Real Estate Information Archive

March 6, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

IT’S A TOUGH TIME FOR THE housing market BUT AS I’VE REPEATEDLY SAID…THERE ARE ALWAYS THOSE WHO HAVE TO SELL AND THOSE WHO HAVE TO BUY…

As we approach the spring buying season, things are quite different from a year ago.  That said, Colorado Springs has almost always fared better than the rest of the nation during market downturns and I expect it to recover faster than most as well.

We’ve got many things in our favor.  With a number of companies planning to relocate to the Springs you’ve got relocating employees.  And local companies are adding to their staff as well.  All you need to do is drive downtown or head southeast and northwest and you can see for yourself how quickly this City is expanding.  

For better or worse, folks are discovering what we already know…Colorado Springs has a lot to offer besides a beautiful view of Pikes Peak.  We have a fabulous work/life balance that workers today crave and that’s not easy to find in many other areas.  

Why do I mention this?  Well, if you follow the statistics I provide monthly you can see that our median home prices, while slightly lower than a year ago, have not fallen nearly as much as many other cities.  Yes, we are not seeing the 15% year-over-year monthly gains of the recent past, but as I have said all along, those increases were not sustainable, nor were they realistic.  They were the product of a lack of available homes for sale and historically low interest rates.  Period. 

We are now seeing the market “normalize”, and while homes are staying on the market longer and interest rates are considerably higher, I expect the pace of buying and selling to accelerate as soon as interest rates head down a bit.

It’s important to note that even at 7%, interest rates are nothing near the historical highs of the early 1980’s when rates were over 18 percent.  Some of us can remember those days and yes, we WERE selling homes at those rates!

In fact, when I purchased my first home, which coincided with my first year in the real estate business, I felt lucky that the interest rates DROPPED to 8.5% by the time of closing!!  

Here’s a snapshot of the rates of this decade for 30-year fixed rate loans:

Recent affordability was tough, especially for first-time buyers, even prior to the interest rate increase.  Home prices were going higher and higher.  Now, with home price appreciation stabilizing, there are several creative ways to purchase and finance a home, whether to sell and trade up, buy for the first time or buy for investment purposes.

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

My almost 51 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

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

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

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

 

And now for statistics…

 

FEBRUARY 2023

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

Here are some highlights from the February 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 53.  For condo/townhomes it was 35.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 98.7% and for condo/townhomes it was also 98.8%.  

 

In Teller County, the average days on the market for single family/patio homes was 62 and the sales/list price was 97.4%.

 

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

 

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

                        

                        Single Family/Patio Homes:

·       New Listings were 976, Down 17.7%

·       Number of Sales were 778, Down 23.3%

·       Average Sales Price was $500,483, Down 2.8%

·       Median Sales Price was $440,000, Down 5.4%

·       Total Active Listings are 1,443, Up 196.3%

·       Months Supply is 1.9, Down 8.4%

 

Condo/Townhomes:

·       New Listings were 162, Down 18.6% 

·       Number of Sales were 104, Down 35.0%

·       Average Sales Price was $359,350, Up 1.6%

·       Median Sales Price was $336,250, Down 7.2%

·       Total Active Listings are 225, Up 257.1%

·       Months Supply is 2.2, Down 7.3%

 

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

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

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

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

 

• Sold Listings for All Properties were Down 27.1%

 

• Median Sales Price for All Properties was Down 5.2%

 

• Active Listings on All Properties were Up 96.0%

 

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

 

INFOGRAPHIC…A CHECKLIST FOR SELLING YOUR HOME THIS SPRING

KeepingCurrentMatters, 2.24.23

Note to Sellers:  These are a few of the things you might consider to make your home as attractive as possible for potential buyers.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, February 2023

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

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

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

 

HARRY’S JOKES OF THE DAY:

 

 

 

February 21, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

SPRING BUYING AND SELLING SEASON IS ALMOST HERE

The Wall Street Journal 2.16.23

As I was preparing to write this eNewsletter, The Wall Street Journal had an article with some great information about the same things I was going to tell you.  I’ll share that, and more, right here.

While the market frenzy of the past several years is now behind us, don’t expect the spring buying and selling season to be a “walk in the park” so to speak.

The affordability crunch, given the median single-family home prices and the mortgage interest rates, is working against some buyers, and most especially for first-timers.

However, potential buyers are entering an improved market where bidding wars are less common, and homes are staying on the market longer.  In January, homes nationwide were on the market a median 51 days, an increase of more than three weeks from a year ago, according to Redfin.  In Colorado Springs, it was essentially the same.

Seller and Buyers should both be prepared to make reasonable concessions to get to the closing table.  This could mean a Seller offering x-amount to the Buyer to use for whatever the Buyer may feel the home might need or the Buyer offering to let the Seller lease back the home for a specified time to facilitate a move to a new home.  

Whatever the concession, it’s worth considering to get an offer accepted.  According to Redfin, Buyers received concessions in 42% of home sales in the fourth quarter, up from 31% a year earlier.

And continuing a trend that began during the recent market frenzy, cash offers and strong financing continue to often win out over higher offer prices.  Buyers should aim for a down payment of 20%.

Problems with financing and home inspection are among the most common reasons for contracts falling through.

While a cash offer is “king” for a Buyer looking to play hardball, for many Buyers it isn’t an option.  Being fully pre-approved from a lender is the next best thing to help facilitate the sale rather than a simple pre-approval letter that hasn’t gone through the lender’s underwriting process yet.

Homes that have been on the market for several months this winter may offer discounts to Buyers who are now ready to make a deal.

What I’m saying is that NOW is a great time to get ready for the spring season.  Buyers will be looking, and Sellers are ready.  That’s a win-win situation when properly matched.

That’s why you’ve got me.  Not only am I the “real estate Therapist”, I’m also a great Matchmaker.  With my almost 51 years of experience in the local Real Estate arena, I’ve become an expert at putting together deals that work.  

Yes, interest rates are higher than they’ve been, and home prices are not getting cheaper, but there is almost always a way to find a home that can meet your wants, needs and budget requirements.  And my guess is that this spring is going to be a great time to make that happen.

