Real Estate Information Archive

 

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.  

June 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’VE BEEN SAYING THIS FOR MORE YEARS THAN MANY OF YOU HAVE BEEN ALIVE…

…and here you go.  For the eighth year in a row, Americans have chosen real estate as “The Best Investment” as reported by Gallop.  And this year, at 41%, real estate earned the highest percentage in the history of the survey!

 

The only drawback in the last couple of years is that supply has most definitely been greatly overtaken by demand and that’s made it difficult for folks to find a new home, most especially first-time buyers.

The historically low interest rates helped ramp up sales and then the pandemic hit, creating a different kind of scenario.  A number of folks decided to stay put and renovate their existing homes.  And with the ease of home delivery of groceries, meals and other necessities, more older folks decided they would be happy to “age in place”.  A lot of others found new wants and needs for their living situations during that same time and started their new home search as early as they were able.  

And then…once more…demand overtook supply, prices of lumber, copper, aluminum and other home materials went through the roof and even the possibility of new home construction became one that would force a much longer than normal wait time, and even without a guaranteed price at that.

When you add that to the fact that apartment rental rates in Colorado Springs are at an all-time high, with the average exceeding $1,300 for the first time, it’s no wonder folks are doing whatever possible to become homeowners or to buy for investment purposes.  

In fact, investment buyers, including those purchasing second homes, accounted for 17% of national homes sales in April 2021, up from 10% a year earlier, according to the National Association of Realtors (NAR).

Job recovery here in the Springs is rebounding faster than the nation and even the state of Colorado.  Through last month, the area has added back all but 4,000 of the 38,700 jobs lost in March and April 2020 and has added 8,800 jobs in the first four months of this year—an average of 2,200 a month.  When you consider that lots of folks are relocating here either to fill some of these openings or because they can work from home and would rather live here, well, you get the picture.  They need a place to call home and are joining all the other folks who are actively looking for a home here.

And according to a senior economist at realtor.com, of the sales in the 250 largest metro areas, Colorado Springs is number 3 in fastest home sales, selling in an average of 12 days!

See where this is headed?  I have been saying for as long as I can remember that if you’ve even considered a move, yesterday would have been a preferable time to start, and many of you heeded my words.  It wasn’t always your first choice, and it most certainly wasn’t as easy and stressless an experience as I like for my clients, but in most cases, we got it done!  After all, they don’t call me Mr. Negotiator for nothing.  

However, as the months go on with so few available homes for sale, it’s a challenge for even a seasoned, knowledgeable real estate professional like me.  But those of you who know me at all know that where there’s a will, I’ll find a way. 

And to quote my friend Robert August who wrote me after my last eNewsletter said:

 

“Another reason not to tarry, when you’ve got Harry…

 

…and to quote The Talmud: “If not now, when?”

 

I couldn’t have said it better myself.  Thanks, Robert!

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 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.

 

MAY 2021

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

Here are some highlights from the May 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 8.  For condo/townhomes it was 4.  

Also in El Paso County, the sales price/list price for single family/patio homes was 103.5% and for condo/townhomes it was 104.3%.  

It’s noteworthy that in May of 2020, we couldn’t show homes due to the pandemic so it is no surprise that the number sales in comparing this year to last would be up considerably.  The numbers aren’t indicative of more available homes or more home sales.

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

 

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

                             (A Big WOW is all I can add here!)

