HARRY'S BI-WEEKLY UPDAATE 9.29.14
September 29, 2014
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.
GUESS I’D RATHER BE IN COLORADO….
For those of you who have gotten to know me well, that goes without saying, but it’s most especially true this time of year when we get to see the Aspen trees change color in the mountains. I don’t think there is anything as spectacular and there’s just a short window for viewing. This past weekend, we were able to see nature at its best and I wanted to share several pictures I took with you. It’s impossible to capture the magnificence of it all, but the photos above will give you a small idea of what I’m talking about.
Those of us that call Colorado home know that our state is gorgeous in all four seasons. And each season offers something for everyone—from sporting activities to sightseeing and great food. For those looking to relocate here, you’re in for a treat. You will soon realize what I mean when I talk of our “Rocky Mountain High”. There’s just nothing like it.
SPEAKING OF FOUR SEASONS, HOME BUYING CAN BE TRICKY WITHOUT A COMPETENT real estate BROKER
The Wall Street Journal, 9.22.14
There have been lots of articles about the housing recovery and how it’s starting to slow down a bit to catch its breath so to speak. Prices are continuing their upward climb and mortgage rates are still historically low. However, the market’s foundation is starting to wobble a bit and forecasters are beginning to rethink their higher price valuation predictions.
The slowdown is good news for homebuyers, of course. The recent weakness in real estate investments, including homebuilders, has created opportunities for bargain hunters, some analysts say. However, if the Federal Reserve begins raising interest rates next year as expected, the cost of financing will increase—making things tougher for Buyers and Investors alike.
Many analysts argue that now is a good time to buy. The slowing growth in prices makes homes more affordable, even as rental costs inflate for single-family homes and multifamily apartments. Interest rates remain low, with the average for conforming 30-year fixed-rate mortgages recently at 4.19%, close to the lowest levels of the year.
Some of the slowdown has to do with the time of the year, but I’ve found that no matter what the season, if you are dealing with a competent real estate Broker who has been successful during all seasons and some recent economic cycles, you can expect to find just what you are looking for. It’s easy to find a home, either for personal use or investment, when the market is hot, but market conditions change and you need to make certain that you are dealing with someone who knows the “ins and outs” of every season and every cycle.
With my 42 plus years in the local real estate arena, I’m uniquely qualified to help you and your family with all your Real Estate needs. Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if now is the right time to make things happen for you.
MORTGAGE LENDING CAN BE PUZZLING
The Wall Street Journal, 9.12 and 9.22.14
With the mortgage credit game changing constantly and with more changes to come, it’s hard to know exactly where to get the best loan for your specific needs. Those with top credit scores will find it much easier than most to qualify for loans of all types and will find that the shift in mortgage lending rules will present an opportunity to get a larger loan—and better home—without having to pay a higher interest rate.
While fixed rate mortgages have been the norm lately, Adjustable Rate Mortgages (ARMs) with a 30 year repayment period and fixed rate for the first 10 years offer a conservative option for those looking for lower payments. Most borrowers won’t need the loans for more than the fixed period as the typical Seller in 2013 owned his home for nine years, according to the National Association of Realtors.
Borrowers who are considering an ARM should look for one with a fixed rate at least as long as the period they are planning to keep the house since the loan’s interest rate will rise considerably once the fixed period ends. They should also put aside some of the savings they realize from the lower initial monthly payments in case they need to stay in the home longer than originally planned.
But no matter what type of mortgage loan a borrower may want, it’s not a “one size fits all” type of situation. What is the best type of loan for those who qualify for the best rates and terms? Where do you go for lending if you are not in the select group with top credit scores? What if you’ve had a bankruptcy or foreclosure? These questions, and others, are very important to borrowers and another reason why you need to work with a qualified, competent real estate Broker. A good Broker will have established contacts with lenders and can help direct you to the one that will work best for your individual financial situation. This should be done prior to finding a home so that you won’t be disappointed. You will know in advance what best fits your budget and being pre-approved will give you peace of mind while shopping for homes. The “wrong” lender can make the home buying experience an unpleasant one and that’s something I’ve seen too often when the Broker hasn’t done everything necessary to help their Buyer.
An important part of my service is making certain that I understand the needs of each client and with my investment banking background I do the homework to make certain that my clients are directed to a competent mortgage lender best suited for their needs.
Today’s mortgage lending is getting more and more complicated but it doesn’t need to be for you. Making sure you deal with the “right” real estate Broker can help alleviate many of the problems which could arise long before they do.
Enough said for today.
HIGHER RENTS, LOWER WAGES ARE LEAVING MORE CASH-STRAPPED
RealorMag, 9.16.14
Nationwide, rents have risen by 6 percent according to data compiled from Harvard’s Joint Center for Housing Studies, and renters are increasingly becoming cash-strapped while facing the higher rents in conjunction with shrinking or stagnant paychecks.