But whether you’re buying or selling, it begins with a phone call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  Together we can make all your Residential real estate dreams come true.

 

AND, A LITTLE BIT OF BRAGGING…

Once again, I’m happy to report that I have achieved a top honor at ERA real estate.  As a member of the Circle of Honor I was recently honored for my “extraordinary efforts and commitment to success”.  

I don’t work for any reason other than to make certain I do the very best for my clients, but I must admit that it’s nice that my company also appreciates what I do.  So, when you see the decal below, you’ll know what it means!

 

COLORADO SPRINGS HOME PRICES ARE HIGHER IN FOURTH QUARTER…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 2.9.23 

Median prices of single-family homes across the nation rose for Quarter Four 2022 in 90% of the 186 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 4.0% to $378,700 from one year ago.

Home prices in Colorado Springs rose less than 1% for that same time period but was still ranked number 36 based on Median Sales Prices of the 186 cities surveyed.  The Median Sale Price here for the end of Quarter Four 2022 was $443,400.  Prices reflect detached, single-family and patio homes but not townhomes or condominiums.   

And once more, the good news is that while our home values are increasing, they are still less than those in the Denver, Boulder, and Ft. Collins areas, which makes our city more attractive to potential companies and others wanting to relocate here.

Qualifying income for local mortgages continues to rise.  However, increased home value in your present home can likely give you a larger down payment.   That could possibly keep your monthly output lower than you might expect, even in a more expensive new home. 

To see all 186 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.   To see the qualifying income necessary for mortgages, click here.  

And if you have any questions, you know where to reach me.

 

THE SPRING housing market CAN STILL BE A SWEET SPOT FOR SELLERS---AN INFOGRAPHIC

KeepingCurrentMatters, 2.17.23

 

Some Highlights:

• The biggest challenge in the housing market is how few houses there are for sale compared to the number of people who want to buy.

 

• The number of homes for sale is up from last year but below pre-pandemic numbers, and that means we’re still in a Seller’s market.

 

• The housing market needs more homes for sale to meet the demand of today’s buyers.  If you’ve thought about selling, now’s the time to contact me.

 

SHOULD YOU CONSIDER BUYING A NEWLY BUILT HOME?

KeepingCurrentMatters, 2.15.23

While you might be focusing on previously owned homes in your search for a new home, with so few choices today it might make sense to consider all options, which include a home that’s newly built.

Even though there are more homes for sale today than a year ago, there’s still an historically low number of available homes on the market.  One reason for that is years of underbuilding—meaning there haven’t been enough new homes built to keep up with the demand.

During the past 14 years, the number of new homes being built each year is on the rise and that’s good news for Buyers. According to Mark Fleming, chief economist at First American:

“While existing-home inventory remains limited, the silver lining for home buyers is that new-home inventory is on the rise, and a new home at the right price is a pretty good substitute.”

 

And, while there is a growing number of newly constructed homes for sale, builders are slowing the pace until they sell more of their current inventory.  According to Logan Mohtashami, Lead Analyst at HousingWire:

“The builders have to work off the backlog of homes, but instead of 3%-4% mortgage rates, they’re dealing with 6% plus mortgage rates, which means they have to provide many incentives to make sure those homes sell.”

 

Many builders are now offering incentives to help Buyers purchase these homes.  Fleming also explains:

“The National Association of Home Builders reported that nearly two-thirds of builders were offering incentives, including mortgage rate buydowns, paying points for Buyers and price reductions, which could entice home Buyers.”

 

A builder who is willing to pay to reduce your mortgage rate could be a game changer.  Ksenia Potapov, Economist at First American puts it this way:

“A one percentage-point decline in mortgage rates has the same impact on affordability as an 11 percent decline in house prices.”

 

Should you buy a brand-new home?  There are many things to consider, including location, and the only way to determine that is to meet with a knowledgeable real estate professional like me who can help you determine if that is the best way for you to go.

And did I mention that new home purchasing advice is one of the services I provide my clients at no additional charge to them?  

I have long time working relationships with a number of local builders, so if you are considering new home purchasing, just give me a call and let’s see if that fits into your long term Residential real estate plan.  It might be just the right decision for your individual situation.  

 

HARRY’S JOKE OF THE DAY: 

February 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

       A Current Look at the Colorado Springs Residential real estate Market

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

WITH SPRING BUYING SEASON ALMOST UPON US, THE LOCAL housing market IS SHOWING SIGNS OF INCREASED ACTIVITY

It’s  been a long couple of months in the Residential real estate market, both locally and nationally, but things are starting to look up here just in time for the traditional busy time of year.

To begin with, mortgage interest rates have been falling and should go down a bit more in the coming months.  And, as you will see in the statistics below, there are more homes on the market now, and I would suspect that there will be even more in the next month or two.

Traditionally, folks wait to put their homes on the market after the holiday season and while we saw fewer new listings last month compared to a year ago, there are considerably more homes for sale than there were last year at this time.  Almost two hundred percent more single-family, townhomes were actively for sale in last month compared to last January!  

That is great because there are many folks looking to buy here for so many various reasons.  First, rental prices are still going through the roof and many renters are looking for ways to become homeowners.  Then we have new companies relocating here and their employees are also looking for to relocate and find housing. Folks who had waited too long to sell and trade up and found themselves in a bind due to the rising interest rates along with the greater home appreciation are now finding ways to make their dreams a reality.

Colorado Springs is as desirable a place to live as it’s ever been, and the city is still getting great press.  A recent article in Fortune Magazine entitled “Best Place to Travel in 2023” includes Colorado Springs among many foreign cities, as well as some others in the U.S.  And, as you well know, once you visit Colorado Springs, somehow you start thinking about relocation!  It’s happened to the best of us and I’ve no doubt it will continue for years to come.

Those who were thinking prices were going to fall are realizing that it’s just not going to happen.  Yes, the bidding wars and sales considerably over listing price may be gone now that there are more homes for sale, but don’t think you’re going to see a drop in home values here.

