Real Estate Information Archive

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”

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HOLD ON TO YOUR HATS - FHA IS TIGHTENING UP

We just returned from the annual week-long convention of the Leading real estate Companies of the World. There were over 780 Real Estate companies represented at the conference (23 from outside the U.S.). As always, the meeting featured a lot of fascinating seminars and trade show booths and we enjoyed having the opportunity to meet and greet Realtors from all over the country and the world. We were also very pleased to hear from many of the attendees that they are receiving and enjoying our eNewsletter. We’ll try to keep it interesting for you.

This year, most Realtors at the Leading RE conference were asking, “How long will it be before we see sales going up?”. In many parts of the country, the market is extremely soft. In Detroit, for example, the Realtor’s commission sometimes turns out to be higher than the actual selling price of the property. Fortunately for us, Colorado Springs is a real “Magnet Market”, and we received a lot of inquiries and interest in our local market from other conference attendees. However, although we have not suffered the steep declines that many of our fellow Realtors have seen, we still have a long way to go.

For us, the highlight of the conference this year was the presentation by Dave Stevens, the newly-appointed head of the Federal Housing Administration. Prior to his appointment, Dave had been with Long and Foster Realtors, the largest real estate company in the world. (They have over 10,000 Realtors working with them, primarily along the East coast.) So, Dave knows and understands the problems that the industry now faces.

In his capacity as head of the FHA, he meets regularly with Congressmen, Senators, Cabinet Members and the members of the Press and they all ask the same question, “Who created the present mess?”. Dave’s regular response is, “My neighbor. ….The one who bought the house he couldn’t afford”.

Some of the pertinent facts about the market that Dave brought out in his presentation were:

90% of all residential loans originated in the first quarter of 2009 were sold to either Freddy Mac or Fannie Mae

• 80% of insured loans in 2009 were to first-time Buyers (So it looks like the tax credits to these Buyers did work)
• FHA did a “terrible job” of monitoring lenders. Within the past 6 months, FHA has suspended the licenses of 359 lenders …That’s more than all of the suspensions since the year 2000.
• The cost of FHA insurance to Borrowers has been increased by 35%. This represents an increase in closing costs and monthly charges. The increase was to make up for the costs of foreclosures and short sales and to bring FHA’s charges into proper balance as a federal agency.
• When Seller concessions of up-to 6% were allowed, over 50% of the loans became delinquent. For that reason, FHA reduced the maximum allowable concessions to 3%.
• As of January 1, 2010, every loan officer must be licensed.

In conclusion, Dave Stevens said he sees himself as a “Professional Temporary” employee of the FHA. He emphasized his Faith and Trust in the real estate industry and pointed out that a market as large as the Real Estate market moves very slowly, but it is turning around.

THE WALL STREET JOURNAL SAYS, “IT’S TIME TO BUY YOUR NEW HOME”

In the Saturday, March 13, 2010 issue of the Wall Street Journal, two separate articles emphasized the need for speed in making your decision about buying your new home.  The first article emphasized that mortgage interest rates will soon rise. Predictions about the size of the increase vary, depending upon which expert your read, but all of the experts say a rate increase is coming. What will the increase mean to a typical Buyer. Well, for example, if a couple has a combined pretax income of $100,000 a year and debt obligations (excluding mortgage) of $500 a month, they would qualify for a $590,000 house, at the present interest rate of 5%. However, if rates go up to 6% (as some experts predict, that same couple would only qualify for a $540,000 mortgage.

In a separate article, the Journal writer explains that, in order to qualify for the soon-to-end Buyers-federal-tax-credit, you must be under contract by April 30 and must close by June 30. As we have mentioned before, it does not look like this tax credit will be renewed.

The WSJ writer also points out that appraisals are now a challenge for prospective Buyers. With home prices still falling in some areas of the country, you might find that the property appraises below the purchase price. That means the Buyer must come up with more down-payment, or, the Seller must lower the purchase price to keep the deal alive.

To get the best advertised rates, you must have a credit score of at-least 720, out of a possible 850. According to Fannie Mae, the big mortgage buyer, every 20 point drop in your credit score below 720 results in a steeper origination fee.

All of these factors point to the fact that these costs and rates are rising and, when inflation hits, will rise even more quickly.

There are many more factors that will affect the cost of your home purchase, but the two conclusions that are obvious are: 1. The home you look at today will cost you more tomorrow and, you will need some expert advice about all of these factors, so, give us a call right now.   

IN LAS VEGAS, I WAS DEFINITELY A ‘LICENSED’ REALTOR

As a means of publicizing and promoting our local community, and as a conversation starter at the Leading RE conference in Las Vegas, I decided to break the ice with the attendees by wearing my Colorado auto license on my chest, in addition to the traditional name tag. My Colorado license plate reads, RELOC8 and it really helped to start-up conversations with a lot of people. It seems that everyone is interested in Colorado and the Realtors were also intrigued by the idea of advertising their services on their license plates. If fact, the license plate even got us a couple of leads. We got inquiries from two employees of the Wynne Hotel, the host hotel for the conference, who wanted to talk with us about relocating to our area and a from a Realtor from Italy who loves skiing and is thinking about moving over here. Hey, this “Thinking Outside of the Box” stuff really works !!.    

LET’S MAKE A DEAL !

One other pleasant surprise for us at the Leading RE conference was the high level of interest from other Realtors in the “Certified Negotiation Expert” program that we recently completed. They were fascinated in the details about how negotiating skills can be learned and used to benefit both the Buyer and the Seller in a typical transaction. It goes without saying that, in every transaction, the Buyer and Seller both have the same goal, namely, the completion of the sale. However, that sale cannot be consummated until both parties are satisfied about such details as completion dates, down payment, terms, seller-provided furnishings, etc. Unfortunately, failure to resolve conflicts about such details often causes the deal to fall apart. That’s where negotiating skills on the part of the Realtor are so important. Identifying the goals of both parties, explaining options, suggesting solutions should all be part of the Realtor’s duties. That’s why we are so pleased to have recently completed the CNE certification process. It enables us to help both Buyer and Seller achieve their respective goals.        

And, please remember, I would be honored to serve as your Broker and negotiate on your behalf 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

In honor of St. Patrick’s Day, we offer the following classic:

An Irishman walks into a bar and orders three glasses of Guiness, drinking them one at a time. Noticing this odd ritual, the bartender explains that beer goes flat when poured and informs the man his beer would be much fresher if he ordered one glass at a time.

