Real Estate Information Archive

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: 

May 6, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

WE INTERRUPT OUR REGULAR COLUMN FOR A WORD FROM THE EDITOR (aka WIFE)…

This was too cute a story not to share with Harry’s friends, clients and readers.

The Salzman household, like so many others during the past year or so, has been busy cleaning closets, the basement and just about everywhere else in preparation for some remodeling.  In doing so, we have come across many years’ worth of memorabilia.  When I walked into the office one day, I saw a box that had the above pictured banner sitting on top.  

I could easily ascertain from the year on it that Harry must have been all of nine years old when he won this “award” so I of course wanted the back story.  And this is what he told me:

“You know, when I was young, I knew that in order to be successful in life no one was able or going to hand anything to me on a silver platter.  I was aware quite early that any success I achieved would have to be through my own doing since my parents were not in a position to help financially. I knew that I wanted to be the first in my family to graduate college and I knew I wanted to be the best at whatever I chose to do.

When I was in the Cub Scouts, we supported the Boy Scouts in their annual revenue drive.  We were asked to sell raffle tickets in order to raise money and earn badges.  I was determined to be the best at that.  

I figured out that if I went door-to-door there would be a possibility that no one would be home, and I’d be wasting time. So, I asked my mother if I could skip school one day and go with her to her office building in downtown Phoenix and that way I could go from office to office and hit up everyone who worked in that big building.  She agreed and it was a great success.  

But of course, me being me, I couldn’t rest there.  The following Saturday I asked my mother to drop me off downtown at Walgreens, which at that time had a soda fountain in the store.  I sat at the counter and every time someone came in to eat or purchase a drink, I asked them to buy a raffle ticket from me.

And that’s how I won the “1956 Boy Scout Exposition Champ Salesman” award!”

I have known Harry since he was 13 so didn’t know him at the time he won this, but his answer did not surprise me.  He is one of the hardest working people I have ever known and has been since we first met. He was always striving to be the best and wouldn’t ever settle for less.  I could tell you many more stories of how impressed I was with his tenacity and imagination when it came to sales and you’d love them all, but it would take days.  His ingenuity, his devotion to perfection, his art of negotiation and so much more were prevalent way back then, and he continues to amaze me daily with his “ideas” of how he can do more for his clients.  

Those of you who I have not met are probably thinking, “well, of course she’s saying that because she’s his wife!”  But I’m guessing even if you don’t know me, you probably do know Harry well enough to know that his special brand of customer service is just an ingrained part of him…and now you know it went back to when he was only nine years old.

And if you haven’t yet experienced working with Harry, all I tell you is that he’s been preparing to work hard for you since 1956.  That’s better than money in the bank…but with Harry you’ll get more of that as well.

Thank you for indulging me this story…I knew it wasn’t one Harry would share himself.

 

AND NOW BACK TO OUR REGULARLY SCHEDULED COLUMN…

What can I tell you that you haven’t heard from me over the last several months?  Home values and prices are still going through the roof and interest rates are continuing to remain historically low.  And, unfortunately, there are still very few homes available for resale.  

With apartment rents continuing to rise and interest rates so low, folks are wanting to get into home ownership, many for the first time.  The shortage of available homes for sale, along with higher prices and stricter loan qualifications, especially for first-time buyers, continue to make it difficult to find a home.

Bidding wars with very creative offers are making things even hard for buyers.  Sellers, on the other hand, are oftentimes shocked at what they can get for their present home.  However, finding the next one is presenting challenges that even a few years ago might have been hard to imagine.  

New construction, an option many of my clients have considered in recent days, is booming, but there is a shortage there as well.  More and more homes are being built but builders are finding it difficult to keep up with the demand.  This is especially true in recent times when the cost of construction, including lumber, cement, aluminum, copper and more is going up almost daily.  Home builders are trying new ways to compensate for that, which I will explain later in this eNewsletter.

The Residential real estate market today, and most especially here in Colorado Springs, is not for the timid or uninformed buyer.  It’s more essential than ever to be working with a professional, seasoned broker who knows how to navigate these new waters.

Fortunately for you…you’ve got me.  And they don’t call me “Mr. Negotiator” for nothing.  I’ve been working in the local arena for 48 years this month and have seen most all cycles.  This one is tough for sure, but when you have me on your side you’ve won at least one of the battles.  And for the other battles--you’ve got me fighting them for you. 

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 could take some time so it’s best to start in that direction first.  

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.

 

APRIL 2021

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

Here are some highlights from the April 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 9.  For condo/townhomes it was also 9.  

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

It’s noteworthy that in April of 2020, we couldn’t show homes due to the pandemic so it is no surprise that the number of listings and 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 April 2021 to April 2020 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,879, Up 28.9%

·       Number of Sales were 1,489, Up 22.1%

·       Average Sales Price was $481,857, Up 21.8%

·       Median Sales Price was $425,000, Up 18.1%

·       Total Active Listings are 557, Down 64.9%

·       Months Supply is 0.4, Down 2.9%

 

Condo/Townhomes:

·       New Listings were 217, Up 11.3% 

·       Number of Sales were 221 Up 27.7%

·       Average Sales Price was $324,193, Up 20.6%

·       Median Sales Price was $305,000, Up 19.7%

·       Total Active Listings are 75, Down 62.5%

·       Months Supply is 0.3, Down 2.3%

 

Now a look at more statistics…

 

APRIL 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 21.3%

 

• Median Sales Price for All Properties was Up 19.7%

 

• Active Listings on All Properties were Down 56.3%

 

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

 

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:

 

PREVIOUSLY OWNED U.S. HOMES ARE NOW MORE EXPENSIVE THAN NEW ONES

Bloomberg News, 5.1.21

It’s now cheaper to buy a new home than a previously owned one for the first time in more than 15 years.

With price increases in the broader market due to the lack of available listings both locally and nationwide, the premium for newly built homes vanished last month, erasing the discount traditionally associated with older properties.

Nationally, the median sales price of a previously owned single-family home rose to $334,500 in March, the latest National Association of Realtors data show.  Meanwhile, new properties sold for a median of $330,800 according to a government report, marking a reversal in the differential for the first time since June 2005.

Prices can vary widely each month depending on the composition of properties sold and increased on a year-over-year basis—but the gains were much larger for older homes.  This is due to the lack of available existing homes for sale—with only 900,000 existing homes for sale nationally—down more than 30% from one year ago.  

On the other hand, the number of new homes sold and awaiting start of construction climbed to the highest level since September 2006. 

 

WITH LUMBER PRICES BREAKING NEW RECORDS, BUILDERS ARE OFFSETTING THOSE COSTS WITH ESCALATION CLAUSES

Realtor Mag, 4.23.21, NAHB 4.23.21, The Wall Street Journal, 5.3.21

While the escalating lumber prices are generating fabulous profits for sawmill owners, home buyers, renters and do-it-yourselfers are footing the bill.

Lumber and plywood are flying off the hardware store shelves and being bid up by home builders as prices are reaching record numbers.  On-the-spot prices for two-by-fours and other wood products have also jumped to fresh highs.

When the economy was shut down last year to slow the spread of the coronavirus, sawmills sent workers home and curtailed production.  By April 2020, 40% of North America’s sawmill capacity was shut down.  While U.S. wood product output returned to pre-pandemic levels in December, production remains about 16% lower than the 2006 peak, which is the last time so many houses were being built.

And these price increases are being passed on to consumers.  It’s not only new homes and renovations that are costing more due to lumber prices.  

New apartments being built to help with the lack of available housing for sale are charging higher rents due to the increased building costs.  

While home builders are doing their best to obtain lumber price guarantees from suppliers, they can only get them for around two months at max, and reorders are continuing to cost more.

To offset this and protect themselves from ongoing price increases in the lumber market, more home builders are adding escalation clauses to their sales or construction contracts.

According to the most recent National Association of Homebuilders and Wells Fargo housing market Index survey, 47% of builders said they were “including price escalation clauses in their sales contracts”.  Another 10% are including shared price clauses in their contracts, which are similar to price escalation clauses in that they tie the final house price to the price of building materials.  Paul Emrath, NAHB’s vice president for survey and housing policy research explained, “The difference is that, in the typical shared price clause, the home builder agrees to absorb part of the material price increase, with the home buyer covering the rest”.

 

APARTMENT RENTS RISE WITH PERKS AND DISCOUNTS FADING

The Wall Street Journal, 4.24,21

Americans are now paying more for rent again, ending a period during the pandemic when they enjoyed flat or falling rental prices.

The record low inventory of homes for sale is fueling the rental market and landlords and apartment buildings are able to increase prices nationwide.  

Rising rents add to the mounting evidence that the economy is rapidly gaining strength and analysts are forecasting that the U.S. economy could grow around 7% in 2021, which would be one of its strongest years in decades.

real estate investors believe the rental market is primed for another period of price growth, comparable to the years that followed the financial crisis, when effective rents outpaced inflation.  According to Matthew Lawton, an executive in the capital-markets division at brokerage JLL, “In some markets like Nashville and Denver, they increased more than 10% for multiple years”.

As more people are priced out of the for-sale market during the hottest home sales market in 15 years, they will search for rental properties.  

I’ve got a number of clients who are constantly on the lookout for investment properties, and while they may cost more to buy these days, the monthly rental price they can get for these homes more than compensates for the cost of the home over the long run.

If buying for investment purposes is something you have considered, please give me a call and let’s discuss whether it might be an option for you.  Of course, I recommend that you first talk with your tax and wealth advisors to see if it that’s something viable for your individual financial situation.  

 

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 in its entirety and if you have any questions, please give me a call.

April 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.

 

 

“NEW NORMAL” IN RESIDENTIAL real estate KEEPS EVERYONE ON THEIR TOES…

Just when I begin to think that things in residential real estate couldn’t get crazier…they do.  The current lack of existing homes for sale and the wait list for new construction are hard enough for buyers to comprehend but now more than ever before the “offers” on existing homes need to be especially creative and more comprehensive.

And this isn’t just a Colorado Springs “thing”.  All across the country buyers are encountering not only rising prices and lack of homes for sale, but those who do make the winning bids are those who have real estate professionals on their side who understand exactly what it’s going to take to make certain their client’s offer even gets considered.  Fortunately for you, you’ve got me on your side.  With my 48 years in the local market along with my certification in negotiation and up-to-the-minute knowledge of all things residential real estate, I have a distinct advantage over most.

However, that still doesn’t always allow my clients to get their first “pick” these days.  One of the new additions to contracts that was recently created by The Frascona Law Firm is an “appraisal gap” clause in which the buyers indicate the minimum accepted appraisal they agree to accept in order to make an offer on the home.  What that means is twofold:  the buyer agrees to purchase the home as long as it appraises up to the amount to which they agree to in the contract and that if the appraisal comes in under the offer price, the buyer will increase the size of the down payment in order to offset any decline in the amount of the new mortgage loan caused by the appraised value being less than the purchase price.

This is not a requirement in the purchase contract, it is an additional “provision”; however, without that provision it is not likely that the buyer will get the home they want in today’s highly competitive market.

You might wonder what’s behind this new normal and it’s coming from all directions at present.  The shortage of existing homes for sale is being created by folks deciding to renovate their current home, baby boomers choosing to “age in place”, and folks just simply living in their homes so much longer than in the past.  This has caused the median price of existing homes to reach a 15-year high across the country with prices in March increasing 17.2% over the previous March.  This marks the biggest price increase in National Association of Realtors (NAR) data going back to 1999.  

At present, the U.S. home shortage is nearing 4 million units.  That represents a 52% rise in the nation’s home shortage compared to 2018 and underscores the severity of the deficit.  

With loan rates dropping again this past week to 2.97% for a 30-year fixed-rate mortgage, there are still many potential buyers who are vying for the few existing homes for sale.  For something that should be an exciting prospect, especially one involving one of the largest investments a family might make, the stress involved is certainly not fun.  I’ve always taken pride in trying to keep the stress levels of my clients to a minimum during the buying and selling process, and lately it’s not an easy thing to do.   

In recent months I’ve directed a number of my clients to newly constructed homes when it became apparent that their needs, wants and budget requirements would be better satisfied in that type of situation.  However, now even new home construction availability is considerably tighter than in the recent past and with the rapidly increasing prices of lumber, concrete, copper, aluminum and more—new home prices are going up much faster than ever.

I wish I could paint a prettier picture of the current state of the market, but it’s only fair to tell it like it is. Those of you who know me well understand that in my constant state of “positivity”, I have always done whatever possible to turn a negative into a positive.  Where there’s a will, I do my utmost best to find a way.

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 could take some time so it’s best to start in that direction first.  

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.

 

BUYERS ARE UNDETERRED BY HOME PRICES

RealtorMag, 4.22.22, The Gazette, 4.25.21, Colorado Springs Business Journal, 4.12.21

Even with the existing-home prices surging to a record high in March and sales easing 3.7% nationally compared to February, it wasn’t due to any let-up in buyer demand, but can be blamed on the ongoing housing shortages from a lack of homes for sale.  Sales year-over-year, however, are still up 12.3% according to NAR.

“The sales for March would be been measurably higher, had there been more inventory,” according to Lawrence Yun, NAR’s chief economist.  

Properties typically sold in 18 days—a record low, NAR reported.  “Without an increase in supply, the society wealth division will widen with homeowners enjoying sizable equity gains while renters will struggle to become homeowners”, said Yun.  

With NAR making it a priority to be at the forefront of the anticipated economic revival, “We will continue pushing for an increase in housing construction and inventory, with the goal of helping qualified buyers and countless families achieve the American Dream of homeownership”, said Charlie Oppler, NAR president.  

In Colorado Springs, many homebuyers aren’t holding off on their purchases of new homes.  Through the first quarter of 2021, building permits pulled for the construction of single-family homes in El Paso County were nearly one-third higher than the same period last year, according to reports by the Pikes Peak Regional Building Department.

Despite local resale inventories plunging to their lowest level in at least 25 years, demand remains strong.  Rental rates are rising, mortgage rates are historically low, and folks are wanting to buy homes before they get priced out of the market.  This is all fueling that “new normal” I mentioned earlier.  

The increase in building materials is not simply affecting homebuilders.  Commercial real estate such as apartment buildings and storefronts are feeling the burn as well and those costs are being passed along in the form of higher rental and consumer prices.  That’s causing renters to want to become homeowners sooner than they might have and also driving up the number of those looking for investment property homes for rentals. 

It’s a never-ending merry-go-round at the moment and folks just want to get on before they can no longer afford the ride.

Another thing to add to the equation is that property values in El Paso County get reassessed every two years and guess what?  It’s that time now.  Property values have taken a huge leap since the last reappraisal period and could impact tax bills, which mail on April 30, 2021, accordingly.  

So once more…you get the gist…if you’re ready to at least talk about the possibilities that exist for your individual situation, I’m ready to help.  Just don’t wait too long as it will most definitely cost you.

 

93% OF AMERICANS BELIEVE A HOME IS A BETTER INVESTMENT THAN STOCKS

Keeping Current Matters, 4.14.21

A recent survey of Consumer Finances released by the Federal Reserve, reveals the net worth of homeowners is forty times greater than that of renters.  In case you ever wondered if homeownership is a good investment that study clearly answers your question with a huge YES.

The Federal Reserve Bank of New York noted that 93% of Americans believe buying a home is definitely or probably a better investment than buying stocks.  Here is how the results break down:

 

Bottom line?  

This data shows just how strongly Americans believe in homeownership as an investment and that belief is warranted.  The Liberty Street Economics Blog put it best by saying: 

Housing represents the largest asset owned by most households and is a major means of wealth accumulation, particularly for the middle class.”

April 8, 2021

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

GREAT NEWS FOR CURRENT HOMEOWNERS AND SELLERS…A MIXED BAG FOR BUYERS…AND TOUGH NEWS FOR FIRST-TIME BUYERS

It’s been another wild month in residential real estate.  Homes are appreciating at their fastest rate in 15 years. The shortage of available homes for sale locally, as well as nationally, is creating the best seller’s market in recent years but with that comes a tough time for buyers and most especially first-time buyers.  

A recent article in The Wall Street Journal mentioned that currently there are far more licensed Realtors than there are homes for sale!  That alone tells you that if you’re in the market you need a seasoned real estate professional like me more than ever before since expert negotiation and contract writing skills are an absolute necessity.