I’ve personally predicted an increase of 3%-5% for 2023.  I wouldn’t even be surprised if this is on the low side, but we will have to wait and see.  What I do predict is that home values here in general are not going to slide.

If you’ve even considered a move, to sell and trade up, move to a new neighborhood or for investment purposes, you might want to get a jump on the sure to be busy spring buying season.

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

My almost 51 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

If Residential real estate is among your hopes and dreams for 2023, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

JANUARY 2023

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

Here are some highlights from the January 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 50.  For condo/townhomes it was 37.  

Also in El Paso County, the sales price/list price for single family/patio homes was 98.4% and for condo/townhomes it was also 99.0%.  

In Teller County, the average days on the market for single family/patio homes was 56 and the sales/list price was 97.5%.

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

 

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

                        

                        Single Family/Patio Homes:

·       New Listings were 965, Down 18.2%

·       Number of Sales were 739, Down 30.2%

·       Average Sales Price was $525,254, Up 6.1%

·       Median Sales Price was $445,000, Even

·       Total Active Listings are 1,639, Up 198.5%

·       Months Supply is 2.2, Down 6.6%

 

Condo/Townhomes:

·       New Listings were 181, Down 11.7% 

·       Number of Sales were 90, Down 43.0%

·       Average Sales Price was $335,963, Down 1.9%

·       Median Sales Price was $337,250, Down 2.2%

·       Total Active Listings are 256, Up 224.1%

·       Months Supply is 2.8, Down 5.2%

 

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

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

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

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

 

• Sold Listings for All Properties were Down 33.2%

 

• Median Sales Price for All Properties was Even

 

• Active Listings on All Properties were Up 108.4%

 

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

housing market SHOWS SIGNS OF THAWING

The Wall Street Journal, 2.6.23

As I was writing this, I glanced online and saw an article saying pretty much what I had shared above.  So, here’s what it said:

“A decline in mortgage rates has more people interested in buying a home”

In response to signs that the Federal Reserve is nearly finished lifting rates, the average 30-year home loan rate has come down by just about a full percentage point from a 20-year high above 7% in November.

Mortgage applications are up by about a quarter since the end of last year and a measure of signed real estate contracts rose in December after six months of declines.  In addition, the number of people contacting real estate agents has rebounded from a November low, according to Redfin Corp’s internal data.

While rates are still considerably above the 3% range of a year ago, the fact that they are now a percent lower than November is a good sign and folks are pleasantly happy.

The housing market is a barometer of how the economy is responding to a loosening of financial conditions in recent weeks.  Stocks and bonds have both rebounded strongly to start the year on the premise that inflation is coming down without putting the U.S. into a deep recession.

The Fed is still indicating that it is committed to keeping rates high until inflation is lower and it is willing to risk a recession to do so.  Only time will tell how this will play out.

However, economists at Goldman Sachs Group have said this past month they expect the worst of the downturn has passed and housing is poised to exert less of a drag on economic growth going forward.

Execs at D.R. Horton, Inc., the largest U.S. homebuilder by volume, told analysts in January that they have seen heightened sales activity in the first few weeks of the year.  Nets sales, they said, are expected to increase significantly from the first quarter to the second, when the traditional spring selling season happens.  

As I have always said, it appears that folks “are less focused on the specific rate than they are on identifying a window of where they are comfortable with their monthly output”, according to a Redfin agent in Washington, D.C. also.

The Journal cited an example of an assistant superintendent in a Phoenix school district who started looking to buy a house with her boyfriend in the past few weeks.  After looking at about a half dozen houses, they made an offer that was accepted last week.

They decided to purchase knowing that rates might fall, and they could refinance their current mortgage later on. According to her, “I’m thinking this isn’t a forever thing.”  Exactly what I’ve been telling my clients.

Homebuilders have been offering incentives to sell their finished homes and some buyers are signing up for mortgages with rates that are temporarily lowered for the first few years.

Refinancing has fallen drastically from when homeowners were refinancing at rates that were around 3% or lower. Far fewer can save money at rates above 6%.

Pending home sales—a leading indicator for the housing market—rose 2.5% in December, led by gains in the South and the West, according to the National Association of Realtors (NAR).  

So, once again, if you’re even considering a move—the best first move would be to give me a call.  I’ve been through most all cycles imaginable over the last 51 years and can help you navigate the still somewhat stormy seas of home buying and selling.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, January 2023

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

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

January 24, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

WHETHER IT’S YOUR PERSONAL HOME, OR A HOME YOU PURCHASE FOR SPECIFIC INVESTMENT PURPOSES, ALL real estate IS AN INVESTMENT

​​

As you know by now, I don’t just sell Residential real estate, I totally believe in it, and most especially as a means of investment.  It can be the home you live in or the home you buy to rent out to others, ALL Residential real estate is an investment.  And like any investment, it’s not going to appreciate overnight.  While Residential Real Estate has traditionally outperformed the stock and bond market over the long haul, the key to that is “time”, or the “long haul”. 

I may be celebrating almost 51 years in the local residential real estate arena, but prior to that I was a Finance major at Arizona State University. After graduation I moved to Denver, associated with a Wall Street type firm, and began my professional career for three years as an Investment Banker.

Wanting to move to a smaller community, I relocated to Colorado Springs and decided that with my finance background, and knowledge about the mortgage market, selling Residential real estate might be a good fit.  That way I was able to help others invest in themselves by purchasing real estate and I could assist clients in finding the best mortgages and more. The rest, as they say, is history. 

I still start each morning reading The Wall Street Journal, with particular emphasis on the numbers—the prices of lumber, steel, aluminum, and more since they affect new home construction prices. Then I look at all different types of current mortgage rates which are the average of 4800 mortgage companies.  From that I can determine the best mortgage products for my clients for either purchasing a personal residence or investment properties.

Why is this of importance to you?  If you haven’t figured it out by now, my experience, in Residential real estate as well as financial matters concerning same, is why I’ve consistently been one of the top agents in the Springs.  I would have retired by now except that it’s still a pleasure for me to help people on their road to financial success in real estate, and I have enjoyed working with not only the children, but recently some grandchildren, of clients and friends.  I don’t call it work, although at times the recent market swings did require a lot of finagling for sure.  The satisfaction I get from helping folks is what keeps me going, and I’m always learning new ways in which to help.

Some folks have been timid about jumping into today’s market due to the higher mortgage rates coupled with higher prices on homes.  I’ve been around long enough to see rates as high at 20% so when I look at the 6%+ of today I don’t think “high”.  I also know that once inflation settles down, rates will go back down a bit as well.  

Will they go back to the 3% of several years ago?  I seriously doubt it.  That was unrealistic and created a Sellers’ market like none I had ever experienced.  It also created unrealistic home value appreciation that could never be sustained.  We are now experiencing a more normal appreciation and that is a boon for both Buyers and Sellers.

Since I am a “numbers” guy, and one who totally believes in Residential real estate as an investment in all areas, I decided to look at the type of home appreciation that we saw over the last 15 years.  I put it in chart form, and it is reproduced below.

Basically, what you will see is that even through the mortgage crisis of 2007, as well as the ups and downs of the past several years, Residential real estate as an investment has held its own very well.

I have compared the realized gains of both the average and median single-family home prices in Colorado Springs over the past 15 years and the chart will show you the 5-year, 10-year and 15-year gains to homeowners.  

Those numbers and more are why I totally believe in Residential real estate as an investment.  After all, in most cases, your home is your greatest asset.  And over the long haul, it’s likely to provide you an excellent return on your investment, as well as providing you with tax benefits not available to renters.

Any questions regarding my chart, please give me a holler.

And if you are wanting to move but think now isn’t the “right” time, you owe yourself a call to me.  There are a number of ways to make buying a home, either for yourself or for investment purposes, a reality but you won’t know unless we sit down and look at all the numbers.

I can be reached at 719.593.1000 or emailed at Harry@HarrySalzman.com and I look forward to talking with you soon.

 

WHY INVESTING IN real estate IN 2023 COULD BE A GOOD DECISION

Transactly 12.30.22

Here are some valid reasons from other professionals on real estate investment property purchases in 2023:

 

Strong rental demand

One of the most compelling reasons to invest in real estate is the potential for steady rental income.  With so many people opting to rent rather than buy, the demand for rental properties is strong, which often leads to higher occupancy rates and higher rent prices.  This trend is likely to continue in the coming years, as rising housing prices and tighter lending standards make it hard for many to become homeowners.

 

Potential for long-term appreciation

While it’s not possible to predict exactly how much a property will appreciate over time, real estate has a history of increasing in value over the long term, as I portrayed in the chart above. This is due to a number of factors, including inflation, population growth, and economic expansion.  By holding onto a  property for a number of years, you may be able to sell it for a significantly higher price than you paid for it.

 

Diversification of your investment portfolio

Investing in real estate can help diversify your investment portfolio.  While stocks and bonds are often a significant part of any investment strategy, adding real estate to the mix can help reduce risk and increase potential returns.  This is because the performance of real estate tends to be less correlated with other asset classes, meaning it can provide a buffer against market volatility such as we’ve seen in recent times.

 

Potential tax benefits

Owning rental properties can also offer a number of tax benefits.  For example, you may be able to deduct certain expenses related to your rental property, such as mortgage interest, property taxes and repairs.  As always, I would advise you to contact your investment and tax advisors to see how owning a rental property can provide you with these type of benefits.

 

Opportunity for passive income

Investing in real estate can also provide a source of passive income, which can be especially attractive for those who are looking to supplement their retirement income or simply want to generate additional income without having to work full-time.  By hiring a property manager to handle the day-to-day responsibilities of the property, you can potentially earn rental income without having to put in a lot of time or effort.

 

Ability to leverage your investment

Another advantage of investing in real estate is that it can be done with leverage, meaning you can borrow money to make a larger investment than you could afford to make with your own cash.  This can allow you to acquire more property or invest in more expensive properties, which can lead to higher returns.  However, it’s important to be mindful of the risks associated with leverage, such as the possibility of defaulting on your loan or losing your investment if the value of the property decreases.

 

Overall, investing in real estate in 2023 has the potential to be a good decision for those who are looking for a long-term investment with the potential for steady rental income, appreciation, and tax benefits.  While it’s important to carefully consider the risks and do your due diligence before making any investment, real estate can be a valuable addition to a well-diversified portfolio.

 

 

HOME SALES NUMBERS NATIONALLY IN 2022 WERE THE WORST SINCE 2014

The Wall Street Journal, 1.21-22. 2023, The Gazette, 1.21.2023

Home sales nationally last year were the lowest in nearly a decade according to a recent report from the National Association of Realtors (NAR).  This was the biggest annual decline since 2008, during the housing crisis of the late 2000’s.  

According to NAR, the median national home price for last year jumped 10.2% to $386,300 and it’s up 42% from 2019 before the ultralow interest rates and pandemic-fueled demand sent the market into a frenzy. That translates to a median $114,000 increase in housing wealth in three years.

“So, homeowners have done well during this housing (market) from 2019 through Covid until now,” said Lawrence Yun, chief economist for NAR.  “The one big negative for home sales is home prices, which have risen dramatically, much faster than peoples’ income.”

Mortgage rates more than doubled in 2022, climbing to a two-decade high of 7.08% in the fall with the Federal Reserve continuing to boost its key lending rate in a quest to cool the economy and tame inflation.  

Home sales slowed from the fast pace at the start of 2022 as the surge in borrowing costs limited the buying power of home hunters.

While rates have come down since the high of late last year, they are still significantly higher than the beginning of 2022.  

According to Yun, “Mortgage rates have fallen in the recent past weeks, so I’m very hopeful that the worst in home sales is probably coming to an end.  Maybe this latest monthly figure (from December) will be the cyclical low point.”

Homebuilders and sellers are offering incentives to potential buyers and cutting prices in response to the low demand.  And a measure of U.S. home-builder confidence rose this month, ending a 12-month streak of declines, according to the National Association of Home Builders.

Home sales typically lag during the winter months and pick up during the spring buying season.  While this was not the case in the last several years during the frenzy, getting back to “normal” seasonal based buying could see more homes on the market and more sales during that period this year.

Pricing and incentives are going to be very important in homes sales this spring and having a seasoned, knowledgeable real estate professional on your side will make the difference between a sale and disappointment.

That’s where I come in.  Having someone like me on your side can make the difference whether you are looking buy or sell.  Spring buying season will be here before you know it, so if you’re looking to buy or sell, give me a call and let’s map out your strategy early.  Knowing in advance your individual needs, wants and budget will make you more prepared as a buyer and understanding the true value of your present home will make you equally prepared as a seller.  I can help with both.  

Give me a call sooner than later and let’s see how we can make your Residential real estate wants and needs a reality.

 

AVERAGE LONG-TERM U.S. MORTGAGE RATE IS LOWEST SINCE SEPTEMBER

The Gazette, 1.20.2023

As I mentioned earlier, mortgage rates are down from their high in the fall of last year and are now at their lowest since September.  

This is a significant plus for the spring buying season and while home prices are still high, some sellers are lowering sales prices in order to attract potential buyers. 

Colorado Springs has been like the rest of the nation with low sales numbers but with interest rates hopefully on their way down, we are likely to see sales numbers go up. 

Important to note is that over the next few years Colorado Springs is getting some relocating companies that are bringing with them very high paid employees.  These folks will be looking for homes and will be able to afford them.  This is one of the reasons that while we’ve had a slow selling of homes for six months during the latter part of 2022, things are likely to pick up over the next year and into the foreseeable future.

 

COLORADO SPRINGS RESIDENTIAL real estate ANNUAL REVIEW OF 2022 AND 2023 FORECAST

ERAShields real estate, 1.2023

It is my pleasure to share with you some local data compiled by my company.  It provides you with a look back at 2022 and a forecast for 2023.  

I am reproducing one page below and to read the report in its entirety, click here.

If you have any questions, please ask. 

FYI….

Conventional and VA new loan limits for El Paso County are now $726,200.

And VA can exceed that when a buyer doesn’t own property with the VA, with no down payment required.

 

FHA loan limits:

El Paso and Teller Counties:  $517,500

Pueblo and Fremont Counties:  $472,030

Denver areas:  $787,750

January 9, 2023

 

HARRY’S BI-WEEKLY UPDATE

     A Current Look at the Colorado Springs Residential real estate Market

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

 

 

HAPPY NEW YEAR….AND WELCOME TO 2023

Just as I began my January 2022 eNewsletter by saying “As we bid adieu to another unprecedented year, here’s wishing you a very Happy, Healthy New Year”, I again wish you the same. The “unprecedented” year I referred to in 2021, continued in 2022, but for quite different reasons.

Many of those reasons this past year had to do with the unprecedented doubling of the mortgage interest rates.  I have never seen anything quite like that and hope we don’t experience a rise in rates that fast again.  Was it just two years ago that my “2020” vision predicted that interest rates appeared likely to remain low for the foreseeable future”?  Who knew how short that “future” would be?

And then last year at this time I had predicted that the Federal Reserve would raise rates as soon as April and sure enough they did.  What I didn’t expect was the rates to almost double from 3 ½ % in June to 7% in December.  As you are aware, this slowed down the then prevalent Seller’s market fast and along with it the quick sales with bidding wars and offers over list price.

This hurt first-time buyers as well as those who could not qualify for the higher rates more than ever.  And at the same time, the rental market was flooded with those folks.  Fortunately for them, rental rates did not keep up their rapid increase, but it did provide those looking for investment properties a better market from which to choose.

My predictions for 2023 include the expectation that things will slow down in terms of time.  It will take a bit longer to sell, and pricing adjustments will be necessary, but home values will still rise by 3% to 5%.  Nothing is “black and white” anymore and anything is negotiable.

I also believe:

• Seasonal fluctuations such as “spring buying” will return, rather than the recent steady year-round demand we’ve seen, and year-end sales will slow down.

 

• Interest rates above 5 percent will become the norm.  I expect by the end of 2023 that rates will level off at about 5 ½  percent to 5 ¾ percent.

 

• Assumable loans might become more popular and Buyers assuming a VA or FHA loan are going to be a big trend for the next decade.  That process can take longer but can save the Buyer a lot of money in the end.

 

• The market will be more balanced.  Although inventory will remain low, interest rates and inflation will put the ball back in the Buyer’s court when it comes to closing cost help, inspections, repair negotiations and offers below initial asking price.

 

• Homes will continue to appreciate as they have in the past, although not as rapidly.  As I’ve said time and again, you can’t only look at the last quarter or even the last couple of years.  real estate is a long-term investment.  When you look at the value of home ownership compared to other investments, it’s still going to be extremely positive.

 

• For most, your home will likely continue to be your largest and fastest growing investment.  

 

I have always said that no one can every expect to buy at the lowest price point, nor sell at the highest.  It just isn’t possible and most anyone who thinks they can will likely lose in the long run.

Yes, prices are holding steady, but those who are waiting for them to drop lower before they buy will likely be in for a very long wait. 

Lawrence Yun, Chief Economist of the National Association of REALTORS (NAR), expects home prices to hold steady throughout most of 2023 because of the low inventory in most areas.  Colorado Springs is most definitely one of those areas as you will see in the statistics below.

Yun still does not foresee a housing market crash like that in 2008 because conditions are fundamentally different.  He expects the national median home price to increase by about 1 percent while home sales will decline about 7 percent, but he also predicts that the market will rebound strongly in 2024.  

“The market will see a 10 percent increase in sales and a 5 percent increase in the national median home price next year”, he said.

Tatiana Bailey, Executive Director of Data Driven Economic Strategies, and our “local” economist, has said that the high credit card usage, paired with the lower money in savings accounts show that folks are doing whatever they can to offset inflation.  

“So, we better get inflation down”, she said, “but if you’re making it more difficult for people to borrow money, then is the medicine really helping?  My personal view is that the Federal Reserve had to raise interest rates, but I think they should have done it more slowly.”

I could not agree with her more, but what’s done is done and now we have to hope that the Federal Reserve will start lowering rates, a quarter percent by each calendar quarter, in order to get mortgage interest rates, among others, more affordable for most.

We have had to play with the cards dealt by the Fed for the last six months or so and while it’s been challenging for both Buyers and Sellers, I do believe things will begin to improve just in time for the “spring buying season”.

Markets such as Colorado Springs that were so popular when the pandemic hit and working from home became a “thing”, are seeing folks continuing to relocate there.   IT company Zivaro and manufacturer Entegris, which makes products for the semiconductor industry, have announced expansions into Colorado Springs and will create up to 1,000 new, well-paying jobs in our community in about mid-2024.

Along with these companies and others will be relocated employees looking for housing and this will help drive up our local sales and prices.  It will also put additional pressure on local folks who are looking to move or trade up and that will be true until there are more available homes for sale and more newly constructed ones as well.  

According to the 2023 forecast of Knock Buyer-Seller Index, there is a great divide between the best markets for Buyers vs. Sellers.  The pandemic markets have become the 2023 top Buyers’ markets, moving at a faster pace than the rest of the nation on average.  

Colorado Springs is Number Two in the top five Buyers’ metros for 2023, just behind the Phoenix-Mesa-Chandler, AZ markets.

And, according to the Index, “although these markets will see median home price growth moderate and even decline from their pandemic peaks in 2023, prices are forecast to end the year 38% above pre-pandemic levels, 3% higher than the national average change.”

For Colorado Springs, the Index said:

 

• November 2022 median home price:  $425,000

 

• Forecasted 2023 home price change:  +1.2%

 

• Forecasted 2023 home sales change:  -18.3%

 

• Forecasted 2023 month’s supply:  4.2 months

 

• Forecasted sales-to-list-price ratio:  97%

 

The Index went on to say:

“Colorado Springs was viewed as an affordable alternative to high-priced West Coast metros and even neighboring Denver, where the median home price is 38% higher.  Located at the foot of Pikes Peak, Colorado Springs is known for its great weather, with over 300 days of sunshine a year, walkable neighborhoods, easy access to the outdoors, and a vibrant downtown.”

I could not have said it much better.  In fact, those are just some of the many reasons that I have mentioned to those I have helped relocate here over the last 50 plus years.

And, while it may be more difficult today, it’s still possible for you to find what you need, want, and can afford in a home.

That’s where I come into the picture.  The current market is not for the timid or inexperienced.  It takes a lot of advanced planning.

My almost 51 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

A new year brings with it a lot of new hopes and dreams. If Residential real estate is among your hopes and dreams for 2023, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And now for statistics…

 

DECEMBER 2022

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

Here are some highlights from the December 2022 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 40.  For condo/townhomes it was 34.  

Also in El Paso County, the sales price/list price for single family/patio homes was 98.8% and for condo/townhomes it was also 99.2%.  

In Teller County, the average days on the market for single family/patio homes was 56 and the sales/list price was 97.7%.

Since these are year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2022 to 2021.  

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

 

In comparing December 2022 to December 2021 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 659, Down 33.8%

·       Number of Sales were 851, Down 41.0%

·       Average Sales Price was $490,910, Down 3.0%

·       Median Sales Price was $441,000, Down 2.0%

·       Total Active Listings are 1,909, Up 189.7%

·       Months Supply is 2.2, Down 4.6%

 

Condo/Townhomes:

·       New Listings were 116, Down 17.1% 

·       Number of Sales were 125, Down 42.9%

·       Average Sales Price was $368,781, Up 4.8%

·       Median Sales Price was $320,000, Down 4.5%

·       Total Active Listings are 244, Up 174.2%

·       Months Supply is 2.0, Down 4.1%

 

The Cumulative YTD Summary: (comparing Jan-Dec 2022 to Jan-Dec 2021)

 

                        Single Family/Patio Homes:

• New Listings were 19,180, Down 2.4%
• Sales were 15,259, Down 16.0%
• Average Sales Price was $535,404, Up 8.9%
• Volume was $8,169,729,636, Down 8.5%

 

Condo/Townhomes:

• New Listings were 2,595, Down 7.2%
• Sales were 2,305, Down 14.2%
• Average Sales Price was $368,323, Up 12.5%
• Volume was $848,984,515, Down 3.5%

 

And FYI…

While the average sales price for single family/patio homes was down 3% in comparing December 2022 to December 2021, when looking at the cumulative year-to-date summary for January to December 2022, the average sales price for single family/patio homes was UP 8.9%.

 

Now a look at more statistics…

 

DECEMBER 2022 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

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

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

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

 

• Sold Listings for All Properties were Down 41.6%

 

• Median Sales Price for All Properties was Down 1.7%

 

• Active Listings on All Properties were Up 111.5%

 

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

 

INFOGRAPHIC:  TIPS TO REACH YOUR HOME BUYING GOALS IN 2023

Keeping Current Matters, 1.6.2023

 

December 28, 2022

 

HARRY’S NEW YEAR GREETING

        

December 20 2022

 

HARRY’S HOLIDAY GREETING

        

 

December 13, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

HOMEOWNERSHIP AS AN INVESTMENT IN YOUR FUTURE IS AS TRUE TODAY AS IT WAS LAST YEAR AND WILL CONTINUE TO BE IN YEARS TO COME

Some days when you read the paper or listen to the news, the mention of Residential real estate has to do with the fact that values are not appreciating as much as they had been in recent years and that would be true.

However, what you don’t hear is that while the appreciation is down from it’s crazy rise in recent years, homes are still appreciating.  As you will see below, our local average sales price appreciation year-over-year for single family/patio homes in November was 3.6%.  While it’s not the 15% of recent times and is a bit below our “normal” appreciation, there is some great news to be garnered there.

First let’s talk about the value of homeownership.  When you own a home, you are paying down a mortgage loan, which, over time is creating equity.  You are also seeing appreciation, whether it be 3.6% or 15%, that is also creating equity.  This home equity is creating wealth for you and that’s why homeownership is often the greatest financial asset for many families.

This is true whether you buy a home today, tomorrow or whether you bought it 15 years ago.  

And now let’s consider renting.  At present, rental prices are the highest they have ever been, and rental properties are difficult to find at times.  When you rent a home, you are creating additional wealth for your landlord by helping to pay down his or her home mortgage while getting no financial value for yourself.

First-time homebuyers are being hit hard because of the fast increase in mortgage loan rates and millennials, while having more dollars to spend are less “wealthy” without homeownership.  Their financial futures will often be hurt due to lack of owning a home.

Older folks (those 65 and older) who are renting rather than owning are also creating a substantial wealth “gap”.  This is illustrated in the graphic below:

 

So basically, no matter whether you are a first-time buyer or a senior who is considering renting rather than owning, it’s time to think again.

Yes, interest rates are higher than they were.  But what goes up will go down and when rates go down, it’s likely you can refinance at a lower rate.  5-1 ARMs (adjustable-rate mortgages which are usually 1% to 1 ½% less than 30-year fixed-rate loans) are again gaining popularity. In my opinion we will see interest rates drop within the next one to two years and when that happens, you will be able to refinance for a lower fixed-rate loan.

Now let’s talk about home appreciation.  While the fast appreciation of recent years did provide substantial equity for many folks, it also made homeownership unaffordable for others.  With home price appreciation slowing down, homes are a bit more affordable for some.  Also, higher interest rates on lower prices often don’t affect the monthly bottom line any more than lower interest rates on higher prices!  Something to think about for sure.

What’s the bottom line here?  When it comes to Residential real estate, there’s no right or wrong time to buy or sell.  The last several years have most definitely been a boon to sellers, but at the expense of buyers who had to “get in line” and into bidding wars to often make an offer on a home sight unseen just to be try and “win” it.  

Today’s market is becoming more normalized, and buyers are finding more choices and have time to consider their offer before jumping in just to try and get whatever home is available. This is a good thing.

Before you let negative news about the housing market get you down, don’t forget what I’ve said forever—at any time there is always someone looking to buy and someone looking to sell.  Their reasons vary, but the facts remain the same.

If you or a family member are even considering a move, or want to buy for the first time or for investment purposes, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s put your wants, needs and budget requirements to work for you.  

I’ve been in the local Residential real estate arena for more then 50 years now and have seen just about every cycle imaginable.  If there’s a way to make it happen, I can find it, and I can help make your financial future a bit brighter with the addition of the home you desire.

 

And now for November statistics….

 

NOVEMBER 2022

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

Here are some highlights from the November 2022 PPAR report.

In El Paso County, the average days on the market for single family/patio homes was 33.  For condo/townhomes it was 29.  

Also in El Paso County, the sales price/list price for single family/patio homes was 98.6% and for condo/townhomes it was 99.1%. 

In Teller County, the average days on the market for single family/patio homes was 27 and the sales/list price was 98.2%. 

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

 

In comparing November 2022 to November 2021 for All Homes in PPAR:                       

                        Single Family/Patio Homes:

·       New Listings were 953, Down 20.6%

·       Number of Sales were 936, Down 36.2%

·       Average Sales Price was $525,923, Up 3.6%

·       Median Sales Price was $453,000, Up 0.7%

·       Total Active Listings are 2,430, Up 184.2%

·       Months Supply is 2.6, Down 5.1%

 

Condo/Townhomes:

·       New Listings were 143, Down 27.8% 

·       Number of Sales were 136, Down 40.6%

·       Average Sales Price was $368,724, Up 9.7%

·       Median Sales Price was $350,000, Up 7.7%

·       Total Active Listings are 262, Up 127.8%

·       Months Supply is 1.9, Down 3.1%

 

Now a look at more statistics…

 

NOVEMBER 2022 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

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

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

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

 

• Sold Listings for All Properties were Down 35.2%

 

• Median Sales Price for All Properties was Up 5.8%

 

• Active Listings on All Properties were Up 108.0%

 

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

2023 housing market PREDICTIONS

The Residential Specialist Nov/Dec 2022

As I mentioned earlier, 2022 marked the beginning of the end of an unprecedented seller’s market.  Mortgage interest rates climbed from around 3% to above 6% and by June 2022 inflation had reached its highest annual rate since November 1981.

According to one Realtor, “We saw one of the craziest markets on record over the last couple of years, but it did a U-turn in the span of a quarter, and we went from record highs in appreciation to a 20-year low in mortgage demand”.

Although the market has cooled in many regions, most real estate agents and experts across the country don’t foresee a crash or drastic downturn in 2023 but, like I have been saying, a return to what was prior to 2020—a normal, healthy market.

Here are a few predictions that Certified Realtor Specialists (CRSs) have for the 2023 national housing market outlook:

 

2023 will see a return to a slower, but still healthy market.

Despite what you read or hear about how drastically different 2022 has been from last year, you should take it with a grain of salt.  That’s because the last two years were highly unusual and fueled by low interest rates that we will probably never see again.  

Don’t compare 2022 or 2023 to 2021 or 2020 because that’s unrealistic.  What to expect in 2023 is that things will slow down in terms of time.  It will take a bit longer to sell and pricing adjustments will be necessary, but home values will still rise at a normal rate of 3% to 7%. 

 

Seasonal fluctuations will return.

We will again see seasonal adjustments which we haven’t see in two years.  The spring buying season will return, and the end of the year sales will slow down.

2023 will be like years before 2020 in terms of seasonal cycles.

 

Above 5% interest rates will become the new (and old) norm.

Realtors like myself who have been in the business for a while can remember a time when 5% and 6% rates were normal.  Some of us even remember the high interest rates of the 1980’s.  In those days a VA loan of 13% was considered low and rates of 18% to 20% were not unusual.

Millennials, who continue to make up the largest share of homebuyers today, are used to seeing rates below 4% but once they realize that above 5% interest rates are the new normal, they will adjust.

 

Assumable loans might become a more popular offering due to higher interest rates

A loan assumption, where a seller who has a VA or FHA loan can have their loan assumed by a qualified buyer, are going to be a big trend for the next decade.  The process takes longer but can save the buyer a lot of money.

 

It will be a more balanced market.

Supply is still relatively low everywhere in the country, and especially here in Colorado Springs, but interest rates and inflation will put the ball back in the buyer’s court when it comes to closing cost help, inspection, and repair negotiations, and below initial asking price offers—things that were thrown out the window during 2020 and 2021.

As we move away from a seller’s market, we will have a more balanced market in 2023.

 

FYI…

For more information, please give me a call.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, November 2022

Here is the most recent Economic Progress Report from Tatiana Bailey.  Please click here to see all the charts for El Paso County.

 

UCCS ECONOMIC FORUM REPORT

UCCS, College of Business, 11.22.22

As always, I’m happy to share the most current report from the UCCS Economic Forum.  The first page is printed below, and you can click here to get the report in its entirety.  

                ​

November 23, 2022

 

 

 

WISHING YOU A SAFE, HEALTHY, HAPPY THANKSGIVING FILLED WITH THE JOY OF FRIENDS, FAMILY, FUN AND YUMMY FOOD.

 

 

 

 

November 22, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 A VERY SAD TIME IN COLORADO SPRINGS…

It’s with a heavy heart that I begin today’s eNewsletter.  As I’m sure most all of you know, Colorado Springs, and more specifically the LGBTQ community here, was the target of a horrendous hate crime where five local citizens lost their lives and at least 25 others were injured.  

There are just no words to explain how shocked I was to see this unfold.  Most especially with it being so close to Thanksgiving Day, an occasion where we all take the time to be grateful for all that we have in our lives.

I work in an industry that has no tolerance for discrimination of any kind and it is my fervent belief that most people are good—and it is our differences that make us interesting.  Learning about how others live and believe opens up new worlds for us if we allow it.  

As we prepare for Thanksgiving, let us remember those who lost their lives in this tragic event and try to move forward with tolerance and kindness for all.

 

RESIDENTIAL real estate IS A BIG TOPIC THESE DAYS…

You can’t pick up a newspaper or look online these days without seeing article after article discussing the Residential real estate market.  Most are discussing it in “national” terms, and while I have always said that one needs to look at Residential Real Estate in “local” terms, they are overlapping in many areas now.

To begin with, the Seller’s Market of the recent past is essentially gone and while it has been replaced with a Buyer’s Market, there just aren’t a lot of buyers now, and the ones who are looking are in less of a hurry and more discerning in what they want.

There are several reasons for this, beginning with the fact that interest rates have more than doubled since January.  And even though rates fell last week, they are still preventing a number of folks, and most especially first-time buyers, from being able to qualify for a loan.

Across the U.S., existing home sales fell for a ninth straight month in October, with sales declining 5.9% from the prior month.  In Colorado Springs, the number of home sales has dropped each month since June, while the inventory has reached its highest level in three years.

Home prices here are continuing to rise monthly, year-over-year, but they are now going up by single digit percentages rather than the unsustainable double digits we saw in the last several years.

I’ve been saying for quite a while that what we were seeing in terms of multiple offers on day one and sales considerably over listing price was not something we should anticipate lasting forever.  The low interest rates and lack of available homes for sale created a type of market was not healthy for buyers or sellers in many ways.

A home is often the greatest financial asset of most families and the purchase of such deserves the time and consideration that the last several years did not afford.  Buying a home should not be as stressful and frenetic as we were seeing, and it was only a matter of time until this changed as it has.  

The typical “buying season” for Residential real estate is usually the spring to early summer, since most families like to be in place prior to a new school year for their children and in place for the holiday season.  In the last few years, that fell to the wayside and homes were being bought whenever they could be bought.  

Now that things are normalizing, home sales at this time of year would typically be slow, and that’s what we are also seeing here in Colorado Springs.

Folks that were waiting to see how much more their homes could appreciate prior to putting them on the market have found that it’s too late.  I’ve had clients in recent days lower their asking price after finding few potential buyers for their properties.  

Buyers today can afford to be much more discerning when looking at homes, and with more to choose from, they can request contingencies that only six months ago would have been unheard of.  Home inspections are also back in the picture.

This is not to say that homes are not selling, because they are.  As I’ve said time and again, there will always be those who need to buy and those who need to sell, all for differing reasons.  But most homes have been on the market considerably longer than the one day of the recent past, and sales contracts are looking more like they did several years ago.

And for those who are waiting for home values to go down, you may be waiting a long, long time.  Nothing that we are seeing today portends that homes will not continue to appreciate, albeit at a slower, more reasonable pace.

Some folks who wished to sell but were unable, are turning their properties into rentals until they can sell them.  Others are waiting to see how interest rates will go and staying put for the moment.  I don’t have any two clients with the same wants and needs, so their preferences are all across the board.

I’m guessing a number of you who have considered selling to trade up or to move to a new location have a lot of questions in regard to all of the above.  

Please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com  so we can discuss your personal situation and figure a way to try and make today’s Residential real estate market work for you.

 

COLORADO SPRINGS HOME PRICES CONTINUE TO SURPASS MUCH OF THE COUNTRY IN THE THIRD QUARTER OF 2022

The National Association of Realtors, 11.10.22

In the recently published report, single-family, existing-home sales grew in nearly every measured metro area. 

The median price nationally rose 8.6% quarter-over-quarter to $398,500. 

The median price of single-family homes in Colorado Springs rose 4.8% to $462,200 during the second quarter of the year, per NAR.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 37^th highest of the 185 cities surveyed.  And once more, the good news is that while our home values are increasing, they remain less than those in the Denver, Boulder and Fort Collins areas, which makes our city more attractive to potential companies and individuals wanting to relocate to Colorado.

To see all 185 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  Or click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

 

ERA SHIELDS QUARTERLY “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW

ERAShields, Quarter Three, 2022

As always, I am pleased to provide you with all the most current local information.  This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.  

Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety. 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 10.28.22

Here is the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.  If you have any questions, please give me a call.

 

 

HARRY’S THOUGHT OF THE DAY: