Real Estate Information Archive

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

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

QUESTIONS ASKED AND ANSWERED…

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

 

 

Mortgage Standards Were Much More Relaxed During the Boom.

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

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

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

 

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

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

 

The Foreclosure Situation Is Different Now.

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

 

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

Rick Sharga, executive vice president of RealtyTrac, explains: 

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

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

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

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

The latest Home Equity Insights report from Corelogic explains:

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

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

What does this mean for the housing market?

 

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

The supply of inventory needed to sustain a normal real estate market is approximately six months.  Anything more is an overabundance and will cause prices to depreciate.  Anything less is a shortage and will lead to continued price appreciation. 

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

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

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

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

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

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

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

I look forward to talking with you soon.

 

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

The National Association of Realtors, 2.10.22

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

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

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

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

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

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

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

 

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

Keeping Current Matters, 2.21.22

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

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

 

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

 

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

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

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

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

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

 

History Shows During Inflationary Periods, Home Prices Rise as Well

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

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

 

Bottom Line?

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

 

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

ERAShields, 1.31.22

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

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

 

February 8, 2022

 

HARRY’S BI-WEEKLY UPDATE

          A Current Look at the Colorado Springs Residential real estate Market

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

 

AND SO IT GOES…

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

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

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

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

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

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

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

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

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

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

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

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

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

And now for statistics…

 

JANUARY 2022

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

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

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

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

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

 

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

                        Single Family/Patio Homes:

·       New Listings were 1,180, Up 6.1%

·       Number of Sales were 1,058 Up 9.0%

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

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

·       Total Active Listings are 549, Up 19.3%

·       Months Supply is 0.5, Up 2.2%

 

Condo/Townhomes:

·       New Listings were 205, Up 28.1% 

·       Number of Sales were 158, Up 1.9%

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

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

·       Total Active Listings are 79, Up 23.4%

·       Months Supply is 0.5, Down 12.1%

 

Now a look at more statistics…

 

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

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

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

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

 

• Sold Listings for All Properties were Up 4.9%

 

• Median Sales Price for All Properties was Up 17.6%

 

• Active Listings on All Properties were Down 12.7%

 

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

 

CONGRATS TO ME…

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

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

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

 

 

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

KeepingCurrentMatters, 1.27.22

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

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

 

Demand Is Very Strong

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

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

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

 

Supply Is Very Limited

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

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

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

 

 

Right Now, Sellers Have Maximum Leverage

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

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

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

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

Bottom Line

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

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 1.31.22

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

I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.

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

 

January 25, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

LOW INTEREST RATES ARE ON THE RISE AND SO IS HOME APPRECIATION.  THE TIME TO JUMP IN IS NOW…BUT TIME IS NOT ON YOUR SIDE FOR MUCH LONGER.

I rarely begin my eNewsletter on a less than positive note, but I hope this headline got your attention.

I’ve been saying for a while now that while home appreciation is continuing its upward trend, the low mortgage interest rates of yesterday are soon to be history.  And recently, the Federal Reserve has indicated that they intend to raise their rates for banks four times this year to help curb inflation. Mortgage interest rates are sure to follow, and in fact have been rising for the last month.  It’s doubtful we will see the historically low rates again in our lifetime, if ever. 

Today’s rates are still a bargain compared to rates of even five or six years ago, so if you have even considered a buying a home, there’s not any time to waste. Here are some of my thoughts to consider if you are thinking of getting into the market:

 

• As of Sunday, there were 308 home listings for existing homes in Colorado Springs and another 111 in the other areas of El Paso County.   That’s a total of 419 single family detached homes for sale—a less than two-week supply!

 

• Interest rates are slowly rising—the 30-year fixed-rate ones are currently the highest they’ve been in two years--and will continue to rise until inflation is curbed.

 

• Rental rates are higher than ever and will continue to rise with demand.  It’s proven to be cheaper to be a homeowner than a renter if possible and sometimes that means modifying your expectations in order to purchase a home now.  Home appreciation like that we have been experiencing will likely provide the equity you will need when you are ready to upgrade or trade up.

 

• I believe that we will continue to experience home appreciation in Colorado Springs of between 12-14% in 2022 and this presents a great opportunity for investors to consider buying rental properties.  If you’ve looked at the volatility of the stock market in recent days you can understand the prudence of this.  The huge drop this past week, although with a quick recovery of sorts yesterday, illustrates this point.