The Irishman explains he began this custom with his two brothers, who have moved to America and Australia, respectively. This is their way of remembering all the time they spent drinking together.

The man becomes a regular at the pub, well-known for always ordering three beers at once. One day he walks in and orders only two beers. Assuming the worst, a hush falls among other patrons.

When the Irishman returns to the bar to order his second round, the bartender quietly offers his condolences. The man looks confused for a moment, and then explains, "No, my brothers are both just fine, but I have given up beer for Lent."

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

DO YOU HAVE MONEY TO BURN ?

If you are not under contract by April 30, 2010 to buy your new home, you will be throwing away your chance to cash in on the federal tax credit of between $8000 and $6500. That’s when this program expires (and it doesn’t look like it will be renewed). Also, consider this: New FHA rules go into effect on April 5, 2010 and they will make it even more expensive for you to buy your home after that date.

Finally, just one more piece of evidence that inflation will begin to hit the housing market within the next two quarters (and thus, will increase the price you will have to pay for your new home) ….Builders use lots of copper in the construction process (wiring, piping, etc.) and earthquake-stricken Chile is the 3rd largest producer of copper in the world. In our last issue, we pointed out that a lumber shortage is beginning to affect building prices. Now it appears that a shortage of copper will also begin to be a factor for builders. Don’t be a Mugwump. Call us.

IT’S HARD TO CLIMB INTO THE LIFEBOAT WHILE YOU’RE STILL UNDER WATER

The Wall Street Journal (March 3, 2010) featured an interesting article explaining why the federal programs designed to help troubled homeowners stay in their homes have had such limited success. In theory, homeowners should be lined up to take advantage of these programs. Around 37% of all borrowers with 30-year conforming fixed-rate mortgages have mortgage rates of 6% or higher. Many of these homeowners could refinance at today’s rates and reduce their rates by a full percentage point, thus saving, on-average, $2,600 every year. Yet, through December, only 188,000 borrowers who owe between 80% and 105% of the value of their homes had refinanced.

Some mortgage bankers say that higher fees by lenders have undermined the effort to encourage refinancing. For example, a borrower with 20% down and a 695 credit score seeking to refinance must pay fees equal to 1% of the loan amount. These fees rise for borrowers with weaker credit scores, higher loan-to-value ratios or other risk factors. These fees “have defeated the Fed’s purchase program”, according to Alan Boyce, a mortgage-securities-market veteran. These loan fees are “partly responsible for why there’s been no refinancing boom.”

Furthermore, many homeowners are so far underwater that refinancing is out of the question. For example, John Albright, a retired Navy officer in Manassas, VA,, hasn’t been  able to refinance because the value of his home has plunged. He figures the market-value of his home is now around $275,000, but he and his wife owe more than $500,000 on their mortgage. When he tried to refinance, his lender told him he would have to come up with about $200,000 to pay down his mortgage before refinancing would be possible. Falling home values are one of the biggest factors raising borrowers refinancing costs. Furthermore, borrowers with less than 20% equity may have to pay for mortgage insurance.

As a result of all of these factors, borrowers who are now refinancing tend to be those who need it least. They are people who have very good credit “and the savings really aren’t going very far down the credit spectrum”, according to Michael Fratantoni, the head of research and economics for the MBA.

The Obama administration is planning to extend for a year a program launched last April to help homeowners with little or no equity to refinance. Last September, it was even expanded to include borrowers who owe up to 125% of their home value, but fewer than 2,000 borrowers have used the program through December. The program, which had been set to expire this June, was called “a failure” last week by analysts at Barclays Capital.

The bottom line is that, unless something changes, it looks like troubled homeowners will just have to keep paddling as fast as they can for a while.  

HOMEBUYERS EXPECT THEIR AGENTS TO BE GOOD NEGOTIATORS

In 2009, the National Association of Realtors published the results of their survey of home Buyers and Sellers.  The comments from the survey respondents reinforced our long-held opinion that that the negotiating skills of agents are a huge factor in bringing real estate transactions to successful and satisfying conclusions. Some of the survey responses indicated that:

• 99% of Buyers believe negotiation skills are “Very Important”. or, “Somewhat Important” in their real estate agent
• Only 42% of all Buyers felt that their agent negotiated “better contract terms” on their behalf
• Only 36% of all Buyers felt that their agents “negotiated a better price”
• Buyers gave “Negotiating Skills” the lowest satisfaction rating of all agent skills and qualities.

Just a few of the areas of a typical real estate transaction in which negotiating skills become a factor are:

v  Establishing current market value/price

v  Listing details – What stays and what goes, allowances, etc.

v  Amount of earnest money required

v  Choices in financing

v  Establishing and coordinating performance dates

v  Inspection, replacement, repairs of problems

v  Special add-ons such as Warranties, Job-Loss-Protection, etc.

With these facts as background, we were excited to hear that the real estate Negotiation Institute had scheduled their Certification Program for Real Estate Professionals this month in Colorado. This would mark the first time this program has been available in our state. Because we have always been convinced that negotiating on behalf of our clients is one of our major responsibilities, we immediately enrolled in this important CNE program and are pleased to announce that we have successfully completed the training and have been awarded the coveted “Certified Negotiation Expert” designation by the CNE. We are especially proud of this achievement, since only 5000 of the 1.1 million Realtors nationwide have been awarded this certification.  

And, please remember, I would be honored to use my negotiating skills 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. 

COLORADO SPRINGS IS WIRED

Forbes.com has ranked Colorado Springs as the nation’s sixth-most-wired city in its annual ranking, ahead of technology hotbeds such as Boston and San Jose, California. Our first appearance on the list was triggered as a result of higher broadband usage than in previous years – 69%. Or, just 2% less than top-ranked Raleigh, NC., and eighth among all cities. We rank 11^th in the number of companies providing broadband access with 15, and also 11^th in Wi-Fi hot spots. How about that !!!

LATEST STATISTICS LOOKING GOOD !!

