Real Estate Information Archive

November 7, 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.

 

 

NO MATTER THE CURRENT STATE OF THE MARKET, OVER TIME, HOME OWNERSHIP IS ONE OF THE MOST ESSENTIAL KEYS TO BUILDING PERSONAL WEALTH

Yes, you read that right!  A home is often the largest personal asset of many families.  

It is certainly up there as the most expensive purchase for most, and it allows the building of equity while providing tax deductible considerations and more.

In times like today when interest rates are at their highest level in more than 15 years and local home prices are still rising, albeit considerably slower than in the recent past, home ownership is still very desirable on so many levels.

Rental rates are higher than ever and climbing steadily.  In recent times the lack of available homes for sale created the need for rentals on a large scale and prices went up accordingly.  They do not appear to be going down and more investors seem to be looking to scoop up homes for investment purposes and/or companies are building new projects to accommodate those needing or choosing to rent.

I’ve talked to several young professionals who would love to buy a starter home because they are aware that the monthly cost of a home would likely be less than that of their current rental expense.  However, saving for a down payment can be tough when your current rental housing output keeps escalating.  

It’s most certainly a problem and one not likely solved in the near future.  

In Colorado Springs, we face the same higher interest rates and inflation as the rest of the country, but we are in a better position than many other cities in that people want to relocate here and have for some time now.

I just returned from a international relocation conference and had the opportunity to speak with folks like myself who help relocate employees and others to various cities for both employment and personal reasons.

What I learned is that those of us who live in “desirable” cities that provide a good “work/life balance” have a distinct advantage over crime-ridden, overpopulated cities.  People are willing to drive further to have their own home in a city where they can enjoy “living”.

Some of this is a result of the recent pandemic where working from home became popular, and some just makes sense, and most especially to those millennials who are looking to put down roots and start raising a family.

In any case, this is all good news for those of us who live in the Colorado Springs area.  

Yes, interest rates are high.  However, speaking as one who had an 8.5% mortgage on my first home here, I consider 7% “reasonable”.  Let’s face it, the very low interest rates of the last several years were not going to stay around forever, and the fast acceleration of home values were not sustainable either. 

It’s fair to say home values were needing to “normalize” and now they have.  Do I think the home appreciation in Colorado Springs will continue to slow down?  Possibly.  And I also believe that those values will not rise quick as fast as they did any time too soon.  And that’s a good thing.  Building home equity, steadily and over time, provides the stability most homeowners need and want.  Paying rent to someone else does not do anything but put extra income in the hands of the landlord.  

Waiting for interest rates to fall probably isn’t a great idea either.  There are several ways to work around the fixed rates of today, such as getting a 5 or 7 year Adjustable-Rate Mortgage (ARM) and refinancing when rates fall, and several other strategies.  The best advice for today’s market is to shop around.  You will find that rates vary from lender to lender, and I can help direct you to several that often have very competitive rates and terms.

There are two and a half times as many actively listed homes here at present than a year ago.  Some of those belong to folks who kept waiting for prices to go up even higher and some are simply those who find that now is the time they want to sell.  

That makes today’s market a good one for buyers.  There isn’t the frenzy we saw even six months ago where homes were selling “as is” in one day with multiple offers and bidding wars.  Buyers have time to make informed decisions, request contingencies and have home inspections.  When it comes to such a big financial investment, that is a very good thing as well.

In Residential real estate, there are always those who need to buy and those who need to sell.  The economic climate may enter into those decisions, but it is often not the primary reason.  

If you are wanting to find out how the present market is going to affect any buying or selling thoughts of yours, please give me a call at 719.593.1000 or email to Harry@HarrySalzman.com . 

I look forward to speaking with you soon.

 

And now for October statistics….

 

OCTOBER 2022

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

Here are some highlights from the October 2022 PPAR report.

 

In El Paso County, the average days on the market for single family/patio homes was 31.  For condo/townhomes it was 22.  

Also in El Paso County, the sales price/list price for single family/patio homes was 98.8% and for condo/townhomes it was 99.8%. 

In Teller County, the average days on the market for single family/patio homes was 42 and the sales/list price was 98.0%. 

 

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 October 2022 to October 2021 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,239, Down 22.4%

·       Number of Sales were 1,100, Down 33.0%

·       Average Sales Price was $532,488, Up 4.4%

·       Median Sales Price was $465,000, Up 4.3%

·       Total Active Listings are 2,645 Up 152.4%

·       Months Supply is 2.4, Down 4.6%

 

 

Condo/Townhomes:

·       New Listings were 165, Down 33.5% 

·       Number of Sales were 150, Down 40.0%

·       Average Sales Price was $367,514, Up 12.5%

·       Median Sales Price was $337,500, Up 3.4%

·       Total Active Listings are 264, Up 104.7%

·       Months Supply is 1.8, Down 2.6%

 

Now a look at more statistics…

 

OCTOBER 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:

 

HOMEOWNERSHIP WINS OVER TIME…AN INFOGRAPHIC

Keeping Current Matters 11.4.22

Here’s a graphic representation of what I was talking about earlier.  A “key” to a family’s financial health is homeownership.

 

 

IF YOU BELIEVE HOMEOWNERSHIP IS OUT OF REACH…MAYBE YOU SHOULD THINK AGAIN

Keeping Current Matters, 11.3.22

A recent “2022 Consumer Insights Report” from Mynd indicates that there’s a portion of millennial and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it might not be exactly the way previous generations have done it.  The study explains how they are breaking into the market:

 

“…younger generations of Americans are not buying into that dream in the same way that older generations have.  A growing number of Americans are choosing to make their first real estate purchase as an investment property.” 

 

Instead of buying a home and moving in, some young buyers are purchasing a home so they can rent it out.  This tactic may be gaining popularity, at least in part, because of the affordability challenges brought about by today’s higher mortgage rates.  The report mentions how many people in this group are considering this approach.  It says:

 

“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”

 

This strategy allows buyers to continue living in their current location like a busy city apartment or a neighborhood they know and love, where they couldn’t afford to buy.  But instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.

That way they’re getting the best of both worlds.  They live where they want, and they still own a home where they can afford it. 

Their goal is to generate passive income and diversify their assets.  It works like this:  in addition to having a rental stream of income, the equity they build in the home they own will also help grow their net worth over time.

If this is something that you or someone you know has considered, please give me a call.  I’ve had personal experience in this area and can certainly help provide answers that can help get the ball rolling.

 

HOME BUYERS ARE MOVING FARTHER AWAY THAN EVER BEFORE

The Wall Street Journal, 11.3.22

As I mentioned earlier, the rise of remote workers and the ballooning cost of housing in major metro areas are leading Americans to move much further away when buying a home.

According to a National Association of Realtors (NAR) survey, buyers who purchased homes in the year ending this past June moved a median of 50 miles from their previous residences.  That is the highest recorded distance on record, going back to 2005 and follows five straight years in which the median distance moved was constant at 15 miles.

Some of this is due to employers changing their in-office requirements which gave some remote workers the ability to move farther from their offices.  

Smaller communities were especially popular—48% of home purchase were in small towns and rural areas, a record in data going back to 2003 and up from 32% a year earlier, according to the survey.

Suburbs are traditionally the most popular destinations for home buyers, but the share of suburban home purchases dropped to 39% from 51% the prior year.  Only 10% of purchases were urban areas, down from 13% the year before.

NAR polled 4,850 people who bought primary homes during the 12-month period.  

This survey reflects a 12-month period in which the housing market was upended by the surge in interest rates.  The pandemic spurred the biggest housing boom in years as people took advantage of record-low mortgage rates and sought more space to work from home.  Home prices rose to record highs.  Now that mortgage rates have more than doubled, home purchases have dwindled, and buyers have focused more on affordability.

Colorado Springs, while not considered a “rural” area by any means, is still a great choice for those who do not want the higher prices and congestion of living in a city such as Denver.  Folks relocating to southern Colorado are choosing our city and immediate surrounding areas as a place to call home and are willing to commute to do so. 

Again…one more reason why I believe our housing market is very stable and should continue that way into the future.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, October 27,2022

As most of you know, Tatiana Bailey, our “local” economist and previous Director of the Southern Colorado Economic Forum at the UCCS College of Business, has started a new non-profit company called Data-Driven Economic Strategies (DDES), along with Rebecca Wilder who worked alongside her at UCCS. 

I know many of you enjoy seeing the “data” as it pertains to Colorado Springs in terms of economy, jobs and more.  I will continue to publish her reports when I receive them and you can click here to see the first one under the new banner. If you have any questions, please give me a call.

