August 27, 2012
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

US AND COLORADO SPRINGS NEW-HOME SALES RISE TO MATCH 2-YEAR HIGH
The Gazette - August 23, 2012 12:02 PM & The Wall Street Journal – August 22, 2012

Sales of new homes in the United States rose 3.6 percent in July to match a two-year high reached in May, the latest sign of a steady recovery in the housing market.

The Commerce Department said Thursday that new-home sales reached a seasonally adjusted annual rate of 372,000. That's the same as in May, which was the highest since April 2010. Local experts agree that the report indicates a durable housing recovery is underway.

In Colorado Springs, home prices and sales rose again in July from a year earlier, more signs of an improving single-family housing market. Year-over-year prices have risen for five straight months, and July’s median price ($223,950), was the highest for any month since July 2008, according to PPAR figures.

Local home sales also rose in July — totaling 973, or a 21.9 percent increase from the same month last year. (Some industry experts speculate July’s increase was inflated somewhat since home sales in late June probably weren’t recorded until the next month because the Waldo Canyon fire forced the temporary closing of the El Paso County Clerk and Recorder’s Office.)

Builders, meanwhile, are growing more confident because they're seeing more traffic from potential buyers. An index of builder confidence rose to its highest level in five years in August.

Local builders responded by applying for the largest number of building permits in nearly four years last month.

Each new home built creates an average of three jobs for a year and generates about $9,000 in tax revenue, according to statistics compiled by the National Association of Home Builders.

The housing market is making a recovery in part because homes are more affordable: Mortgage rates have fallen to near-record lows. Housing prices are about one-third lower than at the peak of the housing bubble in 2006. Those trends have helped lift sales of both new and previously occupied homes.

One factor holding back sales is that there aren't many newly built homes available. New-homes for sale dipped last month to 142,000, the lowest on records dating back to 1963. (A six-month supply is generally considered healthy by economists. At the current sales pace, it would take only 4.6 months to exhaust the July supply.)

In every aspect, Colorado Springs is showing a healthy increase in home-sales and home-prices. Most cities in the US envy our numbers.

Better call us now to discuss buying your new home, before prices and mortgage interest rates both start to rise even further.

Call at 598-3200, or, 800 677-6683 (MOVE).


FANNIE SAYS HOUSING SHOWS SIGNS OF 'DURABLE, LONG-TERM RECOVERY'
Daily real estate News | Wednesday, August 22, 2012

Housing is the one bright spot in our economic recovery, according to Fannie Mae’s August 2012 Economic Outlook.

Home sales are projected to be 9 percent above year ago levels, and home prices are expected to continue to rise, according to Fannie Mae economists. A shrinking inventory of for-sale homes on the market has also led to a gradual pickup in homebuilding in many housing markets across the market.

Still, Fannie economists caution that the pace of the real estate market recovery will likely stay modest, due to factors like tight credit standards and a high number of foreclosures that continue to plague many markets. Fortunately, our Colorado Springs foreclosure picture continues to look brighter than the national outlook.

Doug Duncan, Fannie Mae’s chief economist, said in a public statement, “We continue to see positive trends in the housing sector, which is showing signs of a durable, long-term recovery."

It will never be a better time to buy your new home. Give us a call at 598-3200, or, 800 677-6683 (MOVE).


BUYER DEMAND GROWS FOR NEW HOMES
Daily real estate News | Friday, August 24, 2012

While sales of newly built single-family homes is on the rise, buyers are finding fewer choices as inventory sinks to a new record low, the Commerce Department reported Thursday.

New-home sales rose 3.6 percent in July to 372,000-unit annual rate — matching a two-year high that was set in April. New-home sales are up 25.3 percent over year-ago levels. This is further evidence that consumers are becoming more confident in local housing markets as they look to take advantage of today's very favorable prices and interest rates.

Still, inventories remain low as builders have been leery of starting too many projects. The inventory of new-homes for sale reached a record low of 142,000 units last month.

“Unnecessarily tight credit conditions are keeping builders from being able to replenish supplies as consumer demand improves," says NAHB Chief Economist David Crowe.


MORTGAGE RATES ARE ON THE WAY UP
Daily real estate News | Friday, August 24, 2012

Following several positive reports this week of a housing market gaining momentum this week, fixed-rate mortgages inched higher, Freddie Mac reports in its weekly mortgage market survey. This is the fourth consecutive week that mortgage rates have inched higher after reaching all-time lows just a month ago.

Here’s a closer look at rates for the week ending Aug. 23:

• 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.7 point, rising from last week’s 3.62 percent average. A year ago, 30-year rates averaged 4.22 percent.
• 15-year fixed-rate mortgages: averaged 2.89 percent, with an average 0.7 point, rising slightly from last week’s 2.88 percent average. Last year at this time, 15-year rates averaged 3.44 percent.
• 5-year adjustable-rate mortgages: averaged 2.80 percent, with an average 0.6 point, increasing from last week’s 2.76 percent average. Last year at this time, 5-year ARMs averaged 3.07 percent.
• 1-year ARMs: averaged 2.66 percent, with an average 0.4 point, dropping from last week’s 2.69 percent average. A year ago, 1-year ARMs averaged 2.93 percent.


HOME PRICES POST STRONGEST GROWTH SINCE 2006
INMAN NEWS -Wednesday, August 22, 2012.

NAR states that July inventory is down 24 percent from a year ago. Demand for homes grew faster than the inventory of homes for sale in July, helping push the national median price of existing homes up for the fifth month in a row.

The National Association of Realtors said today that the national median price of existing homes was up 9.4 percent from a year ago in July, to $187,300 -- the strongest annual gain since January 2006. The last time the national median home price posted five consecutive months of annual gains was January to May of 2006.

Sales of existing homes -- resales of single-family homes, townhomes, condominiums and co-ops -- were up 2.3 percent from June to July, to a seasonally adjusted annual rate of 4.47 million. That's a 10.4 percent increase from a year ago.

"Mortgage interest rates have been at record lows this year while rents have been rising at faster rates," said NAR Chief Economist Lawrence Yun. "Combined, these factors are helping to unleash a pent-up demand."

Yun said sales "could easily be much stronger" -- in a more "normal" range of 5 million to 5.5 million per year -- if not for "abnormal frictions" such as tight lending standards and shrinking inventory.

Although the number of existing homes on the market was up 1.3 percent from June to July, to 2.4 million, that represents a 6.4-month supply of homes at July's faster pace of sales, down from 6.5 months of supply in June. And looking back a year, listing inventories were down 23.8 percent, when there was a 9.3-month supply of existing homes for sale.

Analysts generally consider a six-month supply of existing homes to be a healthy balance of supply and demand. More than that indicates that sellers significantly outnumber buyers, which puts downward pressure on prices.

Writing on the blog Calculated Risk, Bill McBride noted that while the annual rate of sales in July was slightly below expectations of 4.5 million, "those focusing on sales of existing homes, looking for a recovery for housing, are looking at the wrong number. For existing-home sales, the key number is inventory -- and the sharp year-over-year decline in inventory is a positive for housing."


THE DATE IS GROWING NEARER FOR THE 16th ANNUAL SCEF FORUM - CALL NOW FOR RESERVATIONS !
The College of Business and Administration and Graduate School of Business of the University of Colorado at Colorado Springs has scheduled the 16th Annual Southern Colorado Economic Forum for September 28, 2012 – 7:00am to 11:30am at the Antlers Hilton Heritage Ballroom, in downtown Colorado Springs.

This year will feature a detailed presentation on “Economics in the Pikes Pike Region and the Outlook for the next 12 Months” by Fred Crowley, Ph.D and Tom Zwirlein Ph.D, from UCCS.

Also featured will be a very timely 1 ½ hour roundtable on “The Changing Health Care Environment: Leveraging Economic Opportunities for the Pikes Peak Region”, including a Q&A session with the panelists. (You can check out the bios of the speakers at the forum’s website .)

Salzman real estate Services is proud to have been a pioneer sponsor of this annual event since its inception and we encourage our readers to attend this important gathering which is viewed by many area business leaders as the premier economic event of the year.


Please contact the Southern Colorado Economic Forum for complete details ..or just give us a call at 598-3200, or, 800 677-MOVE (6683).

LATEST LOCAL STATISTICS FROM PPAR

Click here to see the most recent Sales and Listing information for the Pikes Peak area.
These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, or, 800 677-6683 (MOVE).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.


JOKE

You think we got election problems here.? Here are some observations regarding the recent elections in Iraq.

It's amazing -- we invade a country, overthrow a dictator, and then boom, we have an election. Well, actually, more like, boom, boom, boom.

With the election only two weeks away, US troops are sealing Iraq's borders. (We can't even seal California's borders so how does that work?)

They did not release the names of the candidates until two days before the election, to protect the candidates. (Sounds like that might b a good idea for us.)

One expert noted that “There are four areas of Iraq where it will be very difficult for people to vote: The east, the west, the north, and the south." …And this guy gets paid for his expertise?

Iraqi politicians are telling voters that if they don't vote for them they will go to Hell. Imagine using religion to try and get votes. Thank God our people would not do that.

Ex-pat Iraqis will be voting in U.S. cities like Washington DC and Detroit. Strangely enough, there is more gunfire in those cities then in Fallujah and Baghdad.

After the election …

It was a strange sight to see Iraqi voters proudly waving their blue-stained index fingers as a sign they had voted. Oh well, different countrys ..different customs ..different fingers.

Voter turnout was lowest among Iraq's Sunni minority. Saddam Hussein was Sunni and many in the group resent the loss of power. They feel alienated by the current political climate and are unwilling to accept the election results, and may react with violence. (That’s only because they aren’t as sophisticated as we are…)

The turnout for the election was higher than expected with 60 percent of Iraqis casting a vote. American observers noted that “Once their democracy is as sophisticated as ours that number should drop to 40 percent."