Real Estate Information Archive

August 24, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

YES, MORTGAGE RATES MAY BE RISING, BUT HOMES PRICES ARE TOO…

It’s somewhat of a mixed bag of stories about Residential real estate of late.

Yes, mortgage rates have hit their highest point in 20 years, however, compared to the not so terribly distant past, they aren’t so high.  

And what does this mean to you as a potential buyer or seller?

While August was a very slow month nationally and I’m guessing here as well, you would not know it from my recent sales activity.  I’ve had a very busy quarter and the inquiries keep on coming.  

As I’ve said time and again, all Residential real estate must be looked at on a LOCAL level, and as you are probably aware, Colorado Springs is on a roll in attracting new employers and with them relocated employees who are looking for homes.

Plus, the relatively higher income and education levels of our folks here makes it easier for them to realize that waiting for lower interest rates or lower home prices is not necessarily the smartest move.

While interest rates are considerably higher than they were, with home prices continuing to rise, today’s buyers will be able to refinance when rates go down over the next few years.

With fewer homes for sale at present, listing your home today will afford it greater visibility than when there was a surplus of homes for sale.  

It can be a bit complicated, but that’s not a problem for you, because you have me.  My long-time experience in the local market, coupled with my Investment Banking background, makes me an asset to you when you are looking to buy or sell, even in this unusual market.

If you’ve even been thinking about a move, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get together and see how together we take your wants, needs and budget requirements to make your Residential real estate dreams come true.

 

HOME PRICES ARE RISING AGAIN

Keeping Current Matters, 8.11.23

 

Some Highlights:

• Looking at monthly home price data from six expert sources shows the worst home price declines are behind us, and they’re rising again nationally.

 

• If you’ve waited to move on to a new home because you were worried about home prices crashing, this rebound is good news.

 

• Call me sooner than later so we can discuss whether this is a good time for you to realize your Residential real estate dreams.

 

MORTGAGE RATES HIT HIGHEST LEVEL IN MORE THAN 20 YEARS

The Wall Street Journal, 7.19.23

While last week was the first time since last fall that the mortgage interest rate has risen above 7%, it is far below rates that I can still remember and in fact.  One of the first homes I purchased was financed with a loan of 8.5%. 

Here is a look at the average rate on a 30-year fixed mortgage since 1972:

This news can be disconcerting for some, but as I mentioned earlier, with home prices also starting to rise once again, there are ways to make this market work for you.

It all begins with a call to me, so if you’ve even wondered how this can work give me a holler.

 

AND THE MAIN REASON MORTGAGE RATES ARE SO HIGH?

Keeping Current Matters, 6.7.23

 

Since mortgage rates are the biggest concern of most homebuyers at the moment, I thought I’d try to answer some questions I’ve been asked:

 

1. Why are Mortgage Rates so high?

 

2. When will Rates go back down?

 

Why Are Mortgage Rates So High?

The 30-year fixed-rate mortgage is largely influenced by the supply and demand for mortgage-backed securities (MBS).  And according to Investopedia:

 

“Mortgage-back securities (MBS) are investment products similar to bonds.  Each MBS consists of a bundle of home loans and other real estate debt bought from the banks that issue them…The investor who buys a mortgage-backed security is essentially lending money to home buyers.”

            

Demand for MBS helps determine the spread between the 10-Year Treasury Yield and the 30-year fixed mortgage rate. Historically, the average spread between the two is 1.72 (see chart below):

 

 

In early June of this year the mortgage rate was 6.85%.  That means the spread was 3.2% which is almost 1.5% over the norm.  If the spread was at its historical average, mortgage rates would have been 5.367% (3.65% 10-Year Treasury Yield + 1.72% spread).

 

 

This large spread is unusual.  As George Ratiu, Chief Economist at Keeping Current Matters explains:

“The only times the spread approached or exceeded 300 basis points were during periods of high inflation or economic volatility, like those seen in the early 1980’s or the Great Financial Crisis of 2008-09.”

The graph below uses historical data to help illustrate this point by showing the few times the spread has increased to 300 basis points or more:

 

 

The graph shows how the spread has come down after each peak.  The good news is that means there’s room for mortgage rates to improve today.

So, what’s causing the larger spread and making mortgage rates so high today?

The demand for MBS is heavily influenced by the risks associated with investing in them.  Today, that risk is impacted by broader market conditions like inflation and a fear of a potential recession, the Fed’s interest rate hikes to try to bring down inflation, headlines that create unnecessarily negative narratives about home prices, and more.

Simply put—when there’s less risk, demand for MBS is high, so mortgage rates will be lower.  On the other hand, if there’s more risk with MBS, demand for MBS will be low, and we’ll see higher mortgage rates as a result.  Currently, demand for MBS is low, so mortgage rates are high.

 

When Will Mortgage Rates Go Back Down?

 

Odeta Kushi, Deputy Chief Economist at First American, answers that question in a recent blog:

“It’s reasonable to assume that the spread and, therefore mortgage rates will retreat in the second half of the year if the Fed takes its foot off the monetary tightening pedal and provides investors with more certainty.  However, it’s unlikely that the spread will return to its historical average of 170 basis points, as some risks are here to stay.”

 

Bottom Line

The spread will shrink when the fear investors feel is eased.  That’ll mean we should see mortgage rates moderate as the year goes on.  However, when it comes to forecasting mortgage rates, no one can know for sure exactly what will happen.

And all of that said…I’m sure I lost some of you a few paragraphs back.  To me, with my Investment Banking background, it’s second nature, but I do understand that it’s tough to put it in layman’s terms.  If you have any questions, you know where to find me.

 

ERA SHIELDS MONTHLY STAT PACK 

Data through July 2023, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page and you can click here to get the report in its entirety.  

 

SAVE THE DATE FOR THE 27^TH ANNUAL UCCS ECONOMIC FORUM…

 

 

This is an always worthwhile event and registration is FREE.  You can scan the above QR code for registration and more information.  

 

August 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

THINGS ARE BEGINNING TO TURN AROUND…

 

Those of you who have known me for 5 minutes or 50 years can attest to the fact that if nothing else, I can be called “Mr. Positivity”.  

If there’s a way of turning anything at all into a positive, I will find the way.  Lucky for me, some things happening in our community are playing right into my hands.

