Real Estate Information Archive

March 7, 2011

HARRY'S WEEKLY UPDATE 

NATIONALLY, PENDING HOME SALES DECLINED IN JANUARY

Pending home sales eased moderately for the second straight month in January, but remained 20.6 percent above the cyclical low last June, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator, declined 2.8 percent to 88.9. The index is 1.5 percent below the 90.3 level in January 2010 when the tax credit stimulus was in place. If contract activity stays on its present course, there should be an 8 percent increase in total existing-home sales this year.

Lawrence Yun, NAR chief economist, points to the broader trend. “The housing market is healing with sales fluctuating at times, depending on the flow of distressed properties coming on the market,” he said. “We should not expect the recovery to be in a straight upward path — it will zig-zag at times.”

“The broad fundamentals for a housing recovery are developing,” Yun said. “Job growth, high housing affordability and rising apartment rent are conducive to bringing more buyers into the market. Some buyers may be looking to real estate as a hedge against potential future inflation.”

 

THE LOCAL PICTURE

To get a clearer picture of how our local market is doing, Click here for the latest sales and listing statistics for the Pikes Peak area.

As you might notice as you examine the statistics, our local sales figures are pretty sad. The good news is that our sales numbers are still better than most other parts of the country. The bad news, however, is that the number of local residential real estate sales in February 2011 was the lowest in many years.

The number of home sales in El Paso County in February 2011 (404 sales) was down 21.7% from February of last year. However, the statistics also show a very encouraging trend. The average and median prices of those sales were up. (Average price in Feb.2011= $235,684, for an increase of +13.6% over Feb. 2010. Median price in Feb. 2011 = $190,457, for an increase of +4.6% over Feb. 2010). In fact, our annual 2010 rise in local values (5.2%) is outstanding, when compared with other parts of the country. (The national rise in value averaged only .2%.)

The breakdown of current sales also shows a significant preference for lower-priced homes. Of the 404 homes sold in El Paso County last month, 209 were sold for under $200,000 (52%). Houses between $200,000 and $300,000 accounted for 110 sales (27%). Only 85 sales were for homes over $300,000 (21%).

This is another example of how Fort Carson’s returning soldiers help our entire local economy. (They tend to buy low-cost houses when they return from overseas). It also points out that, if you are selling in the median-to-upper price range, you had better be prepared to price very aggressively and have your house in a “ready-to-move-in” condition.

One happy side-effect of these low sales figures is that, when sales are down, interest rates also go down (Because lenders have more mortgage money available). As a result, we can currently get 4.78% mortgages, but that won’t last long. Better act now!!!

Call us.

MORE AMERICANS CONFIDENT ABOUT HOME OWNERSHIP

Americans are more confident about the stability of home prices than they were at the beginning of 2010, according to Fannie Mae's latest national housing survey, conducted between October 2010 and December 2010. And when it comes to home ownership, younger Americans are particularly optimistic, the survey finds.

Nearly 80 percent of all respondents, including home owners and renters surveyed, said they thought housing prices would hold steady or increase over the next 12 months--which is up from 73 percent in January 2010. In fact, survey respondents expressed more confidence over the stability of home prices than they did about the overall strength of the economy. (Sixty-one percent said the economy is heading on the wrong track.)

Young Americans, Hispanics, and African-Americans were the most positive about their views on home ownership among the general population, according to the survey. Nearly 60 percent of respondents between 18-34 years old say that buying a home offers a lot of potential as an investment. Also, more than one-third of Hispanics and African Americans say they plan to buy a home within the next three years, compared to one in four of the general population.

Most respondents to the survey continue to lack confidence in the strength of the economic recovery, and they are less optimistic about their ability to buy a home in the years ahead. This sense of uncertainty is weighing on the housing recovery today and reshaping expectations for housing for the future.”

FATE OF FORECLOSURE PROGRAMS HEADS TO A VOTE

Republicans on the House Financial Services Committee said they will push for a vote next Thursday on bills that would end four government programs that are aimed at helping prevent foreclosures.

Among the programs on the chopping block include the Home Affordable Modification Program, which was created to help struggling home owners reduce mortgage payments by offering lower interest rates and longer repayment times. The Treasury Department recently acknowledged that HAMP will fall short of meeting its original goal. Instead of preventing 3 to 4 million foreclosures as planned, it’s expected to complete only 700,000 to 800,000 loan modifications.

Other smaller programs at risk are aimed at refinancing loans, helping unemployed home owners, and aiding state and local governments in buying foreclosed properties in order to sell or rent them.

Committee chairman Rep. Spencer Bachus, R-Ala., says the foreclosure prevention programs haven’t had much impact and, in some cases, actually are doing more harm than good in helping struggling home owners.

The Obama administration argues that killing the programs will hurt some home owners.

WITHOUT FANNIE AND FREDDIE, THE 30-YEAR MORTGAGE MAY FADE AWAY

How might home buying change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac?

If Freddie Mac and Fannie Mae were closed, homeownership in America could change greatly.

• The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product, housing experts on both sides of the political aisle say.
• Interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than customers in the suburbs.
• Lenders could charge fees for popular features now taken for granted, like the ability to “lock in” an interest rate weeks or months before taking out a loan.

Life without Fannie and Freddie is the rare goal shared by both the Obama administration and House Republicans, although it will not happen soon. Congress must agree on a plan, which could take years, and then the market must be weaned slowly from dependence on the companies and the financial backing they provide.

The reasons by now are well understood. Fannie and Freddie, created to increase the availability of mortgage loans, misused the government’s support to enrich shareholders and executives by backing millions of shoddy loans. Taxpayers so far have spent more than $135 billion on the cleanup. The collapse of Fannie and Freddie took with it the pretense that the government could do so at no risk to taxpayers. Some Republicans and Democrats say the price is too high. They want the government to pull back, letting the market dictate price, terms and availability.

Hanging in the balance are the basic features of a mortgage loan: the interest rate and repayment period.

Fannie and Freddie allow people to borrow at lower rates. The key to that success is the guarantee that investors will be repaid even if borrowers default — a promise ultimately backed by taxpayers. Fannie, Freddie and other federal programs now support roughly 90 percent of new mortgage loans because lenders cannot raise money for mortgages that do not carry government guarantees.

Fannie and Freddie also allow borrowers to repay loans with fixed-interest rates over an unusually long period. A person who borrows $100,000 at 6 percent interest will pay $600 each month for 30 years, compared to $716 each month for 20 years.

Some experts say that one of the reasons that American housing finance is in such bad shape right now is the 30-year mortgage. Such loans are not available in most countries.

Fannie and Freddie also allow a wide swath of the American public to borrow money at the same interest rates and on the same terms. Borrowers who did not meet their standards were forced to pay higher interest rates to subprime lenders, but the companies essentially persuaded investors to treat a vast number of American families as if they were interchangeable.

They took messy bunches of loans, with risks as variable as snowflakes, and created securities of uniform quality, easy to buy and sell. The result was one of the most popular investment products ever created. And in its absence, experts on housing finance say that fewer borrowers would qualify for the best interest rates.

Fannie and Freddie slashed the requirements for down payments in recent years. Two-thirds of the borrowers whose loans were guaranteed by the companies from 1997 to 2005 made a down payment of less than 10 percent. But borrowers who invest less default more often. The Obama administration has said that it wants the companies to demand a minimum down payment of 10 percent.

A quirkier example is the ability to “lock in” an interest rate. Fannie and Freddie permitted lenders to make such promises at no risk because the companies had already obtained commitments from investors. In the companies’ absence, borrowers seeking rate locks may need to pay for them.

WINTER MONTHS CAN OFFER GREAT TIME TO SELL

Winter’s harsh weather certainly can bring a curve ball to selling, but some savvy Buyers and Sellers are finding it a good time to do business. That’s because the real estate market tends to be smaller in the winter, and buyers and sellers tend to be more serious and motivated about making a deal.

Winter can be a buyer’s market. They can usually get a better price, because there are not as many buyers in the market. Plus, buyers may be able to get quicker action on their mortgages since lenders aren’t dealing with as many applications.

If a house is on the market in the winter, the seller is usually extremely motivated. Sellers tend to be more flexible and the prices more affordable.

However, the common weather-related winter obstacles are often still there: The house often lacks curb appeal, icy sidewalks, and snowy driveways.

But, when buyers come out in rougher weather, you know they are serious and motivated.

HOWEVER, SELLERS NEED TO GET PRACTICAL ABOUT PRICE

Sellers whose homes have lingered on the market for months--or years, in some cases--are banking on this spring to turn the tide.

Foreclosures and short sales are still flooding the market, which means many sellers are still up against big inventories and some big bargains that may pull away buyers.