Traditionally, homeowners have long outnumbered renters by more than three to one, according to Realty Trac. However, since the recession, the rate of homeownership has been steadily dropping from a 69.2 percent peak in the fourth quarter of 2004 to 65.42 percent in the fourth quarter of 2013, according to Census data.
The number of renter households has risen to 43 million, or 35.4 percent of all U.S. households, which is up from 31 percent in 2004, according to the Harvard report.
This means, of course, that 64.6 percent of households own their own home, townhouse or condo and I am a firm believer that somehow we need to help turn those renters into owners so that they can start building equity rather than helping someone else do so.
This is obviously a great time for Investors to get in the market since rental income is going up, but it’s also a good time to turn renters into first-time or once-again homeowners. If you know someone who is renting and wants to find out the feasibility of owning, please refer them to me and let me see if I can help them realize their “American Dream”.
LOCAL SALES TAX REVENUE CONTINUES TO INCREASE
The Gazette, 9.20.14
A healthy tourist season helped sales tax collections increase for a fourth straight month in August, according to a report from the Colorado Springs Finance Department. Collections of the city’s 2 percent sales tax in August (July sales) were up 8 percent from August 2013.
No wildfires or flooding most certainly contributed to this increase in tourism. “The fact that there were no natural disasters certainly makes it more likely that tourists will want to visit the region, but the magnitude of the increase was perhaps unexpected,” said Tatiana Bailey, executive director of the Southern Colorado Economic Forum. “One of the benefits of a strong tourism season is other businesses that cater to tourists—restaurants and retail shops—are also having a strong year.”
COLORADO SPRINGS RANKED AMONG “INTELLECTUAL ELITE”
The Gazette, 9.17.14
Colorado Springs is ranked 8th in the nation among “intellectual hubs” out of 50 of the largest metro areas studies by WalletHub.com. In comparison, Denver was number 28.
UCCS spokesman, Tom Hutton, pointed to the growth of UCCS and the presence of Colorado College, Pikes Peak Community College, the Air Force Academy and others as some possible reasons for the high ranking. And the officers corp at area military installations add more educated individuals to the population as does the tech sector, and many bright retirees who move here from all over the world.
Some of the factors used to identify intellectual hubs by WalletHub, a financial network, included “education level” and “quality of education”.
Here’s some of what makes Colorado Springs so high on the list:
- Second in percentage of high school diploma holders
- Fourth in percentage of college or associate degree holders
- 15th in percentage of workers with jobs in computer, engineering and science
- 22nd in percentage of graduate or professional degree holders
- 23rd in percentage of bachelor’s degree holders
- 31st in public school system ranking
So there you have it. Just another feather in our ski-cap. In any case, a great bragging point when speaking to our friends in Denver.
HELP WANTED IN COLORADO SPRINGS
The Gazette, 9.24.14
Pikes Peak Workforce Center’s semi-annual Job Fair will be held on October 8th and 114 Colorado Springs area employers say they have openings for 6,000 to 7,000 positions within the next two to three months.
According to Jeanne Cotter, Workforce Center spokeswoman, this will be one of the largest job fairs the Center has held in terms of the number of openings. The spring job fair had a similar number of employers but only 2,500 positions were available then.
This comes along with the Colorado Springs area unemployment rate falling to 6.5 percent in July—the lowest in almost six years.
The job fair will be from 11 a.m. to 3:30 p.m. October 8 at the Hotel Elegante Conference and Event Center, 2886 S. Circle Drive. Doors will open at 9:30 a.m. for veterans and the spouses only.
For a complete list of employers who plan to attend, go to www.ppwfc.org and click on “fall job fair”.
BE SURE TO REGISTER SOON FOR SOUTHERN COLORADO ECONOMIC FORUM
The Southern Colorado Economic Forum is being held on Friday, October 10, 2014 at the Antlers Hilton Hotel Ballroom.
You won’t want to miss out on all the useful information that is presented at this Forum so it would be wise to get your registration in as soon as possible for this always-sold-out event. You can register online at : www.SouthernColoradoEconomicForum.com .
Salzman real estate Services, LTD is proud to be the only Residential Real Estate sponsor and has been since the Forum’s inception 18 years ago. This is a “must attend” event for anyone in business in the Colorado Springs area and I know you will find it a useful tool in making business decisions for the coming year.
HAPPY NEW YEAR TO MY JEWISH READERS
The Jewish New Year 5775 is now upon us and I’d like to take a moment to wish all my Jewish readers a heartfelt “L’Shana Tova” (Happy New Year).
To all my readers, Jewish or not, I wish you a year filled with much good health, happiness, success, love and most importantly...Peace.
HARRY’S JOKE OF THE DAY
