Real Estate Information Archive

September 12, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

WHEN YOU DECIDE TO INVEST, LET US HELP YOU AVOID THE PITFALLS

As we have been emphasizing in recent issues of our Enewsletters, there are great opportunities for investors in our Colorado Springs real estate market. Low prices, low mortgage interest rates, large inventories of available homes, low vacancy rates, etc. all combine to offer a window of opportunity for investment that may never open again.

In fact, according to Realtor Magazine, more homes are turning into rentals. Nearly 35% of occupied homes were rented in 2010, which is a 33.8% increase from 2000.

Furthermore, Hotpads.com, a real estate research firm, states that the vacancy rate for rentals is at its lowest level since 2003 and the average nationwide rent increased to $1,320 in 2010, for a jump of 11.6%.

However, smart investors in real estate should be aware of some of the potential problems they might run into, when they jump into the investment market. As the Wall Street Journal points out (Sept. 10-11, 2011), first-time investors frequently make one or more of the following mistakes:

• Confusing a cheap deal with a good deal. Location is still the most important factor for an investor. Are renters likely to want to live in the property? That’s where we can help you analyze the specific local neighborhood history.
• Overlooking key costs. Closing costs, maintenance, etc. will all impact your eventual profit. We are very aware of all of these ‘add-ons’ and can help you evaluate the true cost of your prospective property.
• Forgetting that time is money.You lose money when your property is empty, whether you are painting it, or between tenants. Knowing how to adjust your rents accordingly is something we can help you with.
• Assuming you will sit back and watch the money roll in. Unless you are willing to devote yourself exclusively to maintaining your rental property, you will probably need the assistance of a good property management firm to screen tenants, handle maintenance, etc. We can help you contact a reputable individual or company to handle the day-to-day management issues that are a necessary part of your investment.
• Underestimating repair costs. Unless you have experience with home repairs and intend to do your own maintenance, you will probably be surprised by the routine costs involved in the maintenance of rental properties. (Many experts recommend setting aside a reserve fund to handle such maintenance). Again, we will be happy to work with you in determining how much ‘set-aside’ you should plan for.
• Assuming that owning a rental is the same as owning a home. You are willing to put up with many small inconveniences and defects in your own home that renters will not accept. Here again, a good property manager can take over that aspect of investment property. Give us a call to discuss this aspect of investment.

Investors used to aim for rents that amounted to 1% of the purchase price of their investment. (That’s $1000 a month in rent for a $100,000 home). That equals an annual gross return of 12%

Today, however, because of the factors discussed above, many investors are getting rents that equal 2% of the purchase price. That’s quite an inducement to acquire an investment property before the window closes on this opportunity.

Call us at 598-3200, or (800) 677-MOVE(6683) and we will be happy to chat with you about the investment opportunities available in our local market.

TWO MORE REASONS FOR BUYING NOW !!!!

On October 1, 2011, the FHA maximum loan amount available from FHA will drop in most cities, including Colorado Springs, from $325,000 to $272,200. Experts warn that this change in policy will prevent Fannie Mae and Freddie Mac from financing a significant segment of the real estate market and will put a lot of Buyers out of the market.

This drop in the conforming loan limit is expected to affect 2% of all homes nationwide.

Another reason for buying now is that many lenders are getting reluctant to lend to anyone except those who have ‘pristine credit’. Even the Wall Street Journal (Tuesday, Sept. 6, 2011) noted that many prospective Buyers with excellent credit have been turned away by some lenders.

Fortunately, we have good, working relationships with our local lenders and we have not had any trouble getting our clients financed. If you have had any problems in this area, give us a call. (598-3200, or (800) 677-MOVE(6683).

Bottom line: Better Buy Now.!!

THE BROOKINGS INSTITUTE SAYS COLORADO SPRINGS IS POISED FOR RECOVERY

According to a recent study by the Brookings Institute, Colorado Springs is ninth among the nation’s 100 largest metropolitan areas in a ranking looking at the resiliency of an area’s industries and the gap between the education of its workforce and the needs of its employers.

Jonathan Rothwell, a Brookings senior research analyst and the author of the report, stated, “There is no reason Colorado Springs shouldn’t bounce back once the nation’s economy begins improving. Colorado Springs has one of the best balanced economies between workers’ education related to the needs of their jobs”.

LATEST STATISTICS FOR COLORADO SPRINGS

The most recent Sales and Listing report of statistics for the Pikes Peak area, published by the Pikes Peak Association of Realtors, shows that home sales in August jumped from a year ago by the biggest percentage in nearly 1 ½ years.

Sales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. This was the largest increase since March of 2010, when sales benefited from the federal tax credit for first-time homebuyers (A program which expired in June of 2010).

The August increase followed an 11.9% gain in July, the first indication of improvement after sales fell in 10 of the previous 12 months.

Most experts agree that the current rise in sales is due to the low interest mortgage rates which are currently available.

Click here for the latest Sales and Listing statistics for the Pikes Peak area

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

JOKE OF THE WEEK

We thought you might be interested in the Winner of the Top Ten Dumbest Criminals of 2010

THE WINNER!

A Charlotte, NC, a man purchased a case of very rare, very expensive cigars. He proceeded to insure them against, among other things, fire.

Within a month, having smoked his entire stockpile of cigars and without having made even his first premium payment on the policy, the man filed a claim against the insurance company. In his claim, the man stated the cigars were lost "in a series of small fires."

The insurance company refused to pay, citing the obvious reason that the man had consumed the cigars in the normal fashion. The man sued....and won.

In delivering the ruling the judge agreeing that the claim was frivolous, stated nevertheless that the man held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure against fire, without defining what it considered to be "unacceptable fire," and was obligated to pay the claim.

Rather than endure a lengthy and costly appeal process the insurance company accepted the ruling and paid the man $15,000 for the rare cigars he lost in "the fires." After the man cashed the check, however, the company had him arrested on 24 counts of arson. With his own insurance claim and testimony from the previous case being used against him, the man was convicted of intentionally burning his insured property and sentenced to 24 months in jail and a $24,000 fine.

The moral of the story?

Darned if we can tell.

August 22, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HOMEOWNERSHIP: IT’S STILL THE AMERICAN DREAM

Fannie Mae and Freddie Mac just released the results from their NATIONAL HOUSING SURVEY. We thought you might like to see some of the results.

First, let’s look at Rent vs Buy:

•  63% of renters have aspirations of someday owning their own home
• 72% of renters think that owning is superior to renting
• 95% of homeowners see homeownership as a positive experience.
• 96% of homeowners live in a single-family residence, while 46% of renters live in a multi-unit building

The survey also shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, were:

1. It means having a good place to raise children and provide them with a good education
2. It provides a structure where you and your family feel safe
3. It allows you to have more space for your family
4. It gives you control of what you do with your living space (renovations and updates)

How about homeownership as an investment? Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what survey respondents had to say about that:

• 65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
• 56% believe that homeownership has more potential as an investment than any other traditional asset class.
• 69% think that now is a good time to buy a home (this number has increased in each of the last two quarters).

The bottom line is that, even in difficult times, Americans still realize the value of homeownership.

SO, I’M THINKING OF SELLING MY HOME. WHAT SHOULD I BE AWARE OF??

If you want to sell your home right now, there are some factors you should be aware of. First of all, our current real estate market is, to use a technical term, “lousy”. Why did this happen and how does it affect you?.