 

HARRY’S THOUGHT OF THE DAY:

 

 

If you haven’t done so already, please vote.  

It’s a right that many around the world don’t have and one I never take for granted. 

No matter who or what you personally support, if you don’t vote you are missing the opportunity to get your voice heard.  

October 24, 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 real estate issues that will help to make you a more successful and profitable buyer or seller.

 

 

SO MANY QUESTIONS AND NO STOCK ANSWERS…

With a recession literally knocking on the door and mortgage interest rates escalating daily, I get regularly questioned about the “state of Residential real estate”.

And, like most things, there is no “right” answer to any of these questions.  It’s not a matter of one-size-fits-all…but then, again, purchasing Residential real estate never falls into a one-size-fits-all category.

Each transaction must be considered against an individual family’s needs, wants and budget requirements and I have yet to find two families with the exact same situation.

Another thing that I tell my clients is that all Residential real estate must be looked at from a LOCAL point of view.  What’s happening in the Colorado Springs area is often quite different from other parts of the country.  

As an example, our city is experiencing fabulous growth as more and more companies and their employees relocate here.  In addition, now that “work from home” (WFH) has become the norm for some—it’s somewhat of a “no-brainer” to choose a city such as Colorado Springs, known for the fabulous “work-life balance” so many crave.

For several years now we have had fewer available homes for sale than ever before, and this is one reason our home values have skyrocketed and created a sellers’ market that essentially still exists today.  

Local homebuilders were not able to keep up with demand, in part due to the shortage of supplies such as lumber, cement and steel but there are still an historic number of local homes under construction due to having so many folks wanting to buy.

And with home appreciation across the U.S. now “normalizing”, we are still seeing better returns than most of the country.  Some cities are slowing down or staying even, but Colorado Springs is continuing to thrive.  

While our home values are continuing to increase, the fact that they are doing so slower than in the past several years is a important for several reasons.

To begin with, there was no way to sustain the type of increases we had been seeing.  It would not have been too long before many more folks, and most particularly first-time buyers, would not have been able to afford a home.  As it is, with the interest rates more than double what they were at the beginning of this year, monthly payments are not as affordable for many.

The lack of available homes for sale created a frenzy that favored sellers and forced buyers into bidding wars and paying above list price for many homes.  There were no concessions for buyers and even appraisals went by the wayside in many cases.  It was one of those “buy as is” type situations--if you even got the opportunity to buy.  

Buyers today in most cases have the time to deliberate and to make realistic offers with some contingencies that we did not see even six months ago.  When you consider that a home is often the most valuable asset in a family’s financial portfolio, this is a good thing.  

If you are a regular reader of my eNewsletter, you know that I have been telling you for some time now that low interest rates and fast appreciation were not going to be here forever.  However, even I did not foresee things moving as fast as they have. 

Those of you who rent or have family members or friends who are renters have seen that rental rates are rising faster than ever.  Some of that is due to investors realizing that there are many who need to rent for whatever reason and these investors are either purchasing homes to rent out or going in with larger investment groups who are building apartments at a faster pace than we have seen in years.  Whatever the case, it is almost always preferable to own rather than rent, if possible, because one way or another you are helping to pay down a mortgage—be it yours or your landlord’s.  

If you have wanted to sell and trade up or move to a new location and were waiting, what should you do?  Again, it depends on your specific situation, but as I say…there are always those who need to sell and those who need to buy.  It’s just likely to take longer in this current marketplace. 

I’ve seen homes that might have sold in one day had they been listed 6-8 months ago compared to now seeing only a few prospective buyers.  The reason?  Buyers can be pickier than they were earlier in the year and are taking more time in decision making.  And of course, the interest rates are holding some back. 

While interest rate increases have hurt some potential buyers, but I don’t think they can be blamed for everything.  If you are selling to trade up, the equity in your present home can be used for a larger down payment which can help keep the monthly payment more reasonable.  And, when the rates go down, and they will at some point, you can likely refinance and get the payments even lower.  

I have been in this business for 50+ years, so interest rates of 7% don’t seem so high to those of us who can remember 18%.  Yes, compared to the 3% or so of recent times, it is a bit confounding, but those rates were unrealistic as well. 

If you’re wanting a home now and cannot wait indefinitely for interest rates to go down, you might be finding your life plans aren’t lining up with economic conditions.  If that’s the case, sometimes you must deal with higher monthly payments than you’d like until you can refinance down the road.  

You might need to make some concessions to accommodate a more expensive loan, like reworking your monthly budget-- but over the long haul, there’s a good reason why homeownership is a big part of the “American Dream”.  The sooner you are a homeowner, the sooner you can start building equity for you and your family.  

What I’m saying is that while there is no stock answer, and never has or will be when it comes to the buying and selling of Residential real estate, there IS an answer for each individual situation. 

Having seen almost every cycle imaginable over my fifty years here, I’m in a good position to help you and your family find the best answers for YOU.

It all begins with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com and we can start finding solutions that can work for you.

 

WITH THE LATEST NEWS ABOUT INFLATION, SHOULD YOU STILL BUY A HOME?

KeepingCurrentMatters, 10.19.22

The prices of groceries and most goods and services are climbing daily, so it’s no surprise that folks are wondering whether now is still the time to buy a new home.  If you fit into that category, here’s what you need to know.

 

Homeownership Is Historically a Great Hedge Against Inflation. 

 

In an inflationary economy, prices rise across the board.  Because you can lock in what is likely your largest monthly payment (your mortgage) for the duration of your loan, historically homeownership is a great hedge against those rising costs.  

According to James Royal, Senior Wealth Management Report at Bankrate, “A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment.  Sure, property taxes will rise, and other expenses may creep up, but your monthly housing payment remains the same”.

And, as I mentioned above, with rents being as high as they are, the ability to stabilize your monthly payments and protect yourself from future rent hikes may be even more important.  

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains what happened to rents in the latest inflation report: “Inflation refuses to budge. In September, consumer prices rose by 8.2%.  Rents rose by 7.2%, the highest pace in 40 years”.

Rental contracts are typically renewed annually, at which time a landlord may be more likely to increase monthly payments to offset the impact of inflation.  This could be part of the reason why a survey from realtor.com shows that 72% of landlords said they plan to raise the rent on one or more of their properties in the next year.

 

Bottom Line?  The best hedge against inflation is a fixed housing cost.  If you are wanting to find a way, I’m here--- ready, willing, and able to help you explore the possibilities.  

 

REPAIRS THAT PAY OFF IN A COOLING housing market

The Wall Street Journal, 10.11.22

In this slower-than-recent-times housing market, sellers are finding that remodeling properties can be a way to avoid cutting their asking price.

The bidding wars and frenzy of the recent past are gone, and buyers are looking much closer at what they want in a new home.  For sellers, making repairs, or even small improvements that buyers care about could make the difference between getting your asking price or giving a discount.

Between mid-July and mid-August about 95% of home sellers made updates or repairs before listing their properties, up from 71% of sellers six to 12 months ago, according to realtor.com.  They spent an average of $14,163.  

However, data suggests that not all renovations are worth the cost for sellers.  According to a recent NAR report, the top three interior remodeling projects with the highest return on investment are a hardwood flooring refinish, new wood flooring and an insulation upgrade.

Other sellers might find that smaller fixes such as a fresh paint job can make a bigger impression on buyers than pricier changes such as a renovated third bathroom, some real estate agents said.

At times, a big remodeling project, such as a new kitchen or deck, might not be worth the investment and could delay a seller’s timeline given supply and labor shortages.  

Focus on more affordable projects that appeal to buyers and look beautiful in photos, such as the refinishing of hardwood floors, suggested Jessica Lautz, a vice president at NAR.

A hardwood flooring refinish has a 147% cost recovery, meaning homeowners are likely to recoup well more than the cost, she added.  In comparison, a kitchen upgrade has a 67% cost recovery.

Giving the home a deep cleaning before showing it to potential buyers can also go a long way to presenting the home in its best light.

Enhancing curb appeal is another way to help a home stand out to buyers and reduce seller concessions. 

Anything that isn’t broken and isn’t overtly visible, such as a new air conditioning system, won’t impress buyers as much as improvements they can see, such as new doors for the kitchen cabinets or customizable closet shelves.  Aim to fix anything that an inspection would turn up.

These are just some possible ways to show your home in the best light without having to possibly lower the asking price or give unnecessary concessions.  

As with everything to do with Residential real estate, it must be “localized”.  Different neighborhoods attract different type of buyers, and the expectations can different so it’s important to know those differences when fixing up a home for sale.

When you are ready to sell, I’ll be happy to make suggestions based on years of experience working within most all local neighborhoods that can enhance the selling power of your home and get you the most return for your investment.

 

HARRY’S THOUGHT OF THE DAY: 

 

 

October 18, 2022

 

HARRY’S 50^th ANNIVERSARY

 

 

FIFTY YEARS IN LOCAL RESIDENTIAL real estate SURE WENT BY FAST…AND I’M STILL LOVING EVERY MINUTE OF IT

 

Yes, you read that right!  In a blink of an eye…I recently celebrated 50 years selling Colorado Springs Residential real estate.  

For someone who thought he would spend his life working for a Wall Street type company in Denver dealing in Investment Banking, it still seems surreal that I changed course by moving to Colorado Springs and looked to purchase a home.  I kept driving here from Denver to look for employment, but finally had to tell the homebuilder that I couldn’t buy the home I had wanted because I wasn’t able to find a job.

Since the builder knew my background in finance, he asked me if I might possibly want to go to work for him since buyers were looking for mortgages and he figured I knew a lot about that.  I told him I knew nothing about selling houses but that I was great at selling women’s shoes while in college.

 

And the rest is history…still in the making as you know.  (No, this is NOT a retirement announcement!)

 

Looking back, this was certainly not my life plan, but it turned out that sometimes plans change and, in my case, I was always able to use my background in finance to the advantage of my clients while building a new career in a city that I have been privileged to call home for 50 years.

As most of you are aware, I am a big believer in giving back to the community that has provided me with so much.  Through my volunteer association and participation in various City of Colorado Springs’ government committees, as well as local real estate associations, non-profits, and the UCCS School of Business and Southern Colorado Economic Forum, I have had the great pleasure of working with and befriending so many exceptional people.  There are far too many to name here, but most of you know who you are, and I will be forever indebted to you for your friendship and guidance over the years.

Becoming a nationally known relocation Expert also gave me the opportunity to help move so many folks to (and from) Colorado Springs over the years.  I’ve worked with the Chamber, EDC and many companies to help make the relocation process as stressless as possible for numerous employees who have come to make Colorado Springs their home.  Those folks are many of the ones who have helped our city grow and prosper and I like to think I had a small, but significant, role in helping that happen.

In recent years I have had the pleasure of working to find homes for children and even grandchildren of some of my original clients and that “full circle” thing has made my heart happy.

Several months ago Colorado Springs Mayor John Suthers presented me with the “Proclamation” below:

 

 

 

This was an unexpected surprise and one I shall treasure forever.  I wanted to share it with you, my friends, clients, and readers because I know that my success is due in no small part to your loyalty and friendship, and I never take that for granted.

Enough about me.  

One of the reasons I share this is because I realize how important it is, and most especially now when the country is about to enter a recession, to have a seasoned, knowledgeable professional in your corner when it comes to making one of the most important financial decisions of your life.

A home is often your greatest asset and finding the one that’s right for your individual wants, needs and budget requirements is harder today than ever.  With interest rates rising ever so fast and home prices still escalating, it’s so important to know where and how to begin the search.  And when it comes to selling your present home, it’s equally important to know how to price it right to attract buyers.

Having been through most every financial cycle imaginable, and coupled with my financial expertise, affords my clients a heads up on what most other Realtors can provide.  

I want to thank you all for the past 50 years and I look forward to working with you, your family members, and co-workers in helping with any and all Residential real estate transactions in the years to come.

 

As always, you can reach me at 719.593.1000 or by email at Harry@HarrySalzman.com .

 

 

October 7, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal 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.

 

 

 

Six months ago, when I started advising my clients that the sellers’ market and low interest rates weren’t going to be around forever, even I didn’t know how quickly the cards would turn.

In my 50+ years in the local Residential real estate arena, I’ve never seen interest rates rise this quickly (they are now the highest they have been since 2007) and, while we most definitely needed a more “normal” type of market, I doubt anyone would have projected it to normalize this fast.

What does that mean to you as a potential seller or buyer today?  To begin with, as a seller, it means that at present you can no longer dictate all the terms of the sale.  And as a buyer, you do get more options than you might have had even 4-5 months ago.  Also, oftentimes what you must “give up” as a seller you can make up when you make an offer as a buyer!

An important thing to remember, and something I always remind my clients, is that all Residential real estate facts need to be localized.  What is happening around the country is not often what is happening in our neck of the woods.

Colorado Springs has had a much more stable market than we’ve seen elsewhere.  The reason?  Lots of folks have been moving and are continuing to move here and our economy is doing far better than many other places.  Our inventory is still low compared to more “normal” times and that continues to give the seller somewhat of an advantage.

That doesn’t mean that homes are still selling at a record pace and over list price.  What it does mean is our home prices are continuing to rise, although at a much more reasonable rate, and while homes are not selling as fast as in the most recent past, they will sell when they find the right buyer.  

Things are just getting back to a more manageable pace. 

First-time buyers are being hit the hardest as they do not have equity to use for a down payment and the interest rates today are preventing some from qualifying.  As rates begin to fall, and they will hopefully do so within the next year, those folks will have more available homes and options from which to choose.

As you will see from the statistics below, home sales here in September are down 25% from a year ago.  We can blame some of that on “sticker shock”—a combination of prices and higher interest rates.  And there are a lot of “wait and see” folks who want to see where rates and prices are going.  Also, as you will read, available homes for sale are up 127.2% over a year ago, which means there are a LOT more homes from which buyers can choose.

Waiting for prices to fall in our area isn’t the best idea since that’s not likely to happen.  While homes will not appreciate as fast as they have, I don’t see where the values will decline.  And most economists agree.

And waiting for interest rates to fall probably isn’t the best idea either.  There are several ways to work around the fixed rates of today, such as getting a 5 or 7 year Adjustable-Rate Mortgage (ARM) and refinancing when rates fall, and several other strategies.  The best advice for today’s market is to shop around.  You will find that rates vary from lender to lender, and I can help direct you to several that often have very competitive rates and terms.

It’s good to remember that while the price you pay for your home today is permanent, your mortgage rate is not if you choose to refinance later.  A wise man once said, “Date the rate, but marry the home”!

As I’ve said, time and again, there are always those who need to buy and those who need to sell.  And with an experienced professional like me on your team, where’s there’s a will there will be a way.

Yes, it’s likely going to take considerably longer to sell, but for those who need time to figure out their next move, that’s a good thing.  For those who know where they are going, it’s going to take patience to wait for the right buyer.  But the good news is…. there is always a “right” buyer.  

Another important thing to remember is that this time of year is not the “traditional” buying and selling season.  We have tended to forget that since the frenzy of the last several years had created a “year-round” selling season.  

I’m not certain which is best, but I do know that having the ability to take time to make what is often your most important financial purchase is a good thing.  It’s just not what we have seen in recent times and will take some getting used to for both buyers and sellers.  In the long run it will make for happier and certainly more stress-free decisions and that’s as it should be.

If you are wanting to find out how the present market is going to affect any buying or selling thoughts of yours, please give me a call at 719.593.1000 or email to Harry@HarrySalzman.com . 

I look forward to speaking with you soon.

 

And now for September statistics….

 

SEPTEMBER 2022

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

Here are some highlights from the September 2022 PPAR report.

In El Paso County, the average days on the market for single family/patio homes was 24.  For condo/townhomes it was 17.  

Also in El Paso County, the sales price/list price for single family/patio homes was 98.5% and for condo/townhomes it was 99.8%. 

In Teller County, the average days on the market for single family/patio homes was 36 and the sales/list price was 98.5%. 

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 September 2022 to September 2021 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1498, Down 18.1%

·       Number of Sales were 1,294, Down 26.4%

·       Average Sales Price was $523,117, Up 5.0%

·       Median Sales Price was $460,000, Up 4.5%

·       Total Active Listings are 2,690 Up 127.2%

·       Months Supply is 2.1, Down 4.8%

 

 

Condo/Townhomes:

·       New Listings were 205, Down 28.8% 

·       Number of Sales were 248, Down 17.9%

·       Average Sales Price was $363,252, Up 8.1%

·       Median Sales Price was $345,000, Up 8.3%

·       Total Active Listings are 235, Up 65.5%

·       Months Supply is 0.9, Down 3.7%

 

Now a look at more statistics…

 

SEPTEMBER 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 26.8%

 

• Median Sales Price for All Properties was Up 4.0%

 

• Active Listings on All Properties were Up 91.9%

 

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

 

 

UCCS ECONOMIC FORUM DASHBOARD

UCCS Economic Forum, College of Business, 9.27.22

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.

 

 

 

SELLING YOUR HOME?  YOUR ASKING PRICE MATTERS MORE NOW THAN EVER

Keeping Current Matters, 8.9.22

As I mentioned earlier,  homes are continuing to appreciate and even with more available homes for sale the numbers are still at all-time lows, thus keeping the market competitive despite the rising interest rates.

However, your asking price is more important than ever.  During the pandemic sellers could price their homes higher due to high demand and low supply.  This year, things have started to shift and that means your approach to pricing your home needs to shift as well.  Here is what’s at stake if you don’t.

 

Why Pricing Your House at Market Value Matters

The price you set for your house sends a message to potential buyers.  If you price it too high, you could run the risk of deterring buyers.

When that happens, it is often necessary to lower the price to reignite or stir up interest in your home when it sits on the market for a while.  Sometimes lowering the price sends a red flag to buyers who wonder what that means, and they might wonder if the home is still overpriced.

Some sellers are not adjusting their expectations to today’s market, and realtor.com explains the impact that’s having:

 

“…the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels.”

 

To avoid the headache of having to lower your price, you’ll want to price it as right as possible from the onset.  It isn’t always easy to do with interest rates and other factors changing so fast these days, but we can start by looking at comparables and work from there.  

If you are thinking of selling and wondering what your present home might be worth in today’s market, please give me a call so we can discuss it in greater detail.

 

HARRY’S THOUGHT OF THE DAY:

 

And this is why all the pet psychologists in Colorado are so busy….

September 23, 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 real estate issues that will help to make you a more successful and profitable buyer or seller.

 

 

IN THE MIDST OF A VERY “DIFFERENT” CURRENT real estate MARKET…SOME FABULOUS NEWS I COULDN’T WAIT TO SHARE

When I was 15 years old and became interested in all things to do with finance and business, I began my lifelong addiction to reading The Wall Street Journal.  It is the first thing I read every morning to see how the housing, mortgage, commodities, and financial markets are faring.  It wasn’t until I was 21 that I could actually afford my own subscription and I’ve been a subscriber ever since.

My intention was to begin this eNewsletter with some personal thoughts about how the many mixed messages regarding Residential real estate are affecting sales.  When I opened today’s WSJ to the Friday Mansion section, the headline on top of Page 1 read, “Luxury Home Sales Plunge Across the U.S.”.  My thought exactly and good info for me to use.

But then I looked at the bottom of Page 1 and to my delight and amazement saw this:

 

“A Newly Hip Colorado Springs Blooms”

 

I stopped dead in my tracks so to speak!  As someone who has loved and believed in Colorado Springs for more than 50 years now, I was not surprised by the content of the article but was totally amazed that our fabulous city is now getting the respect I’ve most always thought it deserved.

The article goes on the explain how a once “bedroom community” to Denver is now becoming a choice for its own sake.  Something most of us who live here already know, but how nice to get the recognition we have earned through the hard work and perseverance of so many, and most especially Mayor John Suthers, Doug Price of Visit Colorado Springs, the Chamber and EDC, City Council and UCCS Chancellor Venkat Reddy to name a few.  

If you have a subscription, you can read the article here: 

https://www.wsj.com/articles/as-the-citys-population-rises-colorado-springs-sees-home-prices-soar-11663788011?mod=re_lead_pos3

It's possible you can read it by going to the Wall Street Journal online and look under the "real estate" section, but I am not able to reproduce it here at this time.

If you have any questions or comments, please call me at 719.593.1000 or email me at: Harry@HarrySalzman.com .  

 

AND NOW FROM ME, THE ETERNAL OPTIMIST…

The good news around the country is that home prices are not rising quite as fast as they have been and there are more available homes for sale.  

The good/bad news in Colorado Springs is that our home prices are such that as of last week, “only 22% of homes sold in Colorado are affordable”.

According to local economist, Tatiana Bailey, “The Housing Opportunity Index shows the proportion of homes sold that are affordable to a typical household that earns the median income.”  She said that the Index shows that previously 70% of homes sold in Colorado were affordable for the median income, but now only 22% of homes sold are affordable.

This is good for the rental market and rents in Colorado Springs are hitting new highs each month, but not so great for those wanting starter homes to build equity of their own.

 

A word about the rising interest rates…

I have always advocated that all things should be “localized”, and most especially Residential real estate.  What happens across the country is not always a good indicator of what is happening in our own backyard.  

An example would be the Housing Crisis of 2008-2011 when home prices across the country dropped and foreclosures were prevalent.  Here in Colorado Springs we did not see this nearly as bad as many other cities in the U.S. and thus were able to come “back” much faster than most.  This is true today as well.

Still, no matter how you look at it, mortgage rates have hit their highest mark since 2008, jumping past 6% last week.

Our city is more desirable than ever, and we are seeing new companies wanting to relocate here more than even in the recent past.  We who live here know the reasons, and now many others are finding out as well.

Yes, home prices are escalating, and interest rates have doubled in the last several months, but there are still many ways to make buying a home affordable.  

Interest rates are not going to stay where they are now forever, and we are now seeing “5/1 ARMs” revitalizing as I write.  While rates were so low, we heard very little about Adjustable-Rate Loans (ARMs), but for those who are buying in today’s market, these loan alternatives are becoming attractive.

While these rates are riskier than 30-year fixed loans, they could help make up for the decline in affordability in 2022, especially if rates fall, as many predict they will.

This time last year homeowners were getting mortgage rates as low as 2.86%.  Today the average rate for a 30-year fixed loan is 6.625%.

Housing affordability is at its lowest level since 1989, and folks who want or need to buy a home now are looking for ways to make it work.  ARMs can prove to be one of those ways.  The current ARM prices are around 1% less than the 30-year fixed rates.  Today’s rate is 4.875%.

With Fannie Mae predicting the average rate on a 30-year fixed mortgage to fall to 4.5% by the second quarter of 2023, someone who purchases a home today with an ARM could possibly refinance at a lower rate at that time.

There is obviously a lot of math to be done and it’s important to talk to your financial and tax advisors before making any big monetary decision, but I wanted to let you know that there ARE alternatives that can help make today’s homes more affordable.

Please call me for any needed explanations.  I’m always here to help you make the most informed decision for your personal situation.

 

COLORADO SPRINGS RANKS #35 IN THE Q2 FHFA HOUSE PRICE INDEX

FHFA, 5.31.22

The recently published FHFA House Price Index for second quarter 2022 lists Colorado Springs as #35 out of the top 100 in house price changes during that quarter.  As you will see in the chart below, we are still trending higher than most of the country, with a year-over-year price change of 18.4%. Our quarter-over-quarter change of 3.7% is just a tad lower than the 4.0% U.S. average.

We would have ranked considerably higher if we had more available homes for sale during that time period. 

Here is a copy of the Colorado Springs changes:

 

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

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

 

WILL MY HOUSE STILL SEE IN TODAY’S MARKET?

KeepingCurrentMatters, 9.19.22

Many of my clients have wondered whether, with buyer demand moderating a bit, they have missed their chance to sell.  It’s important to note that buyer demand has not disappeared, it has simply eased from the peak intensity of the past several years.

During the pandemic, mortgage rates hit record lows and the spurred a significant rise in buyer demand.  This year, as rates have increased due to factors such as rising inflation, buyer demand has pulled back or softened as a result.  The chart below with data from ShowingTime confirms this trend:

 

The orange bars above represent the last few months of data and the clear cooldown in the volume of home showings the market has seen since the rates started to rise.  But it is important to take context into consideration.  To get the full picture of where today’s demand stands, take a look at the July data for the past six years:

 

This graph makes it clear that, while moderating compared to the frenzy of 2020 & 2021, showing activity is still higher than pre-pandemic levels—and those pre-pandemic years were great years for the housing market.  

That proves that there is still demand if you sell your home today.  Yes, showings are down, especially with more available homes for sale, and we are not going to see multiple offers on day one of a listing, but…over time…homes WILL sell. 

It can be frustrating for sellers who expect to see the very “un-normal” and unsustainable buying frenzy of the recent past, but there are buyers for most all homes.  It just is going to take a more “normal” amount of time for this to happen.

Another issue is the “asking price” and selling price expectations.  In the very recent past, there was little room for negotiation when buying and selling a home. Homes were selling for over list price, and at times considerably over.  This is not true today and I’m finding that many list prices of recent weeks have been lowered, sometimes more than once, to help spark buyers’ interest.  I will write more about this in my next eNewsletter.

So once again, with feeling…. if you are wanting to sell…it’s still a great time…but you will need more realistic expectations.  As always, I am here to help explain and help you in pricing your home to make it just “right” for the next occupant! 

 

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

ERAShields, 8.31.22

As always, I am pleased to provide you with 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.  

 

 

HARRY’S THOUGHT OF THE DAY: 

 

REST IN PEACE, QUEEN ELIZABETH II

September 8, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal 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.

 

 

THE ‘AMERICAN DREAM’ OF HOMEOWNERSHIP ISN’T AS ATTAINABLE AS IT WAS…

…but, not to worry because you’ve got me, and if there is any way possible of making your Residential real estate dream come true…I’ll find it.

With higher home prices and rising interest rates, it’s not quite as simple as it was even six months ago, and most especially for first-time homebuyers.

There are more available homes for sale at present and bidding wars are slowly down considerably.  However, it’s still a matter of supply and demand and finding the right home to fit your individual wants, needs and budget requirements takes the knowledge, experience, and professionalism of a seasoned broker like myself.

Let’s face it.  There are always folks who need to buy as well as ones who need to sell.  Each person has their own reasons for doing so at whatever time they choose.  

I rarely begin my eNewsletter column talking about myself, but since I have heard from several potential buyers who seem to have been misinformed or misunderstood by brokers they have contacted, I felt it important to tell you why experience is so important, not just in today’s market, but in any market.,

In April I celebrated 50 years in the local Residential real estate arena.  During that time, I have seen most every cycle and interest rate imaginable and have helped my clients achieve their personal and/or investment housing goals in all those cycles.  

I’ve seen interest rates as high as 18% VA/FHA and 20% Conventional in 1982.  And the list goes on.

My 50 years of experience, along with my background in Investment Banking, has given me a heads up over many other brokers in understanding most any type of home buying scenario and it gives me a great deal of pleasure to put that experience to work for my clients. 

If you presently own a home and want to trade up or move to a new location, it’s likely you have considerable equity in your present home that can help keep your payments on your new home lower than you might imagine.  

Some of you might be interested in purchasing a newly constructed home.  That is an area where I can be of assistance at no additional cost to you.  I have good relationships with various local homebuilders and can help you find what you want in that scenario as well. 

Moving to another state?  Well, I can help there as well.  I’ve specialized in “relocation” for 47 years and have a qualified national network of brokers who have the same type of experience as myself and who I trust to work with my clients.

So, while the “American Dream of Homeownership” could become a “nightmare” with a broker with lesser qualifications, I’m committed to keep the “dream” alive for you.

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

 

And now for statistics…but first some other words from me…

Over the past several years, I’ve advised most anyone who wanted to sell (either to trade up, move to a new location or whatever the reason) that the seller’s market of the recent past would not be here forever.  Again, based on what I’ve seen through all the various cycles in the last 50 years, there was no way it was sustainable, and at some point, the market was going to “normalize” with realistic home equity growth and more homes for sale.

Well, folks, that time has come.  In recent days, homes that I have listed, and listings of other brokers who I work with, are not seeing any of the frenzy of the last several years.  Those days of 15 offers on day one or purchasing a home you’ve never seen except on paper appear to be a thing of the past.

That’s not to say that homes aren’t selling…they are.  BUT…it’s taking considerably longer, and I’ve seen listing prices in recent days that have been lowered to get more buyer attention.

For buyers who need time to deliberate a bit, or who need a new home in which to move, this is good news.  There is more breathing room to make such a huge financial decision and that’s how it should be.

Additional good news is the fact that homes in the Colorado Springs area are continuing to increase in value and our median home prices are also increasing.  While your equity might not be growing at the rate of the last several years, it’s continuing to grow, and that’s a GREAT thing.

 

And now for August stats….

 

AUGUST 2022

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

Here are some highlights from the August 2022 PPAR report.

In El Paso County, the average days on the market for single family/patio homes was 17.  For condo/townhomes it was 11.  

Also in El Paso County, the sales price/list price for single family/patio homes was 99.7% and for condo/townhomes it was 99.8%. 

In Teller County, the average days on the market for single family/patio homes was 17 and the sales/list price was 99.9%. 

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

 

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

                        

                        Single Family/Patio Homes:

·       New Listings were 1,801, Down 8.1%

·       Number of Sales were 1,366, Down 27.0%

·       Average Sales Price was $530,547 Up 6.3%

·       Median Sales Price was $480,592, Up 6.8%

·       Total Active Listings are 2,639 Up 161.5%

·       Months Supply is 1.9, Down 6.0%

 

 

Condo/Townhomes:

·       New Listings were 253, Down 13.9% 

·       Number of Sales were 215, Down 17.3%

·       Average Sales Price was $361,372 Up 6.4%

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

·       Total Active Listings are 229, Up 116.0%

·       Months Supply is 1.1, Down 6.7%

 

Now a look at more statistics…

 

AUGUST 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 27.4%

 

• Median Sales Price for All Properties was Up 8.6%

 

• Active Listings on All Properties were Up 102.9%

 

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

 

UCCS ECONOMIC FORUM DASHBOARD

UCCS Economic Forum, College of Business, 8.30.22

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.

And…on another note, I’d like to thank Tatiana Bailey and Rebecca Wilder and wish them much success in their new venture.  I shall miss working with them on the Economic Forum, but I know they will still be visible, not only in our community but around the nation.

 

 

August 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 real estate issues that will help to make you a more successful and profitable buyer or seller.

 

LOTS OF POTENTIAL CAPTIONS FOR THE ABOVE PICTURE…

 

1. Home equity is increasing monthly

 

2. Home prices are high

 

3. Mortgage rates are rising

 

4. Housing affordability is the worst since 1989

 

5. Rental prices for homes are getting higher

 

Any and all of these would be the right caption when you think of housing these days.  

There is continued good news for homeowners since they are consistently building equity, although at a somewhat more “normalized” rate than in the recent past.  

For first-time buyers and those looking to move, there are both pluses and minuses in today’s Residential real estate market.

Yes, the high prices, coupled with the rising interest rates, are hurting first-time buyers the most because mortgage loan qualification is harder for most of them.  Many of them are turning to family members for help with the down payment in order to qualify because rental prices are also higher than ever before.  

The good news for those wanting to sell and trade up is that there are now more available homes for sale, thus helping ease the “frenzy” we’ve seen the last couple of years.  There are fewer bidding wars, and buyers are finding a little more “wiggle room” in their negotiations.  

While the prices and interest rates are still increasing, the tax deductions and gains in personal net worth  are making a move worthwhile at present.  Home prices, while not rising as quickly, are still providing better returns than the stock and bond markets, and, as in the past, over the long haul should continue to do so.  

As you will read further on, economists, while predicting a recession, do not expect anything like the housing crisis in 2008, and in fact, expect home values to keep increasing.

I’ve been in the local Residential real estate arena for a little over 50 years now, and I’ve seen just about every cycle imaginable.  I know the “ins and outs” of getting my clients what they are looking for based on their individual wants, needs and budget.  

My background in Investment Banking, as well as my expertise in negotiation, make me well suited to handle most anything that most real estate agents haven’t even considered.  

When you work with me, your goals become mine, and I work tirelessly to see that together we can find the right answers for you and your family.  

After all, that’s what is most important about homeownership…the ability to have a place to call your own where you and your family members can “nest”, work, play and at the same time build equity for your financial future.

When you’re ready, I’m your guy.  Simply give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and I’m here to answer all your Residential real estate questions.

 

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

The National Association of Realtors, 8.11.22

In the recently published report, 80% of the 185 Metropolitan Statistical Areas (MSAs) surveyed quarterly by the National Association of Realtors (NAR) reached double-digit median home price appreciation in the second quarter of 2022, surpassing the 70% of the previous quarter.

The median price nationally rose 14.2% quarter-over-quarter to $413,500, surpassing $400,000 for the first time.

The median price of single-family homes in Colorado Springs rose 9.5% to $480,900 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 36^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.

This graphic depicts areas with the largest percent gain:

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.

 

WHILE THE U.S. IS INCHING CLOSER TO RECESSION, IT’S NOT THE SAME-OLD, SAME-OLD, AND ESPECIALLY IN THE RESIDENTIAL housing market

RealtorMag, Summer 2022

Yesterday I was reading an article by Lawrence Yun, Chief Economist and S.V.P. of Research for NAR, and wanted to share some of his findings with you.

According to Yun, “The U.S. gross domestic product contracted in the first quarter by 1.5%.  The stock market has been tumbling.  Inflation is stubbornly high.  The Federal Reserve plans to continue raising interest rates.  Pending home sales have fallen for six straight months and are now trending slightly below 2019 levels.  The economy, in short, is on the verge of a recession”.

However, he adds that it will not be a straightforward recession.  Despite hiring freezes at tech firms and recent job cuts among mortgage lenders as business dries up, the bigger problem for the economy is not a lack of jobs but a shortage of workers.  

He said, “Statistically, there are two job openings for each unemployed person.  That’s why wages are up an average of 5.5% from a year ago, to nearly $32 per hour nationwide.  However, inflation is gobbling up the increase with an 8% rise in the cost of living.”

The sizeable average household accumulation of housing wealth--$75,100 in the last two years and $155,400 over the past five years will go a long way to easing some of the pain.  

Yes, interest rates are higher, but we are still showing a year-over-year median price increase in local single family and patio homes of 7.2% in July and an average increase of 11.2%.  For townhomes and condos, it was a median price increase of 11.9% and an average increase of 15.2%. 

More importantly, “Colorado’s economy continues to shine even with the uncertainty at the national level and in the national economy,” according to Jena Griswold, Colorado Secretary of State.  We have new companies moving here and others expanding.  With them come lots of relocated employees and new jobs for current residents. These folks need housing and will continue to need it for the foreseeable future. 

So, even factoring in the higher interest rates, with tax deductions and appreciation it still makes sense to be a homeowner rather than a renter if possible.  

If you have any questions, please give me a call.

 

AND FOR THOSE STILL WONDERING…

KeepingCurrentMatters.com, 8.12.22

 

RENTAL CRISIS IS ATTRACTING MORE INVESTORS

Bloomberg.com, 8.10.22

With rental costs soaring across the U.S. and here in Colorado Springs as well, folks in many of those cities and in all income brackets are struggling to find new homes or to pay for the ones they already have. 

The home affordability crisis has been snowballing with the fast appreciation in values and now with the rising interest rates.  Some potential home buyers have backed out of sales due to eligibility requirements and other factors, thus putting more and more people in the market for rental properties.

Like the bidding wars and other frenzy we’ve seen in the residential real estate market during the past couple of years, supply v. demand is also ruling the rental market due to tight supplies.  This is giving landlords the leverage to hike rents at all price points.  Coupled with the end of the federal eviction moratorium, this has forced folks to make tough choices.

More renters than usual are staying put in their homes, sending apartment occupancy rates near the highest level in more than two decades and that cuts down on the number of apartments available for rent.

For those interested in purchasing investment properties, now is a great time to investigate it further.  Being a landlord is not for everyone, but if it is something you have considered, it’s worth talking to your tax accountant or investment advisors and then to me.  I’ll be happy to provide you with information based on my many years of owning these types of properties.  I can give you the pros and cons, and if you and your advisors believe this is right for you, then I can help you find the property that fits for your situation.

 

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

ERAShields, 7.31.22

As always, I am pleased to provide you with 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.  

 

August 4, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal 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.

 

 

I COULDN’T HAVE STATED IT BETTER…

It’s a “new day” in Residential real estate...it’s been brewing for some time now…and while we are not seeing changes quite like a lot of the USA, the current recession is hitting our market somewhat as well.

The higher mortgage rates, while still on the low side, are especially affecting first-time buyers and those who might not qualify as easily in today’s market.

As you will see in the statistics below, our listings are slightly down and there are now considerably more homes for sale than in the most recent past.  However, on the bright side, our average sales price on single-family/patio homes is up 11.2% and on Condo/Townhomes it is up 15.2%.  The median sales prices on those transactions continue to rise as well.

I’ve been saying for some time now that price increases need to normalize and they are finally beginning to do so, although slowly.  I predicted an annual price appreciation of 10-12% for 2022, and we look to be on target for that.  And let’s not forget---that 10-12% is considerably higher than the returns we are seeing in stocks, bonds, and most other investments.  

Our total active listings are way up, both year-over-year as well as month-over-month.  Again, a function of Econ 101—supply and demand.  Price appreciation was not going to normalize until there were more homes for sale, and we are now starting to see an increase in inventory.

Homes are still selling briskly, but rarely in one day and not nearly as many offers as in recent times.  This is most definitely good for potential buyers, as the frenzy of the last few years has settled down a little bit.  Of course, sellers are also in a good place since home prices have not been affected very much.

real estate economists are not predicting a “housing bubble” like what occurred in 2008, and an article below helps explain that. 

All of that said, it’s still a great time to buy and/or sell if that’s what you are considering.  There are many ways to make that happen, and fortunately for you, you’ve got me, and I have has seen all housing cycles imaginable.

And speaking of me, I celebrated 50^th years in the local residential real estate arena in April.  That, combined with my Investment Banking background, gives me a heads up on understanding all types of scenarios and I am thrilled to put that experience to work for my clients.

It all starts with a call to 719.593.1000 or email to Harry@HarrySalzman.com and we can begin work to make your housing dreams come true.

 

And now for statistics…

JULY 2022

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

Here are some highlights from the July 2022 PPAR report.

In El Paso County, the average days on the market for single family/patio homes was 13.  For condo/townhomes it was 14.  

Also in El Paso County, the sales price/list price for single family/patio homes was 100.3% and for condo/townhomes it was 100.8%. 

In Teller County, the average days on the market for single family/patio homes was 19 and the sales/list price was 99.4%. 

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 July 2022 to July 2021 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 2,087, Down 4.1%

·       Number of Sales were 1,403, Down 23.9%

·       Average Sales Price was $557,250, Up 11.2%

·       Median Sales Price was $482,500, Up 7.2%

·       Total Active Listings are 2551, Up 160.0%

·       Months Supply is 1.8, Down 6.7%

 

Condo/Townhomes:

·       New Listings were 270, Down 14.8% 

·       Number of Sales were 208, Down 13.7%

·       Average Sales Price was $374,320 Up 15.2%

·       Median Sales Price was $352,500, Up 11.9%

·       Total Active Listings are 234, Up 125.0%

·       Months Supply is 1.1, Down 9.1%

 

Now a look at more statistics…

 

JULY 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 23.0%

 

• Median Sales Price for All Properties was Up 8.0%

 

• Active Listings on All Properties were Up 91.8%

 

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:

 

THE CURRENT RESIDENTIAL real estate MARKET IS NOT A HOUSING BUBBLE

KeepingCurrentMatters, 8.2.22

As the housing market shifts, some of you may be wondering what will happen next.  Some consumers believe the market is in a housing bubble, and it’s only natural for concerns to turn to whether it could be a repeat of what took place in 2008.The good news is, there is a lot of concrete data to show why this is nothing like last time.

There’s a Shortage of Homes on the Market Today, Not a Surplus.  The supply of inventory required to sustain a normal real estate market is approximately six months.  Anything more is an overabundance and will cause prices to depreciate.  Anything less is a shortage and will lead to continued price appreciation.

For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall.  Today, supply is growing but there is still a shortage of available inventory, and most especially here in the Colorado Springs area.

The graph below uses data from the National Association of Realtors (NAR) to show how this time compares to the crash.  Today nationally, unsold inventory sits at just a 3.0-months’ supply at the current sales pace.

 

 

Among the reasons inventory is still low is because of sustained underbuilding.  When you couple that with ongoing buyer demand as millennials age into their peak homebuying years, it continues to put forward pressure on home prices.  That limited supply compared to demand is why experts forecast home prices won’t fall this time.

 

Mortgage Standards Were Much More Relaxed During the Crash.  It was much easier to get a home loan during the lead-up to the housing crisis than it is today.  

The graph below showcases data on the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA).  The higher the number, the easier it is to obtain a mortgage.

 

 

Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home.  Back then, lending institutions took on much greater risk in both the person and the mortgage products offered.  That led to mass defaults, foreclosures, and falling prices.

Today things are quite different, and buyers are facing much higher standards from mortgage lenders.  Mark Fleming, Chief Economist at First American, says: “Credit standards tightened in recent months due to increasing economic uncertainty and monetary policy tightening.”

The stricter standards of today help prevent the risk of a rash of foreclosures like there was last time.

 

The Foreclosure Volume Is Nothing Like It Was During the Crash.  The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst.  Foreclosure activity has been on a downward trend since the crash because buyers today are more qualified and less likely to default on their loans.  

The graph below uses data from ATTOM Data Solutions to help explain:

 

 

Important to note is that homeowners today are equity rich, not tapped out.  In the run-up to the housing bubble, some homeowners were using their homes as personal ATMs.  Many withdrew equity as it built up.  When home values began to fall, some found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home.  Some of those homeowners decided to walk away from their homes, and that led to a wave of depressed property listings (short sales and foreclosures), which sold at considerable discounts that lowered the value of other properties in the area.

Today, prices have risen nicely over the last few years and that has given homeowners an equity boost.  According to Black Knight: “In total, mortgage holders gained $2.8 trillion in tappable equity over the past 12 months—a 34% increase that equates to more than $207,000 in equity available per borrower…”.

With the average home equity now standing at $207,000, homeowners are in a completely different position this time.

 

Bottom Line?  If you’re concerned about today being anything like the housing bubble of 2008, these graphs should help alleviate your worries.  Concrete data and expert insights clearly show why today is nothing like the last time.

If you have any questions about any of this, please give me a call.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 7.29.22

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.

 

 

For those of you who like to plan ahead, the always informative UCCS Economic Forum Event this year will be held at the ENT Center for the Arts on Thursday, September 1, 2022, from 1:30-4:30, with a networking and happy hour to follow.  Full agenda and registration can be found at:                    

www.UCCSEconomicForum.com

July 27, 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 real estate issues that will help to make you a more successful and profitable buyer or seller.

 

LOTS OF QUESTIONS…STILL THE SAME ANSWERS…

I’ve recently been asked many questions in regard to the local Residential real estate market.  

• Is it a good time to buy? 

 

• Is it a good time to sell? 

 

• What about the rising interest rates?

  

• Are home prices going to continue to rise?

  

• How will this affect my personal situation?

 

• And that’s only a few of them

 

Those of you regular readers know my answer already since I’ve never wavered in reply.  It’s always a good time to buy and sell if that is what you need or want to do and it’s a matter of finding the best way for your personal situation.

There are always folks who need to buy and those who need to sell, both for various reasons, and my job is to make the process as easy as possible to meet the needs, wants and budgets of my clients and potential clients.

I’ve been saying for quite some time that price appreciation this year locally will fall to around 10%, which is certainly a good return, but will allow the market to normalize somewhat.  The recent fast pace of price appreciation has made it difficult for first-time buyers especially, and has driven up demand as folks have been worried that if they don’t sell and trade up soon they could be priced out of the market.  

High demand and low inventory across the country, and most especially here in the Colorado Springs area led to selling prices over asking price and created bidding wars which favor all-cash buyers who have been willing to forego inspections and contingencies.  Again, a detriment to first-time buyers, and for those who need to apply for a mortgage. 

However, if you are ready to sell and trade up or move to a new location or even are looking to buy for investment purposes, there is no better time than the present.  Your current equity will likely give you an excellent down payment and even with the higher interest rates you could possibly keep your monthly output close to what you currently pay.  

And I can tell you this much—if you’ve waited for prices to come down, you’re going to wait a very long time and it is doubtful that you will see that happen.  You hopefully will see prices rising more realistically in the next few years as more homes become available for sale.  

If you have waited for interest rates to go back down, well, good luck with that as well.  Writing as someone who had an interest rate of 8.5% on my first home in 1972, and have seen them as high as 20%, I still consider today’s rates to be excellent.  Why?  Because the annual appreciation of about 10% now equals about 4% above a 30-year fixed-rate mortgage of 6% today.

While I was starting to write this column yesterday, news from The Wall Street Journal flashed across my screen.  I couldn’t wait to share it with you since it answers many of the questions I’ve been asked.  So, without further ado:

 

AND IT’S GREAT NEWS FOR THE COLORADO SPRINGS housing market…

The Wall Street Journal, 7.26.22

The article is titled: “Low-Cost Cities with Strong Economies Remain Attractive as housing market Slows” and it goes on to add that “Remote workers help push small, affordable areas to the top of the latest WSJ/Realtor.com index”.

As remote and new hybrid work schedules are becoming more common, employees are willing to relocate for cheaper housing or a better quality of life.  Work/life balance is becoming very important and that has helped push smaller, affordable markets to the top of the second quarter “Emerging Housing Markets Index” published by The Wall Street Journal/Realtor.com.

The index identifies the top metro areas for home buyers seeking a strong housing market, flourishing economy, and appealing lifestyle.  The methodology explored two main areas:  real estate markets (50%) and Economic health (50%).  

Those two areas comprise eight key indicators:

• real estate Supply (16.6%)
• real estate Demand (16.6%)
• Median Home Listing Price (16.6%)
• Unemployment (6.25%)
• Wages (6.25%)
• Regional Price Parities (6.25%)
• Amenities (6.25%)
• Commute (6.25%)
• Foreign-Born Residents (6.25%)
• Small Businesses (6.25%)
• Property Taxes (6.25%)

Overall, existing-home sales have dropped for five consecutive months.  After two years of fast-rising home appreciation and low interest rates, declining affordability and economic uncertainty is beginning to push some buyers out of the market.  Some sellers are lowering their list prices and price growth is expected to continue to slow in the coming months.

This comes as the U.S. median home price hit a record high of $416,000 in June according to the National Association of Realtors, up 13.4% on the year and the highest since records began in 1999.  As you know, our local median single family home price for that same period was $495,000, up 14.6% year-over-year and our average sales price was $551,304, up 12.6% year-over-year.  

While we have seen an uptick in available homes for sale in the past several months, we are still seeing some multiple offers.  Maybe not 15, as I had on one home and probably closer to 2 or 3, but the good news is that we are still seeing competitive offers on a number of listings.  

With so many folks wanting to relocate here and only so many homes for sale, our housing market is geared to remain healthy even while other areas might not far so well.

So let me cut to the chase---out of the 300 metro areas surveyed, Colorado Springs ranked number 20.  Yes, once again, our city is considered one of the cities that continue to remain attractive even as the housing market is slowing nationwide.

As you will see, Denver is not among the top 20—it is ranked number 66. Fort Collins came in at 11 and Boulder at number 14, so that is great for Colorado in general and for us in the Colorado Springs area, just another reason to be happy we live in a city that is so desirable. 

I know, I know… I would have liked to have kept it a secret, too, but…in terms of inevitable growth, it is a big “wow” that our economy, small business friendliness, unemployment and housing demand is so fabulous.

And once again, I want to give a big shout out to all of our hard-working city and county employees, our Chamber and EDC, and folks such as Mayor John Suthers, Doug Price of Visit Colorado Springs, Chancellor Venkat Reddy at UCCS and so many more who have worked tirelessly to get the Colorado Springs as healthy as it is today and have brought in new businesses, and with them, new residents.  Colorado Springs is no longer that little tourist town south of Denver and our future is looking very bright. Bravo to all.

Here are the top 20 markets as identified in the Index:

There you have it.  

Yes, it could take a bit longer to buy or sell today and you may pay a higher interest rate, but there are a lot of options, and you have your ace in the hole—me.  With my 50 years in the local real estate arena, along with my Investment Banking background, I’ve seen it all and understand what it takes to work in all types of situations.

So, here I am, ready, willing, and able to answer all your questions personally.  Simply give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and we can go from there.  If I can’t give you the answer to every question you might have, fortunately with all my experience and local connections, I know where to get any answer, and that’s as important as knowing it all!  

 

RENT VS. BUYING?  AN INFOGRAPHIC

KeepingCurrentMatters, 7.15.22

 

July 7, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal 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.

 

 

YOUR HOME IS LIKELY YOUR MOST “APPRECIATED” ASSET…IN MORE WAYS THAN ONE…

Our homes are our safe havens, our respite from the frenzy of everyday life.  They are where we make memories with our friends and family and oftentimes our “office” away from the office.  A reflection of our individual tastes and often our largest personal asset. 

During the Covid pandemic we found our homes to be our “everything”.  They served as schools, offices, restaurants, entertainment centers and so much more.  And during that forced quarantine many of us came to “appreciate” our homes more than ever before.  Some found new wants and needs and have addressed those, or at least know what they consider to be essential in a future home.    

With the stock and bond markets in constant flux recently and home appreciation staying at historically high levels, it’s likely you are finding home “appreciation” on the financial side as well as the emotional one.

According to an annual survey from Gallup, Americans have chosen real estate as the “Best Long-Term Investment” for 9 years in a row. 

This chart below illustrates the survey findings:

 

 

Due to inflation reaching its highest level in 40 years, it’s more important than ever to understand the financial benefits of homeownership.  To put it in simple terms, rising inflation means prices are increasing in all areas…goods, services, housing costs and more.  

When you purchase a home, you lock in your monthly payments, effectively shielding yourself from increases on one of your largest monthly budgetary items.  If you are a renter, you don’t have that same benefit and aren’t protected from these increases, especially when rents are rising as quickly as they are today.  

According to Danielle Hale, chief economist at realtor.com, “Rising rents, which continue to climb at double-digit pace…and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.”

One of the advantages of investing in real estate is that it often acts as a good hedge against inflation since there will always be people looking to buy homes, regardless of the economic climate, and because as inflation rises, so do property values.

My background in Investment Banking gives me a head up on many Realtors as I better understand the financial implications involved in purchasing a home, no matter the economic cycle.  Yes, today’s interest rates are most certainly higher than a year ago, as I and many others predicted, but that doesn’t mean first-time buyers or others cannot afford to purchase a new home.  It simply is a matter of understanding the options and finding a way to make it work for each individual situation.

Not only do I study the money markets each day, but I also look at the prices of commodities such as lumber, concrete, and steel.  Those prices affect how homebuilders price the new homes being built.  At present, most of these commodities are down, which will translate into better prices for new home construction.  

There is so much more than interest rates to consider when looking for a home and that’s why you are fortunate to have me in your corner.  I’ve just celebrated 50 years in the local Residential real estate arena and have been around for most every cycle imaginable.  I’ve witnessed 30-year fixed mortgage interest rates as high as 20% (1982) and as low as 2.5% (2020).  I’ve sold homes for $18,000 and for over a million dollars.  I’ve sold homes to first-time buyers, as well as investment properties for those wanting to be landlords.  And along the way I have learned the” ins and outs” of getting a deal done right. 

But the most important thing I’ve learned is that each client has their own wants, needs and budget requirements.  That’s why I look at each client individually and sit down with them to come up with a plan before the home buying or selling process begins, something that’s even more crucial in today’s fast paced buying and selling environment. 

It all starts with a call to 719.593.1000 or email to Harry@HarrySalzman.com so we can begin work to make your housing dreams come true.  

 

And now for statistics…

 

JUNE 2022

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

Here are some highlights from the June 2022 PPAR report.

In El Paso County, the average days on the market for single family/patio homes was a very low 9.  For condo/townhomes it was 7.  

Also in El Paso County, the sales price/list price for single family/patio homes was 102.1% and for condo/townhomes it was 102.5%. 

In Teller County, the average days on the market for single family/patio homes was 16 and the sales/list price was 100.6%. 

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

 

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

             

                        Single Family/Patio Homes:

·       New Listings were 2,350, Up 25.3%

·       Number of Sales were 1,712, Up 10.4%

·       Average Sales Price was $551,304, Up 12.6%

·       Median Sales Price was $495,000, Up 14.6%

·       Total Active Listings are 2,125 Up 265.1%

·       Months Supply is 1.2, Up 25.5%

 

Condo/Townhomes:

·       New Listings were 302, Up 46.6% 

·       Number of Sales were 218, Down 0.9%

·       Average Sales Price was $366,659 Up 15.0%

·       Median Sales Price was $348,000, Up 12.1%

·       Total Active Listings are 200, Up 181.7%

·       Months Supply is 0.9, Down 199.9%

 

Now a look at more statistics…

 

JUNE 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 7.5%

 

• Median Sales Price for All Properties was Up 10.3%

 

• Active Listings on All Properties were Up 100.9%

 

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

 

BUYERS’ 5 WORST FEARS ABOUT THE 2022 real estate MARKET AND WHY THEY MAY NOT BE VALID

The Close, 6.13.22

 

1. Is There a Housing Bubble?  No, there is no bubble at present.  And the current conditions are different from what happened during the housing bubble of 2007 and 2008. If you look at the types of mortgages that were issued prior to the bubble bursting, you can see we were headed for a crash.  The current market situation is very different.  During the recession of 2008, inventory exceeded the demand once the bubble burst, but in this market, the inventory is chasing demand.  As long as demand outpaces supply, the market should remain stable.

 

2. Is There a Recession Coming?  Yes, a recession is on the horizon but that’s not necessarily a bad thing when it comes to real estate.  Typically, when we have a recession that requires the Federal Reserve to increase interest rates to reverse inflation, mortgage rates will drop.  In each past recession, mortgage rates came down and they should here as well.  

Further down the road there will likely be a time when the higher mortgage interest rates of today will allow homeowners to refinance to a lower rate.  Wherever that rate lands, it is sure to be more attractive than today.  

Also, contrary to what you might think, housing values typically increase during a recession.  Therefore, even if homes are appreciating a bit slower during a recession, they are still appreciating.  In our last nine recessions, home values have gone up during eight of them and then went up a lot after each of eight of nine recessions.  The only anomaly was when we had the housing bubble in 2007 and 2008.

Overall, the housing market is stable, even as inflation drives prices up.

                        

3. Inflation is Too High—I Won’t Be Able to Afford to Buy a House Right Now.  As I stated earlier, purchasing a home now means a buyer’s mortgage payment will stay the same year over year, whereas renters might get slapped with rental increases each year as inflation or appreciation increases.  Also, your mortgage becomes easier to manage as your income increases.

That doesn’t mean affordability is easy today, but it’s not as bad as you might think.  Homes prices have gone up, on average around 18% but mortgage rates have gone up about 2% over the past year.

 

4. Will Mortgages Continue to Rise?  In most likelihood, they will probably level off before they reach 7%.  But here’s something to remember—you can refinance your mortgage after a year.  By that time, the rate will likely have dropped back to around 5%.

 

5. Will My House Be Worth Less in the Next Few Years?  This is a great question and one that gets asked the most.  The simply answer is no, most homes aren’t likely to lose value.  The demand for housing will continue to grow from people who will be looking to buy their first home in the next few years or for those relocating and want to own rather than rent.  

 

The real estate market looks like it will continue to grow and hum for the foreseeable future.  As long as demand remains high, and most economists suggest that it will, we will continue to have home appreciation.

I believe the November elections will change the political climate and assuming that happens, steps could be taken to modify what’s happening in today’s economy.  If so, we could experience a shorter period of time in the recession.

According to Tatiana Bailey, our “local economist” and director of the UCCS Economic Forum, there are approximately 12,000 people who at the moment are looking to buy a home here.  Considering at present there are only around 2,000 single family homes for sale, the Colorado Springs area housing market looks to remain strong for the foreseeable future.

Hopefully this answers some of your own questions and if you have others, please don’t hesitate to give me a call.

 

THE TIGHT housing market IS IGNITING HOT BIDDING WARS FOR RENTALS

The Wall Street Journal, 6.28.22

It’s no longer just houses that are going for over list price.  Landlords all around the country are now finding that rental units are being leased for over their asking price as well.  

With the low supply of available homes for sale, folks who either sold their home and have yet to find a new one, or those who want to wait out the interest rate hikes, are looking to rental solutions for now.  What they are finding out is that there are plenty of others in the same boat and some are willing to make an offer of 10-15% over the ask of the landlord.

As you might imagine, this is hurting those who cannot afford or cannot qualify to buy even harder.  This is something I had never heard of until recently and not something I hope to see continue.

What I do know is that the rental market is as hot as the housing market and my clients who look for investment properties are still looking, despite the higher interest rates because what they can get in rent will more than make up for the higher interest they might have to pay.  

If rental property is something you want to add to your investment portfolio, give me a call.  As a landlord myself, I’ve had a lot of experience in this area and can steer you in the right direction.  And, as always, before even considering it, please check with your tax and investment advisors to see if this is a viable option for you.

 

MORTGAGE RATES DROP AFTER THREE WEEKS OF INCREASES

The Wall Street Journal 6.30.22

While mortgage interest rates have dropped a bit, they remain near multi-year highs.  This is fastest acceleration in mortgage rates in decades.  At the busiest time of the year for home sales, these rates, along with continued home price appreciation has made it much more difficult for some would-be-buyers to purchase a home.

However, home price growth is staying strong throughout the country and bidding wars and sales over list price are still the norm even while sales are down somewhat.  In areas like Colorado Springs where a number of folks are being relocated along with their companies, home demand continues to far outpace the inventory of homes for sale.  

As I mentioned earlier, there are still ways of working within the tough new parameters and still be able to find a home that can work for you or a family member.  If you find yourself wondering how to make this happen, please give me a call and let’s look at the numbers and see what we can do.

 

AND JUST A REMINDER:

 

HARRY’S THOUGHTS OF THE DAY:

 

Speaking of Appreciation…