As such, more real estate pros say it’s time to have tough conversations with sellers about slashing their sales price of their home, particularly if it hasn’t garnered any traffic in recent months or years. After all, spring usually brings out more buyers, as home shoppers look to buy and move before the next school year.

Experts suggest sellers check out the competition by visiting open houses or viewing online virtual tours of similar homes for sale to see how the seller’s house compares in price and appearance.

Sellers have to be very realistic about what is keeping their home from selling. "Sometimes it may actually be the person in the mirror, if your expectations are not realistic. Ultimately, there is a price at which all things sell.

4 RED FLAGS THAT SEND BUYERS RUNNING

How you present a listing online and the words you choose to describe it may be turning off some buyers. Bankrate.com recently asked real estate professionals to weigh in on what listing red flags are turning off their buyers.

1. No photos. One red flag in many buyers' eyes is the lack of photos for a listing. There can be some legitimate reasons for few (or no) photos in a listing: The sellers want privacy, or they have valuables they don't want in the photos. But many would-be buyers--rightly or wrongly--assume that there's something wrong. Sellers should have about a dozen photos for listings and photos that match the home’s description and showcases its best features.

2. Outlandish claims. Referring to the listing as “the best property on the market” might not be a good idea. Some buyers may be turned off to begin with and some will inevitably be disappointed if the claim doesn't live up to their expectations. Instead, focus on adjectives that are flattering to the property but leave some room for interpretation.

3. Priced too low. You want to price the property competitively but pricing too low may make some buyers suspicious or attract unqualified buyers. Typically, multiple buyers will be attracted to the low asking price and eventually the sales price will climb close to market value as competing offers bid up the price. However, the strategy is not without risk in that some buyers will be alienated by a potential bidding war.

4. Listing a property “as is” in the description. That’s not a deal breaker but when you see “as is” in a listing, buyers might be cautious. Some buyers take the “as is” phrase as the "previous owners stole everything including the kitchen and bathrooms. Most contracts state 'as is' anyway, but some agents restate that in the listing, which is a disservice to their sellers.


LEADING real estate COMPANIES OF THE WORLD MEET IN LAS VEGAS

This week, we will have the opportunity to speak with relocation experts from around the world at the Leading RE national conference in Las Vegas. This organization has over 5000 offices with more than 150,000 sales associates in over 30 countries around the world. It will be a great opportunity to learn about the current real estate market worldwide. We will report to you in next week’s eNewsletter about the international trends and how they will affect our local market.

JOKE OF THE WEEK

The Society of Adults, a non-profit group, in an effort to reduce the level of whining that now bombards our society, has requested that parents post the following Rules of Life in the bedrooms of all of their children.

Rules of Life

 Rule 1:

Life is not fair; get used to it.

Rule 2:

The world won't care about your self-esteem.

The world will expect you to accomplish something BEFORE you feel good about yourself.

Rule 3:

You will NOT make 40 thousand dollars a year right out of high school.

You won't be a vice president with a car phone until you earn both.

Rule 4:

If you think your teacher is tough, wait till you get a boss.

He doesn't have tenure.

Rule 5:

Flipping burgers is not beneath your dignity.

Your grandparents had a different word for burger flipping;

they called it opportunity.

Rule 6:

If you mess up, it's not your parents' fault,

so don't whine about your mistakes.

Learn from them.

Rule 7:

Before you were born, your parents weren't as boring as they are now.

They got that way from paying your bills, cleaning your clothes,

and listening to you talk about how cool you are.

So before you save the rain forest from the parasites of your parents' generation,

try delousing the closet in your own room.

Rule 8:

Your school may have done away with winners and losers but life has not.

In some schools they have abolished failing grades.

They'll give you as many times as you want to get the right answer.

This, of course, doesn't bear the slightest resemblance to ANYTHING in real life.

Rule 9:

Life isn't divided into semesters.

You don't get summers off, and very few employers are interested in helping you find yourself. Do that on your own time.

Rule 10:

Television is NOT real life.

In real life people actually have to leave the coffee shop and go to jobs.

Rule 11:

Be nice to nerds.

Chances are you'll end up working for one.

February 21, 2011

HARRY’S WEEKLY UPDATE

 A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

NAR CHIEF ECONOMIST IS BULLISH ON COLORADO SPRINGS

Harry Salzman and Lawrence Yun at the PPAR meeting

On Wednesday, Feb.16, 2011, Lawrence Yun, chief economist of the National Association of Realtors, spoke to a PPAR meeting of about 325 local real estate agents and business leaders at the Crowne Plaza Hotel. His main message was that businesses that are now sitting on loads of cash need to start spending money and creating jobs to help the now-stabilized housing market continue to improve.

In a wide-ranging overview of the nation’s economic problems, the state of the economy and his outlook for 2011 and beyond, Yun said:

• For now, the housing market is “bouncing along the bottom,” a term economists use to describe market conditions that have reached their low point and are poised for a rebound.

• National prices have stabilized and there should be no “meaningful change” in home values in 2011 or the next few years.

• Long-term mortgage rates will rise to 5.5 percent this year and tick upward to 6 percent in 2012.

• Some homebuilders have had difficulty obtaining financing, and a lack of new construction could actually lead to a housing shortage in the next few years.

• Rising apartment rents will prompt many renters to consider, considering the tax deductions available to property owners, whether they might be better off purchasing a home, rather than renting.

• Some 2 million jobs will be created in the next few years, yet unemployment will remain at 9 percent this year and won’t decline to 6 percent until 2015.

• Doing away with the homeowner mortgage tax deduction would deal a major blow to the housing industry — slowing sales and reducing values. The Obama administration again proposed this week to curtail the deduction; Yun expects Congress to reject the proposal.

• Loose lending standards and exotic loans were the primary cause of the national housing downturn. Traditionally, homebuyers moved into so-called starter homes and established equity before moving up. But before the recession, underwriters only wanted to know if a buyer “had a heartbeat” before approving half-million-dollar home purchases. Now, however, the pendulum has swung too far the other way, Yun said, and homeowners are having difficulty obtaining loans.

Dr. Yun stated that there are several basic reasons why Colorado Springs has shown so much strength in the recovery from the recession:

1. The housing bubble that burst in Colorado Springs was much more moderate than other cities.  
2. A large percentage of our local economy is strengthened by salaried military and governmental workers.
3. We have a large available pool of high-tech workers
4. Local businesses are empowered to make their own business decisions
5. The economic recovery of the entire state has helped our local recovery
6. Compared with other regions, the educational level of our entire local population is way-above average.

CLICK HERE If you would like to view a short slide presentation of Mr Yun’s comments about Colorado Springs. If you would like to see a video of Mr. Yun’s entire presentation, or view a PowerPoint presentation of his entire talk, simply click here 

EL PASO COUNTY PROPERTY TAXES WILL BE LOWER IN 2011, CAUSING A DECLINE IN TAX REVENUES (From the Gazette)

Declines in real estate values mean tax relief is on the way for El Paso County property owners. But so are financial headaches for the various government entities — cities, school districts, the county and others — that rely on revenues generated by property taxes.

For the first time in 20 years, property values in El Paso County have fallen in all categories, said County Assessor Mark Lowderman. By the end of this month, his office will finish conducting property reappraisals of 260,000 parcels, including homes, apartment buildings, vacant land, office space, industrial buildings and retail sites.

2011 property taxes aren’t due until next year, but around May 1, property owners will receive notices of valuation from this reassessment cycle. The assessed value of residential property is based on home sales in the county from July 1, 2008 to June 30, 2010, a period of turmoil for the real estate industry. 

“We’re finally starting to address the declining market, and in May, people will get notices to that effect,” Lowderman said.

Overall, he predicts an average 15 percent reduction in value among all categories of properties.

The fact that property values have fallen isn’t news — it’s been known for years that, because property taxes lag current market conditions, reduced values, and thus revenue losses, were coming.

“These are things that were projected,” said Fred Crowley, a researcher and professor at the University of Colorado at Colorado Springs and director of the Southern Colorado Economic Forum. 

“It’s unfortunate that everyone is losing economic value as a consequence to bad loans that originated on Wall Street. This is not a people problem; it’s something the financial markets caused,” he said.

But preliminary findings indicate the next several years could be even more difficult for public entities than imagined. 

The assessor’s office reappraises property every other year. Since the early 1990s, local residential property values have experienced double-digit increases, Lowderman said, with an average increase of 10 percent to 12 percent over each two-year assessment cycle.

This year is what Lowderman describes as “attention getting.” Early results for the 2011 reassessment show that residential property has dropped in value 5 percent to 25 percent since the last reappraisal in 2009.

Some pockets, primarily areas on the eastern plains with manufactured and mobile homes, are experiencing dramatic decreases of 40 percent or more, Lowderman said.