 

                       Single Family/Patio Homes:

·       New Listings were 1,876, Down 3.6%

·       Number of Sales were 1,553, Up 37.2%

·       Average Sales Price was $489,376, Up 24.4%

·       Median Sales Price was $432,095, Up 23.5%

·       Total Active Listings are 582, Down 62.4%

·       Months Supply is 0.4, Down 1.7%

 

Condo/Townhomes:

·       New Listings were 206, Down 18.6% 

·       Number of Sales were 220, Up 46.7%

·       Average Sales Price was $318,936, Up 24.2%

·       Median Sales Price was $310,500, Up 23.9%

·       Total Active Listings are 66, Down 61.8%

·       Months Supply is 0.3, Down 1.3%

 

Now a look at more statistics…

MAY 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 37.0%

 

• Median Sales Price for All Properties was Up 22.6%

 

• Active Listings on All Properties were Down 61.3%

 

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 IS #22 OUT OF 100 METRO AREAS IN HOME PRICE INCREASES

Federal Housing Finance Agency, 5.25.21

In their recently released report, the Federal Housing Finance Agency (FHFA) listed Colorado Springs at number 22 out of 100 top measured metro areas in home price increases over the past year.

As you will see in the chart below, home prices in Colorado Springs rose 15.6% over the past year and rose 3.6% in the last quarter.  That’s in comparison to the U.S. as a whole, where prices rose 12.6% over the past year and rose 3.5% over the last quarter.  The combined Denver/Aurora/Lakewood area came in at number 42.

Here is a look at the Colorado Springs data from 2007 to Quarter 1 2021:

 

A RECORD NUMBER OF HOMES ARE SELLING ABOVE LIST PRICE

Realtor mag, 6.1.21

More than half of homes—51%--are selling for more than the asking price—a record high, according to new research from real estate brokerage Redfin.  A year ago, 26% of homes were selling above asking price.

This again is indicative of the fact that many more people want homes than there are homes for sale.  More home buyers are waiving appraisals so that the sale doesn’t fall through.  In April, 19% of homes had their appraised value come in below the contract price, according to data from CoreLogic.  Over the two previous years, 8% of homes were appraised for lower than the contract price.

“The frequency of buyers being willing to pay more than the market data supports is increasing,” said Shawn Telford, chief appraiser at CoreLogic.

Meanwhile, 24% of homeowners surveyed by realtor.com say they expect to get more than their asking price when they sell, and 29% of sellers plan to ask for more than what they think their home is worth as  well.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, 4.30,21

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.  

You can click here to read the report which was published last week in its entirety and if you have any questions, please give me a call.

May 17, 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.

 

 

NOT YOUR NORMAL SPRING BUYING SEASON…

If you’ve been reading this eNewsletter for the past year or more you certainly will understand when I say once again that the typical “spring buying season” in Residential real estate is no more.  I can’t speak for future years, but for now everything is different.

With folks venturing out more, they are starting to look for the wants and needs they discovered were lacking in their present homes during the last year when they were forced to remain indoors.  Bigger and more elaborate kitchens, home offices, outdoor entertaining areas and more have become prevalent in the search for new homes. 

Even a big snowstorm hasn’t kept buyers from wanting to see homes because they are hoping others might not be out and that would give them an advantage!  I’ve seen so many different scenarios I can’t begin to list them here.  

Buyers are trying everything possible to present offers that sellers will notice and hopefully accept.  And the stress and disappointments are like nothing I’ve witnessed before.  

And that’s where I come in.

A big part of my job is working with my clients 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.  

My 48 years in the local Residential real estate arena have taken me through many different cycles and I’ve learned the ins and outs of making sure my clients are protected and happy with the eventual outcome of their home search.  It may be YOUR first rodeo, but it’s obviously not mine.  I know how to keep the stress levels at an even keel if at all possible and they certainly don’t call me “Mr. Negotiator” for nothing.  

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.

 

3 GRAPHS THAT SHOW WHY YOU SHOULD SELL YOUR HOUSE NOW

Keeping Current Matters, 5.17.21

As I’m sure you’ve heard more than once from others, and numerous times from me, 2021 is the year of the seller when it comes to Residential real estate.  

If you’ve been thinking of moving in order to better suit your changing needs and wants, now is the perfect time to do so.  Historically low interest rates are certainly in your favor, and high buyer demand at present presents you with the leverage to negotiate the best contract terms on the sale of your current home.  

