Real Estate Information Archive

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THE FEDERAL TAX CREDIT FOR HOMEBUYERS INCREASED SALES …BUT, DID IT CHANGE REALITY?

On May 24, 2010, in an article by Kelly Evans, the Wall Street Journal pointed out that the recent federal Homebuyers’ tax credit did, in fact, stimulate the sale of residential real estate. Home sales in April, the last month for the tax credit, were up 5% from March. The Commerce Department was expected to say that new-home sales climbed 3% in April, after a 27% surge in March, to a 423,000 annualized pace.

On the other hand, the Mortgage Bankers Association’s latest weekly index of purchase applications plunged 27% to its lowest level since records began in 1997, despite falling borrowing rates.

Some ‘experts’ are recommending an extension of the federal tax-credit as a means of stimulating more residential home sales. They reference the federal “cash for clunkers” programs as an example of how such federal support money can stimulate activity within an industry. However, as the WSJ points out, there is a significant difference between the recent tax credit for Homebuyers and the ‘cash for clunkers’ program. In the ‘clunkers’ program, the vehicles that were turned in to obtain the “discount” on the purchase of new vehicles were scrapped and thus removed from the national inventory of vehicles. The tax credit for Homebuyers, however, although it did result in the sale of 1 million units, did not ‘scrap’ any houses and, thus, did not reduce the national inventory of houses.  Inventories of existing homes are still elevated and the rising rate of delinquencies and foreclosures ensures a steady stream of supply that will keep downward pressure on prices for some time to come. In other words, the tax credit program, rather than fixing the problem, may have only delayed the inevitable. Speaking of foreclosures and short sales, let’s consider the following.

WHY CALL THEM “SHORT SALES” WHEN IT TAKES SO LONG TO COMPLETE THEM???

During our current housing crisis, the real estate community has tried valiantly to dispose of the foreclosures and short-sale properties that have dragged down property values in most parts of the country. Only by “clearing the table” of these artificially depreciated properties as quickly as possible will real estate prices be able to again reflect their true market value. During this time of readjustment, however, it has become increasingly apparent that the biggest bottleneck in the process of selling-off these properties has been the slow reaction time of many banking institutions that postpone, delay, dither and quibble over valid offers for these properties. The result of this unnecessary delay in the selling process is that, too often, the prospective buyer gives up on the project and chooses to invest his money elsewhere.  

In an attempt to alleviate this problem, we have prepared a Press Release urging some of the more influential business journals throughout the nation to support some simple, sensible, new, federal regulations that would require Mortgage lenders and Realtors to provide a consistent level of service and reaction time to all parties involved in the sale of foreclosures and short sale properties. The basic requirements of these proposed regulations would be that:

• Foreclosure and Short Sale offers must be completely processed within a specified time period (e.g. 45-60 days)
• Lenders must publicize their processing time for new, foreclosure and Short Sale offers
• Lenders must establish a standardized list of procedures, requirements and deadlines for all parties involved in an offer for new, foreclosed or short sale properties
• Lenders must be subject to specific penalties, should they fail to meet the deadlines established in the regulations

We think these reasonable requirements for Lenders would greatly simplify and expedite the disposal of these distressed properties and would help the market to more rapidly re-establish realistic real estate prices throughout the nation.

If you would like to get involved in this effort, please give us a call.

MORTGAGE LOAN RATES FALL BELOW 5%

On My 24, 2010, the Wall Street Journal reported that, contrary to all expectations, home mortgage loan rates have gone down to the lowest levels of the year and back near 50 year lows.

How can this be?? We were told that the Fed’s withdrawal from mortgage-securities purchases would trigger a rise in interest rates. Instead, there seems to be plenty of money available for mortgages and, as a result, rates are falling. As one Realtor stated in the article, “It’s schizophrenic. We all had this expectation of higher interest rates and no more refinances. But I just locked in a 30 year loan with a 4.25% fixed rate …the lowest in my 24 years in the business”.

Where did all this mortgage money come from? Hold on to your hats !!! It’s from foreign investors who are pulling their money out of the shaky European economy and investing it in U.S. Treasury bonds. This massive wave of cash pushed down yields on Treasurys and, thus, pulled down mortgage yields, which are closely pegged to yields on 10 year Treasury notes.

These lower rates could widen the pool of people who qualify for a mortgage, while others may find they qualify for a slightly larger loan. “They can buy the place with the extra bedroom or the swimming pool” says Jay Brinkman, chief economist at the Mortgage Brokers Association.

Keep in mind that nearly half of all borrowers with 30-year conforming fixed-rate mortgages have mortgage rates of 5.75% or higher and could reduce their rates by a full point if they refinanced at current rates, according to investment bank Credit Suisse.

What does this all mean to prospective Homebuyers and Refinancers? Well, a 1% decline in mortgage rates for a $400,000 home can cut $250 off the monthly payment. So, if only 10 million of those 5.75% mortgage owners refinanced, it would pump an additional $2,500,000.000 back into the economy every month. What an ironic solution that would be to our economic problems !!!

Remember, although these rates are the lowest since the 1960s, they won’t last forever. Give us a call to discuss buying or refinancing your home. It might be the best opportunity you will ever have.

AND ANOTHER THING !!!

Colorado Springs continues to look good.

We just returned from the semi-annual meeting of the relocation Directors’ Council in Orlando, FL, where we were heartened to hear that Colorado Springs is in much better shape than most of the other major metropolitan areas in the country. After listening to reports from our colleagues from around the nation, it is obvious that the communities which are recovering the fastest from the recession are the ones which are offering incentives to attract businesses and are encouraging their businesses to offer innovative benefits to consumers. America was built on innovation and it’s time we all start expanding on that concept.

And, have you run into this before?

As we checked into the relocation Directors’ Council meeting, we were handed a FlashDisk containing a compendium of all of the meeting’s seminars. What a great learning aid. It sure was better than trying to take notes at every seminar.

Another example of Innovation in Action

We recently subscribed to Smarter Agent, an innovative new service for Realtors. This program allows us to display listing information on properties within any specified area in the country. It uses GPS to access the MLS listings and mortgage information nationwide and display them on our Blackberry. If our client wants even more detailed information, our CyberHomes program can generate a 10 page report on specific properties. The Smarter Agent program will also enable us to assist our incoming relocation clients with the sale of their homes, regardless of where they are moving from. Ten years ago, nobody dreamed that these innovative programs would be available, and now, I’ve actually turned into a full-fledged “real estate Geek”. Whooda thunk it?  

HERE’S AN OLD CHINESE PROVERB THAT WE JUST MADE UP 

“Unemployed people do not buy houses”.

Therefore, the answer to our present real estate problems is Job Creation. Local, State and Federal governments, please take note !!!

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

15 things we wouldn’t know if it wasn’t for the movies 

1. The ventilation system of any building is the perfect hiding place. No one will ever think of looking for you in there, and you can travel to any other part of the building you want without difficulty.
2. You're very likely to survive any battle in any war unless you make the mistake of showing someone a picture of your sweetheart back home.
3. Should you wish to pass yourself off as a German officer, it is not necessary to speak the language. A German accent will do.
4. A man will show no pain while taking the most ferocious beating but will wince when a woman tries to clean his wounds.
5. If staying in a haunted house, women must investigate any strange noises in their most diaphanous underwear, which is just what they happened to be carrying with them at the time the car broke down.
6. If a large pane of glass is visible, someone will be thrown through it before long.
7. If someone says, "I'll be right back", they won't.
8. Computer monitors never display a cursor on screen but always say:
   Enter Password Now.
9. It is not necessary to say hello or goodbye when beginning or ending phone conversations. And none of your friends have to knock when they come for a visit.
10. Even when driving down a perfectly straight road, it is necessary to turn the steering wheel vigorously from left to right every few moments.
11. All bombs are fitted with electronic timing devices with large red readouts so you know exactly when they're going to go off.
12. A detective can only solve a case once he has been suspended from duty.
13. If you decide to start dancing in the street everyone around you will automatically be able to mirror all the steps you come up with and hear the music in your head.
14. Police departments give their officers personality tests to make sure they are deliberately assigned a partner who is their total opposite.
    
    And last but not least 
15. When they are alone, all foreigners prefer to speak English to each other.

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

THE LATEST STATISTICS ON HOME SALES ARE ENCOURAGING

This past week, the National Association of Realtors published their quarterly report on “Median Sales Prices of Existing, Single-Family Homes for Metropolitan Areas”. This report looks at every multiple-listing sale within 152 major metropolitan areas, or, in this case, 5.14 million sales (annually adjusted). These figures show that the Colorado Springs real estate market has outperformed most of the other markets in the country.

The bottom line is that the “Relative Strength” of the Colorado Springs housing economy looks great !!!

Some of the highlights of the report were:

·         Colorado Springs 1^st Quarter 2010 vs. 2009 = +2.7%

·         91 out of 152 national areas showed higher 1^st quarter median sales prices in 2010 vs. 2009

·         29 markets had double-digit increases, 3 were unchanged, while 58 had price declines

·         In the 4^th quarter of 2009, 67 metro areas reported gains, while, in the 3^rd quarter of 2009, only 30 showed gains

·         Distressed homes (which are discounted by 15%) accounted for 36% of total sales

·         National 1^st quarter sales in 2010 were 11.4% over 2009

These figures confirm the fact that many recent Homebuyers were motivated to take advantage of the recently-expired federal tax credit and decided to get off the fence, not only here, but nationwide.

As Lawrence Yun, Chief Economist for NAR recently pointed out,” We have been seeing this flattening of home prices in all areas lately. The tax credit was very effective in drawing down excess inventory, with about 1 million additional sales resulting directly from the stimulus”.   

These numbers demonstrate that the entire nation is seeing this recovery. And, the current prospects for our local investors look even better. Our local sales in April were up 11.9% over 2009. Our average sales prices were up 4.7%. Our median sales prices were up 4.2% and our Active listings were up 2.8% over 2009…. So, what does this mean to you, a Colorado Springs Homeowner, a current or prospective investor , or someone just sitting on the fence? It means that we have more opportunities for you right here in Colorado Springs than they have in any other part of the country.

As we shared with you in previous issues, a monthly comparison of April 30, 2010 compared to April 30, 2009 shows:

·         Local sales are up 11.9%

·         Average sale prices are up 4.7%

·         Median sale prices are up 4.2%

·         Active listings are up 2.8%

With low, 30 year-fixed rates still available (4.875% for owner-occupied, 5.25% – 5.5 % for non-owner occupied) and the ability to reduce these rates even further for 15 year mortgages (typically, .25% - .375% lower), it’s a great time to buy. Give us a call.

COLORADO HAS CALIFORNIA WORRIED

The following article by Jan Norman. staff small-business columnist, was published in the Orange County Register on May 13th, 2010.

“An average of 15 to 20 companies move from other states to Colorado Springs every year and 30% are from Southern California, said Dave White, executive vice president of marketing for the Colorado Springs Regional Economic Development Corp. “ Approximately 60 Southern California companies are currently looking at Colorado Springs for a possible relocation”, he added.

A couple of the most recent California catches are Billet Racing Products that moved from Laguna Niguel in September, and Corinthian Colleges in Santa Ana that just opened an enrollment center in Colorado Springs that will employ 600.

I called White because my recent update of California companies leaving the Golden State included half a dozen that landed in Colorado Springs. Readers demanded to know why, and rightly so.

It was a softball question that White teed it up and crushed it.

‘Every state in America is focusing on California,’ he said. ‘It’s low hanging fruit’ for those assigned to develop their local economies and add jobs.

Remember, he promotes Colorado Springs for a living but, he’s a Southern California transplant and professes to love California and Disneyland. But business is business.

Here are some of his favorite selling points for California firms to move to Colorado Springs :

• California’s top income tax is 10.55%; Colorado’s is 4.63%
• California’s top corporate income tax is 8.84%; Colorado’s is 4.63%  based only on sales within Colorado
• Colorado’s worker’s compensation insurance costs 25% what California businesses pay
• Colorado Spring Utilities’ electricity rate is 4.5 cents per kilowatt hour; Southern California Edison’s is 10 cents
• Colorado Spring’s property tax rate is 0.4% to 0.5% of real value depending on location; Orange County’s is 1% (or more for Mello Roos fees, for example)

‘My wife and I laugh that the only thing cheaper in California is the citrus,’ White said.

Colorado Springs comes looking for companies to lure away from the beaches and sun and Disneyland, he admitted.

‘We do have a campaign. We think Colorado Springs is a good match for companies seeking to relocate. We can’t compete with southern states that throw millions of dollars in incentives and tax breaks at big projects. Our sweet spot is small to mid-sized companies where the owner moves with the company. They’re driven as much by lifestyle as by incentives.’

And the city is getting ready for another California campaign, but White wouldn’t disclose details. (Nevada is preparing another campaign too, but that’s another story.)

Unlike Virginia and Texas, which have been running television commercials in Southern California, and Nevada, which regularly runs newspaper ads and billboards, Colorado Springs tends to send direct mail to company owners.

‘They did fly a plane over Los Angeles on Valentine’s Day pulling a banner that said ‘Colorado Loves LA,’ but that was Metro Denver and the state, not us,’ White said.

Colorado does offer incentives to relocating companies, but they don’t receive them until they create new jobs, White said. For example:

• The state and city may give as much as $5,000 per job plus tax credits.
• The city might rebate the property tax up to $800 per job.
• The legislature just passed an additional $2,500 per job credit against the corporate income tax.

‘We also have asked private entities to provide incentives,’ he added. ‘A country club might waive the membership fee, or the health clubs might give six months free membership. We have a pass to various tourist sites. We don’t have the beaches but we do have Pikes Peak.’

And when business executives come to check out the town, the governor, mayor and civic and business leaders show up to greet them, White added.

Does Arnold do that?” (End of article)

Well we’re sorry, California, but, as you pointed out in your article, business is business. But, you still have Disneyland.

Unfortunately, California is a living example of the fact that you can’t get more eggs by killing the chicken.

Speaking of chickens, we’re not trying to be Chicken Little, dashing around screaming, “The Sky is falling, the Sky is falling”, but we thought that any of our readers who own a house, or are trying to buy or sell a house would be interested in the following article.

A LICENSE REQUIRED FOR YOUR HOUSE ???

If you think the housing market is depressed now, wait until you read the Cap and Trade Bill (H.R. 2454) that has passed the House of Representatives and is now being considered by the Senate. The Bill requires that, beginning one year after enactment of the Cap and Trade Act, you won't be able to sell your home unless you obtain a federal license and retrofit your home to comply with the energy and water efficiency standards of H.R. 2454. This will represent one of the largest tax increases any of us has ever experienced.

The Congressional Budget Office estimates that in just a few years the average cost to every family of four will be $6,800 per year. No one is excluded. 

But wait. This awful bill has many more surprises in it. Probably the worst one is this: A year from now you won't be able to sell a home without the permission of the EPA Administrator. Even pre-fabricated homes ("mobile homes") and commercial buildings are included.

To obtain this permission, you will have to have the energy efficiency of your home measured. (Sect. 202 - Building Retrofit Program). After the government notifies you what your retrofit energy efficiency requirement is, you will be required to make specified modifications to your home under the retrofit provisions of the Act. (Note also that the EPA administrator can set higher standards at any time, even above the automatic energy efficiency increases which are already built into the Act.)

After the initial inspection and retrofit, you will have to get your home measured again and get a license (called a "label" in the Act) which must be posted on your property to show what your efficiency rating is; sort of like the Energy Star efficiency rating label on your refrigerator or air conditioner. If you don't get a high enough rating, you will not be allowed to sell.

Keep in mind that the requirements in the bill have been set low initially so the bill would be able to get through Congress. After passage, however, the Administrator is permitted to set higher standards every year.

The Act also allows the government to give homeowners who meet certain energy efficiency levels a grant of several thousand dollars to comply with the retrofit program requirements. As always, the government will determine who qualifies to receive these grants. Based upon the exemptions allowed in other such government programs, we can expect these grants to be awarded only to those who “don’t have an income of more than $50K per year", or "whose home selling price is not more than $125K". Thus, low income Homeowners will get a tax refund to offset the cost of this new program and, when this happens, the $6,800 estimated cost to the average taxpayer will go even higher, in order to “bail out” those who qualify for the exemption.

Sect. 204 - Building Energy Performance Labeling Program establishes a labeling program that will identify the achieved energy efficiency performance for "at least 90 percent of the residential market within 5 years after the date of the enactment of this Act." The EPA administrator will get $50M each year to enforce the labeling program and the Secretary of the Department of Energy will get an additional $20M each year to help the EPA.

Homeowners will be required to post the BEPL label in a conspicuous location in the home and will not be allowed to sell their home without having this label. And, as with all licensing programs, the Homeowner will probably be required to obtain a new label on a regular basis, possibly every year.

 The government estimates the cost of measuring the energy efficiency of your home should only cost about $200 each time. (When the California auto smog inspections first started, they were projected to  cost only $15. The current price for that program’s inspection and certificate is $50, a 333% increase).

This bill is an absolute type of a “taking away” of private property rights of every homeowner in the U.S. We believe that any type of implementation of this bill will dramatically decrease a Homeowner’s ownership rights. We have been vested with as Americans.

Will this bill help get America back on track? Well, as we pointed out, above, you can’t get more eggs by killing the chicken.

We recommend you call or contact your friends in Washington to vote against this bill.

CHECK OUT the following relating to this new, proposed law; 

HR2454 American Clean Energy & Security Act:   http://www.govtrack.us/congress/bill.xpd?bill=h111-2454

San Francisco Examiner OpEd, May 16, 2010
http://www.sfexaminer.com/opinion/columns/oped_contributors/Cap-and-trade-is-a-license-to-cheat-and-steal-45371937.html

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 pollster was working outside the United Nations building in New York. He approached three men: a Texan, a Californian and a New Yorker. "Excuse me." he said. "I would like to ask your opinion on the current meat shortage." The Texan replied, "Excuse me, but what is a shortage?" The Californian asked, "Excuse me, but what is meat?" The New Yorker replied, "What is 'Excuse me'?"

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

SINGLE-FAMILY PERMITS UP ALMOST 70% FROM '09

 In their May 4, 2010 issue, the Gazette reported that the pace of home construction continued to improve in the Colorado Springs area, while the number of new foreclosure filings eased slightly.

Single-family building permits totaled 127 during April, a nearly 70% increase compared with the same month last year. For the first four months of this year, single-family permits totaled 535, about twice as many as the same period in 2009.

These numbers are significantly lower than those from a few years ago when monthly permits routinely totaled several hundred, but they are getting back on track and should hopefully reach 2000 permits in 2010.

Local Home sales totaled 792 in April of 2010, an increase of 11.9% over April of 2009. Median home prices rose to $187,500, an increase of 4.2% from April of 2009. This marks the sixth straight monthly rise in prices and the tenth straight monthly increase in sales. It is also encouraging to note that the sale prices for these homes averaged 98% of their listed prices.   

The inventory of local homes for sale increased 2.8% in April, however, mortgage rates remain low and the Homebuyers' tax credit will still be available to soldiers returning to Ft. Carson from Iraq and Afghanistan. Foreclosure rates are also declining. All of this is good news for Sellers. The bad news is that many homeowners who were unable to sell their houses last year and who took their homes off the market may re-list this year, thus increasing the competition. In fact, there has been a 2.8% increase in the number of listings since April, 2009.

And, don't forget, even if you're not involved with buying or selling a house, you are deeply impacted by our real estate market. As we pointed out last week, every home sale results in approximately $11,000 in new taxes. So, 2000 building permits results in $22 million income available for schools, police, firefighters, road repairs, etc.  

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. 

AND, BY THE WAY..

Wells Fargo says the recovery is clipping along

In a speech attended by about 400 Colorado Springs bank clients and business leaders at the Antlers Hilton last week, we were encouraged to hear Jim Paulsen, chief investment strategist for Wells Fargo Capital Management predict that "the worst is over". He stated that the U.S. and global economies have been recovering for several quarters and that recovery will grow faster and last longer than the average economic recovery since World War II  

Mr. Paulsen said that recovery will be stronger and more sustainable because the financial market, businesses and consumers prepared for a depression and instead were hit by a less-severe recession.

"Fear of a Depression caused businesses and consumers to stop spending. That resulted in low interest rates, massive federal spending, deep cost-cutting and the hoarding of cash by consumers. All of which are now providing fuel to keep the recovery going" Mr. Paulsen said.

So, it turns out that "Fear" is the antidote for "Greed". Whooda thunk it ??

Homeownership declines, but that's good news for investors

On May 7, 2010, the U.S. Census Bureau and the Department of Commerce reported that the nation's Homeownership rate fell to 67.1% in the first quarter. The rate has not been that low  since the first quarter of 2000. The Homeownership rate reached its peak in 2004, when it was 69.2% for both the second and fourth quarters.

A big factor in this reduction in Homeownership is the increase in Foreclosures and Short sales. As always, "One man's meat is another man's poison". This reduction in Homeownership results in an increase in potential renters looking for high-quality rentals.

Combine the increase in potential renters with the low mortgage interest rates now available for investors (the interest rates for non-occupied properties are now about 5 ¾%) and you have the receipe for a successful real estate investment. Give us a call to discuss this opportunity.  

Risk wanes for real estate price declines

The risk of home-price declines decreased in 93% of the 384 markets tracked at the end of last year by analysts with PMI Mortgage Insurance Co., although half still showed an elevated or high risk of depreciation.

Overall risk of price declines "decreased dramatically" during the final three months of 2009, PMI said, largely because of improvements in affordability, and declining foreclosure starts. Affordability was helped by falling home prices, lower mortgage rates and increasing personal income.

Risky mortgage lending practices and loan products decreased sharply in 2009 "and are hardly present at all in 2010 lending" the report said.

Although Colorado Springs was not one of the surveyed markets, we have consistently been cited as one of the cities most likely to recover quickly from the recession, as opposed to states like Florida and Nevada, which still showed a 90% or greater chance of further price declines, according to the survey.  

That $10,000 kitchen remodel might only get you $3,000 when you sell !!

When preparing to sell your home, remember that upgrading your home does not necessarily require making major "improvements". Be cautious about investing in "improvements" that will not increase the marketability of your home. For example, putting in a swimming pool in Colorado may actually reduce the market value of your home. We have even heard of Sellers who had to fill in their pool, just to get prospective Buyers to look at their property. We can give you a pretty good idea of what your proposed remodeling project will do to the price of your home. Give us a call, before you decide to remodel.

JOKE OF THE WEEK

A blonde, wanting to earn some money, decided to hire herself out as a handyman-type and started canvassing a wealthy neighborhood. She went to the front door of the first house and asked the owner if he had any jobs for her to do.

"Well, you can paint my porch. How much will you charge?"

The blonde said, "How about 50 dollars?" The man agreed and told her that the paint and ladders that she might need were in the garage. The man's wife, inside the house, heard the conversation and said to her husband, "Does she realize that the porch goes all the way around the house?"

The man replied, "She should. She was standing on the porch."

A short time later, the blonde came to the door to collect her money.
"You're finished already?" he asked. "Yes," the blonde answered, "and I had paint left over, so I gave it two coats. "Impressed, the man reached in his pocket for the $50. "And by the way," the blonde added, "that's not a Porch, it's a Ferrari."

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HOMEBUYERS' TAX CREDIT - THE IMPETUS FOR A RECOVERY, OR, A FLASH IN THE PAN ??

Last week’s Enewsletter article about how the government benefits from home sales generated a lot of positive feedback and a couple of questions from our readers. One question was, “How much tax money does a home sale generate?”. To answer that question, let’s look at a typical home sale to see where the money goes.

Let’s say that a Homebuilder builds a home and offers it for sale for $300,000. 

The “non-taxable sales items” built into that $300,000 selling price will total around $150,000.  e.g.:

• Lot cost
• Permits
• Utility fees
• School and park fees
• Overhead
• Supervision
• Brokerages costs
• Seller and buyer closing costs
• Etc., etc., etc.

And, oh yeah, profit

That means that around $150,000 of the $300,000 selling price is spent on building materials, which directly generate sales tax revenues of 7.4%, or $11,000. This income alone to the government more than pays for the $8000 Homebuyers’ tax credit, and we haven’t even considered the additional income taxes paid by the carpenters, plumbers, roofers, etc. that worked on the home. All of the income taxes generated by these construction-related jobs more than balance out the tax credit “cost” to the government for resale homes (which do not generate the sales taxes on materials created by new construction).

So, the recent tax credit to Homebuyers should not be seen as money “given away by the government”, but was, in reality, a method for ‘priming the pump’ of economic growth.

Too bad it’s no longer available.

Will the demise of the Homebuyers’ tax credit mark the end of the recent surge in home sales? It’s too early to tell, but it’s no coincidence that most of the title companies are very busy processing contracts that came in right before the deadline on the tax credits. Some experts are also concerned that the traditional “summer vacation” Homebuyers simply moved their normal purchases from June and July to March and April, in order to take advantage of this program.

Time will tell whether the tax credit program actually generated more home sales or, whether it only nudged Buyers into changing the timing of their purchases.  

LENDERS HAVE A PROBLEM – THEY HAVE TOO MUCH MONEY !!!

No, we’re not kidding.  Lenders all over the nation have money to lend, but nobody is asking them for loans. That’s not a hopeful sign for the economy, but it’s a great opportunity for people who are looking to finance a new home. Prospective Buyers are finding that lenders will compete for their business. For example, we recently arranged for a home loan at 4 7/8% with no origination fee and no discount points. An FDIC commercial bank in Florida is now making loans (to Doctors only) with no-down payment, no origination fee, no discount points, for a 6% 30 year fixed or a 5% 5/1 ARM. (It would almost make it worthwhile to go to medical school, just to get one of those loans).

Right now, there seems to be an oversupply of money and an undersupply of Borrowers.  

LANDLORDS ARE SMILING – MAYBE YOU SHOULD JOIN THEM

This past week, the Gazette reported that our local vacancy rate in multi-family residences was down to 6.2%. That’s the lowest vacancy rate since 2001. The article cited the two major factors for this phenomenon, namely, the increase in the number of troops at Fort Carson and the increase in the number of renters who used to be Homeowners, but who have lost their homes to Short Sale or Foreclosure. 

The bottom line for anyone who has ever considered purchasing income property is that our present market looks great for prospective investors. Consider the following factors 

• People who have recently lost their homes are now looking to rent
• These same people are more responsible than typical renters
• Prices for investment property are historically low
• Mortgage interest rates for investment property are historically low
• Inflation is approaching quickly, which means today’s investment property will be worth much more tomorrow

In the past, the industry considered a vacancy rate of 5% to be ‘Fully occupied” (because around 5% of rental units are always in the process of upgrading). Therefore, our present 6.2% vacancy rate is motivating investors to buy even more rental property. Maybe you should consider taking advantage of this opportunity. Give us a call to discuss the possibilities.

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

THE FACTS OF LIFE IN THE real estate BUSINESS

If you are a Realtor,

•  Helping train new agents is training your enemy.
• A new agent will sell the most expensive listing in the office, then say, “Isn’t this fun?” Don’t answer.
• If you show a prospect enough property, he will get his own real estate license.
• If you show enough property, you may not make a sale, but you will need a new car.
• Creative financing is followed by creative litigation.
• Your next prospect will be a family with four children …One with a ball-point pen, one prone to car-sickness, and one who screams all the time. The fourth will be an infant overdue for a change.
• The fussiest buyers have the least money.
• Everyone wants the house that sold yesterday. It was on the market for two years.
• The cat that escaped has a pedigree and is in heat. The sign says, “Don’t let Whiskers out”.
• The house they left on the East Coast was bigger, better and cheaper. The weather is never mentioned.
• The house they left on the West Coast was bigger, better and cheaper. The weather is always mentioned.
• No matter how well you know the property you’re showing, they will ask you something you can’t answer.
• If the house sells quickly, the owner will believe the price was too low.
• If you break a date for a prospect, the prospect will stand you up.
• The friendly dog in the yard, wagging his tail, bites.
• The house down the street sold for more than you can get for the house up the street.
• Your own family will list with another agent, or buy from an owner, probably both.
• Whatever you learn in this escrow will not apply in the next.
• If you say you’re busy, the prospects think you’re making too much money.
• If you say you’re not, they think you’re unsuccessful.
• If your owner re-lists with another agent, he’ll lower the price. Even if he doesn’t, his house sells the next day.

And, if you are a landlord or a property manager,

• Tenants only lock themselves out in the middle of the night... or on Christmas.
• At least one tenant's check will be "lost in the mail" every month.
• A tenant's ability to see dirt and damage is much greater when they move in than when they move out.
• Your best tenants always get job transfers during the worst rental markets.
• The insurance inspector always shows up to take photos of the building as you are putting the evicted tenant’s possessions on the curb.
• Tenants always swear under oath that the window was broken when they moved in.
• If it exists, your tenant will try to flush it down the toilet.
• If it is pouring rain, you can be sure the windows are open at one or more at your units.

But, it’s still a great way to make a living !!!

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

DOES THE HOMEBUYERS’ TAX CREDIT ‘COST’ THE GOVERNMENT TOO MUCH ???

As we approach the end of the federal tax credit for Homebuyers (April 30 will be the deadline for signing a contract under this program), the explanation given by the government for not extending the program is, “Continuing this program would cost us too much money.”

This glib explanation sounds reasonable to people who don’t understand how the free market economy works. i.e. people who don’t understand who pays taxes and where they get the money to pay them. Let’s look at some of the various types of benefits to the government that are generated by the sale of a home:

1.  Federal income taxes
2. State income taxes
3. Capital gains taxes
4. Local Sales taxes
5. And, last, but certainly not least, JOBS, JOBS, JOBS

The following is a partial list of individuals and companies that typically receive income (and thus become liable for additional tax revenues) whenever someone buys a home:

• The Seller of the home
• The companies that the Seller hires to prepare the home for resale. E.g. the decorator, the stager, the remodeler, the landscaper, etc.
• The companies from whom the people named above purchase their supplies
• The Moving company
• The appliance stores
• The providers of services that the Buyer will hire. E.g. internet, TV, alarm services, etc.
• The Mortgage broker
• The Lender
• The Accountant
• The Realtor.
• Etc., etc., etc.

In other words, because this program produces more tax revenues to local, state and federal governments than it ‘costs’ , the Homebuyers’ tax-credit program should not be looked at as a “loss” to the government, rather, it should be viewed as a method for ‘priming the pump’  for additional tax revenues for all levels of government.

If this way of evaluating the benefits of the Homebuyers’ tax credit seems revolutionary, consider that the state of California has now passed similar tax-credit legislation that offers $10,000 to Homebuyers. Their legislature has recognized that the best way to increase tax revenues is to offer incentives to taxpayers. (Golly. It almost seems like Reagan was right. ..The best way to increase income to the government is to lower taxes. Whooda thunk it ?!!! )

Colorado, take note.   

HERE’S ANOTHER EXAMPLE OF HOW GOVERNMENT CAN STIMULATE THE ECONOMY

During the first week of the Governor’s Energy Office’s new rebate program, more than 22,000 Coloradans signed up to receive energy rebates. The office’s phone lines were overwhelmed on April 19, when the program launched and there are now waiting lists for rebates for dishwashers, refrigerators and tankless water heaters.

The rebates are available for energy-efficient appliances and energy-efficient improvements, such as insulation. Here’s a sample of the available rebates:

• Clothes washer              $75
• Furnaces                       $500
• Hot Water heaters          $200-$300
• Insulation and sealing    Up to $400
• Duct sealing                  Up to $75
• Energy audit                 Up to $100

We encourage our readers to take advantage of these rebates for several reasons. First of all, the result of these home improvements will be that your utilities bills will go down. Secondly, the energy-efficient upgrades to your home will improve the eventual marketability of your home. Prospective Buyers are often persuaded to buy because of low utility bills or a shiny new refrigerator. Keep in mind, however, that, if you are interested in applying for these rebates, be sure you register with the program before you make the purchase. They are not retroactive.

Again, the benefits of this type of program to the state of Colorado in terms of increased tax revenues and jobs are similar to the benefits from the Homebuyers’ tax credit program discussed above. This program was funded by $18 million from the American Recovery and Reinvestment Act

Let’s hope that our legislators are learning the lesson that when they let us have more of our money, their revenues go up.

THE COLORADO SPRINGS ECONOMY, LIKE THE ANNUAL HOT-AIR BALLOON FESTIVAL, IS SINGING, “UP, UP AND AWAY”

On Sunday, April 25, 2010, the Gazette reported the following encouraging data about our local economy:

• Hotel occupancy moved up to 51.7%
• Initial unemployment claims were down 43.3%
• Single-family home permits were up 111.3%
• Taxable retail sales were up 3.4%
• Foreclosure filings were down by 33%.

It’s good news like this that keeps our spirits up as we dig ourselves out from under our annual April blizzards. But, look at it this way. At least the chiropractors are getting rich.

NEW HIRING INCENTIVE SIGNED INTO LAW

Under the Hiring Incentives to Restore Employment Act of 2010 which was signed into law on March 17, 2010, employers that hire new workers after February 3, 2010, and any time during the rest of 2010, will be exempted from the employer’s 6.2% share of FICA for those workers, provided the workers were unemployed for the 60 days before starting work or worked less that full time (40 hours per week) for someone else during that period.

The IRS will be providing necessary forms and instructions within the next few weeks but, in the meantime, employers should obtain from each new employee a statement indicating that he/she meets the requirements of the Act.  

To learn more about this new law, visit the Government Relations section of the Worldwide ERC® website.

YOU ONLY HAVE UNTIL APRIL 30^TH TO SIGN YOUR CONTRACT TO BUY

If you want to take advantage of the Federal tax Homebuyer’s tax credit, you must be under contract by April 30, 2010. Give us a call today, or you will miss out on this terrific opportunity to put money in your pocket !!!

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

The difference between the short and long income tax forms is simple. If you use the short form, the government gets your money. If you use the long form, your accountant gets your money.

A fine is a tax for doing something wrong.
A tax is a fine for doing something right.

A couple of weeks after hearing a sermon on Psalms 51:2-4 [knowing my own hidden secrets] and Psalm 52:3-4 [lies and deceit], a man wrote the following letter to the IRS:

'I have been unable to sleep, knowing that I have cheated on my income tax. I understated my taxable income, and have enclosed a check for $150.
If I still can't sleep, I will send the rest.'