Crowley calls that number “startling,” and said school districts on the eastern plains could face serious financial issues in the coming years.

School districts rely heavily on property tax revenue, Crowley said; for some it constitutes up to 65 percent of their revenue. Of the $461 million being collected this year for 2010 property taxes, local school districts will collectively receive $318 million, or 69 percent of the total revenue.

The highest property value declines are in neighborhoods with the largest amounts of foreclosures and short sales, which discount property prices at sale time. But Lowderman said his office takes into account conditions of properties, so as to not unfairly skew a neighborhood assessment.

The southeast portion of Colorado Springs is one of the hardest hit, Lowderman said, in neighborhoods such as Stratton Meadows, Park Hill and Deer Field Hills, along with starter-home neighborhoods, such as Stetson Hills, in the northeast. But high-end developments aren’t immune. For example, Cedar Heights, to the west, is showing sizable declines in home values, he said.

Property owners will benefit with lower tax bills in 2011, and likely through 2015 because reappraisals done in 2013 will reflect the market conditions of the latter half of 2010 and 2011. Crowley said he doesn’t expect much commercial or industrial construction for the next several years, and Lowderman predicts a wave of commercial foreclosures, both of which will lower property values.

“So many people are out of work or underemployed, so some relief on their property taxes is going to be very welcome,” Lowderman said.

If a property owner has a 25 percent reduction in property value, and the mill levy assessed remains constant, that will equate to a 25 percent reduction in property taxes due next year.

Property owners can appeal their valuations May 2 through June 1, by phone, fax, e-mail or in person at the assessor’s office. The assessor’s office typically receives 5,000 to 6,000 appeals, Lowderman said, and adjusts about half of them. But in 2009, his office fielded 10,000 appeals, primarily because property values were not reflecting current market conditions.

“We had to explain that we weren’t nuts and that there’s a two-year time lag,” he said. “I don’t know what to expect this year — we haven’t been down this road in so long.”

Using actual data from our MLS, Salzman real estate Services, Ltd. has established that the local, average home sales price dropped from $256,829 in 2008 to $237,318 in 2010. (-7.6%) The median home sales price dropped from $223,000 in 2008 to $205,000 in 2010. (-8%). Keep in mind, however, that different neighborhoods and areas within the county can vary much more than 7-8%.

When you receive your new assessment from the county (around May 1), please give us a call to discuss it. We may be able to assist you in filing for a lower assessment, based upon MLS records for your neighborhood. In past years, we have assisted many of our clients and friends by providing documentation which resulted in lowering their assessments. We would be pleased to help you with this process. Call us.

WHY YOU SHOULD BUY THAT HOME NOW

• The Colorado Springs real estate market is already starting to appreciate. (+5.2% last year, as compared to the national average of .02%).
• Mortgage interest rates are starting to go up
• In October, the maximum size of mortgages backed by Fannie Mae and Freddie Mac will shrink
• Mortgages backed by Freddie and Fannie will get more expensiveby 0.25% to 0.50%
• Later this summmer,The Consumer Financial Protection Bureau could make the process of originating mortgages more expensive for the lender by requiring, for example, more personnel to check documentation. These costs will be passed along to borrowers.
• Premiums for FHA-insured loans will be going up by 25 basis points in April. The hike comes out to an extra $250 per $100,000 of mortgage per year. Additional increases have been proposed.
• Down payment requirements for Fannie and Freddie could rise from 5% to 10% if current proposals from the government are approved. Some officials are even calling for 20% down payments.
• Credit scores required for mortgages are getting tougher

As Barry Zigas, director of housing policy at the Consumer Federation of America points out, "In most markets, there's no reason to delay waiting for something better to coma along - It probably won't".

Call us !!!

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak Region.

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, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

Hello?"   "Hi honey. This is Daddy. Is Mommy near the phone?

"No Daddy. She's upstairs in the bedroom with Uncle Paul."

After a brief pause, Daddy says, "But honey, you haven't got an Uncle Paul."

 "Oh yes I do, and he's upstairs in the bedroom with Mommy, right now."

Brief Pause. "Uh, okay then, this is what I want you to do. Put the phone down on the table, run upstairs and knock on the bedroom door and shout to Mommy that Daddy's car just pulled into the driveway."

"Okay Daddy, just a minute."

A few minutes later the little girl comes back to the phone. "I did it Daddy."

"And what happened honey?" he asked.

"Well, Mommy got all scared, jumped out of bed and ran around screaming. Then she tripped over the rug, hit her head on the dresser and now she isn't moving at all!"

"Oh my God!!! What about your Uncle Paul?"

"He jumped out of the bed , too. He was all scared and he jumped out of the back window and into the swimming pool. But I guess he didn't know that you took out the water last week to clean it. So he hit the bottom of the pool and I think he's dead."

***Long Pause*** ***Longer Pause*** ***Even Longer Pause***

Then Daddy says, "Swimming pool? ............Is this 486-5731?"

Feb.14, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET 

HOUSING AFFORDABILITY IN COLORADO SPRINGS IS GREAT !!!!

In 2010, home prices for lower-priced homes in Colorado Springs appreciated, but the prices for higher-priced homes remained fairly steady. The good news is that, according to the recently-released NAR report on nationwide residential sales for 2010, Colorado Springs real estate is appreciating faster than the national average.

In the fourth quarter of 2010, the median existing single-family home price rose in 78 out of 152 metropolitan statistical areas. Lawrence Yun, NAR Chief Economist, is encouraged by the trend. “Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to enter the inventory pipeline, they’ve been selling well and housing supplies have trended down”, he said. “A recovery to normalcy requires steady trimming of the inventories”. Yun also noted that housing growth and jobs growth feed on each other. When one goes up, so does the other.

To be specific, the report shows that, out of the 152 major metropolitan areas included in the survey, our city showed a significant increase in median home prices. …better than almost any other city in the U.S.

Here are some impressive figures:

             Colorado Springs median home price in 2009 was $189,800

            Colorado Springs median home price in 2010 was $199,600

            The national  median home price in 2010 was $170,600

Translation: Our home prices appreciated more than the national average and, in 2010, they went up 5.2%. That’s outstanding. If you would like to see the complete report, CLICK HERE.

To bring these numbers down to our local market, if you’re a Buyer or a Seller, you should be aware that, in 2010, 82% of Colorado Springs home sales involved homes priced under $299,000. That’s a significant figure.

For Sellers, it means that, if your home is priced over $299,000, you are facing a slow market. There are few Buyers out there, but there are thousands of Sellers in your price range and they are all trying to attract the attention of those few Buyers. Concentrate on making your home outshine your competition and be ready to aggressively negotiate your price.

If your home is priced under $299,000, be aware that there are lots of Buyers out there, but you have lots of competition for their attention. Today’s “savvy” Buyers are looking for “deals”. Again, make your home as attractive as possible and be ready to negotiate your price.

For Buyers, the bottom line is – It’s your market. Even with the recent rise in interest rates, you can make some great deals, regardless of the price range.

Even with the recent rise in interest rates to over 5%, there are wonderful deals still available out there. You should think about buying an investment property.

Call us.

SPEAKING OF OUR LOCAL real estate MARKET, LAWRENCE YUN, CHIEF ECONOMIST OF THE NATIONAL ASSOCIATION OF REALTORS WILL DO JUST THAT

On Wednesday, Feb. 16, 2011, the Chief Economist of the National Association of Realtors will speak at the Crowne Plaza Hotel in Colorado Springs, from 9am to 11am and we will be there. Mr. Yun appears frequently on financial news shows and at real estate conferences. USA Today recently listed him among the top 10 economic forecasters.

Mr. Yun will undoubtedly address the outstanding performance of our local real estate market over the past year. We will give you a report on his presentation in next week’s enewsletter.

AS RATES RISE, SHOULD THE GOVERNMENT GET OUT OF THE MORTGAGE-BACKING BUSINESS ?

WSJ Fri. Feb 11, 2011 – Rates rise above 5% for the first time since last spring. The latest rate for 30-year, fixed-rate mortgages is 5.05%.

This rate increase reflects positive news: Rates are rising because there are signs that the recovery is strengthening. As the economy gains steam, investors demand higher rates to compensate for an expected uptick in inflation. And, if the economy can generate stronger job and wage growth, higher rates may not be a problem for housing. By at least one measure, housing affordability has returned to its levels before the housing boom collapsed. The run-up has been unusually swift. The national average mortgage rate has jumped to more than 5% from a record low of 4.17% in just three months, according to Freddie Mac data. The rise should kick people who have been sitting on the fence into some immediate action.

In response to these developments, on Feb. 11, 2011, the administration unveiled a plan to wind down mortgage giants Fannie Mae and Freddie Mac. This would result in higher borrowing costs and more limited access to home loans for consumers.

Treasury Secretary Timothy Geitner stated that establishing a new system could take five to seven years. “This is a plan for fundamental reform of the housing market”, Geitner said.

The government took over Fannie Mae and Freddie Mac 2 ½ years ago. So far taxpayers are on the hook for $134 billion, and the bailout is likely to be the most expensive legacy from the 2008 financial crisis. Last year, the two agencies accounted for nine in ten new loans.

The political debate regarding the phase-out of Fannie Mae and Freddie Mac has generated three main options for what would replace the two programs: 

1. The first option would place the vast majority of the mortgage market in the hands of the private sector, with no government backing.
2. The second option would also place the mortgage market in the hands of the private sector, but with limited government backstop.
3. The third option would be to create new, privately-owned companies to buy mortgages from banks and sell them as securities.

The discussions that these options will generate will help the administration build consensus around one option and may help build the case for some kind of continued government backstop for mortgages.

The proposed administration plan also calls for:

• Gradual increases in minimum down payments to 10%
• Mortgage-guarantee maximums would reduce to $625,500 from $729,750
• Banks would be required to hold more capital and establish more conservative underwriting standards that require homeowners to hold more equity in their homes
• Reduce the role of FHA and increase fees.

The bottom line for the public is that Washington seems to agree the present system doesn’t work very well and it is willing to discuss establishing a new system that would protect the homebuyer, the taxpayers and the economy from another mortgage crisis.

HOLD ON, PARDNER ! MAYBE THE GOVERNMENT SHOULDN’T GET OUT OF THE MORTGAGE-BACKING BUSINESS. …AN OPPOSING VIEW

On Feb. 9, 2011, in the NAR blog, “Voices of real estate”, Ron Phipps, 2011 NAR President, posted the following comments:

“Later this week, the Treasury Department will issue a report recommending changes to the structure of Fannie Mae and Freddie Mac.  This is the latest development in a years-long debate over what the government’s role in housing should be.

As REALTORS®, we know better than anyone else just how vital housing is to families and to our nation.

Fact:  For every additional 1,000 home sales, about 500 jobs are added to the economy.  Those are real jobs that give our families, friends and neighbors a chance to work.

Fact:  Every home purchase pumps $60,000 into the economy.

Fact:  Housing accounts for more than 15 percent of the national gross domestic product.

Fact:  Home owners pay 80 to 90 percent of ALL federal income taxes.

We need to change the dialog.   Critics say housing is a drain on federal resources.  We know better.  Housing is the engine that drives our national economy. Eight of the last ten recessions have ended as a result of robust housing markets.  The other two ended as a result of war spending.  The choice is easy.  America needs a healthy housing market to thrive. 

In the days ahead, NAR will be reaching out to Congress and the White House to emphasize the clear connection between housing, jobs and the economy.  Rather than limit support for housing, and the availability of credit, NAR is calling on Congress and the White House to advance policies that will move the housing market back to a healthy 5.5 million sales, where it SHOULD be. 

We will be asking lawmakers to:

• Preserve the mortgage interest deduction at current levels.
• Move the credit pendulum to equilibrium, defined by a median credit score of 720.
• Maintain government backing in the mortgage market as part of GSE Reform.

These three steps would help bring the housing market back to a normal level, possibly generating an additional 1 million home sales and 500,000 jobs.   

As the voice for real estate, we hope that Congress and White House gets the message:  Real Estate is all about jobs.”

Signed,

Ron Phillips, NAR 2011 President

O.K., readers. What do you think??

MORTGAGE –SHMORTGAGE ….SOME PEOPLE ARE PAYING CASH !!

The Wall Street Journal (Tues. Feb. 8, 2011) reports on an interesting phenomenon that is occurring in real estate markets around the country ….the rise of all-cash deals. In some of the country’s most troubled housing markets, cash-buyers are accounting for more than half of the transactions. (In 2006, all-cash deals represented only 13% of sales).

Obviously, Investors with cash are seeing great opportunities to acquire income properties at low prices. They are figuring that they can refinance later, when the market improves.

For some time now, this “Buy low and Rent” opportunity is something we have been urging our clients to consider. With the rise in foreclosures, the pool of new renters has expanded and occupancy rates have risen.

Call us.

GOOD NEWS – LOCAL SALES TAX COLLECTIONS ARE UP AGAIN !!!

The Gazette reports (Friday, Feb. 11, 2011) that Colorado Springs sales tax collections in January rose 2.77%. It was the 15^th consecutive month of year-over-year gains. Sales tax collections ended 2010 up 6.07 percent over the year before.

According to Fred Crowley, Chief Economist for the Southern Colorado Economic Forum, this rise in collections is one sign that people are feeling more comfortable with their job status. He also stated, ““Since use tax collections and sales of business equipment are strong, it is clear that businesses are investing in equipment, rather than people”.

The bottom line is that our local economy is recovering from the recession, but slowly.

As we have said so often in previous eNewsletters, our full recovery will depend upon jobs, jobs, jobs, so be sure to vote in the upcoming city elections. Jobs depend upon leadership and leadership starts at the top.

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, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

LATEST STATISTICS

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

JOKE OF THE WEEK

For those of you who remember Henny Youngman, here’s a few of his one-liners that still ring true:

• real estate people always try to put the best light on everything. One of them tried to sell me a “Robin Hood” house. I asked him what that was and he said, ”It has a Little John”.
• But, I do have to admit my house is in a very lovely area. It’s two feet from the water ….in any direction.
• I’ll say one thing for the recession. It’s bringing the generations together. Junior still won’t get a haircut,  …and now I can’t afford one.
• And a recession brings out the compassion and the deep human feelings within us all. For instance, I now do something with my old clothes that I never did before …I wear them.
• But, my brother says there’s no recession, if you have the right business in the right place. He owns a carwash in Capistrano.
• Trying to make a profit today is like being a pickpocket in a nudist colony.
• I’ll tell you how bad things are getting. Bankruptcy court just applied for an unlisted number.

 And of course, we couldn’t leave out Henny’s classic line

•  Now, take my wife ….Please   (Just kidding, Dear.)

February 7, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

SELLERS – TAKE A LOOK AT YOUR COMPETITION

The Pikes Peak Association of Realtors just released a new monthly report which shows the “Active Listings for Single Family/Patio Homes”, as well as the “Sold Listings” for the previous month and the “Sold Listings” for the same month last year. The data should interest anyone who is trying to sell their home. Using the data reported, if you are currently listing your home for $299,000, let’s see what the numbers tell us: 

• There are currently 2,537 homes listed at, or below your listed price.
• Last month, there were 340 sales of homes listed at, or below your listed price. This means that only 13.4% of the homes listed in this price range sold in January.
• The good news is that, in January, sales of homes in your price range, or below, accounted for 83% of all sales, so the Buyers who are interested in your price range are out there. The trick is to get them to look at and buy your home, rather than the other 2,536 comparable homes which are competing for their attention.

If you are a Seller, these numbers tell us that you should not expect a quick, easy sale of your home. Rather, be prepared to negotiate, plan on an aggressive, competitive marketing campaign and don’t expect overnight results. Furthermore, if your home is listed for $300,000 or higher, keep in mind that only 17% of the potential Buyers out there might be interested in your home. Last month, for example, there were only 72 sales of homes over $300,000.

To see the complete report on Active and Sold listings, CLICK HERE.

As always, many of the determining factors that influence prospective Buyers are location, location, location, as well as the condition of the home, neighborhood, proximity to schools, etc., and we would have to visit with you to give you more specific recommendations about your listing, so, call us. We will be happy to help you design and implement an effective campaign to sell your home in this competitive market.

BUYERS – TAKE A LOOK AT THE POSSIBILITIES

The PPAR report listed above will also help Buyers make better purchasing decisions. It’s obvious that our current inventory of available homes is so large and our current sales are so slow that there is a large window for negotiation that is now open for Buyers. Let us help you make the best decision possible about your next home, or investment property. The opportunity to acquire investment real estate has never been better. Low prices, low interest rates, high occupancy rates, rising rents and a large pool of eager sellers all add up to the opportunity of a lifetime for smart Buyers.

One fact that prospective Buyers should keep in mind is that closing costs are negotiable. In an interview, Barry Zigas, director of housing policy at the Consumer Federation of America points out:

“There’s a lot of room for negotiating in the costs of closing and consumers should examine every charge and not hesitate to challenge them and try to bring them down. Closing costs can run anywhere from 3-6% of the price of the property. For example, in 2010, for a $200,000 home, the average closing costs were $3,741, an increase of nearly 37%, according to Bankrate.com.

Simply ask the lender which fees are negotiable and which fees are fixed. Ask, “Who is getting this fee and why am I being asked to pay it?”

As a matter of fact, this is an area where a good Realtor can save you a lot of money. As we cited in one of our previous enewsletters, we recently saved a Buyer approximately $2,500 in closing fees by simply switching to a more “customer-friendly” lender.

Call us and let’s discuss your ideas.   

A NEW MAYOR, A NEW COUNCIL, A NEW BEGINNING

For the first time in history, the citizens of Colorado Springs will have the opportunity to elect a city mayor. Until now, the mayor has been appointed by the City Council.

So that voters might get better acquainted with the candidates for the mayoral position, a moderated forum has been scheduled on March 1, 2011, 5:15pm at the Fine Arts Center. The forum will feature six mayoral candidates and will be moderated by Pam Shockley-Zalabak, Chancellor, UCCS. We urge all interested parties to attend this forum, to insure that we end up with the candidate who is most qualified to lead our city into the future.

To register for this event and to learn more about it, CLICK HERE.

See you there.

20^TH ANNUAL ECONOMIC FORECAST BREAKFAST

On Feb. 3, we attended the annual Economic Forecast Breakfast, sponsored by the Institute of real estate Management. The 5 presentations covered all aspects of our local real estate market and were very informative, but we thought the presentation on residential real estate might be the one that would be of specific interest to our readers.

Basically, residential sales in 2010 were down from 2009. Sales in the first half of 2010 looked fairly good, as a result of the federal tax credit for first-time Buyers. Sales in the second half of 2010 were slightly down, but selling prices were up.

The average number of “days on the market” for a $250,000 home went from 88 days during the first half of the year to 104 days in the second half.

New Listings in 2010 went from 18,561 in 2009 to 19,203.

Using historical demand as the measure, the inventory of homes under $250,000 would supply the market for 6 months (compared with 4 months one year ago). $350,000-$400,000 inventory is 8.5 months. $600,000-$700,000 inventory is 23.3 months. Homes over $1,000,000 had only 25 sales in the last half of 2010.

Comparing 2010 to 2006, we see sales down 32%. but rents were up 55%. Investors, take note.!!!

The brightest stars in the numbers were rentals. Average monthly rental went from $989 a month in 2006, to $1109 in 2010. That’s one part of the economy that has shown a profit in recent years.

We’re recovering, but slowly.

Jobs are still the key to recovery !! Let’s hope our new Mayor and City Council have that at the top of their priority list.

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak Region.

DAMN THE TORPEDOES, BUT DON’T DAM THE ICE

On Feb. 3, 2011, the Wall StreetJournal featured an article about the potential damage to local homes as a result of “ice dams”. Our recent cold snaps have aggravated the problem and we thought our readers might want to be aware of this problem.

Ice dams form when an under-insulated home’s heat escapes through the attic, warms the roof and melts snow. As water runs down the roof, it can refreeze into an icy dam along the overhang, which is cooler. If the dam gets big enough, it can then block water from running off the roof and force it back up under the shingles, triggering leaks and other damage. Icicles are one symptom of dams forming.

If you have ever had your roof replaced as a result of hail damage, you probably know that the insurance inspector who comes to inspect the roofer’s work will check to see that the roofer has installed an extra layer of protection under the bottom three or four feet of shingles, to prevent water from coming back up under the shingles. If you don’t know whether your home has this protective layer under the shingles, you might want to check it out yourself, or have someone check it out for you.

COMING SOON ……..

On Feb. 10, 2011, the National Association of Realtors will be releasing their report of home sales in all of the top 153 U.S. markets. We look forward to including that report in the next issue of our newsletter and we think you will be surprised and gratified to see how well Colorado Springs is doing, compared with the rest of the country.

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, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

TOP TEN ECONOMIST VALENTINES

10. YOU RAISE MY INTEREST RATE THIRTY BASIS POINTS WITHOUT A CORRESPONDING DROP OFF IN CONSUMER ENTHUSIASM
9. DESPITE A DECADE OF INFLATION, I STILL DIG YOUR SUPPLY CURVE
8. WHAT DO YOU SAY WE RE-MEASURE OUR CROSS-ELASTICITY
7. YOU BRING THE BUTTER, I'LL BRING THE GUN
6. LET'S RAISE HOUSING STARTS TOGETHER
5. FURTHER STIMULUS COULD RESULT IN UNCONTROLLED EXPANSION
4. TELL ME WHETHER MY EXPECTATIONS ARE RATIONAL
3. LET'S ASSUME A RITZY HOTEL ROOM AND A BOTTLE OF DOM
2. YOU STOKE THE ANIMAL SPIRITS OF MY MARKET
1. A LOAF OF BREAD, A JUG OF WINE, AND THOU BESIDE ME WATCHING RUKEYSER

January 31, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

COLORADO SPRINGS BEATS THE NATIONAL SALES FIGURES AGAIN

The latest Standard & Poor's Case-Shiller Home Price Index shows that, in the top 20 U.S. cities surveyed, real estate prices fell 1.6% in 2010.

Added to that, the Wall Street Journal (Mon. Jan. 31, 2011) announced, "Home Prices Sink Further". The article points out that, in the WSJ quarterly survey of the major metropolitan areas of the country, 2010 home prices declined in every one of the 28 areas covered by their survey.

However, we just received a copy of the latest report from the Southern Colorado Economic Council from Fred Crowley, the chief economist for the SCEC, and the report clearly shows that, during 2010, Colorado Springs median and average home prices both rose. In other words, we are better off than any of the top 48 metropolitan areas in the country. How do you like them apples??

We hate to make the other major metropolitan areas in the U.S. feel bad, but we cannot overlook this opportunity to point out that we live in the best place in the USA. Our economy is better than any of the cities in both of the surveys cited above.

Apparently, the theme song for Colorado Springs should be,"O Lord, It's hard to be humble, when you're perfect in every way".

To see the complete SCEC report and to learn how well our local economy is doing, Click here.  

..PLUS THE FACT THAT IT'S STILL CHEAPER TO LIVE HERE !!!

The Gazette also reported that our local cost of living is still below the national average. (Jan. 29, 2011). Even though gas prices nudged our local cost of living up .5% in 2010, we are still 7.2% below the national average cost of living. Now, if we all go out and buy electric cars, we will really beat the national average. .(but who can afford a 40 mile extension cord?)

HERE'S WHAT THE EXPERTS ARE SAYING ABOUT OUR LOCAL ECONOMY

On January 27, 2011, we attended the presentation, "Navigating in the New Economic Reality", sponsored by Vectra Bank. The featured speaker was Dr. Tom Zwirlein from UCCS. The speaker presented a local business forecast for the coming year and featured some very interesting data about our local economy. Here are some of the points discussed:

• There will be a rise of approximately 1 ½% in interest rates in 2011.
• Colorado Homeownership will fall by approximately 2-3% in 2011. Obviously, this means that some home occupancy will shift from ownership to rental status. This is good news for owners of rental property. (Our present vacancy rate is around 3%. That's very low).
• The Housing Affordability Index will be approximately the same as it was in 2009-2010.
• Local foreclosures are projected to be 4200 in 2011 (vs. 5470 in 2009 and 4828 in 2010). Good !!! The trend is down !!
• The number of residential sales has remained fairly constant for the past three years (2008 - 8339, 2009 - 8346, 2010 - 8222).
• Our local unemployment rate is projected to drop from 8.4% to 7.9% in 2011.
• Our local population is forecast to grow by1.5% in 2011.
• Personal income and retail sales are both forecast to rise modestly in 2011, but single-family housing permits are predicted to decline.

All of these factors point to the fact that rental property will be a great investment in 2011, especially if you buy before interest rates rise any further.

Call us.

TIMES A WASTIN' - BETTER CALL US RIGHT NOW

As we have been predicting, mortgage interest rates are continuing to edge up. The Wall Street Journal reports that rates are "edging closer to 5%".

With local home prices and interest rates both on the rise, you shouldn't postpone buying that new home or investment property any longer.

HOW WILL THE NEW 3.8% TAX ON real estate AFFECT YOU ?

We have been getting lots of phone calls asking us about "the new 3.8% tax on real estate". The good news is that it probably won't affect most of our readers.

As of January 1, 2013, there will be an additional tax of 3.8% on some income from interest, dividends, rents (less expenses) and capital gains (less expenses).

The new tax will apply to: 

• Individuals with Adjusted Gross Incomes (AGI) above $200,000
• Couples filing a joint return with more than $250,000 AGI
• Capital gains from sale of a principal residence
• Capital gains from sale of a non-real estate asset
• Capital gains from interest and dividends: Securities
• Rental Income, including REI investment income
• Rental Income as sole source of earnings - real estate trade or business
• Sale of a second home with no rental use (or no more than 14 days rental)
• Sale of an inherited investment property (Residential or commercial)
• Purchase and sale of Investment Property (residential or commercial)

You may want to discuss with your tax advisor how this new law might affect your taxes.

For your information, the National Association of Realtors has prepared a brochure outlining the details of this new law and citing several specific examples. For a copy of the brochure and to see a complete explanation of the law, Click here.  

IF YOU'RE A LANDLORD, HERE'S YET ANOTHER  NEW REQUIREMENT FROM THE GOVERNMENT !!!

If you're the owner of even a single unit of rental property, starting this year, you must start tracking all vendors doing at least $600 worth of work for you and send them an IRS Form 1099 at the end of the year

The IRS has not yet worked out the details of this new requirement, so we cannot yet clarify what it means for you but, you should start keeping track of your vendors, so you don't get blindsided at the end of the year. Better talk to your bookkeeper about this new law. 

Hey, what's the problem? You've got plenty of time on your hands.

LATEST STATISTICS

To see the latest Sales and Listing statistics for the Pikes Peak region, Click here.

THIRTEEN THINGS YOUR BURGLAR WON'T TELL YOU

Security consultant Chris McGoey interviewed 105 burglars for his book about protecting yourself and your home from being burgled. Click here to review some of his tips on protecting yourself.

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, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

Last week, because we assumed our readers were so involved with the NFL playoffs, the State of the Union address and the fact that the world is falling apart, we thought we could dispense with the Joke of the Week and nobody would notice. However, after publication, we received several complaints about the omission. So, now that we have been properly chastised, we will include two jokes; one for this week and one for the missing joke from last week.  

JOKE #1

Two women were walking through the woods when a frog called out to them and said: "Help me, ladies! I am a real estate broker who, through a curse, has been transformed into a frog. If one of you will kiss me, I'll be returned to my former state!"

One woman took out her purse, grabbed the frog, and stuffed it inside her handbag. The other woman said, "Didn't you hear him? If you kiss him, he'll turn into a real estate broker!"

The second woman replied, "Sure, but these days a talking frog is worth more than a real estate broker!"

JOKE #2

The following complaints were actually received by property managers from their renters:

"The toilet is blocked and we cannot bathe the children until it is cleared. "

"This is to let you know that there is a smell coming from the man next door. "

"The toilet seat is cracked: where do I stand? "

"I am writing on behalf of my sink, which is running away from the wall. "

"I request your permission to remove my drawers in the kitchen. "

"Our lavatory seat is broken in half and is now in three pieces. "

"Will you please send someone to mend our cracked sidewalk? Yesterday my wife tripped on it and is now pregnant."

"Our kitchen floor is very damp, we have two children and would like a third, so will you please send someone to do something about it. "

"Would you please send a man to repair my downspout? I am an old-age pensioner and need it straight away. "

"Could you please send someone to fix our bath tap? My wife got her toe stuck in it and it is very uncomfortable for us. "

"When the workmen were here, they put their tools in my wife's new drawers and made a mess. Please send men with clean tools to finish the job and keep my wife happy."

By the way, the playoffs and the State of the Union address are both over, but the world is still a mess. Sorry about that.

January 17, 2011 

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

EDC TO UNVEIL PLAN TO KEEP COMPANIES IN COLORADO SPRINGS

This coming Thursday, we will be attending a luncheon sponsored by the Economic Development Corp. at which Mike Kazmierski, the head of EDC will unveil a plan to boost our local economy. The plan involves attracting new business to Colorado Springs by means of a city-sponsored Venture Capital project. One of the requirements of the program will be that the assisted businesses agree to stay in Colorado Springs.

The EDC will be developing this plan with UCCS Professor Thomas Duening, who is already laying the groundwork for what would be the city's first VC fund.

We are very excited to see this type of innovative planning introduced in our city and we will keep you advised of the details in future newsletters.

THE ECONOMY IS LEADING HOUSING BACK FROM THE BOTTOM

Last Friday, in his testimony to the Senate Budget Committee, Federal Reserve Chairman Ben Bernanke expressed more optimism about the economy. He predicted a "moderately stronger" overall pace for the economy in 2011, noting that the Fed has seen "increased evidence that a self-sustaining recovery" is occurring.

As evidence of this recovery, the Gazette reported that, on Friday, U.S. stocks reached their highest closing levels in 2 ½ years. The Dow Jones industrial average rose 55.48 points, its highest close since June 28, 2008. The good news is that the stack market has traditionally led the economy by two quarters, so, this present rise in the stock market is a good indication that the second half of 2011 will be booming.

Evidence is mounting that this economic recovery is already beginning to boost the housing market. Large price declines have made housing more affordable than at any point in the last decade and new housing construction has fallen to the lowest levels in more than 40 years. Both of these factors will help boost existing-home sales, absorb available inventory and put upward pressure on home prices.

Locally, the average sale price for Colorado Springs homes in 2010 was up 4.4%, even after including foreclosures in the mix. This increase in selling prices came as many other U.S. cities continued to show declines.

Unfortunately, foreclosures will continue to affect our local housing market in 2011. Last year, there were 4828 foreclosures in Colorado Springs, which was an 11.7% decline from 2009, but indications are that we will see another 4000 local foreclosures in 2011. Keep in mind, however, that as many as half of these foreclosures will never reach the market, because of refinancing, assistance programs, etc.

As always, however, our continued economic growth will be dependent upon JOBS, JOBS, JOBS. That's why we are so excited about the EDC plan which we discussed, above, and by the tone of our new Governor as he discusses his plans for attracting new businesses and new jobs to our state. It sounds like our state is on the right track.

ALL MORTGAGE COMPANIES ARE NOT CREATED EQUAL - THE SAME CAN BE SAID OF REALTORS !!!

Last week, we had the opportunity to help both a Buyer and a Seller save about $2000.

We were contacted by a Buyer's agent who had made arrangements with a local Lender to buy one of our listings. When we reviewed the paperwork, we discovered that the Lender had tacked on several fees and charges that would have cost both the Seller and the Buyer approximately $2000 in unnecessary costs for the $185,000 sale. Furthermore, the Lender was reluctant to sign a disclosure statement which was published in the listing.

On our recommendation, the Buyer's agent switched to one of our preferred Lenders and thus saved both parties from making a very expensive mistake.

The moral of the story: 

1. Not all Lenders are equal. Dealing with an experienced Realtor, one who has long-term, professional relationships with conscientious, ethical Lenders, can save you time, trouble and money.
2. Not all Realtors are equal. Our 38 years of experience in the local community, combined with our extensive knowledge of finance enabled us to provide this client with information and assistance that saved them thousands of dollars in unnecessary costs. Our experience, knowledge and close-working network of professionals, including lenders, appraisers, inspectors, stagers, builders, etc. can help make your real estate transaction as smooth and as professional as possible. The transaction we just described is an example of how we look out for our clients.

Give us a call.

WHY BUY NOW? MORTGAGE RATES ARE DOWN AND YOUR RENTERS ARE WAITING

Should you buy that new home or investment property now?  Well, if you're looking for a good deal, you should consider it. According to the Wall Street Journal (January 14, 2011), mortgage rates have actually declined for the second consecutive week. The average 30-year fixed-rate mortgage fell to 4.71% in the week ending Thursday, reaching a four week low, according to Freddie Mac.

This surprising, but probably temporary, reduction in rates may be your last chance to cash in on the ridiculously-low rates which are now available.

Another good reason to buy investment property right now is the dramatic rise in the number of potential renters. The predicted 4000 local families which will probably lose their homes to foreclosure in 2011 will soon be in the market for high-quality rentals. Therefore we will need between 2000-3000 additional rental units to service this need. This will be a great opportunity for residential real estate investors. These unlucky people who may have been forced into foreclosure because of lost jobs are otherwise-reliable families who are used to taking care of their homes and expect the best for their families. These displaced homeowners have already reduced the vacancy rate in Colorado Springs to below 6% (Before the recession, our vacancy rate was running around 10%). Investors report that these new renters are trouble free, pay on time and take good care of their rentals.    

Call us to discuss this great opportunity.

LATEST STATISTICS

Click here to see 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 38 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, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

A young Realtor had just started his own real estate office. He rented a beautiful office and had it furnished with antiques.

Sitting there, he saw a man come into the outer office. Wishing to appear the hot shot, the broker picked up the phone and started to pretend he had a big deal working.

He threw huge figures around and made giant commitments. Finally he hung up and asked the visitor, "Can I help you?"

The man said, "Yeah, I've come to activate your phone lines."

Jan. 10, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

HOW ARE WE DOING ?

How is real estate doing now, compared with last month? How did we do in 2010, compared with 2009? How is the Pikes Peak area doing compared with the rest of the country? Well, the two links, below will allow you to examine the sales numbers for 2010 and will demonstrate that our median and average prices are up!!! That’s great news.

But the most encouraging statistics involve appreciation. In their survey of the largest U.S. metropolitan, NAR reports a national decline of .2% in home prices. Our local market, on the other hand, shows an increase of 4.4% in home prices. That’s a great indication that the Colorado Springs market has bottomed out and is on the way back up.

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

Things are definitely looking up.

THE MORTGAGE INTEREST DEDUCTION IS BEING CHALLENGED !!!

There has been much discussion in Washington lately about eliminating the deduction for mortgage interest (MID).  The National Commission on Fiscal Responsibility and Reform has suggested that this deduction should be eliminated. We think this move would be disastrous to our economy.

Changing the mortgage interest deduction (MID) will have a long-range ripple effect on everyone, including the nation's 75 million homeowners,with the most immediate impact on the 47 million homeowners who currently take the deduction.

For financially-strapped taxpayers, the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. In 2008, the mortgage interest deduction represented roughly $11,593 for the average taxpayer who had a mortgage. Assuming a marginal tax rate of 25 percent (tax bracket), that mortgage interest deduction translates into an actual savings of $2,898 for the average taxpayer, according to analysis by the National Association of REALTORS® (NAR).

As a specific example, a family who bought a home last year with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 5 percent, could save nearly $3,500 in federal taxes when they file next year. That’s real money they can use to pay down other debts, save for their children’s college education, or put away for retirement.

Diminishing this vital public investment in our housing economy will put downward pressure on prices at a time when the housing market cannot take that kind of hit. Any reduction in the mortgage interest deduction will put us in a broader economic recession, according to NAR Chief Economist Lawrence Yun. He has projected that home values could fall 15 percent nationwide as buyers discount the value of the MID in their purchase offers

The tax deductibility of interest paid on mortgages is a powerful incentive for homeownership and has been one of the simplest provisions in the federal tax code for more than 80 years. In a new survey of nearly 3,000 homeowners and renters commissioned by NAR and conducted online in October 2010, nearly three-fourths of homeowners and two-thirds of renters said the mortgage interest deduction was extremely or very important to them.

Let’s not forget that Homeownership also provides real financial benefit to families as a vehicle for personal savings, wealth creation and of financial advancement. Millions of middle-class homeowners and those that aspire to be homeowners rely on the MID to make homeownership affordable.

And homeownership also benefits communities. People who own their homes vote more, volunteer more and participate more in community initiatives, providing resources and stability to neighborhoods across America.

And, just to clear the record, let’s look at a common misperception that the mortgage interest deduction benefits primarily the wealthy, as argued in the Washington Post’s January 1 editorial, “Trim the Excessive Tax Subsidy for real estate.” In fact, the MID actually benefits primarily middle- and lower income families. Sixty five percent of families who claim the MID earn less than $100,000 per year, and 91 percent who claim the benefit earn less than $200,000 per year. As a percentage of income, the biggest MID beneficiaries are younger middle-class families.

Homeownership has been a boon to our nation - one that policymakers have long supported. Historically, the real estate industry has generated between 15 and 18 percent of the gross domestic product Eliminating or diminishing the mortgage interest deduction, as recently proposed by the National Commission on Fiscal Responsibility and Reform, is a policy mistake that would stop the housing recovery in its tracks, undermine a cornerstone of our economy and chill consumer behavior for years to come.

As we face up to our mounting deficit, we have to be careful not to stifle markets that generate significant economic activity and have a positive impact on the revenue side of the equation. Let’s not mess with Homeownership - that crucial element in our economic recovery.

Please, Washington, let’s not tamper with the deduction for mortgage interest.

THE REALITIES OF FORECLOSURE

Unfortunately, foreclosures are still growing but most homeowners don’t understand the realities of exactly what the decision to walk away from their mortgages will mean to their finances and to their futures.

So, before you decide to go through foreclosure, you should consider a couple of other options:

• Short sale:  Both you and your lender must agree to a short sale. ..i.e. selling your home at a moderate loss, avoiding foreclosure and its associated fees and, hopefully, salvaging your credit report
• Talking with your lender: Most banks don’t want you to foreclose, as it would mean they take a loss. So, they may be able to offer you programs, refinancing, or counseling that that might help you avoid losing your home.
• Selling if you are not underwater: If you don’t owe more than you can sell for, then now is the time to call a Realtor. Downsizing or even renting are better options than ruining your credit for the next seven years.

If none of these options work for you, then be aware of some of the myths that surround the foreclosure process. To shed light on what a foreclosure will mean to a homeowner, Freddie Mac offers "Top Foreclosure Myths" and the truth behind those false beliefs. For example:

• Myth: You should stop paying your mortgage so you can leverage assistance with your mortgage payments.

The approach, called a "strategic default," can become a tactical trap.

It isn't necessary to default on your mortgage payments in order to qualify for help.

If you are struggling to stay current on your mortgage, you may be eligible for a loan modification or other assistance program.

You signed a contract that binds you to making regular mortgage payments. If you don't make your payments, you will be exposed to foreclosure, subsequent black marks on your credit report and years of financial recovery.

If you can financially afford to make your mortgage payments, even if you've been declined a mortgage modification , short sale or other work out, do so to maintain your credit standing.

If you need help, contact us. We will be happy to discuss your situation and your options.

• Myth: After a foreclosure, you'll never get another mortgage.

Well, sure. You blew it. Perhaps you borrowed more than you could afford or your ability to pay for what you thought you could afford went away. You may not qualify for a home for as long as seven years, but that's not "never."

Work to create a spending and savings plan that will rebuild your credit. Get approved counseling that will reveal your effort to recover.

• Myth: Workout options are over once you get a foreclosure notice.

Lenders would prefer that you keep your mortgage and continue to make payments because they lose money when they foreclose on you. Even if foreclosure proceedings have begun, it's not too late to be considered for a workout or other alternative.

• Myth: You need to leave your home as soon as you're notified that your property is in foreclosure.

A notice of foreclosure is the first step in the foreclosure process. There are procedural and legal guidelines and applicable state and federal laws that servicers and lenders must follow in every foreclosure. Foreclosures take months to complete.

• Myth: If you're late on your monthly payments, you'll lose your house.

You will if you stick your head in the sand. If you have a financial hardship and fall behind, it's possible to keep your house and get back on track if you tell someone who is able to help. Contact your lender to discuss your options.  

• Myth: All the offers for help are probably all scams.

Scam artists do often target homeowners who are struggling to meet their mortgage commitment or who are anxious to sell their home.

Deal with your lender first, rather than an outside party. If you do deal with an outside firm avoid those that ask for a fee in advance to work with your lender to modify, refinance, or reinstate your mortgage. Ignore guarantees from outside firms that claim they can stop a foreclosure or modify your loan.

Legitimate offers will have specific information identifying your current mortgage, including the loan number of your mortgage. Shy from offers that come from a company other than your current lender or an authorized agent of your lender.

• Myth: Give up if your lender is not responding to your inquiries.

Never give up. Lenders are deluged. It may take longer than you'd like to reach your lender, which is why you should contact your lender at the first sign of trouble. The process of obtaining a loan modification or other foreclosure alternative may require diligence in the form of multiple calls and multiple submissions of documents between you and your lender. The process isn't perfect, the procedures continue to change.

If you’re facing foreclosure, remember, it’s not the end of the world; it’s just a new page in the story of your life. Don’t forget, Abraham Lincoln was defeated in his first five attempts to be elected to public office.

The moral of the story: Hang in there …and don’t go to the theater.

WANT TO MAKE MONEY LIKE WARREN BUFFETT ? BUY A SECOND HOME

In the Winter Edition of Bottom Line, the author discusses how Warren Buffett takes advantage of the opportunities that a “down market” offers. One of the tips Mr. Buffett lists is to take advantage of the current slowdown in the real estate market by buying a second home.

As Mr. Buffett points out, “Over the long term, the American economy is strong and resilient, which causes stocks (and real estate values) to go up”.

Sounds like a good idea. Call us.

JOKE OF THE WEEK

SOME THOUGHTS ABOUT OUR RECENT FOOTBALL SEASON

Mike Singletary is reported to be moving to Denver. He says he wants to get as far away from football as he can.

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On the latest Wheaties box, General Mills is running a contest where you can win tickets to the Super Bowl next year. The fine print states the odds of going to the Super Bowl are about 460,000 to 1. Funny, that’s about the same odds as for the Broncos going.

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Q. What do you call 50 people sitting around a TV watching the Super Bowl?

A, The Denver Broncos

Q. Where do the Broncos go in case of a tornado?

A. Mile-High Stadium. They never get a touchdown  there.

Q. How many Broncos does it take to change a flat?

A. Only one, unless it's a blowout -- then the whole team shows up.

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Three guys from Colorado died and went to heaven. At the pearly gates, they were met by St. Peter, who explained that although it was late and God had retired for the evening, he had asked Albert Einstein to show them around so they wouldn't get bored before they met God in the morning.

After Einstein had introduced himself to Slim, he asked, "By the way, Slim, what was your IQ when you were alive?"

"159", said Slim.

"Great!", said Einstein. We'll discuss my general theory of relativity and maybe a little unified field theory as I show you around."

"What an exciting opportunity!", said Slim.

Einstein then introduced himself to Billy-Bob, and when he was done he said, "Tell me, Billy-Bob, what was your IQ when you were alive?"

"141", said Billy-Bob.

"Good," said Einstein. "If you'd like, we can discuss a little mathematics and philosophy as I point out the heavenly sights."

"Nothing I'd like better!" was Billy-Bob's reply.

After Einstein had introduced himself to Bubba, he asked, "What was your IQ when you were alive, Bubba?"

"Duh. Huh?" said Bubba.

Punching him on the arm, Einstein said, "Hey, Bubba - How 'bout them Broncos?

October 25, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HEY, COLORADO SPRINGS ..IT'S 2011 ....IT'S A NEW BALLGAME .BATTER UP !!!

As we begin 2011, we citizens of Colorado Springs have a great opportunity to start a whole new ballgame. Elections for the new city council come up on April 5th and we will also have the opportunity, for the first time, to vote for a full-time mayor. This election represents a whole new beginning for our city.

This new beginning comes at a time when everyone agrees that jobs will be the key to our future success as a city. Jobs will generate economic growth, rebuild the housing market, stimulate spending, promote a healthy economy, increase our tax revenues and boost everyone's morale. Unfortunately, in 2011, there will be many other cities competing with us for the attention of job-generating new businesses.

With that in mind, we would like to encourage our readers to take an increased interest in our upcoming elections. Be sure to ask all candidates for office about their specific plans for attracting new businesses to our city. This is our chance to find out exactly what each candidate plans to do to increase employment opportunities in the Pikes Peak area. Yes, yes, we know that every candidate loves the flag and Mom's apple pie, but, how do they plan to beat our competition in this fight for jobs. What innovative plans do the candidates have for "selling" our city, promoting our unique lifestyle and beauty, bringing our budget problems to an end, improving services, enhancing our national image, encouraging growth, etc., etc., etc.

The candidates we end up choosing should be the ones who have some innovative solutions for winning this fight for jobs.

It may be a little early for traditional Spring training to begin, but, in the case of our city's upcoming elections, it's not too early to start planning for the first game of the season.

Play ball !!!   Batter up !!! 

WANT TO BEAT THE STOCK MARKET?  .BUY A HOUSE

We frequently hear from people who express reluctance to buy a new home right now. Considering the turmoil that the real estate market is currently going through, they are not sure that owning a home would be a good business decision.

Well, let's look at the historical facts about home ownership in Colorado Springs over the past ten years. In December of 2000, the median sales price of homes in Colorado Springs was $145,000. At the end of December 2010, the median sales price was $198,000. That difference of $53,000 represents a gain of 3.66% per year, over each of the past ten years. In addition to this increase in market value, the Homeowner also benefited from such factors as an increase in equity, significant tax benefits, etc.

If, instead of buying a house ten years ago, the investor had bought stocks, the Dow Jones Industrial average shows that, over the past ten years, his/her investment would have shown a total increase of 1.06% ..that's not per year, that's total increase.

Bottom line: Over the long haul, buying a home is a much better investment that investing in the stock market. Furthermore, with the still-low interest rates that are now available, there is even more reason to buy now. (And, if you are concerned about job security, please call us about our Job-Loss Protection Program)

WHAT DO THE EXPERTS SAY ABOUT real estate IN 2011?

In an interview on December 30, 2010, Lawrence Yun, Chief Economist for the National Association of Realtors, made the following predictions about the real estate market in 2011:

"Steady improvements in the economy are helping bring buyers into the market, but further gains are needed to reach normal levels of sales activity.

"If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume.

"All the indicator trends are pointing to a gradual housing recovery. Home price prospects will vary depending largely upon local job market conditions. The national median home price, however, is expected to remain stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers.

"As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2-3% in 2011.

As we said in our first article, Jobs will determine the speed with which we recover from the recession.

LATEST STATISTICS

Click here to see 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 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, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

A balloonist is blown off course and is forced to land. He is in a field close to a road, but has no idea where he is. He sees a car coming along the road and hails it.

The driver gets out and the balloonist says, "Howdy! Can you tell me where I am?"

"Yes, of course," says the driver. "You have just landed in your balloon, and with this wind you have obviously been blown off course. You are in the top field on John Dawson's farm, 12 miles from Albury. John will be plowing the field next week and sowing wheat. There is a bull in the field. It is behind you and about to attack you."

At that moment, the bull reaches the balloonist and tosses him over the fence.

Luckily, the balloonist is unhurt. He gets up, dusts himself off and says to the motorist, "I see you're an appraiser for a bank"

"Good grief," says the other man, "you're right! How did you know that?"

"I'm a Realtor and I work with bank appraisers all the time." says the balloonist. "The information you gave me was detailed, precise, and accurate. Most of it was useless, and it arrived far too late to be of any help."

December 27, 2010

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HAPPY NEW YEAR FROM ALL OF US AT SALZMAN real estate SERVICES !!!

We know you all are busy enjoying the Holiday season and don’t want to be bothered with some boring facts about the real estate market, so, we’ll limit ourselves to just a short list of reasons why you should consider buying a home in 2011 and a holiday poem, for your enjoyment.

Happy Holidays and Best Wishes for 2011.

5 Reasons to Buy a Home in 2011

Michele Lerner, author of “Homebuying: Tough Times, First Time, Any Time”, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:

• Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.
• Tax cuts could help. Extending the tax cuts will encourage a more rapid recovery for the economy.
• Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
• Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
• Homes are shrinking. Homes are getting smaller, which has made them more affordable.
  
  Source: Investopedia, Michele Lerner (12/24/2010)

HERE’S A POEM ABOUT THIS REALTOR’S

NEW- YEAR’S DREAM-VISITOR

'Twas the night before New Year’s, and I don’t want to grouse

But not a listing was selling, not even one house.

The signs were all planted on front lawns with care,

In hopes that some Buyer might look for them there

While Sellers were nestled all snug in their beds;

With visions of quick-sales abuzz in their heads;

I was here with my laptop and Blackberry, too;

Just burning the night-oil, with nary a clue.

When out on the lawn there arose such a clatter,

I sprang from my bed to see what was the matter.

Away to the window I flew like a flash,

Tore open the shutters and threw up the sash.

The moon on the breast of the new-fallen snow,

Gave a lustre of midday to objects below,

When what to my wondering eyes did appear,

But a miniature sleigh and eight tiny rein-deer,

With a little old driver so lively and spry,

I knew in a moment he intended to buy.

More rapid than eagles his coursers they came,

And he whistled, and shouted, and called them by name:

"Now, Fannie! now, Freddie! now Prancer and Vixen!

On, Comet! on, Cupid! on, Donder and Blixen!

To the top of the porch! to the top of the wall!

Now dash away! dash away! dash away all!"

As leaves that before the wild hurricane fly,

When they meet with an obstacle, mount to the sky;

So up to the housetop the coursers they flew

With the sleigh full of earnest money, and down-payments, too-

And then, in a twinkling, I heard on the roof

The prancing and pawing of each little hoof.

As I drew in my head, and was turning around,

Down the chimney my Prospect came with a bound.

He was dressed all in fur, from his head to his foot,

And his clothes were all tarnished with ashes and soot;

A bundle of loan approvals he carried on his back,

And I knew he would buy, I was on the right track.

His eyes—how they twinkled! his dimples, how merry!

His cheeks were like roses, his nose like a cherry!

His droll little mouth was drawn up like a bow,

And the beard on his chin was as white as the snow;

The stump of a pipe he held tight in his teeth,

And the smoke, it encircled his head like a wreath;

He had a broad face and a little round belly

That shook when he laughed, like a bowl full of jelly.

He was chubby and plump, a right jolly old elf,

And I laughed when I saw him, in spite of myself;

A wink of his eye and a twist of his head

Soon gave me to know I had nothing to dread;

He spoke not a word, but went straight to his work.

He filled out an offer; then turned with a jerk,

And laying his finger aside of his nose,

And giving a nod, up the chimney he rose;

He sprang to his sleigh, to his team gave a whistle,

And away they all flew like the down of a thistle.

But I heard him exclaim, ere he drove out of sight—

“Here’s your first sale of 2011, Harry !!!

Now, have a good night!”

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, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

LATEST STATISTICS

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