HARRY'S BI-WEEKLY UPDATE 10.26.23
October 26, 2023
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Special Brand of Customer 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.
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STILL LOTS OF QUESTIONS…BUT I’VE GOT SOME ANSWERS…
When you’ve been in the Residential real estate business as I have for 51 plus years, you’ve seen just about every type of “cycle” imaginable. I’ve seen interest rates as high as 21% and as low as 2%. I’ve seen a home price in Colorado Springs as low as $18,000 in 1972 and the average price as it is was in September at $553,959.
So, when it comes to “surprises”, there is very little that surprises me in Residential real estate.
Why do I mention this? It should be obvious. The importance of doing business with a seasoned, knowledgeable professional like myself cannot be overemphasized, and most especially in today’s ever-changing market.
When you’ve seen it all you know how to respond in a timely and pragmatic way. My investment banking background also gives me a special heads up on the competition and is an important plus to my clients as I also know how to help them navigate the mortgage market and find the right fit for their individual situation.
Am I bragging? Maybe. But I’ve earned the right.
Forty percent of the Residential real estate agents in the National Association of Realtors (NAR) have been in sales for ten years or less. They have not witnessed many cycles and have enjoyed working when the historically low interest rates caused the buying frenzy of recent years. Those were the “easy” years.
The going gets tough when you have to deal with interest rates that have escalated as quickly as they have in the last year and buyers and sellers need help with figuring out how to make this market work for their individual wants, needs and budget requirements.
Let’s face it. The historically low interest rates of a few years ago are gone and I seriously doubt we will see them again for a very long time, if ever. So now it’s time to move on and address what’s happening today.
Rates are high…and are likely to stay that way for a while and buyer traffic is less than normal due to those high rates.
But as I’ve continually said, rates don’t tell the whole story. The BIG story is that home appreciation is on the rise, and it will continue to do so.
Yes, some of that is due to the lack of available homes for sale. But, while economists had forecasted either a flat or negative appreciation this year, those forecasts have changed. And, here in Colorado Springs we have already surpassed my MY forecast of 2-3%.
Here is a copy of the most recently revised national year-end home price forecasts:
So, if you’ve thought about making a move, waiting for rates to come down while home values are appreciating might not be in your best interest. (no pun intended).
I’ve recently been working with clients who want to sell to trade up or move to a new location and while it’s not as easy as it was just a year ago, it’s still doable, depending on inventory. Where there’s a will…my clients have me. And I can always find a way if it’s at all possible and in their best interest. And if it’s not…I will tell them that as well.
After all, I’m not in business for a quick sale. I’m here for the long haul and to cultivate relationships and will always put the best interest of my clients first. That’s why I’m still in business and have had the pleasure of working with not only my long-time clients but also their kids and even a grandchild or two at times.
If you’ve even been thinking about a move, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get together and see how together make your Residential real estate dreams come true.
AND ANOTHER WORD FROM ME…
If you’ve got a minute and 37 seconds, I’ve got some additional news for you. Click on the link below to hear my latest podcast:
Be sure to “subscribe” online to hear my “blurbs” when they are first available.
WHO ARE WE? A LOOK AT EL PASO COUNTY AND COLORADO SPRINGS BY THE NUMBERS
The Gazette, 10.1.23
Below is an article that was in the Sunday Gazette several weeks ago and I thought if you hadn’t seen it you might be interested in the statistics. So…here you go…
HOME PRICE GROWTH IS RETURNING TO NORMAL…an Infographic
Keeping Current Matters, 10.20.23
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- Just another illustration of what I’ve been saying. Home appreciation is again on the rise and likely to keep rising.
- Based on typical seasonality in the market, prices go up most in the spring during the busy buying season and then price growth slows down as the year goes on.
- Home prices aren’t falling. They are just rising slower at this time of year and going back to normal seasonal trends. And that’s a good thing.
THREE THINGS HOME BUYERS CAN ASK FOR NOW
The Wall Street Journal, 10.9.23
Home buyers are facing steep costs and few options as mortgage rates push 8% and new listings are scarce. However, the good news is that they have more leverage than they realize.
With lenders having to compete for business now that higher rates have scared off many potential buyers, some may be willing to reduce some fees. Besides shopping around for the best rate, there are also a handful of extras that buyers can ask for to reduce their closing costs and monthly payments.
Sellers are also more receptive to certain requests than they were during the height of the pandemic-fueled housing frenzy since they don’t want to risk losing the deal. In August of this year, nearly 16% of pending home sales nationally fell through as buyers got cold feet, compared with about 11.7% in August 2021, according to Redfin.
A you might guess, a buyer’s power to negotiate largely depends on how much competition there is for the house. Here are three things to consider asking for from the seller:
- Help with closing costs.
- Get a rate buy-down on your mortgage. (more lenders, sellers and home builders are offering to help lower a buyer’s mortgage interest rate for a certain period, a move known as a rate buy-down).
- Fixing up the house. Sellers are more receptive to making repairs than they were two years ago.
These are three things that could help make a difference in what you ultimately pay for a new home. Please call me with any questions or to see how any, or all, of these options could apply to you.
ERA SHIELDS QUARTERLY STAT PACK
Data through September 2023, ERA Shields
Here is data from my company’s quarterly “Stat Pack” that can better help you understand the local buying and selling reality. I have reproduced the first page, and you can click here to get the report in its entirety.
