Real Estate Information Archive

July 1, 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.

 

 

An Ode to Friendship, Residential real estate and Patriotism….and why I do the things I do.

 

For those of you who read my bi-Monthly e-Newsletters, you might have thought I forgot last week.  On the contrary, I will never forget last week.

I’ve been in local Residential real estate for a little over 50 years now and it’s truly become a passion, as well as a profession.  Finding the right property that suits the wants, needs and budget requirements of my clients has required me to know them on a very personal level.  

Buying a home, either for personal use or investment, most often provides my clients with one of their greatest financial assets.  Therefore, it’s crucial for me to spend the time to make certain we find the right fit for that particular time in their life.

relocation has been a specialty of mine for decades, oftentimes corporate relo, but I actually look at relocation also as simply making a move to a new neighborhood or transitioning to a better fit for a growing or empty-nesting family.

I’d like to share a personal experience, and the reason my regularly scheduled e-Newsletter wasn’t published this week.  While it’s a personal story, it is also actually defines why I do what I do.

My best friend of more than 50 years passed away a week ago.  While it’s been tough to grasp the reality of it, I was also able to appreciate how my chosen profession is truly an advocation.

I met Dr. Gary Markewich in 1973 when he and his family were relocating here for a stint at Fort Carson, and I sold him his first home.  And then his next home.  And his next.  During that time, he became my closest friend, and his family became part of mine.  

When he left the Army, Gary went into private practice in the Springs and eventually left to open a practice in Las Vegas.  Our friendship didn’t change except for the fact that we had to hop a plane to have in-person visits.

Four years ago, he decided to move back to the Springs to be near his sons, daughter-in-law, and grandchildren.  I facilitated the sale of his Las Vegas home and was assigned the task to find a different kind of home for him here.

Gary had been diabetic for many years and, as you might be aware, symptoms can include neuralgia.  He knew he needed a home where he did not have to navigate stairs but being the larger-than-life guy that he was, he wasn’t ready for any type of “assisted” living. 

Lucky for him, he had me.  Not just as a friend, but also as a Realtor.  I spent time trying to understand exactly what was important to him in terms of location, as well as his personal mobility.  Several homes I considered for him were either a bad fit in terms of location and/or for his health issues.

And then, one day as I was talking to long-time clients/friends, they asked me to list a home for one of their parents who was moving into an assisted living facility.  When I saw the home, I knew it would be a great fit for Gary since it had all the “handicap” requirements he might need either then or in the future and it was in the perfect location for him.  

Sight unseen (except for photos), he purchased the home and lived there happily for the last four years.  It was also close to my home and that gave us the opportunity to reconnect in-person on a much more regular basis.  For that I will be forever grateful.  

When he passed away peacefully in his sleep in his own home last week, it gave me some peace in knowing that I had been able to play a role in that.

And that’s when it really hit me even harder than usual. 

 

What I do makes a big difference in the life of my clients.  

 

The time I spend getting to know each client provides me with the information necessary to help them live the best life possible.  Homes are our “safe havens” and finding the right one at the right time can make such a difference.

I had not spent much time thinking of how much of a part my profession played in defining one of the most important friendships of my life until this week.  Dr. Gary Markewich was one of the finest, funniest, most intelligent, generous, and caring people I’ve ever had the privilege to call “friend”.

The best way to honor that friendship is for me to keep doing what I do…. helping people to live the best life possible by finding them the “right home at the right time”.  A “safe haven” when the world is not always quite so safe.

Thank you for allowing me to share this story.  It’s helped me to put it down on paper.  

 

Wishing you and your family, a healthy, happy July 4^th holiday and you will hear from me again next week with my regularly scheduled post.

 

 

June 10, 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.

 

 

DESPITE RISING MORTAGE LOAN RATES, OR MAYBE BECAUSE OF THEM, HOME DEMAND IS STILL AT A PEAK

As you know, mortgage loan rates are at their highest in at least ten years and are up over 2% from a year ago.  The rate increase was not unexpected; however, I don’t think many economists would have thought they would go up this high so quickly.  

This is not holding down price appreciation nor buyer demand at present.  As you will see below, our home prices are continuing to reach record highs and are likely to keep doing so until there are more available homes for sale.  

Higher rates are starting to hurt first-time buyers and those who cannot qualify for the higher monthly payments.  Lenders are starting to see more activity in the adjustable-rate market for the first time in a number of years, but these loans bear little resemblance to the ones blamed for the 2008-9 financial crisis.  

The type of borrower who qualifies for today’s Adjustable-Rate Mortgages (ARMs) is quite different from those who were qualified back in 2006-2008.  Today’s ARM borrowers need higher credit scores and have to meet much tougher qualifications than those back in the early 2000’s.

While rates of 5% and higher do not faze those of us who have been around for the 12-18% rates of old, it still comes as sticker-shock to young people who have seen the historically low rates of recent times.

For those folks who had waited to see if rates would go down further or home prices would drop…well, as I have been warning for some time…the time for waiting is past.

If you have even considered a move or want to purchase a home for investment purposes, wait no longer.  It’s likely that the equity in your present home is higher than you might imagine and with a higher down payment you might be able to keep your monthly output close to what it is at present.  

We are starting to see a few more listings which is great, but they are still being sold in record time and over list price.  Bidding wars and multiple cash offers are the norm, and I would guess will be here until there are more homes for sale.

Rental rates are continuing to rise and with them the demand for homeownership.  Let’s face it, when you rent you are paying down someone’s mortgage, just not your own.  Millennials are buying up homes much quicker than in the past as they realize how homeownership can help build financial security.  

And of course, Colorado Springs and vicinity is seeing a number of new businesses relocating here and their relocated employees are also looking for places to live.  This is putting added pressure on our low supply housing market.

Local homebuilders are still seeing an influx of those wanting to buy and I’ve helped a number of my clients in purchasing new construction in recent months. That’s just one of the many services I provide, and at no additional cost to you.

I will emphasize it once more—if you are in the market for anything residential—do not delay.  You really won’t know what you can do until you sit down with a professional like me to find out how your wants, needs and budget can work in your favor.

And speaking of me, I just celebrated 50^th years in the local residential real estate arena.  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…

 

MAY 2022

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

Here are some highlights from the May 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 10.  

Also in El Paso County, the sales price/list price for single family/patio homes was 103.4% and for condo/townhomes it was 103.2%. 

In Teller County, the average days on the market for single family/patio homes was 10 and the sales/list price was 102.1%. 

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

 

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

                        

                        Single Family/Patio Homes:

·       New Listings were 2,200, Up 17.3%

·       Number of Sales were 1,689, Up 8.9%

·       Average Sales Price was $554,013, Up 13.2%

·       Median Sales Price was $487,000, Up 12.7%

·       Total Active Listings are 1365, Up 69.1%

·       Months Supply is 0.8, Up 7.8%

 

Condo/Townhomes:

·       New Listings were 251, Up 21.8% 

·       Number of Sales were 208, Down 5.5%

·       Average Sales Price was $369,783, Up 16.0%

·       Median Sales Price was $365,000, Up 17.6%

·       Total Active Listings are 113, Up 59.2%

·       Months Supply is 0.5, Down 10.8%

 

Now a look at more statistics…

 

MAY 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 Up 3.6%

 

• Median Sales Price for All Properties was Up 13.8%

 

• Active Listings on All Properties were Up 52.3%

 

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

 

 

COLORADO SPRINGS RANKS #32 IN THE Q1 FHFA HOUSE PRICE INDEX

FHFA, 5.31.22

The recently published FHFA House Price Index for first quarter 2022 lists Colorado Springs as #32 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 the country as a whole, with a year-over-year price change of 20.9% and a quarter-over-quarter change of 5.2%.  

We would have ranked considerably higher if we had more available homes for sale.  

Here is a copy of the Colorado Springs changes:

 

If you are interested in seeing the entire list of 100 cities in ranking order, please click here.  And, if you have any questions, you know who to call.

 

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

ERAShields, 5.31.22

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

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

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 6.1.22

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 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 will be available soon.

May 25, 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.

 

 

COLORADO SPRINGS NAMED NO.2 IN BEST PLACES TO LIVE REPORT

U.S. News & World Report, May 16, 2022

In last week’s annual rankings of the “Best Places to Live” by U.S. News & World Report, Colorado Springs rose to the number two ranking from last 6^th place a year ago.  We have placed in the top six of 152 cities for five consecutive years and have surpassed Boulder (#4), Fort Collins (#54), and Denver (#55) this year.

This report is intended to help folks make the best decision when choosing where to settle down among the top 152 metro areas, based on answers from voters across the country who were asked to list what they believe to be the most important factor when choosing where to live.