• As a result of the national economic decline, foreclosures and short-sale homes have flooded the real estate market, thus creating a temporary oversupply. When there is an oversupply of a product or service, prices tend to go down. …and homes are no exception to that rule.
• Again, as a result of the general economic decline, this year’s county assessments of property values show lower values for homes, thus impacting our pricing of homes for sale. The bottom line is that home prices have gone down from their peak of about five years ago.
•  This temporary oversupply has allowed prospective Buyers to be very selective about the price and condition of any home they look at. What this means to you, as a Seller, is that, if you want to sell right now, you will have to price your home realistically and make sure it is in great condition. Your house will not sell if it is overpriced (compared with your competition) or if there is deferred maintenance, peeling paint, dirty windows, worn carpeting, etc.

All of this means that you will probably have to invest some money in repairing or remodeling your home to bring it up to the quality that today’s Buyers are looking for.

Because of these factors, many homeowners have decided not to sell right now, but rather, to stay put, until prices rebound. They are adding features, finishing basements, remodeling, etc. Some are doing this to prepare their home for eventual sale, Others are doing it to upgrade their present home so they can stay in it, rather than selling it.

Call us now to discuss your options. We are very familiar with every neighborhood in this area and we will be happy to discuss with you the current market value of your present home, the relative merits of selling now, selling later, buying your next home now and converting your present home into an investment property, etc., etc., etc.

Call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

OK, I THINK I’LL HOLD ON TO MY PRESENT HOME FOR NOW …..BUT TELL ME ABOUT INVESTMENT PROPERTY. IS IT REALLY A GOOD IDEA?

There’s a great window of opportunity right now for acquiring some investment property. Why right now? …Because:

• Prices are low …probably lower than you will ever see again
• Rates are low… probably lower than you will ever see again
• The inventory of available homes is very high. You have your ‘pick of the litter’
• The high volume of people who, prior to foreclosure, were homeowners, but who are now renters has resulted in very low vacancy rates.
• Lenders are starting to tighten lending requirements and loans will soon become more difficult to obtain
• As of October 1, 2011, FHA maximum loan amounts will drop from $325,000 to $272,800 for most communities in the US, including Colorado Springs.

The Wall Street Journal, Wed. Aug 17, 2011 stated, “Prices are so low that more investors are scooping up foreclosed properties and renting them out. Investors can cover their monthly costs and make an 8% -12% profit pretty easily. We haven’t seen that in 20 years”.

As a matter of fact, the profit can easily be greater than that.

As an example, let’s take a look at what we discussed with one of our clients just last week, as we helped him build his retirement portfolio with an investor property. The following figures are based on realistic estimates in our local; market.

Purchase price                          $200,000

Down Payment                              50,000

Loan Amount                            $150,000

Using today’s investment interest rate of only 4.5% for non-owner occupied property, on a 30-year fixed loan (and assuming a tax bracket of 33%), here’s how the numbers worked out:

Monthly payment P&I                $760

Estimated taxes                       $120

Estimated Insurance                  $  80

Total Monthly Payment            $960

Typical one-year tax deduction

            Interest deduction          $6,700

            Estimated property tax  $1,440

            Total deduction            $8,140

Annual Income-tax savings        $2,686

Net cost of the property

            Monthly payment           $ 960

            Less tax savings           $(224)

            Net cost                        $736

The monthly rental net income (after estimating repairs and vacancies) would be $1,054

On a monthly basis, that works out to:

            Income                                     $1,054

            Loan cost                                 $ (736)

            Income before depreciation          $  318

            Depreciation per month               $ (390)

            Actual loss per month                   ($72)

Further, the estimated annual depreciation would be $4,675.

If you held this property for 10 years, assuming typical inflation and appreciation, you could expect an average annual growth of 3% per year. Thus, the market value would go to $260,000.

At the end of the ten years, your balance on the loan would be at $120,134 and your equity would be $139,866 from your original investment of $50,000. That’s 27.97% growth per year as your rate of return.

Finally, in the event that there is absolutely no growth for ten years, i.e. the economy does not grow at all, your rate of return would still be approximately 16%. In a dead economy, that would be fantastic !!

The icing on the cake is that these figures don’t even take into account your annual tax benefits/deductions. …That alone puts an additional $8,140 per year in your pocket.

And you thought Stocks were the way to go

If you would like us to go into more detail about these numbers, please call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

MARK YOUR CALENDAR NOW FOR THE 15th Annual Southern Colorado Economic Forum

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum wiill be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month …

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

Top Ten Things Never Before Said by a Presidential Candidate

10. "Vote for me or I'll slash your tires"

9. "Forget universal health care -- I'm buying every American an XBox"

8. "In a crisis I ask myself, 'What would Regis Philbin do?'?

7. "I'd give you my plan for economic recovery if I actually had one"

6. "If your last name begins with 'M' through 'Z,' sorry -- your taxes are doubling"

5. "We're gonna cut the deficit by selling North Dakota to Canada"

4. "I have tons of experience from being president of the Aston Kutcher fan club"

3. "Lady, that is one ugly baby"

2. "When I'm president, I'm putting Elvis on Mt. Rushmore"

1. "Read my lips: I plan to fire half the people in Washington"

August 15, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

IS NOW A GOOD TIME TO BUY YOUR NEW HOME?

LET'S LOOK AT THE FACTS

No matter what news outlets you read, the scary headlines about the housing market may have convinced you to postpone the purchase of your new home until the market "settles down".

Unfortunately, if you have been influenced by these depressing news stories into postponing your home purchase, you will be missing out on the opportunity of a lifetime.

Let's take a cold, hard look at our local housing market to see what the facts are.

HOW IS COLORADO SPRINGS DOING ?? 

Actually, compared with most other parts of the country, Colorado Springs is doing quite well. The national statistics from the National Association of Realtors and the local statistics from the Pikes Peak Association of Realtors show that, over the past four years, i.e. the period that encompasses the much-publicized decline in the housing market, the national median home price, according to NAR, has gone from $223,500 in July of 2007 to $171,900 in July of 2011. That's a decline of approximately 23%.

However, during that same period (July of 2007 to July of 2011) our local median home price has only gone from $227,000 to $194,000. That's a decline of approximately 10%. .that's 13% better than the national average for home prices (and much, much better than your retirement fund has done)

The bottom line is that "all real estate is local", and therefore, the headline that laments that "You can buy a home in Detroit for $50", doesn't really have any meaning in our local market. Our prices have held up remarkably well. In fact, they appear to have 'bottomed out' and have started to climb again.

AREN'T FORECLOSURES STILL CAUSING A PROBLEM??

In fact, the worst of the foreclosure problem came two years ago. Since then, most of the 'at risk' Homeowners have been weeded out. Foreclosure filings in El Paso County in the second quarter of 2011 dropped 36.1% from the same period in 2010 and first-half foreclosure sales were down 15.6% from last year. As a reflection of this drop, new construction is picking up. Single-family building permits are up and El Paso County is seeing more construction activity than any other major metro area in the state.

However, one significant effect that foreclosures are having on the market is that everyone who has lost a home through foreclosure has become a renter. This has resulted in a very low local vacancy rate, an increase in rents and a rise in the sale of investment properties. You may never have thought of yourself as a landlord, but you should give some serious consideration to purchasing a rental property. Prices are low, Interest rates are at record-lows and there is a big demand for homes and apartments, so rents are rising rapidly.

WHAT IS HAPPENING WITH MORTGAGE RATES? ......OR...........

HOW MUCH HOUSE WILL MY MONTHLY P&I PAYMENT GET ME ?? 

Here's some great news for prospective Buyers. This week, mortgage rates have gone down to as low as 3.875% for a 30 year, fixed-rate mortgage. As Karen Moore of Mortgage Loan Originator Residential Mortgage of Colorado, one of our preferred lenders points out, "These rates are lower than I have seen in my 29 years of mortgage banking".