On Friday, March 5, 2010, The Gazette reported that “home sales and prices rose again last month in the Pikes Peak region, continuing a string of better showings for the local resale market”. Single family/patio home sales in February were 504, compared with 464 in February of 2009. New listings were 1,389, compared with 1,312 in 2009. It was the eighth straight month that year-over-year sales have improved, after nearly three years of declines. For the first two months of the year, sales totaled 1,035, a 12.9% increase over the same period in 2009. It looks like we are well into a rebound from the recession.

LAS VEGAS, HERE WE COME !!

This week, we will be attending the annual meeting of “Leading real estate Companies of the World”, in Las Vegas, NV. This is a great opportunity for us to keep current on the latest information about Real Estate and relocation and it helps us serve our clients more effectively. Many of our readers will also be there, so we look forward to seeing you all there. 

JOKE OF THE WEEK

With Springtime just around the corner, we thought it might be time for a couple of jokes about robins from Aesop’s fables. The first one warns us about complacency and the second one urges us to control our appetites.

1      Two robins were sitting in a tree. "I'm really hungry", said the first one. "Me, too," said the second. "Let's fly down and find some lunch." They flew to the ground and found a nice plot of plowed ground full of worms. They ate and ate and ate and ate until they could eat no more. "I'm so full I don't think I can fly back up to the tree", said the first robin. "Me, either. Let's just lay here and bask in the warm sun", said the second. They plopped down, basking in the sun. No sooner had they fallen asleep than a big fat tomcat sneaked up and gobbled them up. As he sat washing his face after his meal, he thought, "I just love baskin' robins."

2      Two robins were sitting in a tree. "I'm really hungry", said the first one. "Me, too," said the second.    "Let's fly down and find some lunch." They flew to the ground and, in the middle of the road, they found some road apples (Our urban readers will have to find a horseowner to translate that expression for them). They ate and ate and ate and ate until they could eat no more. Then, they flew into the front yard of the adjacent lot and perched on the handle of the homeowner’s lawnmower to rest. Unfortunately, they had gorged themselves so much that, when they tried to fly off, they both had heart attacks and fell to the ground, dead. The moral to the story is, “ Don’t fly off the handle, if you are full of road apples”.

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

INFLATION IS COMING !! ......... INFLATION IS COMING !!

Last week, we pointed out how the costs of building materials and rising credit card fees were indicators of oncoming inflation. So, it’s no surprise that, this week, the U.S. Commerce Department reported that the U.S. economy grew at the rate of 5.9% in the fourth quarter of 2009. This “good” news was reported in the Wall Street Journal on February 27, 2010. Now, growth is good, but, the rule of thumb that is generally accepted is that quarterly growth over 2-2 ½% in any quarter means that inflation will increase within the following two quarters. That’s the ‘down” side of the good news. The NAR data on the 2009 fourth quarter median prices for homes referenced below, shows that Colorado Springs home prices are going up, which will only add to the inflationary pressure. Better buy now !!!

JOB LOSS PROTECTION PROGRAM JUST GOT BETTER

Last Summer, Salzman real estate Services, Ltd. became the only Colorado Springs source for the Job-Loss-Protection Program for Buyers. We are still the only local Realtor to offer this revolutionary program which has been so well-received by local HomeBuyers. The way the program works is that, within two years after closing, if a covered Homebuyer gets laid off from his or her job and is receiving unemployment benefits from their state, the JLP program will make their mortgage payments for them, for up-to six months.

When we introduced this program in 2009, the maximum monthly payment covered by this program was $1800. However, this past week, we were notified by the program sponsor that they had raised the maximum monthly payment to $2000. This increase should make the program even more appealing to prospective HomeBuyers. We are also pleased to announce that, through our network of relocation specialists, we are able to offer this plan to our out-of-state clients, as well.

The Job-Loss-Protection Program is funded by the Rainy Day Foundation, a non-profit organization, based in Washington, DC, and is marketed by Creative Alliances.

CAN MORTGAGE MONEY GET ANY CHEAPER ? 

Last week, the great home mortgage rates that are now available were dramatically demonstrated to one of our clients who is moving into the area from Kansas. To their delight, we were able to find them a 30 year mortgage, with a rate of only 4 7/8%. However, after shopping around, we were also able to find them a 15 year mortgage, without any origination fees or discount points, with a rate of 4 3/8%. Just that small difference in rates will enable them to pay off their home in half the time they had planned for. The moral of the story …These rates can’t last forever …Don’t be a “Mugwump”…. Buy now.

LOOKING FOR WORK? CHECK THIS OUT

Every year, we attend the Annual real estate Cyberspace Convention. Since 2002, this event has regularly featured exciting ideas and tips about technology and marketing for Real Estate professionals. This year, they also featured a website designed to assist our clients and prospective clients who might be seeking employment. If any of our readers fit into that category, here’s a site that might be of help. www.currentlocaljobs.com. This site claims to have found 4064 jobs in the Colorado Springs area. Good Hunting !! 

NAR QUARTERLY REPORT

Call us to receive the Quarterly report of housing prices from the National Association of Realtors.

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

It's the first day of school and the teacher thought she'd get to know the kids by asking them their name and what their father does for a living.

The first little girl says: "My name is Mary and my daddy is a postman."

The next little boy says: "I'm Andy and my Dad is a mechanic."

Then one little boy says: "My name is Jimmy and my father is a loser who prefers to lay on the couch all day and watch TV, while Mom goes off to work to support us."

The teacher gasps and quickly changes the subject, but later in the schoolyard the teacher approaches Jimmy privately and asks if it was really true what he had said about his father.

He blushed and said, "I'm sorry but my dad plays hockey for Team USA, and I was just too embarrassed to say so."

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

ANOTHER  REASON TO  BUY NOW !!! (OR, WOULD YOU RATHER BE A MULE?)

In previous issues, we have pointed out that when the looming Inflation hits, home prices will necessarily have to increase. Well, it doesn’t look like we will have to wait until the third or fourth quarter for the predicted inflation to begin. Last week, the Wall Street Journal’s Commodities Report noted that lumber prices have climbed 32% since January 1, 2010. This sudden climb in prices is the result of a shortage of lumber caused by the cut-backs of 45% in production at the lumber mills.

