.  This may sound like a given, but oftentimes the adult family members hear from their well meaning co-workers-to-be and friends that “such and such” a neighborhood is fabulous—and it may well be.  But if it is comprised of mostly “empty nesters” or “young singles”, it probably is not the best place for the young members of the family to find friends and schoolmates their age. 

Why do I mention this?  For the same reason that we keep discussing this at our meetings. It’s a reminder that no matter where you might be moving, the importance of working with a knowledgeable real estate Professional who understands the ins and outs of relocating people shouldn’t be overlooked —be it for a single person making a move to another city or a family moving locally to a new neighborhood.  Each and every move is based on individual preferences, wants and needs and someone like myself can make certain that it’s as stress-free as possible for all those involved. 

After discussions with my clients concerning their particular lifestyle and professional needs I can then begin to piece together what will be a master plan for that situation and begin the search for the best neighborhood and home for that criteria.  After all, with more than 43 years in the real estate arena, I’ve proven time and again that my particular brand of customer service is essential in easing the road to closing.

If you, or any co-worker or family member are thinking of making a move—locally or out of the area—please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let me do what I do best—work to help relocate you or them to the “best fit” for all concerned.

 

LOCAL MONTHLY INDICATORS FOR SEPTEMBER PROVIDE GOOD NEWS ONCE AGAIN

Piles Peak REALTORS Services Corp.  Current as of October 12, 2015

It’s always nice to publish good news and lately the Residential real estate news for El Paso and Teller Counties has been excellent.  As promised, I will publish these Monthly Indicators when they are available to me. 

The September 2015 “Activity Snapshot” indicates the one-year change:

• Sold listings for All Properties were up 16.9%
• Median Sales Price for All Properties was up 5.5%
• Active Listings in All Properties was down 30.0%

You will see all the activity presented in easy to read charts by clicking here.  This is such good news both for present homeowners and those either looking to sell and trade up or buy for the first time. 

Interest rates are remaining at historic lows for the present time and the increase in home prices is allowing those who were “underwater” with their mortgages to finally have the equity to pursue avenues that were unavailable to them before. 

And, with the rental market exploding, those who have considered purchasing real estate for investment purposes are finding that now is a great time to proceed. 

If you have any questions about this report or need help with any real estate concerns, please give me a call.

 

FANNIE MAE TO EASE THE LOAN PROCESS FOR POTENTIAL BORROWERS

Remember when you had to provide a pay stub to your mortgage lender along with your application?  Well, those days will soon be gone once the changes announced by Fannie Mae catch on.

Lenders will be allowed to use employment and income information from a database maintained by credit bureau Equifax to verify borrowers’ ability to handle a loan, rather than relying on the traditional documentation process of collection physical copies of paystubs and tax data.  This should make the mortgage process easier for both borrowers and lenders.

Fannie has also made other changes that could broaden mortgage access for some borrowers.  The mortgage giant will ease the lender process for granting loans to borrowers who don’t have a credit score which is a key issue for certain minority groups that are less likely to have traditional credit histories.  Fannie will also start requiring lenders to begin collecting “trended” credit data from Equifax and TransUnion, which includes longer-term borrower credit histories, starting in mid-2016.

Fannie Mae and Freddie Mac don’t make loans—they buy them from lenders and wrap them into securities and provide guarantees to make lenders whole if the loans default.  Because of this, since the financial crisis mortgage lenders have relied on government-backed loans, making Fannie and Freddie’s requirements especially important in deciding what borrowers are able to get a mortgage.  This has caused some borrowers to have a harder time obtaining a loan.

New programs rolled out in August let lenders count income from non-borrowers within a household, such as extended family members, toward qualifying for a loan.  Also, for more than a year, industry groups have pushed for Fannie and Freddie to allow the lenders to use alternative credit-score models that take into account utility or rent payments. Fannie Mae officials recently announced that in 2016 they would begin to allow lenders to evaluate borrowers without a score provided by an automated process.  Borrowers that have a traditional scored calculated by Fair Isaac will still need to meet the 620 minimum on a scale of 300 to 850.

Fannie isn’t yet saying what the trended credit data will be used for now; however, it will let Fannie see if borrowers, for example, are paying off their credit card bill every month instead making a minimum payment.  In the future, a borrower making the full payment could be treated as a safer bet and could provide better rates for those folks.

Look for more information coming in the next few months, but everything I’ve read seems to indicate that Fannie Mae is looking at various options to help those with no or poor credit, or without personal down payment ability to still be able to qualify for a home mortgage.  This is great news for first time buyers or those who lost homes due to the housing or other crisis.  I’ll keep you posted. 

 

5 TOP MOTIVATORS FOR BUYING NOW

REALTOR Mag, 10.1.15

A survey taken in June and July through the BDX Home Shopper Insights Panel  identified the top reasons that trigger buyers to start thinking about a new home:

1. I’m tired of my house.  This was the number one reason.  Homeowners have been in their homes longer than in the past, some due to “underwater” mortgages. With a four-year price appreciation and confidence in the market, they are ready to move.
2. Interest rate are attractive.  With interest rates continuing at historic lows, many who were stuck with higher rate mortgages due to “underwater” situations can now move and quite possibly spend less on a monthly payment, or can certainly buy more for the same money.
3. Home prices are favorable.  While the price motivation is decreasing in the last few years, it still remains one of the top triggers.  Home prices today, while rising, are still about 20 percent lower than the peak at the height of the housing bubble.
4. “I’ve got more money to spend.”  Twenty-four percent of active homebuyers say an increase in income is their primary trigger for buying a home now.   Several years post-recession, more households are financially better off.  Of the 25-to-34-year-olds surveyed, having more money was cited as their No.1 motivator in buying. 
5. A change in family circumstance.  With births rising last year and expecting to rise again this year, families are expanding and 18 percent of those surveyed said that a change in family circumstance or composition was their main reason for buying.

So there you have it.  No matter what YOUR motivation might be for buying a new home, I’m here to help you in any way I can.  With so many new regulations and qualifications, there are plenty of ways to help all who are looking to find a home.  Give me a call and let’s see if we can make all this good news work for you and your family. 

 

HARRY’S JOKES OF THE DAY

Job Well Done

Seller to Agent:  You’ve done such a great job describing my house in your real estate listing that I’ve decided to keep it!

 

Ten Commandments

A real-estate agent, had difficulty getting a listing from a customer whose theory was that "there is no substitute for experience."

After she asked him a third time how many years he had been in the business, he told her: "Madam, there is a little-known historical fact that Moses brought three tablets down from the mountain--two were the Ten Commandments and the other was my real-estate license!" He got the listing!

 

And, one that’s probably more true than funny….

 

                       

October 13, 2015

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.

                                     

 INTERNATIONAL relocation CONFERENCE WAS QUITE EDUCATIONAL

As many of you know, I spent last week in Boston attending the semi-annual Worldwide ERC Global Workforce Symposium.  Once again, I was the only Residential Realtor from Colorado Springs in attendance.  I attend these conferences in order to keep current on all the nuances involved in helping to make relocation as stress-free as possible for my clients. 

Meeting with HR Directors of International and U.S. companies and with representatives of actual movers, banks, and other entities who are involved with relocating folks from all over the world as well as simply around the block, helps me provide my clients with the best services available.

I also participate in sessions of the relocation Directors Council (RDC), an organization of which I am a Past President and Life Member. The organization is composed of 250 relocation Directors and Executives, many of who are Certified Relocation Professionals as well as Global Mobility Specialists.  We represent 5,000 real estate Offices and 215,000 Sales Associates.   This is a network of individuals I’ve known and worked with for many years.  I know when I have a client relocating to or from another city I can refer one of my clients to them and they will provide the same kind of excellent customer service that you’ve come to expect from me. 

Of course, Boston wasn’t all work and no play.  We had a great look at history in our visits, among others, to the John F. Kennedy Library and the Boston Public Library with it’s current exhibit of “We Are One, Mapping America’s Road from Revolution to Independence”.

And of course, no trip to Boston would be complete without a walk along “The Freedom Trail”, where the above photo was taken at the Old State House.  I couldn’t help but email a copy of it to my friend Vencat Reddy, Dean of the UCCS School of Business, as I knew he’d agree and it most certainly mirrors my personal philosophy. 

That’s one of the primary reasons I take the time to publish my eNewsletter—I know that the more my clients understand about what’s happening in the real estate arena, the better prepared they can be when it’s time to buy, sell, trade up or invest. 

Having just returned, I will go through the myriad materials I accumulated there and hope to share some of this knowledge with you in the next issue.

 

SEPTEMBER 2015 IS THE 14^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

This is beginning to sound like a broken record—but there we go again!  I am happy to report that things are continuing to look excellent for the Pikes Peak Region in the Residential real estate Market.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 19.3% over the same period last year.  And Condo/Townhome sales are up 33.5% over the same period last year.

You will also see that while total active listings still remain down from the same period last year, new listings in September were up 7.2% in the Single Family/Patio Homes category from the same period last year.

These numbers continue to reflect strong consumer confidence and local job growth, along with low interest rates that many feel won’t be around much longer.  More and more folks are taking advantage of increased home equity in order to sell and trade up while getting still historically low interest rates.

Increased new listings mean more choices for those looking to buy. It is still somewhat of a Sellers market, so it’s important to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary at times in order to get the home you want. 

If you’ve been thinking about using the current equity available in your present home for a down payment on a new home, don’t wait any longer if you want to take advantage of the still low interest rates.  “Wait and see” is no longer an option in most cases.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the September 2015  PPAR report.  Please click here to view the detailed 13-pages, including charts for September 2015. If you have any questions, as always, just give me a holler.

In comparing September 2015 to September 2014 in PPAR:                       

                        Single Family/Patio Homes:

• New Listings are 1,339, Up 7.2%
• Number of Sales are 1,191, Up 16.1%
• Average Sales Price is $267,612, Up 5.7%
• Median Sales Price is $240,000, Up 6.7%
• Total Active Listings are 3,215, Down 16.1%

                        Condo/Townhomes:

• New Listings are 165, Down 4.1%
• Number of Sales are 183, Up 19.6%
• Average Sales Price is $178,978, Up 10.2%
• Median Sales Price is $160,000, Up 6.7%
• Total Active Listings are 277, Down 31.6%

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $411,250                              $409,695

Briargate                                  $293,500                              $319,079         

Central                                     $193,300                              $211,233

East                                          $191,000                              $209,223

Fountain Valley:                      $205,900                              $210,987

Manitou Springs:                    $365,000                              $378,957

Marksheffel:                            $248,000                             $253,153

Northeast:                               $235,000                             $252,751

Northgate:                              $370,500                              $413,682    

Northwest:                              $355,000                              $354,643

Old Colorado City:                 $227,500                             $245,026

Powers:                                   $225,000                             $236,423

Southwest:                             $270,000                             $305,693

Tri-Lakes:                               $392,500                             $428,458

West:                                       $243,000                             $320,011

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

 

NEW MORTGAGE LOAN DOCUMENTS DESIGNED TO HELP BORROWERS

RealtorMag, 10.2.15, Wall Street Journal, 10.2.15

Mortgage borrowers are now finding it easier to compare different loan products and understand the total cost of their loan under new rules that took effect on October 3, 2015.  These changes are part of the Consumer Financial Protection Bureau’s (CFPB) “know before you owe” initiative.  They aim to provide consumers with more time to review total costs of their mortgage prior to closing. 

Here’s the breakdown of the changes:

Four previous documents are now reduced to two. 

1. The “Loan Estimate”, provided by the lender at the time of mortgage approval, will replace two of the documents, The Good Faith Estimate and the initial Truth-in-Lending Statement.
2. The  “Closing Disclosure”, provided by the lender just before closing, will replace the HUD-1 Settlement Statement and the final Truth-in-Lending Statement.

There is no way to even compare the Good Faith Estimate with the new Loan Estimate according to many lenders.  The document has changed dramatically, but the changes are now very consumer-friendly.

Consumers can now easily check to see whether the loan amount, interest rate, monthly payment, escrow sum and the amount that a borrower needs to bring to the closing (a new feature) have changed from the lender’s initial estimate.  The Loan Estimate also itemizes all closing costs and indicates which services a borrower can shop for, such as the title-search company and pest inspector.

Also included is information to help the borrower better understand the long-term costs of the loan, and shows what a borrower will have paid in principal, interest, mortgage insurance and other loan costs at the five-year mark. 

In order to help with comparison-shopping, the Loan Estimate will detail the annual percentage rate (APR) so a borrower can put documents side by side and easily compare overall costs between different loan products such as a 15-year and 30-year mortgage.  The APR factors in mortgage-broker fees and closing costs along with the interest rate. 

Now also shown is the total loan interest percentage—the total amount of interest that a borrower will pay over the term as a percentage of the loan amount.

The Closing Disclosure also is more consumer-friendly than the documents it replaces and now shows what portion of the payment goes toward homeowner’s insurance, mortgage insurance, interest and taxes.

With the forms much less confusing and more concise, mortgage borrowers are going to get a much better picture of what they will owe at closing and throughout the lifetime of the loan. 

There is one rule change that is of concern to some lenders but should not affect most borrowers.  That rule mandates three business days for hard copies of the Closing Disclosure to be received by mail and reviewed for any issues or errors by the borrower.  If no issues arise, closing can take place three days later.  This applies even if the document is hand delivered or electronically sent.

If there are late changes in the loan terms, such as switching from a fixed-rate loan to an adjustable-rate, a new Closing Disclosure form may be required which could delay closing.  This could hurt in a highly competitive market where multiple offers and bidding wars with cash offers are possible. 

However, the CFPB emphasized that the disclosure form and waiting period were designed to help borrowers pick the best loan option for their individual situation and that this could even take away some stress because borrowers will know a week in advance if they are going to close.

 

LOCAL CONSTRUCTION PACE CLIMBS

The Gazette, 10.2.15

For the eighth straight month in year-over-year comparison, homebuilders in El Paso County increased the number of permits issued to builders and individuals.  The 233 total for September was almost a 30% increase over last September, and brought the year to date total to 2,135—a 14% jump over the same period last year. 

Factors for this are similar to those in local existing-home sales—low interest rates, increased consumer confidence and increased equity which allows homeowners to sell and trade up to a new home.

Area statistics are mirroring those across the county, where construction spending in August increased 0.7% to the highest level since May 2008. 

 

RATE INCREASES ARE STILL A POSSIBILITY THIS YEAR

While inflation is remaining flat and the Federal Reserve did not increase interest rates at their September meeting, there are signs that an increase is still possible before the year’s end.

Stock market volatility in the U.S. as well as in foreign markets is thought to be a side effect of those waiting to see what the Fed does in terms of rate increases and there are those that want the Fed to either raise the rates or stop talking about it.

I certainly don’t want to predict what will happen, but at some point we know the rates WILL go up, and with them, the end of historically low mortgage lending rates.  Rising rates can make a significant difference in monthly mortgage payments so if you’ve been even considering whether it’s the time to make a move—it’s worth checking it out soon. 

A word to the wise can never hurt!

 

HARRY’S PHILOSOPHY OF THE DAY

Two real estate agents decided to start a new career to sell shoes. The agents go to Africa to open up new markets.

Three days after arriving, one real estate agent said, "I’m returning on the next flight. Can’t sell shoes here. Everybody goes barefoot."

At the same time the other real estate agent sent an email to the factory saying, "The prospects are unlimited. Nobody wears shoes here!"

Guess which agent I am?  Happy Wednesday.

 

FEATURED LISTING

                                                            

September 28, 2015

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.

                                       

LOCAL HOUSING STATISTICAL REPORTS SHOW CONTINUED POSITIVE TREND

Pikes Peak REALTORS Services Corp.,

PPAR recently released the August 2015 “Monthly Indicators” and “Local Market Update” for El Paso and Teller Counties with data current as of September 11, 2015.  These reports go into more detail than the August “PPAR Monthly Statistics “I published several weeks ago and I know you will be as happy as I was to see this continued upward trend in local Residential real estate. 

The “Activity Snapshot” shows the one-year change:

• Sold Listings for All Properties were up 23.9%
• Median Sales Price for All Properties was up 2.7%
• Active Listings on All Properties were down 31.4%.

This is great news for us all.  Those who have wanted to sell and trade up but found themselves “upside down” equity-wise in recent years are now seeing increased equity that could enable them to make a move while interest rates are still historically low. 

With the easing of loan, credit and down payment qualifications, the time is possibly right for first-time buyers to enter the housing market.  This is especially important with rental prices going sky high nationwide as well as locally.

You can click here for the entire 16-page “Monthly Indicators” report.  I’d like to share a couple of pages from that report that I feel will make you smile.

The average sales price on Single Family/Patio Homes is up 7.5% year-to-date, and while the Townhome/Condo market is still fluctuating, it is remaining relatively stable.  Inventory in both categories is down, which is contributing to the price increases but also making it a bit harder for those looking to buy.  I still contend that there is a home out there for anyone looking; however, sometimes you might need to re-think your wants and needs or look at a neighborhood that you might have missed in your search.

The “Total Market Overview” is very positive and I thought you might like to peruse it even before you read the report in its entirety.

      

 

      

 

      

 

Below I’ve highlighted just one area so that you can see the type of information available for the specific neighborhoods included in the 33-page “Local Market Update”.  To see data on all areas, please click here.

            

As you can see, there is valuable information here that can help you in making your personal housing decisions.  There are a lot of variables to consider in each particular neighborhood and that’s why I encourage you again and again to use a competent, knowledgeable real estate Broker when it comes to your individual housing needs.  We know the market, we know the neighborhoods, and most importantly, we get to know YOU.  Each transaction is different, based on the wants, needs and budget of a particular family and understanding those factors are an intricate part of whether or not a home can get to closing.

If you have any questions concerning these reports, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com.  I’m ready to help make all your Residential real estate dreams come true and the time to start acting on them is NOW.

 

NOTE TO INVESTORS AND WANNA BE’S--RENTAL MARKET TO REMAIN STRONG FOR YEARS TO COME

Relator Mag, 9.21.15, The Gazette, 9.15

If you’re currently an investor or simply looking into investment property—now is a great time to expand your Residential real estate portfolio.

According to Frank Nothaft, chief economist for CoreLogic and former chief economist at Freddie Mac, the single-family rental market will continue to stay strong for years to come. 

“Since the great recession began, household formation has been anemic,” Nothaft noted in a column for HousingWire.  “But this year household formation will be at its highest point in 10 years—close to 1.7 million new households—many of which will be renters.”

Of the more than 5.8 million homeowners who lost their homes due to foreclosure during the housing crisis of the last seven years many have become renters, which has boosted growth of the single-family detached rental stock. 

Approximately 35 percent of all rental stock are single-family rentals and these are the ones that tend to have the lowest vacancy rate—less than 3 percent compared to 8 percent or more among larger apartment buildings, Nothaft notes.

Demand is pushing up rental rates, and “no matter how you crunch the numbers, the outlook for rentals looks strong for the foreseeable future,” indicated Nothaft.

On the local scene it was mentioned this week that at least five Colorado Springs-area aging apartment buildings have been sold in recent weeks, indicating that buyers are interested in multi-family properties regardless of their age.

The area’s vacancy rate fell to 4.6 percent in the second quarter of 2015, down almost a full percentage point from the same time last year according to the Colorado Division of Housing. This can be attributed to young people who don’t want or can’t qualify for a mortgage or retirees who are looking to downsize and seeking maintenance-free living. 

With interest rates still low, and the region’s economy steadily improving, buyers for both multi-family and single-family investment properties are pouncing while there’s time.

If you’ve considered single-family investment property, the time is ripe.  Just give me a call at 598.3200 and let’s discuss how you can make this a part of your investment portfolio today.

 

INCREASED LOCAL TAX COLLECTIONS INDICATE CONSUMER CONFIDENCE

The Gazette, 9.22.15

Sales tax collections in Colorado Springs rose last month to their biggest percentage gain in almost a year and tax revenues have increased for six straight months on a year-over-year basis. 

This is signification since the city relies on the tax to fund more than half its general fund budget that pays for many basic local services.  The sales tax report is another vehicle used by economists, businesses and others to keep tabs on the health of the city’s economy. 

According to Doug Price, CEO of the Colorado Springs Convention and Visitors Bureau, the Pikes Peak region has had a strong tourist season in 2015, which was boosted by the visitors who came for the Broadmoor Pikes Peak International Hill Climb, the Pikes Peak or Bust Rodeo and the Rocky Mountain State Games.    

He also said that lower gas prices encouraged more people to travel and explore tourist attractions. 

I’m always happy to share good news about our local economy, because let’s face it, when the city does well, the citizens do well and when the citizens do well, they invest in real estate, which in turn continues to earn equity as home prices increase.  Another “win-win” for us all.

 

STRONG ECONOMY TO ATTRACT MORE BUYERS

Realtor Mag, 9.17.15

Due to positive consumer spending and job growth, Fannie Mae researchers are predicting a strong economic gain in the second half of 2015, which will likely offset recent market volatility and heightened anxiety on Wall Street.

With full-time employment now surpassing its pre-recession peak and average hourly earning posting recent gains, we can look for increased consumer spending in the months to come according to Fannie Mae’s Economic & Strategic Research Group.

Doug Duncan, Fannie Mae’s chief economist, says “Continued strong performance of year-to-date home sales and modestly weakening leading indicators confirm that our prior forecast of existing home sales this year remains valid.” 

“Sub-par single-family new home constructions, however, has been somewhat disappointing, and as a result, we have lowered our projected single-family starts projections for 2016.  We anticipate total mortgage originations to increase approximately 25 percent for all of 2015, and total productions volume to decrease somewhere in the area of 18 percent in 2016, with the refinance share falling about 15 percentage points,” he added.

Overall, Fannie Mae is projecting economic growth of 2.4 percent for 2015—up slightly from 2.1 in its prior forecast.  “Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices,” Duncan says.

Bottom Line?  It’s a great time to own Residential real estate.  With price increases, low interest rates and fewer new construction starts, your home is earning equity as I write.  If you’re looking to sell and trade up, now’s a great time.  If you’re looking to buy for the first time or for investment purposes, it’s a good time as well. 

The Federal Reserve hasn’t raised rates yet, but Janet Yellen, chairperson for the Fed, has indicated that it is still her intent to raise rates before the end of this year.  At present though, with the easing of mortgage loan, credit and down payment requirements in a number of categories, now is looking like a great time to check out all the possibilities.  Just give me a call and let’s get the ball rolling.

 

HARRY’S JOKE OF THE DAY

       

 

                                                            

September 15, 2015

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.

                                

As most of you are aware, I’ve always advocated the importance of home ownership in a person’s financial portfolio.  My background in Investment Banking and 43 years in the real estate arena has consistently shown this to be a correct position in most situations.  For example, the average long- term appreciation during my 43 years in the Colorado Springs market has been 5.7%. You will see that this is even better than the national long-term appreciation projected in the article below. 

There have been a number of articles in recent days highlighting reasons to buy a home, either for personal use or for investment purposes and I’d like to share some of this knowledge with you in this issue. 

With the Federal Reserve scheduled this week to discuss the possibility of the first rate increase in nine years, it bodes well to keep this in mind when making housing decisions.  We’ve seen historically low interest rates for quite some time now but it’s likely they will slowly start to rise in the near future. 

Lenders are now easing their qualifications for obtaining mortgage financing and Fannie and Freddie are making it considerably easier for first time buyers to obtain a loan, by lowering and/or changing down payment and credit requirements.

If you or any family members have been waiting to make a home buying and/or selling decision, it would behoove you to wait no longer.  Based on your individual wants, needs and budget, I can help steer you in the right direction when it comes to all your real estate transactions and refer you to competent lenders that can best handle your mortgage needs. 

Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com today and let’s see what we can do for you.

 

THINKING OF BUYING A HOME?  HERE’S 3 QUESTIONS FOR YOU.

Keeping Current Matters, 9.10.15

Friends and family are often full of great advice when it comes to home ownership, but in reality they may not be fully aware of your individual needs or know what’s going on in the local real estate market.  That’s why it’s essential to use a competent, knowledgeable Real Estate Broker in any housing transaction to be assured of an honest assessment of your personal situation.

Here are three great questions to ask yourself when considering purchasing a new home.

1. Why am I buying a home in the first place?

This is by far the most important question.  Forgetting finances, why did you begin to consider purchasing a new home?  A study by the “Joint Center for Housing Studies” at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of that space

The non-financial benefits of buying a home should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

The “Home Price Expectation Survey,” published quarterly by Pulsenomics, surveys a nationwide panel of over 100 economists, real estate experts and investment and market strategists about where prices are headed over the next five years.  Those projections are then averaged into a single number.

Here are the projections from the recent 3^rd Quarter 2015 Survey:

• Home values will appreciate by 4.1% in 2015.
• The cumulative appreciation will be 18.1% by 2019.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 10.5% by 2019.

The chart below was made using these predictions:

                   

Assuming the experts are right, if you were to purchase a home by January 2016 for $250,000, that home would appreciate by over $34,000 over the next four years. 

As I’ve told you time and again, homeownership is one of the best ways to help build your family’s wealth and this is a perfect illustration of that.

3. Where are the mortgage interest rates headed?

As a buyer, you must be concerned about more than just home prices.  The “long term” cost of a home can be highly impacted by an increase in mortgage rates.

The Mortgage Bankers Association , the National Association of Realtors (NAR) and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage point over the next 12 months, as illustrated in the chart below:

               

Bottom line?

Once you and your family have decided for certain that it’s time to buy or sell and trade up, answering these questions will be of great help. 

Any further questions you may have in consideration of your particular situation, please call me and I’ll be happy to provide you with the best answers available.

 

AND IN THE SAME VEIN…HOMEOWNERSHIP IS THE BEST WAY TO BUILD WEALTH

Keeping Current Matters, 8.31.15

Along with the strong recovery in sales and prices, the housing market has increased in the confidence of consumers and experts as an investment, as was also illustrated in the previous charts.  A New York Times editorial entitled “Homeownership and Wealth Creation” explains:        

“Homeownership long as been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”

Facts in this editorial were right on track with the research done by the Federal Reserve in their Survey of Consumer Finances.  That study found that the average net worth of a homeowner ($194,500) is 36x greater than that of a renter ($5,400).

The NAR expanded on that research and projected that by the end of 2015 the average homeowner will have nearly 41x the net worth of a renter.  Their findings are shown here:

                         

It has been suggested that one reason for this large discrepancy in net worth is the “forced savings” created by having a mortgage payment.  The Times explained it as follows:

“Homeownership require potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.”

“Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment.  It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”

“As a means to building wealth, there is no practical substitute for homeownership.”

 

HOWEVER...YOUNG BUYERS ARE BEING SQUEEZED OUT OF THE MARKET

The Wall Street Journal, 9.14.15, RealtorMag, 9.10.15

Even with credit and down payment qualifications easing, first-time buyers are having a difficult time in getting into homeownership.

Student loan debt is at an all time high and delinquencies are common.  Yesterday’s Wall Street Journal reported that according to Federal data released last week, “more than half of students at 347 colleges and vocational schools defaulted on their loans or failed to pay down even a single dollar of their debt after seven years.”

That burden, along with increasing home prices, find young potential buyers being kept out of the housing market and forced to rent or live at home with their families. 

According to Lawrence Yun, chief economist for NAR, “One can say that we are having a nationwide housing cost problem” as housing’s affordability remains a barrier for first-time buyers wanting to enter the market.

The latest “Existing Homes Sales Report” shows that the share of first-time buyers was 28 percent in July, down from 30 percent in June. 

“Home prices are rising anywhere from 3-4 times as fast as people’s income,” says Yun.  “Rents are double the income growth rate.  This is unhealthy, unsustainable.  The only way to tame the housing costs is to have more supply.  So, maybe relaxing the regulations on small-size banks so they can lend to homebuilders is an answer.  We have a mismatch, a dramatic shortage, of owner-occupant homes that are available for sale.”

Locally, I am finding that with new down payment and mortgage qualification requirements along with a slight increase in listings, there are definite possibilities for first-time buyers.  Rental rates are going sky high and you have to pay a mortgage whether or not it’s yours or someone else’s.  It’s certainly worth exploring whether the possibility of homeownership exists for first-time buyers.  Why not give me a call at 598.3200 and let’s see if we can make that happen. 

As an aside to those looking for investment property—there are a lot of folks who are in the rental market due to situations like those mentioned above.  Rental rates are rising sharply and the equity in your investment home will continue to increase over time.  It’s a “win-win” for those with interest in this area and now is a great time to get into the market.

 

SOUTHERN COLORADO ECONOMIC FORUM SET FOR OCTOBER 23^RD

                                            

The 19^th Annual Southern Colorado Economic Forum is being held at The Broadmoor next month and it’s sure to be another sell-out event. 

The Keynote Speaker is Brian Beaulieu, CEO of ITR Economics & Chief Economist for Vistage International.  Following his speech, Tatiana Bailey, Forum Director, will address the” Economic Conditions and Outlook for the Pikes Peak Region”.  There will be an audience question and answer with the economists.

A Panel Discussion concerning “Workforce and the Skills Gap” will also be followed by questions and answers of the panelists.

This is a “must” event for anyone in the business community in the Pikes Peak region and Salzman real estate Services, LTD is proud to have been a sponsor since the Forum’s inception.  

For more information and/or to register, please go to:  www.SouthernColoradoEconomicForum.com

I hope to see you there.

 

HAPPY NEW YEAR…

The Jewish Year 5776 is just starting 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 JOKES OF THE DAY

 

 

September 2, 2015

 

HARRY’S SPECIAL EDITION

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.

 

**EXTRA**EXTRA**EXTRA**

As promised in Monday’s eNewletter, here are the PPAR Monthly Statistics that were released yesterday afternoon.  You will see from the excellent continued upward trend why I wanted to share this good news with you as soon as it became available.

I hope you all have a safe, happy Labor Day Weekend.

 

AUGUST 2015 IS THE 13^TH STRAIGHT MONTH OF INCREASE IN LOCAL SALES

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

Here we go again.  I am thrilled to report that things are continuing to look very good for the Pikes Peak Region in the Residential real estate market. 

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 19.7 over the same period last year.  And Condo/Townhome sales are up 35.7% over the same period last year.

You will also see that while total active listings still remain down from the same period last year, new listings in August were up from the same period last year in both categories.

These numbers reflect continued strong consumer confidence and local job growth, along with low interest rates that many buyers feel will soon go higher.  More and more folks are taking advantage of increased home equity in order to sell and trade up while getting still historically low interest rates.

The Federal Reserve has indicated that rates could rise as early as this month, depending on job growth and economic conditions which have been good in recent months.

Increased new listings mean more choices for those looking to change neighborhoods or simply move around the block.  It continues to be somewhat of a Sellers market, so it’s important to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision is often necessary these days in order to get the home you want. 

If you’ve been thinking about using the current equity available in your present home for a down payment on a new home, don’t wait any longer if you want to take advantage of the still low interest rates.  “Wait and see” is no longer an option in most cases.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the August 2015 PPAR report.  Please click here to view the detailed 13-pages, including charts for August 2015. If you have any questions, as always, just give me a call.

In comparing August 2015 to August 2014 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1,558, Up 9.6%
• Number of Sales are 1,383, Up 24.5%
• Average Sales Price is $273,381, Up 5.8%
• Median Sales Price is $241,468, Up 5.0%
• Total Active Listings are 3,378, Down 17.7%

                        Condo/Townhomes:

• New Listings are 215, Up 17.5%
• Number of Sales are 184, Up 12.2%
• Average Sales Price is $165,188, Down 12.6%
• Median Sales Price is $149,450, Down 1.4%
• Total Active Listings are 295, Down 26.8%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $472,500                              $500,241

Briargate                                  $316,300                              $322,295         

Central                                     $193,000                              $210,350

East                                          $198,475                              $212,569

Fountain Valley:                      $220,000                              $217,785

Manitou Springs:                    $316,500                              $311,785

Marksheffel:                             $254,900                             $266,891

Northeast:                                $220,000                              $231,891

Northgate:                                $395,000                              $399,393           

Northwest:                               $350,450                              $378,510

Old Colorado City:                  $183,900                              $210,829

Powers:                                    $231,000                              $240,060

Southwest:                              $333,500                               $465,981

Tri-Lakes:                                $377,000                               $414,367

West:                                        $243,900                              $321,932

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

 

                                                            

August 31, 2015

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.

LOCAL MARKET UPDATE AND MONTHLY INDICATORS ARE UPBEAT AGAIN

Pikes Peak REALTORS Services Corp.,

I always like to share information with you, my readers, on a timely basis and give you absolute facts so that you can:

• See what’s actually happening in Residential real estate in the Pikes Peak area, and your neighborhood in particular
• Take time at your leisure to peruse the facts and understand what they mean to you personally
• Take action, when appropriate, to create a housing plan for you and your family

I believe that actual facts and statistics give you the ability to make competent choices while allowing you as a buyer and seller to have a positive experience when making a personal housing decision. Sometimes the facts are “good”, occasionally not so good, but in either case, if you are prepared beforehand, hopefully you won’t be faced with situations you might not have expected. 

Being “realistic” is a primary requirement for the home buying and selling experience in my book.  False promises and suppositions only add to what is a somewhat stressful experience to begin with.  This is just another reason for making certain you have a knowledgeable, competent real estate Professional, such as myself, on your team when you are ready for a move.

A report from PPAR released on August 25^th, providing data as of August 12^th,  provides detailed information on housing activity for El Paso and Teller Counties for the month of July.

Such positive news deserves a second look and these reports go into greater detail than the “PPAR Monthly Statistics” for July that I shared several weeks ago.

The “Activity Snapshot” shows the one-year change:

• Sold Listings for All Properties was up 13.8%
• Median Sales Price for All Properties was up 4.2%
• Active Listings on All Properties was down 33.6%.

This is continued great news for those who, despite low interest rates, couldn’t refinance or sell and trade up without bringing additional cash to closing.  Many people stayed in their homes and some were forced into short sales or foreclosures. 

With more equity, homeowners will have better options, such as the ability to sell their present home and have additional cash for a downpayment on a trade-up home. 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update

If you have any questions concerning the report, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com.

Please Note:  The “PPAR Monthly Statistics” for August will be published shortly and when received, I will send out a Special Edition of the eNewsletter so you can have them on a timely basis.

 

JOBS…JOBS…JOBS…EMPLOYMENT NEWS IS GOOD

UCCS 2^nd Quarter Report, The Wall Street Journal, 8.26.15,The  Gazette, 8.27.15

The job market is looking up, especially in El Paso County where it was the strongest in the first quarter than it has been since the middle of the past decade, according to data posted last week on the Colorado Department of Labor and Employment’s website. 

Tatiana Bailey, director of the Southern Colorado Economic Forum said, “This is really encouraging.  We’ve been in the sluggish recovery for several years and now we are finally seeing some really positive job growth numbers.  It is reflecting the improvement we’ve seen in other indicators.”

According to a new report from the economists at the Congressional Budget Office, “more Americans who left the workforce temporarily or who stayed out because of weak job prospects will return in the coming years as demand for labor builds in the economy.”

“We’re actually finding people who are returning to the labor force a little bit faster than we would have anticipated,” said CBO director Keith Hall.  “So it makes us think that the cyclical impact on the labor force is bigger than we thought before.”

Ms. Bailey, through UCCS and the Southern Colorado Economic Forum, published economic statistics that show the “Big Picture” in Labor, Housing, Tourism and more for El Paso County.  To view all of the charts included in the 4-page report, please click here.

The chart depicting “Colorado Springs MSA Job Openings” is below:

                            

I was so happy to receive this particular information because of its implication for the Colorado Springs housing market in general.  More jobs equal more people moving here.  Move people moving here means a greater demand for housing.  And, a greater demand for housing means that present home values will continue their upward climb.  This will allow those looking to sell and trade up a better opportunity to do so.  Those looking for investment properties will find more folks looking to rent as they enter the job force.  And sellers will find more prospective buyers for their homes. 

All in all it’s a win-win for not only homeowners, but for all of Colorado Springs.  Happy days are here again in the local job market.

 

HOUSING AND CONSUMER CONFIDENCE ARE BRIGHT SPOTS IN CURRENT ECONOMY

The Wall Street Journal, 8.26.15

The recent turmoil in the stock market, instability in China and other nations, and concerns about the intent of the Federal Reserve to raise interest rates might have foretold worries for us all.  However, a steadily rising housing market and growing consumer confidence, along with nearly five years of steady job creation, suggests that the U.S. is resilient enough to weather all of this.

According to Joel Naroff, chief economist of Naroff Economic Advisors, “It’s hard to make the case that the stock market mess has anything to do with the U.S. economy as the data are all pointing to solid growth.” 

U. S. consumer confidence rose in August to its highest level since January, reflecting optimism about an improving labor market.  New-home sales picked up pace in July, rising 21% from a year earlier.  And homebuilder sentiment is at its highest level since November 2005.

“It’s sunshine and blue skies, notwithstanding what’s happening on Wall Street,” said Brian Johnson of Mattamy Group Corp., which is based in Canada and builds homes in five American states.  They sold 155 homes in the U.S. in July, doubling its year-earlier output, with an average price of $300,000.

He added, “There’s a lot of headline news going on in places like China, but the U.S. is a more internally focused economy than others in the world.

 

FANNIE MAE HELPING LOW-INCOME BORROWERS

The Wall Street Journal, 8.26.15

Making it easier for working-class and multigenerational households to get a mortgage is on the mind of Fannie Mae. 

The mortgage-finance company said last week that it intends to roll out a program this year that lets lenders include income from non-borrowers within a household, such as extended-family members, toward qualifying for a loan.

This move is intended to open up homeownership to that segment of the population that doesn’t fit the “typical” family structure, ones in which it is common for extended-family members to contribute towards the cost of housing.

The new program will be only open to low-income borrowers or those living in low-income or minority-dominated areas and will also in some cases let borrowers who don’t live in the home, such as parents, contribute income.  Families with boarders will also be allowed to count that rent toward qualifying. 

There are a number of critics of this program but it is a step towards helping those who might not have been able to obtain a mortgage in the past now qualify.

Over the past several years, Fannie, Freddie Mac and lenders have loosened some of the restrictions on down payment and credit-score requirements.  Earlier this year, for example, Fannie and Freddie reintroduced programs that allow down payments of as little as 3%, down from the previous 5%.  These are programs I’ve written about in several past eNewsletters. 

Bottom line?  It doesn’t matter what segment of the market you fall into, there can be a home and home mortgage that can fit your wants, needs and budget.  Just give me a call today and let’s see what we can do to help make your dreams a reality.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

 

HARRY’S JOKE OF THE DAY (maybe not such a joke?)

 

 

                                                            

August 17, 2015

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.

                                     

LATEST QUARTERLY NATIONAL COMPARISON SHOWS LOCAL MEDIAN HOME PRICES ARE WAY UP

National Association of REALTORS, 8.11.15

Home sales are up and supply is down and this has caused homes to steadily rise in most metro areas of the U.S.A.  While this is good news for almost all areas of the country, it’s even better news for Colorado Springs as our median sales price is 20% better than the average median sales price of the 176 areas that are tracked by NAR.

As most of you are aware, I publish these results each quarter as soon as they become available and for a little while Colorado Springs did not seem to be keeping up with the average of other surveyed metro areas.  That changed significantly this past quarter and local median sales prices increased by 10% over the previous quarter to $244,800.  The percentage change for the total measured areas total was 8.2% for an average median sales price of $229,400.  I actually can’t remember when our statistics were that much better than the average median sales price nationally so this is exciting news for us all.

To view the entire list of 176 metro areas, please click here.

Lawrence Yun, NAR chief economist, says the housing market has shifted into a higher gear in recent months.  “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” he said.  “While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”

 “With home prices and rents continuing to rise and wages showing only modest growth, declining affordability remains a hurdle for renters considering homeownership—especially in higher-priced markets.,’ he added.

This is great news for homeowners, especially those who found themselves “underwater” during the recent recession and couldn’t act sooner.   “The ongoing rise in home values in recent years has greatly benefited homeowners by increasing their household wealth,” says Yun.  “In the meantime, inequality is growing in America because the downward trend in homeownership rate means these equity gains are going to fewer households.”

My personal experience in recent months has been that fewer homes on the market has resulted in quicker sales and a very high sales to list price ratio. Yes, folks, as I’ve been saying--it’s no longer a Buyer’s Market.  Some Sellers are finding themselves with multiple offers and are receiving pretty close to asking price these days.  In some cases, Sellers are getting more than asking price. 

What does this mean to you?  Well, more than likely the equity in your present home has increased, giving you the ability to sell and trade up or relocate to another neighborhood.  This also means the home you might be considering has also increased in price.  The good news at the moment is that mortgage loan interest rates are still low and this could be the last time we see this for a very long time.  Even with the shortage of available homes, I’ve found that most Buyers can find something in almost every neighborhood of their choosing. 

If you’ve been considering a move or waiting for the “right” time..NOW is probably the best time to consider all your options.  Prices are continuing to rise and pretty soon interest rates will also be on the upswing. 

With escalating rental rates, investment properties are still a good option for those in the market, but I wouldn’t advise waiting too long as home prices are rising steadily and there are not as many “bargains” as in the recent past.

Why not give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see what we can come up with that works for your wants, needs and budget?

 

‘JUMBO’ LOAN TERMS EASED

The Wall Street Journal,, 8.5.15, Housing Wire, 8.6.15

The “big” guys, such as J.P. Morgan Chase & Co., as well as Bank of American Corp and Wells Fargo & Co. have set the pace for easing terms on ‘Jumbo’ loans—those mortgage loans that exceed $417,000 in most parts of the country and $625,500 in pricier markets. 

These financial institutions have lowered the FICO credit score requirements, to as low as a minimum of 680 for as little as 15% down payment requirement, depending on the lender.

The jumbo market has recovered as much or more than any other sector of the mortgage market because lenders have more flexibility to change criteria since they generally hold these loans on their own books rather than sell them.  Smaller home loans are often sold to Fannie Mae and Freddie Mac and have to conform to the criteria of those mortgage giants. 

Chase adjusted its jumbo loan requirements to make the homebuying process easier as part of a firm-wide simplification process and has also rolled out easy to understand guidelines for primary and second-home loans, as well as investment properties and cash-out finance loans.  This is so that “homebuyers can easily understand the benefits of financing with Chase”, according to Steve Hemperly, head of mortgage loan originations there.

As soon as these terms were made public, I notified several clients who had been looking at other financing for their ‘jumbo’ loans. Chase offered at least one of them a 30-year-fixed-rate loan for 3.75%.  That’s just part of the service I provide my clients.  With my eye on the financial markets at all times, my investment banking background has often come in handy when it comes to making certain that all my clients are getting the very best mortgage loan available for their individual situation. 

 

13 TIPS TO MAKE MOVING SLIGHTLY LESS HORRIBLE…or How To Escape With at Least a Shred of Dignity

citylab, 8.14.15

Moving anywhere is a hassle and often makes us wonder what we were thinking when we bought all those books, DVDs, or collections or anything.  And the proliferation of boxes, wrapping paper and tape, not to mention the wear and tear on bodies!

While it is NEVER fun, moving is a great time to start over and purge stuff you no longer need, as well as look forward to your new living environment, be it a first home, new home or rental.

Some experts have provided suggestions on how to prevent moving from becoming the worst day of your life.  For those who are moving pros, you might pick up a few pointers.  For those moving for the first time, this advice is invaluable.  Here goes:

Before You Start

1. Photograph your cords.  Take photos or make notes on how all of your media equipment is set up:  television, sound equipment, modems and computer equipment.  Keeping tabs on the cords will help you get connected quickly in your new place.

 

2. Change your address.  Doing this a week or two in advance will help ensure that you get important items, such as bills, and don’t have a lag in services that are tied to a mailing address associated with a credit card (like Netflix or Seamless).

 

3. Set up utilities.  You don’t have to wait until you’re settled in to make arrangements for the wi-fi or gas.  Once you know your move-in date, call ahead and schedule whatever you will need.

 

4. Make a plan for your pets.  Moving is stressful for animals, too.  Consider making arrangements to leave your pet with a friend or boarding service in order to keep them calm and prevent them from accidentally slipping out a propped-open door.

 

5. Schedule touch-up paint.  This is especially important for renters who might be responsible for a new paint job according to the terms of their lease.  Waiting for the last minute could be a logistical nightmare if you no longer have possession of the keys.

 

6. Ask for help.  If you’re not hiring a moving company, enlist friends for family and be sure to repay them with money or lots and lots of snacks.

Packing

7. Designate a “first night” box.  You can plan on being exhausted once you get moved in and putting all your essentials such as a toothbrush, change of clothes, medications, etc. in a separate box can make it much easier.

 

8. Start with the stuff you use least often.  This will help you in deciding whether or not those things are really “essential” or should be donated or thrown away.

 

9. Use suitcases wisely.  As long as they have to moved, you might as well fill them with stuff.  Large suitcases are great for lightweight, non-breakable items—such as clothes or bedding.

 

10. Separate cleaning supplies.  You will want to unload your things onto clean surfaces, so instead of tossing cleaners in with the rest of the bathroom or kitchen supplies, put them in a separate box so that you can wipe off any crud on the counters or shelves prior to unpacking.

 

11. Don’t stow your important documents.  Be sure to put your birth certificate, passport,    and other important papers in a separate folder and keep them with you. 

Unpacking

12. Put up a schematic for furniture.  Tape up photos or signs indicating where your couch, coffee table, and other big items should go.  This will help the movers figure out approximately where you want things positioned.

 

13. Save your receipts.  In some cases, moving expenses are deductible from federal income taxes.  If you’re moving due to a change in employment you may be able to claim this deduction even if you do not itemize.  To maximum these deductions, keep track of all costs incurred during the moving process and consult your tax attorney for advice.

 

HARRY’S JOKES OF THE DAY

 

Why don't real estate agents read novels?

Because the only numbers in them are page numbers.

 

Why do appraisers carry a wasp in their hand?

Value is in the eye of the bee holder.

 

What's the difference between a real estate agent and an accountant?

The accountant knows he is boring.

 

What is the study of real estate?

Homology

 

Why didn't the hipster real estate agent show the ocean-side mansion?

 It was too current.

 

What's a mortgage broker?

A real estate agent without the sense of humor.

 

What is the definition of a good real estate agent?

Someone who has a mortgage loophole named after him.

 

Salesman: This computer will cut your workload by 50%.

Property Manager: That's great, I'll take two of them.

 

 

 

 

                                                

August 4, 2015

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.

                                                              

JULY LOCAL STATISTICS CONTINUE THE POSITIVE GROWTH TREND

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

PPAR released July statistics this morning and I waited to share what I anticipated to be more good news, thus the eNewsletter coming to you a day later than usual.

Once again, I am thrilled to report that things are looking very good for the Pikes Peak Region in the Residential real estate market. 

July was the twelfth straight monthly increase in sales.  In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 28.4% over the same period last year.

These numbers reflect strong consumer confidence along with low, but slowly rising, interest rates that many buyers feel will soon go higher.  “Act now” continues to be the current norm and “act quickly” is becoming the new norm.

With the Federal Reserve signaling that interest rate hikes are on the horizon, possibly sooner than later, many people are beginning to realize that this could be the end of historically low mortgage interest rates, most likely in our lifetime. 

Low listings are still limiting choices but I still find that most of my clients are able to sell and trade up as long as they are realistic about the current market conditions and are able to make a quick decision once they find the property they want to buy. 

If you’ve been thinking about using the current equity available in your present home in order to trade up or move to a new neighborhood, don’t wait any longer if you want to take advantage of the still low interest rates.  “Wait and see” is no longer an option in most cases.

To discover the options available for your individual wants, needs and budget, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the July 2015 PPAR report.  Please click here to view the detailed 10-pages. If you have any questions, as always, just give me a call.

In comparing July 2015 to July 2014 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1882 Up 14.3%
• Number of Sales are 1,367, Up 14.0%
• Average Sales Price is $275,417, Up 3.1%
• Median Sales Price is $243,000, Up 5.7%
• Total Active Listings are 3,409, Down 19.3%

                        Condo/Townhomes:

• New Listings are 214, Up 15.1%
• Number of Sales are 194, Up 22.8%
• Average Sales Price is $169,899, Up 3.7%
• Median Sales Price is $155,000, Up 4.5%
• Total Active Listings are 300, Down 25.2%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $412,450                              $434,160

Briargate                                  $328,150                              $336,068         

Central                                      $180,000                              $215,897

East                                          $197,000                              $208,028

Fountain Valley:                      $217,000                              $213,815

Manitou Springs:                    $310,000                              $354,200

Marksheffel:                             $255,000                              $261,953

Northeast:                                $255,000                              $247,663

Northgate:                                $397,500                              $420,704           

Northwest:                               $355,500                              $366,781

Old Colorado City:                  $245,450                              $248,718

Powers:                                    $229,500                              $234,596

Southwest:                              $282,500                              $358,062

Tri-Lakes:                                $440,000                              $446,678

West:                                         $276,950                              $371,757

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

 

HOME PRICES ACROSS THE U.S.A. VAULT TO RECORD HIGH

The Wall Street Journal, 7.23.15,  Associated Press, 7.23.15, The Gazette, 7.23.15

Prices of existing homes in June escalated to record highs, toppling the previous high mark set in June 2006, as sales increased at their strongest pace in more than eight years.

This suggests that the housing market is quickly gaining the ground lost during the recession and recent slow recovery. 

According to the National Association of Realtors (NAR) the median sales price for a previously owned home jumped 6.5% in June from the same month a year earlier to a high of $236,400.  The previous high of $230,400 was recorded in July 2006.

This chart illustrates the recent trend:

Economists say that the numbers reflect a brisk summer selling season combined with stronger employment numbers.  The jump in sales also reflects buyers who are anxious to get into the market prior to the inevitable interest rate hikes and further prices increases.

“Everyone feels the door closing on really low interest rates and I think this is going to be one of the last months where everyone is scrambling to get under contract,” said Glenn Kelman, chief executive of Redfin, a real estate brokerage. 

Home prices have increased 35% since 2011, which benefits current homeowners who may want the opportunity to trade up to better homes or cash out at a profit.  Higher prices are also good news for those who have long owed more on their mortgage than their home is worth, thus preventing them from selling without suffering a loss. 

As you saw from the July PPAR statistics, Colorado Springs and the Pikes Peak area are keeping up with the rest of the country in existing home sales and escalating prices.

 

IMPLEMENTATION OF “TRID” EXTENDED UNTIL OCTOBER 3rd

I’ve previously mentioned the new mortgage loan rule changes that were due to go into effect on August 1, 2015 and wanted to let you know that the implementation date has been pushed up to October 3. 

On that date, the Consumer Financial Protection Bureau’s (CFPB) Truth-in-Lending Act (TILA) and real estate Settlement Procedures Act (REVPA) Integrated Mortgage Disclosure (IMD) rule goes into effect.  Quite a mouthful—so you can see why it’s simply called “TRID”.  It’s also known as the “Know Before You Owe” mortgage disclosure rule. 

The changes are being made so that borrowers can see the true cost of a mortgage loan and more easily compare loan costs of various lenders.  The potential borrower provides only six things in order to have deemed to have completed an application:

1. Name
2. Income
3. Social Security Number
4. Property address of purchased property
5. Purchase price or estimated property value
6. Mortgage loan amount

After that, the cost of the credit report is the only thing a lender can charge before providing a Loan Estimate.  This will be a boon to those wanting to easily and inexpensively compare and know all costs associated with a mortgage loan prior to closing. 

 

HOMEOWNERSHIP RATE DROPS TO 48-YEAR LOW

Housingwire, 7.28.15

Record sales aside, the homeownership rate in the United States continues to decline and is now at 63.4%--the lowest it has been since 1967, according to data from the Department of Commerce’s Census Bureau.  The steady decline since 2009 is illustrated below:

Ed Stansfield, chief property economist at Capital Economics said,  “This suggest that home ownership has not kept pace with the cyclical rebound in household formation which is now underway, and gives weight to the idea that first-time buyers in particular are still struggling to gain a foothold in the market.

“However, foreclosure rates are declining steadily, employment and incomes are growing at a healthy pace and credit conditions are gradually loosening,” Stanfield said.  “What’s more, there is no evidence of a fundamental shift in home ownership aspirations.  Accordingly, we expect that the home ownership rate will soon find a floor.”

And, from Elliot Eisenberg, the “Bowtie Economist”:

“In 1965 the US home ownership was 63% and rose to 65.6% in 1980.  Home ownership then fell and held steady at about 64% from 1984 through 1994, when it began a meteoric rise and peaked at 69.4% in 2004.  It’s since collapsed and is now 63.5%, where it was last in 1967.  Demographics aside, home ownership is for, at most, 65.5% of the population.  Above that, a bubble.”

With rental rates soaring and rental vacancies declining, it’s most definitely a good time to consider purchasing rental property as a potential investment.  I can’t give you tax advice, however, if you think this might be an option for you, I suggest you talk to your tax advisor soon and then call me at 598.3200 or email me at Harry@HarrySalzman.com.  There are a number of properties available in most neighborhoods that are just right for investment purposes and as the numbers attest—there are lots of folks still looking to rent.

 

HARRY’S JOKE OF THE DAY 

 

                                                            

July 20, 2015

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.

                             

 

LOCAL MARKET UPDATE AND MONTHLY INDICATORS

Pikes Peak REALTORS Services Corp.,

I just received a report from PPAR that provides detailed information on housing activity for El Paso and Teller Counties for the month of June. Such positive news deserves a second look and these reports go into greater detail than the PPAR Monthly Statistics I shared last week.  I will make these available each month when I receive them.

The “Activity Snapshot” shows the one-year change:

• Sold Listings for All Properties was up 22.1%
• Median Sales Price for All Properties was up 5.1%
• Active Listings on All Properties was down 37.4%.

This is great news for those who, despite low interest rates, couldn’t refinance or sell and trade up without bringing additional cash to closing.  Many people stayed in their homes and some were forced into short sales or foreclosures. 

According to the NAR Economists’ Outlook Blog, as home prices rise, homeowners’ equity is growing at the fastest quarterly rate since 2013.  The blog indicated that “between 2011 and 2014, the homeowner equity picture has gradually changed.  Homes levels may likely return to 2005 levels by the end of this year or mid-2016.” 

With more equity, homeowners will have better options, such as the ability to sell their present home and have additional cash for a down-payment on a trade-up home. 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update.

If you have any questions concerning the report, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com .

 

ASSESSED HOME VALUES UP 8% ON AVERAGE FOR LOCAL AREA HOMEOWNERS

I recently met with Steve Schleiker, El Paso County Assessor, and asked him about the results of the reappraisals for El Paso County.  Below is his emailed response:

“In the State of Colorado every odd year is considered a reappraisal year for all 64 county Assessors.  This year, overall, 91% of single-family homes increased in value, 6% stayed the same and 3% decreased in value in El Paso County.  On average, we have seen single-family residential values go up 8%; however, that differs around El Paso County, but the median throughout El Paso County was 8% increases in value for single-family residential properties.  real estate sales from July 1, 2012 through June 30, 2014 were used to determine the 2015 property values.

The real estate market in El Paso County is nowhere near what it is north of Monument; however, the increase in property values is a “good” thing.  I consider my home my most valuable investment and am definitely happy to see any kind of appreciation on my home that has not been seen since the real estate crash of 2008.2009.”

Thanks, Steve, for your insight.  You are just like the majority of Americans whose home is their most valuable investment.  It’s always good news to know that we are building equity at a better pace than in recent years, even though along with it will come slightly higher taxes to be paid!

So there you go—not only are we reading reports about home values appreciating, but we are seeing that the recorded assessed values are going up too.  It’s definitely “happy days” again for local homeowners.

 

FEWER LISTINGS AND QUICKER CLOSINGS = FASTER DECISION MAKING

It’s been happening for a while now and things don’t seem to be slowing down.  The threat of rising interest rates, along with rising home prices and a shortage of listings, is forcing buyers to make decisions more quickly. 

The best advice I can offer is to make certain you know what you want, decide what you can afford to spend, and get pre-approved prior to the home searching process.  Being realistic when you begin your search is especially important today when there are fewer homes on the market.

It’s important to work with a competent, experienced real estate Broker who can help you beforehand so you won’t be disappointed along the way.  We do the homework for you and help you find the right property based on a detailed determination of your wants, needs, and budget. 

Bidding wars are becoming more common and you don’t want to find yourself in a situation where you might “win” the battle but “lose” the war.  We can help you know when it’s best to walk away.  There’s always another home, maybe one that’s even better suited for your family.

And, while there are fewer homes for sale, I’ve found that if you broaden your search criteria just a bit, you’ll find there are homes available in most neighborhoods and in most price ranges. 

If you or any family member or co-worker are ready to make the move, please call me today and let’s get the process started.  A new home can be simply a quick phone call away and you can reach me at 598.3200.

 

YELLEN SIGNALS FED RATE MAP STILL POINTS UP FOR 2015

The Wall Street Journal, 7.11-12, 2015, The Gazette, 7.16.15

Federal Reserve Chairwoman Janet Yellen reaffirmed plans for the Fed to start raising short-term interest rates later this year and highlighted tentative signs that wages are rising as the labor market tightens. 

“I expect that it will be appropriate at some point later this year to take the first step to raise the federal-funds rate and thus begin normalizing monetary policy”, she said in remarks to the City Club of Cleveland. 

She emphasized that “the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate the first step.”

Bottom Line?  It could be sooner, it could be later, but it’s going to happen!  The historically low interest rates will be a thing of the past in the near future and now is the time to lock in rates that will mean lower monthly payments for you.  While a home may cost you a little more, you can still get more for your present home…BUT…lower interest rates are not going to hang around forever.  If you’ve been sitting on the fence, now’s the time to get moving.  There’s still time, but it soon may not be on your side! 

 

8 AVOIDABLE MISTAKES FIRST-TIME HOMEBUYERS KEEP MAKING

Housingwire, 7.2.15

Buying a home is one of the biggest financial decisions a person will make and all it takes is one bad or misinformed decision to mess up the whole process.  When it’s a first home, it’s even more important to pay attention to detail, because lack of experience can be a detriment.

If you or anyone you know are thinking about buying a first home, please take a minute to read these avoidable mistakes to help make the process as stress free as possible.

1. They don’t watch their finances before buying a home. 

This includes watching your credit, taking on too much debt right beforehand or making a big purchase right before closing.

Debt-to-income ratio is a huge deciding factor on credit scores and it’s one of the first things lenders look at when putting together a mortgage.  The more debt, the less of a loan you can get.  And lenders look again right before closing to make sure nothing has changed.  So hold off plans to make any big purchases.

2. They don’t take the time to get pre-approved before house hunting

It’s important to know what you can afford prior to looking.  Most real estate Brokers won’t show potential homes without a prequalification letter in hand, and some won’t do anything without the pre-approval. 

3. They take on more than they can handle financially.

Many first-time homebuyers assume that just because they can afford the house means they can afford to live there.  That’s not always so.  There are many costs associated with homeownership that often get overlooked by someone who has never owned a home before.

4. They get into a fixer upper they don’t have time or money to fix. 

While fixer uppers can often seem like a bargain, home renovations are not quite as simple as television shows make them appear.  The average person doesn’t have unlimited budgets and round-the-clock time to invest and the novelty can wear off quickly.  Fixer uppers can often become a drain in time and money.

5. They prioritize the home over the neighborhood.

When looking for the dream home in the dream neighborhood, many realize just how far outside their budgets that home can be, especially in big cities and affluent suburbs.  It can be tempting to look for that same dream home, but in a neighborhood that might not be the right one for their particular needs. 

6. They put all their eggs in the online basket

While the Internet can be an invaluable tool for potential homebuyers, it can never take the place of a reputable team of professionals who can physically meet with you to determine exactly what is necessary to get the process going from start to closing.

7. They spend all their money on the down payment.

Often first time homebuyers save and then spend every last dollar on the down payment, not leaving them anything for additional costs or emergency personal situations that may occur.

8. They skip the home inspection.

Skipping the home inspection might seem like an easy way to save money to some people because they feel that there is nothing that can be found to change their mind about buying the house.  That is until they move in and realize that there are major and very costly maintenance problems such as mold, termites, a leaking roof, or electrical or foundation problems. 

Please share these common avoidable mistakes with anyone you might know who is thinking of first time home buying.  And then please send them to me.  I can make certain that these mistakes are ones they will avoid on their way to becoming a responsible home owner and can make the entire process one that will make them excited rather than disappointed when it comes to one of life’s biggest decisions. 

 

HARRY’S JOKES OF THE DAY