E Newsletter - July 28, 2009
HARRY’S COLUMN
CONSISTENT MARKET IMPROVEMENT IN COLORADO SPRINGS
After two complete quarters of fully-recorded and closed real estate sales activity in 2009, we note that every month has shown increases in both the average and the median prices of homes sold in our local market.(Only April showed a negligible decline). For your information, we are including a chart which shows these figures for each of the separate areas in the Pikes Peak market..
To further emphasize that the real estate market is now on the way back up, we reference a recent article from Inman News, titled, “Home Sales Show Third Month of Gains.”
"Existing-home sales rose for a third month in a row in June, and prices may stabilize in many areas by the end of the year if inventories continue to decline, the National Association of Realtors said today.
Sales of resale homes, including single-family homes, townhomes, condominiums and co-ops, rose 3.6 percent from May to June, to a seasonally adjusted annual rate of 4.89 million units -- virtually the same as a year ago, NAR said.
At that rate of sales, the 3.82 million homes on the market represented a 9.4-month supply, down from 9.8 months in May.
A six-month supply of homes is generally considered a healthier balance of supply and demand, but the "raw inventory" total, or number of homes on the market, is down 14.9 percent from a year ago.
A Wall Street Journal analysis of housing fundamentals in 28 major real estate markets during the second quarter showed considerable variation in inventory, ranging from a high of 18.1 months in Chicago to just 2.7 months in Sacramento, Calif.
"If we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” said NAR Chief Economist Lawrence Yun in a press release."
Give me a call to discuss the great opportunities now available for prospective home buyers.
2009 HOUSING OPPORTUNITY PULSE SURVEY
The June 30 PULSE Survey of the Top 25 Metropolitan Statistical Areas, published by the National Association of Realtors, emphasizes that now is the time to buy. NAR’s seventh pulse survey reveals that despite improved affordability conditions, eight in 10 Americans still consider having enough money for downpayment and closing costs to be the biggest obstacle to buying a home.
The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in seven years of sampling. Two-thirds of Americans think job layoffs and unemployment are a big problem; eight in 10 cite these issues as a barrier to homeownership.
The telephone survey of 1,250 urban and suburban adults in the top 25 metropolitan statistical areas was conducted for NAR by by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program. June 30 PULSE Survey of the Top 25 Metropolitan Statistical Areas, published by the National Association of Realtors, which emphasizes that now is the time to buy
Some key results include:
· Eight in 10 Americans (82 percent) still consider having enough money for downpayment and closing costs to be the biggest obstacle to buying a home.
· Two-thirds of Americans think job layoffs and unemployment are a big problem; 83 percent cite these issues as a barrier to homeownership.
· 83 percent of Americans still believe buying a home is a good financial decision.
· Three-fourths of those surveyed also believe now is a good time to buy a home, a number that has increased steadily the past two years.
· The number of those who feel buying and selling activity has stabilized or stayed nearly the same has grown significantly, up more than 44 percent since last year.
· The majority (58 percent) report that activity in their market has slowed.
· Regarding home sales, nearly eight in 10 say it’s harder to sell a home in their area today than it was a year ago, despite the fact that nearly three-fourths of respondents say home prices are less expensive.
· Foreclosures remain a real concern among survey respondents. Slightly more than half (51 percent) say foreclosures are a big to moderate problem in their area.
· The rate of foreclosures is generally seen as stabilizing; 41 percent say the rate of foreclosures in their area is about the same as last year.
· Ninety-two percent of respondents said neither they nor members of their immediate family have experienced a foreclosure in the past year, yet it is still a personal concern for many. One in five respondents said they are very or fairly worried that they will have difficulty making their mortgage payments over the next year.
· Thirty-two percent say it’s a big or moderate worry that they, or a member of their family, may have their home repossessed or foreclosed because they are unable to pay rising monthly mortgage payments.
· In 2008, more than half of respondents (54 percent) were open to the federal government taking a more active role in overseeing mortgage and lending practices – the number dropped this year to 47 percent.
· Forty-two percent of Americans believe the country is back on the right track, more than double the number last year (16 percent).
SALZMAN’S JOB LOSS PROTECTION PLAN CAUSES STIR IN INDUSTRY
In the PULSE article noted above, the NAR notes that “Two thirds of Americans think job layoffs and unemployment are a big problem. Eight in ten cite these issues as a barrier to homeownership”. This concern on the part of many prospective homeowners is the reason why we decided to offer our “Job Loss Protection Plan”, to our clients. We invite you to call us to discuss this innovative program.
And, please remember, I would be honored to serve as your broker for all of your residential real estate needs.
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.
JOKE OF THE WEEK
While walking down the street one day a US senator is hit by a truck and dies. His soul arrives in heaven and is met by St. Peter at the entrance.
‘Welcome,' says St. Peter. 'Before you settle in, we'll have you spend one day in hell and one in heaven. Then you can choose where to spend eternity.
And with that, St. Peter escorts him to the elevator and he goes down, down, down to hell. The doors open and he finds himself in the middle of a green golf course. In the distance is a clubhouse and standing in front of it are all his friends and other politicians who had worked with him. Everyone is very happy and in evening dress. They run to greet him, shake his hand, and reminisce about the good times they had while getting rich at the expense of the people. They play a friendly game of golf and then dine on lobster, caviar and champagne. Also present is the devil, who really is a very friendly & nice guy who has a good time dancing and telling jokes. They are having such a good time that before he realizes it, it is time to go. Everyone gives him a hearty farewell and waves while the elevator rises...
The elevator goes up, up, up and the door reopens on heaven where St. Peter is waiting for him. ‘Now it's time to visit heaven. ‘So, 24 hours pass with the senator joining a group of contented souls moving from cloud to cloud, playing the harp and singing. They have a good time and, before he realizes it, the 24 hours have gone by and St. Peter returns.
‘Well, then, you've spent a day in hell and another in heaven. Now choose your eternity. ‘The senator reflects for a minute, then he answers: 'Well, I would never have said it before, I mean heaven has been delightful, but I think I would be better off in hell. ‘So St. Peter escorts him to the elevator and he goes down, down, down to hell.
Now the doors of the elevator open and he's in the middle of a barren land covered with waste and garbage. He sees all his friends, dressed in rags, picking up the trash and putting it in bags as more trash falls from above. The devil comes over to him and prods him with a pitchfork. 'I don't understand,' stammers the senator. 'Yesterday I was here and there was a golf course and clubhouse, and we ate lobster and caviar, drank champagne, and danced and had a great time. Now there's just a wasteland full of garbage and my friends look miserable. What happened?
‘The devil looks at him, smiles and says, 'Yesterday we were campaigning....Today you voted.'
