Enewsletter - February 22, 2010
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET
ANOTHER REASON TO BUY NOW !!! (OR, WOULD YOU RATHER BE A MULE?)
In previous issues, we have pointed out that when the looming Inflation hits, home prices will necessarily have to increase. Well, it doesn’t look like we will have to wait until the third or fourth quarter for the predicted inflation to begin. Last week, the Wall Street Journal’s Commodities Report noted that lumber prices have climbed 32% since January 1, 2010. This sudden climb in prices is the result of a shortage of lumber caused by the cut-backs of 45% in production at the lumber mills.
Between 2005 and 2009, lumber prices showed a consistent decline. However, as a result of the 2009 fall-off in residential construction, lumber mills laid off workers and decreased inventories. That kind of cut-back cannot be reversed overnight. It will take time for mills to re-hire workers and return to full production, and that will happen only when the mill owners are convinced that there is a sustainable rebound in residential construction. The predictable result of this present lumber-shortage is that builders will now have to delay construction as they wait for deliveries and will have to pay more for lumber, when it becomes available. That cost increase will be passed along to home buyers.
This impending cost increase reflects two basic facts of life. First of all, as we all learned in Economics 101, Supply and Demand will always balance each other out. When a commodity is in short supply, it will cost more…and that includes two-by-fours. The second lesson may not be familiar to most present-day city dwellers. Old-time mule-skinners used to say that the first step in training a mule was to hit him between the eyes with a two-by-four. That got the mule’s attention and helped him concentrate on learning. Well, it seems that the mill-owners have just hit us between the eyes with a two-by-four. Will it help us to learn our lesson?? We remind all prospective home buyers that the home you buy today will definitely be worth more tomorrow.
CREDIT CARD CHARGES GOING UP
As of today, new federal regulations governing credit card companies will go into effect. As with all governmental regulations, these new regulations will increase the credit card companies’ cost of doing business and will be passed along to the users of credit cards (in other words, to everybody). Just another example of how inflation is creeping in.
4TH-QUARTER STATS NOW AVAILABLE FROM SOUTHERN COLORADO ECONOMIC FORUM
The Southern Colorado Economic Forum of the University of Colorado at Colorado Springs has just published its 2009 fourth-quarter report. This comprehensive report contains invaluable information about our local economy and will assist you in making sound decisions about your real estate investments. It covers such topics as:
- The Business Conditions Index: An overall view of 10 separate activities of products and services
- Single-family permit trends
- Multi-family permits
- Year-to-date single-family home sales
- Monthly single-family home sales
- Average home-sale prices
- Median home-sale prices
- El Paso County foreclosure statistics
- Multi-family vacancy rates
- Emplanement trends at Colorado Springs Airport
- Colorado Springs sales-tax collections
- New car registration statistics
Please give us a call, if you would like us to forward a complete copy of this report. It will help you analyze our market and make good decisions about your home-buying and/or selling decisions.
ATTENTION !!! HOME BUYERS TAX CREDIT WILL EXPIRE ON APRIL 30, 2010
We urge you to take advantage of the Federal Tax Credit to Home-Buyers and BUY NOW !!!. This valuable tax-credit is a gift to you from Uncle Sam and may not be extended. If you would like to take advantage of this tax-credit, you must be under contract by April 30, 2010 and must close by June 30, 2010.
COLORADO SPRINGS CONSUMERS HAVE DECIDED TO START BUYING AGAIN
This past Wednesday, the city reported that city-sales-tax revenues in January, 2010 were 6.8% higher than in January 2009. While this gain was down 6.9% from the beginning of the Recession in January, 2005, it was still the largest percentage gain in two years. This is a good indication that local consumers are tired of waiting for someone to announce that the recession is over and they have decided that it’s time to start buying again. As the man said, “I heard there was a recession, but, I decided not to participate”. It’s great news !!!
SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”
Salzman real estate Services can now provide clients with a 15% discount on all painting and decorating products, through the Sherwin Williams “Neighborhood Preferred Customer Program”. As a member of this money-saving program, we can now offer these discounts to our clients in every
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.
JOKE OF THE WEEK
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Because we are all watching the Winter Olympics on TV, we thought you might like to read the most commonly asked question about Canada and Vancouver. These questions were posted on an international tourism Website. |