The criteria and percentage used included:

• Job Market Index—20%.  The two factors used here were the unemployment rate and the average salary.

 

• Value Index—25%.  This index, also called the Housing Affordability Index, measures how comfortably the average resident of each metro area can afford to live within their means.  To do this, the median annual household income was compared with the housing cost in each area.

 

• Quality of Live Index—32.5%.  This index measures how satisfied residents are with their daily lives in each ranked metro area.  Multiple aspects of life were evaluated using a weighted average based on a survey of what importance people across the U.S. placed on each aspect.  These are:

1. Crime Rates (25%)
2. Quality and Availability of Health Care (10%)
3. Quality of Education (20%)
4. Well-Being (20%)
5. Commuter Index (17%)
6. Air Quality Index (8%)

 

• Desirability Index—17.5%.  This measures whether people want to live in a given metro area.

 

• Net Migration—5%.  This measures whether people are moving to or away from each metro area.  While the Desirability Index measures whether a metro area is appealing, Net Migration represents whether a metro area is actually attracting new residents.

 

Those of us who live here, whether for a lifetime, newly arrived, or a 50-year resident such as me, we all are aware of the exceptional benefits of calling Colorado Springs our home.  And I know some of us wish that we could have kept it “our” secret for many, many years.  However, times change and so do how people wish to work and live.

Once folks discovered that work-life balance was an important element for them, it was going to be tough to convince them that simply “visiting” here would suffice.

This is one of the reasons for the lack of available homes that cities such as ours are facing.  So many businesses are wanting to relocate here, and they bring with them employees who need homes.  

Employees who can now work from anywhere are choosing to live in cities such as ours for all of the above reasons as well.  

I wish to point out that Colorado Springs did not earn this important accolade on its own or simply by chance.  

All of us who live here owe a debt of gratitude to Mayor John Suthers for his foresight and genuine devotion to his hometown.  We also need to thank our City Council, Chamber/EDC, County Commissioners, Doug Price and the Visit COS team, as well as educators such as UCCS Chancellor Venkat Reddy who work tirelessly to not only improve the city but to help spread the word about Colorado Springs both near and far.  Their hard work has brought great returns and I’ve no doubt their work will continue to do so for years to come.

If you’d like to read the U.S. World & News Report story in it’s entirety and see all the cities surveyed, please go to:

https://realestate.usnews.com/places/rankings/best-places-to-live?int=top_nav_Best_Places_to_Live

 

AND NOW FOR MY REGULARLY SCHEDULED COLUMN…

With the Residential real estate market changing at record pace, it’s oftentimes a challenge to stay dialed in.  Rising interest rates, coupled with lack of available homes for sale and high price appreciation, only brings more and more questions concerning the impact on home affordability.

I’d like to give you some examples of what’s happening in the Colorado Springs market.  

The local average price of a home is currently around $557,000.  At 4.5%, the principal and interest payment on a 30-year fixed-rate mortgage with 20% down would have been $2258.  With a 0.5% increase in interest rate, at 5%, the payment would have been $2392.  And with a rate of 5.5% that monthly payment is $2530 today.

Now let’s consider it from the standpoint of how much home a buyer can qualify for.  Based on $100,000 gross income, the interest rate of 4.5% and a 30% debt-to-income ratio, you might qualify to buy a place for $415,000 and at 5.5% interest rate you would only qualify to buy a place for  $370,000.  That’s a pretty big difference.

This, of course, is of greatest concern for first-time buyers.  With rental rates increasing so quickly, many who have been renting are finding it would be not only less expensive to own but would provide them with an asset that will increase over time by building equity for them rather than for their landlords.

I attended a meeting for Pikes Peak Area Realtors Monday evening and one of the speakers was from the National Association of Realtors (NAR).  She was talking about the rising interest rates and comparing it to other times when the country was heading to, or already in, a recession.  One of the things she told us is exactly what I’ve been telling you for some time—the price of homes is not likely to go down even in a recession—and the shortage of available homes is here for the foreseeable future.  

I have been advocating for acting NOW over the last three or four years and many of you have done so.  Others have chosen to wait for various reasons.  What I can tell you is this.  Even I did not expect rates to rise this quickly.  I knew they were headed up, but this is the fastest they have done so in many, many years.  Will they continue to rise?  Will they come down a bit?  I don’t think anyone of us has the answer.

What I do know is that the right time for buying and selling a home is when it is the right time for YOU.  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 it.  You hopefully will see prices rising more realistically in the next few years as more homes become available.  

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 12% on my first home, I still consider today’s rates to be excellent.  

I can tell you this for certain.  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 higher interest rates you could possibly keep your monthly output close to what you currently pay.  

But you won’t know anything unless you ask.  And lucky for you, you’ve got me.  With my 50 plus years in the local Residential real estate arena, coupled with my Investment Banking background and expertise in negotiation, I’ve been there, seen it all, done it all, and am still here doing it for clients, past clients, and friends, family and co-workers of clients.  

Give me a call today at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make your Residential real estate dreams come true.

 

12 TIPS FOR THOSE LOOKING TO NAVIGATE THE WILD real estate MARKET

5280, May 2022

1. Be Ready To Pay Well Over Asking Price.  Today, asking price is the “starting” point and offers most always go up from there.  Bidding wars and all-cash offers far over asking price are becoming the norm.  It’s important to make your first offer your BEST offer if you want to be taken seriously by the seller.

 

2. Get Your Finances In Order and Then Find a Lender.  

Getting pre-approved for a loan is essential, especially in today’s market.  It’s important to know what you can afford and if you can qualify for what you need.

First-time buyers need even more time to make certain they have everything in order so should start the pre-approval process as early as possible.

If your credit score is in the mid 600’s or lower, try to pay down some debt.  Your credit utilization ratio, which measures how much credit you’re using compared to your credit limit is a key component banks use to determine your loan amount.

If you don’t have five to 20 percent of the purchase price to use as a down payment, keep calm and ask your potential lender about first-time homebuyer assistance programs such as SmartStep Plus from the Colorado Housing and Finance Authority.

If you get approved for a U.S. Federal Housing Administration (FHA) loan your lender will inform you that waving inspection—which often sweetens a deal in this tight market—isn’t an option.

 

3. Budget for Interest Rates to Go Up This Year.  Interest rates are rising faster than in a very long time, so you need to consider the effect if the interest rate is higher when you purchase your home.

 

4. Determine What You Can Live Without.  Available and affordable are two rarities in this market, which means you are most certainly going to have to compromise on your list of must-haves.  Figuring out what not settling looks like can be a challenge.  A house may not have everything you want, and most do not, but if it has “good bones” you will be able to renovate to your liking down the road.

 

5. Beware the Risks of Waiving Contingencies.  Contracts are meant to protect buyers—and sellers—but in today’s market, where bidding wars are common and homes go under contract in a matter of days (if not hours), buyers are waiving their rights in order to not lose houses to less fussy buyers.  Forgoing financing contingencies, home-inspection contingencies or appraisal contingencies could cost you in the end.

 

6. Understand the Difference Between FHA and Conventional Loans.  There are significant differences between these two loan types and it’s important to know them.  The minimum down payment, minimum credit score, maximum debt-to-income ratio and mortgage insurance requirements are different and it’s important to understand which can work best for you.

 

7. Assess the Value of New Versus “Vintage”.  There are many things to consider if you are comparing “new” homes to “vintage” homes and it’s important to understand the pros and cons of each.

 

8. Be Prepared.  With floods and fires becoming more common in suburban areas, it’s important to know how to safeguard your home and minimize risk if disaster comes knocking.  It’s crucial to re-evaluate your home insurance coverage, stay up to date on new mandates for fire codes, inventory your possessions and their values and document the items room by room.  Keeping vital records off-site can give you peace of mind in an emergency and making a plan for things with sentimental value will assure that family heirlooms get to the rightful people.

 

9. Consider a Condo or Townhome if You’re a First-Time Home Buyer.  It’s more important to get your foot in the door for your first home purchase than to get everything you want all at once.  After you own a home, you can gain equity and move on.  It’s somewhat like a savings account that will help you save for the next move.

 

10. Find a Champion in Your Agent. According to the Colorado Association of Realtors, this past January there were roughly 22,000 real estate agents working in the state, a little more than 5,000 active listings statewide, and a market flush with buyers and cash.  With all this competition, you will definitely want someone like me in your corner who won’t ignore your 3 a.m. text message full of new listings.  The most important things to consider when looking for an agent is whether they are 1) full time and 2) a seasoned professional.  If the answer is no, run as fast as you can toward someone like me who has many, many years of experience in all types of markets and who knows how to negotiate the best deal for you.