Making sausage and making tax laws have much in common. They both involve bloody processes, they both require that an innocent animal be slaughtered, and those of a squeamish disposition should not get involved in the making of either. Anonymous

The avoidance of taxes is the only intellectual pursuit that carries any reward. John Maynard Keynes

My problem lies in reconciling my gross habits with my net income.  Errol Flynn

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

IT’S MY ANNIVERSARY, SO PLEASE PARDON MY NOSTALGIA

Last week marked my 38^th year of selling real estate in Colorado Springs, and I couldn’t help but think back on what our local market looked like in those prehistoric times.

In 1972, I started selling model homes for American Builders, the developers of Southborough and Eastborough. The price range for these homes was $18,000-$19,000. (We also had resale homes for sale at slightly lower prices for those people who could not afford the new models). Mortgage interest rates for a 30 year, fixed-rate mortgage were running at 8%. (ARMs didn’t even exist yet).

At our first sales meeting in 1973, we were all dismayed to hear that our available inventory of $18,000-$19,000 homes was sold out and the builder was announcing a price increase. From that point on, $20,000 would be our minimum price for homes in the development. I remember thinking, “Where in the world will we find people who can afford to spend $20,000 for a home?”….

Flash forward to the present … Yesterday, I was driving on Academy Boulevard and spotted one  of the first homes I sold, back in 1972. The home recently sold for $145,000. What a dramatic example of the benefits of investing in real estate. That home, which the original owner bought for a $500-$1000 down payment, has shown a 600% increase in value since 1972. That’s an average annual rate of return (or appreciation) of approximately 16%. That doesn’t even take into consideration such other benefits as tax deductions, etc.

But the dramatic growth in the value of that house doesn’t even tell the whole story. Let’s look at what “leverage” does for a homeowner. If the original buyer of that home put $1000 down and lived in the home for 7 years (That’s the average length of homeownership, according to NAR statistics), the selling price (using the 16% appreciation figure) would have been approximately $42,210, or 110.5% over the original purchase price. Or, to look at it another way, in seven years, the home realized a gain of just over 22 times the original investment of a $500- $1000 down payment. Eat your heart out, Warren Buffett !!

It’s also obvious that, even if you do not plan to move out of your family home, you should seriously consider purchasing rental property. Our present economic crisis has dramatically expanded the pool of high-quality, potential renters. Combine that with the fact that interest rates are as low as they are going to get and the result is that Investors may never see such great investment opportunities again.   

The bottom line is, now is the time for you to do yourself a favor. Take advantage of today’s low interest rates of 5 – 5.25% for a 30 year fixed-rate loan and make the best investment you will ever make. Call us, right now, and let us help you buy your new home.

DON’T BE LEFT ON THE DOCK, WATCHING THE BOAT LEAVE WITHOUT YOU !!!

The federal tax credit for Homebuyers is just about to expire. If you wait until May 1, 2010 to sign a contract to buy your new home, you will have missed out on the Federal Tax Credit for Homebuyers. That will mean that, if you are a potential first-time Homebuyer, you just threw away $8000. (or, $6500, if this would be a trade-up home). Call us today to avoid losing out on this free gift from your Uncle Sam. They are starting to cast off the lines and the ship’s propellers are turning, but there’s still time to get on board. Call us today !!!

IF YOU LIVE IN COLORADO SPRINGS, YOU’RE VERY FORTUNATE !!

At the April Economic Development Luncheon, the speaker was Dr. Tom Duening, the new El Pomar Chair for Business and Entrepreneurship at the College of Business at UCCS. He came here last August from Arizona State University, my Alma Mater. As a relative newcomer to the region, he is very enthusiastic about Colorado Springs and very correctly describes our city as a place “where people want to create their own community and life. People can find their own pathway here. The honesty, transparency and creativity of the business community of Colorado Springs far exceeds that of the larger cities I’ve lived in for the past 25 years”.

In support of this positive view of our city, the April 18^th issue of the Gazette featured an open letter to the citizens of Colorado Springs from the Greater Colorado Springs Chamber of Commerce, the City of Colorado Springs, the Colorado Springs Regional Economic Development Corporation, El Paso County and the Colorado Springs Convention and Visitors Bureau.  The message of this open letter was to point out that “We are a community to be envied”.

The letter goes on to list the various areas in which Colorado Springs stands out. To list a few of their observations:

We are a city of accountability: We have adapted to the fiscal challenges which face all cities across the nation and we are solving our problems in a cooperative manner.

We are a city ready for the future: As Dr. Duening points out, “We are the leading edge of the Lifestyle Belt – and the Gateway to new expansion into the West”.

Our assets and resources are unmatched in communities our size: The Brookings Institute asserts that Colorado’s Front Range is uniquely empowered with all the essential ingredients for major economic growth and identifies Colorado Springs as a leading factor.

We are a city of scholarship: Our four universities, complimented by a cast of high-caliber educational institutions for adult learners, provide a complete suite of educational opportunities for the regions labor force.

We are a city of welcome and innovation: For example, we host the National Space Symposium, the largest symposium in the space industry, with over 9000 participants. This is just one of the meetings, seminars and conventions hosted by our local, world-famous local Tourism industry.

We are a city safeguarding the nation: The continued and growing presence of our military installations and commands, defense and national security enterprises has insulated our economy and, in addition, our almost 2000 non-profit organizations work to help and serve those in need in our community, across the nation and around the world.

We are a city of encouragement: We are a community of excellence for amateur sports and proud home to the United States Olympic Committee and Training Center. We have been rated the fittest city in the US and are home to a vibrant arts community. We are truly the “America the Beautiful” city.

We are a city working together: For example, The Southern Colorado Business Partnership has been formed to give businesses in three counties a voice at the state level. Twelve organizations from Castle Rock to Pueblo are working together on behalf of the region. Operation 60ThirtyFive outlines our region’s economic strategic plan and Dream City 2020 is a citizen-led effort to craft a vision for our city’s future, and work to turn the Dream into reality.

We are a city to be envied: We are proud that we own our own destiny and we are working diligently to make Colorado Springs a world-class community.

The open letter goes on to list some of the most recent recognitions that our city has received at the national level:

Best Place to Live – 2009 Outside, Online

Fittest City – 2010 (#4) Gallup

Best Places for Business and Careers – 2010 (#12) Forbes.com

National Winner “Cultural Diversity” – 2010 National Black Caucus of Local Elected Officials

Top 60 U.S. Hotspots for Young, Talented Workers - 2009 (#3)  Next Cities

Mid-Sized U.S. City Art Destination – 2009 (#25) American Style

Most Sports Obsessed Town in America – 2008 (#3) Men’s Health Magazine

America’s Best Midsize Metropolitan Areas – 2010 (#9) MSNBC

Best City to Raise an Outdoor Kid – 2009 (#7) Boy’s Life

America’s Best Bang For The Buck Cities – 2009 (#9) Forbes.com

Cities Ranked and Rated – 2007 (#4) Frommer’s Travel Guide

Fittest City in America – 2009 (#2) Men’s Fitness Magazine

Best City to Find a Fresh Start – 2009 (#8) Business Week.com

Most Wired City – 2010 (#6) Forbes.com

Friendliest Bike City – 2010 (#18) Bicycling Magazine

Best Cities for a Housing Recovery – 2009 (#3) Forbes.com

Cleanest Air – 2009 (#14) American Lung Association

Best Place to be a Woman – 2009 (#10) Women’s Health Magazine

Best City to Live in the U.S. -2008 (#3) MSNBC

UCCS – Best Regional Public Universities – 2010 (#6) U.S. News and World Report

Best Place to Raise a Family- 2008 (#9) BestLife Magazine

Best Cities to Work and Play – 2008 (#5) Kiplinger’s Personal Finance

Smartest Metro Areas – 2008 (#10) Bizjournals

National Undergraduate Programs – 2009 (#6) U.S. News and World Report

Come, join us.

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 plane was taking off from Kennedy Airport. After it reached a comfortable cruising altitude, the captain made an announcement over the intercom, "Ladies and gentlemen, this is your captain speaking. Welcome to Flight Number 293, non-stop from New York to Los Angeles. The weather ahead is good and, therefore, we should have a smooth and uneventful flight. Now sit back and relax - OH, MY G-D!"

Silence followed, and after a few minutes the captain came back on the intercom and said, "Ladies and Gentlemen, I am so sorry if I scared you earlier; but, while I was talking, the flight attendant brought me a cup of coffee and spilled the hot coffee in my lap. You should see the front of my pants!"

In unison, all of the passengers shouted back, “You should see ours!" 

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

UP, UP AND AWAY !!!  LOCAL SALES ARE LOOKING GOOD

Our local Residential real estate market experienced another solid gain through March 31, 2010. The 723 residential sales in March, 2010, represent an increase of 27.7% over March, 2009 and 26.4% over February, 2010. Our average sales price is now $215,625, an increase of 4% from February, 2010. Our median sales price is now $189,900, an increase of 4.3% from February, 2010. These increases represent 9 consecutive monthly increases in local residential sales. How many other communities can say that??

In addition to the rise in home sales, another significant indicator of our local economy’s strength is the income derived from sales taxes. Sales tax revenues were up 3.38% from March, 2009. This was the fifth consecutive month of increases and demonstrates our citizens’ confidence in our economy.

ONE MAN’S TRASH IS ANOTHER MAN’S TREASURE – OR – TO PUT IT ANOTHER WAY, ONE MAN’S FORECLOSURE IS ANOTHER MAN’S OPPORTUNITY

Even if you already own your home and don’t intend to sell, the real estate market has some opportunities that you should explore. First, let’s quote from some recent headlines: “Home Resales Continue to Streak” (The Gazette). “Check the Real Estate: It Is Time to Dive In” (The Wall Street Journal). “Homebuyers Scramble as Rates Jump” (Associated Press).

Are these headlines accurate? Well, all we can say is that we have negotiated more contracts in the past four weeks than we have in the last six months. Obviously, home prices are trending upward and people are jumping into the market, before they get priced out of it.

In addition to the rise in basic home prices, mortgage rates are also rising. On April 9, the Wall Street Journal reported the published mortgage rate from Freddie Mac was 5.21% and the Associated Press reported, “more than 5.3% in the past week”. These rates represent an 8 month high for 30 year, fixed-mortgages. This rise in rates can be traced to several factors e.g. An improving economy, the end of the government’s push to make mortgages cheaper by means of mortgage-backed securities, the beginnings of inflation, etc.

What do these trends mean to prospective homebuyers? Well, for every 1% rise in rates,300,000 to 400,000 “would-be-buyers” are priced out of the market. The rule of thumb is that, with every 1 percentage point increase in rates, a buyer’s purchasing power is reduced by about 10%. This means that the buyer who can qualify for a $300,000 home today, will only qualify for a $268,500 home when interest rates go from 5% to 6%.

Is this news bad for everyone? Well, for prospective buyers, it could represent bad news. It means they might have to settle for a less expensive home, or, if they are near the bottom of the ladder, they might have to defer purchasing in favor of renting. For investors, however, the current upward trend in prices and rates means that their pool of prospective renters will increase. To put it another way, for every buyer who is lost, another renter enters the market.

If you would like to explore the benefits of owning rental property, please give us a call. The time is right to consider this opportunity.

NEGOTIATING MEANS – “EVERYBODY WINS”

Since we announced our certification by CNE as a Certified Negotiation Expert, we have been asked by several of our clients and fellow Realtors why we are so strongly emphasizing the Realtor’s role as a negotiator in today’s real estate market. The answer is simple. When we consider that all Realtors, as well as their clients, now have access to all of the same internet sources of information about properties on the market, it’s obvious that the role of the Realtor must change.

In today’s market, the Realtor cannot remain merely the conveyor of data from the Buyer to the Seller, but must become, rather, the facilitator for resolving differences between the Buyer and the Seller. If Realtors cannot or will not serve as that facilitator, they really have nothing of value to contribute to the process. I was reminded of that fact just last week, when another Realtor submitted an offer on one of our listings.

Our client, the Seller, had ‘dug their heels in’ with an “absolute minimum” selling price of $319,000. The prospective Buyer had ‘dug their heels in’ with an offer of $315,000. At this point, the only options were to call off the deal, or, to negotiate. i.e. to make winners of both the Buyer and the Seller.

So, after reviewing the current market data with the Buyer’s agent, as a facilitator, we took the opportunity to point out several significant factors:

• The market has taken a turn for the better and, based upon the most recent sales data from all national and local sources, the experts say that it does not appear that prices will go down any further. In fact, prices have now started to rise
• Last month, properties in the neighborhood involved sold for 99.2% of their listed price, indicating that the Seller’s asking price was appropriate and reasonable.
• The difference between the two parties was only $4000. That translates into an increase in the monthly mortgage payment of only $22.08, or $1324 over the five-year period that the Buyer will probably own the house.
• When the income tax deduction on the loan interest is factored in, the actual difference between offer and demand is closer to $1000 over the five-year ownership period.
• The federal tax credit expires at the end of this month
• Through our preferred lenders, we had access to a better interest rate for the mortgage than the Buyer did. (That, alone, should have sealed the deal)

Considering all of these factors, the Buyer chose to sign the contract and both parties left the table happy. That’s the goal of negotiation and demonstrates the new role of the Realtor.

Today’s Realtor must know and understand the latest statistics and must be familiar with the local market. He/she must have developed good local resources for funding and services and must be willing to serve as a negotiator and facilitator. That way, “Everybody Wins”.

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

We don’t know why the following joke seems, somehow, timely.

The photographer for a national magazine was assigned to get photos of an enormous forest fire. Smoke at the scene was too thick to get any good shots, so he frantically called his office to ask them to hire a plane.

"It will be waiting for you at the airport" his editor assured him. 

As soon as he got to the small, rural airport, sure enough, a plane was warming up near the runway. He jumped in with his equipment and yelled, "Let's go! Let's go!" The pilot swung the plane into the wind and soon they were in the air.

"Fly over the north side of the fire," said the photographer, "and make three or four low level passes." 

"Why?" asked the pilot.

"Because I'm going to take pictures! I'm a photographer, and photographers take pictures!"  the photographer replied impatiently.

After a long pause the pilot said, "You mean you're not the instructor?" 

AND BY THE WAY

Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn’t mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae. The rset can be a total mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Pettry amzanig huh? 

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LOCAL real estate INDICATORS LOOK GOOD

Last week, Summit Economics, LLC, published their Monthly Economic Indicators Report for the Colorado Springs Metro area. The report contains data through February, 2010, and contains encouraging news for the local real estate market.

In a comparison between February 2010 and February 2009, the numbers show:

             Initial claims for unemployment                            -16.4%

            Single-family home permits                                +213.2%

            Taxable retail sales                                             +4.7%

            Foreclosure filings                                             -16.4%

It’s obvious that our local residents are loosening up their purse strings and are starting to spend, again.

(Although our local economy is rebounding, the national picture is not universally good. We regularly speak with Realtors from around the country and many of them still do not see a light at the end of the tunnel. Their comments, combined with data from print and internet sources show a somewhat-fragile real estate market in many parts of the country.)

Another indicator that the real estate slump may be ending comes from the Case-Shiller Index of the 20 Major U.S.Metropolitan Areas. This organization normally tends to see the glass as half-empty, but their latest report shows increases for the last eight months and indicates that “the worst of the declines are behind us and we can at least move forward from here”.

On a personal note, during the past two weeks, we have received more inquiries, made more appointments, written more contracts and scheduled more closings than we did during all of the rest of 2010. It felt great !!!

Do all of these good indicators indicate a permanent upward swing in the economy? We hope so, but many of our Realtor friends are concerned that the recent increase in business is only a result of the fact that the Federal Tax Credit for Homebuyers will no longer be available for contracts written after this month. They fear that, when the program is finished, the slow times will resume.  It’s true that many previously-undecided Buyers are rushing to take advantage of this “Free Money”, before it is no longer available, but we are all hoping that the current flurry of business is just the beginning of an upward trend, rather than merely the end of a government stimulus.

Keep in mind, you must be under contract before April 30, in order to qualify for the tax credit of either $8000 or $6500. If you have any questions about this “Free Money”, please give us a call immediately, so we can get you started before the deadline.

Remember the time-honored formula, “Knowledge minus Action = Regret”

WHY ARE THERE MORE FORECLOSURES IN THE SUBURBS THAN IN THE CITIES??

Nick Turner, Managing Director at the Rockefeller Foundation, thinks the answer lies in the cost of transportation. The Rockefeller Foundation funds the Center for Neighborhood Technology (CNT) and that organization has just released an analysis of “Affordable Housing”. The analysis examined 337 metro areas across the country and encompassed 161,000 neighborhoods and 80% of the US population. It includes some startling facts.

Traditionally, the rule of thumb to determine whether a house is “affordable” has been that housing costs should represent 30% or less of the household income. Most Buyers use this rule-of-thumb in making their decision to buy. Using this measure, seven out of ten US communities have been considered “affordable” for the typical household. The CNT study shows, however, that, when transportation costs are added to the mix, the number of “affordable” communities declines from “seven out of ten” to “four out of ten”. This means that over 48,000 neighborhoods that have traditionally been classified as “affordable” are, in reality, unaffordable for the typical household.

The CNT study points out that transportation costs are the second largest household expense and can range from 12% of household income in efficient neighborhoods to 32% in locations where driving long distances is the only way to reach essential services.

The H+T Index gives a reliable estimate of each neighborhood’s average household transportation costs, a strong move toward a ‘no surprises, no sticker shock’ home buying or renting experience.

To see the complete study and check out your city and neighborhood, visit www.cnt.org

NEW EPA RULES RELATING TO LEAD BASED PAINT

A new rule from the Environmental Protection Administration addresses Renovation, Repair and Painting (RRP) activities in single and multi-family housing built before 1978. It requires that contractors, renovators, etc. be trained and certified in lead-safe work practices.

Property managers, if they use outside contractors to do RRP work, must use contractors who are trained and certified on the new rules. If managers use their own in-house workers to do RPR work, they must require that those workers be certified in lead-safe work practices and must notify tenants.

Realtors should make sure that any contractors they work with on a regular basis, or recommend to clients, must be trained and certified on the new rules, or the Realtor could be held liable.

Do-it-yourselfers will still be able to RRP work on their own without getting fined.

The new rules go into effect April 22, 2010.

QUIZ FOR THE DAY

To what conclusion do the following facts lead you?: 

• The Federal Reserve is going to stop buying mortgage-backed securities from Fannie Mae and Freddie Mac
• Shortages of building supplies such as lumber and copper are going to fuel Inflation
• Increasing bank regulations will soon raise the costs of borrowing money
• If I wait until after April 30 to sign a contract on my new home, I will lose the federal tax credit

Possible Conclusions (Pick one): 

1. I better wait until next year to buy my new home
2. I better buy my new home right now, or, kick myself for the next thirty years

If you picked #2, Call me ASAP, so we can discuss how to get you the best deal possible.  

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

Explanation of Microsoft computer messages

It says: "Press Any Key"
It means: "Press any key you like but I'm not moving."

It says: "Press A Key"
(This one's a programmers joke. Nothing happens unless you press the "A" key.)

It says: "Fatal Error. Please contact technical support quoting error
no. 1A4-2546512430E" It means: "... where you will be kept on hold for 10 minutes, only to be told that it's a hardware problem."

It says: "Installing program to C:\...."
It means: "... And I'll also be writing a few files into c:\windows and c:\windows\system where you'll NEVER find them."

It says: "Please insert disk 11"
It means: "Because I know darn well there are only 10 disks."

It says: "Not enough memory"
It means: "I don't CARE if you've got 64MB of RAM, I want to sell you an upgraded computer."

It says: "Cannot read from drive D:...."
It means: "... However, if you put the CD in correct side up..."

It says: "Please Wait...."
It means: "... Indefinitely."

It says: "Directory does not exist...."
It means: ".... any more. Whoops."

It says: "The application caused an error. Choose Ignore or Close."
It means: ".... Makes no difference to me, you're still not getting your work back."

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

MORTGAGE RATES GOING UP – HOME PRICES GOING UP – BETTER BUY NOW !!!

Markets react quickly to economic events. Several recent events have demonstrated just how quickly these reactions can take place.

The Health Care Reform Bill which was signed last week, combined with already bloated federal spending, has already triggered an adjustment in mortgage rates. On Thursday, 30 year mortgage money rates increased by ¼% and on Friday, the rate went up another 1/8%, as the mortgage market adjusted for “a higher cost of capital”.

Another factor that will influence mortgage rates is the elimination of Mortgage Backed Securities (MBS). These securities will no longer be available after March 31, 2010. This will eliminate a major source of funding for home mortgages. Obviously, this will raise interest rates even further.

This upward trend in rates will be accelerated by the inflation that is kicking in daily. Experts predict that we will really begin to feel the price rise by the third quarter of this year.

The bottom line is that, if you buy a home today, either as a personal residence, or as an investment property, you should see a rise in the value of you investment before the end of the year. Your mortgage rate today will be lower than you will be able to obtain later this year. Your equity and the value of your investment will both go up by the end of 2010. Call us today, to explore these factors and to see how we might help you enhance your financial situation.  

NEWS FLASH – TECHNOLOGY AND THE real estate INDUSTRY JUST GOT MARRIED

The latest example of how technology is changing every aspect of our personal and professional lives is the announcement from the National Association of Realtors that they will soon introduce Realtors Property Resource, a web-based property data project which will give Realtors detailed information on more than 140 million properties across the country. This program cost NAR over $25 million to develop and will revolutionize the way real estate is sold in the future. We were excited to meet with one of the creators of this innovative, aggressive program at the recent Leading Real Estate Companies of the World national conference in Las Vegas.

RPR will enable Realtors to share with their clients such things as expandable map views, neighborhood walk-through views, value comparisons (for both listed and non-listed homes), a property’s sales, listing, tax and value history and will even adjust projected values based on improvements or planned improvements, and the improvement costs involved are based upon local, not national cost estimates.

Finally, RPR creates a multi-page, comprehensive, professional report on a property, which can be sent to the prospective Buyer and/or Seller as a PDF, or, as an email.

So, what does this wonderful new tool mean to Realtors? First of all, it will enable every agent in the US to offer their clients more information than has ever been available in the past. But, more importantly, because all agents will now be able to offer the same information to their clients, RPR will highlight the fact that the difference between mediocre agents and outstanding agents will be measured by their ability to negotiate the best deal for their clients. The bottom line for Buyers and Sellers: Look for the best negotiator you can find.

Realtors Property Report is presently being beta tested in selected areas, but it is not too late for Realtor input. Jeff Young, Senior Vice President of operations states that there are still tremendous opportunities for input from NAR stakeholders, including members. Nationwide release of the program is scheduled for  this Fall. To see a 28 minute demo video of this exciting property data project, visit http://blog.narrpr.com.

QUESTION:    WHAT DO HUNDAI, FORD, GM, JET BLUE, CARNIVAL CRUISE LINE AND SEARS HAVE IN COMMON WITH SALZMAN real estate SERVICES, LTD ?

ANSWER:   They all offer Job Loss Protection programs. The reason they offer these powerful programs is because many potential Buyers find this added level of comfort motivating. And it’s no wonder. As Pete Flint of Trulia.com points out, “Today, the number one cause of foreclosure is unemployment and there are now fifteen million Americans out of work”. The result of this unfortunate fact is that, as CNBC reports, “53% of potential Buyers are skittish, thus not currently willing to enter the marketplace”.

As we have explained in the past, our Job Loss Protection Program is a part of the HELP Program, which operates as a non-profit organization helping Americans avoid foreclosure should they fall victim to the current shifting job market. When foreclosure happens, the Buyers lose not only their homes, but their hard-earned equity, as well. Helping Buyers purchase with an added level of protection helps not only the Buyer, but also helps their surrounding community. We have chosen to become certified in this program and to offer it to our Buyers to demonstrate our commitment to looking out for our clients’ and our communities’ best interests.

The Job Loss Protection Program is available in all 50 states and will pay up to $2000 per month of the Buyer’s mortgage payment, for six months, should the owner lose his/her job. The cost of the program is only $500, paid by the Seller. And, considering the marketing advantage that the program offers to the Seller and the peace of mind it offers to the Buyer, that’s money-well-spent.

Some people have asked us if this program doesn’t introduce a negative in a market where we are trying to instill confidence. Our response is to ask whether that same concern should apply to offering Home Warranties, or Title Insurance. Imagine the Buyer who is faced with foreclosure because of a loss of employment, who discovers that, even though they qualified for the program, they were not even offered the opportunity to enroll. For us not to offer this program to prospective Buyers because we were worried that it might be perceived as a negative would be like refusing to talk about the elephant in the living room. Just because we don’t address it doesn’t mean that it is not on the minds of every Buyer in America who has access to newspapers, TV or the Internet.

And, we should point out that, in this competitive market, the Job Loss Protection Program offers Sellers a wonderful sales advantage over the other Sellers in their neighborhoods.

If you would like to learn more about the Job Loss Protection Program, please give us a call.

SELLERS ……HOW DO YOU COMPETE WITH FORECLOSURES??

If you’re selling your home in today’s market, you’re probably facing the toughest competition anywhere: FORECLOSED PROPERTIES.

