Real Estate Information Archive

November 4, 2021

 

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.

 

 

I HAD INTENDED TO INCLUDE THIS WITH MY “JOKES OF THE DAY” BUT…

…unfortunately this crazy Residential real estate market is in no way a joke.  Every time I think we have reached our “new normal” it keeps changing.

I was hoping that when we started to have a few more existing homes for sale that most of those bidding wars and winning bids over list price would settle down a bit.  But I was wrong.  Let me give you a recent example.

Last Thursday I listed a home for $540,000.  When the showings began that day, I received a call from a broker who wanted to make an offer, sight unseen, for their buyer.  I let that broker know that the seller was not going to accept any offer immediately.  He said that was fine and that his buyer would put in a purchase price increase clause that would allow his bid to go $3,000 higher than the highest bid--to a high of $605,000.

As the day progressed and showings began, we received a number of offers.  And then the bidding war began.  Since the first offer had indicated they were willing to bid $3,000 over the highest bid, that offer was accepted on that same day one!  Selling price?  $598,000. 

Yes, you read that right.  The home sold for $58,000 more than the asking price in one day—that’s 10% OVER the listing price.  And the best news for my seller was that the buyer was putting down more than 50% cash, thus negating the need for an appraisal which possibly could have come in at under the selling price!

And the moral of this story?  

If you’ve even considered the possibility of selling to trade up or move to a new neighborhood, NOW is the time for more reasons than the above.

Mortgage interest rates which have been staying at historical lows are projected to rise.  I can’t tell you when that might happen, but most economists are saying the rates can’t stay this low.  

Home prices are continuing to rise which means two things if you are looking to move.  First of all, your present home is more than likely worth more than you might imagine, thus providing you extra equity to put into your next one.  

Therefore, even though your next home will also likely cost more, the size of your down payment could possibly help keep your monthly output close or not too much more than what it is currently.

The downside at the moment is still the shortage of existing homes for sale.  So you really do need to know where you intend to move prior to listing your present home.  It’s possible to request to lease your home back from the buyer for a certain period of time, but that is not always an option.

I wish I could tell you that new home construction is the answer and in a number of cases it is, but I’ve lately seen the implementation of “lotteries” in order to deal with only so many available lots and oh, so many potential buyers.  

Homebuilders are working as fast as they can to rectify this, but at the moment it’s a bit hard to navigate through those “wars” as well.  And if new home construction is what you are seeking, I can help you there as well, without any additional cost to you.

The one bright side in all of this?

Me, of course.  

With my 48+ years in the local Residential real estate arena, coupled with my Investment Banking background, I’ve experienced a lot and can help make the buying and selling process a bit less painful, if possible.  I used to say I could make it fairly “stressless”, but unfortunately that’s not the case at present.  I continue, however, to do my best to make purchasing what is often your most valuable investment as pleasant an experience as I am able.  

So, if you’re ready…I’m willing and able to help you make your Residential real estate dreams come true.

The very best move you can make right now is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  

I look forward to speaking with you.

 

OCTOBER 2021

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

Here are some highlights from the October 2021 PPAR report.  The format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 11.  For condo/townhomes it was 8.  

Also in El Paso County, the sales price/list price for single family/patio homes was 102.0% and for condo/townhomes it was 101.9%.  

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

 

In comparing October 2021 to October 2020 for All Homes in PPAR:

 

                        Single Family/Patio Homes:

·       New Listings were 1,596, Up 2.4%

·       Number of Sales were 1,641, Down 5.3%

·       Average Sales Price was $510,180, Up 18.0%

·       Median Sales Price was $446,000, Up 16.3%

·       Total Active Listings are 1,048, Up 19.0%

·       Months Supply is 0.6, Down 3.6%

 

Condo/Townhomes:

·       New Listings were 248, Up 7.8% 

·       Number of Sales were 250, Down 3.8%

·       Average Sales Price was $326,622, Up 18.3%

·       Median Sales Price was $326,272, Up 24.5%

·       Total Active Listings are 129, Up 27.7%

·       Months Supply is 0.5, Down 7.2%

 

Now a look at more statistics…

 

OCTOBER 2021 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 7.0%

 

• Median Sales Price for All Properties was Up 16.8%

 

• Active Listings on All Properties were Down 9.1%

 

You can click here to read the 15-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update.  I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area in general:

 

NATIONAL housing market PREDICTIONS FOR 2021 & 2022 

Keeping Current Matters, 10.26.21

Despite all the ups and downs this past year, one thing we know for sure is that the real estate market in 2021 not only met expert predictions, it surpassed them and broke records along the way.

That, of course, brings up the future.  Will the 2022 housing market continue to follow that same trajectory, or are we facing a possible downturn?

The following is a deep dive into what leading real estate experts are projecting for the final quarter of 2021 and what to expect in 2022 so you, as a potential buyer and/or seller have the knowledge and confidence you need to be successful.

As always, please remember that these predictions are generalized on the national level, and when I write about trends it is more localized.  For example, when you read about unemployment further down, remember that Colorado Springs was not hit nearly as hard as a lot of the country, and we have rebounded at a faster pace.  Our home prices have risen at a pace higher than much of the USA and due to the desirability of working and living here, we will undoubtedly continue to outpace a good portion of the country in the coming year and more.

 

housing market FORCAST:

 

• Interest rates are rising but projected to stay low.  This is good news because affordability reached one of the highest levels in 30 years due to the low rates.  And as I mentioned earlier, although prices continue to rise, homes are still affordable to purchase, although slightly less so than earlier this year.

 

• Home sales are slowing but still strong.  While the last two years have been some of the craziest I’ve seen during my 48+ years in the business and home sales are slightly slowing, that definitely doesn’t mean the market is slow.  It’s simply returning to a more balanced one than we have been witnessing these last few years.

 

• Home prices are appreciating slower too.  The constant battle between high buyer demand and low inventory this year led to a surge in home values that left a number of folks scared we were headed for another housing bubble.  And while this year’s price escalation has been a bit excessive, it was just a result of Econ 101—high buyer demand coupled with extremely low supply.  As inventory starts to rise, experts anticipate price appreciate will slow.

• Foreclosures will happen—but won’t lead to price declines.  The massive wave of unemployment caused by the pandemic led many homeowners across the country to enter mortgage forbearance.  While unemployment is slowly but surely declining ahead of expectations, it will be awhile for much of the country to reach the pre-COVID levels.  This will cause foreclosures to rise.  Experts don’t anticipate this will lead to anything resembling the foreclosure crisis of 2008 and they don’t expect it to lead to the major home value depreciation that followed.  (remember that I’m reporting “national” news and that Colorado unemployment rate is again quite low).

​

IS THE housing market GOING TO CRASH BEFORE 2021 ENDS?

 

The answer, according to top real estate experts, is a big NO.  While memories of the housing crash of 2008 still linger on the minds of many buyers and sellers, today’s market conditions resemble nothing close to what caused it.

Home price appreciation may be high but again, it’s a result of supply and demand.  The foreclosure situation should be balanced out by the large amount of equity homeowners currently have which means they can choose to sell rather than foreclose.

Plus, while affordability may be decreasing, historically speaking it’s still high compared to most other years.

 

WHAT DOES THIS MEAN FOR BUYERS AND SELLERS FOR THE REST OF 2021?

 

There is still a lot of motivation for both buyers and sellers in today’s market and that’s not expected to change in the next couple of months.  

With both inventory and mortgage rates remaining low, both sides of the real estate transaction stand to benefit from making a move before the end of the year.

real estate is still strong and waiting until next year could mean losing out on a less competitive market and better affordability—the two big factors positively impacting buyers and sellers today.

 

2022 housing market PREDICTIONS

 

Here’s what industry experts are saying about what they anticipate for the 2022 housing market:

 

HOME PRICES

 

It is important to remember again that the 2021 market was anything but normal, and that escalating home values were a direct result of the record-low inventory.  Experts predict that the inventory situation should improve in the coming year, stabilizing price appreciation across the nation.

But will home prices depreciate in 2022?  More than 100 industry experts don’t think so.  Instead, they are projecting a more modest appreciation of 5.82% nationally in the next 12 months compared to the 11.74% rise seen nationally on average in 2021. 

 

MORTGAGE RATES

 

In case I haven’t mentioned it enough, the past year saw the lowest mortgage rates in the history of real estate.  So, if you are waiting for those rates to come back down or go down more, you may be waiting a very long time.

While homes right now may be less affordable than they were a year ago, they’re still extremely affordable.  

If you look at the 30-year mortgage rate chronicled by Freddie Mac, you can see the average rates by decade:

 

• 1970’s:  8.86%
• 1980’s:  12.7%
• 1990’s:  8.12%
• 2000’s:  6.29%
• 2010’s:  4.09%

 

While experts don’t project that mortgage rates will rise a huge amount, any increase would mean an increase in monthly mortgage payments.  A couple of decimal points may not seem like a lot to most, but it could make or break a buyer’s budget.

If you play the waiting game, a rise in mortgage rates coupled with the continued home price appreciation means just one thing—paying more for the same house you could buy now. 

 

HOUSING INVENTORY

 

Inventory has been the biggest player in the anything but ordinary real estate market of the past two years.  

With the bidding wars and such going on you might be wondering if housing inventory will increase in 2022.  The good news is that there are many factors that lead industry experts to anticipate a rise in homes for sale.

Here’s why:

 

• Homeowners may be more confident putting their homes on the market as COVID numbers continue to drop and more people become vaccinated.

 

• Many of the obstacles halting or slowing new construction start to fade and those homes come on the market, adding new inventory and meeting the needs of population growth.

 

• As forbearance comes to a close, experts predict a wave of new homes coming on the market.  However, they don’t anticipate the majority of those to be foreclosures.  Instead, because of built-up equity, homeowners in this position will have the opportunity to sell instead.

 

BOTTOM LINE

If I’ve taught you anything in these eNewsletters it should be that while the future can be projected, it can’t be predicted.

While industry experts don’t expect the 2022 housing market to be as crazy as 2020 or 2021, it’s important to keep reading my eNewsletters to get current information on our local residential real estate status.

Better yet, give me a call and we can discuss your individual situation and how to best take advantage of making your wants, needs and budgetary requirements get you into the home of your dreams.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 10.28.21

As always, I’ve included 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 levels.  

I’ve reproduced just one of the charts below.  You can click here to read the entire report and if you have any questions, please give me a call.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 26, 2021

 

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.

 

 

 

IF A PICTURE IS WORTH 1,000 WORDS…. THE ONE ABOVE COULD MEAN HUNDREDS OF THOUSANDS (OF DOLLARS) TO YOU…

Home sales are picking up again and for many good reasons.  Interest rates have remained historically low, but the recent talk of possible increases, along with more available homes for sale, has been good incentive for some of my clients to sit down and discuss whether now is the time for action.

As I’ve said forever, I can’t begin to predict which way rates will go.  But I can tell you that these very low ones won’t be around forever.  The Fed has been discussing inflation and what can be done to curb it so today’s low interest rates could be a thing of the past sooner than later.  And with more and more folks choosing to work from home (WFH), their wants and needs are far different than prior to the pandemic.

Colorado Springs is also seeing quite a resurgence as a place that young professionals want to work and live due to our fabulous work/life balance and new companies are relocating here as well.  Downtown has “come back” and then some, with the addition of museums such as the U.S. Olympic and Paralympic Museum and various sports venues, as well as new restaurants, shops, apartments, and other living spaces.

We’re starting to feel like a “big” city, while fortunately retaining many of the things that may us proud and happy to call Colorado Springs our hometown.  I won’t talk about traffic since my friends who live elsewhere think we don’t have any, but…if you’ve lived here for any length of time you know what I mean.  

Amazon recently opened their largest distribution center in the four surrounding states near our airport and many of those employees (the non-robotic ones!) are looking for homes.  So are the ones choosing to relocate here with their companies.  Having more homes available for sale has been a blessing for those folks and as new homebuilding continues to ramp up, this has been the choice for many of them as well.

In fact, I’ve helped some relocatees purchase new home construction, often without them seeing a model home in person.  Lot and home elevation selections have been completed via video and I’ve been their “eyes” in making certain that the builders follow through with all the particulars.  My long-standing relationship with many local builders has made that process easier for my clients and this is a service I provide at no additional cost to the buyer.  

I’m starting to find myself as busy as ever, and if there were more existing homes for sale, I’d be even busier.  When homes get listed, my clients are ready to pounce, but unfortunately so are a number of other potential buyers.

This leads me to tell you that even though there are more homes for sale at present, we are still seeing multiple offers, many over listing price, and quick turnarounds.  Bidding wars apparently are here to stay for a while, so it’s as important as ever to know what you want, need, and can afford PRIOR to the search.  Once you find the home you want there is little time to “think it over”.  

If you’ve even considered a new home or neighborhood, let’s talk and see how together we can make your present home help you work toward that goal.  There’s no better time than now to make all your Residential real estate dreams come true.

And…the best move you can make at present is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get the ball rolling.  

I look forward to speaking with you.

 

HOME SALES AND PRICES JUMPED IN SEPTEMBER

The Wall Street Journal, 10.22.21

As depicted in the illustration above, U.S. home sales surged last month with their strongest showing since January, ending a months-long stretch when housing market activity slowed from its frenzied pace and high prices put the brakes on a number of buyers.

The dip in mortgage rates and activity at the high end of the market helped existing-home sales rise 7% in September nationally from the prior month to a seasonally adjusted annual rate of 6.29 million, according to the National Association of Realtors (NAR).  

While demand from buyers has exceeded supply for more than a year, economists said that last month was still a standout.

“This autumn season looks to be one of the best autumn home-sale seasons in 15 years,” said Lawrence Yun, NAR’s chief economist. 

And though prices remain near record highs, the pace of price growth is slowing, which will allow for a more “normal” appreciation.  

Again, what all this means is that NOW is the time to get off the fence if you’ve even considered a move.  The sooner you begin, the sooner you will be in a new home.  Don’t delay, call me today.  If there’s a way to get you where you want to be, I’m the guy who can get you there.

 

SALES TAX COLLECTIONS IN COLORADO SPRINGS JUMP

The Gazette, 10.23.21

Colorado Springs is continuing a robust recovery 1 ½ years after the onset of the COVID-19 pandemic.  The city saw another double-digit percentage gain in sales tax collections last month, a good sign for the Pike’s Peak region’s economy.

It’s evident that folks are busy spending on things such as cars, appliances, TVs, apparel and building materials, among other items—and the 2% sales tax levied on such generated nearly $19 million in revenue in September according to a report released last Friday by the Colorado Springs Finance Department.

That’s 22% higher than the same month a year ago and continues the double digit increases that began in March.

According to Tatiana Bailey, director of the University of Colorado at Colorado Springs Economic Forum, “It’s an overall indicator of continued economic growth.  We’ve regained all of our jobs in the region.  It’s all good news and great news for the mayor’s office and having the tax revenues we need.”

Since Colorado Springs’ sale tax is a critical revenue source and closely watched by city officials and local economists because it funds more than half of the Springs’ annual general fund budget, this is exceptionally good news all around.

Bravo to all of us for helping to boost the local economy.

 

ERA SHIELDS QUARTERLY “STAT PACK”

I want to share with you the quarterly “Residential Review” for El Paso County that is compiled by my company. The data provided is through the Third Quarter, 2021.   You can click here to read the report, along with charts, in its entirety.

The graph below compares the number of homes on the market (active) to the number of homes sold.  It determines how many months it would take to sell through the current listing inventory.  Most economists consider 6.0 months to be a “balanced” market:

 

 

 

And some quick facts you might find interesting:

 

• New Listings Input for the Quarter were up 472 units from 2020 (9%)

 

• Sales for the Quarter were down 7% (4490 vs 4854)

 

• Median Price for the Quarter is up to $445,667 (16%)

 

• Average Price for the Quarter went up to $500,433 (16%)

 

• Just 4% of sales in the Quarter were under $300k (in 2020 it was 15%, 2019 it was 37%)

 

• 50 homes sold for $1 million+ during the Quarter (21 sold during the same period last year)

 

• Single-Family building permits this year are up 356 units (9%)

 

• 30-year Fixed-Rate Mortgages are right at 3%

 

SHOULD YOU RENOVATE OR MOVE…THE BIG QUESTION

Keeping Current Matters, 10.13.21

 

As I’ve been mentioning a lot, the last 18 months have changed what many buyers are looking for in a home.  The American Institute of Architects recently released their AIA Home Design Trends 66667uSurvey, and it reveals the following:

 

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% or respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

 

If you are like any of these respondents and want to add any of the above, you have two options:  renovate your current home or buy a home that already has the spaces you desire.  The decision you make could be determined by factors such as:

 

1. A possible desire to relocate

 

2. The difference in the cost of a renovation versus a purchase

 

3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

 

In either case you will need access to the funds for either a renovation or the down payment your next home would require.  The great news is that the money you need probably already exists in the equity of your current home.

 

Home equity is skyrocketing due to the record-setting increases in home prices over the past two years.  The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:

 

 

The money you need to purchase the perfect home or renovate your current house may be right at your fingertips.  However, waiting to make your decision may increase the cost of tapping that equity.

 

If you decide to renovate, you’ll need to refinance or take out an equity loan to access the equity.  If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between your down payment and the cost of your new home.

 

Mortgage rates are forecast to increase over the next year, so waiting to leverage your equity will probably mean you’ll pay more to do so.  According to the latest data from the Federal Housing Finance Agency (FIFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below.  If you are one of those homeowners, you can keep your mortgage under 4% by doing it now.  If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

 

First Step:  Determine the Amount of Equity in Your Home

 

If you’re ready to either redesign your current home or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home.  To do that, you’ll need two things:

 

1. The current mortgage balance on your home

 

2. The current value of your home

 

You can more than likely find the mortgage balance on your monthly mortgage statement.  To discover the current market value of your house you can pay several hundred dollars for an appraisal, or you can contact me, and I will be able to give you a professional equity assessment report at no cost to you.

 

Bottom Line?  If you are one of the many who have refocused your thoughts on what you want from your home over the past 18 months, now may be the very best time to either renovate or make a move to the perfect home.

 

Any Questions?  Contact me and I will more than happy to give you answers.  And if I don’t have the answers, you can be sure I know how and where to get them for you.

 

HARRY’S HALLOWEEN JOKES OF THE DAY:  

 

 

 

 

 

 

 

October 7, 2021

 

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.

 

 

NOW THAT I’VE GOT YOUR ATTENTION…REPEAT AFTER ME…IT’S STILL A SELLERS’ MARKET

Things haven’t changed much in the last month which is continuing to make it difficult for those wanting to sell and trade up, relocate to another area, or purchase a home for the first time.

The infographic above is based on national figures and our local numbers are even better than those depicted, as you will see in the August statistics below.

It’s difficult for anyone to predict what will happen to interest rates with all the political discourse currently taking place and a number of buyers are rushing to take advantage of the current rates before they are gone.  

Supplies are still going for a premium if they are even available and that’s another problem both homebuilders and home renovators are facing.  

If this all sounds a bit pessimistic for a perennial optimist like me, well, not to worry.  I just want to tell it to you straight.  However, as you already know by now, I can always find a way around most obstacles. And when you’ve got me in your corner, the battle is half won before you even begin.

That’s not to say it’s easy when it comes to buying a home today, but after 48 plus years in local Residential real estate I’ve become known for my “can do” attitude and one way or another will help my clients find a way to realize their real estate dreams.

Selling is another story entirely.  It’s likely that your present home will sell fast, making it difficult if you have not yet decided where you want to move.  That’s one reason why it’s smart to know your wants, needs and budget BEFORE you even begin the process of selling to trade up or move to another neighborhood.  

My advice to you?  If you’ve even considered a move, NOW is the time to get started. Prices aren’t going down anytime soon, and as I mentioned, mortgage rates essentially have nowhere to go but up. 

The very best move you can make today is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  Together we can work to find the best options for your individual family situation.

I look forward to speaking with you soon.

 

SEPTEMBER 2021

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

Here are some highlights from the September 2021 PPAR report.  The 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 9.  

Also in El Paso County, the sales price/list price for single family/patio homes was 102.3% and for condo/townhomes it was 102.7%.  

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

 

In comparing September 2021 to September 2020 for All Homes in PPAR:

                        

                     Single Family/Patio Homes:

·       New Listings were 1,829, Up 9.8%

·       Number of Sales were 1,758, Down 2.5%

·       Average Sales Price was $498,003, Up 15.5%

·       Median Sales Price was $440,000, Up 14.3%

·       Total Active Listings are 1,184, Up 18.9%

·       Months Supply is 0.7, Up 22.0%

 

Condo/Townhomes:

·       New Listings were 288, Up 12.9% 

·       Number of Sales were 302, Up 15.7%

·       Average Sales Price was $335,905, Up 13.8%

·       Median Sales Price was $318,500, Up 15.0%

·       Total Active Listings are 142, Up 6.0%

·       Months Supply is 0.5, Down 8.4%

 

Now a look at more statistics…

 

SEPTEMBER 2021 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 7.6%

 

• Median Sales Price for All Properties was Up 14.8%

 

• Active Listings on All Properties were Down 14.9%

 

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

 

And now some advice for BUYERS:

 

 

EARLY OCTOBER IS THE “SWEET SPOT” FOR BUYERS

KeepingCurrentMatters, 9.28.21

 

If you’re looking to buy a new home, here’s some better news for you.  Even though the housing market news has recently been focused on “sellers” and their perks while discussing the bidding wars and other obstacles for buyers, there are some clear signs that buyers may have more opportunities this fall and winter.

According to realtor.com, the sweet spot for buyers is right now.  A recent study looking at housing market trend data from the past several years and applying it to the current market found:

 

“Nationally, the best time to buy in 2021 is the week of October 3-9.  This week historically has shown the best balance of market conditions that favor buyers.”

 

So, if you’re looking to buy a home, the best time to start is TODAY.  And here are a few reasons why:

 

1. Increased Housing Supply.  The number of homes for sale should be increasing.  According to realtor.comyou can expect to see more new listings come to market this week.  The findings estimate we should see roughly 17.6% more homes available for sale nationally than we saw at the start of the year. This means more options from which to choose, which should be a welcome relief in this market with tight housing supply.

 

2. Fewer Bidding Wars.  With more homes available you should also see a slight decline in the number of bidding wars.  This means when you write an offer, you may have less competition and a better chance of being the top bid.  But remember, it’s still important to come in with a strong offer if you want that offer to be accepted.

 

3. Adjusted Home Prices.  Heading toward the end of the year, the findings from realtor.com note that this week may also be one of the peak weeks for price reductions in 2021.  Historically the data shows that an average of 7.0% of homes nationally have a price reduction this week.  Why?  When housing supply increases, sellers need to look for other ways to make their home stick out. So, while prices continue to increase overall, you may see some homes with price adjustments from eager sellers.  For sellers who want to close before year end, they may be more motivated this month.

 

Bottom Line:  If you’re in the market for a home, NOW is the time.  October may give you the long-awaited opportunity to find what you’ve been wanting.  Call me sooner than later and let’s see how we can make your dreams a reality.

 

IF YOU’RE A BUYER, IS OFFERING ASKING PRICE ENOUGH?

KeepingCurrentMatters, 9.27.21

 

As I’ve been saying for some time now, the “new normal” in writing an offer for a home shouldn’t include the expectation that you will be able to negotiate a lower than listing sales price.  In other times, buyers often tried to determine how much less than the asking price they could offer and still get the home.  From there, the buyer and seller would typically negotiate and agree on a price somewhere in the middle.

 

Things are different today. 

 

Today’s housing market is anything but normal.  According to the National Association of Realtors (NAR), on a national level, homes are receiving an average of 3.8 offers and selling in just 17 days.  Locally our average selling time is just 10 days!  

Selma Hepp, Deputy Chief Economist at CoreLogic explains how low supply and high demand can impact buyers:

“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months.  Now, almost 6 in 10 homes listed are selling for over the asking price.”  

In El Paso County the average sales to list price in September was 102.3% for single family and patio homes and 102.7% for condos and townhomes.  Once again, when it comes to market conditions, you must look at the LOCAL trends.  Colorado Springs has consistently performed better than the national average for some time now.

 

You may need to rethink how you look at a home’s asking price.

What this means is that if you’ve found your dream home, you need to be realistic about this “new normal” and how that impacts the offer you’ll make.  Offering below or even at a home’s asking price may not cut it.  In today’s market, somewhat like an auction, the highest bidder often wins the home.

Currently, the asking price is often the starting point in the negotiation rather than the ceiling.  If you really love a home, it may ultimately sell for more than the sellers are asking—in some cases, a lot more.  That’s important to remember when we sit down to craft your offer.

 

Understand that an appraisal gap could happen.

Appraisal gaps—the gap between the price of your contract and the appraisal of the home—are more frequent in today’s market due to home appreciation and the auction-like atmosphere in the selling process.

According to Corelogic:  “Beginning in January 2020, nationally, 7% of purchase transactions had a contract price above the appraisal, but by May 2021, the frequency had increased to 19% of purchase transactions.”

When this occurs, your lender won’t loan you more than the home’s appraised value, and the seller may ask you to make up the difference out of pocket.  Buyers today need to be prepared for this possibility.  It’s important to know your budget, know what you can afford, and we can write the offer in such a way to cover the possibility of an appraisal gap.

All of these things will come into play when you find the home you wish to buy.  This is just another reason why it’s important to have a seasoned real estate professional like me on your side as you tread the “new normal” of making an offer that not only excites the seller, but one that makes it to the closing table.

The 25^th Annual UCCS Economic Forum will be held virtually again this year on Thursday, October 14^th from 1-4 p.m.  It will be presented at NO COST to registrants; however, registration is required.

As you might be aware, I’ve been a sponsor of this event since its inception and the annual event is one that no Colorado Springs businessperson should ever miss.

For more information and to register please go to:

 http://uccseconomicforum.com/registration/

 

September 22, 2021

 

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.

 

 

YOU’RE PROBABLY WONDERING WHY I PUT THIS INFOGRAPHIC UP FRONT…AND I’M ABOUT TO TELL YOU…

As I’ve been saying for the last couple of years, there is no “normal” anymore when it comes to buying and selling Residential real estate.  And the “new normal” keeps changing all the time.  

We all keep hearing about how homes are appreciating faster than ever, mostly due to the lack of available homes for sale and the historically low interest rates.  And with the internet, it’s easy today to seek out prices of homes that sold in your own neighborhood or what Zillow or other sites say your home is worth.  This can be very misleading, and I’ll relate a recent experience I had so that illustrates this.

I had clients who had already purchased a new home and wished to sell their current one.  They had looked at what homes in their neighborhood had recently sold for and had decided that considering the recent buying frenzy, their home was worth a certain amount, and they would take nothing less for it.

When I did the research and then went to their home, I knew that the figure they had in mind was not realistic and that it wouldn’t get a lot of potential buyers at that price.  I gave them my estimate and explained my reasoning and they did not agree with it due to their previous “research”.  Against my advice, it was listed it for what they requested.  After several initial showings and no offers, the general feedback from showing brokers was that the house was overpriced.  

I tried to explain this to my clients, but they still did not agree.  Not to get into any greater detail and to make a long story short… after three weeks and two price reductions, the house did sell at the price that I had originally told them I thought was reasonable.  

The point I’m making here is that seasoned, knowledgeable real estate professionals are the best investment a seller can make when it’s time to list their home.  And listening to what they have to say regarding the price point and other matters can make all the difference in getting an offer that not only is acceptable but will likely make it to the closing table.  

When I see commercials on television where real estate agents are quoting very low commission fees, and more, I think to myself, “well, you get what you pay for!”.  There is so much that goes into getting a home ready for sale and not taking it step by step can make a lot of difference in the selling experience for a client.  

I’ve sold thousands of homes in the last 48+ years and have found that my recommendations for fixups, selling price and more have made a big difference in how the entire process goes.  

The market is a bit less frenetic now with a few more homes coming available, but multiple offers and ones over listing price are continuing to happen.  Knowing which offer will likely make it to closing is an important part of my job and I’m not simply in this for a quick sale.  I am in this business to make long lasting relationships and am thrilled when I get a call from children and even grandchildren of past clients who want me to represent them in buying and/or selling a home.

If you’ve even considered a move, let’s talk and see how together we can make your wants, needs and budget work toward that goal.  There’s no better time than now to make all of your Residential real estate dreams come true.

And…the best move you can make at present is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get the ball rolling.  

I look forward to speaking with you.

 

THE BIGGEST MISTAKE HOME BUYERS AND SELLERS CAN MAKE

The Wall Street Journal, 9.20.21

I woke up yesterday morning to this headline when I opened The Wall Street Journal and I had to smile.  The whole front page of the Journal’s Wealth Management section had that headline.  The subtitle said:

“For many people, it’s their largest investment—and their most emotional one.  That can be a bad combination.”

And I thought to myself, “I could have written this”!  So, I’d like to share with you some excerpts from the article.

 

BUYING MISTAKES:

 

1. Picking a so-so location.  Too often people may fall in love with a house and forgive it for the company it keeps.  There could be a lot of distracting outside noise, or other such problems.  This violates the first rule of real estate which is:  location, location, location.  

 

This is probably truer today than in the past as desperate buyers find themselves pushed out of coveted neighborhoods due to the shortage of available homes.

 

If at all possible, try to find a home in an area that fits what you want and need because some day when you go to sell that home, location will likely play an important role there, especially if the market isn’t as hot as it is today. You can always add a bathroom or other things, but you can never change the home’s location.

 

2. Buying a house sight unseen.  Oftentimes an online listing may include professional photography, 3-D floor plans and virtual walk-throughs, but nothing can replace an in-person visit.  

 

Today’s market can make buyers feel they need to make a decision without seeing the home in person or without other family members who will be living there but be prepared for things to be quite different than they might look in a listing.

 

3. Waiving the inspection.  In today’s market, a number of buyers have offered to waive preliminary inspections to make their offers more enticing to the sellers.  That can often be a big mistake and a costly one.  Even if one is planning to raze a home to build a new one, it’s important to have an inspection.  Some old homes can have asbestos in the roof or air-conditioning or an inground septic tank, which would be important to determine prior to tearing down the home.

 

4. Getting a high maintenance vacation home.  When buying a weekend retreat or vacation home, most people focus on the properties they have “dreamed about”, rather than the cost of ownership.  It’s important to remember that you don’t want your second home to become a “second job”.

 

5. Tying your own hands.  Do you want to be told what color to paint your home or where to park your car?  Or how often to mow your lawn?  If the answer to those questions is no, you might not want to buy in any community controlled by a homeowner’s association.  It’s important to read the rules and regulations of the HOA prior to buying a home in that community.

 

SELLING MISTAKES:

 

1. Showing the house at its worst.  We are all so connected to our homes that sometimes we don’t see its flaws.  But the buyers will.  They want to picture themselves living in the home and if it’s too cluttered or full of your personal mementos that makes it more difficult for the potential buyer to see themselves living there.  Get rid of clutter and do everything to help show the home in its best light.

 

2. Not planning for capital-gains taxes.  If your home has appreciated in value, which is quite likely in today’s market, the profit could be subject to capital-gains taxes.  Certain home improvements can potentially help reduce the tax bill—but only if the seller has documentation showing that the improvements increased the home’s market value, prolonged its useful life, or adapted it to new uses.  

 

3. Mishandling the sale of an estate.  The impact of a mistake is not felt just when the owner is alive.  If a homeowner doesn’t provide a detailed estate plan—and have clear communications with heirs—disputes over the estate can delay or even scrub a home sale after the owner dies. ​Similarly, homeowners who bequeath a home to heirs in hopes of keeping it in the family often fail to provide funds to cover the annual costs of maintaining it.  As a result, heirs may be forced to sell, even if a down market prevents the house from getting top dollar.

 

4. Fudging facts and flaws.  “Maybe they won’t notice” is sometimes a mantra of sellers who are hoping that buyers won’t see the problem with the roof, or the signs of former water damage—even though sellers by law are required to disclose any known deficiencies in a home.

 

It’s important to establish trust between the buyers and sellers.  That’s how you can get the best price for your home.  When you withhold information, the buyer can get more aggressive if they feel you are hiding something from them and this could affect the potential buyer’s price offer.

So there you have it.  Just some random thoughts from The Wall Street Journal and me!  Any questions, just give me a holler.  

 

IS THE housing market SLOWING DOWN?

Keeping Current Matters, 9.21.21

This is the question I’ve been asked for the last year and there’s no denying these are interesting times in Residential real estate.  

And there is no easy answer.

The Millennial generation, long known for putting home buying on hold, has become ready for ownership.  As more and more young people across the country started looking, they added to the already record breaking buyer traffic.

The only problem was the lack of available homes to meet the demand.  That inequity in the market is the root cause of the price appreciation that has many worried that we’re in another “housing bubble”.  But unlike 2008, the rise in home values was warranted.  It wasn’t price inflation.  It was price appreciation caused by simple economics:  a lack of supply and high demand.

Today, economists are noticing a softening in the market, but nothing that should alarm potential buyers or sellers.

That doesn’t mean it’s crashing.  It means it’s finally leveling out to a more normal market with more normal appreciation.  

Like any other year, buyer traffic peaked in April and May (the spring market) and is slowing as summer ends.  However, it’s important to note that those levels remain similar to where we were one year ago, which is great news for both buyers and sellers.  As competition slowly declines and inventory levels rise, experts project a steady softening of the steep high appreciation we’ve seen in the past year.

 

HAVE YOU EVER SEEN A housing market LIKE THIS?  (Infographic)

Keeping Current Matters, 9.17.21

I thought you’d like to see this infographic but keep in mind that as good as some of this looks, Colorado Springs’ numbers look even better!

 

 

Bottom Line?  Whether you’re buying, selling, or both, today’s housing market has lots of good news for you.  And if you’re currently renting, there’s no better time to start looking to own than the present.   A note to investors—with rents rising all the time, buying an investment property might be something worth considering.  

 

BUILDING MATERIAL PRICES SEE LARGE INCREASES YEAR TO DATE

National Association of Homebuilders, 9.9.21

I’ve been writing about how new home construction has been a challenge this year, with rising costs of materials, backorders for much of the same and high demand from sellers.  In fact, some homebuilders are quoting price “estimates” with no guarantee of delivery dates at times!  I thought the information here might explain some of those reasons.

While the recent drop in softwood lumber prices since early summer has helped bring down costs (after having drastically driven them up earlier in the year), the decline has been offset by large increases of several other building materials.

The prices of these 10 have increased the most thus far in 2021, and all are up at least 30%:

• Steel mill products
• Building paper and building board mill products
• Asphalt
• Plastic water pipe
• Fertilizer materials

 

And between April and July, these materials experienced price increases exceeding 20%:

• Laminated veneer lumber
• Building paper & building board mill products
• Fertilizer materials
• Plastic water pipe
• Fabricated structural metal
• Other engineered structural wood members
• Copper pipe and tube
• Steel mill products
• Aluminum base scrap

 

As you might imagine, this has made it quite difficult for home builders, but it is also affecting those of us who are renovating our present homes.  We’ve been doing just that at our home, and it is taking far longer for materials and even for workers to become available than I can ever remember.  

My advice?  Just be patient.  It’s all we can do at present.  And we can hope that materials, delivery times and worker availability will start to normalize sometime soon!

September 8, 2021

 

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.

 

 

MORE HOMES ON THE MARKET, BUT THINGS HAVEN’T STARTED TO SLOW DOWN MUCH

This is the time of year where we normally start to see a slowing down of sales.  Folks often like to move prior to the start of a new school year or before the holiday season gets under way.  However, I’m finding myself busier than ever for a number of reasons.

To start with, due to some of the uncertainty surrounding the Delta variant of Covid-19, a number of potential buyers are looking for the things they find wanting in their present home.  Those include more private spaces, better work and study spaces, and larger kitchens and entertainment areas.  

Others are wanting to take advantage of the still historically low interest rates, not knowing what the future may hold in that regard.

And still others are simply wanting to downsize, upsize or move to a new neighborhood or sometimes to a new location across the country or even across the world.  

I’ve talked to clients and a number of those relocating here for business and the school year or season is of no importance to them.  They want to move NOW.

As you will see in the statistics below, homes are still appreciating in double digits, but there are more homes coming on the market than in the recent past.  It’s happening slowly, but I suspect there will be more folks wanting to take advantage of the higher prices they can get for their present home and of the low interest rates before they go away.

My advice to you?  If you’ve even considered a move, NOW is the time to get started. Prices aren’t going down anytime soon, and mortgage rates essentially have nowhere to go but up. 

And the very best move you can make is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  

I look forward to speaking with you and helping to make all your Residential real estate dreams come true.

 

To my friends and clients who celebrate, I wish you a very happy, healthy and peaceful Jewish New Year.  

And to ALL my readers I’d like to share something I just read from Rabbi David Wolpe of Temple Sinai in Beverly Hills, CA.  I found it appropriate not only for the Jewish New Year, but for any year, at any time:

“A good year is not a perfect year, a triumphant year or even an easy year. It is a year in which we see goodness and do goodness. Have a good year.”

All I can add is…AMEN.

 

AUGUST 2021

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

Here are some highlights from the August 2021 PPAR report.  The 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 8.  For condo/townhomes it was 7.  

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

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

In comparing August 2021 to August 2020 for All Homes in PPAR:

                 

                     Single Family/Patio Homes:

 

·       New Listings were 1,960, Up 16.0%

·       Number of Sales were 1,870, Up 5.6%

·       Average Sales Price was $499,278, Up 14.5%

·       Median Sales Price was $450,000, Up 18.4%

·       Total Active Listings are 1,009, Down 6.3%

·       Months Supply is 0.5, Down 11.3%

 

Condo/Townhomes:

 

·       New Listings were 294, Up 11.4% 

·       Number of Sales were 260, Up 5.7%

·       Average Sales Price was $339,722, Up 24.4%

·       Median Sales Price was $325,000, Up 22.6%

·       Total Active Listings are 106, Down 10.9%

·       Months Supply is 0.4, Down 15.7%

 

Now a look at more statistics…

   

AUGUST 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

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

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

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

 

• Sold Listings for All Properties were Up 4.7%

 

• Median Sales Price for All Properties was Up 17.9%

 

• Active Listings on All Properties were Down 26.7%

 

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

 

 

COLORADO SPRINGS AGAIN RANKS HIGH IN THE FHFA HOUSE PRICE INDEX

FHFA, 8.31.21

The recently published FHFA House Price Index for second quarter 2021 lists Colorado Springs as #20 out of the top 100 in house price changes during that quarter.  Here is a copy of the changes:

 

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

 

A CHECKLIST TO GET READY TO SELL

Keeping current matters, 8.27.21

When you begin thinking about selling your home, it’s important to realize that potential buyers are going to picture themselves living there.  You want the home to look it’s best inside and out.  

Focusing on tasks that can make it inviting and show it’s cared for can make all the difference when you’re ready to sell.  This Infographic provides just some of the ways to do that:

 

Potential things that can either prevent or prolong a sale are ones I can help point out.  That way, when you are ready to sell you can get your home on the market in a more expedient manner.  Today’s buyers are often in a hurry to move in and don’t want to purchase a home that is going to need a lot of work prior to the move when it comes to major or even minor things that could come up during the home inspection.  

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 8.27.21

As always, I’ve included 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 levels.  

I’ve reproduced just one of the charts below.  You can click here to read the entire report and if you have any questions, please give me a call.

 

On another note, the Annual UCCS Economic Forum will be held virtually again this year on October 14^th from 1-4 p.m.  And once again, it will be presented at NO COST to registrants.  

I will be providing more detailed information in the next eNewsletter and a link to register on-line for this always enlightening event.

It’s one that no Colorado Springs businessperson will want to miss.

August 23, 2021

 

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.

 

 

MORE HOMES FOR SALE BUT THE MARKET IS STILL FAVORING SELLERS

The good news is there are more homes for sale, giving buyers more choices than they’ve had in the last year or two.  However, there still aren’t as many available homes as there are potential buyers so it continues to be a seller’s market at present.

I’ve had more listings in the last month than I’ve had for some time and while the number of offers has decreased somewhat, the homes have sold quickly and for over asking price.  From where I sit, it appears that more and more folks are wanting to test the market and see what they can get for their existing home while prices are still at all-time highs.  Most of those I’ve been dealing with have a good idea of where they might want to go next, either trading up or down or relocating to another state to be near family members or for work situations.

With interest rates continuing to be historically low, the higher price of the homes for sale hasn’t been much of an issue since the monthly payments for many remain lower than even several years ago.  I tell my clients not to consider the price of the home, but to look at what their monthly output will be.  Today’s rates are allowing them to buy more house for the same or slightly higher monthly payment.  

I’m also seeing more clients looking to find existing homes rather than wait for new construction, which is a change from even six months ago.  Part of that is due to the time it’s taking to build a new home, and the uncertainty of the exact price because of materials and labor.  

A recent article in “The Wall Street Journal” discussed the fact that Austin, Texas has had the biggest national increase in homes selling over the listing price.  That immediately stuck home for me because Colorado Springs is often compared to Austin due to the type of residents they attract, namely those in the technology fields.  And with all the new companies wanting to relocate to the Springs, it’s likely our selling prices will stay high for some time to come.  The good news there is that our prices still remain lower than Austin, a boon for companies concerned about the cost of relocating and hiring employees.

It has taken a lot of creativity on my part to help my clients navigate the current buying and selling wars.  Fortunately, I’ve had 48+ years of experience and, combined with my Investment Banking background, this is a definite plus for those I work with.

When I’m asked, “Is now good time to buy or sell?”, I always answer the same way.  “If it’s right for YOU, then it’s a good time to buy or sell.”  There’s no standard formula for buying and selling a home and that’s why I spend time with each client to determine what is best for their particular situation.  It’s important to find out what someone is looking for and determine why they want to buy, sell, or invest in a home as everyone has different wants, needs and budgets. Those type of questions need to be addressed upfront and we can proceed from there.

The best move you can make at present is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered.  

I look forward to speaking with you.

 

COLORADO SPRINGS HOME PRICES JUMP HIGHER IN SECOND QUARTER 2021…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 8.12.21 and “The Gazette”, 8.20.21

Median prices of single-family homes across the nation rose double-digits for Quarter Two 2021 in 94% of the 183 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 22.9% to $357,900.

Colorado Springs surpassed that, with the median price of single-family homes jumping 24.3% to $439,200 during the second 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 28^th highest of the cities surveyed, while the appreciation rate was tied for the 40^th percentage increase.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver and Boulder areas, which makes our city more attractive to potential companies wanting to relocate.

To see all 183 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  And if you have any questions, you know where to reach me.

 

A LOOK AT HOUSING SUPPLY AND WHAT IT MEANS FOR SELLERS

KeepingCurrentMatters

Even with more listings than in the past few months, one of the biggest topics in today’s real estate news is the shortage of available homes for sale.  Simply put, demand exceeds supply, and that equals a seller’s market.  

As a seller, it means your home will likely get more attention and offers.  However, as life returns to a new “normal”, you could be wondering if that’s something that will change.

While some blame for the current inventory shortage may go to the pandemic, it can’t take all the credit.  It did cause some sellers to hold off on listing their houses over the past year, but the truth is the low supply was years in the making. 

 

Where Did the Shortage Come From?

It’s not just today’s high buyer demand.  The low supply goes hand in hand with the number of new homes built over the past decades.  According to Sam Khater, VP and Chief Economist at Freddie Mac, “The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”  

Data from a recent report from NAR tells the same story.  New home construction has been lagging behind the norm for quite some time.  Historically, builders completed an average of 1.5 million new units per year.  However, since the housing bubble of 2008, the level of new home construction has fallen off.

The NAR report stated, “the underbuilding gap in the U.S. totaled more than 5.5 million housing units in the last 20 years.  Looking ahead, in order to fill an underbuilding gap of approximately 5.5 million housing units during the next 10 years, while accounting for historical growth, new construction would need to accelerate to a pace that is well above the current trend, to more than 2 million housing units per year”.

What that means is that if we build even more new homes than the norm every year, it will still take a decade to close the underbuilding gap contributing to today’s supply and demand mix.  

We are already starting to see an increase in new home construction but this alone can’t bridge the supply gap we’re facing right now.

In the State of the Nation’s Housing 2021 Report, the Joint Center for Housing Studies of Harvard University says:

“…Although part of the answer to the nation’s housing shortage, new construction can only do so much to ease short-term constraints.  To meet today’s strong demand, more existing single-family homes must come on the market.”

 

Early Indicators Show More Exiting-Home Inventory Is on Its Way

The latest reports show that the housing supply is growing gradually month-over-month, both nationally and here in Colorado Springs.  

According to Lawrence Yun, Chief Economist for NAR, “As the inventory is beginning to pick up ever so modestly, we are still facing a housing shortage, but we may have turned a corner”.

 

What Does All of This Mean to YOU?

Just because life is starting to return to a “new” normal, it doesn’t mean you missed out on the best time to sell.  It’s not at all too late to take advantage of today’s seller’s market and use rising equity and low interest rates to make your next move.

If this is something you’ve even considered, give me a call and let’s see how we can make your Residential real estate dreams come true.

August 9, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

RESIDENTIAL real estate IS STARTING TO SLOWLY “NORMALIZE” BUT MANY THINGS REMAIN UNCHANGED

In recent months I’ve been telling you about the difficulties that buyers have been experiencing and while there are still potential roadblocks to finding the home of your dreams, things are starting to look up a bit.

Let’s start with the average and median sales prices.  As you will see, they are down from June, but still considerably up year-over-year.  Some reasons for the slight downward shift include more existing homes for sale—26.3 % more active listings in July vs. June, and of course, the price point has kept some potential buyers out of the market.  

So, the good news is that there are more homes from which to choose, but unfortunately there are still more potential buyers than there are homes, so the bidding wars and fast turnaround times are still with us.

I’ve had several listings in the past couple of weeks, all of which sold within days of listing.  Great for the sellers, but still a little tough for buyers.  I’m finding more folks interested in testing the market right now while prices are still at all time highs. With the month-over-month sales and median prices starting to trend lower than the recent past, some potential sellers want to make certain they get the best price possible for their current home while possibly taking advantage of a slightly lower price point on the new one.

Many folks are wanting to take advantage of the still low interest rates and worry that possible impending inflation could ramp them up.  I personally don’t know which way the rates will go and have stopped trying to make predictions.  However, I don’t see rates staying this low forever.  

The important thing to consider is still the monthly cost of purchasing a new home, rather than the price.  If you are selling to trade up it’s likely that your present home has more equity than you might think.  Therefore, your down payment coupled with the low interest rates could possibly keep your monthly output the same or not too much more.  

NOW is the time to get started if you’ve even considered a move.  Prices aren’t going down anytime soon, and mortgage rates essentially have nowhere to go but up.  It shouldn’t take long to sell your present home and it will likely go for far more than you might imagine.  However, finding a replacement will likely take some time so it’s best to start in that direction first.  

Meanwhile, the best move you can make right now is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  I look forward to speaking with you and helping to make all your Residential real estate dreams come true.

 

AND TO ILLUSTRATE WHAT I JUST WROTE…

Keeping Current Matters, 7.21

 

JULY 2021

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

Here are some highlights from the July 2021 PPAR report.  The 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 6.  For condo/townhomes it was 5.  

Also in El Paso County, the sales price/list price for single family/patio homes was 104.4% and for condo/townhomes it was 104.3%.  

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

In comparing July 2021 to July 2020 for All Homes in PPAR:

                        

                      Single Family/Patio Homes:

·       New Listings were 2,176, Up 10.5%

·       Number of Sales were 1,844, Down 6.8%

·       Average Sales Price was $501,138, Up 17.2%

·       Median Sales Price was $450,000, Up 19.4%

·       Total Active Listings are 981, Down 29.4%

·       Months Supply is 0.5, Up 4.3%

 

 

Condo/Townhomes:

·       New Listings were 317, Up 2.6% 

·       Number of Sales were 241, Down 8.4%

·       Average Sales Price was $324,807, Up 17.4%

·       Median Sales Price was $315,000, Up 25.5%

·       Total Active Listings are 104, Down 35.8%

·       Months Supply is 0.4, Up 4.3%

 

Now a look at more statistics…

 

JULY 2021 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 6.3%

 

• Median Sales Price for All Properties was Up 19.2%

 

• Active Listings on All Properties were Down 38.6%

 

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

 

WAITING TO BUY COULD COST YOU…

Keeping Current Matters, 7.21

 

Some Highlights:

• If you’re thinking of buying a home but wondering if waiting a few years will save you in the long run, it’s time to think again.

 

• The longer you wait, the more you’ll pay, especially when mortgage rates and home prices rise.  Even the slightest change in the mortgage rate can have a big impact on your buying power, no matter your price point.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 7.30.21

As always, I’ve included 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 levels.  

I’ve reproduced just one of the charts below.  You can click here to read the entire report and if you have any questions, please give me a call.

 

 

July 26, 2021

 

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.

 

 

TO ALL WORKERS WHO HAVE JUMPED BACK INTO THE FREY AND ARE HELPING TO TRY AND GET OUR ECONOMY BACK ON TRACK…YOU ARE IN OUR DEBT

We are a country of so much fortitude and resilience and yet as I sit here thinking about recent days, I wonder what is going on with our labor force in general.  I work with so many folks who are either in the process of renovating their homes, as Carol and I are, and with many others who are looking to buy either an existing home or new construction.  What I’ve seen lately is exorbitant time delays, the rising and lack of materials and so much more that is threatening to really ramp up inflation.

It literally takes a village to renovate or build a home, and when a segment of that village stalls, everything gets backed up and can cause major concern for those needing a house now, not six months or a year from now.

The supply chain has been precarious in recent months, with suppliers running out of everything from light switches to paint.  I was truly amazed to hear that due to the chemical fires in Texas some of the tints needed to create paint colors were not available.  Who knew?  And some furniture that needs foam padding was hurt by those same chemical fires.  This is causing major delays and will continue to drive up the costs of these items, and of renovations and new construction as well. 

But what really is starting to hurt as much if not more than those type of problems is the lack of available labor to help all of our businesses, restaurants, hotels and the like get back on track for the onslaught of folks who are ready to finally get out and live life as normally as possible again.

There is not a restaurant I’ve been in recently whose owner or manager hasn’t shared with me the difficulty of staying open regular hours while still providing excellent customer service.  Some are limiting the number of seatings while others are choosing to change hours or close an extra day each week.  

This is the same in every local or national shopping store I’ve visited.  You see signs posted most everywhere offering excellent wages and benefits—and even a sign-up bonus for some. I don’t recall ever seeing this many cries for help, and it’s troubling when you consider how many are still collecting unemployment simply because they “can”.  

I’m not here to judge anyone for their decisions, but I am here to say a big “Thank You” to all of the workers, young and old, who have gone back to work to help continue making our city and our country whole again.

It’s not simply the “essential” workers such as doctors, nurses, fire, police and others who deserve our thanks.

All workers are “essential” in my book, and I want to send a big shout out to all those toiling away in restaurants, shopping stores, manual labor, and so much more.  You are the ones who make a difference every day in the lives of so many and you do so anonymously and with grace.  

I want to make sure you know your labor is not in vain by any means, and I for one, am very grateful.

 

COLORADO SPRINGS IS RATED # 6 AMONG BEST PLACES TO LIVE AND IS AN EMERGING housing market

USNews&World Report,7.21.21, The Wall Street Journal, 7.21.21

In the most recent annual analysis from U.S. News & World Report, Colorado Spring came in number 6 out of 150 major U.S. cities surveyed.  

According to the report, in order to make the top of the list, a place had to have good value, be a desirable place to live, have a strong job market and a high quality of life.

Three other Colorado cities also made the list with Boulder at number 1, Denver at number 14 and Fort Collins at number 17. 

In similar news, The Wall Street Journal reported about their joint study with Realtor.com where metro areas were ranked according to real-estate market data and economic health.  In that study only two Colorado cities were ranked in the top 50—Colorado Springs at number 16, and Boulder at number 46.

This study showed that the housing boom and appeal of remote workers has driven buyers away from big cities to more affordable areas with appealing lifestyle amenities. Areas with higher property taxes have fallen in the rankings over the past couple of years.

While home prices in all markets have risen steadily in the past several years, homes in these emerging markets are considerably more affordable and folks are finding they can get more for their money in relocating there.

And home buyers remain unfazed by longer commutes these days as well.   If they are able to purchase a home in an area they love and at a better price than in a bigger city, they are willing to make the commute, especially if they are afforded the opportunity of working from home at least part time.

Recently, I have had a number of relocation inquiries and it’s been difficult for these families to find a home as quickly as they might need one.  The low availability of existing homes for sales, coupled with the long wait for newly constructed homes is creating difficulty not only for the one being located but for the company who needs them here now as well.

This again goes back to the significant lack of labor.  Besides the shortage of material, there is a lack of those who can move the material from point “a” to point “b” and those needed to help in construction, electrical work, plumbing work and so much more.  

That is precisely why I thank and commend those who are doing their share rather than doing nothing.

 

MEDIAN U.S. HOME PRICES HIT A NEW HIGH IN JUNE

The Wall Street Journal, 7.22.21

According to the National Association of Realtors, June sales of existing homes rose 22.9% from a year earlier.  The median home price in the country rose to $363,300 in June, up 23.4% from a year earlier. 

The housing market boom is easing slightly as rising prices are prompting more homeowners to list their homes for sale.  Lawrence Yun, chief economist for NAR, said that homes sold in June received an average of four offers, down from five the previous month.

But the number of homes for sale remains far lower than normal, and robust demand due to the continued ultra-low mortgage interest rates is expected to continue pushing home prices higher.

At the moment, demand is trumping everything, and higher inventory isn’t going to take the brakes off price increases any time soon.

If you’ve even considered a move, now is the time to get started.  Prices aren’t going down any time soon and mortgage rates essentially have nowhere to go but up, so today is the best time to start.  It shouldn’t take long to sell your present home and it will likely go for far more than you might imagine.  It WILL take longer to find your next home, so that also needs to be a consideration from the start.

The best move you can make is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered.  I look forward to speaking with you.

 

U.S. HOUSING STARTS ARE RISING, HOWEVER BUILDING PERMITS ARE TUMBLING

Reuters, 7.21.21

Homebuilding across the county increased more than expected in June but permits for future homes fell to an 8-month low, likely due to the uncertainty caused by expensive building materials as well as shortages of labor and land.

A report from the Commerce Department last week suggested a severe shortage of houses, which has boosted prices and sparked bidding wars across the country. With demand driven by low mortgage rates and a desire for more spacious accommodations during the pandemic, this could persist for a while.  

Though lumber prices are coming down from record highs, builders are paying more for steel, concrete and lighting and lots more and are grappling with shortages of appliances like refrigerators.  

There have been reports of multi month delays in the delivery of windows, heating units, and appliances which have delayed the delivery of homes and forced builders to cap activity.  Many builders continue to point to a shortage of available workers as a separate challenge.

 

 

MORTGAGE RATES NOSE-DIVE AS REFINANCE FEE IS ENDED

Yahoo.com, 7.25.21

It’s difficult to believe but mortgage rates this week dropped back to within shouting distance of their recent record lows.

When 30-year fixed rates spiked during the spring, there were predictions that the economy’s recovery from the pandemic could push rates as high as 4% this year.  But at the moment, they are deep beneath 3% once again and offering hefty savings to both homebuyers and refinancing homeowners.  

The government’s announcement that the end is coming for a widely loathed fee has contributed to rate drops, though another reason is that the recovery is looking like less of a sure bet.

Recent drops in rates have been tied, in part, to the economic uncertainty created by rising COVID infections.

“Concerns about the Delta variant, and the overall trajectory of the pandemic, are undoubtedly affecting economic growth,” say Sam Khater, Freddie Mac’s chief economist.  “Declining rates provide yet another opportunity for homeowners to save money on their monthly mortgage payment through a refinance.”

The average rate on 15-year fixed-rate mortgages also dipped, falling from 2.22% to 2.12%.  A year ago, 15-year fixed loans had an average rate of 2.545.

Fifteen-year mortgages are a popular choice among refinancing homeowners, with the Mortgage Bankers Association estimating that 15-year fixed-rate loans account for approximately 20% of all refis in the U.S.

The Federal Housing Finance Agency is scrapping is 0.5% fee on refinances which is making refi loans cheaper.  That surcharge has cost the typical borrower an extra $1400, according to mortgage bankers.

FHFA oversees both Freddie Mac and Fannie Mae, two government sponsored enterprises that buy most mortgage loans from lenders.  The agency introduced the fee last year because it said that Freddie and Fannie needed the revenue because they were facing billions in losses related to the pandemic.

Since lenders passed the additional cost on to consumers, the fee “artificially increased the average mortgage rate,” says Zillow economist Matthew Speakman.  Banks are now lowering their rates ahead of the surcharge’s official end on August 1.

If you’re a homeowner who has been putting off on refinancing, it’s probably time to stop procrastinating.  

These low rates, like most things in life, aren’t a guarantee and they most certainly be around forever.

 

WHAT DO EXPERTS SEE ON THE HORIZON FOR THE SECOND HALF OF THE YEAR?

KeepingCurrentMatters, 6.30.21

 

• Mortgage Rates Will Likely Increase, but Remain Low

 

• Home Appreciation Will Continue, but Price Growth Will Likely Slow

 

• Inventory Remains a Challenge, but There’s Reason to Be Optimistic

 

 

Bottom Line?  Looking at the forecast for prices, interest rates, inventory and home sales, experts remain optimistic about what’s on the horizon for the second half of 2021. 

 

I strongly predict that the Colorado Springs home price forecast will be much higher than that of the national forecast for 2021 shown above.

 

Contact me sooner than later so can discuss how to navigate the market together in the coming months.  

 

July 9, 2021

 

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.

 

 

JUST WHEN I THINK HOME PRICES WILL BEGIN TO LEVEL OFF, I FIND THERE’S NO END IN SIGHT

As you will see in the statistics below, the median price for existing single-family homes in El Paso County exceeded $500,000 for the first time.  That’s a BIG WOW…and this isn’t just a local thing—home prices all across America are trending up—but a bit faster in places like Colorado Springs where so many are wanting to relocate.

I will tell you the same thing I’ve been saying for some time now and even more so recently—it’s time to STOP looking at the PRICE of a home and START looking more closely at the MONTHLY PAYMENT. 

Interest rates were lowered again this past week and are still historically low.  What that means is that even though homes are costing considerably more than they did even several months ago, your monthly payment is more than likely in a range that’s affordable for you.  And that’s especially true if you have been renting because rental rates are at an all-time high.

Those of you who are wanting to sell and trade up are even in better shape because in this Seller’s Market you are likely to get more than you might imagine for your present home.  That means your home equity is considerably higher than you think—providing you more of a down payment for your next home.  

It really is simply a matter of working with a knowledgeable, seasoned real estate professional like me who can help you figure it all out prior to beginning the new home search. This cannot be over-emphasized. 

I can help you take your wants, needs and most importantly, budget, and correlate it to the best answers for your individual situation.  No two clients are alike, just like no two homes are exactly alike.  It’s important for me to get to know you and your family so I can help determine the best direction for you.  

The recent pandemic has created a lot of new wants and needs for many of us.  Some, like my family, have done a lot of home renovation to meet that criterion.  Others have begun to work with me to find a new living situation that already has the necessary changes.  And, still others have asked me to go to a new home builder with them to help them get what they want in new home construction as well as the best financing for their particular situation.

These are all areas where I excel and I am truly at my happiest when I can help folks find not only a place to call home, but know I’ve assisted them in obtaining what is often the most valuable asset for their family.  

If you’ve even considered a move, now is the time to get started.  Prices aren’t going down any time soon and mortgage rates essentially have nowhere to go but up, so today is the best time to start.  It shouldn’t take long to sell your present home and it will likely go for far more than you might imagine.  However, finding a replacement will likely take some time so it’s best to start in that direction first.  

Meanwhile, the best move you can make right now is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  I look forward to speaking with you and helping to make all your Residential real estate dreams come true.

 

JUNE 2021

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

Here are some highlights from the June 2021 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 7.  For condo/townhomes it was 6.  

Also in El Paso County, the sales price/list price for single family/patio homes was 104.9% and for condo/townhomes it 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 June 2021 to June 2020 for All Homes in PPAR:

 

You might take note that the median sales price for existing Single-Family/Patio Homes jumped above the $500,000 mark for the first time!         

                        

                     Single Family/Patio Homes:

 

·       New Listings were 2,078, Up 2.9%

·       Number of Sales were 1,816, Up 7.8%

·       Average Sales Price was $502,961, Up 25.1%

·       Median Sales Price was $450,000, Up 25.0%

·       Total Active Listings are 777, Down 47.5%

·       Months Supply is 0.4, Down 6.1%

 

Condo/Townhomes:

 

·       New Listings were 269, Up 19.0% 

·       Number of Sales were 222, Down 7.1%

·       Average Sales Price was $331,299, Up 27.8%

·       Median Sales Price was $320,000, Up 32.6 %

·       Total Active Listings are 62, Down 53.7%

·       Months Supply is 0.3, Up 7.6%

 

Now a look at more statistics…

 

JUNE 2021 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 6.8%

 

• Median Sales Price for All Properties was Up 24.3%

 

• Active Listings on All Properties were Down 52.1%

 

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

 

 

LOCAL HOMEBUILDING BOUNCES BACK

The Gazette, 7.3.21

After a slow May, new home construction in the Colorado Springs area has picked up pace, due in part to strong demand.

There were 382 permits issued last month by the Pikes Peak Regional Building Department, a 9.5% increase over the same month last year.  This number refers to single-family detached homes, not townhomes or condos.

Demand is strong for a number of reasons.  As you read earlier, there were only 777 existing single-family homes for sale at the end of June.  When you add in the bidding wars, sales over asking price and more, at times it makes more sense for a family to look at new home construction.  It also affords them the opportunity to know approximately when the new home will be ready so they can sell their existing home at the opportune time.  In some cases, when my clients have wanted to sell their home earlier, they have been able to ask the buyer for a rent-back situation until their new home is ready.

No matter how it is structured, I can help you in both situations.  Being a real estate professional in the local arena for 48+ years has afforded me a good working relationship with a number of local builders and I have assisted clients in home and site selection as well as helped them secure the mortgage best suited for their needs.  

In fact, some of my investment buyers have recently been purchasing newly constructed homes to lease.  They have found with the favorable interest rates and higher monthly rental pricing, along with the knowledge that the home will not need any repairs for quite some time, it’s a win-win for them.  Especially since the type of renter for those homes will likely be one that is more long-term and either doesn’t want to own a home or cannot qualify for their own mortgage for some reason.

If new home construction is in your future, give me a call and let’s see how we can make that work for you.

 

WHAT TO EXPECT AS APPRAISAL GAPS GROW

Keeping Current Matters, 6.29.21

Today’s low inventory and high demand are driving up home prices.  As many as 54% of homes are getting offers over the listing price, based on the latest Realtors Confidence Index from The National Association of Realtors (NAR). 

According to CoreLogic, 19% of homes had their appraised value come in below the contract price in April 2021.  That’s almost double the percentage in each of the two previous Aprils.

The chart below uses the latest insights from the NAR Index to show how often an issue with an appraisal slowed or stalled the momentum of a home sale in May of this year compared to May of last year:

 

If an appraisal comes in below the contract price, the buyer’s lender won’t loan them more than the house’s appraised value.  Therefore, there will be a “gap” between the amount of loan the buyer can secure and the contract price of the home.

In situations such as that both the buyer and seller have a vested interest in making sure the sale moves forward with little or no delay.  The seller will want to make sure the deal closes, and the buyer won’t want to risk losing the home.  That’s why it’s common for sellers to ask the buyer to make up the difference themselves in today’s competitive market.

Bottom Line:  Whether you are buying or selling, I will be there with you through the entire process and will be there to help you navigate through the unexpected, including potential “appraisal gaps".

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 6.25.21

As always, I’ve included 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 levels.  

I’ve reproduced just one of the charts below.  You can click here to read the entire report and if you have any questions, please give me a call.

June 28, 2021

 

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.

 

 

INNOVATION IS THE BUZZWORD OF THE MOMENT…AND LIKELY FOR THE FUTURE AS WELL

There’s just no avoiding it anymore, and if you’ve kept up with my eNewsletter columns you know I’ve been especially fortunate in finding new and innovative ways to help my clients realize their Residential real estate wants, needs and dreams.

I can’t overemphasize the importance of working with a seasoned, knowledgeable and innovative real estate professional in any situation, but most especially in today’s seller’s marketplace.  My 48+ years in the local Residential Real Estate arena coupled with my investment banking background gives me an edge that is particularly important in today’s buying and selling wars.  I’ve been through most every type of “cycle” and earned my nickname of “Mr. Negotiator” through years of practice.  

Buying a new home, which is often a family’s largest asset, should be a wonderful experience and I’ve always tried to keep the process as stress-free as possible for my clients.  I wish I could say that the past couple of years have been that way, but unfortunately that’s not the case.  Bidding wars and other new and innovative tactics have made the whole process much more difficult on the buyers, yet I still do everything possible to alleviate the day-to-day stress.

A big part of my job is working with clients and their family members to make certain we’ve got as much information as possible right at the beginning of the search.  When we’ve figured out a strategy it’s much easier to make the quick decisions that are necessary in today’s market.  

Every family situation is different and there’s no easy “no size fits all” in Residential real estate.  Home size, location, family size and wants, needs and budget all come into play and have to be considered right from the start.  

I like to spend time getting to know my clients so that I can best represent them and make certain they are getting the most for their money.  It can get a bit frantic in these bidding wars and I’ve learned that at times, walking away is a “win” when it’s not in a buyer’s best interest to “win the bid, but lose the war” so to speak.  

Interest rates are still historically low, rental rates are historically high, and folks are ready to move based on what they now realize they want in a home after being quarantined for so long.

When you add all that to the fact that median home prices all across the U.S. are at an all-time high and inventory is at an all-time low, well, you get the picture.  

Even folks looking for new construction are finding that with increased demand at the same moment building materials are at an all-time high, they not only cannot get a definite move-in date, but the builder also cannot give them an exact price for the new home.  

Yes, it’s crazy times in Residential real estate and not likely to change any time soon. 

A recent Wall Street Journal article in the “Future of Everything” section was entitled “Built-To-Rent Suburbs Are Poised to Spread Across the U.S.”.  The gist of the article was that current “economic forces and generational preferences are leading to a new kind of housing: subdivisions designed for renters and managed like apartment buildings”.  This is another innovative way that investors and builders are coming together to provide homes rather than apartments in a community type of setting.  This is a new concept, and I don’t know how it will play out, but it just goes to show that folks are thinking of new ways to provide housing to those who either can’t or don’t want to buy, but still want to live in a house, rather than an apartment.

I’m hopeful that more folks will start putting their homes on the market in order to trade up or move to a new neighborhood and that will at least help us get back to a bit more normalcy.

If you’ve even considered a move, now is the time to get started.  Prices aren’t going down any time soon and mortgage rates essentially have nowhere to go but up, so today is the best time to start.  It shouldn’t take long to sell your present home and it will likely go for far more than you might imagine.  It WILL take longer to find your next home, so that also needs to be a consideration from the start.

The best move you can make is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered.  I look forward to speaking with you.

 

OWNING A HOME HAS DISTINCT ADVANTAGES OVER RENTING--Infographic

KeepingCurrent Matters, 6.18.21

Highlights:

• When you rent, you build your landlord’s wealth, your monthly payment depends on ever-rising rents, and you don’t benefit from home price appreciation

 

• On the other hand, when you own your home, you build you own wealth, your monthly payment is locked in, and you benefit directly from home price appreciation

 

• If you’re feeling the challenges of a competitive market, remember that homeownership is a long-term game.  Persevering today will lead to financial rewards in the future.

 

U.S. HOUSING DEFICIT IS PUT AT 5.5 MILLION 

The Wall Street Journal, 6.17.21

Some more statistics to show why it’s especially tough to buy a home at present:

 

• Construction of new housing in the past 20 years fell 5.5 million units short of long-term historical levels, according to a report by the National Association of Realtors (NAR).

 

• The recent annual rise in the median existing-home price has been 19%. 

 

• In May, U.S. homes posted their biggest annual increase in more than two decades when the median national home price topped $350,000 for the first time.  In Colorado Springs, the median single-family home price was $432,095 in May.

 

• U.S. homes sales soared last year at their fastest pace in 14 years, when low interest rates and the rise of remote work during the pandemic sent buyers scrambling to find larger living spaces.

 

• The lack of homes for sale relative to demand and record housing prices have slowed the pace of home sales in recent months, but on a historic basis, the market remains red hot and analysts say demand from millennials entering their prime homebuying years is expected to fuel demand for years to come.

 

• More than 90% of home builders surveyed by NAR in May reported shortages of appliances and framing lumber.

 

As of this week, I’ve read that price of lumber and some other building material is finally going down but is still higher than in the recent past due to the great demand from builders and others.  Until demand stabilizes, I’m afraid we are in for continued unprecedented times.

So once again, if you’ve been considering a move, NOW is the time to get started.  It will take some time and perseverance, but prices aren’t going to get better, and interest rates are certainly not guaranteed to stay this low forever.