There are numerous reasons for the continued increase in home appreciation and the lack of available homes for sale is most likely the number one.  Other reasons include the still historically low interest rates and the current pandemic which has created a number of issues—such as folks not wanting to open their homes for showings yet wanting new homes that meet the wants and needs they discovered lacking in their current homes.

Folks are staying in their homes much longer than in the recent past with homeownership now averaging over 13 years vs. just 7 ½ years a few years ago.  Some older homeowners are choosing to “age in place” rather than downsize or move to a senior living type of environment.

Lower interest rates have let current homeowners refinance their existing mortgage, giving them more disposable income.  

Others are remodeling to meet their current needs which means they intend to stay put for a longer period of time.

However, there is still a group of folks that are ready to move today.  Some of their reasons include the following:

• A decrease in family size—kids have gone off to college, married, or moved into their own homes
• Some older homeowners want to move near family, sometimes to a different city or state
• Corporate relocation
• The need for a larger home due to a growing family
• Wanting to sell and trade up to a larger or nicer home or a different part of town
• Wanting to take advantage of today’s historically low mortgage interest rates

New home construction has become a great option in today’s environment, however the cost of homebuilding materials such as lumber, aluminum, cement and copper have driven up the cost of those homes as well.  

Mortgage loan qualification is getting tighter as well, which is beginning to hurt first-time buyers harder than most.  That creates a need for rental homes and an opportunity for investment buyers.  My investment buyers are constantly on the lookout to add to their portfolios and have even purchased newly built homes in order to attract higher-end and possibly longer-term renters.

As you can see, there are all kinds of things going on.  That’s why you need someone with significant experience who can help you wade through the current residential real estate waters in order to find what you might want, need and can afford for your individual family situation.

Lucky for you—you’ve got ME.  My 48 years in the local residential real estate arena, combined with my Investment Banking background and certification in Negotiation make me especially valuable to assist you with all your residential real estate needs.

If you’ve considered a move, your present home is most likely worth more than you might imagine, and you can use that equity toward a new home.  And with the current low mortgage interest rates, you could possibly make that move without adding too much more to your monthly output.  

However, you might not know about your actual equity and other possibilities unless you ask.

And that starts with a simple phone call to 593.1000 or an email to Harry@HarrySalzman.com to get the ball rolling.  Please call me even if you are considering a move…because you won’t know until you talk it through and see it on paper if this is the right time or right decision for you.

I look forward to speaking with you soon.

 

And now for statistics…

 

MARCH 2021

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

Here are some highlights from the March 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 10.  For condo/townhomes it was 8.  

Also in El Paso County, the sales price/list price for single family/patio homes was 103.4% and for condo/townhomes it was 103.0%.  

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 March 2021 to March 2020 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,620, Down 11.0%

·       Number of Sales were 1,342, Up 5.7%

·       Average Sales Price was $472,931, Up 21.0%

·       Median Sales Price was $410,000, Up 16.3%

·       Total Active Listings are 462, Down 65.2%

·       Months Supply is 0.3, Down 11.5%

 

Condo/Townhomes:

·       New Listings were 254, Up 2% 

·       Number of Sales were 210, Up 14.1%

·       Average Sales Price was $326,829, Up 25.1%

·       Median Sales Price was $303,145, Up 18.7%

·       Total Active Listings are 93, Down 38.8%

·       Months Supply is 0.4, Down 2.7%

Now a look at more statistics…

 

MARCH 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 5.3%
• Median Sales Price for All Properties was Up 16.7%
• Active Listings on All Properties were Down 63.4%

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

  

 

I was thinking about these statistics and decided to call Steve Schleiker, El Paso County Assessor to ask a few questions.  This is what I found out:

 

• In 2020, the total number of Single Family/Patio Home sales was 18,747.
• As of the end of 2020, the total number of Single Family/Patio Homes in El Paso County was 208,615. 
• Therefore, only 8.98% of the total homes in El Paso County were sold in 2020. 
• When compared to the typical average of 15-20% sold, it helped make better sense of all of the above statistics!   

 

RECORD HOME PRICES KEEP MOUNTING

The Gazette, 3.7.21

I’m reprinting a copy of an article Rich Laden wrote for yesterday’s Gazette where he quoted me on the current state of our residential real estate market that I thought you might enjoy.

COLORADO SPRINGS HOUSING AFFORDABILITY RANKS 58^TH AMONG TOP 100

The Colorado Springs Business Journal, 3.30.21

While our housing market is booming, homes in Colorado Springs are still more affordable than in many other U.S. cities, according to the April installment of the RealtyHop housing affordability index.

The Springs market was ranked 58^th in the index, which ranks home affordability for the average family in the 100 most populous U.S. cities.  

Cities were ranked from least affordable (Los Angeles, CA at #1) to most affordable (Detroit, MI at #100).  Colorado Springs ranks a bit below the middle.

Colorado Springs climbed five places in the rankings—in February the city placed 63^rd—which indicates that the average home was slightly less affordable in March than the month previous.

Both Denver (at #37) and Aurora (at #47) were ranked as less affordable than the Springs.

  

PACE OF LOCAL HOMEBUILDING

The Gazette, 4.3.21

As you can see below, local homebuilding is doing its best to keep up with the demand…

 

AND TO ILLUSTRATE WHAT’S GOING ON ALL OVER THE COUNTRY…

The Wall Street Journal, 3.31.21

 

MORTGAGE LENDERS TIGHTENING STANDARDS

The Wall Street Journal, 4.2.21

While the mortgage market is humming, getting approved for a home loan is as difficult as it’s been in years.

According to the Mortgage Bankers Association (MBA), mortgage credit availability, a measure of lenders’ willingness to issue mortgages, is near its lowest level since 2014.

While more home loans are being made than almost ever before, they are almost all going exclusively to borrowers with pristine credit histories and considerable down payments.

Borrowers whose qualifications fall just outside the stellar category are finding fewer lenders willing to approve their application.  This segment would have qualified for a home loan a year ago and are now out of luck, being deemed too much of a credit risk.

The availability of mortgage loans fell as much as 35% year over year in 2020, when lenders wanted to protect themselves from making loans to borrowers who might lose jobs during the pandemic.  While MBA’s mortgage credit index has drifted higher since last fall, it remained about 31% lower in February than the same time last year.

Since strict lending requirements play an important role in keeping the housing market healthy, making sure borrowers can afford mortgage payments is key to limiting defaults.  Ultraliberal lending policies along with loan approvals for people with spotty income histories or lots of debt, helped spark the 2008-09 financial crisis and lenders are not wanting a repeat performance.

With so few available homes for sale, lenders can be choosy about who they lend to and that is unlikely to change until the housing supply increases and demand is lower.

Still, credit requirements should loosen slightly this year as interest rates rise, drying up refinancings, according to Mike Fratantoini, the MBA’s chief economist.

“Since lenders aren’t being flooded with calls to refinance, more of their resources can be used to reach out to first-time buyers for purchases,” he added.

 

UCCS ECONOMIC FORUM DASHBOARD (and more!)

UCCS College of Business, updated 3.26.21

I just received the most recent economic report from the UCCS Economic Forum.  It presents both the big picture of the US as well as our local economic trends, along with charts and graphs.  Please click here to see the 9-page report and if you have any questions, please give me a call.

 

I CAN’T OVEREMPHASIZE THE “VALUE OF SOUND ADVICE” …

As we navigate through unprecedented times, the importance of having someone like me who can help you make objective decisions is invaluable.  My extensive knowledge of many sectors of the Colorado Springs economy provides valuable assistance to my clients.

I’ve been here for every kind of residential real estate cycle imaginable and work with you to establish your personal home ownership goals.  Your goals become mine and it is my greatest privilege to assist you in making one of the largest investments of your life. 

March 22, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

OF COURSE THERE ARE…AND…I’VE GOT THE ANSWERS…

In recent days I’ve discovered that my clients and potential clients have far more questions about home buying and selling than even in the most recent past.  A lot of this is due to information overload from television commercials and internet searches, as well as “mis-information” from various sources.

Is now the time to buy?  Or is it the time to sell?  What about the high home prices?  Is new construction the best option for my needs?  Where are the best schools and recreation areas for my family?  How can I take advantage of the historically low interest rates?  Maybe I should consider a rental property for investment purposes?  Can I really keep my monthly payment lower than I imagine it might be?

And the list goes on.

My answers always begin with two important facts.  The first is that any answer to those questions needs to be personalized for each and every client.  After all, every family has its own individual needs, wants and budget and “one size fits all” just doesn’t cut it when it comes to one of the largest assets you will ever own.   As you might imagine, a home often represents about 90% of the total wealth of a household, so a home purchase decision is of considerable importance.

The second fact, which I cannot over-emphasize, is the importance of using a professional, knowledgeable and seasoned real estate professional like myself in trying to navigate today’s buying and selling market.  I’ve been in the local residential real estate arena going on 48 years now and have witnessed every type of market imaginable.  With my investment banking background and certification in negotiation, I do my best to make the entire process as stress free as possible.

That may seem like a given but believe me, in a market with so few available existing homes for sale it’s more prudent than ever to have a pro on your team.  Existing homes for sale are scarce and are selling as fast as they get listed—more often than not from 2 to 10% over the listing price and with bidding wars. 

Even newly constructed home buyers need assistance in order to get help with elevation and site selection, as well as direction to the financing that is the best fit for their particular situation.    

My long-time experience certainly gives you, my clients and readers, an advantage over many and my special brand of customer service is hard to beat. If it appears that something is not in your best interest, I will tell you that.  Oftentimes a “no” can be a win in the long run.  I’m in this for long-time relationships and will give you my honest opinion always.  It has been my greatest joy to be able to assist children and even grandchildren of previous clients who remember me from when I helped their parents buy or sell a home where they once lived.

If you’ve considered a move--even relocating to another city for a job transfer or to be near family members--or have any questions concerning residential real estate, there’s no better time than now to start the process.

I don’t always have all the answers, but lucky for you, I’m fortunate to know where to get them and sometimes that’s a true “win” for all.  

So, there you go.  You’ve got questions?  I’ve got answers. 

It all starts with a call to 593.1000 or email me at  Harry@HarrySalzman.com . The sooner you ask, the sooner you’ll know, and I think you’ll be happy at what we can accomplish together.  With today’s low interest rates, you might just find that you can easily afford more home than you would expect, and without increasing your monthly output by too much.  No one knows how long these rates will hold as they are beginning to inch up, but at present they are around 3% for a 30-year fixed-rate and 2 3/8% for a 15-year fixed-rate.  When we do the math, you will likely be pleasantly surprised at what you can afford at these rates.

I look forward to talking with you soon.

 

The Wall Street Journal printed three articles this past week that I found to be so pertinent to  many questions I’ve been asked that I thought I would quote from them here:

 

THIS HOUSING BOOM IS DIFFERENT 

The Wall Street Journal, 3.16.21

Today’s residential real estate boom is on its biggest tear since 2006, which was just before the housing bubble burst and set off a global recession.  However, in nearly every meaningful way, today’s market is the inverse of the previous boom.

In today’s market, mortgages are stricter, down payments are higher, and a tight supply is supporting price appreciation.  It’s far more stable than the last housing boom, and poses fewer systemic risks, economists say.  The one downside is that there are more barriers for entry, and it’s more difficult for buyers who aren’t already homeowners to make that first purchase.  

The recent pandemic helped ignite the current boom as a number of urbanites looked to leave crowded cities for cheaper cities or for more space in the suburbs while working from home.  Once the lockdowns began lifting last year, home sales took off and last June sales nationally surged 21% over the prior month, the biggest monthly increase on record going back to 1968.  That milestone lasted only one month, when July sales rose almost 25% from June.

Some of those who bought last year would likely have bought in the next few years anyway but accelerated their plans due to Covid-19.  That could possibly slow down the demand going forward. 

Economists also caution that the shortage of available homes for sale could limit the number of sales this year.  Homebuying demand is so high at present that many new homebuilders are limiting the number of homes they sell at a time to ensure they don’t sell more than they can build.  The rising cost of materials such as lumber, aluminum and copper are also creating higher prices on new homes being built.

However, market watchers are saying that a number of longer-term trends are at play that should keep the housing market hot, or at least steady, even after the pandemic related demand fades.

Millennials, the largest living adult generation, are entering their prime homebuying years and are putting down payments on homes.  Simultaneously, the market is critically undersupplied and new home construction has not kept up with the demand.  Homeowners are also holding on to their houses longer and buyers are competing fiercely for a limited number of homes.

Also different from the boom of 2006 is that mortgage lenders are maintaining tight standards and buyers are drawn to the market by the historically low interest rates, not by easy access to credit.  Rising home values also mean that even if homeowners can’t afford their mortgage payments, they can likely sell their homes for a profit rather than face foreclosure.  

Today’s biggest winners are those who already own their homes, who gained a collective $1.5 trillion in equity in 2020 from a year earlier, according to CoreLogic.  They have also saved money by refinancing their mortgages at record low rates and have started renovation projects or bought second homes.

These same folks are the ones who have plenty of equity to use toward new homes that have the living requirements many found lacking in their present homes during the lockdown.  

Put all together, these longer-term trends are at play and should keep the housing market hot for some time to come.

 

COMMODITIES BOOM HITS HOME / RISING COSTS ADD TO HOME PRICES

The Wall Street Journal, 3.17.21 & The Wall Street Journal, 3.18.21

Just when rock-bottom mortgage rates have made owning a home more affordable, the price of building materials have gone sky-high.

Lumber, one of the biggest costs in home-building after land and labor, has never been more expensive and is more than twice the typical price for this time of year.  Crude oil, a starting point for paint, drain pipe, roof shingles, and flooring, has shot up more than 80% since October.  Copper, which carries water and electricity throughout houses, costs about a third more than it did in the Fall.  

Prices for granite, insulation, concrete blocks and common brick have all pushed to records in 2021, according to the Bureau of Labor Statistic’s producer-price index, which measures the change that producers receive for their output.  Drywall and ceramic tiles are short of records but have also climbed.

What does all this mean?  For one, homebuilders were not prepared when buyers began looking in earnest last April.  With sawmills and factories shut down like most other workplaces, oil wells shut in and refineries idled, suppliers never had a chance to catch up. 

At present, building permits for residential construction are being issued at their highest rate since 2006 and the newest round of stimulus checks are arriving just in time for spring, when Americans tend to house hunt.  

The National Association of Home Builders says that rising lumber prices have added $24,000 to the cost of building the average single-family home and about $9,000 per apartment.  

What this translates to you is that if you’re in the market for new construction you may have to get in line and expect to pay more than you thought.  However, the sooner you begin the search the better off you will be since it’s likely that prices are only going one way for quite some time—and that way is UP.  

If new construction is something you have even considered, call me yesterday.  I can assist in all facets of it, and the time to begin is today!

 

FIRST-TIMERS OFTEN SHOCKED AT HOW MUCH HOME THEY CAN AFFORD

RealtorMag.com, 2.22.21

Many first-time homebuyers are finding that with assistance from parents and personal savings they are able to stretch their housing budget more than they thought possible, according to a recent survey from realtor.com.  More than two-thirds of respondents say they are surprised at what they can afford; 47% say their budget is larger than they thought it would be.

“The dramatic decline of mortgage rates in 2020 was a pleasant surprise for many buyers,” says George Ratiu, senior economist at realtor.com.  “For first-time buyers, the drop in the 30-year mortgage rate from 3.65% in March 2020 to a record low of 2.65% in January has provided unexpected leverage.  Lower rates allowed many buyers to stretch and buy more expensive homes while keeping their monthly budget the same.”

With a housing shortage nationwide, many first-time buyers are still having to compromise on recent purchases and nearly half of the survey respondents say they have been outbid on homes they wanted to purchase.  

However, first-time buyers are also saving for a home faster than they expected.  Half of the respondents say they were able to save for a home in less than three years by putting aside a portion of their paycheck each month, cutting out discretionary spending, and saving lump-sum payments like tax returns.  Also, many are getting help with down payments from their families or friends.  

Considering how high rental rates have gotten, if there is a way, first-time buyers will not only be saving on rental payments but will be building equity of their own.  

 

AND A THOUGHT FROM ELLIOT EISENBERG, THE BOWTIE ECONOMIST:

Domicile Deficit

“Existing inventory of residential homes is currently just 1.04 million units, or 1.9 months of supply, both record lows.  It is partly due to insufficient homebuilding over the past decade, Boomers aging in place, Covid-19 preventing sellers from listing, huge demand by buyers to escape dense cities and decamp to suburbia and more space, low interest rates, forbearance plans, and the seven million single-family homes that have become rentals.”

 

 

March 8, 2021

 

HARRY’S BI-WEEKLY UPDATE

                           A Current Look at the Colorado Springs Residential real estate Market

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

 

 

IF I SOUND LIKE A BROKEN RECORD AT TIMES, IT’S ONLY BECAUSE I WANT TO PUT MORE MONEY IN YOUR POCKET…

As the saying goes, “Time is Money”, and in the case of Residential real estate that could not be more true.

You will see in the monthly statistics below that our local home appreciation is continuing its steady climb, and while it should slow down a bit when we have more available homes for sale, it’s not likely to stop its upward trend.

Mortgage rates, however, are slowing heading up, and while they are still historically low, no one knows how long they will remain at today’s rates.

Put those two things together and voila…there’s no better time than NOW to begin your residential real estate search if you’ve even considered a move or want to buy for the first time or for investment purposes.

Nationally, home ownership is on an upward trend and is likely to remain so for quite some time.  This has been driven by a number of factors such as Millennials wanting to settle down and raise families, folks discovering new wants and needs fueled by the current pandemic, and by rental prices rising so high that home ownership becomes a viable option for those who can make that happen.

We in Colorado Springs are witnessing a lot of new business growth, and with that comes relocated employees who are searching for places to live.  The arrival of Southwest Airlines who will begin flights out of COS this Wednesday is making it much easier for business and personal travel alike—helping folks avoid the long drive to DIA.  

The city’s economic strength is strong thanks to the foresight and planning of Mayor John Suthers and the Colorado Springs City Council as well as Dirk Draper, CEO of the Chamber & EDC and Doug Price, CEO of Visit Colorado Springs, among others. Those of us who live here are fortunate to have those folks working diligently to help our city remain on the “Top 10” lists such as Best Places to Live, Best Places for Small Business, Best Work/Life Balance and many more.

In fact, US News & World Report recently listed Colorado Springs as #4 in the most recent “Best Places to Live in the U.S.” 

The rankings were based on 150 metro areas in the United States as to the quality of life and job market in each area, as well as the value of living there and people’s desire to live there.

According to the article:

 “Colorado Springs’ construction is booming, with new residences popping up alongside quality schools, parks and cultural attractions.  This area, which is filled with natural wonders of its own, has the additional allure of proximity to ski resorts like Aspen and Vail without the associated steep costs of living and high levels of traffic.  And even though its quaint downtown might not have big name stores, Denver’s lineup of storefronts is just an hour’s drive away.”

The article went on to say:

“The overall cost of living in Colorado Springs is slightly more expensive compared with the national average, but residents spend slightly less than the average American for groceries, utilities and transportation.”

Rankings such at that, combined with new options of working from home (WFH) are contributing to the influx of folks wanting to relocate here.  Let’s face it, if you could choose to live most anywhere, Colorado Springs is pretty close to ideal.  We have it all, and like it or not, more and more people are choosing our city as their home as well.  

This brings me back to putting more money in your pocket.

Home appreciation is going to continue to rise and the cost of materials such as lumber, cement, copper and aluminum are rising faster than ever which is affecting not only new construction, but existing home renovations as well.  Mortgage rates aren’t going to remain historically low forever and rental prices will continue to rise due to the shortage of available homes for sale.

Fortunately for you, I’ve been in the local Residential real estate arena for just about 48 years now and I’ve seen most every cycle imaginable.  With a certification in Negotiation and a background in Investment Banking, I can help when it comes to getting you the best deal possible in today’s tough market.  And, if I think something really won’t work for your individual situation, I’ll be the first to tell you that, too.  I’m in business for long term relationships, not for a quick sale.  That’s why I so enjoy selling homes to the children and even grandchildren of former clients who I knew as children!

If you’ve considered a move, your present home is likely worth more than you might imagine, and you can use that equity toward a new home.  With the current low mortgage interest rates, you could possibly make that move without adding too much more to your monthly output.  

However, you won’t know any of this unless you ask.

And it all starts with a simple phone call to 593.1000 or an email to Harry@HarrySalzman.com to get the ball rolling.  Please call me even if you are considering a move…because you won’t know until you talk it through and see it on paper if this is the right time or right decision for your personal situation.  

I look forward to speaking with you soon.

 

And now for statistics…

 

FEBRUARY 2021

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

Here are some highlights from the February 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 15.  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 103.1%.  

Since this is also year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2020 to 2019.  

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

 

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

                        Single Family/Patio Homes:

·       New Listings were 1,349, Up 7.6%

·       Number of Sales were 981, Down 0.4%

·       Average Sales Price was $454,899, Up 17.6%

·       Median Sales Price was $403,000, Up 18.2%

·       Total Active Listings are 462, Down 57.4%

·       Months Supply is 0.5

 

Condo/Townhomes:

·       New Listings were 193, Down 9.8% 

·       Number of Sales were 160, Up 9.6%

·       Average Sales Price was $300,826, Up 18.2%

·       Median Sales Price was $295,050, Up 24.5%

·       Total Active Listings are 71, Down 36.6%

·       Months Supply is 0.4

 

Now a look at more statistics…

 

FEBRUARY 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 down 1.3%

 

• Median Sales Price for All Properties was Up 17.5%

 

• Active Listings on All Properties were Down 56.6%

 

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:

 

UCCS ECONOMIC FORUM DASHBOARD (and more!)

UCCS College of Business, updated 2.26.21

The UCCS 24^th Annual Economic Update was recently published, and I am reproducing just one page here for your perusal.  This is the Residential real estate Indicators and as always, I was one of the people contacted for my yearly forecast of the same.  Here is that report:

 

I also just received the most recent economic report from the UCCS Economic Forum.  It presents both the big picture of the US as well as our local economic trends. Please click here to see the 5-page report and if you have any questions about either this or the above forecast, please give me a call.

 

FEDERAL HOUSING FINANCE AGENCY (FHFA) JUST RELEASED THE FOURTH QUARTER 2020 RESULTS…AND COLORADO SPRINGS IS NUMBER 17 OUT OF THE TOP 100

FHFA , 2.23.21

The recently released report shows that U.S. home prices rose 10.8% over the last year and were up 3.8% in the fourth quarter.  According to Dr. Lynn Fisher, Deputy Director of FHFA’s Division of Research and Statistics, “House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA House Price Index (HPI).” 

“Low mortgage rates, pent up demand from homebuyers and a limited housing supply propelled every region of the country to experience faster growth in 2020 compared to a year ago despite the pandemic.  In particular, house prices in western states and cities saw the highest rates of growth, where annual gains often rose above 10%,” she added.

Some of the significant findings include:

• House prices have risen for 38 consecutive quarters, or since September 2011.
• House prices rose in all 50 states and the District of Columbia.
• Of the nine census divisions, the Mountain region experienced the strongest four-quarter appreciation, posting a 13.3% gain between the fourth quarters of 2019 and 2020 and a 4.6% increase in the fourth quarter of 2020.

Colorado Springs was ranked number 17 out of the top 100 cities in the survey.  Here is a look at how Colorado Springs performed:

 

I apologize for the poor reproduction, but it was the best I could do!  Once more, any questions, please give me a call.

 

COLORADO SPRINGS HOMEBUILDING ON A ROLL

The Gazette, 3.4.21

For the first time since April 2005, single-family homebuilding permits in El Paso County topped the 500-mark last month and there doesn’t appear to be an end in sight.

Some of this is of course due to the lack of available existing homes for sale, however there are numerous reasons—including the new wants and needs that folks discovered they had due to working from home, schooling from home, eating at home more often—and more.  Low mortgage interest rates and high rental rates undoubtedly also contributed to this increase. 

I’ve helped a number of my clients in recent months with the purchase of newly constructed homes.  When it comes to site and elevation selection, as well as finding the best mortgage for each individual situation, I’m the guy to see.  

My good working relationship with a number of local homebuilders is of great benefit to my clients—and did I mention that this comes at no additional cost to you?  Just one of the many services I provide to help make the entire process as stress free as possible.

If new home construction is in your future, or if you are looking to buy for investment purposes as several clients have recently done…just give me a call.  With the cost of building materials rising weekly, the sooner you lock in a price the better.

 

SO, THERE YOU HAVE IT…

I’ve given you a lot of information that, when considered, should get you thinking of what’s best for you in terms of residential real estate.

As I’ve always said, “Knowledge + Implementation = The Best Rate of Return.  And that’s what I get for my clients—The BEST rate of return possible.  

If you’re ready to talk, I’m ready to listen…and then to help you make all your residential real estate dreams come true.

 

FEATURED LISTING:

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

 

February 22, 2021

 

HARRY’S BI-WEEKLY UPDATE

                               A Current Look at the Colorado Springs Residential real estate Market

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

 

 

IF YOU’VE EVEN CONSIDERED A MOVE…NOW IS THE TIME

As the infographic above indicates, mortgage rates are lower than they have been in years.  What it doesn’t show you is that rates reversed course this past week and the 30-year fixed-rate mortgage increased to its highest point since mid-November.  

This recent increase is due to the U.S. economy improving and supply chain shortages causing downstream inflation.  I can’t tell you what’s going to happen even next week, but Freddie Mac chief economist Sam Khater is predicting rates to remain in the low 3 percent range for the year.  

I can tell you that the price of lumber has increased 49% in three weeks to more than double what it was a year ago.  Cement, copper and aluminum are also on the rise.  These costs will be passed on to new construction homebuyers just as quickly, and will then trickle into resales as well.

If you’ve been following my eNewsletters for any length of time you are acutely aware that the Colorado Springs area is similar to the country in general when it comes to the shortage of existing homes for sale. As of yesterday, locally we have a total of 453 single-family homes for sale and a total of 81 others in the condo, patio home and townhome category —in all price categories.  Not an easy situation for potential buyers. 

This, of course is driving up home appreciation and is resulting in bidding wars and offers considerably over list price on most homes—sometimes just hours after a home comes on the market.

It certainly presents some difficulties—especially for first-time buyers.  However, it is just as taxing for those who want to sell and trade up.

Fortunately, you have me.  My almost 48 years in the local residential real estate arena, along with my investment banking background and negotiation expertise gives me an advantage over many other real estate professionals.  And today it is more important than ever to engage a seasoned, knowledgeable professional when are ready to even consider entering the home buying and selling market.

 

• Is this the right time for you?  
• What are your specific wants, needs and budget? 
• Do you want new construction or are you looking for an existing home?  
• Do you have a lender who can provide what you need for your specific financial situation?  

 

These questions and many more need to be answered prior to the start of a home search and I am more than qualified to help you in finding the right answers.  

What I can answer for you right now is this—if you’ve even considered a move, now is the time to begin.  If you currently own a home, it’s likely got more equity than you might imagine.  And even with the slight increase, mortgage interest rates are still historically low.  Therefore, even with the increased home price tags it’s possible your monthly output could be the same or not too much more than it is at present.

Of course, you can’t get any of those answers by simply reading this eNewsletter.  Please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s put our heads together and get started.  

If you are looking to sell and trade up, purchase new construction or an investment property, or a first-time buyer wanting a starter home, contacting me is the first step in making all your residential real estate dreams come true.

 

ALL U.S. METRO AREAS SAW HOME PRICES RISE DURING FOURTH QUARTER 2020

NAR, 2.11.21

Every metro area tracked by the National Association of Realtors (NAR) through the fourth quarter 2020 experienced home price growth from a year ago, according to the latest NAR quarterly report.

Eighty-eight percent (161 areas) of the metros followed by NAR saw double-digit growth.  For comparison, in the third quarter 2020 only 115 metro areas saw such growth.  

According to Lawrence Yun, chief economist for NAR, “The fourth quarter of 2020 presented circumstances ripe for home price increases.  Mortgage rates reached record lows, thereby driving up the demand.”

“At the same time, inventory levels also reached record lows, leading to grim inventory conditions of insufficient supply in the fourth quarter,” he added.  “Although tourism took a major hit throughout 2020, our data shows that vacation housing still did well in terms of sales.  Many people purchased in these areas because they found themselves with new work-from-home freedoms.”

As you might have guessed, Colorado Springs was right up there—with a 15.2% increase in median existing-home prices in the fourth quarter 2020 over fourth quarter 2019.  

In terms of median home prices, Colorado Springs placed 31 out of the 183 Metropolitan Statistical Areas (MSAs) surveyed.  Our prices will continue to rise due in part to the lack of available homes for sale, the bidding wars and offers considerably over list price that we have witnessed in the past year.

The pandemic and work-from-home (WFH) opportunities are also bringing more and more folks to our city because of our notorious outdoor activity opportunities, more suburban space, and cleaner air.  As a longtime resident, at times I wish we could slow this down a bit, but I am aware that progress in this area won’t be slowing down any time soon.  I couldn’t imagine living anywhere else, and more and more folks are finding they feel the same.

If you are interested in seeing the entire NAR Fourth Quarter 2020 report in numerical order, please click here.  For an alphabetical listing, please click here.  And, for the first time, NAR has also published the report by “Qualifying Income Based on Sales of Existing Single-Family Homes’ for these same areas.  To view that, please click here. 

As always, if you have any questions, please give me a call.

 

COLORADO SPRINGS IS NUMBER 17 ON MILKEN INSTITUTES BEST-PERFOMING CITIES LIST

The Gazette, 1.19.21

Coming in at number 17 on the Milken Institutes, annual Best-Performing Cities list, Colorado Springs jumped 19 spots over last year.  This ranking is the city’s highest-reaching in the 22 years since the California-based think tank has been publishing these rankings.

This year the institute added factors in the ranking for housing affordability and household broadband access, which it said was “an effort to more effectively reflect the inclusiveness of local economies”.  The index also measures jobs, wages and high-tech growth.

Colorado Springs has continued to move up in the rankings—to 36^th last year from 58^th in 2018, and 90^th in 2017.

 

 

IT’S A SELLER’S MARKET AND BUYERS ARE SNATCHING UP NEW LISTINGS AS QUICKLY AS THEY’RE AVAILABLE

RealtorMag, 2.19.21

As I’ve been saying for over a year now, it’s going to stay a seller’s market until we have more homes for sale.  NAR chief economist Lawrence Yun recently said, “Home sales could easily be 20% higher if more homes were for sale”.

He added that “Home sales continued to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market”.  

I can attest to this and it’s one of the reasons I’ve suggested that if you have even thought about selling your home, NOW is the time.  You will get the best price ever and likely more than you might imagine.  It is certainly worth your time to give me a call and see how together we can find a way to upgrade your current living situation to fit your present needs and wants—and at these low interest rates your monthly output might not increase by as much as you think.

Here is a look at the key indicators from NAR’s national existing-home sales report, reflecting January sales data:  (for local information, please give me a call)

 

Home Prices:  The median existing-home price for all housing types in January was $303,900--a 14% jump over a year ago.

 

Inventory:  Total housing inventory at the end of January was 1.04 million units, down nearly 26% from a year ago.  Unsold inventory sits at a 1.9-month supply at the current sales pace.

 

Days on the Market:  Properties typically remained on the market for 21 days in January, down from 43 days a year prior.

 

First-time Buyers:  First-time buyers comprised 33% of sales in January, up slightly from 32% a year earlier.

 

As you might imagine, our local numbers are higher in the median price category and are mostly selling for over list price.  Again, please give me a call for further explanation.

 

 

 

February 7, 2021

HARRY’S BI-WEEKLY UPDATE

                            A Current Look at the Colorado Springs Residential real estate Market

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

 

IT’S SUPERBOWL SUNDAY…

…and I thought I’d start your day with a “Super” eNewsletter from your “Super Realtor”—me!  In fact, I was again named to the National ERA 2020 “Leader’s Circle”, having demonstrated my super abilities in working with clients.  Please enjoy this eNewsletter…and then enjoy the SuperBowl later today.  Go Chiefs!  Go Bucs! (you didn’t think I’d show a preference for anyone but the Broncos, did you?)

 

 

 

THE SEARCH FOR HOMES CONTINUE…BUT YOU’VE GOT A SECRET WEAPON…AND I NEVER GIVE UP

You heard that one right!  It’s a tough out there in the residential real estate world but lucky for you, I’ve been wading through these home wars for almost 48 years and know the ins and outs of most all cycles. That, combined with my Investment Banking background, gives me a considerable heads up on the competition and helps me provide possible solutions that others may not know exist.  

Quite honestly, this cycle is unlike any we’ve historically seen, so working with a knowledgeable, professional and trustworthy real estate broker like myself is of utmost importance in making any and all of your residential real estate decisions.

As you will see in the statistics below, there is a record low of existing homes for sale in our area, and according to Lawrence Yun, chief economist for the National Association of REALTORS (NAR), things are not likely to change much in the coming year.  He is forecasting for the USA in general, and things here in Colorado Springs will not only mirror the rest of the country but will likely be even tighter as so many folks are wanting to relocate here. Like most things, it’s a matter of supply and demand and in this case, existing homes for sale cannot meet buyer demand.  It looks to be a seller’s market for some time to come.

With so few available homes for sale, when one comes on the market it often is under contract that same day, after bidding wars and at a cost considerably over list price.  I’ve seen as many as 43 offers on lower priced homes. Crazy world we live in and one that can make it hard to make a move for you and your family.  It’s especially hard for millennials and first-time buyers who don’t have the down payment or the credit history to qualify for those higher priced homes.

What to do?  Knowing what you want, need and can afford is the best place to start.  The fast-paced decision making today requires you to do some homework so you can move quickly when you find the “one” you want.  And oftentimes in today’s low interest environment, you can possible afford a higher priced home than you might imagine since the monthly payments at these low mortgage interest rates are keeping monthly costs in check while providing folks with more home for the money.  

Mortgages for home purchases across the country have reached record highs, but if you are a buyer in most any price range, don’t get too hung up on the price of a home—look at look at the actual out of pocket monthly costs to determine what you can afford.  

Colorado Springs-area homebuilding is the hottest it’s been since 2005 and this year is already off to a fast start.  A number of my clients have looked in that direction lately and I’ve been able to provide them with assistance in home and site selection as well as directed them to a lender that suits their individual situation.  These homes continue to rise in price as well due to the price of lumber and other materials. 

The importance of matching the right lender to the buyer cannot be over-emphasized.  Recently I had a client who I helped with the purchase of a newly constructed home.  The lender was specified by the builder and this created a number of problems for the buyer due to the lack of due diligence on the part of the lender.  This particular lender didn’t honor the performance dates in the sales contract, and it caused additional stress for my buyer, something I work hard to avoid whenever possible. 

And when it comes to new construction, I’ve been finding that there are a number of choices in most price ranges that can provide families just what they are looking to buy.  I’ve even had some investment clients purchase newly constructed home as rentals, because with low interest rates they are able to find renters who would much rather have a home than an apartment for the same amount of money and this can provide positive cash-flow in the right situation.

Any and all of these options are out there, and it can be tough to figure out the way to go.  That’s why you’ve got me.  Bring me all of your wishes, dreams, wants and needs, along with your budget requirements and let’s get to work.  Together we will get it done…and done right…for you and your family.

And it all starts with a simple phone call to 593.1000 or an email to Harry@HarrySalzman.com to get the ball rolling.  Please call me even if you are considering a move…because you won’t know until you talk it through and see it on paper if this is the right time or right decision for your personal situation.  

I look forward to seeing you soon.

And now for statistics…

 

JANUARY 2021

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

Here are some highlights from the January 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 15.  For condo/townhomes it was 8.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.7% and for condo/townhomes it was 101.8%.  

Since this is also year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2020 to 2019.  

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

 

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

                       

                        Single Family/Patio Homes:

·       New Listings were 1,112, Down 16.6%

·       Number of Sales were 971, Up 6.0%

·       Average Sales Price was $433,581, Up 15.5%

·       Median Sales Price was $385,000, Up 14.3%

·       Total Active Listings are 460, Down 61.3%

·       Months Supply is 0.5, Down 10.2%

 

Condo/Townhomes:

·       New Listings were 160, Down 20.0% 

·       Number of Sales were 155, Up 14.0%

·       Average Sales Price was $285,746, Up 6.3%

·       Median Sales Price was $279,282, Up 15.2%

·       Total Active Listings are 64, Down 49.2%

·       Months Supply is 0.4, Down 3.5 %

Now a look at more statistics…

 

JANUARY 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 7.4%

 

• Median Sales Price for All Properties was Up 13.8%

 

• Active Listings on All Properties were Down 58.6%

 

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:

real estate IN 2020:  PLENTY OF REASONS FOR OPTIMISM

Realtormag, Jan-Feb 2021

I recently read an article by Lawrence Yun, chief economist for NAR, which I found to be enlightening as well and encouraging, so I wanted to share some insights with you.  I will quote some excerpts below:

“The housing market was a spectacular surprise in 2020—and the positive trend will continue this year.  Home sales in 2021 are expected to rise by around 10%.  Home prices will also climb, but I expect more moderate increases than we’ve seen, a break for first-time buyers.  Mortgage rates will continue to be favorable, staying at or near historic lows of 3% on average.  The labor market will strengthen, expecially as vaccines become widely available and life moves toward normal…

…Low mortgage rates have been the key reason for the housing market’s strong performance in the midst of the pandemic and high unemployment…. And while mortgage rates are highly influential, they’re not the only factor affecting home sales.  Given the substantial commitment and financial dollars at stake, consumer confidence and life-cycle events such as marriage, changes to family size, and retirement all play a role…

…Owners who were content with their home before the pandemic are thinking about the benefits of another bedroom to use as a dedicated home office or are considering relocating to the countryside, knowing that commuting to downtown offices every day has become a thing of the past.”

Mr. Yun shared a graph of his forecasts:

I’ve been acquainted with Mr. Yun and have found him to be “right on” when it comes to predicting real estate trends and forecasts.  I, too, believe that 2021 has the potential to be a wonderful year for residential real estate…as long as we get more homes on the market and get some of the pandemic restrictions behind us.  

 

UCCS ECONOMIC FORUM DASHBOARD

UCCS College of Business, updated 1.29.21

I just received the most recent economic report from the UCCS Economic Forum and wanted to share the statistics with you, as always.  It presents both the big picture of the US as well as our local economic trends.  trends.  Please click here to see the report and if you have any questions, please give me a call.

 

BUYERS MUST BE READY TO ACT QUICKLY

RealtorMag, 2.4.21

Once again, a reminder that in this fiercely competitive market with low inventories and escalating prices, it is essential to have answered all your questions concerning wants, needs and budget requirements.  Pre-approval as always, is imperative.  And tenacity is equally important.  It may take a while, but with me by your side you can know I will do my very best to keep the search as stress less as possible.  

Just remember—keep all your options open—and when you find what you want—there’s no time to “think about it”.  It’s most definitely one of those “if you snooze, you lose” kind of things.  I wish I could tell you differently, but please be forewarned.  

And don’t despair…we WILL find you what you want…it just might take a bit longer…or a few detours…to get there!

 

ON A SWEET ENDING NOTE…

 

January 25, 2021

 

HARRY’S BI-WEEKLY UPDATE

          A Current Look at the Colorado Springs Residential real estate Market

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

 

LOTS TO THINK ABOUT IN TODAY’S HOUSING ARENA

I’ve been a fixture in the local residential real estate community for going on 48 years now and have gone through a lot of different cycles, and this past year has certainly reconfirmed to me that change is not only inevitable…it’s a constant in the business of buying and selling homes.

The housing industry in general has been seeing new trends, most related to the current pandemic, and it appears that as we rethink the ways in which we work, live, educate and entertain, home needs and wants are also rethought.

As you might imagine, working from home (), home schooling and eating “in” more than in the past has created the need for more home office space, larger kitchens, more “privacy”, and greater outdoor entertainment areas.  Some folks have been busy with home renovations while others have been looking for properties to better suit their current needs and wants.

With record lows in existing homes listed for sale, home price appreciation is continuing its upward trend.  When coupled with the unimaginably low interest rates we are currently witnessing and rental prices also trending upward, it’s no surprise that homes are selling as soon as they hit the market—and creating bidding wars and selling prices considerably over listing price as well.  

What to do in this kind of market becomes the question if you are considering a move.  The answer is simple.  Call me!  For each individual situation—wants, needs, and budget—there is an personalized solution—and I am here to get you through the current residential real estate “maze”.  

Since it’s obviously still a seller’s market, one option is selling your present home and buying one that fits your needs today and for the foreseeable future.  As you might imagine, it’s imperative to know where you want to move because your present home will undoubtedly sell much quicker than you could even imagine.  Sometimes it’s possible to lease it back from the buyer until you are able to make your move, but that is not always an option.  Timing is everything when it comes to moving in today’s market.

New home construction was strong in 2020, looks to continue that way into the foreseeable future with new home prices continuing to rise as well.  This has been a viable option for a number of my clients and my good working relationship with a number of local homebuilders helps a lot. I can assist with site and home selection, as well as making certain that you can get the best financing to fit your individual needs.  

And speaking of new construction, this has also become an option for some of my “investor” clients who have faced the same lack of available homes for purchase as rental properties.  Let me give you a recent example of a home that in the past might not have been considered for a rental property.

My clients purchased a newly constructed home at a price of $507,000 with a down payment of 25%.  They were able to get an amazing 30-year fixed-rate mortgage (and non-owner occupied at that) for 2.75%.  They were also able to include landscaping front and back yards, rear fencing and window coverings in the loan amount.  That gave them a total monthly payment (PITI) of less than $2000.

Their property manager has indicated that the home should be able to rent for $2500-$2600 a month, thus giving them an immediate positive cash flow.  Of course, being a new home, they also have the reassurance of little or no maintenance for some years to come.

At this rental price point my clients should be able to find a great tenant who will not only take good care of the home but might choose to live there for a longer time period.  A win-win for all.

With many new companies moving to Colorado Springs, there are going to be lots of folks relocating and wanting a place to call home.  Most will be in the rental market until there are more homes for sale since new construction can’t happen overnight, and apartment living is not practical for some.  

Where is this narrative going?  

If you are looking to purchase a home for investment purposes, I’m your guy.  Not only do I put my own money where my mouth is and have owned investment properties for many, many years, I am able to help you figure out the best way for your situation.  However, since I do have an investment banking background, I am NOT a tax advisor.  So please know that you should always talk to your tax advisor prior to investing in residential real estate—or making any investment that could affect your individual tax situation.

For those of you with children or friends looking to buy for the first time, here’s an example of what happened to me just yesterday. A client was referred to me by her father.  She has always been a renter and wanted to buy but needed a starter home.  She was pre-approved for a loan up to $240,000, and as you might guess, that put her (and I) in an especially tough situation considering how few homes there are in general, let alone in that price range.  We looked at four homes and waited in line to even get in to see the homes.  After making an offer on a townhome listed at $185,000, I found out that we were offer number 43.  The accepted offer was $240,000, and although our offer was considerably over list price, we weren’t even in the ballpark.  

In cases such as these, sometimes it helps if a parent or other co-applicant can step up so that the buyer is able to qualify for homes in a higher price range.  Oftentimes the current rental payment of the potential buyer would allow them to buy more home for the money and not increase their monthly output, but on their own they might not qualify for the higher loan amount.

An important reminder:  No matter if you’re buying for you and your family or for investment purposes, don’t let the price point of a home get in the way of your decision.  The current low interest rates mean your monthly payment will likely be far less than you might imagine.

There you have it.  

While the market is tight and homes are not so easy to come by, I’m the guy who can steer you in the right direction to achieve your personal residential real estate needs and wants.  And it starts with a simple phone call.

I can be reached at 593.1000 or by email at Harry@HarrySalzman.com and I look forward to speaking with you. Remember—the sooner you contact me, the sooner you will be on your way to a new future in residential real estate. As the sign above my desk says, I’ll get it done:

And as my clients can attest…if it’s at all possible…I WILL get it done!

 

DECEMBER 2020 LOCAL MARKET UPDATE

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

Here is the December 2020 Local Market Update for both El Paso and Teller counties that wasn’t available when the last eNewsletter was published.  

You can 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:

NOW MAY BE THE RIGHT TIME TO SELL YOUR HOUSE

Keeping current matters, 1.19.21

The housing market made an amazing recovery last year and is now positioned for an even stronger 2021.  Record low interest rates are definitely a driving factor and buyer demand across the USA is incredibly strong, and even more so in Colorado Springs.

I mentioned earlier, this is NOT the case on the supply side.  Here is a breakdown by states and you can see just how strong the demand is right here in Colorado:

 

 

As the maps show, buyer traffic is high, but seller traffic is low.  With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand.

What does all this mean for buyers and sellers?  

Buyers need to remain patient in the search process and be ready to act immediately once they find the right home since bidding wars and offers over list price are becoming the norm in this type of market.

Sellers may not want to wait until spring to put their houses on the market this year.  With such high buyer demand and such a low supply, now is the perfect time to sell a house on optimal terms.

Bottom Line?  If you’ve even considered a move, NOW is a great time to begin the process.  Call me today and let’s see how we can make your residential real estate dreams come true.

 

SOME REASONS WHY THE housing market IS SO TIGHT AT PRESENT

The Wall Street Journal, 1.22.21

The current shortage of available listings began more than a year ago and while it was not helped by the pandemic, there are a number reasons that have contributed to this.

Americans are staying in their homes longer than in the past, with the typical homeowner in 2020 having remained in place for 13 years.  This is in contrast to the 8.7 years that was typical in 2010.  About one in four U.S. homeowners have lived in the same home for more than 20 years according to a new study by Redfin Corporation.  

Homes sales across the country soared last year, reaching their highest level in 14 years, as Americans were looking for a larger home where they could work remotely more easily.  

But Covid-19 concerns had the opposite effect among potential sellers as a fear of strangers entering homes prompted some to cancel or delay plans to list their homes.

Others were concerned about finding a new home in a competitive market or refinanced at the considerably lower interest rates available.

Many baby boomers are staying in their homes and older folks are finding that they can “age in place” rather than move to “senior living” communities.  

All in all, this is creating not only the housing shortage, but contributing to the faster increase in home appreciation and resulting higher sales prices.

Once again…with feeling…if you are even simply dreaming of a new home—NOW is the time.  Waiting will cost you more in the long run and interest rates are not likely to remain this low forever.

 

2021’S SEVEN BIGGEST HOUSING ISSUES ACCORDING TO real estate PROS

Realtor Mag, 1.20.21

1. Inventory shortages.  Throughout the U.S. and most especially here in Colorado Springs.

 

2. Widely distributed vaccines to boost consumer confidence.  This should encourage more sellers to list their homes and help offset the inventory challenges.  It could also help businesses reopen fully and give more Americans added job security and the confidence to enter the housing market.

 

3. Some homes will be lost to foreclosure.  While there is likely to be an increase in foreclosures due to an end of forbearance and stimulus plans, growing home equity may help homeowners sell in a strong market if they are facing foreclosure.

 

4. Low mortgage rates will continue to drive demand.  The low interest rates are causing renters to speed up their plans to purchase a home, current homeowners are opting to trade up faster and older adults are downsizing sooner—all due to the low interest rates.  Mortgage rates will likely increase as soon as more people get the vaccine and the economy improves, so folks are wanting to take advantage of the low rates available now.

 

5. A permanent shift to remote work could encourage more moves.  Larger home offices and more private space will be a concern as many employers are considering at least a partial WFH situation for employees.  

 

6. Virus surges won’t lead to further market panic.  The surprise element of the pandemic has passed, and the real estate market is better prepared for virtual showings and are able to transact business while being socially distanced.  

 

7. Affordability challenges persist and tax credits may help.  As affordability issues mount, lawmakers are working to come up with solutions, most especially for first-time buyers.  The proposed $15,000 down payment tax credit for first-time buyers, which, as proposed, will be able to be used at the time of purchase, has been proposed as an extension of the Recovery Act’s temporary tax credit.