How can you compete against a bank that’s desperate to sell their foreclosures? Here’s how (Thanks to relocation.com)

1. Know your enemy.  Because banks are so eager to sell off their foreclosures, they are creating a market price that is artificially low. Appraisers don’t care if the house next to yours was sold as a foreclosure…”a comp is a comp”. The result is that, when “comparables” are listed, the list includes these foreclosures and they drag down the projected price of your home. The best advice is, if possible, wait until your neighboring foreclosure homes are sold and off the market, or, resign yourself to lowering your price to a level that can compete against these turkeys. 
2. Keep it neat. Be sure your home is always presentable. Foreclosures are usually neglected and do not show very well.  
3. Prepare your home for showing. Consider hiring a staging company to prepare your home for showing. They will probably recommend such things as repainting rooms in neutral colors, removing family pictures, etc.  The bank foreclosures in your neighborhood will probably look like what somebody else’s family thought was “cool”.
4. Get real about pricing. Select a real estate agent who knows the market and who can advise you about realistic pricing and who can negotiate on your behalf. Be flexible and willing to consider all offers. Don’t take low offers personally. Yes, it’s “your home”, but, to a prospective Buyer, it’s just another house.

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

An angel appears at a Congressman’s weekly staff meeting and tells the Congressman that in return for his unselfish and exemplary behavior, God will reward him with his choice of infinite wealth, wisdom, or good looks. Without hesitation, the Congressman selects infinite wisdom. "Done!" says the angel, and disappears in a cloud of smoke and a bolt of lightning.

Now, the entire staff turns toward the congressman, who sits surrounded by a faint halo of light. One of his staff whispers, "Now that you have this great gift, what wise thing do you have to tell us?"

The Congressman sighs and says, "I should have taken the money."

QUOTE OF THE WEEK

W. C. Fields said this:

“You can fool some of the people, all of the time….and you can fool all of the people, some of the time…….But, if you play your cards right, that’s good enough”

FEATURED LISTING Clifton

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

THE WALL STREET JOURNAL REPORTS “GOOD NEWS” – HOUSING STARTS ARE DOWN

The Commerce Department reports that the pace of new-home construction fell roughly 5% in February to 563,000 units at a seasonally adjusted rate. Strangely enough, the Wall Street Journal reports this in an upbeat manner, since the fact that housing starts are down is good news for anyone concerned about the bloated housing market.

The pace of home building already has fallen sharply, to a low of 488,000 units last April from a peak of nearly 2.3 million in mid-2006. That has helped cut excess inventory of new homes, which has fallen to its lowest level since 1971.

Despite this reduction in new-starts, experts say more thinning is needed. While new homes for sale shrank to 234,000 in January, this is dwarfed by the 3.25 million existing homes also on the market. Added to this in an additional 5 million properties estimated to be in the late stages of delinquency or the early stages of foreclosure. Little wonder that, according to their own trade association, builders’ confidence sank to a level of 15, from a level of 17 the previous month. Their confidence has been below the 50 level since April 2006.

There are a variety of government programs that have been introduced to keep all of the foreclosed properties from hitting the market all at once. Government loan-modification and foreclosure-prevention programs as well as bank-approved short sales should help clear the market gradually.

It is far too early to say that housing is ready to rebound and, until that happens, it looks like it would be better for everyone if builders aren’t feeding the glut. Sorry, fellas ! 

INTEREST RATES VS. INFLATION …IT’S A BALANCING ACT

The Federal Reserve, must strike a balance between stimulating the economy and encouraging inflation. If the Fed raises rates too soon or too aggressively, it could undermine the recovery. If it waits too long, it could fuel inflation.

Last Tuesday, the Federal Reserve announced that it would not raise interest rates in the near future, which probably means several more months. They will also end, as planned, one of its main supports for the US economy – purchases of $1.25 trillion of mortgage-backed securities – allowing a nascent economic recovery to stand with less government support. These purchases helped drive up the value of these securities and maintained existing mortgage interest rates at the lowest level in over 40 years.

Mortgage rates are not expected to rise immediately as a result of the Feds decision to stop buying mortgage-backed securities, according to Scott Simon, a managing director at Pacific Investment Management Company, a big mortgage securities investor. He stated, “Private investors, who stepped aside when the Fed jumped into the market, are ready to return. It is not as though credit is all of a sudden going to become much more difficult to get. The big problem for the housing market is unemployment”.

Keep in mind, however, that, until we know what entities are going to step forward and start buying the mortgage-backed securities that the government has been purchasing, interest rates could start creeping up.

John Lonski, chief economist at Moody’s Investor Service says he isn’t expecting the Fed to move until private-sector job-growth is tracking above 100,000 a month for three months. Even if such job growth resumes, the Fed is clearly focused on getting the economy somewhat closer to “maximum employment”,- which before the Great Recession meant a jobless rate of roughly 5% - before it feels comfortable raising rates. The risk is that the Fed loses control of stable prices as a result of postponing an increase in rates.

The bottom line to all of this is – Right now, while inventories are high, and prices and rates are low, you will never find all of these competing influences working this hard in your favor, again. Better buy that house right now !!!!

 LAST CALL FOR FEDERAL TAX CREDIT

 Attention, all prospective homeowners !!! If you plan to buy a home anytime in the near future, keep in mind that, in order to obtain the Federal Tax Credit for homebuyers, you must be under contract by the end of April and must close by June 30, 2010. You will really kick yourself, if you let these deadlines pass.

FOR real estate AGENTS, THE FUTURE IS CLEAR – OFFER MORE INFORMATION TO CLIENTS, WORK HARDER FOR SMALLER COMMISSIONS, AND LEARN TO NEGOTIATE

The Inman News, a website dedicated to helping Realtors prepare for the future, featured an article titled, “real estate Darwinism”, March, 2010. The article lists some of the realities that will shape the future of the Real Estate market and predicts that the agents who survive and lead us out of this current mess are going to be those most willing to change. They will share three key attributes: they will be the most competent in their craft, utilize all available technology and be the most dedicated to customer service. Externally, technology will continue to drive industry change. Internally, change will come in the form of   technology and reduced commissions. Some of the predictions in the article were:

•  Online sources for information will enable customers to learn everything about specific properties before they even talk to an agent. We are almost there now.
• In order to justify a fair commission, agents will have to be transaction and negotiation experts to add value to the transaction
• There will be a shift back to the local and regional broker
• The brokerage office of the future will have far fewer agents, each handling many more transactions (Already, board memberships are falling in most areas. NAR membership is almost back down to 2004 levels).
• Independent contractor status will begin to evolve into employee status, with transaction bonuses

The article points out that these changes are market-driven and Realtors are facing the Darwinian reality that they can change, or be left behind. In 1975, a $1 million producer won awards and could feed a family. Today, they still get the award, but are barely making a living. These agents will cease to exist: the part-time agent will generally not fit in. You can see this evolution at work today in the growing number of “teams” working within brokers.

The article concludes by pointing out that all “free” markets move to an equilibrium of efficiency based on supply and demand, but the real estate industry has not yet made that adjustment. However, it appears that agents will eventually evolve into account managers with standard work schedules and quotas.

FEBRUARY SALES TAX REVENUES WERE UP

On March 16, 2010, The Gazette reported that in February, Colorado Springs sales tax collections rose 4.74% compared with those of February 2009. Sales tax collections fund more than half the city’s annual budget for general services such as police and fire protection, parks and roads.

Categories of goods that produced the greatest increase in sales taxes were furniture, appliances and electronics, up 17.76%; utilities, up 8.4%; department and discount stores, up 7.09%.

Decreases were posted by auto repairs and leases, down 11.02% and building materials, down 7.93% from the year before. This ties in with our other story about the decrease in home-building.

COUNTY PROJECTIONS SHOW THAT OUR AREA CONTINUES TO GROW

Prospective home owners and investors will be interested in the following chart from our County Government Planning Dept. As you can see, it shows that our area is one of the few parts of the country that is looking at continued growth through the foreseeable future.

THANK YOU, AGAIN, TO OUR GREAT CLIENTS

At the recent conference in Las Vegas, we were very pleased to be awarded the Platinum Producer Award for 2009 by the sponsoring organization, Leading real estate Companies of the World. It goes without saying that we are well aware the award was the result, not of our efforts, but of our clients’ loyalty and support, and we want to take this opportunity to thank all of you for your friendship and for your business. Stop by the office to see your award and we’ll buy you a cup of coffee.

Thanks, folks. 

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

Someone asked us what was meant by the expression, “Welfare Mentality”. We thought the following joke explains it perfectly:

Two old friends meet passing on the street one day. But one looked forlorn, and almost on the verge of tears. His friend asked, "What had the world done to you, my old friend?"

The sad fellow said, "Let me tell you. Three weeks ago, an uncle died and left me forty thousand dollars."

Friend: "That's not bad."

"But you see, two weeks ago, a cousin I never even knew kicked the bucket, and left me eighty-five thousand free and clear."

Friend: "Sounds like you should be grateful..."

"You don't understand!" he interrupted. "Last week my great-aunt passed away. I inherited almost a quarter of a million."

Now his friend was really confused. "Then, how come you look so glum?"

"This week... nothing!"

Margaret Thatcher said it best …”The problem with Socialism is that, eventually, you run out of other peoples’ money”