To put these rates into real numbers, in 2007, the monthly principal and interest payments on a $200,000 home with a 6.5% mortgage was $1264.14.Today, a $200,000 home with an 3.875% mortgage would have a P&I monthly payment of only $940.47. That's a savings of $323.67, or around 25% less expense every month for the lucky HomeBuyer who decides to buy right now.

Take a look at how much your monthly Principal and Interest payment would buy at today's mortgage interest rate of 3.875%.

Approximate loan amount                       Monthly P&I                          

$212,659                                                           $1,000

$255,190                                                           $1,200

$318,988                                                           $1,500

$382,786                                                           $1,800

Keep in mind that these prices are based upon the 3.875% rate for Owner-occupied properties, but the current Investment property rate is still a very low 4.625%. It's not unusual that, considering today's high rents and the depreciation tax write-off, an investment home can generate enough income to pay for itself. In other words, the Owner has a "free" home which can be held forever, or, can be sold at a profit when prices rebound.

So, there may not be any such thing as a "free lunch", but you can now buy a "free house".

Surprised, aren't you?

Call us at (719)598-3200 or (800)677-MOVE (6683).

WHAT ABOUT THE APPRAISAL PROBLEMS WE HAVE BEEN READING ABOUT ?

You are probably referring to the media stories about real estate deals that have fallen apart because of "low" appraisals. Here, again, the headlines don't tell the whole story.

The reason why appraisals can present a problem is that many homes currently on the market are overpriced, either because of inadequate market research by the Realtor, or because the Seller insisted on an unrealistic listing price. Whatever the reason, the fact is that an overpriced house will not sell.

Because we do our research, have extensive knowledge of every neighborhood in the Pikes Peak area and work with our local appraisers, we have had absolutely no problems with appraisals creating closing problems.

Take a minute to think about all of these facts and then call us to discuss our local market, the outlook for real estate in the Pikes Peak area, the opportunities for acquiring your next home or investment property or any other questions you might have about Real Estate in general. Just dial (719)598-3200 or (800)677-MOVE (6683).

We're looking forward to hearing from you. 

NEW MAYOR INITIATES AN "UPDATE EMAIL" TO KEEP US INFORMED

Colorado Springs Mayor Steve Bach has introduced a free email report to keep us advised of the status of the city, budgeting problems and priorities, etc. To see a copy of the recent report, Click here. Or, to get on the mailing list, send your email address to:  stephenbach@comcast.net.

Great idea, Steve !!!

HOW WILL THE CREDIT DOWNGRADE AFFECT MORTGAGES?

"Not much", says Lawrence Yun, Chief Economist & Senior Vice President of the National Association of Realtors. Mr. Yun says that mortgage rates might be impacted by 30 basis points at maximum by the recent S&P downgrade of the U.S. credit rating. He states that it is also possible that the downgrade might have absolutely zero impact, if global bondholders do not care for S&P's opinion.

In a statement issued on August 8, 2011, Mr. Yun points out that, "A 30-year fixed rate rising from 4.3% to 4.6% will not change the housing game that much, but a return to normal underwriting standards and a boost to consumer confidence will be the true game changer".

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month .

LATEST SALES AND LISTING STATISTICS

 To see the latest Sales and Listing statistics from the Pikes Peak Association of Realtors, Click Here

JOKE OF THE WEEK

"How to Succeed in Business" Advice from an Investment Banker

An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The Banker asked how long it took to catch them. The Fisherman replied, "Only a little while." The Banker then asked, "Why didn't you stay out longer and catch more fish?" The Fisherman said, "With this I have more than enough to support my family's needs." The Banker then asked, "But what do you do with the rest of your time?" The Fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."

The American scoffed, "I am a Harvard MBA and I could help you. You should spend more time fishing; and with the proceeds, buy a bigger boat: With the proceeds from the bigger boat you could buy several boats. Eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor; The next step would be to open your own cannery. You would control the product, processing and distribution. Obviously, at that point, you would need to leave this small coastal fishing village and move to the city, where you will run your ever-expanding enterprise."

The Fisherman asked, "But, how long will this all take?" To which the Banker replied, "15 to 20 years." "But what then?" asked the Fisherman. The Banker laughed and said, "That's the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions." "Millions?...Then what?" The Banker replied, "Then you could retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."

This story illustrates the truth of the old saying, "Give a man a fish, and he will be able to eat for a day. Teach a man to fish and he will be able to sit in a boat and drink beer for the rest of his life".

August 8, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THINKING OF BUYING A HOME ?  HERE'S SOME REASONS FOR DOING IT RIGHT NOW

 If you have been delaying buying that new home, either as a residence or as an investment, here are a couple of reasons for getting off the dime and making your move right now:

• Mortgage rates and fees are on the verge of going up. Although you can now get a loan for as low as 4% - 4.25%, that's going to change soon. S&P warned that they may downgrade Fannie Mae and Freddie Mac and that will push rates up. Also, loan fees are going up and credit requirements are tightening. The bottom line is that, if you qualify for a loan today, you had better strike, while the iron is still hot, or, you might have to pay a higher rate tomorrow.  
• If you have been delaying your decision to buy and home prices take another downward slide, you might not end up with as much equity in your present home, thus making it more difficult to qualify for a loan
• Inflation is an inevitable consequence of printing more money ..(and we have done a lot of that lately). The coming Inflation will raise all prices, including home prices.

 And, as far as buying a home as investment property is concerned, remember that, "Everybody has to live somewhere". With homeownership falling (65.9% in 2011 vs. 69.2%in 2004), because of foreclosures and tightening credit requirements, more people are now being forced to rent. This creates an opportunity that has persuaded many smart investors to buy rental property.

 As we emphasized in our last issue, a lot of "Big Money" is getting into the investment property game. Buying foreclosed properties has long been an activity for mom-and-pop investors, but now hedge funds, private equity firms, pension funds and university endowments are dipping into that market. They see that, within the last couple of years, rentals have gone from 20% to 30% of the housing market and they see that the double-digit returns shown by investment property are much better than the low yields which other income investments are showing.

 Keep in mind, also, that Colorado Springs has historically out-performed the rest of the country in real estate appreciation.

 Perhaps you should discuss this option with us. It could improve your entire investment portfolio.

 Call us at (719) 598-3200 or 1-800-877-MOVE (6683)

WAITING FOR 'JUST THE RIGHT MOMENT' TO SELL YOUR HOUSE? READ ON

If you have delayed putting your house on the market until there isn't as much competition (i.e until the inventory of available homes gets smaller), it looks like you might have a long wait. Many experts are predicting that 2011 will see a jump in inventory, as banks dump more foreclosures on the market.

To quote from the KCM blog, here are some of the industry publications that are predicting an increase in inventory and a decline in prices:

• BLOOMBERG BUSINESSWEEK - "Housing prices will decline 6% - 8% nationally, with 6 - 7 million more foreclosures yet to come".
• YAHOO FINANCE - "Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%"
• HOUSING WIRE - "JP Morgan analysts estimate a further drop of 4% in home prices from the first quarter of 2011 to a new bottom next year."
• DS NEWS - "Most analysts expect further declines to characterize the later parts of the year and possibly extend into next year, largely because of the huge supply of foreclosures on the market"

The bottom line for prospective Sellers is that waiting might be a bad strategy. By waiting, if prices dip, your equity could go down and the number of competitors for prospective Buyers could go up.

Bottom line: If you are thinking of selling your home in the next 12 months, you would probably do much better if you sold sooner, rather than later.

Call us at (719) 598-3200 or 1-800-877-MOVE (6683)

LATEST SALES AND LISTING STATISTICS

The latest report from the Pikes Peak Association of Realtors shows that, :

• Number of Sales in July 2011 was up 11.9% over July of 2010 (798 vs 713)
• Prices in July 2011 were down 5.2% from July 2010
• Median prices in July, 2011 were up 7.5% from June, 2011 ($198,950 vs $185,000)
• 80% of all local sales were for homes under $299,999
• There are now 20.8% fewer homes on the market than there were last year.

If you would like to examine all of the local housing statistics for July, 2011, please click here and. if you would like to discuss any aspect of the PPAR report, please give us a call at (719) 598-3200 or 1-800-877-MOVE (6683).

THE PARADE OF HOMES IS NOW OPEN

This year's Parade of Homes opened on August 5^th and features 33 homes and 25 home builders. The main sites are located at Gold Hill Mesa, Cordera and Flying Horse.

We're excited to see that Homebuilders are confident that the market is coming back and we're looking forward to seeing you and the beautiful new homes at the Parade.

If you would like any information about the Parade of Homes, just give us a call at 719-598-3200 or 800 677-MOVE (6683)

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Finally, just click on the icon at the top of this email to listen to my podcast for this month.

JOKE OF THE WEEK

After sitting through the recent interminable Football Hall of Fame ceremonies, we were reminded of an old joke:

Three sons left home, went out on their own and prospered. Getting back together, they discussed the gifts they were able to give their elderly mother.

The first son said, "I built a big house for our mother."

The second son said, "I sent her a Mercedes with a driver."

The third son smiled and said, "I've got you both beat. You remember how mom enjoyed reading the Bible? And you know she can't see very well. So I sent her a remarkable parrot that recites the entire Bible and speaks three languages. It took elders in the church 12 years to teach him. He's one of a kind. Mama just has to name the chapter and verse, and the parrot recites it."

Soon thereafter, mom sent out her letters of thanks:

"Milton," she wrote son #1, "The house you built is so huge. I live in only one room, but I have to clean the whole house."

"Gerald," she wrote son #2, "I am too old to travel. I stay most of the time at home, so I rarely use the Mercedes. And the driver is so rude!"

"Dearest Donald," she wrote to her third son, "You have the good sense to know what your mother really likes. The chicken was delicious."

Donald immediately called his mom:

"Good Grief, Mom. That wasn't a chicken. It was a very valuable parrot. He could recite the whole bible and speak three languages".

Mom responded, "My Goodness !!! ..So why didn't he say something??

August 1, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LEMONADE, ANYONE ????

From time to time, our friends kid us about the fact that our Enewsletter always manages to maintain a positive view of the housing market. 

"With all the news about housing sounding so bad, how do you always manage to sound so enthusiastic about our local housing market", they ask.

Well, let's take a look at what's happening in housing and see if the "bad" news is really all "bad", or, can it actually be "good" news, depending upon how you react to it.

In other words, maybe we have to make lemonade out of the lemons that the market has dealt us in the past few years.

True, the news we read in the papers sounds pretty grim. For example, here's a few housing headlines from the past week:

•  HOME SALES, PRICES REFLECT MALAISE - The Wall Street Journal, July 27
• HOUSING PRICES RISE SLIGHTLY, BUT REMAIN WEAK - NY Times, 7-27-11
• GROWTH SLOWS THROUGHOUT U.S. -Gazette, July 31, 2011
• HOUSING SQUEEZE FAILS TO LOOSEN UP- The Wall Street Journal, July 25.

(By the way, this last headline fits right in with our lemonade analogy)

Wow, that paints a pretty bleak picture, doesn't it? But now, let's look at some of the positive aspects of the data that will illustrate there's a fantastic opportunity waiting for you in today's market:

•  Everybody has to live somewhere !!!!!, That means they either buy or rent their home.
• While the population of the Springs has remained fairly stable, the percentage of people who own their homes has gone down (65.9% in June.the lowest level since 1998) and the percentage of people who rent has gone up accordingly. What this means is that the individuals and families who have lost their homes to foreclosure have now become RENTERS !!
• Vacancy rates for apartments and single-family homes are way down and going lower.
• Because vacancy rates are down, rents are going up (In many cases, mortgage payments are cheaper than rent, for the same property)

So, what does this mean to our readers who are thinking of selling their homes?

•  If you don't have to move, or don't want to move right now, just wait for the market to come back (and it will, eventually). Relax, have a glass of lemonade and enjoy life !!!
• If you have to sell right now because of a job transfer, or a change in your family finances, be prepared to price your home realistically, based upon today's market. True, you will probably have to sell at a price lower than you would have gotten three years ago... however, your new home will be a real bargain. ..and remember, for every dollar you "lose" when you sell at today's prices, you will gain one back when you buy your new home.
• If you just want to "move up" to a bigger/nicer home in this area, but don't want to take a 'loss' on the sale of your present home, consider renting out your home. (You might even make more from the rent than you presently spend on mortgage payments). Later, when the market comes back, you can either sell your present home or continue to rent it out. But, before you decide to sell it, keep in mind that there are several financial benefits to being an "investor". (Call us to discuss this. You might be surprised how owning a rental property can improve your retirement plan).

 "OK, Mr. Lemonade. What if I'm a Buyer? "

Well, if you're a Buyer, you are looking at a fantastic opportunity. Some of the reasons for buying your home right now are:

•  Prices are very low ..probably as low as they are ever going to be.
• Interest rates are very low .probably as low as they are ever going to be.
• Down payment requirements are very low .probably as low as they are ever going to be.
• Inventory is very high .probably as high as it is ever going to be.

 (Come to think of it, those also sound like good reasons for buying investment property.)

And, if you need further assurance, just check out the following recent articles.

The Wall Street Journal: Why It's Time to Buy

CBS Money Watch: Why the Time to Buy is Now

Forbes Magazine: 9 Reasons to Buy a House Now

National Public Radio: For Many, It's Still a Good Time to Buy a Home

The bottom line: Call me at 719-598-3200 or 800 677-MOVE (6683) and we'll have a glass of lemonade and talk about your new home.

THE PARADE OF HOMES OPENS ON AUGUST 5^TH

This year's Parade of Homes opens on August 5^th and features 33 homes and 25 home builders. The main sites will be located at Gold Hill Mesa, Cordera and Flying Horse.

We're excited to see that Homebuilders are confident that the market is coming back and we're looking forward to seeing you and the beautiful new homes at the Parade.

If you would like any information about the Parade of Homes, just give us a call at 719-598-3200 or 800 677-MOVE (6683)

See you there.

AND HERE'S SOME MORE GOOD NEWS

Sorry to be so cheerful, but the good news just keeps rolling in. Here are some examples:

•  CoreLogic's July report says that home prices are stabilizing and the number of foreclosures is falling.
• Standard & Poor's Case-Shiller index of home prices in the top 20 metropolitan areas shows a 1% increase.
• On the local scene, WalMart's new $100 million dollar data center will be built near Voyager and Interquest parkways. The center will require an additional $50 - $100 million in machinery and equipment and will initially employ about 30 people with salaries of $30,000 to $70,000. Construction will begin in October and will be completed in late 2012.
• Kiplinger's Personal Finance magazine has named Colorado Springs as #4 in their list of 'Best Value Cities' The list cites "low living costs (8% below the national average), strong economies, great amenities and the high number of 'creative class' workers".

Colorado Springs is profiled in the September issue of Kiplinger's magazine and online at www.kiplingers.com/links/bestcities.

WANT TO KNOW MORE ABOUT HOW COLORADO SPRINGS IS DOING? THE "QUE" WILL TELL YOU

The Southern Colorado Economic Forum issues a quarterly report on our local economy. This 19 page report, called the "QUE" (Quarterly Updates and Estimates), contains graphs and statistics about every facet of our local economy and is invaluable in analyzing our economic progress. The most recent report shows that our economy is struggling to rebound, but slowly.

The "QUE" housing market statistics indicate that our prices and inventory are stabilizing.

Fred Crowley, chief economist for the Forum, states that we are on our way back up, but jobs will still be the critical factor in our recovery.

For a complete copy of the "QUE", Click here.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, please contact us. 

LATEST SALES AND LISTING STATISTICS

Click here for the most recent Sales and Listing statistics from the Pikes Peak Area Realtors Association

JOKE OF THE WEEK

To heck with news about the deficit. Deficit, Schmeficit, Who cares. The important news is that football is back. We thought you might enjoy the following story that illustrates what football means to the typical fan:

A guy named Bob receives a free ticket to the Super Bowl from his company. Unfortunately, when Bob arrives at the stadium he realizes the seat is in the last row in the corner of the stadium he's closer to the Goodyear blimp than the field. About halfway through the first quarter, Bob notices an empty seat that was 10 rows off the field, right on the 50 yard line. He decides to take a chance and makes his way through the stadium and around the security guards to the empty seat.

As he sits down, he asks the gentleman sitting next to him, "Excuse me, is anyone sitting here?"

The man says "No".

Now, very excited to be in such a great seat for the game, Bob again inquires of the man next to him, "This is incredible! Who in their right mind would have a seat like this at the Super Bowl and not use it?"

The man replies, "Well, actually, the seat belongs to me, I was supposed to come with my wife, but she passed away. This is the first Super Bowl we haven't attended together since we got married in 1965."

" Wow, that's really sad," says Bob, "but still, couldn't you find someone to take the seat? .maybe  a relative or close friend?"

No," the man replies, "they're all at the funeral."

July 18, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LOCAL SALES TAX COLLECTIONS UP FOR 20^TH MONTH IN A ROW

Sales Tax collections are a good indicator of the state of a community's economy. Sales and use taxes fund more than half of the city's annual budget for police and fire protection, roads and other services.

The good news is that our local sales tax collections have gone up for the last 20 months in a row.

Categories that showed the largest increases in June were Hotels and Motels, up 15.04% from a year earlier, utilities, up 14.54% and grocery stores, up 8.61%. The four categories with decreases were furniture, appliances and electronics, auto dealers and building materials.

However, the sales tax from medical marijuana jumped 67.87% from a year earlier to a record $71,005 and total new record of $305,454 so far this year. That's a new high. (Pardon the pun).

Who says our economy is going to pot?

FREDDIE MAC SEES BETTER DAYS AHEAD IN HOUSING

Freddie Mac's chief economist is optimistic that the housing market and economy will improve in the second half of 2011.

Quoted in HousingWire, June 27, 2011, Freddie Mac Chief Economist Frank Nothaft said mortgage rates will likely remain historical lows of between 4.5 percent and 5 percent for the remainder of the year. Also, he expects more buyers to stop waiting on the sidelines as recent price drops in home prices have improved affordability.

Nothaft said consumers' uncertainty about the economy has caused them to delay home purchases and other "big-ticket items."

"Some potential buyers who have the means to buy are awaiting clearer signs that home values have firmed," Nothaft says.

But Nothaft says they should be getting their signs in the second half of the year, with projected job gains, and a growing, improved economy.

"Even though near-term concerns over income and sales growth are restraining consumer spending, business hiring, and new building, a number of positive signs in the economy indicate that growth will continue and is likely to accelerate in the second half of this year," Nothaft said. "Look for a gradual improvement in housing activity in the coming year."

Give us a call to discuss our local market and to explore the great opportunities for investment property in our current market at (719) 598-3200, or, 800 677-MOVE (6683).

GEARING UP FOR A HOUSING COMEBACK

Realtor magazine points out that no one knows for sure when residential real estate will officially "recover," but a turnaround may not be far off. When it comes, practitioners and brokers who spent the downturn fundamentally improving their business will be in the best position to take advantage of the upswing, a panel of real estate executives said at the recent REALTORS® Conference & Expo.

"We're in the seventh inning of a full-blown housing correction," said Ron Peltier, chair and CEO of HomeServices of America. "I think what's happening is that all of the nonsense is getting pushed out of the market. If we understand that, we can be better operators."

At this point, there are signs of improvement. For example, as Realogy President and CEO Alex Perriello pointed out, there has been a significant increase this year in home sales over $500,000 and in all-cash transactions. "We're seeing the value buyer getting back into the market; these are people who are well-off financially and very thoughtful. What that tells me is that the smart money is calling bottom," he said.

Peltier added that, for Realtors, deep knowledge of their local market is critical. But one thing the panel repeatedly emphasized was a commitment to helping out consumers, even when there isn't an immediate financial benefit.

"As REALTORS®, we can do a lot to help keep people in their homes. If you do a good job when people need you, those people will be your customers for life. That's your dividend."

Well said, guys. Those are our sentiments, exactly.

COLORADO SPRINGS NEW MAYOR UNVEILS NEW P.R. PUSH .AND IT'S GREAT

On June 30^th, at the Colorado Springs Chamber lunch, we had the opportunity to see what our new mayor and city council have in mind for their push to attract new businesses to our city. .and it was impressive.

First of all, the website, www.springsgov.com, was very well designed, very attractive and very impressive. The link to Springs TV on Demand took us to a beautiful, four-minute video production, "The Spirit of the Springs". This video was developed by the Public Relations department of the City of Colorado Springs and is designed to make everyone aware of our great city, our magnificent attractions, our multiple activities and our unbeatable lifestyle.

If this video doesn't attract new visitors and businesses to our city, nothing will.

Some of the other various links on the website are:

• News (and, if the sheer number of news items on the site doesn't impress you, I'll eat my hat)
• Events (There's something to do every day in our city)
• "I Want To" with links to everything from applying for a building permit, checking airport flight information, obtaining a free prescription discount card, finding Fire Station locations, etc., etc., etc..
• Web Links (Check out Tourism and Attractions .Wow !!.New York City has nothing on us)

We strongly recommend that our readers click on www.springsgov.com to see how our new city administration is hitting the ground running, as they try to attract new visitors and businesses to our unique city. Send this link to your out-of-town friends and relatives and then stand back as the requests to visit you start coming in.

If this is an example of what our new administration is going to do to help build our economy, we can hardly wait to see what will happen next.

Nice going, Mayor Bach.!!!

As a matter of fact, the new Colorado Springs promotional film has us so excited about living here that we will take some time off, just to explore some of the local attractions that we found on the site and didn't even know about .This means that next week, there will be no Weekly Update from Harry Salzman. Sorry, but we'll see you again on August 1, 2011.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, please contact us.

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

JOKE OF THE WEEK

Considering the heatwave that is sweeping much of the country, we thought the following heat-related jokes might be appropriate:

Rumor has it that the Florida Marlins will be renamed the "Humidity" so that fans in Florida will be able to say, "It's not the Heat that's so bad, it's the Humidity."

The U.S. has only three hurricane warning centers - Coral Gables, FL, Guam, and Honolulu, HI (recently completed). All three have faced Category 4 hurricanes in the past month. Which only goes to show: If you build it, they will come!

I really don't understand why the federal government was so slow to send aid to the areas hit by Hurricane Andrew. After all, both Florida and Louisiana have oil.

It was so hot today I saw a robin picking earthworms out of the ground with a pair of tongs.

What happens when the smog lifts in California? UCLA.

How to predict weather in Seattle: If you can't see Mt. Ranier, it's raining. If you can see Mt. Ranier, it's about to rain.

An honest weatherman would say, "Today's forecast is bright and sunny with an 80% chance that I'm wrong."

First cave man to 2nd cave man: "I don't care what you say. We never had such unusual weather before they started using bows and arrows."

Nate: "Hey, what's the weather like out there?" Kate: "I don't know. I'll tell you when it clears."

It's a bit "muggy" in New York today.

There's a technical term for a sunny, warm day which follows two rainy days. It's called Monday.

A postcard home: The weather is here. Wish you were beautiful.

A Viking invader is trudging up the beach in the pouring rain. He sees an Englishman and says, "So this is England. What's it like?" The Englishman replies, "Well, if you like the weather, you'll love the food."

A weather forecaster took a job in another part of the country. When asked why he transferred he replied, "The weather didn't agree with me."

July 11, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

YOU MAY BE ABLE TO AFFORD YOUR NEW HOME TODAY  .BUT WILL YOU BE ABLE TO AFFORD IT TOMORROW?

The Wall Street Journal (July 26, 2011) warns that, as of October 1, 2011, many prospective homebuyers will be frozen out of the home market by the changes which will go into effect on that date.

On October 1, 2011, maximum loan limits for loans backed by FHA will decline in around 600 counties throughout the US and maximums for loans backed by Fannie Mae and Freddie Mac will decline in around 250 counties. In El Paso County, the maximum available FHA mortgage amount will be reduced from $325,000 to $271,050, a reduction of $53,950. (And, if history is our guide, conventional and VA loans will probably also reduce their maximums soon thereafter)

Some lenders are already warning borrowers that they will stop accepting applications for loans that exceed the new limits much sooner than October 1, to ensure the loans are funded before the cutoff date.

Homeowners whose mortgages are too big to qualify for a government-backed mortgage will probably have to seek a "jumbo loan" which often carries a higher interest rate as well as a higher down payment, sometimes more than 20%

To make matters worse for prospective Home Buyers, there are also widespread rumors that FHA down payment requirements will soon be increased from 3.5% to 5%.

And, if that's not bad enough, credit requirements are tightening.

The result of all of these changes will be that, after October 1, 2011, many prospective homeowners will no longer be eligible for FHA loans and will have to settle for renting, for the foreseeable future.

All of these changes reflect the fact that the government is getting out of the housing market, where it currently stands behind more than nine out of ten new mortgages.

If you have been waiting for the "perfect time" to buy your new home, these new regulations might serve as a warning that you had better make your move now.

Call us to discuss it at 598-3200 or 800-677 MOVE (6683). 

HEY, MAN, EVERBODY HAS TO BE SOMEWHERE !!

That's the punch line to an old joke, but it also applies to our present rental market. Every family that has been foreclosed on, or has been forced to short-sell their home, has to be somewhere. So, not by choice, they have become "New Renters".

Unfortunately, these "New Renters" can't afford the down payment on another home, their credit is bad and the new, tighter regulations that are coming to us in October make it even less likely they will be able to buy another home in the near future.

Their plight explains why local vacancy rates are so low and why more and more Investors are buying rental properties.

If you would like to discuss what investment property can do for your future, now is the time to call us. Call 598-3200 or 800-677 MOVE (6683). 

FORBES PUTS COLORADO SPRINGS IN THE TOP 30 CITIES FOR BUSINESS

Every year, Forbes measures the top 200 U.S. cities for their list of "Best Places for Business and Careers". This year, Colorado Springs comes in at #30, beating out such cities as Albuquerque, Atlanta, New York, and Indianapolis.

This survey was taken before our new mayor and city council kicked off their aggressive push for new businesses, so we are expecting to be even higher on next year's list.

For a complete list of the top cities, click here.

FIRST CHAMBER LUNCHEON WITH OUR NEW MAYOR IS A RECORDBREAKER

On Thursday, June 30^th, the Colorado Springs Chamber of Commerce held their annual State of the City Luncheon. This marked the first time that the luncheon was attended by our newly-elected Mayor, Steve Bach.

There were a record number of Chamber members in attendance which reflected the widespread enthusiasm expressed by everyone in attendance. The Mayor commented upon the fact that he is constantly receiving calls and emails from every segment of our population, offering to help him with whatever is necessary to stimulate new jobs for our city. He pledged to work with the Chamber and the Economic Development Council to attract new businesses and jobs to our community.

The mood of the meeting was very upbeat and the city council members in attendance echoed that positive attitude. As Councilmember Brandy Williams stated, "I am most proud of the exciting collaboration between the city, the county, the mayor, the Chamber the community and others".

To sum up the meeting, it looks like there are some great years ahead for our city.

MORE INTERESTING FACTS FROM "ENGAGE -COLORADO SPRINGS"

Here are some more good reasons for living in Colorado Springs:

The national cost of living index is 100, but the cost of living index in Colorado Springs is 92.

Source: C2ER-COLI 1^st Quarter 2011

Business Climate taxes:

MN       9.8%

CA        8.84%

OR       7.6%

ID         7.6%

NM       7.6%

NY        7.1%

AZ        6.9%

UT        5%

CO       4.630%

Source: Federal Tax Administrators Internet, January 2011

*Note: Engage is a supplement to the Colorado Springs Business Journal and is available from CSBJ. (719) 634-5905. www.csbj.com

OUR LOCAL STATISTICS CAN HELP YOU MAKE YOUR PURCHASING DECISION

Every week, we publish the PPAR statistics which cover our local real estate market. These statistics can assist you in analyzing our market by presenting a huge number of vital facts, such as listing and selling prices in each of our local neighborhoods. As of June 30, 2011, for example, these stats show that:

• There were 872 home sales in the Pikes Peak region. That's the highest number of homes sold since June, 2010, when the federal tax credit was still available.
• The average sales price in June, 2011, was @215,741, up 1% from the previous month, however, it was down from $237,318 last June, before the tax credit expired.
• The "average days on the market" is now 94 (Sellers, take note).
• Overall, the average percentage of selling price to listing price in June was 97.6%, which indicates that Sellers are now pricing their home more realistically than they did in past years.

CLICK HERE to see the complete June PPAR report. Then, if you would like to discuss these figures in more detail, please give us a call.

Note that right now, there are great opportunities to build your investment portfolio, but the window of opportunity will not last forever.

Call us at 598-3200 or 800-677 MOVE (6683). 

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, please contact us. 

JOKE OF THE WEEK

Top Ten Things You Wouldn't Know Without Movies

1.  It is always possible to park directly outside any building you are visiting.
2. A detective can only solve a case after he has been suspended from duty.
3. If you decide to start dancing in the street, everyone you bump into will know all the steps
4. Most laptop computers are powerful enough to override the communication systems of any invading alien civilization.
5. It does not matter if you are heavily outnumbered in a fight involving martial arts - your enemies will wait patiently to attack you one by one by dancing around in a threatening manner until you have knocked out their predecessors.
6. No one involved in a car chase, hijacking, explosion, volcanic eruption or alien invasion will ever go into shock.
7. When they are alone, all foreigners prefer to speak English to each other.
8. You can always find a chainsaw when you need one.
9. Any lock can be picked by a credit card or a paper clip in seconds, unless it's the door to a burning building with a child trapped inside.
10. Television news bulletins usually contain a story that affects you personally at that precise moment you turn the television on.

June 27, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

SPRINGS SLOWDOWN NOT SO BAD, STUDY FINDS

According to the Gazette, a growing military presence helped the Colorado Springs economy avoid the worst of the recession, but a lack of other economic drivers (translation: JOBS) has kept it from recovering significantly from the downturn, according to a study by the Brookings Institution.

The study found that both Colorado Springs and Denver ranked among the top 20 of the nation's 100 largest metropolitan areas in their economic performance since the start of the recession, as measured by changes in employment, unemployment rates, economic output, housing prices and rate of mortgage foreclosures.

On the bright side, the recent announcement of troop reductions in Afghanistan should add about 1500 additional troops to our area, which will also help boost our economy.

A spokesman for the study stated "The economy will not roar back, but Colorado Springs is at a much better starting point than its peers".

That's good news !!!

EXPERTS AGREE PRICES HAVE BOTTOMED OUT AND WILL STAY THERE

U.S. house prices rose slightly in April for the first month-to-month increase since last May, according to new numbers released today by the Federal Home Finance Agency, a branch of the Treasury Department.

Prices rose 0.8 percent on a seasonally adjusted basis from March to April, according to the FHFA's monthly House Price Index. For the 12 months ending in April, U.S. prices fell 5.7 percent.

A significant majority of the 108 economists and experts participating in MacroMarkets' June Price Home Expectations panelists believe that the bottom for home prices arrived in the first quarter or will arrive sometime before year-end.

The FHFA numbers echo similar data from FNC, Altos, ClearCapital, Move and other sources reporting an uptick in prices in April, following the double dip in prices during the first quarter.

However, expectations for the pace of recovery fell.  The group of 69 panelists who are currently forecasting a 2011 turning point predict less than two percent average annual growth in nominal home prices over the five-year period ending December 2015. The average expected cumulative home price change between Q4 2010 and Q4 2015 is just 5.71 percent, $1.2 trillion less in aggregate U.S. single-family housing wealth at the end of 2015 than projected just six months ago.

Looking at expected housing market performance through the five year period ending 2015, the most optimistic quartile of panelists projects 15.3 percent average price growth, while the most pessimistic quartile of panelists projects 6.0 price average price erosion from Q4 2010 levels. This spread is huge, representing almost $4 trillion in housing market value.

COLORADO GAINS 11,000 JOBS IN FIRST FIVE MONTHS OF 2011

Colorado's job market turned a corner from losses to gains during the first five months of 2011, which is good news for job seekers in the state who had little to celebrate in 2010.

Average employment in the state is up by about 11,000 so far this year over the same period last year, a 0.5 percent gain, compared with a loss of 25,000 jobs last year.

There are encouraging signs in the numbers, particularly in retail, professional services and manufacturing.

Retail employment, an indicator of consumer demand, has climbed 2.7 percent since the beginning of the year, adding 6,200 jobs.

Manufacturing has added 2,900 jobs, a 2.3 percent gain.

Leisure and hospitality is up slightly, with 700 new jobs.

Professional, scientific and technical services - which includes lawyers, accountants, architects, advertising reps and scientists - is up 4,500 jobs or 2.7 percent.

Even construction, the hardest-hit sector in the state and down 5.9 percent for the year, added 2,000 jobs in May, after seasonal adjustments.

The growth in manufacturing and professional services is encouraging because it's an indicator of underlying economic activity.

Overall, the private sector in Colorado has created jobs at an annual rate of about 0.8 percent so far this year, compared with a loss of 1.5 percent last year. That qualifies as a slow rebound.

It looks like we're over the hump.

WHERE HAVE ALL THE REALTORS GONE??

Some of our friends and clients have mentioned that there seem to be fewer Realtors active in our community, since the recession started. Well, their observations are correct. Many of our local Realtors have decided to cut back or retire, as a result of our lagging housing market. .

Fortunately, thanks to our loyal clientele, we have been able to weather the storm and are still very active in the market. What's the secret to succeeding in a down real estate market?

Actually, there is no secret. It's just a matter of earning client loyalty by being committed to advancing your interests and following a few effective rules for offering the best service available.

Some of our 'Rules' for dealing with our clients are: 

• Listening carefully to make sure YOUR objectives are understood
• Explaining the home selling process thoroughly
• Pricing your home correctly
• Helping you stage your home correctly
• Implementing a proven marketing plan
• Making every effort to sell your home promptly
• Generating and following-up on leads
• Communicating consistently, so you know what to expect
• Networking with the entire broker population regarding your property
• Diligently tracking the closing process on the sale of your home

It also helps that we have over 39 years of experience in our local market and have first-hand knowledge of every neighborhood in the Pikes Peak region. We also have good working relationships with every lender, appraiser and service provider in the area and, because of our background in the relocation industry, are able to assist our clients with any out-of-state questions and problems.

It just goes to prove that, "The harder your work, the luckier you get". 

Give us a call at 598-3200, or, 800 677-MOVE (6683) and we'll show you what we mean.

THE COLORADO SPRINGS BUSINESS JOURNAL

MAKES A GREAT PITCH FOR OUR CITY

The Colorado Springs Business Journal, in partnership with the Colorado Springs Regional Economic Development Corporation, the Colorado Springs Chamber of Commerce and the Colorado Springs Convention and Visitors Bureau, has just published a beautiful business development and relocation guide for Colorado Springs.

The 91 page guide features articles about our local attractions, events and statistics about the region. It covers such topics as History, Socioeconomic, Government, Top 100 Primary Employers, Fortune 500 Companies, Business Resources, Sports, Housing and a broad variety of data about our city.

From time-to-time, we will publish some of the fascinating information that is contained in the guide. For example:

             Population of El Paso County in 1995                469,693

            Population of El Paso County in 2010                622,263

             Median Household Income in Colorado Springs  $53,359

            Median Household Income in El Paso County     $56,570

To obtain your copy of this fact-filled guide, contact the Colorado Springs Business Journal at 719 634-5905, or, on the web at www.csbj.com.

NAR URGES YOU TO HELP PROTECT YOUR ACCESS TO AFFORDABLE MORTGAGES

On Thursday, June 23, 2011, we received notification from the National Association of Realtors that, effective September 30, 2011, the Federal Housing Administration will significantly decrease its loan limits. This change will make mortgages more expensive for households nationwide.

The problem with this change is that private investors have not yet returned to the housing market and FHA and GSE mortgages together continue to constitute the vast majority of home financing available today, which makes it particularly crucial to maintain the current limits. Lowering the loan limits at this critical stage in our recovery will leave credit-worthy borrowers without access to affordable financing and will prolong our housing crisis.

Nationally, the decrease in loan limits will cost homebuyers more than $68,000 and will apply to over 669 counties in 49 states. This reduction in loan limits will negatively affect Buyers, Sellers and Lenders and will drastically reduce the number of homes sold.

In El Paso County, Colorado, for example, this change means that the FHA limit on loans will drop from $325,000 to $271,050, a decrease of $53,950.

Considering the fragile state of our current housing market and the importance of the housing market in leading the entire economy of the country, it does not make sense to make the purchase of housing even more expensive than it currently is.

To avoid the disastrous effects of this change by FHA, H.R. 1754 has been introduced in the House of Representatives by Reps. Miller (R-CA) and Sherman (D-CA) to make our current loan limits permanent. NAR is urging all citizens to contact their congressional representatives and express their support for this Bill.

We believe that this change by FHA will make it more difficult to buy and sell homes, and we support NAR in their efforts to encourage public support for H.R 1754.

Click here to learn more about this change in loan limits

Click here to see how this change will affect you

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, please contact us. 

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

FROM YOUR I.T. DEPARTMENT

How to Make your I.T. Department Happy

01. When you call us to have your computer moved, be sure to leave it buried under half a ton of postcards, baby pictures, stuffed animals, dried flowers, bowling trophies and children's art. We don't have a life, and we find it deeply moving to catch a fleeting glimpse of yours.

02. Don't write anything down. Ever. We can play back the error messages from here.

03. When an I.T. person says he's coming right over, go for coffee. That way you won't be there when we need your password. It's nothing for us to remember 700 screen saver passwords.

04. When you call the help desk, state what you want, not what's keeping you from getting it. We don't need to know that you can't get into your mail because your computer won't power on at all.

05. When I.T. support sends you an E-Mail with high importance, delete it at once. We're just testing.

06. Send urgent email all in uppercase. The mail server picks it up and flags it as a rush delivery.

07. When the photocopier doesn't work, call computer support. There's electronics in it.

08. When something's wrong with your home PC, dump it on an I.T. person's chair with no name, no phone number and no description of the problem. We love a puzzle.

09. When an I.T. person tells you that he'll be there shortly, reply in a scathing tone of voice: "And just how many weeks do you mean by shortly?" That motivates us.

10. When the printer won't print, re-send the job at least 20 times. Print jobs frequently get sucked into black holes.

11. When the printer still won't print after 20 tries, send the job to all 68 printers in the company. One of them is bound to work.

12. Don't learn the proper term for anything technical. We know exactly what you mean by "My thingy blew up".

13. Don't use on-line help. On-line help is for wimps.

June 20, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

EL PASO COUNTY FORECLOSURE FILINGS FALL 33%

New foreclosure filings and foreclosure sales at auction continued to fall in May across the state and in El Paso County, according to a report released on June 14, from the Colorado Department of Housing.

While the state saw a 24% decline in May foreclosure filings year-over-year, El Paso County had a 32.5% drop. That's welcome news.

Foreclosure sales at auction dropped 12.2% in El Paso County and by 20% statewide.

Foreclosure sales at auction are at a 26-month low and, statewide, new filings are the lowest they've been in four years, according to the report.

Some experts estimate that, at the present rate, it will take another three years to get through all of the homes at risk of foreclosure, but, based upon these current numbers, the worst of the crisis seems to be over.

AREA EMPLOYERS ARE OPTOMISTIC

Colorado Springs area employers are the most optimistic about their hiring plans than they have been in nearly three years, according to a quarterly employment survey by temporary-staffing giant Manpower.

It's quite a turnaround for the Springs, which just three months ago was ranked among the nation's worst job markets.

The percentage of local employers adding staff exceeds the percentage planning cutbacks by more than double, with 26% hiring and 12% making cuts during the July-to-September quarter. This is the most upbeat employment outlook for the area since the final quarter survey of 2008, which was taken just before the financial crisis hit.

In this latest survey, the Springs is tied with Denver and 10 other cities for the 34^th -best among the nation's 100 largest metropolitan areas. Three months ago, the Springs tied with three other cities for the nation's eighth-worst outlook.

Things are definitely looking up.!!!

KEYBANK TAKES THE LEAD IN OFFERING AN EXCITING NEW LOAN FOR HOMEBUYERS

KeyBank has announced the introduction of the KeyCommunity loan, which offers prospective HomeBuyers with good credit, but little cash, the opportunity to buy their new home with only $500 down.

Some of the program details are: 

• Borrowers need only $500 upfront
• Satisfactory 12 month rental history at 100% LTV, or, no-rental history at 95% LTV
• Seller contributions max 3%
• 620 FICO Score - 100% LTV
• 600 FICO Score - 97% LTV
• No Credit Score - 100% with 4 alternate tradelines (24 months history) and satisfactory rental history
• Debt to Income Maximum 42%
• 2 year employment history
• 1 month reserves (PITI)
• Manufactured homes also eligible at lowered LTVs
• Max Loan Amount - $417,000

We are very pleased to be able to work with our clients to obtain this new concept in financing. It addresses the widespread need for financing assistance to credit-worthy Borrowers who can afford the payments on new home, but may be strapped for cash.

Call us about this program at 598-3200, or, 800 677-MOVE (6683).

WHAT'S THE BOTTOM LINE FOR BUYERS AND SELLERS IN OUR CURRENT MARKET?

The fact is that First-Time-Buyers make-up a huge percentage of all home sales. As these First-Time Buyers enter the market, they help to push current Homeowners up the ladder, by providing them with the funds necessary to move up.

This market-dependence on First-time Buyers is demonstrated by the fact that 57% of all home sales are for homes under $200,000 and 82% of all home sales are for homes under $300,000. This data reflects the fact that First-Time Buyers usually buy in at the low end of the market. It also emphasizes the fact that, if a Seller has a home worth more than $300,000, he/she will attract only 18% of prospective Buyers.

So, if you're a Seller in today's market, and your home is priced under $300,000, you should aim at the First-time Buyers.

If, on the other hand, your home is worth more than $300,000, you have to understand that the selling process may take longer than you expected. Give us a call to discuss this.

Here's some good advice for Sellers:

3 Tips for the Home Seller

Sellers are steeling themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready.

For first-time sellers who have never been through the process before, it's a different world. One where the value of the house isn't measured in the profit made on the sale, but by the enjoyment the owners had from living in the home. .and by the opportunity to Sell Low and Buy Low.

Here are three things experienced sellers would tell you, if they could.

Price it realistically from the start

Your largest number of showings will occur in the first two to three weeks. One reason: The multiple listing services and the Internet tend to drive the majority of showings. Many buyers are plugged in electronically. So the minute something new pops up that meets their criteria, they want to see it.

Take advantage of that sweet spot by pricing the house competitively right out of the gate.

Be prepared to lose some money now, but make up for it when you buy

Want to sit with a house that won't move, waiting for what you think your house is worth?  In today's market, the tax assessor's estimate or whatever you paid a few years ago doesn't matter. Be prepared to take less on the sale of your present home, and make up for the loss by getting a great deal on your new, move-up home. Or, you can just hold out for a couple of years, waiting for prices to "come back". But, if you do, be prepared to lose out on the kind of deals you could get today if you bought right now..

As the old ad used to say, "Pay me now, or, pay me later".

The truth is that your house is worth what buyers are willing to pay. No more.

Your best guide will be an experienced Realtor who can show you comparables when setting your asking price. Selling prices, not asking prices should be your guide. Asking prices are simply wish lists. Selling prices are reality. Call us.

Who are you trying to sell to?

You also have to consider who your most likely buyers are for what you're selling and cater to that group of people. Will your prospective Buyer be a 20-something, or a downsizing empty nester?

Here, again, we can help you analyze your neighborhood's current history to help you aim at the appropriate pool of potential Buyers.

Don't forget to smile for the camera

Don't neglect the modern version of curb appeal. Does you home look like a place that Buyers would like to live in? Use lots of photos on your real estate listing's website. You will need a good number of clear, well-lit, professional-quality pictures that show your house at its best.

Finally, if, as a Seller, you are discouraged by the competitive nature of our present market, be consoled by the fact that Colorado Springs is much better off than most other parts of the country. We have consistently outperformed most of the other 153 largest metropolitan area of the country and we are one of the most envied cities in the U.S. Click here to see how we are selling ourselves to the rest of the country.

For Buyers, the bottom line is that the iron is red hot, so strike now. Low-prices, large inventory, great financing packages and wonderful opportunities for Investors make this a true Buyers' market. Let us show you how an investment in today's Colorado Springs' real estate market makes a lot of sense and could well be your transition to a rewarding life now and a foundation for comfortable retirement.

 Call us at 598-3200, or, 800 677-MOVE (6683).

 Remember, today is better than yesterday and tomorrow looks like it will be great.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, please contact us.

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

JOKE OF THE WEEK

A carpet layer had just finished installing carpet for a lady. He stepped out for a smoke, only to realize he'd lost his cigarettes.

He went back in and in the middle of the room, under the carpet, was a bump. "No sense pulling up the entire floor for one pack of smokes," he said to himself.

He got out his hammer and flattened the hump.

As he was cleaning up, the lady came in. "Here," she said, handing him his pack of cigarettes. "I found them in the hallway."

"Now," she said, "If only I could find my parakeet."