January 24, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

 OUR ECONOMY IS IMPROVING ...WE'RE ON OUR WAY BACK UP !!

 After a couple of years of bad news, Colorado Springs and the local real estate market are showing definite signs of recovery. "Says who?", you ask. Well, here's just a few of the people, reports and surveys that say so:

 NATIONALLY -

  •  The National Association of Realtors (NAR) announced that "Existing-home sales rose sharply in December, when sales increased for the fifth time in the past six months".The Wall Street Journal explains that, "Bargains and low interest rates fueled the December gain of 12.3%. Buyers are snapping up bargains and rushing to lock-in historic low interest rates".
  • Lawrence Yun, chief economist for NAR, noted that sales are on the uptrend. He predicted that, "The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability continues".
  • Interest rates are still extremely low. Freddie Mac said Thursday that the average rate for a 30-year, fixed-rate loan was 4.74%, still a great bargain.
  • U.S. manufacturing has begun creating more jobs than it eliminates, for the first time in more than a decade (The Wall Street Journal, Wednesday, January 19, 2011). In 2010, the number of manufacturing jobs increased 1.2%, or 136,000, the first increase since 1997. Economists are predicting an increase of 2.5%, or 330,000 manufacturing jobs in 2011. Thomas Runiewicz, an economist at IHS, expects total U.S. manufacturing jobs to hit 12 million this year, and calls manufacturing "the shining star of this recovery".

LOCALLY -

  •  Colorado Springs Sales and Listing statistics show that our area has weathered the recession much better than most other metropolitan areas in the U.S. In 2010, our average and median selling prices for homes rose 3.4% and 4.4%, respectively, as compared to the national increase of only .3%. Click here to see our most recent Sales and Listing Statistics.
  • Fred Crowley, the chief economist for the Southern Colorado Economic Forum, notes that the local housing market bottomed out in 2009 and he predicts local home prices will rise by another 4% this year. He also predicts 2011 home and townhouse permits rising 22%, to about 1900 and sees foreclosures falling from last year's 4,828 to about 4,200 in 2011. 

(Readers, take note !!: This means that, in 2011, there will be another 2000-3000 prospective renters out there, waiting to rent that investment home you have been thinking about. Call us !!)

  •   "We've got stability", Crowley said. "And stability will grow the local economy 3-4%. But, private sector growth could grow the economy by 5-8%." To help stimulate this private sector growth, Fred is challenging our local businesses to invest in a venture-capital fund, as recommended by the Colorado Springs Regional Economic Development Corporation. "Such a fund would finance local entrepreneurs and startup companies." He even offered to write a $10,000 check to get the fund started. "This can be done", he emphasized. (To learn more about this proposed project, see the story about the CSREDC, below.)
  • In 2010, our local hotels occupancy rates bounced back from the lowest level in the in the 19-year history of the Rocky Mountain Lodging Report. Last year, hotel occupancy rose 60.9%, the highest rate since 2002. And, even better, bookings for future meetings and conventions are up, which promises increased income into the local economy in the years ahead.

 

NAR ECONOMIST TO VISIT COLORADO SPRINGS

Lawrence Yun, chief economist for the National Association of Realtors, will visit Colorado Springs on February 16, 2011. He will speak to our local Realtors and will get an update on how our local real estate market has managed to outperform many of the other metropolitan centers in the U.S. The meeting is restricted to Realtors, but we will report to you on what he has to say in our weekly enewsletter.

 

 AMERICAN ATTITUDES ABOUT HOME OWNERSHIP

NAR has recently released the results of a national survey which examined Americans' attitudes about home ownership. The survey, conducted by Harris Interactive, shows that a substantial majority of both home owners and current renters agree that owning a home is a smart decision over the long term.

A majority of homeowners and a sizable percentage of renters agree or strongly agree that owning a home provides a healthy and stable environment for raising a family, that it helps them meet long-term financial goals and helps them realize the American Dream.

The following links will allow you to view the entire survey.  

View the survey results of "American Attitudes About Home Ownership" > 

View charts and graphs from "American Attitudes About Home Ownership" > 

If you would like to pursue the American Dream of owning a home, please give us a call.

 

 CHANGE HAS COME - THE CSREDC'S RESPONSE TO THE NEW ECONOMIC REALITY

Last week, we had the pleasure of attending an exciting presentation by the Colorado Springs Regional Economic Development Corporation which outlined their strategic plan for attracting, retaining and creating quality jobs and investment in the Pikes Peak region. The presentation featured a slide presentation and an outline of the EDC's plan. The specific goals for the plan are:   

  1. Job Attraction
  2. Job Retention
  3. Entrepreneurial Job Creation
  4. Strategic Initiatives
  5. Capital investment

EDC's plan also identified the specific target industries that would make the best fit for our region and would best help us retain the unique way of life and lifestyle that our region offers. The target industries listed were:   

  1. Software and Information Technology
  2. Aerospace, Defense and Homeland Security
  3. Clean Tech - Renewable Energy
  4. Sports, Health and Wellness
  5. Emerging Industries and Entrepreneurs

It was refreshing and exhilarating to see that creative minds are aggressively working to stimulate economic growth in our region. The EDC has developed an innovative blueprint for our future and we invite you to read the entire presentation. It's obvious we are heading in the right direction.

Please click here to see the complete EDC plan for the future of Colorado Springs and click here for the slide presentation which explains the plan in more detail.

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 37 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. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us.