 

11. Consider Buying With Friends and Family.  It’s not always easy to purchase a home, especially a first home, alone these days.  Purchasing with friends and/or family can be an option and one that is worth considering.

 

12. Be Creative, but Realistic When Using Digital Resources.  Online sites such as Zillow can be helpful in giving you an idea of market prices, but they cannot replace the one-on-one assistance of a professional, licensed real estate broker. 

 

So there you go.  Some helpful suggestions that can start you on your way.  And when you are ready to move ahead full steam…you know where to find me.

 

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

ERAShields, 4.30.22

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.  

 

May 9, 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.

 

IN RESIDENTIAL real estate, THE WORD OF THE YEAR IS “UP” …

…and it’s “up” in so many, many ways.

Let’s begin with prices.  In April, the Colorado Springs area average sales price for a single family/patio home was $561,907 which is up 16.6% year-over-year. That’s $60,000 more than the same time last year!  For condo/townhomes the average sales price was $387,761, up 19.6% year-over-year.  

The next “up” is mortgage interest rates.  At an average of 5.27% as of last week for a 30-year fixed-rate loan, they are now the highest they have been in nearly 13 years.  From January to April, rates rose at their fastest three-month pace since 1994.  And like housing prices, interest rates show no sign of slowing down their upward trend.  Some experts are predicting rates to go as high as 6% this year.  

Everything to do with Residential real estate is moving fast and will continue as the traditional spring buying season gets fully underway.

As I’ve been telling you, one of the reasons for the continued high escalation of prices is the shortage of available homes for sale.  With so few on the market over the past year, bidding wars and sales considerably over the listing price have become the norm.  When there are more homes for sale, price appreciation should begin to normalize, making it more affordable and hopefully less fiercely competitive for potential buyers.

In the recent past, higher interest rates might have meant slower sales, but at present we are not seeing that happen.  It could prevent some first-time buyers from qualifying, but in general there are so many folks wanting to buy homes that the interest rate, while considerably higher than what it was, is still low compared to years past and will not deter them from the search for a new home.  According to Ralph McLaughlin, real-estate economist for The Wall Street Journal, “We’ve never seen a time where mortgage rates have risen as quickly as they have and the market hasn’t cooled off”.

We are beginning to see more listings and I’m guessing that homeowners who were on the fence these last few years are realizing that the time to sell and trade up or move to a new neighborhood is NOW.  Home prices aren’t going to get any lower and mortgage rates likely aren’t going back down anytime soon. 

Another reason for the uptick in listings is that a year ago potential sellers were still concerned with having buyers in their homes, or themselves looking at new homes, due to the COVID pandemic.  Today this is not as much of a concern and sellers who were waiting are now entering the market.

It is still a Seller’s Market even with more listings and will continue that way until listings are considerably higher than at present. If you’re holding back from buying a house because of the rise in rates, consider that inflation is up even more!  

We haven’t seen inflation this high since the early 1980’s and if it continues, owning a home is an excellent cushion against rising inflation. Houses, like most physical assets, retain their value during high inflation and have done better than most such assets. 

In any case, there are a lot of things to consider if you are wanting to make a move.  To begin with, you will need to decide upfront exactly what your needs, wants and budget considerations are because when you find a home there is no time to delay in making your best offer.  And when I say best offer, I mean that.  Today’s market finds very creative offers that buyers are hoping will set them apart from the rest.  There is essentially no room for renegotiation and contingencies on the buying side.  

U.S. home prices are predicted to rise another 10% this year (and Colorado Springs area homes will likely rise conservatively 10 to 12%), so there’s no time like the present to start your search.

It is more important than ever to have a professional, seasoned, well-respected real estate broker such as me on your side because experience and negotiation expertise such as mine is more crucial than ever before.  Sellers are wanting their brokers to work with brokers on the other side who they know can bring an offer to closing.  

With the stock market in a slump, I’ve seen an uptick in those seeking homes for investment purposes.  Over the long haul, real estate has surpassed stock and bond returns and today even more so.  That, unfortunately, is adding to the housing shortage and hurting first-time buyers even more.

I truly believe that, while it may take considerably longer than in the past, there is most definitely a home for everyone.  It may not be exactly what you want, but especially for first-time buyers, homeownership is a far better option than renting if possible.  Homes can be updated and renovated, and when the time is right, can likely be sold for a profit or used as a rental property when it’s time to move on or trade up.

There’s a lot to discuss if a move is a consideration and I’ve got the experience to guide you when you’re ready.  

So, if Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And now for statistics…

 

APRIL 2022

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

Here are some highlights from the April 2022 PPAR report:

 

In El Paso County, the average days on the market for single family/patio homes was a very low 10.  For condo/townhomes it was 14.  

Also in El Paso County, the sales price/list price for single family/patio homes was 104.2% and for condo/townhomes it was 104.1%. 

In Teller County, the average days on the market for single family/patio homes was 17 and the sales/list price was 104.1%. 

 

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

 

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

                        

                        Single Family/Patio Homes:

·       New Listings were 2,223, Up 18.3%

·       Number of Sales were 1,489, same as 1 year ago

·       Average Sales Price was $561,907, Up 16.6%

·       Median Sales Price was $484,450, Up 14.0%

·       Total Active Listings are 969, Up 74.0%

·       Months Supply is 0.7, no change

 

Condo/Townhomes:

·       New Listings were 248, Up 14.3% 

·       Number of Sales were 227, Up 2.7%

·       Average Sales Price was $387,761, Up 19.6%

·       Median Sales Price was $365,000, Up 19.7%

·       Total Active Listings are 79, Up 5.3%

·       Months Supply is 0.3, Up 2.0%

 

Now a look at more statistics…

 

APRIL 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 Up 0.4%

 

• Median Sales Price for All Properties was Up 15.0%

 

• Active Listings on All Properties were Up 6.5%

 

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

 

 

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

The National Association of Realtors, 5.3.22

In the recently published report, 70% 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 first quarter of 2022, surpassing the 66% of the previous quarter.

The median price nationally rose 15.7% quarter-over-quarter to $368,200.

Colorado Springs surpassed that, with the median price of single-family homes jumping 17.4% to $455,000 during the first quarter of the year.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 32^nd highest of the cities surveyed.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver, Boulder and 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 you can click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

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

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 4.29.22

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.

 

 

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 will be available next month.

April 19, 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.

 

 

IT SEEMS THE ONLY WAY IS UP WHEN IT COMES TO HOME APPRECIATION…AND NOW FOR MORTGAGE INTEREST RATES AS WELL…

As you are aware, home prices are continuing their upward trend with no realistic end in sight until there are more available homes for sale.  However, now there’s a wrinkle in the equation, and just in time for the “normally” busy spring buying season.

With mortgage interest rates rising their fastest in 35 years, and now at a more than 10-year high of over 5% as of last Thursday, this can increase a homeowner’s monthly borrowing costs by hundreds of dollars at a time when everything from gasoline to groceries are also increasing.

Most mortgage economists are saying that if this results in a decrease in buyer activity over the next few months, it will only moderately cool the market.  According to the National Association of Realtors (NAR), about 25% of existing homes bought in February nationwide were bought with cash.  And households that are moving from high-cost areas to more affordable ones might be less affected by rising mortgage rates.

According to a broker in Westminster, a suburb of Denver, “If half our buyers got priced out of the market, we would still have eight buyers for every listing”.  

A number of buyers are still actively looking and wanting to buy before interest rates rise any higher.  Lawrence Yun, chief economist of NAR recently said, “The early months of the rising rates don’t see much of a change in the buyer intensity, but inevitably there will be a reduction in the buyer pool”.  He said even as higher rates slow demand, it can take months for sellers to cut prices as their homes linger on the market.

I’ve been telling you for some time that if you’ve been sitting on the fence, NOW is the time to get the ball rolling.  If you are waiting for prices to drop you might be waiting a very long time.  And during that time, it’s likely that interest rates will continue to rise.  

Experts who have said that the days of 3% mortgage rates are gone are now beginning to wonder if possibly the days of 4% mortgage rates are a thing of the past as well.

The competition for available homes is still high and the equity in your present home is likely higher than you might know, but if you’ve even considered a move, now is the time to find out what your wants, needs and budget requirements dictate for your next home.

That’s where I can help.  Together we can develop a plan that could work for your individual family situation, but don’t wait too long.  The search isn’t getting much easier even with the higher interest rates and the competition for homes in the Colorado Springs area continues to heat up. 

My 50 years in the local arena give me a distinct advantage over many other brokers.  I’ve witnessed every cycle possible during that time and know the ins and outs of home buying and selling.  My background in Investment Banking, coupled with my expertise in negotiation, go to work in your favor.

Give me a call sooner than later at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s see how we can help make your Residential real estate dreams come true.

 

MARCH 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

These are usually published in the first eNewsletter of the month and were not available at press time two weeks ago, so I am including them here.

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 Up 1.2%

 

• Median Sales Price for All Properties was Up 15.6%

 

• Active Listings on All Properties were Up 0.9%

 

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:

          

 

MARCH 2022 PPAR STATISTICS LINK

Some readers had trouble opening the link in the last eNewsletter showing the full PPAR report for March 2022.  I’ve included it again here in case you missed it.  As stated:

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.

 

THE FUTURE OF HOME PRICE APPRECIATION AND WHAT IT MEANS TO YOU

KeepingCurrentMatters, 4.7.22

Some consumers are wondering how the recent run-up in home prices will affect them and if it will lead to a similar situation to the housing crash 15 years ago.

However, experts continue to say the market is totally different today—just as I’ve been telling you for the past couple of years. 

According to Odeta Kushi, Deputy Chief Economist at First American, “…we do need price appreciation to slow today (it is not sustainable over the long run), but high price growth today is supported by fundamentals—short supply, lower rates and demographic demand.  And we are in a much different and safer place:  better credit quality, low debt-to-income ratio, and tons of equity.  Hence, a crash in prices is very unlikely.”

To return to a more realistic market, appreciation does need to slow down.  In the latest Home Price Expectation Survey—a survey of a national panel of over 100 economists, real estate experts and investment and market strategists, it forecasts that home prices will continue appreciating over the next five years.  Here are the expected year-over-year rates of home price appreciation on the average of all 100+ projections (keep in mind that this is a national forecast, and as you’ve seen in my monthly reports, the Colorado Springs area has shown higher home appreciation than the national average):

 

• 2022: 9% (my personal forecast for the local market is estimated to be between 10-12% for 2022)

 

• 2023:  4.74%

 

• 2034:  3.67%

 

• 2025:  3.41%

 

• 2026:  3.57%

 

What does this mean for you as a buyer?  With limited homes available for sale and mortgage rates on the rise, it can still be a challenging market to navigate as a buyer.  But buying a new home sooner than later has its benefits—if you wait to buy, you’ll pay more in the future.  And if you buy now, you’ll actually be in the position to make future price increases work for you.  Once you own the home, the rising home prices will help you build equity, and by extension, your own household wealth will increase.

 

Here’s an example based on a home purchased in January of this year at $360,000 (the median price nationallyaccording to NAR, rounded up to the nearest $10k).  If you factor in the forecast for appreciation from the Home Price Expectation Survey, you could accumulate over $96,000 in household wealth over the next five years:  

 

(Once again, keep in mind this is a national average and the Colorado Springs area will be both higher in price as well as percentage of appreciation)

 

The key to trying to decide if now is the time to buy is knowing where home prices are heading.  With experts saying that prices will continue to climb in the years ahead, although at a more sustainable rate, if you’re ready to buy…NOW is the time.  ​​

 

April 6, 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.

 

“IT’S THE SIGN OF THE TIMES” ... AT LEAST FOR THE FORESEEABLE FUTURE

As many of you know, it’s still quite the “Seller’s Market” here in Colorado Springs and around most of the country.  

Rising homes prices, bidding wars, offers considerably over list price and all-cash offers with no contingencies are pretty much the norm now.

And, unfortunately, until there are more available homes for sale this is not going to change a lot.  However, we are starting to see an uptick in new home construction here and that will help the situation somewhat.  Unfortunately, building materials are still scarce and timelines for completion aren’t set in stone, so to speak.  

With interest rates on an upward trajectory, folks who have been sitting on the fence, or waiting to see if home prices would fall, are starting to see that there’s no time like the present to see what they might do to make a move that is right for them.

New listings, as you will see below, are up considerably from March, however, that doesn’t equate to more choices.  As soon as a home gets listed, there is often a line of potential buyers waiting to grab it, some even sight unseen.  

While the chart below shows 705 single-family/patio homes for sale, as of last Sunday there were actually only 458 available in El Paso County and 45 in Teller County!  And the City of Colorado Springs makes up 358 of those 458 homes available in El Paso County!  Not great numbers for certain.

Two things I’ve been saying for some time now are happening.  The mortgage rate increases are now happening.  But while they are higher than several months ago, they are still quite reasonable compared to the not-so-distant past and current equity in your present home will likely make little difference in your monthly output for a new home.  

And, as I have predicted, average home prices are lower than they have been, but at 14.1% for existing homes in March year-over-year, they are still trending toward my forecast of 10%-12% year-over-year by the end of 2022. 

It is actually good to see the average prices trending down a bit as it will make up for the higher mortgage interest rates, as well as make it easier for first-time home buyers to enter the market.

Rents are rising so fast all over the nation, and especially here at home, and that’s another factor driving the rush toward homeownership. 

Traditionally, April, May and June make up about 40% of the home sales annually, both nationally and locally.  However, as you might imagine, nothing is traditional at the present, and homes are going faster than I have ever seen.

That brings me to a very important consideration for those of you either buying or selling.  It is more important than ever to use a seasoned professional real estate broker like me in all your transactions.  In this highly competitive market, I’ve seen some agents make promises to potential clients simply to get a listing.  Not only is this ethically wrong, but it’s also not fair to the potential seller or buyer. 

While homes ARE selling for more than list price in many instances, it’s still wise when listing your home to know it’s true value.  That’s what comparables are for.  As well as good advice from your listing or selling broker.  Yes, if you are selling, it’s likely you will get more than you expect for your home, but first you need to get folks to come look at it.  If it’s listed too high, you’ve already eliminated some who might want to buy your home.  The bidding wars, etc. can come later, but it’s so important to list your home “right” to begin with.  

For those of you who are looking to buy, it’s important to really know your needs, wants and budget and not to get caught up in “winning” a bidding war for the sake of winning.  

I’ve been in the local Residential real estate area for 50 years this month and I’ve seen it all.  I not only know how to “price” a listing, but how to advice a client when they will “win” by walking away.  I’ve seen every cycle imaginable and my expertise in negotiation is especially needed at times like now.

Speaking of negotiation, I just completed another continuing education National Association of Realtors (NAR ) class entitled “real estate Negotiation Expert”, thus reaffirming my title of “Mr. Negotiator”!

If buying or selling is something you’ve even considered, there’s no time to wait.  Let’s get together and put your needs, wants and budget requirements together to find the home you desire for you and your family.

Please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make your residential real estate dreams a reality.

 

And now for statistics…

 

MARCH 2022

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

Here are some highlights from the March 2022 PPAR report:

In El Paso County, the average days on the market for single family/patio homes was a very low 11.  For condo/townhomes it was 14.  

Also in El Paso County, the sales price/list price for single family/patio homes was 104.1% and for condo/townhomes it was 102.9%. 

In Teller County, the average days on the market for single family/patio homes was 22 and the sales/list price was 100.9%.   For Teller County condo/townhomes the average days on the market was 14 and the sales to list price was 101.1%.

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

 

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

                        

                        Single Family/Patio Homes:

·       New Listings were 1,834, Up 13.2%

·       Number of Sales were 1,361 Up 1.4%

·       Average Sales Price was $539,684, Up 14.1%

·       Median Sales Price was $475,000, Up 15.9%

·       Total Active Listings are 705, Up 52.6%

·       Months Supply is 0.5, Up 37.2%

 

Condo/Townhomes:

·       New Listings were 234, Down 7.9% 

·       Number of Sales were 249, Up 18.6%

·       Average Sales Price was $381,852, Up 16.8%

·       Median Sales Price was $365,000, Up 20.4%

·       Total Active Listings are 74, Down 20.4%

·       Months Supply is 0.3, Down 1.1%

 

Normally I provide you with more neighborhood statistics here but they were not available at press time so I will put them in the mid-month eNewsletter.

 

WHAT’S UP WITH MORTGAGE RATES AND WHERE ARE THEY GOING?

KeepingCurrentMatters 3.30.22

Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year and the rate jumped more than a quarter of a point from just a week ago.  The graph below shows you how the mortgage rate movement was steady in 2021 compared to the rapid increase in rates this year:

 

 

Only a few months ago, Freddie Mac projected that mortgage rates would average 3.6% in 2022 and earlier this year Fannie Mae forecast mortgage rates would average 3.8% in 2022.  As you can see above, rates have already surpassed those projections.

 

Where are the Mortgage Rates Going from Here?

In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward:

 

Greg McBride, Chief Financial Analyst, Bankrate:

“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”

 

Nadia Evangelou, Sr. Economist and Director of Forecasting, NAR:

“While higher short-term rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation.  This, I expect the 30-year fixed mortgage to continue to rise, although we aren’t likely to see the big jumps that occurred over the past few weeks.”

 

Len Kiefer, Deputy Chief Economist, Freddie Mac:

“Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.”

 

Danielle Hale, Chief Economist, realtor.com:

“…As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months.”

 

What does this mean for potential buyers?

With both mortgage rates and home values expected to increase throughout the year, it would be wiser to buy sooner than later if you are able because it will cost you more the longer you wait.  

However, as I’ve been saying, there is a possible upside to buying now.  While you’ll likely be paying a higher price and a higher mortgage rate than you might have last year, rising prices have a long-term benefit once you buy.

Purchasing a home today at $400,000 with 10% down, you would be taking out a $360,000 mortgage. According to mortgagecalculator.net, at a 4.42% fixed-rate mortgage, your payment would be $1,807 a month (not including insurance, taxes and other fees that vary by location).

Let’s put that mortgage payment into a new perspective based on the substantial growth in equity that comes with the escalation in home prices.  Pulsenomics surveys a panel of over 100 economists, investment strategist and housing market analysts every quarter about their expectations for future home prices in the United States. Several weeks ago, Pulsenomics released their latest Home Price Expectation Survey which revealed that the average of the experts’ forecasts call for a 9% increase in home values in 2022.  (As I’ve been telling you, for Colorado Springs I predict an average of 10%-12% for 2022).

Based on the 9% projection, a $400,000 house you buy today (optimistic in the Springs!) could be valued at $436,000 by this time next year ($440,000 - $448,000 in the Springs).  Broken down, that means the equity in your home would increase by $3000+ a month over that period.  That is greater than the estimated monthly payment above.  

And while your net worth is tied to the home, it is still one way to put the home price appreciation to use in a way that benefits you and your family.

 

Bottom Line?

While paying a higher price coupled with a higher mortgage for a home can be hard to swallow, waiting will cost you even more.  

If YOU are ready, willing, and able, I’m equally ready, willing, and able to assist you in finding the situation that can work for you.

 

WHAT TO EXPECT FROM THE SPRING housing market?

KeepingCurrentMatters 3.24.22

While there are multiple factors causing some uncertainty, including the conflict overseas, rising inflation, and the first rate increase from the Federal Reserve in over three years—the housing market appears to be relatively immune.

Here’s what experts are saying:

 

1. Mortgage Rates Will Climb.  As I mentioned earlier, Freddie Mac has reported that the 30-year fixed mortgage has increased by more than a full point in the past six months.  And despite some mild fluctuation in recent weeks, experts believe rates will continue to edge up over the next 90 days.

 

2. Housing Inventory Will Increase. Realtor.com recently reported that the number of newly listed homes has grown for each of the last two months nationally and NAR announced that the months’ supply of inventory increased for the first time in eight months.  Since inventory of existing homes usually grows each spring, and based on recent activity, the next 90 days could bring more listings to the market, but the demand will still be great, and you will need to be prepared to make a decision quickly. And if you are thinking of selling, it would be wise to list your home sooner than later as your leverage in any negotiation will be impacted as additional homes come to the market.

 

3. Home Prices Will Rise.  Econ 101 again, folks. Prices are determined by supply and demand and even thought the number of homes entering the market is increasing, buyer demand remains and will continue to remain very strong.  In the realtor.com recent Housing Report:

“During the final two weeks of the month, more new sellers entered the market than during the same time last year…however, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”

 

4. Won’t Increasing Mortgage Rates Cause Home Prices to Fall?  While some may believe a 1% increase in mortgage rates will impact demand so dramatically that homes prices will have to fall, experts say otherwise.  According to Doug Duncan, Sr. Vice President and Chief Economist at Fannie Mae, “What I will caution against is making the inference that interest rates have a direct impact on house prices. That is not true.”

Freddie Mac studied the impact that mortgage rates increasing by at least 1% had on home prices in the past and here are the results of that study:

Bottom Line?  Once more with feeling, if you’ve even remotely considered a move, NOW is that time.  Waiting will hit you in the pocketbook.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 3.30.22 

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.

 

Also, be sure to mark your calendar for 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 will be available in June.

 

FEATURED LISTING:

YOURS, HERE?  IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.

March 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.

 

 

RESIDENTIAL real estate SALES AND PRICES CONTINUE THEIR STATUS QUO…

Good news for many, but not so good for others. 

As you will see in the following story, the average American homeowner gained more than $55,000 in equity over 2021.  While that is a mind-boggling figure for those of us who have been in the business for many, many years and great news for current homeowners, it’s concerning for first-time buyers and those who want to sell and trade up.

I’ve been writing about the low number of existing homes for sale over the last couple of years and not much has changed.  It’s still Econ 101—Supply and Demand.  When there are fewer homes for sale, the “Seller’s Market” means higher list prices with bidding wars and sales way over list price.  That in turn helps raise the equity in all homes since scarcity of anything means it will cost more to buy.

A good example is a home I sold this past week.  It was listed at $479,000 and went on MLS Friday morning.  After the first showing we had an excellent offer and by the end of the day, there were more.  More than half of the offers had escalation clauses which meant the buyer was willing to go $1000 or more over the highest bid up to a set amount, which in one case was $550,000!

Yes…you read that right...one of the offers was up to $71,000 over the list price of the home!  

That’s what I mean about crazy times in the Residential real estate market. With interest rates on the rise, folks who have been taking a wait and see attitude are now jumping in before rates and home prices get any higher.  That’s making for an even more competitive market, and buyers are having to come up with inventive ways to get the seller to even consider their offer.  I recently read in The Wall Street Journal about how home buyers are getting very creative in their offers.  One example referred to an offer made by a potential buyer to the seller for a 50% discount for a year at his Washington, D.C. restaurant.  Yes, creative incentives are the norm these days and the more creative the better.

With rental rates at an all-time high, home ownership is on the mind of many renters.  However, first-time buyers are having a tough time qualifying for these higher priced homes.  I’ve had several parents who have used the equity in their present home to help their children with down payments on first homes.

It’s also a great time to buy an investment property if that’s something you have considered.  It’s not for everyone, but if it’s something you’ve considered, talk to your tax and investment advisors and then give me a call.

Today’s market makes it more important than ever to work with a seasoned, knowledgeable real estate broker like me.  I’ve worked in the local Residential Real Estate arena for almost 50 years and have seen just about every cycle imaginable.  I know how to write an offer that gets attention and coupled with my expertise in negotiation, I can make the whole process smoother.  Another important factor is my relationship with other brokers, since most that have dealt with me in the past know when I present an offer it’s very likely to close. 

And for my sellers, I provide the ability to review offers and point out the pros and cons of each.  This could mean taking a little less but knowing that it’s an offer that will close.  

After all, offers are only offers until they close.  So, turning away good offers for one that might offer a little more cash could hurt in the long run if it’s not a viable offer that can make it to the closing table.

For those of you who have waited, wait no longer.  NOW is the time to make your move.  While there are not a lot of existing homes from which to choose, we can usually find one that can work for you.  New home construction is also an option and that’s an area where I can assist you as well, for no additional cost to you.  

But don’t delay.  If you’ve even considered a move, either to sell and trade up or move to a new neighborhood, the best move you can make now is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s figure out how we can make your Residential real estate dreams come true.

 

THE AVERAGE AMERICAN HOMEOWNER GAINED MORE THAN $55K IN EQUITY LAST YEAR

KeepingCurrentMatters, 3.21.22

As I just mentioned, home values are on the rise due to low supply and high demand.  Bidding wars are driving up prices and will continue to do so until there are more existing homes for sale.

According to Dr. Frank Nothaft, chief economist at CoreLogic, “Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest in its 45-year history, generating a big increase in home equity wealth”.

In the latest Home Equity Insights from Corelogic, it showed that the average homeowner’s equity has grown by $55,300 over the last 12 months.  As I’ve mentioned before, our local average price increases have been considerably over the U.S. average for some time now.

Below is a graphic showing what’s happening across the United States.  It measures gains year-over-year for the 4^thQuarter 2021.

 

What does this mean to you?  Well, if you are considering selling to trade up or move elsewhere, the equity in your present home will likely mean a larger down payment on your next home.  If you’ve worried about rising home prices, your current equity can likely go a long way to helping even things out.

If you want to know how much equity you have in your present home, give me a call and I can help you with that.  I believe you might be surprised what you can easily afford and keep your monthly output close to what you are currently paying.

 

WHAT YOU NEED TO KNOW IF YOU’RE THINKING ABOUT BUILDING A HOME

KeepingCurrentMatters, 3.23.22

With options for existing homes nothing like they once were, you might be considering new construction as an option. Homebuilders today are doing all they can to keep up with the demand, but they are currently facing obstacles outside of their control.

Supply chain issues are a big hurdle.  According to a recent article from HousingWire, “nearly everything needed in the homebuilding process is facing some sort of delay and subsequent price increase.”

And it’s not just lumber. Roofing materials, windows, garage doors, siding, and gypsum (which is used in drywall) are also affected.

When supplies are low, charges inevitably go up and a lack of availability is causing delays, meaning builders are struggling to stay on schedule.

Another challenge is the skilled labor shortage.  It’s nothing new since it’s been an issue for more than a decade now, but the good news is that a February jobs report shows employment in the construction industry is showing gains.  

How does this impact you?

When you weigh your options in trying to decide between buying an existing home or building a new one, factor the potential delay in the new home construction into your decision.  It doesn’t mean you shouldn’t consider new home construction, but it does mean you should consider your timeline and if you are willing to wait while your home is being constructed.

And once again, if new construction is in your plans, I’m your guy.  I can help with site and elevation selection as well as help in getting you the best mortgage to fit your needs.  This all comes as part of my special brand of customer service and at no additional cost to you.  So, if new home construction is in your plans, I’m only a phone call away.

 

WHAT ARE THE BENEFITS OF BUYING AND OWNING A RENTAL PROPERTY?

American Family Insurance, 3.8.22

Investment properties can be an appealing source of income, even to those who have never considered it before.  The benefits of investing in rental property can help you advance towards your long-term financial goals.

Buying an investment property is not a lot different from purchasing a single-family home for private use.  The process is very much the same, from making an offer to closing the deal.  real estate professionals such as me, work with investor buyers just as we do buyers for homes of their own.

Selecting the property is somewhat the same, as you will want to look at the property through a similar lens—seeking the perfect blend of affordability, financial opportunity, and potential resale value.

Fixer-uppers have great potential here in that rental properties that require a bit of an up-front investment are worth your consideration.  

As I’ve mentioned in the past, I’ve also had investors purchase newly constructed homes with the idea that there would be little, if any, required maintenance for many years and they could attract long term renters at a better monthly rental fee.

There are a number of benefits of investing in rental properties which include:

• Generating a monthly passive income stream
• Making the right purchase can increase your resale price
• Rental unit furniture, appliances and other items may qualify for a tax deduction
• Write off of your landlord insurance
• Through 2025, there is a special income tax deduction that affords business owners a deduction up to 20% of net rental income or 2.5 percent of the purchase price of the property and/or other expenses likes salaries for rental property employees.  Please check with your tax attorney or CPA for details.
• Renters pay down your principal

 

Now, the potential problems with owning a rental property:

• Troublesome tenants
• Lack of liquidity
• Maintenance Costs
• Insuring your investment

 

There are lots of things to take into account when considering becoming a landlord.  As I’ve said time and again, this is something you need to discuss with your tax and investment advisors.

The bottom line is that over the long haul, the appreciation of single-family homes has been greater than the growth of public stocks on the NYSE.  This is certainly something worth considering in your long-term financial goals.

I’ve been a landlord for many, many years and would be happy to share the upside as well as the downside with you.  Just give me a call and we can discuss.

 

PRICING YOUR HOME RIGHT IS CRITICAL

KeepingCurrentMatters,

The price you set for your house sends a message to potential buyers.  Price it too low and it might raise questions about the condition of the home.  Price it too high and you might deter potential buyers.

Even in a Seller’s Market, it’s crucial to send the right message to potential buyers.  You need top aim directly for the center…not too low and not too high:

Don’t try to figure this out by yourself.  When you’re ready to list your home, give me a call.  I can help you determine the correct listing price, based on actual facts and comparables.  That way you will be able to get the very best price possible for your present home.

March 9, 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.

 

ANOTHER MONTH AND MORE OF THE SAME…

What can I say?  The Residential real estate Market in Colorado Springs is hot, hot, hot.  And it would even be hotter if there were more existing homes for sale.  

Our average sales price for single family/patio homes was $514,757 in February!  That number is even astonishing to me, having worked in this arena for 50 years next month.  I can still remember average home prices in the $25,000 range.  Of course, I can also recall interest rates of 16% so while home prices have risen, interest rates have declined sharply, which has helped keep monthly payments more affordable than you might expect.

That’s why I tell my clients to look at their total monthly output rather than focusing on the higher prices of today.  The still historically low rates have made it easier on the pocketbook, but rates are beginning to rise and will do so slowly over the next year.  I don’t see them getting to 16% anytime soon, but they will be higher by year-end according to most economists.

With the traditional spring buying season just about here, it’s definitely time to consider your options if a move is even remotely in your future.  Homes sell faster than ever before and multiple offers and ones over list price have become the norm in recent times.  

Just this past week, a broker in our office listed a home for $425,000 and it had 24 offers! The accepted offer was far above list price.  Hard to imagine, but there are a lot of folks looking for homes and very few existing ones to choose from.  It’s most definitely still a Seller’s market and will continue that way until more homes come up for sale.  As you will see below, at the end of February there were only 487 active listings of single-family/townhomes in the Pikes Peak Area MLS and 63 condo/townhomes.  With so few homes available you can see why competition is so fierce.

There are a lot of things to consider if you are wanting to make a move.  To begin with, you will need to decide exactly what your needs, wants and budget considerations are upfront because when you find a home there is no time to delay in making your best offer.  And when I say best offer, I mean that.  Today’s market finds very creative offers that buyers are hoping will set them apart from the rest.  There is essentially no room for renegotiation and contingencies on the buying side.  

However, with U.S. home prices predicted to rise another 10% this year (and Colorado Springs area homes will likely rise conservatively 10 to 12%), there’s no time like the present to start your search.

I realize this sounds a bit crazy, but it’s today’s reality.  It is more important than ever to have a seasoned professional, well respected real estate broker such as me on your side because experience and negotiation expertise such as mine is more crucial than ever before.  Sellers are wanting their brokers to work with brokers on the buying side who they know can bring an offer to closing.  

Lately with the stock market in a slump, I’ve seen an uptick in those seeking homes for investment purposes.  Over the long haul, real estate has surpassed stock and bond returns and today even more so.  That, unfortunately, is adding to the housing shortage and hurting first-time buyers even more.

However, it’s not all dismal news.  I truly believe that, while it may take considerably longer than in the past, there is most definitely a home for everyone.  It may not be exactly what you want, but especially for first-time buyers, homeownership is a far better option than renting if possible.  Homes can be updated and renovated, and when the time is right, can likely be sold for a profit or used as a rental property when it’s time to move on or trade up.

There’s a lot to discuss if a move is a consideration and I’ve got the experience to guide you when you’re ready.  

So, if Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

FEBRUARY 2022

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

Here are some highlights from the February 2022 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a very low 10.  For condo/townhomes it was 11.  

Also in El Paso County, the sales price/list price for single family/patio homes was 103.0% and for condo/townhomes it was 103.1%. 

In Teller County, the average days on the market for single family/patio homes was 20 and the sales/list price was 101.6%. 

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 February 2022 to February 2021 for All Homes in PPAR:                     

                        Single Family/Patio Homes:

·       New Listings were 1,186, Down 12.1%

·       Number of Sales were 1,015, Up 3.5%

·       Average Sales Price was $514,757, Up 13.2%

·       Median Sales Price was $465,000, Up 15.4%

·       Total Active Listings are 487, Up 5.4%

·       Months Supply is 0.5, Up 1.6%

 

Condo/Townhomes:

·       New Listings were 199, Up 3.1% 

·       Number of Sales were 160, no change from last February

·       Average Sales Price was $353,683, Up 17.6%

·       Median Sales Price was $362,500, Up 22.9%

·       Total Active Listings are 63, Down 11.3%

·       Months Supply is 0.4, no change from last February

 

Now a look at more statistics…

 

FEBRUARY 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 Up 1.1%

 

• Median Sales Price for All Properties was Up 16.0%

 

• Active Listings on All Properties were Down 20.2%

 

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:

 

RENTAL PROPERTIES IN COLORADO SPRINGS SEE SIGNIFICANT SPIKE IN 2021

Colorado Springs Business Journal, 2.25-3.3.22

Rental rates in Colorado Springs have continued their upward climb according to rental listing site Dwellsy.    The Colorado Springs Metropolitan Statistical Area (MSA) shows a very significant 42.6 percent jump in median monthly rent prices from January to December 2021.

One of the driving factors is the demand for single or multi-family rental properties.  Median monthly rent prices for single-family properties rose 42 percent from January to December, reaching $2,300 per month, while rent prices for multi-family units alone went up by 21 percent to $1,325 per month, according to the Dwellsy analysts who separated the two categories.

RentPath reported an average rental listing price of $1,150 per month for one-bedroom units and $1,327 per month for two-bedroom units in December.

This illustrates the demand for and availability of homes for rent vs. apartments last year.  With more folks working from home, there is a greater demand for space, which often translates to a single-family rental.

The chart below illustrates the rental increases in Colorado Springs and other Colorado cities in 2021 vs the U.S. market as a whole:

 

 

As I have been telling you, investment properties have become a hot commodity as they represent not only extra monthly income, but home appreciation is significantly outperforming stocks and bonds at present and has done so consistently over the years.  

This is also just another reason contributing the housing shortage as properties bought for investment take homes away from those who are looking for homes to buy for themselves and their families.

If you are renting or know someone who is, now is the best time to start looking toward homeownership if possible.  Not only are you essentially investing in yourself rather than contributing to someone else’s income, you are building equity in your own home.

There are lots of possible ways to get into homeownership and/or investment property purchases.  If either of these are something you are now considering, please give me a call and let’s see how we can make it work for you.

 

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

ERAShields, 2.28.22

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

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

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 2.25.22.22

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 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 will be available in June.

 

 

FEATURED LISTING:

YOURS, HERE?  IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.

February 22, 2022   2.22.22 (in case you missed it!)

 

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.

 

QUESTIONS ASKED AND ANSWERED…

Today’s unprecedented Residential real estate market has brought with it many new questions.  In most cases they can be given old answers.  

My clients have been wondering how the home prices and mortgage rates are going to affect them.  They also wonder if this is a good time to sell and move up or purchase for investment purposes.  

As I’ve said time and again, the only right time to buy and sell is when it’s right for you.  Period.  Prices change all the time, as do mortgage rates.  It’s important to realize that when it’s the right time for you, we can find a way to work with your needs, wants and budget.

Just because median home prices are continuing to rise and mortgage rates are at their highest level in three years, it doesn’t mean you have to stay where you are if that’s not your desire.  Your current home is likely worth a lot more then you might imagine, and that equity will go a long way to keeping your monthly output lower than you might guess. It’s simply a matter of sitting down with me and figuring it all out.  

If you or a family member are currently renting, you already know that rents are at an all time high.  Most often these days it’s a lot less expensive to buy than to rent if possible, and the result will be equity building for you rather than for your landlord.  I tell folks they need to start somewhere and then move on from there.

As you might imagine, investment properties are another question.  And the answer again is, if it’s right for you, then it can be a great idea.  However, there are a number of considerations such as whether you want to be a landlord or want to pay a property manager to handle things for you.  It’s also important to check with your tax and investment counselors to make certain that purchasing an investment property fits into your long-term financial planning.  

If the answer is yes, then I’m most definitely your guy, as I own investment properties and have for most of my almost 50 years in the local Residential real estate arena.  I can give you the pros and cons from my personal experience and that type of information is invaluable.

One of the most asked questions these days is, “Are we facing a housing bubble?”.  And the answer to that is no.  Every housing economist has said that this current market is very different than it was during the housing crash 15 years ago.  

To begin with, in 2010 the U.S. Congress enacted the “Dodd-Frank Wall Street Reform and Consumer Protection Act”,a United States federal law that overhauled financial regulation in the aftermath of the Great Recession.  It made changes affecting all federal financial regulatory agencies and almost every part of the nation’s financial services industry.  

This Act created agencies to ensure that consumers were protected against abuses related to credit cards, mortgages, and other financial products.  The types of mortgage loans that helped contribute to the housing crash 15 years ago are no longer around and the definition of credit worthiness has changed substantially as well.

I have excerpted some thoughts and graphs from an article I read last week in Keeping Current Matters to illustrate this.  The article was written to address the fact that many recently surveyed consumers do believe that there’s a housing bubble beginning to form.  It’s a bit lengthy but a great answer to the question I’m so often asked these days. 

Here are four key reasons that explain why today is nothing like the last time:

 

Houses Are Not Unaffordable Like They Were During the Housing Boom.

There are three components to the affordability formula:  the price of the home, wages earned by the purchaser, and the mortgage rate available at the time.  Conventional lending standards say a purchaser should not spend more than 28% of their gross income on their mortgage payment.

Fifteen years ago, prices were high, wages were low and mortgage rates were over 6%.  Today, prices are still high.  Wages, however, have increased and the mortgage rate, even after the recent spike, is still well below 6%.  That means the average purchaser today pays less of their monthly income toward their mortgage payment than they did back then.  

According to the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta addressed that exact point:  

“The average wage earner can still afford the typical home across the U.S., but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward.”

Affordability is not as strong as it was last year, but it’s much better than it was during the boom.  Here’s a chart showing that difference:

 

 

Mortgage Standards Were Much More Relaxed During the Boom.

During the housing bubble it was much easier to get a mortgage than it is today.  For example, let’s review the number of mortgages granted to purchasers with credit scores under 620.  According to credit.org, a credit score between 550-619 is considered poor.  In defining scores below 620 they explain:

“Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk.”

Buyers can still qualify for a mortgage with a credit score that low, but they’re considered riskier borrowers.  Here’s a graph showing the mortgage volume issued to purchasers with a less than 620 credit score during the housing boom and the subsequent volume in the 14 years since:

 

Mortgage standards are nothing like they were last time.  Purchasers that acquired a mortgage over the last ten years are much more qualified.  (Thank you, Congress, for the Dodd Frank Act)

Here’s a look at what that means going forward.

 

The Foreclosure Situation Is Different Now.

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst.  The Federal Reserve issues a report showing the number of consumers with a new foreclosure notice.  Here are the numbers during the crash compared to today:

 

There’s no doubt the 2020 and 2021 numbers are impacted by the forbearance program created to help homeowners facing uncertainty during the pandemic.  However, there are fewer than 800,000 homeowners left in the program today, and most will be able to work out a repayment plan with their lenders.

Rick Sharga, executive vice president of RealtyTrac, explains: 

“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging.  It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect.”

Why so few foreclosures today?  Well, quite simply, homeowners are equity rich, not tapped out.

In the run-up to the housing bubble some homeowners were using their homes as a personal ATM machine.  Many withdrew their equity as it built up.  When home values began to fall, some found themselves in a negative equity situation.  Some of those households decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales) which sold at huge discounts, thus lowering the value of other homes in the area.

Today’s homeowners have learned their lessons.  Prices have risen considerably in the last few years, leading to over 40% of homes in the country having more than 50% equity.  But owners have not been tapping into it like last time, as evidenced by the fact that national tappable equity has increased to a record $9.9 trillion.  With the average home equity now at $300,000, what happened last time won’t happen today.

The latest Home Equity Insights report from Corelogic explains:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

There will be nowhere near the same number of foreclosures as we saw during the crash. 

What does this mean for the housing market?

 

We Don’t Have a Surplus of Homes on the Market—We Have a Shortage

The supply of inventory needed 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. 

As you will see in the following graph, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures) and that caused prices to tumble.  Today there is a shortage of inventory, which is causing the acceleration in home values to continue, and most especially here in Colorado Springs.

Inventory is nothing like last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a shortage of homes for sale.

A long answer to an often-asked question, but I think after reading this you might understand better why I say it’s always a good time to buy and sell if it’s the right time for YOU.  

Yes, there are not a lot of homes for sale at present, but there’s always a home somewhere for someone, even in new construction, and I can assist in helping make the whole process less of a burden than it has become in this market.  

Consider that U.S. homes sales jumped 6.7% in January despite the record-low inventory, as buyers rushed to purchase homes as the mortgage rates began to rise. The housing market remains extremely competitive and potential first-time buyers are now reluctant to wait as their leases are coming due.  

Folks don’t want to see the affordability factor go away and potential sellers are starting to consider all their options.

If you even considered a move or have a family member, coworker or friend considering the same, please give me a call sooner than later. My almost 50-year experience in the Colorado Springs housing market coupled with my investment banking background and expertise in negotiation gives me a heads up on most.  I can be reached at 719.593.1000 or by email at Harry@HarrySalzman.com. 

I look forward to talking with you soon.

 

COLORADO SPRINGS HOME PRICES CONTINUED TO SOAR IN 2021 AND CONTINUED TO SURPASS MUCH OF THE COUNTRY

The National Association of Realtors, 2.10.22

In the recently published report, 67% of the 183 Metropolitan Statistical Areas (MSAs) surveyed quarterly by the National Association of Realtors (NAR) reached double-digit median home price appreciation in the fourth quarter of 2021.  This is less than the 78% of the third quarter but still a significant figure. 

The median price nationally rose 14.6% quarter-over-quarter to $361,700.

Colorado Springs surpassed that, with the median price of single-family homes jumping 19.2% to $442,700 during the final quarter of the year.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 31^st highest of the cities surveyed.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver and Boulder areas, which makes our city more attractive to potential companies wanting to relocate.

To see all 183 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  

You can also click here to see, in alphabetical order, the change in median sales price of existing single-family homes over the past three years or click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

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

 

real estate IS VOTED “BEST INVESTMENT” EIGHT YEARS IN A ROW

Keeping Current Matters, 2.21.22

In a just released annual Gallup poll, Americans chose real estate as the best long-term investment.  This is nothing new, since it has topped the list for the past eight years, consistently gaining traction as the best long-term investment.

It’s also not the first time you’ve read this in one of my eNewsletters, as I have been saying this myself for way more than eight years.  And, as I mentioned earlier, I put my money where my mouth is, and residential real estate plays a major part in my own investment portfolio.

 

If you’ve even considered buying a home this year for yourself or for investment purposes, this poll should reassure you.  Even when inflation is rising like it is today, Americans agree that as an investment, real estate truly shines.

 

Why Is real estate a Great Investment During Times of High Inflation?

With inflation at its highest level since the1980’s, it is more important than ever to understand the financial benefits of homeownership.  

Rising inflation means that prices are increasing in all areas, including goods, services, housing costs and more.  

However, when you purchase a home, you lock in your monthly principle and interest payments, effectively shielding yourself from increasing housing payments. Property taxes will rise, and you may incur other expenses, but a fixed-rate mortgage allows the biggest portion of monthly housing expenses to remain the same.

For renters, there is no protection against increases in housing costs, especially with rising rental prices.  

 

History Shows During Inflationary Periods, Home Prices Rise as Well

As a homeowner, your house is an asset that typically increases in value over time, even during inflation.  That’s because, as prices rise, the value of your home does as well.  Therefore, buying a home is a great hedge during periods of inflation.

According to Natalie Campisi, Advisor Staff for Forbes, “Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times”.

 

Bottom Line?

Once more, with feeling…if you’ve even thought about buying a home for personal or investment reasons, there’s no time like NOW.  Let’s get together and see how we can help increase your personal assets while better hedging against inflation.

 

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

ERAShields, 1.31.22

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.  

 

February 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.

 

AND SO IT GOES…

As we wave goodbye to January 2022, with it we begin our goodbye to the historically low interest rates of recent times.  While today’s rates are certainly much lower than the 12-15% APRs of the 1980’s, they are inching up and each increase has the possibility of increasing the monthly output for mortgage loans.

The good news is that while home appreciation is still high, it is finally starting to normalize a bit, and should be right around the 12-14% increase I have predicted for 2022.  

Let’s talk for a minute how this can affect you.  For those looking to sell, either to trade up or move to a new neighborhood or another state to be closer to family, the equity in your present home is likely higher than you might think.  This is going to give you a greater down payment, so despite the rising mortgage rates and the higher price you will pay for your next home, it’s possible you can keep your monthly payment close to what you currently pay.

I’ve been getting calls from folks who are worried they have missed out on the recent boom, but I have assured them, and can assure you, that the time to buy or sell a home is when YOU are ready.  Is the present time good for buying and selling?  You bet it is.  But, if it’s not right for YOU, then it’s not a good time.  

If you’ve been thinking of a move, the best thing you can do is meet with a seasoned real estate professional like me to discuss all the issues involved so that when you decide it’s right, then you can pounce.  

Today’s market is unlike any I’ve seen in my almost 50 years in the local Residential real estate arena, and it takes a lot of planning, perseverance, and professional help to guide you in the right direction.  Those “Three P’s”, along with my superb negotiation skills, make all the difference to a successful and hopefully less stressful moving experience.

As I mentioned in the last eNewsletter, Colorado Springs has a record low number of existing homes for sale, thus continuing the Seller’s Market that we’ve been experiencing for quite some time now.  There are a number of reasons for this, among them the new wants and needs made evident from the pandemic and work-from-home status of many.  The low interest rates have given renters an impetus to move to homeownership, and Colorado Springs is seeing new businesses relocating here and with them come employees looking for a place to live.  When you add them up, bingo—not a lot of homes left for sale.

New home construction is ramping up as fast as possible but shortages of materials such as lumber, concrete, aluminum, and more are not only holding up building, but adding to the cost of these homes as well.  

I even have investor clients who have gone the new construction route as it has provided them with the opportunity for longer term renters and less home repairs than that of older homes.  

If new construction is something you have considered, I’m your guy for that as well.  I have l long time working relationships with a number of local builders and I can help you with site and home selection as well as assist you in securing the best mortgage for your individual situation.  Did I mention this comes at no additional cost to you?  It’s certainly an offer you won’t want to pass on if new construction is in your future.

As most of you know, I’ve been a relocation specialist for many, many years and while I have a number of clients who move for career purposes, I’ve recently had some moving to be closer to family or to a warmer climate as they retire.  I have a network of realtors that I’ve known for years who I can refer to you if moving out of state is in your future. That helps take off some pressure when you get ready to make that move.

The gist of this column is…. I know how things can get a bit overwhelming in the current residential real estate market and that’s why you have me.  I’ve seen it all and can help you navigate the current buying and selling wars.  That’s my commitment to each and every client.  Your goals are mine and I take that personally.  It’s one of the reasons I’m still here enjoying the challenge, and why I am so fortunate to find myself working with children and grandchildren of past and present clients.  

If Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

JANUARY 2022

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

Here are some highlights from the January 2022 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 14.  For condo/townhomes it was 17.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.6% and for condo/townhomes it was also 101.1%.  

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

 

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

                        Single Family/Patio Homes:

·       New Listings were 1,180, Up 6.1%

·       Number of Sales were 1,058 Up 9.0%

·       Average Sales Price was $494,954, Up 14.2%

·       Median Sales Price was $445,000, Up 15.6%

·       Total Active Listings are 549, Up 19.3%

·       Months Supply is 0.5, Up 2.2%

 

Condo/Townhomes:

·       New Listings were 205, Up 28.1% 

·       Number of Sales were 158, Up 1.9%

·       Average Sales Price was $342,524, Up 19.9%

·       Median Sales Price was $345,000, Up 23.5%

·       Total Active Listings are 79, Up 23.4%

·       Months Supply is 0.5, Down 12.1%

 

Now a look at more statistics…

 

JANUARY 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 Up 4.9%

 

• Median Sales Price for All Properties was Up 17.6%

 

• Active Listings on All Properties were Down 12.7%

 

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

 

CONGRATS TO ME…

As we went to press, I received notification from ERA real estate that I have again qualified for “Circle of Achievement” recognition, a top honor at our national company.  Just another notch in my almost 50-year-old belt of real estate accolades, but I never take any of them for granted. 

I don’t work for the rewards…I work for YOU, but I will admit that it is nice to be recognized from time to time.  

When you see the banner below you will know what it stands for:

 

 

WHY NOW IS A ONCE-IN-A-LIFETIME OPPORTUNITY FOR SELLERS

KeepingCurrentMatters, 1.27.22

If you’ve considered selling your home this year, you truly have a once-in-a-lifetime opportunity.  Whenever you chose to sell anything, you always hope for strong demand coupled with a limited supply to get your maximum leverage when negotiating the sale.

Home sellers are in the position at this very moment and here’s why:

 

Demand Is Very Strong

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021.  This was the largest number of home sales in 15 years. Lawrence Yun, chief economist for NAR explains:

“Sales for the entire year finished strong, reaching the highest annual level since 2006…With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers were intent on avoiding the inevitable rate increases.”

Demand isn’t expected to weaken this year, either.  As a matter of fact, the Mortgage Finance Forecast, published several weeks ago by the Mortgage Bankers Association (MBA) calls for existing-home sales to reach 6.4 million homes this year.

 

Supply Is Very Limited

In the same report from NAR, it reveals that that months’ supply of inventory just hit the lowest number of the century.  It states:

“Total housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million).  Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.”

In reality, inventory normally decreases every December due to seasonal trends.  However, the following graph emphasizes how this past December was lower than any other December going all the way back to 1999.

 

 

Right Now, Sellers Have Maximum Leverage

As I said before, when considering any type of sale, when there’s a strong demand and a limited supply, the seller has the maximum leverage in the negotiation.  

For homeowners who are thinking about selling, there may never be a better time than right now.  With demand this high and inventory this low, you’ll have leverage in all aspects of the sale of your house.

Today’s buyers are aware they need to be flexible negotiators who make very competitive first offers, so here are a few areas that could tip in your favor when your house goes on the market:

• Competitive sales price
• Flexible closing date
• Potential for a leaseback to all allow you more time to find a home
• Minimal offer contingencies

Bottom Line

If you’re even thinking of selling your home, contact me sooner than later and let’s discuss how you can maximize the potential available in today’s market.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 1.31.22

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.