Here’s what is driving the sellers’ advantage and why there is so much opportunity for homeowners who are ready to move this season.

1. Historically Low Inventory

The National Association of Realtors (NAR) explains it this way: “Total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory…Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020.”

Even with the slight rise in number of homes for sale this spring, inventory remains close to an all-time low:

 

High buyer interest has created a major imbalance between supply and demand, but as the slight uptick in inventory shows, sellers are beginning to reenter the market.  Selling your home now enables you to take advantage of buyer demand before more listings come on the market later this year.

 

2. Frequent Bidding Wars

As I’ve been telling you for some time now, bidding wars are becoming the norm as a result of the supply and demand imbalance.  NAR reports that the average number of bids received on the most recently closed sales is 4.8 offers.  This number has doubled since the first quarter of 2020:

 

Buyers facing tough competition when searching for a home are more likely to be flexible and generous in their negotiations.  This gives the seller the chance to choose the best buyer for their needs and be selective about things like time to closing, contingencies, renovations and more.  Working with a seasoned professional like me who is a “certified negotiator” gives you even more leverage in navigating the bidding wars.

 

3. Days on the Market

Today’s sellers aren’t waiting very long to find a buyer for their house either, NAR reports: “Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020.  83% of the homes sold in March 2021 were on the market for less than a month”:

 

Lawrence Yun, NAR’s chief economist explains, “The sales for March would have been measurably higher had there been more inventory…Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”

 

Bottom Line?  If you’ve even been thinking about moving, you can see that it’s a great time to sell your present home.  Call me and let’s figure out the best way for you to make your current Residential real estate dreams come true.

 

COLORADO SPRINGS IS NUMBER 30 IN TOP METRO AREA PRICE INCREASE

NAR, 5.11.21, The Wall Street Journal, 5.12.21

Home prices across the country rose just about everywhere during the first quarter of 2021 and this rapid price appreciation shows little sign of fading anytime soon due to the lack of homes for sale and robust demand.  Nationwide, the median existing-home sales price rose 16.2% in the first quarter to $319,200—a record high in data going back to 1989.

For 182 of the 182 Metropolitan Statistical Areas (MSAs) tracked by NAR, the median sales price for existing single-family homes was higher in the first quarter compared to a year ago.  In 89% of those metro areas, median prices rose by more than 10% from a year earlier.  And the average national monthly mortgage payment rose to $1,067 from $995 a year ago.

“Significant price increases throughout the country simply illustrate strong demand and record-low housing supply,” said Lawrence Yun.  “The record-high home prices are happening across nearly all markets, big and small, even in those metros that have long been considered off-the-radar in prior years for many home seekers.”

Another factor coming into play is the fact that length of time U.S. homeowners are staying put has been steadily rising, some of which is due to concerns about letting potential buyers into their homes during a pandemic.  

A number of buyers are being kept out of the current market, most especially first-time buyers and those with limited budgets who are losing out to all-cash buyers.  According to Yun, “The sudden price appreciation is impacting affordability, especially among first-time buyers.  With low inventory already impacting the market, added skyrocketing costs have left many families facing the reality of being priced out entirely.”

The following chart shows the median sale price of existing single-family homes in the U.S.:

 

Colorado Springs was ranked at number 30 this quarter with median sales price increases year-over-year at 14.3%.  

To see the entire 182 MSAs in alphabetical order please click here.  To see them in order of percentage of median price increase click here.

 

RECORD HIGH COSTS OF BUILDING MATERIALS CONTINUE TO THREATEN HOUSING AFFORDABILITY

NAHBNow, 5.14.21

It’s not just lumber anymore.  The rapidly rising prices for other necessary building materials are causing widespread concerns throughout the housing industry.

While lumber prices, up more than 300% from April 2020, have been dominating the headlines for the past year, the prices for materials like steel, concrete and gypsum products all are climbing at a record pace.