 

• Costs of new construction materials such as lumber, cement, copper, aluminum, cotton and more continue to rise and with them the price of new homes.  Locking in a home now, if that is the direction you wish to go, is essential.  Some builders are not even quoting exact prices, but the sooner you begin the search the sooner you will at least be on the list for a new home.

 

• Single family/patio homes in Colorado Springs and El Paso County sold for 103.2% of their listing price for all of 2021.  In Teller County that number was 101.3% of list price.  Your present home will likely sell quickly and for more than you might expect.

 

• Colorado Springs is going to continue to be a favored place for companies and individuals when it comes to relocation.  I see no end to this trend and expect it to continue more than ever due to the work-from-home situations that allow folks to work from wherever they choose.  Many are choosing and will continue to choose Colorado Springs.

 

Let’s discuss interest rates.  Yes, they are going up.  However, they are still low and when you consider the appreciation, you will make back the difference faster than any ever.  A home represents one of the biggest investments most families ever make, and today’s home appreciation will likely provide a far better return than day trading or short-term investments.  

A home is a long-term investment which will provide you and your family personal enjoyment.  Or it can be a rental home for investment purposes which will provide not only monthly income but an appreciation considerably better than the stock market.  In fact, a number of my investment buying clients are supplementing their retirement income with the income from their rentals, while that home is gaining appreciation year after year.

Read further in this eNewsletter to see more highlights of what’s happening now and is predicted to happen in Residential real estate as 2022 progresses.

And, if you’re ready or even thinking of being ready, pick up the phone and give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s discuss any and all possibilities for making your Residential real estate dreams come true.

 

AMERICANS CHOOSE real estate AS THE BEST INVESTMENT

Keeping Current Matters, 1.21.22

As I mentioned earlier, more and more Americans are choosing real estate as “The Best Investment”.  This infographic illustrates it well:

 

Some highlights:

• According to a Gallup poll, real estate has been rated the best long-term investment for eight years in a row.

 

• real estate tops the list because you’re not just buying a place to call home—you’re investing in your future.  Real estate is typically considered a stable and secure asset that can grow in value over time.

 

• If you’re ready to invest in your family’s future, give me a call sooner than later and let’s get started!

 

WHAT 2022 MEANS FOR HOMEBUYERS

Associated Press, 1.23.22

(Excerpted from an interview with Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):

 

How do you see the housing market’s trajectory shaping up this year?

 

Mortgage rates will definitely be higher, which means that people who were barely able to qualify last year will not be able to do so this year.  Combine that with some increase in supply. Builders have the profit motive.  Lumber prices and other materials costs are rising, but they’re simply tacking on those additional costs to consumers, who are willing to buy.  Price growth (nationally) will be something around 5% in 2022, which will be a very normal rate of increase.

 

Fair to say homeowners who are selling will still have an edge on buyers nationally?

 

We’re in a housing shortage of roughly 3 or 4 million.  And given that homebuilders can probably at the maximum put up maybe 2 million homes, more likely 1.7 or 1.8 million homes (a year), this housing shortage will persist this year and probably linger on somewhat next year.  Hence, the market in 2022 will still favor sellers.

 

How high do you see mortgage rates going this year?

 

My best guess at the moment is about 3.7%.  It could be a little lower or a little higher, but it’s going to certainly be higher than the 3% people enjoyed last year.

 

To what degree will higher rates dampen home sales?

 

Rising home prices have hindered affordability, but now rising interest rates are another thing that will begin to shave off some of the demand potential from first-time buyers.  My official forecast for home sales this year is they will come down about 2% from last year.

 

Has the pandemic led to any enduring changes to the way Americans buy and sell homes?

 

The pandemic will come to an end.  Hopefully, the sooner the better.  But the work-from-home situation, that development is here to stay.  That will be the key factor driving the housing market preference and demand.

 

What’s the biggest worry you have about the housing market now?

 

The concern is really first-time buyers.  If we don’t increase supply sufficiently, we will have a situation where the country becomes more divided.  Homeowners are feeling very wealthy.  Renters are feeling very frustrated, beginning to see accelerating rents.  So, we need to ensure that housing supply continues to increase.

 

ERA SHIELDS “2021 ANNUAL REVIEW OF COLORADO SPRINGS RESIDENTIAL real estate AND 2022 FORECAST

I want to share with you the “2021 Annual Review and 2022 Forecast” compiled by my company.  

Some interesting facts taken from the report:

 

 “Fun Facts from 2021 (El Paso County):

• Most expensive sale—an amazing home near The Broadmoor sold for $8,000,000
• Largest home sold—The $8,000,000 home was also the largest at 16,594 square feet
• Cheapest home sold—A single-wide in Ramah on a foundation sold for $52,000
• Smallest home sold—In old-town Fountain, a 400 square foot home

 

“Quick Hits from 2021 (El Paso County)

• Number of units sold was an all-time high at 14,803 (up 1%)
• Average sales prices for the year were $487,876 (up 18%)
• Median sales price was $431,250 (up 18%)
• Inventory levels for the year averaged just 2 weeks
• New home permits hit 2862 for Colorado Springs (down 3%)
• 391 homes sold for $1,000,000 or more (just 38 in 2015)
• 73 homes sold for under $200,000 (3,736 in 2015)
• Mortgage rates hit an all-time low of 2.65% in January, and peaked in April at 3.18%

You can click here to read the 12-page report, along with charts, in its entirety.  If you have any questions, please give me a holler.  

 

January 7, 2022

 

HARRY’S BI-WEEKLY UPDATE

         A Current Look at the Colorado Springs Residential real estate Market

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

 

 

HAPPY NEW YEAR…AND WELCOME TO 2022

As we bid adieu to a another unprecedented but better to handle year, here’s wishing you a very Happy, Healthy 2022.  While we are not yet, and maybe will never, return to what we used to consider “normal”, at the very least most of us are learning to navigate in this “new normal” as best we can.

Two years ago, I wrote about my “2020 Vision” and predicted that local home appreciation would remain high, new construction would become a viable choice for many, and interest rates appeared likely to remain low for the foreseeable future.  

All of this has remained true for the last two years…and for many of the reasons I mentioned.  Those included the historically low inventory of existing homes for sale, the influx of new businesses and their relocated employees, and the high rental rates which would drive more folks to homeownership.  And millennials are now aging into their prime home-buying years as well. 

More than 18,100 homes were sold in the Colorado Springs area in 2021—the largest number ever and almost double the 9,146 sold in 2012.  And home prices in the area have more than doubled over the last decade as well.  The year-end median home price in 2012 was $209,700.  In 2021 the year-end median home price was $450,000.  And we have consistently done considerably better than the U.S. housing market in general.

The housing market has been strong thanks to rock-bottom mortgage rates, a limited supply of homes on the market and pent-up demand from consumers locked in last year due to the pandemic. 

In 2021 Americans borrowed more than ever to buy homes.  Lenders issued $1.6 trillion in purchase loans last year according to estimates by the Mortgage Bankers Association.  That’s up slightly from $1.48 trillion in 2020 and above the previous record of $1.51 trillion in 2005.  

The mortgage boom is another reflection of the low interest rates, as well as the desire for bigger homes due to the pandemic.  Also, many folks were able to build up savings during the pandemic and a lot of that went into housing.

However, as the saying goes, “all good things must come to an end”, and while home prices are predicted to keep rising, interest rates will soon be joining them.

I’ve been telling you for some time now that I couldn’t predict “when” interest rates would rise, but that they weren’t going to stay at the historical lows forever.  Well, Wednesday was a wakeup call when the Federal Reserve announced that interest rates would be rising as soon as April of this year.  And within minutes the Dow Jones Index dropped more than 650 points!  While they didn’t mention “mortgage” interest rates, the National Association of Realtors (NAR) has forecasted that mortgage interest rates will also rise.

What does that mean for you?  For most, your home will likely continue to be your largest and fastest growing investment.  That’s great news for homeowners who have low interest rates and are happy with their present living situation.  

For others who have waited for various reasons but still have the desire to sell and trade up or purchase for the first time or for investment purposes, this news might not be so welcome.

As a result of the pandemic, many are still working from home (WFH) and home schooling. Both have changed what folks are looking for in their living situations and has driven a lot of home renovation and ideas of what is not only needed, but wanted, in a new home.  As you might imagine, larger kitchens, home offices, private spaces and outdoor entertainment areas continue to be popular.

And with WFH becoming so prevalent even after companies have started to return to offices, there has been an exodus from the bigger cities toward places with access to “the great outdoors”.  As most of you can attest, Colorado Springs most certainly has that…and so much more.  We have had a number of new companies relocate here this year and there are more to come.

As I mentioned earlier, folks coming here all need housing, either home purchases or rentals, and this is adding to the home shortage we’ve experienced for the last several years.  Those moving from states with very high home prices are coming in and paying cash and participating in bidding wars to get what they want.  This makes it more difficult for locals looking to move, but it’s still possible to find what you want, need, and can afford. 

It just takes more advanced planning and faster decision making. And of course, a professional, seasoned, and knowledgeable real estate agent like me on your side.  It’s easy to see why companies such as Zillow have gotten out of the “selling” aspect of real estate.  In today’s market it’s not for the timid or inexperienced.  

My almost 50 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Historically low interest rates will be going, going, gone and with today’s inflation it’s doubtful we will see those rates again, if ever.  If you’re in the market, or even considering your options, time is no longer on your side if you delay.

If you’ve even considered selling your present home, now is the time.  You’ve probably got more equity than you might imagine and when coupled with the “current” low interest rates—it might just make sense for you to make a move now--and most likely you can ‘trade up”.  It’s the monthly payments that you need to consider, not the price of the new home.  At today’s interest rates it’s possible that you can get “more” on a different home for not much more than you currently pay.  

If you are curious as to what your present home might be worth today, simply call me for an appointment to view your home and provide you with comparables.

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

And now for statistics…

 

DECEMBER 2021

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

Here are some highlights from the December 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 low 13.  For condo/townhomes it was 16.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.4% and for condo/townhomes it was also 101.4%.  

Since these are year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2021 to 2020.  

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

 

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

                        Single Family/Patio Homes:

·       New Listings were 995, Up 6.0%

·       Number of Sales were 1,443 Up 4.9%

·       Average Sales Price was $505,852, Up 15.7%

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

·       Total Active Listings are 659, Up 24.3%

·       Months Supply is 0.5, Up 5.0%

 

Condo/Townhomes:

·       New Listings were 140, Down 13.0% 

·       Number of Sales were 219, Down 1.4%

·       Average Sales Price was $351,825, Up 19.2%

·       Median Sales Price was $335,000, Up 15.5%

·       Total Active Listings are 89, Up 30.9%

·       Months Supply is 0.4, Down 22.9%

 

The Cumulative YTD Summary: (comparing Jan-Dec 2021 to Jan-Dec 2020)

                        Single Family/Patio Homes:

• New Listings were 19,654, Up 4.8%
• Sales were 18,159, Up 4.7 %
• Average Sales Price was $491,768, Up 18.4%
• Volume was $8,930,015,112, Up 22.4%

 

Condo/Townhomes:

• New Listings were 2,795, Up 2.8%
• Sales were 2,688, Up 6.8%
• Average Sales Price was $327,364, Up 19.7%
• Volume was $879,954,432, Up 27.9%

 

Now a look at more statistics…

 

DECEMBER 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 3.2%

 

• Median Sales Price for All Properties was Up 18.6%

 

• Active Listings on All Properties were Down 6.8%

 

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

 

housing market FORECAST FOR 2022

Keeping current matters, 12.17.21, CNN, 12.27.21 

 

Experts are saying:

 

• No more record low mortgage rates.  Lawrence Yun, chief economist for NAR expects the 30-year fixed mortgage rate to increase to 3.7% by the end of next year, but he noted that this will still be lower than the pre-pandemic rate of around 4%.

 

• Inventory will remain tight.  Even as more properties became available as the spring buying season heated up this year, there were also more people looking to buy, creating fierce competition and pushing prices skyward.  While the inventory picture is expected to improve in 2022, it will remain limited and grow only 0.3% this year, according to a Realtor.com forecast.

 

• Prices will keep rising.  Home prices rose nearly everywhere in 2021 and while existing homes were up 13.9% nationally (ours were considerably higher), new construction prices nationally were about 19% higher than a year ago.  That was another record.

A group of 20 top economic and housing experts brought together by NAR projected that median home prices nationally will increase by 5.7% in 2022.  (I feel that Colorado Springs will be double that number.) The NAR survey participants said they expect the housing market and broader economy to normalize this year as the Fed tries to tame inflation.

 

• First-time buyers will continue to face challenges.  The prevalence of all-cash offers, few available homes and skyrocketing prices pushed many first-time buyers out of the market last year.  By the end of November, the share of first-time buyers had fallen to 26% from 32% a year before, the lowest level since NAR began tracking in 2008.

“We are creating a divided society”, said Yun.  “People don’t feel like they are participating in what they consider to be American life through homeownership.  All their work to build up savings can feel less meaningful in the face of rising prices.”

 

So, once more with feeling... if you’ve even thought about a new home, there’s no time to waste.  Time is money, as we all know, and waiting to make a move is most definitely going to hit you in the wallet.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 12.23.21

As always, I'm providing you with the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

Please click here to read the report in its entirety and if you have any questions, please give me a call.

 

December 22, 2021

 

HARRY’S HOLIDAY HUMOR

(The way houses are selling here it’s almost not funny, but I couldn’t resist!)

 

 

       

December 21, 2021

 

HARRY’S HOLIDAY GREETING

 

 

December 6, 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 LIKE CHESS…BUYING AND SELLING A HOME TODAY REQUIRES SOME STRATEGIC MOVES

While it’s always been important to have a strategy for your individual situation when you want to buy, sell, or purchase for investment, today’s Residential real estate market requires strategic moves that even a master chess player might find interesting.

This is normally a “quiet” time in the housing market with the holiday season already underway.  However, nothing in the past couple of years has been “normal” and with home prices continuing their upward climb, and mortgage rates likely due to increase soon, folks who might have waited in the past are on the move or getting ready to do so.  

There continues to be a shortage of existing homes for sale even though there are more than a year ago.  New home construction is booming, but prices keep escalating due to lumber increases once again, as well as a shortage of materials.  Demand is so high that builders are “taking names” and the fortunate buyers-to -be have no more than half an hour to make a decision in some cases.  

Needless to say, stress levels are high for both buyers and sellers and that is not likely to change any time soon.  

As you will see later in this eNewsletter, Colorado Springs has gone from # 20 to #14 in the top 100 of the Federal Housing Finance Agency’s third quarter report of “Metro House Price” changes.  

That just tells us what we already know—Colorado Springs and its fabulous work/life balance options is no longer our “little” hometown.  We are growing steadily, and the end is nowhere in sight.  Good for the city’s economy, good for all the new and exciting times to come, but not so good for finding a home at a low price point.  And that hits first time buyers even harder than most.

The good news for current homeowners is that your present home is more than likely worth a lot more than you might imagine.  Therefore, your equity will help considerably with the down payment on a new place.  So even though you will be paying more for the next home, at today’s still low interest rates it’s possible that your monthly output will not increase by much.

The 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 mastered the “strategic moves” necessary to wade through the current “battleground” per se. 

I’ve experienced more than most 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 no longer a given.  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.  

They say the “early bird gets the worm” and those who are starting now rather than waiting for the traditional “spring buying season” will have a head start in making their Residential real estate dreams come true.

To get the ball rolling early, just give me a call and together we can devise the best plan for your individual family situation. 

I can be reached at 719.593.1000 or by email at Harry@HarrySalzman.com  and I look forward to putting my special brand of customer service to work for YOU.

 

NOVEMBER 2021

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

Here are some highlights from the November 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 11.  For condo/townhomes it was 13.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.8% and for condo/townhomes it was 102.2%.  

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

 

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

                        

                       Single Family/Patio Homes:

·       New Listings were 1,201, Up 9.0%

·       Number of Sales were 1,466, Down 1.1%

·       Average Sales Price was $507,507, Up 18.3%

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

·       Total Active Listings are 855, Up 26.7%

·       Months Supply is 0.6, Down 24.7%

 

Condo/Townhomes:

·       New Listings were 198, Up 19.3% 

·       Number of Sales were 229, Down 3.8%

·       Average Sales Price was $336,208, Up 22.1%

·       Median Sales Price was $325,000, Up 23.5%

·       Total Active Listings are 115, Up 49.4%

·       Months Supply is 0.5, Down 13.1%

 

Now a look at more statistics…

 

NOVEMBER 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 9.3%

 

• Median Sales Price for All Properties was Up 17.6%

 

• Active Listings on All Properties were Down 3.4%

 

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 RANKS EVEN HIGHER IN THE Q3 FHFA HOUSE PRICE INDEX

FHFA, 11.30.21

The recently published FHFA House Price Index for third quarter 2021 lists Colorado Springs as #14 out of the top 100 in house price changes during that quarter.  We moved up from #20 in the Q2 report and I would expect us to keep moving up in the future.   

House prices in all 50 states and the District of Columbia rose between the second and third quarter.  Of the nine census divisions, the Mountain region, home of Colorado Springs, recorded the strongest four-quarter appreciation.  

Here is a copy of the Colorado Springs changes:

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

 

LOAN LIMIT INCREASES FOR 2022

The new conforming/jumbo cut-off on mortgage loans is $647,200.  This was a surprise since most lenders expected it to be $625,000, so good news for buyers.

VA loan cutoffs will be at $647,200 as well.

FHA loans in El Paso and Teller counties will be $460,000, while Pueblo will be $420,680.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 11.29.21

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.  

You can click here to read the entire report and if you have any questions, please give me a call.

 

IS THIS A GOOD TIME TO BUY OR SELL A HOUSE?

UBS, 11.2.21, Keeping current matters, 11.18.21

These are questions I’m asked a lot.  My answer is always the same—if you are wanting to move and the numbers can work for you, it’s always a good time to buy and or sell.  In most cases, the decision to purchase a home is one of the most emotional, difficult and financially impactful investments one can make.  

And while I strongly believe each client’s specific needs, wants and budget contribute to the overall answer, it’s still important to consider timing when possible.

The information from several articles I recently read can help answer these questions as well.

 

Is this a good time to buy a house?

Here are five questions that UBS asks clients to consider:

• Is the house being purchased for shelter, a long-term investment, or for a fix and flip?
• What is the anticipated time horizon for living in the house?
• What are the individual’s near-term, medium-term, and long-term liquidity needs?
• Will purchasing the house significantly change one’s lifestyle?
• Should the house suffer a significant decline in value—say 20%--will that change one’s lifestyle?

While there are no right or wrong answers to those questions, answering them tends to remove a substantial emotional component of the purchase decision.  For example, someone who is buying a house for shelter purposes, anticipates owning it for an extended period of time and has the liquidity profile to own the home and maintain their lifestyle, can be less focused on what is the “exact right time to buy”.

On the other hand, someone who is considering a fix and flip, is more liquidity constrained and risks a lifestyle impairment should they not be able to sell the house in a timely manner, might want to reconsider the purchase option.

In addition, it’s also crucial that a house be factored into one’s overall asset and liability profile.  It is very important to include a primary residence in all of your long-term financial planning scenarios.

In short, again, there is no simple answer about the “right” time to buy a house.  Working closely with your financial advisors and a seasoned professional like myself will help you get the answers for your personal situation.

 

Is this a good time to sell a house?

Putting your home on the market now will get you one step ahead of your neighbors who might be waiting for the traditional “spring buying season”.  If you want to stand out from the crowd, this holiday season is the best time to make sure your house is available for buyers.  

The number of existing homes for sale is still historically low and putting your home on the market now will give you the best chance to be in front of buyers competing for these homes.  

As mortgage rates begin to increase next year, more folks will be entering the selling market before the current frenzy ends.  By selling now, your home will get the most exposure and you will be ahead of the game.

Even though it’s the holiday season, don’t think there aren’t a number of potential buyers who are out looking every day.  Today’s buyers are still dealing with a limited number of homes for sale and are competing with each other for their dream home.  When that happens, if your house is one of the few on the market, you may find your home in a bidding war and possibly going for over the asking price.

Creative offers are coming in for most homes these days and chances are you might get one that will waive contingencies and will pay the difference, if any, over the home appraisal.  Making your move to list your home today will get you in ahead of those who are waiting until after the holidays.

 

These are just some of the things to consider when wondering about a good time to buy or sell.  And once again, the best answer I can give you is that if, after all considerations, the time is right for YOU, then most ANY time can be the right time.

November 24, 2021

 

HARRY’S BLACK FRIDAY SPECIAL

 

 

 

November 23, 2021

 

        

November 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.

 

 

SOME DAYS THERE SEEMS TO BE MORE QUESTIONS THAN ANSWERS…

You know, after 48+ years in local Residential real estate, along with my Investment Banking background, I’ve become somewhat of an expert in these arenas.  Some days I wish I had a crystal ball because oftentimes there is no definitive answer to a lot of the questions I’m asked.  

It’s easy for me to understand why Zillow ended its iBuying department.  Buying and selling Residential real estate is not for the timid…or for those with limited experience.

Are prices going to continue to climb?  Are interest rates going to go up as well?  Is it a good time to purchase a home for investment purposes?  Am I better off looking at new construction because of the lack of existing homes for sale? Is this the best time to sell my present home and trade up?

Those are just a few of the questions I field daily.  If I knew all the answers to those inquiries, it sure would make life easier for not only me, but for my clients as well.   

However, I do have some answers that have remained true for as long as I’ve been working in Residential real estate.  

All answers need to first be based on LOCAL statistics.  When you see on national news that home prices are going up or down—always remember they are talking about the U.S.A. in general.  As I’ve been saying for quite some time now, Colorado Springs as a city is seeing spectacular growth.  When the housing crisis enfolded in 2007-8, we were not hit nearly as hard as the rest of the country and thus were able to recover at a faster pace.  

During the recent pandemic as folks were leaving big cities or starting to work from home (WFH), Colorado Springs was the choice of many.  

As more and more companies are moving here and relocating employees with them, those folks are needing places to live as well. 

When you add that to our excellent work/life balance…well, I think you get the picture.

While looking at the local picture is important, the primary place to look is at your individual situation.  

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 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.

Yes, it’s not easy out there in Residential real estate territory these days, but when you’ve got me on your team, you’ll win in the end.  It may take longer than usual to find exactly what you want, but if there’s any way possible, I will work to make it happen for you and your family.

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 any and all of your Residential real estate questions answered. If I don’t have the answer, I sure do know where to get it, and that’s as important as “knowing it all”.

I look forward to speaking with you.

 

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

The National Association of Realtors, 11.10.21 

Median prices of single-family homes across the nation rose double-digits for Quarter Three 2021 in 99% of the 183 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 16.0% to $363.700.

Colorado Springs surpassed that, with the median price of single-family homes jumping 18.6% to $441,200 during the third quarter of the year.  Prices reflect detached, single-family and patio homes but not townhomes or condominiums. 

The median price in the Springs ranked 29^th highest of the cities surveyed.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver and Boulder areas, which makes our city more attractive to potential companies and others wanting to relocate here.

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

To see all 183 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.   To see the qualifying income necessary for mortgages, click here.  

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

 

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

ERAShields, 10.31.21

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

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

HOMES SELLING IN ONE WEEK, FORCING BUYERS TO TAKE RISKS

The Wall Street Journal, 11.12.21

This recent article wasn’t news to me, as I’ve been encountering similar situations for over a year now, but it’s interesting to see that buyers all over the country are also having difficulty in purchasing existing homes for sale in this seller’s market.

According to a survey by the National Association of Realtors, “Homes sales between July 2020 and June 2021 sat on the market for a median period of one week before going under contract.”  That is down from three weeks a year earlier and marks a record low in data going back to 1989.

This rapid turnover helps explain how the number of homes sold rose to multiyear highs during the Covid-19 pandemic, even as the inventory of homes for sale remained so low.

The pandemic sparked the biggest housing boom in more than a decade…for many of the reasons I mentioned before.  

Supply is still constrained, and buyers are having to pounce quickly once they find what they are looking for.  As I’ve told you in previous articles, many buyers have waived their rights to terminate a contract because of a low appraisal or unfavorable inspection.  In fact, several my buyers have bought homes without ever seeing them in person.  

This has been especially true of new construction where there are only so many lots released at a time and buyers must get in line to purchase.  I’ve gone to those sites for my clients and selected lots and home elevations, and we have communicated through Zoom calls so the clients can make a quick decision based on my input.  This is a service I provide at no additional cost to the buyer and can make a difference, especially when time is of the essence.  

One of my recent clients did not get their first choice due to not committing to the lot immediately.  They were able to get their second choice, but the homebuilder required a commitment on the phone with a signed contract emailed immediately thereafter. 

Fortunately, I have good working relationships with most local builders but even that doesn’t always get me to the front of the line.  Lately it’s been via a lottery type of situation and buyers only have x amount of time to commit.  

Whether it’s new construction or purchasing an existing home, the most important thing is knowing your wants, needs and budget before even starting to look.  

After you make those decisions, the next best one is to call me and get the ball rolling.  It’s going to take longer than you might expect and the sooner we start, the sooner you can be living in the home of your dreams.

 

HARRY’S JOKE OF THE DAY:   

 

 

Even though it’s a “corny” joke, there’s a double meaning in here.  

As we approach the Thanksgiving holiday, I always start by giving thanks for my family and you, my clients and friends.  

Have a safe and happy Thanksgiving.