Between 2005 and 2009, lumber prices showed a consistent decline. However, as a result of the 2009 fall-off in residential construction, lumber mills laid off workers and decreased inventories. That kind of cut-back cannot be reversed overnight.  It will take time for mills to re-hire workers and return to full production, and that will happen only when the mill owners are convinced that there is a sustainable rebound in residential construction. The predictable result of this present lumber-shortage is that builders will now have to delay construction as they wait for deliveries and will have to pay more for lumber, when it becomes available. That cost increase will be passed along to home buyers.

This impending cost increase reflects two basic facts of life. First of all, as we all learned in Economics 101, Supply and Demand will always balance each other out. When a commodity is in short supply, it will cost more…and that includes two-by-fours. The second lesson may not be familiar to most present-day city dwellers. Old-time mule-skinners used to say that the first step in training a mule was to hit him between the eyes with a two-by-four. That got the mule’s attention and helped him concentrate on learning. Well, it seems that the mill-owners have just hit us between the eyes with a two-by-four. Will it help us to learn our lesson?? We remind all prospective home buyers that the home you buy today will definitely be worth more tomorrow.

CREDIT CARD CHARGES GOING UP

As of today, new federal regulations governing credit card companies will go into effect. As with all governmental regulations, these new regulations will increase the credit card companies’ cost of doing business and will be passed along to the users of credit cards (in other words, to everybody). Just another example of how inflation is creeping in.  

4TH-QUARTER STATS NOW AVAILABLE FROM SOUTHERN COLORADO ECONOMIC FORUM

The Southern Colorado Economic Forum of the University of Colorado at Colorado Springs has just published its 2009 fourth-quarter report. This comprehensive report contains invaluable information about our local economy and will assist you in making sound decisions about your real estate investments. It covers such topics as:

• The Business Conditions Index: An overall view of 10 separate activities of products and services
• Single-family permit trends
• Multi-family permits
• Year-to-date single-family home sales
• Monthly single-family home sales
• Average home-sale prices
• Median home-sale prices
• El Paso County foreclosure statistics
• Multi-family vacancy rates
• Emplanement trends at Colorado Springs Airport
• Colorado Springs sales-tax collections
• New car registration statistics

Please give us a call, if you would like us to forward a complete copy of this report. It will help you analyze our market and make good decisions about your home-buying and/or selling decisions.

ATTENTION !!! HOME BUYERS TAX CREDIT WILL EXPIRE ON APRIL 30, 2010

We urge you to take advantage of the Federal Tax Credit to Home-Buyers and BUY NOW !!!. This valuable tax-credit is a gift to you from Uncle Sam and may not be extended. If you would like to take advantage of this tax-credit, you must be under contract by April 30, 2010 and must close by June 30, 2010.

COLORADO SPRINGS CONSUMERS HAVE DECIDED TO START BUYING AGAIN

This past Wednesday, the city reported that city-sales-tax revenues in January, 2010 were 6.8% higher than in January 2009. While this gain was down 6.9% from the beginning of the Recession in January, 2005, it was still the largest percentage gain in two years. This is a good indication that local consumers are tired of waiting for someone to announce that the recession is over and they have decided that it’s time to start buying again. As the man said, “I heard there was a recession, but, I decided not to participate”.  It’s great news !!!

SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”

Salzman real estate Services can now provide clients with a 15% discount on all painting and decorating products, through the Sherwin Williams “Neighborhood Preferred Customer Program”. As a member of this money-saving program, we can now offer these discounts to our clients in every

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

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

EXISTING HOME SALES SURGE IN MOST STATES IN FOURTH QUARTER

The National Association of Realtors has just published the report on the median sales prices of single-family homes for the fourth quarter, ending December 31, 2009. The report includes statistics from the 151 largest metropolitan markets. Here are some of the highlights:

• Sales were up 27.2% in the last quarter of 2009, compared to the same period in 2008.
• That represents an increase of 13.9% in the number of sales over the previous quarter.
• Prices rose in 67 of the 151 markets covered, while prices dropped in the other 84
• The national median price of existing single-family home sales for the quarter fell to $171,900 (4.1%), representing the smallest decline in over 2 years.
• The surge in home sales was driven by two factors: The Federal Home Buyers tax credit and the record-low mortgage interest rates.
• Comparing the fourth quarter of 2009 with the fourth quarter of 2008, Colorado Springs showed a 1.5% increase in the median sales price of single-family homes.

These figures show an encouraging growth for the nation and for our local market.

HIGHER RATES AND INFLATION ARE BOTH ON THE HORIZON

Last week, Ben Bernanke, Chairman of the Federal Reserve, warned that the Fed will likely raise its rates to banks “at some point”. Based upon current market fragility and the history of past Fed actions, the increase will probably not take place immediately, but will probably take place in the second half of the year.

The Fed plans to end a $1.25 trillion mortgage-bond-purchase program that has helped keep mortgage interest rates near a record-low 5%. The Mortgage Bankers Association, an industry trade group, predicts the end of the Fed mortgage-bond-purchase program could push rates up by roughly 0.5%. For a $300,000 fixed-rate mortgage, that would increase the monthly payment by $125.

Coupled with this Fed-activated increase in the cost of mortgages will be the inevitable increases in the cost of everything that will result from inflation. The currently-proposed budget will definitely trigger some inflation and, if the proposed health-care and cap-and-trade bills, etc. are passed, the looming inflation will increase even more.

The good news is that you can now buy your home at an attractive price and at an excellent mortgage-interest rate. Furthermore, when inflation kicks in, the home you buy today will increase in value. The bad news is that, if you don’t act decisively now, the home you buy next year will have a higher price tag and a higher interest rate. Call me.  

COLORADO SPRINGS COST-OF-LIVING IS BELOW NATIONAL AVERAGE

According to the data released this week by the Council for Community and Economic Research, 2009 living costs in the Colorado Springs area dropped to the lowest level in 19 years. The survey, which studies 322 national metropolitan areas, shows our local cost-of-living in 2009 was 7.2% below the national average …the lowest level for any full year since 1990. From the workers’ perspective, this good news is balanced out by the fact that our average wages are 8% to 10% below the national average, so our lower cost of living does not necessarily result in a higher standard-of-living, but, from the perspective of outside companies looking to reduce their expenses, the lower costs of doing business in Colorado Springs could be a significant benefit to their bottom line. Considering the skyrocketing business-tax rates in many other parts of the country, our area looks better and better as the place to relocate businesses.  

SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”

Salzman real estate Services can now provide clients with a 15% discount on all painting and decorating products, through the Sherwin Williams “Neighborhood Preferred Customer Program”. As a member of this money-saving program, we can now offer these discounts to our clients in every part of the country, whether they are buying or selling their home. Please contact us for the details of this helpful service.

REALTOR MAGAZINE LISTS 4 REASONS TO SELL NOW

Selling a property in this tough market can seem like a challenge, but Realtor® Magazine lists 4 factors that make this a good time to sell.

• Sell low and Buy low. Because all property values are down, the loss on the property a home owner sells is really a paper loss, because the next property he buys will also be a bargain. If he buys smartly, when prices come back in a few years, he’ll be in better shape.
• Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
• Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.

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

In honor of Mardi Gras, the following check list will help you determine whether you are really a Louisiana native:

...When out of town, you stop and ask someone where there is a drive-thru daiquiri place, and they look at you like you have three heads. ... Every so often, you have waterfront property. ...You learned to drive a boat before you could drive a car. ... You can name all of your 3rd cousins. ...You can plan your wedding around hunting season & LSU football. ...Your burial plot is six feet over rather than six feet under. ...You're not afraid when someone wants to "ax you something". ...You don't worry when you see ships riding higher in the river than the top of your house. ...The smell of a crawfish boil turns you on more than HBO. ... You assume everyone has mosquito swarms in their backyard. ...You like your rice and politics dirty. ...You pronounce the largest city in the state as "Newawlins". ...You know those big roaches can fly, but you're able to sleep at night anyway. ...You can't think of anybody that can cook better than your momma. ...Your last name isn't pronounced the way it's spelled.

HARRY’S COLUMN

HOW DOES THE LOCAL real estate MARKET LOOK ?? --- VERY ENCOURAGING !!

The January, 2010 Sales and Listing statistics for the Colorado Springs area were just released and they look very encouraging for the local real estate market and for the local economy. The month of January 2010 showed sales of 464 homes, which represents an increase of 12.3% over January of 2009. The median price of homes sold in January, 2010 was $178,290, an increase of 3.1% over 2009. This was the eighth straight monthly gain in our local market. As a result, the inventory of available homes on our market went from 4925 in January of 2009, to 4120 in 2010, a reduction of 16.3%. All of these statistics indicate that the worst is behind us and our local market is improving.  

One of the factors that helped improve our local sales figures was the First-Time Home Buyers Tax credit of $8000, which was recently extended to April 30, 2010 and expanded to include a $6500 credit to existing homeowners.

When you look at the shrinking inventory of available homes (which will eventually result in higher prices), the excellent long-term mortgage interest rates which are now available (but, perhaps, not for long), plus, the looming inflation that will definitely follow the proposed increases in government spending, plus, the huge influx of new prospective Buyers and Renters now entering the market, the bottom line becomes ACT NOW.

As a prospective HomeBuyer or Investor, you cannot afford to be a Mugwump, (i.e. an indecisive bird who perches on the fence with his ‘mug’ on one side and his ’wump’ on the other.. ) This market will not stay this good for very long. Give me a call !!

THE PRICE OF HOMES IS GOING TO GO UP SOON …AND WE’RE NOT JUST CRYING, “WOLF”.

For the past year, we have been predicting an upcoming increase in the price of homes, caused by several factors. If you are a prospective HomeOwner or an Investor, keep in mind that the window on the great deals you can get in our current market is going to close in the latter part of this year…..probably in the third or fourth quarter. Just for the record, we would like to list some of the factors that we predict will result in this increase.

• Credit is about to tighten. The Wall Street Journal reports that the Chairman of the Federal Reserve, Ben Bernanke, is now in the process of laying out a blueprint for tightening credit. This will result in higher mortgage rates. We predict an increase of ½% in the third quarter of 2010 (Translated into pocketbook terms, that ½% increase will add about $100 per month to your monthly payments for a loan of $250,000.)
• Some banks are already beginning to tighten their loan standards for residential mortgages. According to WSJ, some 17% of banks said they were making mortgage approval standards tougher even for borrowers with high credit scores and well-documented credit histories.
• Inflation will begin to kick in during the latter part of this year and, if Congress passes even a portion of their proposed increases, (Health Care, Cap and Trade, etc.), inflation will force prices on everything to skyrocket. The Wall Street Journal, Feb.6, 2010, featured a cover article titled, “Protecting Yourself from the Giant New Deficit …How to Keep the Scary U.S. Debt From Eating Up Your Assets”. An excellent tool for protecting the value of your assets, according to the article, is to buy a home, or, trade-up from your existing home.
• The Federal process of creating “Mortgage Backed Securities” which are the foundation for funding Fannie Mae and Freddie Mac will expire on March 31, 2010 and will be replaced by a new process which will increase the cost of capital in financial markets.   
• The inventory of available homes is shrinking and, as supply goes down, prices will go up.

INVESTORS, TAKE NOTE.    AS HOME OWNERSHIP GOES DOWN, RENTALS GO UP

On February 2, 2010, the Commerce Department reported that, at the end of 2009, only 67.3% of all Americans owned their own homes. That number was the lowest since the second quarter of 2000. (The all-time highest rate of ownership was 69% in 2004, when liberal credit underwriting standards were bringing large numbers of traditionally-renting families into personal ownership).

These recently-displaced families are some of the almost-4-million Americans who have lost their homes through foreclosure or short-sales. Just because they have recently lost their homes, they have not just dropped off the edge of the earth. Rather, they have become the “New Renters”, a class of families which features a different ‘renters profile’ then we have seen in the past. These “New Renters” have demonstrated a respect for their personal property and a willingness to maintain the quality of their residences. In many cases, they even have a history of making their monthly payments on time.

If you are an Investor, these “New Renters” represent a great opportunity to purchase rental property. Please give me a  call to discuss this new opportunity in more detail.

WHAT DO BUYERS WANT ??

The February issue of REALTOR® Magazine contained a list of the things that today’s Buyers are looking for as they consider purchasing a new home. This list is the result of a survey of home Designers and Builders and should be very helpful to homeowners who are considering any remodeling projects. It allows you to spend your remodeling money where it will be most likely to show a good return on your investment, when you sell your home:

1. Large kitchens and islands
2. Energy efficiency, including energy-efficient appliances, super insulation and high-efficiency windows
3. Home offices
4. Main-floor master suites
5. Outdoor living space
6. Ceiling fans
7. Soaking tubs in the master suite and/or an oversized shower with a seating area
8. Stone and brick exteriors, rather than stucco or vinyl
9. Community walking paths and playgrounds

  10.  Two-car garages, but three-car garages are even more desirable

Now, get busy !!!

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

In honor of the Super Bowl, Here is the story of the Cajun in Hell

A Cajun who died went to hell. The devil assigned him the usual punishment....put him in the mass pit where the heat was melting others. The devil came back sometime later surprised to find the Cajun just sitting around, not even misting, much less sweating. "How come you're not so much as sweating here where everyone else is screaming for relief from the heat?"

The Cajun laughed and said, "Man, I was raised in the bayous of Sout Looziana. Dis ain't nothin' but May in Morgan City to me!"

The devil decided to really put the Cajun through it. He put him in a sealed off cave in the pit with open blazes and four extra furnaces blasting. When he came back, days later, the Cajun was sitting pretty, had barely begun to bead up with sweat. The devil was outraged.
"How is this possible? You should be melted to a shrieking puddle in these conditions!."

The Cajun laughed even harder than before."Hey, man! I done tole you. I was raised in Sout Looziana. You tink dis is heat?! Dis ain't nothin' but August in Cow Island !"

So the devil thought, 'Alright, a little reverse ought to do the trick.' He put the Cajun into a corner of hell where no heat ever reached. It was freezing and to add to the Cajun's misery, he added massive icebergs and blasting frozen air. When he returned, the Cajun was shivering, ice hung from every part of him but he was grinning like it was Christmas.

Exasperated, the devil asked "HOW? How is it possible?!You're impervious to heat and here you sit in conditions you can't be used to...freezing cold and yet you're happier than if you were in heaven. WHY?!"

The Cajun kept grinning and said, "Hey, man! Since dis is Hell, it must mean de Saints won da Super Bowl?"

HARRY’S COLUMN

BUYING OR SELLING ?  LOOK FOR THE AGENT WHO CAN OFFER INCENTIVES

In today’s economy, most consumers are looking for “deals”. As a result, smart businesses are offering incentives to their customers. Restaurants are offering “$20 dinner for two” deals. Grocery stores are featuring their own discounted brands. Smart consumers are taking advantage of these offers.

As for incentives in the housing market, some builders are now offering lower-cost, smaller houses to retirees. One builder stated, “The 1200 square foot house used to be built only on an odd lot where we could build little else. Now, it could be more of a mainstream product”. Other builder incentives feature such things as bargain-basement prices on upscale cabinets and spas. These ‘extras’ often make the difference between making or losing a sale.

If real estate Buyers and Sellers want to cash in on this trend, they should look for a Real Estate agent who offers the kind of incentives that will enable them to buy or sell their homes more efficiently and more profitably. For Sellers, this means an agent who can make potential Buyers feel more comfortable with their decision to purchase …for example, our Interstate Job Loss Protection Program reassures the Buyer that, if he loses his job, his mortgage payments (up to $1800 a month), will be made for up to 6 months, while he is looking for another job. Another example of an incentive that works for both Buyers and Sellers is our CyberHomes Complete Market Analysis of a property. This program enables both parties to get a realistic analysis of the home’s true market value.

But, perhaps even more important in today’s tight market, we offer a very effective package of valuable incentives to our clients who are in the process of buying or selling a home. As long-time specialists in relocation, we have developed close, working relationships with local lenders, banks, service providers, mortgage brokers, moving companies, staging companies, remodeling companies, etc. Furthermore, because we are affiliated with a network of relocation specialists in all parts of the country, we can offer assistance with these services to our clients nationwide. In addition, we can assist with arranging for temporary housing, trailing spouse re-employment, auto rentals and purchasing, discounts on furniture, information about the various neighborhoods and school districts and a variety of other specialized services that are extremely helpful to our clients as they go through the confusing process of relocating their families.

Putting a “For Sale” sign in your front yard is easy. Getting the best price possible for a Buyer or a Seller is the goal of any real estate agent who is worth his salt…. but using incentives to generate an additional $10,000 in our client’s pocket is our goal. Give us a call.

BUSINESS WEEK HIGHLIGHTS BLACK FOREST

On January 30, 2010, Business Week published a list of the fastest-growing cities in every state in the U.S. This year, they selected Black Forest as the fastest-growing “city” in Colorado. Here are some of the facts that led them to this decision:

Number of households – 13,072 (This represents an increase of 106% since 2000 and an increase of 6% since 2009

Average household income - $107,436 (This represents an increase of 13% since 2000)

Yes, yes, we know that Black Forest is not a city, but rather, it’s an area within the city of Colorado Springs, and Business Week’s accompanying explanation covers that fact, but the point is that Black Forest has shown a tremendous growth, in spite of the troubled economy.

There are some very attractive listings in the Black Forest and we would be happy to show them to you. Give us a call.

GOOD NEWS..BAD NEWS.  IT’S A BALANCING ACT

On January 31, 2010, the Gazette reported that our local economy has seen the bottom of the recession. Four of the local monthly economic indicators for December, 2009 show good news but four other indicators show that we have still not reached full recovery.

            The Good News:

                         Initial claims for unemployment are down 19.9%

                        Single-family home permits are up 104.7%

                        New auto and truck registrations are up 20.4%

                        Taxable retail sales are up 2.5%

             The Bad News:

                         Wage and salary jobs are down 3.7%

                        Unemployment rate is up to 7.9% (but that’s better than the national rate of 10%)

                        Hotel occupancy rate is down 33.6%

                        Foreclosure filings are up 32.4%

The article points out that, although the indicators all look promising, full recovery might take a couple of years. In the meantime, there are some terrific deals available in our local real estate market.

HAVE YOU LISTENED TO MY LATEST PODCAST?

Every month, we are interviewed about local and national trends in real estate, topics of interest in our city, the latest news about tax credits, FHA rule changes, current sales and listing statistics, the status of our local market as it compares with the national picture, and a variety of topics that you might find helpful in planning your next Real Estate investment. To hear my most recent interview, just click on the podcast link at the top of this email.

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.

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

There has been a lot of speculation recently about the direction our country is taking. In order to illustrate the various terms used to explain our options, we offer the following examples:

SOCIALISM: You have two cows. The state takes one and gives it to someone else.
COMMUNISM: You have two cows. The State takes both of them and gives you the milk.
FASCISM: You have two cows. The State takes both of them and sells you the milk.
MILITARY DICTATORSHIP: You have two cows. The State takes both of them and shoots you.
BUREAUCRACY: You have two cows. The state takes both of them, accidentally kills one and spills the milk in the sewer.
CAPITALISM: You have two cows. You sell one and buy a bull.
PURE DEMOCRACY: You have two cows. Your neighbors decide who gets the milk. REPRESENTATIVE DEMOCRACY: You have two cows. Your neighbors pick someone to decide who gets the milk.

AMERICAN DEMOCRACY: The government promises to give you two cows if you vote for it. After the election, the president is impeached for speculating in cow futures. The press dubs the affair "Cowgate".

ANARCHY: You have two cows. Either you sell the milk at a fair price or your neighbors kill you and take the cows.

HARRY’S COLUMN

EVERYBODY LOVES COLORADO SPRINGS

On January 21, 2010, the Colorado Springs Regional Development Corporation released their annual report on the economy of Colorado Springs in 2009. In their 20 page report, they included some references to our city in various national publications. In no particular order, here are some of the recognitions that Colorado Springs received in 2009:

The University of Colorado at Colorado Springs was ranked 6^th best in the nation for engineering and the quality of all programs – U.S. News and World Report

3^rd Best Cities for a Housing Recovery – Forbes.com

24^th Metro Least Touched by Recession – Business Week

One of the best Southwest cities for defense jobs – FedSmith.com

9^th in America’s Best Midsize Metropolitan Areas – MSNBC

10^th on the list of Best Places for Business and Careers – Forbes Magazine

8^th best city to find a fresh start – Business Week.com

6^th top city for defense jobs – ClearJobs.com

9^th in America’s “Best Bang For The Buck Cities” – Forbes.com

3^rd Midsize Magnet city – Next Cities

14^th for areas with the cleanest air – American Lung Association

Best Place to Live – Outside.online

7^th Best City to Raise an Outdoor Kid – Backpacker Magazine

3^rd most-obsessed sports town in America – Men’s Health Magazine

2^nd fittest city in the country – Men’s Fitness Magazine

One of the top “10 Best Drivers’ Cities in America” – Car and Driver Magazine

10^th best drivers – Allstate America’s Best Drivers Report

Well, this is all fine and dandy, but many people think it might be a good idea to keep all this positive P.R. a secret. They don’t want everybody in the world to know what a great place this is to live. But we wanted you, our readers, to know, so you could take advantage of the opportunity to buy real estate right now, while prices and interest rates are low and before the secret is out.

APRIL 5 AND APRIL 30 – TWO DEADLINES FOR BUYERS AND SELLERS

There are two upcoming deadlines that will affect both Buyers and Sellers of real estate nationally. We will outline both of these deadlines here:

The first deadline for Buyers and Sellers is April 5, 2010. On that date, the Department of Housing and Urban Development will initiate new regulations for FHA loans. Among the changes that will take affect on that date are:

1. The mortgage insurance premium for FHA mortgage insurance on loans which are assigned on or after April 5, 2010 will be raised from 1.75% to 2.25% of the loan amount.

2. Individuals who have a credit score of less than 580 will be required to pay a minimum down-payment of 10% of the sales price, rather than the traditional minimum of 3.5%.

3. The percentage of loan fees and closing costs which the seller is allowed to provide will be reduced from 6% to 3%.

These changes will make purchasing a home more expensive for Buyers and will reduce the incentives that Sellers can offer to prospective Buyers.

Because there will probably be a lot of people who want to beat this deadline, there could easily be a backlog of loan applications, so we are advising our clients to buy in March, to insure that their loans will be assigned by April 5, 2010.

The second deadline involves the Homebuyers Tax Credit, which provides for a tax credit of $8000 for first-time Buyers and up to $6500 for repeat Buyers. This tax-credit will no longer be available for anyone who does not have a contract in place by April 30, 2010 and which must close by June 30, 2010. Please give us a call to discuss the details of this program which could be a very valuable benefit to you.

Buyers, please contact us to learn more about the soon-to-be-expired opportunities for purchasing your home. Sellers, please contact us for information about marketing your home, especially for assistance in properly pricing your home in this competitive market.   

The bottom-line for both of these significant deadlines is that, whether you are a prospective buyer or seller,  NOW IS THE TIME TO MAKE YOUR MOVE  !!!

NEW IRS FORM AVAILABLE FOR FIRST-TIME HOMEBUYERS CREDIT

Department of the Treasury Form 5405 is now available online for individuals claiming their tax credit as first-time homebuyers, or, as repeat buyers. Click here for a copy of the form.

U.S.CONSUMER CONFIDENCE REACHES HIGHEST LEVEL SINCE SEPTEMBER 2008.

After declining throughout much of 2009, American consumer confidence improved sharply in January 2010, returning to levels not seen since the financial crisis began in September, 2008. This was reported in the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index, as reported in RISMEDIA. Driven by the largest-single-month gain in expectations for jobs since the inception of the Index eight years ago, the RBC Index for January 2010 stands at 58.3, up 19.3 points from its December 2009 reading of 39.0.

On the local front, sales tax collections rose 2.54% in December 2009, compared to December of 2008. This represented the largest monthly gain since January of 2008 and was the second consecutive year-to-year gain, in spite of the fact that local unemployment in November, 2009 was reported at 7.3%. Compared to the reported national unemployment figure of 10%, that would place us about 20% better-off than the rest of the country.   

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

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

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

JOKE OF THE WEEK

 A man receives a call from his Credit Card Company,

“Sir, we have detected an unusual pattern of spending on your card, and we are calling to see if everything is alright.”

"Yes,” replied the man. “My card was stolen over a month ago.”

“Why didn’t you report your card as stolen?” asked the card company representative.

The man replied, “Well, whoever stole my card is spending a lot less than my wife!”

HARRY’S COLUMN

INCENTIVES ARE THE BUZZWORD

Considering wherever you might be within the current position of your business cycle, various types of incentives are what will create the positive change. Incentives can be all types, from the Federal Government, to states and cities; from the Seller who must sell their house to using various bonuses to attract a Buyer.

In order to receive the greatest rate of return, here are some examples of marketing concepts that we have found to be mutually beneficial – whether you are a Buyer or a Seller. (Because all elements affecting real estate values, marketability, timeliness, etc., are localized, the enticements presented here are focused on the Colorado Springs area. Many of these ideas can certainly be correlated to other cities.)

One example of our services that can positively affect a client is our “incentive” of “Job Loss Protection”.

In the past week we have referred a doctor who is moving to Colorado Springs from Philadelphia to the proper real estate company to sell his house in Philadelphia.  We met with a local Seller who will be moving to Tennessee, to place their home in the Monument area on the market. In both cases, our “Seller” can use our Job Loss Protection as a great benefit to outperform their listing competition.

To remind our readers of the highlights of that marketing advantage, it is patterned after what Hundai Motors has done since 2008.  We’re sure you have seen their ads on TV. In a nutshell, what we offer is that, from the time of a closing, if a Buyer loses their job and gets “laid off”, we have a non-profit firm in Virginia to subsidize the Buyer’s monthly payment up to $1800 per month for up to 6 months. In order for the Buyer to obtain that terrific benefit, all they have to do is demonstrate that they are receiving  unemployment benefits from the state.

In order to fund this selling enhancement, at the time of closing, the Seller is debited only $500 on their HUD statement. It therefore reduces the capital gain upon the sold property.  We have found that this feature is a definite win for both the Buyer and the Seller.

Some other enticements that we offer to our Buyers, Sellers, corporate accounts, etc., are.:

Cyberhomes Complete Market Analysis for prospective Buyers

One year of Home Owner Association Fee

Family Gym Memberships

Riding Lawnmower (park in garage with a large bow and sign)

One year of Property Insurance

Snow Blower (park in garage with a large bow and sign)

One year paid Lawn Care, Maid Service, Snow Removal, etc

Gift card to Home Depot or Lowes

Gift cards for local Fine Dining.

Allowance for upgrades such as Hardwood Floors, Counter tops, Appliances, Light Fixtures

Allowance to upgrade Kitchen / Bath

Interest Rate Buy Downs

Prepay real estate Taxes for 6 months to a year

Pay Buyers Closing Costs

Bonus Commission to the Selling Agent

½ Day Packing Service

Packing Materials

Staging

Reimburse Inspection Fee upon closing

Just look at everything you’re missing, if you don’t buy a house from us !!!!

We welcome the opportunity to see how we can implement these ideas into your individual needs to outperform your competition.

WHY YOU WILL BENEFIT AS A real estate INVESTOR

We can no longer say, “Well, it’s business as usual”, or, “Well, the last time we came out of a recession, we did …..”. There are an absolute different set of criteria staring at us in the mirror. Here are some thoughts that, when implemented properly, should put some money into your pockets.

No matter what city you are reading this from, because it goes nationwide, these issues can be localized and are not exclusive to Colorado Springs. We are seeing an above average demand for good-quality rental homes, from both investors and from tenants. You see, it is our belief that many people who are losing their homes due to a foreclosure or short sale are still “credit worthy”. Their foreclosure problem might be because they were placed into the wrong mortgage by their lender. In other words, perhaps they didn’t meet a conservative type of qualification for the type of mortgage loan that their lender advised them to obtain. We are talking about millions, yes, millions of loans that were provided with “built-ins” like; zero funds down, a negative ARM, a loan of 105% to 125% of the sales price, etc.

Those people do not seem to be like the same borrower profile that the industry had to deal with prior to about 2005.

The increase in rental demand that we are seeing requested for rental homes today are from a tenant profile of a family which has been a recent property owner. They have typically maintained proper care for both the interior and exterior of their homes. Another major reason that the “tenant profile” has been established is because they were advised to obtain a mortgage with an adjustable rate. When the lender went to re-establish the new rate, the market value of the property was considerably below the current loan balance. Based upon the negative equity in the home, lenders either required the borrower to pay down the current loan balance or, if the homeowner was either unable or unwilling to do so, the lender began the foreclosure process.

Based upon a huge increase in this type of foreclosures and short sales, those former homeowners are increasing. There are many more people who must rent a home today, compared to the number of tenants prior to the middle of the past decade.

The point is that we are seeing a much greater demand for nicer rentals than we have seen in past years.

This ‘tenant profile’ should be a better quality tenant because they are used to properly taking care of their personal home.

Therefore, since the market is providing the investor with:

            A better quality of tenant

            The ability to select a better quality of rental house to buy

            Record low interest rates for a “non-owner occupant”

            Appreciation in housing values because of the looming inflation

You should probably give us a call to allow us, as an investor advisor, to give you some ideas of how the Colorado Springs residential market can be a positive factor in your investment portfolio.

GAZETTE PUBLISHES MOST RECENT HIGH-SCHOOL GRADUATION RATES

The Colorado State Board of Education has released the local high-school graduation rates for 2009. You will note that, among the best performing districts, are Academy (2), Lewis-Palmer (38) and Cheyenne Mountain (12). Courtesy of the Gazette, we are linking the statistics here.

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.

To hear my latest podcast, just click on the icon at the top of this email 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 MONTH

Once upon a time, in a place overrun with monkeys, a man appeared and announced to the villagers that he would buy monkeys for $10 each.

The villagers, seeing that there were many monkeys around, went out to the forest, and started catching them.

The man bought thousands at $10 and as supply started to diminish, they became harder to catch, so the villagers stopped their effort.

The man then announced that he would now pay $20 for each one. This renewed the efforts of the villagers and they started catching monkeys again. But soon the supply diminished even further and they were ever harder to catch, so people started going back to their farms and forgot about monkey catching.

The man increased his price to $25 each and the supply of monkeys became so sparse that it was an effort to even see a monkey, much less catch one.

The man now announced that he would buy monkeys for $50! However, since he had to go to the city on some business, his assistant would now buy on his behalf.

While the man was away the assistant told the villagers, “Look at all these monkeys in the big cage that the man has bought. I will sell them to you at $35 each and when the man returns from the city, you can sell them to him for $50 each.”

The villagers rounded up all their savings and bought all the monkeys.

They never saw the man nor his assistant again, and once again there were monkeys everywhere.

Now you have a better understanding of how the stock market works