“Steel mill products price volatility is greater than it has been at any time since The Great Recession,” said National Association of Home Builders’ (NAHB) Senior Economist David Logan.  “Over the past three months, prices have climbed 22%.  Perhaps more concerning than rising prices is that the pace of price changes has quickened each of the past nine months,” he added.  

“[Rising materials prices] are significantly driving up prices for single-family homes and apartments,” wrote NAHB Chief Economist Robert Dietz in his bi-weekly newsletter.  “Combined with expectations of rising interest rates, these higher prices place additional pressure on housing affordability, which continued to decline in the first quarter,” he added.

If you are considering new construction the earlier you start the better.  The lack of available homes for sale is not just an “existing home” thing.  Builders cannot keep up with the current demand and with material prices rising daily, prices on those homes are rising quickly as well.  Delivery times are much longer than even in the most recent past and interest rates are not guaranteed to stay this low.  Please call me sooner than later if this is an option you’re considering and let’s see how we can make it work for you.

 

THE MOST COMMON REASON ACTIVE BUYERS CAN’T CLOSE THE DEAL

NAHBNow, 5.11.21

A recent post in the Eye on Housing blog showed that 64% of buyers who were actively engaged in the process of finding a home in the first quarter of 2021 have spent upwards of three months searching for a home without success. 

The most common reason they have come up empty-handed is not because they can’t find a home at an affordable price (32%) but because they continue to lose out in bidding wars (45%), according to survey results from NAHB’s most recent Housing Trends Report.  

This is flipped from a year ago when 40% cited unaffordable prices and only 23% because of offers by other buyers.

 

 

When asked what they are most likely to do next if still unable to find a home in the next few months, 50% of active buyers who have searched for three-plus months will continue looking for the “right” home in the same location—about the same percentage as a year earlier.  On the other hand, 42% say they will expand their search area, an increase from the 34% willing to take that step a year earlier.

And 25% of active buyers will give up until next year or later, up from 16% a year earlier.  

 

I point all of this out for several reasons.  The first is so that your expectations are in line with the Residential real estate landscape of today’s market.  And the second is to reiterate the importance of using a seasoned professional like myself in your active search.  I can’t promise you will get your first, or sometimes even your second choice, but I can promise that I will do my very best to make the entire process one that adds as little stress as humanly possible.  

 

TIPS FOR BUYERS IN LOW-INVENTORY MARKETS

The Wall Street Journal, 5.4.21

Here are a few excellent tips that I’ve employed in recent times that can help make your offer one that stands out:

 

1. Be Flexible on Timing:  Sellers sometimes choose the bidder who is the most flexible on timing.  If the sellers want to stay in the house longer for whatever reason, they may choose the buyer who will let them do that, even if it’s not the highest offer.

 

2. Don’t Wait:  In a low-inventory market, buyers need to act quickly.  That means when a new house comes on the market, drop everything to go see it.  You can’t wait for the weekend.

 

3. Get Creative:  This means you need someone like me who knows where to look for homes that are about to come on the market as well as finding a way to write a contract that gets a second look.

 

4. Work With a Local Lender:  Getting pre-approved and not just pre-qualified is paramount in today’s bidding war environment.  And the strength and reputation of a local lender can go a long way in helping to win that war.

 

5. Pay With Cash, if Possible:  Cash buyers are far more likely to win a bidding war than those who plan to finance their purchase because a deal can close more quickly and easily without the involvement of a bank.

 

6. Consider Waiving Contingencies:  While most real estate agents don’t recommend waiving an appraisal contingency, mortgage contingency or your right to a home inspection, in many markets the practice is now widespread as buyers compete to make their offers the most attractive.

 

7. Consider an Escalation Clause:  A number of my clients have been including these clauses, which stipulate that the bidder will top any other offer up to a certain threshold.

 

HARRY’S THOUGHT OF THE DAY: