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HARRY'S BI-WEEKLY UPDATE 7.27.22

by Harry Salzman

July 27, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

LOTS OF QUESTIONS…STILL THE SAME ANSWERS…

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

  • Is it a good time to buy? 

 

  • Is it a good time to sell? 

 

  • What about the rising interest rates?

  

  • Are home prices going to continue to rise?

  

  • How will this affect my personal situation?

 

  • And that’s only a few of them

 

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

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

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

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

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

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

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

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

 

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

The Wall Street Journal, 7.26.22

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

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

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

Those two areas comprise eight key indicators:

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

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

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

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

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

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

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

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

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

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

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There you have it.  

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

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

 

RENT VS. BUYING?  AN INFOGRAPHIC

KeepingCurrentMatters, 7.15.22

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HARRY'S BI-WEEKLY UPDATE 7.7.2022

by Harry Salzman

July 7, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

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

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

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

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

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

This chart below illustrates the survey findings:

 

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

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

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

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

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

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

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

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

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

 

And now for statistics…

 

JUNE 2022

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

Here are some highlights from the June 2022 PPAR report.

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

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

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

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

 

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

             

                        Single Family/Patio Homes:

·       New Listings were 2,350, Up 25.3%

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

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

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

·       Total Active Listings are 2,125 Up 265.1%

·       Months Supply is 1.2, Up 25.5%

 

Condo/Townhomes:

·       New Listings were 302, Up 46.6% 

·       Number of Sales were 218, Down 0.9%

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

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

·       Total Active Listings are 200, Up 181.7%

·       Months Supply is 0.9, Down 199.9%

 

Now a look at more statistics…

 

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

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

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

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

 

  • Sold Listings for All Properties were Down 7.5%

 

  • Median Sales Price for All Properties was Up 10.3%

 

  • Active Listings on All Properties were Up 100.9%

 

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

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

The Close, 6.13.22

 

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

 

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

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

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

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

                        

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

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

 

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

 

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

 

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

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

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

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

 

THE TIGHT housing market IS IGNITING HOT BIDDING WARS FOR RENTALS

The Wall Street Journal, 6.28.22

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

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

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

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

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

 

MORTGAGE RATES DROP AFTER THREE WEEKS OF INCREASES

The Wall Street Journal 6.30.22

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

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

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

 

AND JUST A REMINDER:

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HARRY’S THOUGHTS OF THE DAY:

 

Speaking of Appreciation…

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HARRY'S BI-WEEKLY UPDATE 7.1.2022

by Harry Salzman

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 4th holiday and you will hear from me again next week with my regularly scheduled post.

 

 

HARRY'S BI-WEEKLY UPDATE 6.10.22

by Harry Salzman

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.

 

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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 50th 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:

 

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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:

 

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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. 

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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.

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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.

HARRY'S BI-WEEKLY UPDATE 5.25.22

by Harry Salzman

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.

 

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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 6th 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.  

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HARRY'S BI-WEEKLY UPDATE 5.9.2022

by Harry Salzman

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.

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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:

 

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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 32nd 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:

 

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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.

 

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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.

HARRY'S BI-WEEKLY UPDATE 4.19.22

by Harry Salzman

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:

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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)

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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.  â€‹â€‹

 

HARRY'S BI-WEEKLY UPDATE 4.6.22

by Harry Salzman

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.

 

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“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:

 

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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.

 

  1. 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.

 

  1. 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.”

 

  1. 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:

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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.

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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.

HARRY'S BI-WEEKLY UPDATE 3.24.22

by Harry Salzman

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.

 

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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 4thQuarter 2021.

 

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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:

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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.

HARRY'S BI-WEEKLY UPDATE 3.9.22

by Harry Salzman

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.

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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:

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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:

 

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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.  

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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.

 

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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.

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Harry A Salzman
ERA Shields / Salzman Real Estate Services
6385 Corporate Drive, Suite 301
Colorado Springs CO 80919
719-593-1000
Cell: 719-231-1285
Fax: 719-548-9357

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