To begin with, the best news of recent days was President Biden’s decision to keep the U.S. Space Command right here in Colorado Springs.  Not only is it the best decision for our national security, it means that so many folks who were uncertain of where they might live are now making plans to stay right here.

And several tech companies who work with the DOD are looking to increase their staffing and facilities as well.

Of course, my first thought was…wow, there are going to be a bunch of folks who will be looking for housing.

And then my second thought was…hmm…the inventory shortage is going to get worse before it gets better.

But, me being me, I just figure that things will work out just fine.

And sure enough, I attended a zoom conference last week that was led by Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) and he was just as positive in his outlook as I’ve been.

So, I have devoted this eNewsletter to “positivity” and have provided some infographics that show the same.

And my newest YouTube video also attests to that.  Yes, if you’ve got two minutes, I’ve got some news for you.  

To watch, click here:

 

https://youtu.be/CdnzrxL_fdU

 

In fact, while you’re at it, you might want to subscribe to my channel, so you won’t miss my future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

And, if you want to see the charts I referred to in my talk, please click here.

Yes, things are looking up in Residential real estate and if you’ve even considered buying or selling during the past year and held back for whatever reason, NOW is the time to get with me to figure out if it’s possible to begin the process.

So, as always, if Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And now for statistics…

 

JULY 2023

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

Here are some highlights from the July 2023 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was a 24.  For condo/townhomes it was 25.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.7% and for condo/townhomes it was 99.6%.  

 

In Teller County, the average days on the market for single family/patio homes was 31 and the sales/list price was 98.2%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing July 2023 to July 2022 for All Homes in PPAR:

 

                        Single Family/Patio Homes:

·       New Listings were 1,464, Down 29.9%

·       Number of Sales were 1119, Down 20.2%

·       Average Sales Price was $540,443, Down 3.0%

·       Median Sales Price was $472,000, Down 2.2%

·       Total Active Listings are 2,254, Down 11.6%

·       Months Supply is 2.0, Down 0.6%

 

 

Condo/Townhomes:

·       New Listings were 224, Down 17.0% 

·       Number of Sales were 160, Down 23.1%

·       Average Sales Price was $364,619, Down 2.6%

·       Median Sales Price was $342,500, Down 2.8%

·       Total Active Listings are 302, Up 29.1%

·       Months Supply is 1.9, Down 1.3%

 

 

JULY 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Down 24.9%

 

• Median Sales Price for All Properties was Down 1.8%

 

• Active Listings on All Properties were Down 17.9%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

housing market FORECAST FOR THE REST OF 2023…AN INFOGRAPHIC

Keeping Current Matters, 8.4.23

 

Some Highlights:

 

• Want to know what experts are saying will happen in the rest of 2023?  Home prices are already appreciating again in many areas.  The average of the expert forecasts shows positive price growth.

 

• Where mortgage rates go for the rest of the year will depend on inflation.  Based on historical trends, rates are likely to ease as inflation continues to cool.

 

• Even though low inventory here and in the rest of the nation continues to be a challenge, experts project 5 million homes will still sell this year.  That pace should pick up if rates come down.

 

 

KEY housing market TRENDS…AN INFOGRAPHIC

Keeping Current Matters, 7.28.23

 

 

Some Highlights:

 

• If you’re considering buying or selling a home, you’ll want to know what’s happening in the housing market.

 

• Housing inventory is still very low, prices are climbing back up, and homes are selling fast when priced right.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, July 2023

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

To access the report, please click here and if you have any questions, please give me a holler.

 

SAVE THE DATE FOR THE 27^TH ANNUAL UCCS ECONOMIC FORUM…

 

 

This is an always worthwhile event and registration is FREE.  You can scan the above QR code for registration and more information.  

 

 

AND A PARTING REC FOR SOME INTERESTING READING…

I am almost finished reading our former Mayor John Suthers’s autobiography and I can’t put it down.  The book is a fascinating look at John’s life and career trajectory, and I highly recommend it to one and all.  

The book is titled “All This I Saw And Part Of It I Was” and I’m guessing you can find it at most of our local bookstores.

Bravo, Mr. Mayor.  

Not only did he do a great job for Colorado Springs, but he wrote a spellbinding book as well.

 

HARRY’S JOKES OF THE DAY:

 

 

 

June 25, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

ATTENTION BUYERS…. IT’S FINALLY YOUR TURN

As you are aware from my eNewsletters of the past several years…. the near historic lack of available homes for sale created a Seller’s Market unlike any I had seen in my 51 plus years in Residential real estate.

Well, that has changed. And for several reasons. 

To begin with, the current higher mortgage interest rates have kept a few folks from qualifying.  And homeowners who have the historically low rates of the recent past, while possibly wanting to sell and trade up, are not wanting to give up those rates.  

In the U.S., sales sank 18.9% compared with June of last year.  However, while down from a year earlier, the median U.S. sales price rose from the previous month.

According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), “Perhaps home prices are beginning to firm up or at least certainly any downward pressure is ending.”

Limited inventory is helping to keep prices up and the Colorado Springs Residential real estate market is a testament to that even while homes are slow to sell at the present time.

From what I’ve seen with my clients lately, their offers have been accepted close to the first shot at asking price and no bidding wars or offers over listing price.

This is great news for potential buyers.  No more buying a home without ever seeing it or without an inspection.  Those days are gone, at least for the present time.

Yes, interest rates are still considerably higher than they were, but with home prices continuing to rise, today’s buyers will be able to refinance when rates go down over the next few years.

It can be a bit complicated, but that’s not a problem for you, because you have me.  My long-time experience in the local market, coupled with my Investment Banking background, makes me an asset to you when you are looking to buy or sell, even in this unusual market.

If you’ve even been thinking about a move, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get together and see how together we can make your Residential real estate dreams come true.

 

real estate CONTINUES TO BE THE BEST INVESTMENT

Keeping Current Matters, 7.21.23

 

Some Highlights:

• According to a recent Gallup poll, real estate has been voted the best long-term investment for 11 years in a row, beating gold, stocks, bonds and more.

 

• Owning real estate means more than just having a home—it’s an investment in your future.  That’s because it’s typically a stable and secure asset that tends to increase in value as time goes on.

 

HOUSING’S RECESSION ALREADY HAPPENED

The Wall Street Journal, 7.21.23

While a lot of folks are waiting for the U.S. to fall into a recession, for the housing market the recession could be in the rearview mirror.

Builders are sounding a lot less downbeat than a year ago.  The National Association of Homebuilders last week reported that its index of industry sentiment rose to 56 in July from 55 a month earlier—not a great reading, but considerably up from the low of 31 recorded in December and the highest level since last June.

On the basis of that, the Federal Reserve Bank of Atlanta’s gross-domestic-product tracking model estimates that residential investment nationally grew at a 0.1% annual rate in the second quarter from the first.  That would be the first gain since the first quarter of 2021.

In addition, increases in the number of new building permits suggests growth in residential investment in the third quarter will be positive.

The rebound in housing is somewhat surprising in the context of mortgage rates that are still high, yet the largest stumbling block appears to be related to supply rather than affordability.

A press release from Harvard Joint Center for Housing Study stated that “housing costs remain well above pre-pandemic levels thanks to substantial increases over the last few years.”  It was noted that “although home prices grew 1% compared to 21% in 2022, they are still nearly 40% over pre-pandemic prices.”

The upshot is that housing is probably providing a modest boost to GDP growth, and it looks as if it will continue to do so in the quarter ahead.  That, in itself, is a strike against the possibility of the U.S. entering into a downturn since housing recoveries usually don’t start until the recessions are over.

The only thing that could go wrong is higher mortgage rates, but the Federal Reserve would have to signal that they intend to keep raising rates through this year and into the next—something that investors, who are betting on just one last rate increase, don’t think will happen.

If they are right, housing probably won’t be sliding back into a recession anytime soon.

So…you know exactly what I’m going to tell you…NOW is the time to start thinking about your Residential real estate wants and needs.  Once the market starts back in full force you want to be ready to pounce. 

You know who to call.  Do it today!

 

SAVE THE DATE FOR THE 27^TH ANNUAL UCCS ECONOMIC FORUM…

 

 

This is an always worthwhile event and registration is FREE.  You can scan the above QR code for registration and more information.  

July 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

         

AMERICA’S MOUNTAIN…IN OUR OWN BACKYARD

I hope you had a wonderful July Fourth holiday.  Living in the United State of America is blessing enough, but those of us fortunate enough to also live in Colorado Springs are reminded daily of the many ways in which we should be grateful to be an American.

The military plays a strong hand in helping keep our economy healthy and when you add that to our city  being home to the United State Olympic and Paralympic Committee and it’s corresponding museum, as well as to the U.S. Airforce Academy, NORAD, The U. S. Spaceforce and other military installations and bases…well…the list goes on and on.

And let’s not forget we live in the shadow of Pike’s Peak, better known to us locals as “America’s Mountian”.  It wasn’t a fluke that Katharine Lee Bates, then an English teacher at Colorado College, wrote the first draft of “America the Beautiful” in 1983 as a poem published in The Congregationalist, a weekly journal, for Independence Day.  

The poem reached a wider audience when it was published in The Boston Evening Transcript on November 19, 1904.  Her final expanded version was written in 1913.  On November 11, 1918, a battalion of the 26^th Infantry Division of the U.S. Army (colloquially known as the Yankee Division) sang “America the Beautiful” upon hearing the announcement of the Armistice.  

And thanks to all that, Colorado Springs will forever be home to “America’s Mountain” as well as a reminder to the rest of the world of our special local brand of patriotism.

Just a bit of trivia for you newbies and a reminder to the rest of us.

 

BIG NEWS…NOW YOU CAN WATCH ME ON YOUTUBE… 

Just in case you miss me in between eNewsletters, text messages or phone calls, I now have a Youtube presence!  I will be posting updates every several weeks or so and here is the link where you can subscribe to my channel:

https://youtu.be/6t70DHwnmp8

I will strive to post things that are newsworthy as well as noteworthy that can help you stay well informed on all things Residential real estate.  

Hope you’ll tune in today and I promise to make it a couple of minutes worth your while.

 

And now for statistics…

As good as these numbers look, if you click on the detailed report you will get a better idea of how good they truly are because while year-over-year is what you see below, month-over-month is also reflected in the report and it better illustrates just how great our Residential real estate market is doing, and most especially in comparison to most of the rest of the country.

If you want to know more about how these numbers can work for you, please call me at 719.593.1000 or email me at Harry@HarrySalzman.com and I can help you make any and all of your Residential real estate dreams come true.

 

JUNE 2023

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

Here are some highlights from the June 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 21.  For condo/townhomes it was 31.  

Also in El Paso County, the sales price/list price for single family/patio homes was 100.0% and for condo/townhomes it was 99.9%.  

In Teller County, the average days on the market for single family/patio homes was 29 and the sales/list price was 106.5%.

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing June 2023 to June 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,695, Down 27.9%

·       Number of Sales were 1,286, Down 24.9%

·       Average Sales Price was $555,403, Down 0.7%

·       Median Sales Price was $485,000, Down 3.1%

·       Total Active Listings are 2,059, Down 3.1%

·       Months Supply is 1.6, Up 0.1%

 

 

Condo/Townhomes:

·       New Listings were 234, Down 22.5% 

·       Number of Sales were 213, Down 2.3%

·       Average Sales Price was $409,919, Up 11.8%

·       Median Sales Price was $355,000, Up 2.0%

·       Total Active Listings are 285, Up 42.5%

·       Months Supply is 1.3, Down 18.5%

 

 

JUNE 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Down 23.1%

 

• Median Sales Price for All Properties was Down 1.0%

 

• Active Listings on All Properties were Down 7.7%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

 

HOMEOWNERSHP HELPS PROTECT YOU FROM INFLATION…AN INFOGRAPHIC

Keeping Current Matters, 6.23.23

 

Bottom Line:

• If you’re wondering if it makes sense to buy a home today even when inflation is high, remember that when other costs go up due to inflation, buying a home helps you keep your monthly housing expense steady.

 

• Rents typically increase with inflation.  Maybe that’s why, according to a recent survey, 65.1% of landlords say they plan to raise the rent of at least one of their properties within the next 12 months.

 

• If you or a family member is now renting, call me sooner than later and let’s see if there is a way to help make their monthly housing costs work for them, rather than increasing the net worth of a landlord.

 

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, June 2023

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

It is worth noting that in the last paragraph of her comments, Tatiana said:

 

“I will optimistically say that I am more confident about our local real estate market than I am about the U.S. market for all the good reasons I’ve stated before:  hearty job growth since 2013 (minus 2020) across virtually all industries and especially professional/technical services, a younger demographic that can both work and have babies (ensuring a future workforce), the military instillations as anchor employers and spillover demand for contractors, and ever growing tourism.  The healthy local residential housing market in indicative of our economic growth, and although commercial real estate may sputter, our economic performance over the years has our local CRE market in less bad shape than many first-tier cities.  Overall, still a positive picture despite the uncertainties, and I’ll take that.”

 

And coming from Tatiana, this is wisdom we can take to the bank!!  

To access the report, please click here and if you have any questions, please give me a holler.

 

 

HARRY’S JOKE OF THE DAY:

 

Police: “Do you know why I pulled you over?”

Me: “Because you have a question about real estate?

 

And a little bit of personal trivia…

My eNewsletter editor, Carol, and I have been married for ten years today!  So, Happy Anniversary to us!

 

FEATURED LISTING:

This listing just was reduced to $540,000.  It’s an incredible deal and is not likely to last long at that price!

 

 June 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

HOUSING HAS BEEN AND WILL CONTINUE TO BE THE GREATEST FINANCIAL ASSET OF MOST FAMILIES

I’ve been getting a lot of questions as of late as to my thoughts on the Residential real estate market, both nationally and in Colorado Springs.

Those questions most likely stemmed from folks wondering whether home values were going to stay strong and how I figured the mortgage interest rates would affect the same.

My answers to those type of questions have never wavered…no matter the home price or mortgage interest rates.  There are always going to be folks who need to buy and those who need to sell, no matter the current prices or rates. 

Period.

That has not changed in my 51 years of selling Residential real estate and I doubt it ever will.

Yes, home prices have remained high despite all those rumors of a “housing crash”, and I would expect to see them keep rising.  As I’ve written before, the problems in 2008-2011 are not likely to arise again because lenders and the federal government have taken measures to correct what caused the crash back then.  

Our recent statistics below show that local home prices have only dipped slightly year-over-year and prices are UP from the previous month.  New listings year-over-year are down 27.7%, and sales are down around the same.  However, both of those areas are also UP compared to one month ago and I would expect that trend to continue.

I can tell you not only from the statistics, but also from my recent client experiences, that homes here are continuing to sell at listing price or a bit over once again and the number of days on the market are shortening.  If you’re thinking of a move, now might be the time to begin your search before we start to see some of the frenzy we witnessed in the past several years.

There are some who are wanting to hold on to their historically low interest rates despite new needs and wants in their housing situations.  I will tell you, as I’ve told them, this should not always be a determining factor. 

The reason for this is that if you finance your home at a somewhat higher interest rate now you will likely be able to refinance when rates are lower in a couple of years and at that time you will also likely have equity in your home to make things even easier. 

For first-time buyers, if it’s at all possible, the time to buy is always NOW.  Rental prices keep escalating and it’s likely that a monthly mortgage payment would be less than rent.   When you rent, you are paying a mortgage payment---although it’s your landlord’s---not your own.  Why not earn that equity for yourself if there’s any way you can?  Just a thought.

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling, no matter the reason.  And fortunately, you’ve got me.  

My long-time experience, coupled with my investment banking background, gives me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Knowing what you want, need, and can afford is an important first step.  The second step is to contact me.

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And now for statistics…

 

MAY 2023

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

Here are some highlights from the May 2023 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was a 28.  For condo/townhomes it was 25.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 100.0% and for condo/townhomes it was 99.7%.  

 

In Teller County, the average days on the market for single family/patio homes was 32 and the sales/list price was 99.7%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing May 2023 to May 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,590, Down 27.7%

·       Number of Sales were 1243, Down 26.4%

·       Average Sales Price was $536,478, Down 3.2%

·       Median Sales Price was $475,000, Down 2.5%

·       Total Active Listings are 1,750, Up 28.2%

·       Months Supply is 1.4, Down 1.1%

 

 

Condo/Townhomes:

·       New Listings were 242, Down 3.6% 

·       Number of Sales were 186, Down 10.6%

·       Average Sales Price was $363,170, Down 1.8%

·       Median Sales Price was $340,000, Down 6.8%

·       Total Active Listings are 263, Up 132.7%

·       Months Supply is 1.4, Down 12.6%

 

 

MAY 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Down 25.3%

 

• Median Sales Price for All Properties was Down 3.7%

 

• Active Listings on All Properties were Up 121.6%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

COLORADO SPRINGS RANKS #81 IN THE Q2 FHFA HOUSE PRICE INDEX

Federal Housing Finance Agency, 5.30.23

The recently published FHFA House Price Index for first quarter 2023 lists Colorado Springs as #81 out of the top 100 in house price changes during that quarter. 

While we are still in the top 100, we fell 50 places from last year.  Our lack of available homes for sale has kept us from ranking considerably higher and I am hopeful that things are beginning to turn around in that area.

It should be noted that we are still ranked higher than Denver!  A definite plus and assuredly not lost on companies looking to relocate to Colorado.

Here is a copy of the Colorado Springs changes:

 

Here is the list of 100 measured cities in ranking order:

And, if you have any questions, you know who to call.

 

ERA SHIELDS MONTHLY STAT PACK 

Data through May 2023, ERA Shields real estate

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page and you can click here to get the report in its entirety.  

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, May 2023

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

To access the report, please click here and if you have any questions, please give me a holler.

May 24, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

SPRING BUYING AND SELLING SEASON STILL GOING STRONG

When I mentioned two weeks ago that April had been my busiest April in many years, I had no idea that May would be even busier.  And yet it’s true.  I know that the rest of the country is just starting to see a bit more Residential real estate activity, but here in the Colorado Springs area it appears we are moving steadily ahead.

There are several reasons for this, including a number of folks relocating here either for work or to be near family, new employers relocating to the Springs and bringing along their employees, and simply those who no longer want to put their plans on hold when it comes to selling to trade up or move to a new neighborhood.  

I’ve also run into situations recently where there have been multiple bids on properties my clients have wanted as well as offers over list price.  

A recent study by Bank of America shows that “U.S. homebuyers are still committed to their plans to buy a property despite rising interest rates, high inflation and slowing growth”.  The study also showed that “Gen Z and Millennials are showing extreme resilience even though the market is more competitive” and that “the dream of home ownership is alive and well despite the challenges”.  

More than half of those surveyed by BofA said they were looking to buy a house because they were tired of renting and the rent increases, as well as having the desire to start building equity in a home of their own.

This came as no surprise to me.  Having just celebrated my 51^st  year in the local Residential real estate arena, I’ve witnessed most every cycle imaginable and have seen mortgage rates as high as 21%.  And, as I have always maintained—there are always those who need or want to sell, and those who need or want to buy.  And my investment clients are constantly on the lookout for properties that will be good rentals for those who cannot, or chose not, to own.

I’ve found that price and interest rates are not a determent to those who have the wants, needs and budgets to invest in home ownership, either for themselves or to rent to others.

At one time folks from other, more expensive parts of the country were moving here and finding they could get a lot more home for their money, and for some that is still the case.  However, as more and more people locate here, and home prices continue to rise even though more realistically than in the most recent past, this is not always the case.

Colorado Springs is still in the top 10 of U.S. New and World Report’s “Best Place to Live” rankings of 150 metro areas, but we’ve dropped a few spots to number nine in part due to housing affordability and typical costs of goods and services.  We’ve simply become too popular for our own good so to speak. While those of us who already live here know how much our city has so much to offer…like it or not, once others discover that-- they want it too! 

I hope I’m getting across the point that if you have even considered or been waiting for the “right” time to sell and trade up or move to a new location or to buy for the first-time or for investment purposes, there’s no better time than NOW to start the process.  

Let’s sit down together to find what you are looking for.  I can help figure out how to put your individual wants, needs and budget requirements to the best use in finding what you and your family want and deserve. 

It all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  I look forward to talking with you soon.

 

THE BEST TIME TO SELL YOUR HOUSE IS WHEN OTHER’S AREN’T SELLING

Keeping Current Matters, 5.11.23

Keeping in mind that these statistics are national and as I just mentioned home sales here are picking up, there are still fewer homes for sale than are needed and it’s always a good idea to put your present home on the market when it’s favoring sellers.

Some folks are still waiting for rates to go down before listing their homes and while this “wait and see approach” is right for some, it also creates an opening for more eager sellers to jump in now.

If your present home doesn’t meet your current needs and you’re ready to move, NOW is a great opportunity for your home to stand out.  More buyers will be looking at your home and you could be one of the ones who get multiple offers like the ones I’ve recently seen—especially if you price your home right. 

As Lawrence Yun, chief economist for the National Association of Realtors (NAR) recently said: “Inventory levels are still at historic lows…Consequently, multiple offers are returning on a good number of properties.”

A word to the wise…getting your home noticed is far easier when there are fewer homes for sale, so this is something to consider if you’re wanting to get top dollar now.

  

THE WORST PRICE DECLINES ARE BEHIND US…. AN INFOGRAPHIC

Keeping Current Matters, 5.12.23

 

As I’ve mentioned again and again, ALL things Residential real estate are LOCAL…and while prices may have dropped significantly in various parts of the country during the last year, Colorado Springs did not see very much of that.  

And now, as I mentioned earlier, we are beginning to see multiple offers once again even and some of those over list price.

So, if you have put your plans to move on hold waiting to see what would happen with home prices, NOW is the time to act.  Not only are local prices NOT going down, they also appear to continue their upward trend.

To discuss whether this is the right time for your individual situation, please give me a call sooner than later.

 

U.S. HOMEBUILDER SENTIMENT ROSE TO A 10-MONTH HIGH IN APRIL…

Reuters, 5.17.23

With the shortage of available existing homes for sale, both here and nationally, new home construction is once again becoming a choice for buyers.  

According to the National Association of Home Builders Chairman Alicia Huey, “New home construction is taking on an increased role in the marketplace because many homeowners with loans well below current mortgage rates are electing to stay put, and this is keeping the supply of existing homes at a very low level”.  

Huey said that despite the rising optimism, builders are continuing to face challenges, including shortages of various building materials, to meet the growing demand for new homes.

While I personally have seen over the last year some various incentives from local home builders, including price reductions, this trend seems to be changing as more and more folks are choosing new construction.

In fact, several of my investment clients have chosen new construction for reasons such as the knowledge that a new home will likely require less maintenance and will attract more long-term, better qualified tenants than might an existing home for sale.

If new construction is something you are considering, you might be surprised that I can assist you in that as well.  I have long-term working relationships with various local builders and help you in site selection as well and most everything else to do with a new home.  Even more important, I can direct you to several lenders who can offer you terms best suited for your individual situation. 

And did I mention?  This is comes at no additional cost to you.  Just one of the many services I provide my clients.  

 

ERA SHIELDS MONTHLY STAT PACK 

Data through April 2023, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page and you can click here to get the report in its entirety.  

May 5, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

SPRING BUYING AND SELLING SEASON HAS HEATED UP EARLY… WITH NO SIGNS OF SLOWING DOWN

At the end of last year, I would never have predicted that the first quarter of 2023 would be so busy…but it was.  I had more closings during this first quarter than in the first quarter of the previous three years and it appears that things are just beginning to heat up.

There are numerous reasons for this, including a ramp up of corporate relocation, greater interest from my investor clients and several family members of friends and clients who are wanting to relocate here to be closer to them.

Whatever the reason, it has kept me as busy as ever and given me the opportunity to do the thing I most enjoy…helping families find just the “right” match for their wants, needs and budget requirements.  A house, as it’s said, is a “castle” or “safe haven”, and it gives me so much pleasure to see my clients happily ensconced in their new home.

As you will see from the statistics below, homes in the Colorado Springs area are holding their value much better than in some other areas of the country and I would expect them to do even better as the year moves on. 

Sales, while not as brisk as a year ago due to the quick rise in interest rates, are starting to increase and total active listings are up 64% over a year ago.  New listings are starting to rise as well, month over month, and I would expect that trend to continue.  And of most importance to sellers, homes are selling at just about their listing price and with fewer days on the market.  

Lenders have been lowering their mortgage interest rates, and apparently folks are taking advantage.  

And, as I have always said, there are always those wanting to sell and those wanting to buy…all for various individual reasons.  If you have even considered a move, either to sell and trade up, buy for investment purposes or for the first-time, now is the time to start considering your options.  

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling.  Fortunately, you’ve got me.  

My long-time experience, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Knowing what you want, need, and can afford is an important first step.  The second step is to contact me.

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

APRIL 2023

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

Here are some highlights from the April 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 36.  For condo/townhomes it was 27.  

Also in El Paso County, the sales price/list price for single family/patio homes was 99.8% and for condo/townhomes it was 99.4%.  

In Teller County, the average days on the market for single family/patio homes was 56 and the sales/list price was 97.9%.

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing April 2023 to April 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,495, Down 32.7%

·       Number of Sales were 1,090, Down 26.8%

·       Average Sales Price was $532,254, Down 5.3%

·       Median Sales Price was $459,000, Down 5.3%

·       Total Active Listings are 1,590, Up 64.1%

·       Months Supply is 1.5, Down 2.4%

 

Condo/Townhomes:

·       New Listings were 209, Down 15.7% 

·       Number of Sales were 140, Down 38.3%

·       Average Sales Price was $364,637, Down 6.0%

·       Median Sales Price was $350,000, Down 4.1%

·       Total Active Listings are 241, Up 205.1%

·       Months Supply is 1.7, Down 5.4%

 

APRIL 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 31.5%

 

• Median Sales Price for All Properties was Down 5.3%

 

• Active Listings on All Properties were Up 31.7%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

BUYER ACTIVITY IS UP DESPITE HIGHER MORTGAGE RATES

Keeping Current Matters, 5.3.23

As I mentioned earlier, buyer activity is picking up speed even with higher mortgage interest rates.  So, if you have wondered if this is a good time to sell your home this is great news.

Data from the latest Showing Time Showing Index, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below):

 

As you can see, the first two months of this year saw a noticeable increase in buyer traffic.  That’s likely due to the limited number of homes for sale keeping buyers looking for homes even during the colder months.

To see why this is significant, let’s compare this February with each February for the last six years (see graph below).  It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory!

 

During the last six years we saw the most February buyer traffic in 2021 and 2011 as you can see in green above, but those were highly unusual years for the housing market.  Therefore, if you compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.

This is even more noteworthy considering the increase in mortgage rates this past February.  The Freddie Mac 30-year fixed mortgage rate rose from 6.09% during the week of February 2^nd to 6.50% in the week of February 23^rd.  So, even with higher rates, more buyers were looking for a home.

Jeff Tucker, senior economist at Zillow, says the increased buyer activity could continue: 

 “More buyers will keep coming out of the woodwork.  We always see a seasonal uptick in home shoppers in March and April…”

So, if you’re looking to sell, this upward trend in active buyers should be very encouraging.  The sooner you meet with me to discuss how this can work for you, the sooner you can get your present home on the market.  

I look forward to discussing how we can make this busy spring buying season one that can work for you.

 

REASONS TO SELL YOUR HOUSE IN TODAY’S MARKET…INFOGRAPHIC.

KeepingCurrentMatters, 5.5.23

With spring buying season underway, there’s no better time than now to get started if you’ve even considered a move.  Inventory, while improved from a year ago, is still low and that’s why the number of offers on recently sold homes is on the rise.  

Call me sooner than later so we can discuss whether a move at this time makes the most sense for you and your family.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, April 2023

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

To access the report, please click here and if you have any questions, please give me a holler.

April 26, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

SPRING BUYING AND SELLING SEASON IS GEARING UP AND APPEARS TO BE BUSIER THAN PREDICTED

Yes, the year did start off a bit slow in terms of Residential real estate but the national housing “crash” that some predicted doesn’t look anything like a “crash”.  In fact, the last two months have been business as usual in our neck of the woods and it doesn’t appear to be slowing down as we enter what is traditionally the busiest time of the year.

David Auld, chief executive of home builder D.R. Horton, reported during the home builder’s earning call last week that “The spring selling season is off to an encouraging start” and that cancellation rates had fallen sharply since the prior quarter, and they expected to close sales on far more homes in the fiscal year than what analysts had predicted.  

Part of what is happening is that homes have become a bit more affordable…or rather a bit less unaffordable!  With mortgage rates lower than the November 2022 high of 7.08%, and home prices moderating as well, folks who have waited are now beginning their home search once again.

While the lack of existing home inventory is still a problem, the number of new homes coming on the market seems to have improved.  Realtor.com reported for the week ending April 15 that the number of homes listed for sale was 49% above that of the year earlier level.  

Many new home builders are offering incentives to lower buyers’ mortgage payments and various other incentives as well.  In fact, I recently helped one of my relocation clients purchase a newly built home and the home builder did indeed offer them an incentive to lower their mortgage payment, along with some other enticements.  It was an excellent opportunity for my client and since the home was close to being finished, it afforded them the opportunity to move in sooner than if the home had to be built from scratch.

Some economists are beginning to say that starting with this current quarter, housing could even begin providing a modest tailwind for the economy, in a small way helping to at least temporarily keep the recession so many expect at bay.  Time will tell, but that certainly is good for those of us in the Residential real estate market to hear. 

None of this means that this spring buying and selling season is likely to be as strong as last year’s, much less the blowout of 2021.  However, housing is not likely to be the drag on the overall economy that it has been in recent quarters.

From my personal perspective, April has been as busy as almost any April. I’ve sold homes to several relocation clients and even sold one to clients that saw the home in person for the first time when they moved in!  Yes, you read that right.  My client could not take the time to come house shopping in person so when they looked at some listings that I had sent, they asked me to go to the homes and FaceTime them while showing them the home.

Knowing what my clients were looking for provided me with the ability to find a home that I knew would meet their needs, wants and budget requirements.  I’m happy to report they and their fur baby are happily ensconced in their new home and my client is already back at work on her relocated job in the Springs.  Just another day in the Residential real estate relocation business and I sure do like those “happy” endings.  

After all, that’s why I do what I do.  I am not called “The real estate Therapist” for nothing.  It’s a title I earned through my more than 51 years working in the local real estate arena.  I spend all the time necessary to find out about my clients and their families so that when I pair that with their wants, need and budget requirements I know exactly where to being the search for what I believe will check all those boxes.

I guess you could also call me a “matchmaker” of sorts in that I try my best to match the right home to the right buyer. Over the years I’ve learned that more important than making a “sale”—it’s far more important to make a “friend”. I’m happy to say that at this stage of my career it’s giving me great pleasure to be helping the children and sometimes even grandchildren of original clients in purchasing their homes.

If you’ve been waiting for the “right” time to sell and trade up or move to a new location or to buy for the first-time or for investment purposes, there’s no better time than NOW to start the process.  Together we can find exactly what you are looking for.

And it all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  

I hope to hear from you soon.

 

THINK TWICE BEFORE WAITING FOR LOWER HOME PRICES

KeepingCurrentMatters, 4.17.23

As I just told you, the “crash” on the horizon that kept some potential buyers away from the market just didn’t materialize.  In fact, a recent survey from Zonda showed “53% of millennials are still renting right now because they’re waiting for home prices to come down”.

But here’s the thing.  The most recent data shows that home prices appear to have bottomed out and are now on the rise again.  Selma Hepp, chief economist at CoreLogic reports: “U.S. home prices rose by 0.8% in February…indicating that prices in most markets have already bottomed out.”

The graph below compares home price trends in November 2022 to those in February 2023:

 

 

So, once again, if you are asking yourself if you should keep waiting until prices come down you might find yourself waiting a very long time.  Data shows that prices are increasing, not decreasing, in much of the country, and more especially in places like Colorado Springs where so many want to relocate.  

The latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023.  

Bottom Line?  Better to call me sooner than later if you’ve been waiting for prices to drop.  You’ll be that much ahead of the game if you buy now before prices begin to rise even more over the next year.

 

HOME INSPECTIONS FOR SELLERS….AN INFOGRAPHIC

Keeping Current Matters 4.14.23

 

Bottom Line:

Inspections are a major part of the home selling process.  During the frenzy of the past several years, many buyers used to waive inspections to be more competitive with the offer, but in recent times home inspections are becoming popular once again.

I can help you determine what repairs and updates need to be made prior to listing your home to make the whole process go smoothly.

 

HARRY’S JOKES OF THE DAY: 

 

 

April 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

   A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

FIRST…LET ME WISH ALL WHO CELEBRATE A VERY...

THE COLORADO SPRINGS housing market IS SHOWING SIGNS OF IMPROVEMENT…A TESTAMENT TO THE STABILITY OF OUR MARKET AND EXCELLENT ECONOMIC OUTLOOK

When you look at the statistics below you don’t really see the “true” picture.  Yes, home prices are just slightly down from a year ago and sales were down year-over-year, but…sales were UP over the previous month and were the most recorded since last October.

It’s important to remember what’s driving the prices and number of sales and that’s the mortgage interest rate.  The interest rate rose faster than ever before and created problems for both buyers and sellers.  With rates stabilizing (or “normalizing” as I prefer to say), folks are beginning to adopt creative ways to both buy and sell.

It’s the spring buying season…something we didn’t see for several years when homes were selling at a record pace all year round, with bidding wars and multiple offers on day one of a listing.  That was not only unrealistic, but it also created a frenzy that I had never seen before and hope to never see again.

I’ve been in Colorado Springs Residential real estate for 51 years this week and one of the pleasures of my job is getting to know my clients well.  The more I know about their wants, needs and budget requirements, the better I can help to find the property that fits them and their family best.  

After all, when a home is often a family’s largest financial asset, it’s essential to find the right fit.  And, of course, a home is a family’s “safe haven”, and it needs to satisfy the needs of all family members if possible.

During the last several years when interest rates were historically low and available home for sale were at an all-time low, buyers were at a distinct disadvantage and the actual process was not enjoyable.  Oftentimes buyers had to settle for less than they wanted just to get a home.  That turned what should be a happy time into one that at times was a little less so.

That’s why I celebrate today’s market.  Yes, rates are higher than the last several years, but in reality, they are almost “normal”.  As I’ve mentioned before, my first home had a mortgage interest rate of 8.5%.  And I’ve seen them as high as 19%.  They are going down slowly, and in fact went down for the fourth straight week yesterday to 6.28% per Fannie Mae.  Considering it was a two decade high of 7.08% last fall, seeing the rate decrease is good news.  

With several large companies looking to relocate to the Springs and others expanding, I expect to see our home values to continue to hold their own and slowly increase and as more homes come on the market. I also expect sales to continue to rise.

There are always those wanting to sell and those wanting to buy…all for various individual reasons.  If you have even considered a move, either to sell and trade up, buy for investment purposes or for the first-time, now is the time to start considering your options.  

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling.  Fortunately, you’ve got me.  

My long time experience, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Knowing what you want, need, and can afford is an important first step.  The second step is to contact me.

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

MARCH 2023

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

Here are some highlights from the March 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 45.  For condo/townhomes it was 32.  

Also in El Paso County, the sales price/list price for single family/patio homes was 99.3% and for condo/townhomes it was 99.6%.  

In Teller County, the average days on the market for single family/patio homes was 84 and the sales/list price was 98.2%.

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing March 2023 to March 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,414, Down 22.9%

·       Number of Sales were 1,075, Down 21.0%

·       Average Sales Price was $523,972, Down 2.9%

·       Median Sales Price was $460,000, Down 3.2%

·       Total Active Listings are 1,480, Up 109.9%

·       Months Supply is 1.4, Down 5.2%

 

 

Condo/Townhomes:

·       New Listings were 204, Down 12.8% 

·       Number of Sales were 162, Down 34.9%

·       Average Sales Price was $356,192, Down 6.7%

·       Median Sales Price was $340,000, Down 6.8%

·       Total Active Listings are 236, Up 218.9%

·       Months Supply is 1.5, Down 6.3%

 

MARCH 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 24.1%

 

• Median Sales Price for All Properties was Down 2.4%

 

• Active Listings on All Properties were Up 64.3%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

THE KEY ADVANTAGE OF INVESTING IN A HOME…INFOGRAPHIC

KeepingCurrentMatters, 4.7.23

 

THE BEST TIME TO LIST YOUR HOUSE IS ALMOST HERE

KeepingCurrentMatters, 3.27.23

If you’re thinking of selling this spring, it’s time to get rolling…. the best week to list your house is quickly approaching.

Experts at realtor.com considered trends from recent years (excluding 2020 as an odd year due to the pandemic) and determined the ideal week to list a house this year:

“Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2023 is fast approaching.  The week of April 16-22 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”

So, if you’ve even considered selling, now is your best opportunity.  However, before you put your home on the market you need to get it ready.  If you haven’t started that process yet, you will need to move quickly.  

First, give me a call so I can make suggestions that will help you determine what needs to be done in order to put your home in the best light.

In February, realtor.com asked more than 1,200 recent or potential home sellers what updates they ended up making to their home prior to listing it. The graph below shows their answers:

 

As you can see, the most common updates included landscaping and painting.  

Bottom Line?  If selling your home this spring is a consideration, please contact me sooner than later so we can get your home ready to sell during prime buying and selling season.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, March 2023

As always, I like to share the wonderful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners, however, I think you will all find it worthwhile reading.

To access the report, please click here and if you have any questions, please give me a holler.

 

HARRY’S JOKE OF THE DAY:

 

March 24, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

HOMEOWNERSHIP IS A LONG-TERM INVESTMENT…AND OFTEN YOUR GREATEST ASSET

Several nights ago I had dinner with some long-time friends who also happen to be long-time real estate brokers.  It was a social evening but naturally the talk eventually came around to the real estate market and how we and our clients are handling the “new normal”.

We discussed the higher mortgage loan interest rates and chuckled over the fact that we all had purchased first homes at rates considerably higher than they are today.  I related that I was happy when rates fell from 9% to 8.5% prior to closing on my first new home. 

Several of us remember the days of 12% VA loans and rates as high as 18%.  So to us, 6% or 7% isn’t “high”.  And maybe it was good that we started buying and selling homes when rates were so high so that we could appreciate the lower rates that eventually came to be.

However, as you might imagine, the prices of those first homes were as low as $25,000.  And to us at that time, with the higher interest rates, our monthly payments were “high” in comparison to our income.

The one thing we all agreed on was that no matter what—homeownership contributed to our own personal wealth, and it continues to do so.

Residential real estate is a long-term investment and one that most always helps increase personal wealth.  It provides tax benefits and is certainly far better than renting if at all possible for so many reasons.

The Pikes Peak Association of Realtors (PPAR) started keeping track of local sales in 1985 and I calculated the “average” sales price increase from 1985 to this month and it is 7%.  When you consider how many various Residential real estate “cycles” this covers you can see what a fabulous long term investment homeownership is while at the same time providing you and your family a place to call “home”.  

Another thing we discussed at dinner was how many different cycles we have seen over the years and how we’ve all found creative ways to help our clients succeed with their buying and selling wants and needs.

This just reinforced what I’ve been telling you forever.  It’s so very important to have a seasoned, knowledgeable professional in your corner when you are buying or selling Residential real estate, either for the first time, to sell and trade up or for investment purposes.  

Fortunately, you have me.  My almost 51 years in the local arena, coupled with my Investment Banking background, give me a heads up on the competition.  I spend the time to find out the individual wants, needs and budget requirements of each and every client.  I do the homework to make sure you find the neighborhood that’s just right for you and your family.

That’s why I’m still working…and I don’t consider it work…I consider it a privilege …when I help past clients, their children and sometimes lately their grandchildren realize their Residential real estate dreams.

Yes, it’s a different market than it was a year ago and 50 years ago, but together we can navigate it and find the right fit for you.

And it all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  

I hope to hear from you soon.

 

HERE’S WHY THE housing market ISN’T GOING TO CRASH…AN INFOGRAPHIC

KeepingCurrentMatters, 3.22.23

I get asked time and again about the 2008 housing market crash and how it compares to today’s market.  To begin with, Colorado Springs did not get hurt as badly as the rest of the country back then and I don’t expect it to experience any great market swings at present, either.  

Yes, interest rates are higher and home prices are not appreciating as much as they did over the last several years, but that’s not necessarily a bad thing.  It’s simply the market “normalizing”, as I kept telling you it would. 

While I don’t expect we will see the 2% or 3% interest rates again, I do expect them to go down from today’s rate.  Remember, this is the fastest time ever that rates accelerated but they couldn’t stay that low forever.  The buying frenzy those low rates created was not fun for anyone looking for a home and today buyers are able to take a little more time to find the “right” home for them.  

With today’s high inflation, it’s time to come to terms with the fact that higher rates are here for the foreseeable future. However, as I mentioned earlier, they’ve been a lot higher, and folks were still buying homes.  There is always someone who needs to buy and someone who needs to sell, and there are ways to make it work for each.

The infographic below gives you greater detail about why things are different today than they were in 2008:

 

 

HOME PRICES FELL IN FEBRUARY FOR THE FIRST TIME IN 11 YEARS

The Wall Street Journal, 3.21.23

And now some good news…

With the first year-over-year drop in home prices in more than a decade and a dip in the mortgage rates, the yearlong streak of declining monthly home sales has snapped, showing the effects of the Federal Reserve’s campaign to raise interest rates.

Nationally, sales of previously owned homes, which constitute most of the housing market, rose 14.5% in February from the prior month, but were down 22.6% from a year earlier, according to the National Association of Realtors (NAR).  Sales had decreased for 12 consecutive months through January.

Buyers benefited from a slight improvement in affordability as home prices were slightly lower and interest rates eased from a 20-year high last fall.

If you’re wanting to step into the spring buying season to test the waters, give me a call sooner than later and let’s see how we can make all of this work for you.

 

NEW HOME CONSTRUCTION COULD PROVIDE SOME INCENTIVES FOR BUYERS

The Wall Street Journal, 3.10.23

New home builders today are facing a number of challenges from high construction costs to rising interest rates and buyer concerns about job security and inflation.  According to the National Association of Home Builders, (NAHB), sales of newly built single-family homes last December increased by 2.23% due largely to builder incentives and lower mortgage rates.  But sales were still down 16.4% compared to December 2021.

To stimulate sales, 57% of builders offered some type of incentive in last month, from mortgage interest-rate buydowns to closing-cost credits to free upgrades and options, while 31% reduced home prices, according to NAHB.

What that means is that savvy buyers who know what to look for and what to ask can find deals, particularly ones willing to pay cash or close quickly.

Again, you fortunately have me in your corner when it comes to new home construction as well.  I have great relationships with a number of local homebuilders and can help you navigate those waters as well—all at no additional cost to you.

If this is something you want to explore, give me a call and let’s see how to make it happen.

 

HARRY’S JOKE OF THE DAY: