HARRY'S BI-WEEKLY UPDATE 10.3.17
October 3, 2017
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Unique Brand of 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.
AS I BEGIN TO WRITE OF ALL GOOD THINGS, TROUBLING THOUGHTS DISTURB ME
There’s lots of good news to share about the residential real estate market, but it’s difficult to get the events of the past few weeks out of my head. I recently returned from an international relocation conference in Chicago and learned of so many positive things about corporate staff building, which of course translates into new workers being relocated to all areas of the country. It was a very positive meeting and left me feeling recharged and full of new possibilities for the Colorado Springs market.
Last week was the beginning of the Jewish New Year, a time of reflection and rededication to helping achieve peace, equality in all areas and to spread goodwill to mankind. It’s an uplifting experience and leaves you feeling that all things are possible if we all work to make that happen.
Then came the Las Vegas massacre on top of the devastating hurricane damage in Houston, Florida and now Puerto Rico. The world as we know it is changing in so many ways and it can be very disturbing. I’m so grateful to all the first responders everywhere who continue to risk their lives everyday to save those unable to help themselves. Their sacrifices are many and a great debt is owed to one and all.
My heart goes out to all the families affected in this very troubling time. There really are no words for this. If you or anyone of your family or friends is suffering a loss, please know that you are in my thoughts and prayers.
NOW FOR SOME STATISTIC AND GOOD NEWS FOR LOCAL RESIDENTIAL real estate
Homes are selling at 99.6% of listing price and a VERY LOW average of 24 days on the market. It’s still unbelievable and continues to put a lot of pressure on both buyers and sellers in terms of decision-making. It doesn’t appear that this pressure is going to subside in the near future.
In September 2017 Colorado Springs was once more listed in America’s Top 20 Performing Markets at number 18 in the Realtor.com rankings.
With homes selling within days of being listed, if you are planning to sell your home, you need to know where you are planning to go next because the short turnaround times don’t give you a lot of leeway to decide after the sale. It’s best to find your next home prior to listing your present one at this time.
Let me remind you again that the hard reality today is: If you are buying, you need to know in advance exactly what you want because most often you don’t get the luxury of “thinking about it” for even a few hours. If you don’t make an offer—one that’s going to get noticed—someone else will.
As much as I hate for my clients to face disappointment per a possibility of multiple offers, it’s becoming a regular thing. That’s why you need to keep an open mind to look at properties in areas where you might have not considered in order to find what you want, need and can afford. Even when it comes to purchasing a newly constructed home, I’m finding that lots are going quickly so making an informed decision is essential no matter what you are seeking.
That being said, there are still homes available in most neighborhoods and in most price ranges. If you are in the market—either as a first-time buyer, as a trade-up buyer or for investment purposes, please give me a call sooner than later. I can be reached at 593.1000 or by email at Harry@HarrySalzman.com .
For more details on the local September 2017 PPAR reports, please see the next article.
SALES AND PRICES KEEP ESCALATING DESPITE LOW INVENTORY
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
You will see in the Cumulative Year to Date Summary that total sales numbers year-over-year in Single Family/Patio Homes are up 9.3% and up 20.4% for Condo/Townhomes.
Year-over-year, new listings are up 3.4% for Single Family/Patio Homes and down 11.5% for Condo/Townhomes. If you’ve been thinking of listing your home, it’s certainly going to get a lot more attention in this type of sales environment. Just remember that it’s likely to sell fast, so once again…you need to be prepared for that inevitability.
Here are some highlights from the September 2017 PPAR report. Please click here to view the detailed 15-page report, including charts
In comparing September 2017 to September 2016 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,442, Up 3.4%
- Number of Sales are 1,509, Up 9.3%
- Average Sales Price is $309,698, Up 6.3%
- Median Sales Price is $275,000, Up 4.2%
- Total Active Listings are 2,145, Down 12.2%
- Months Supply is 1.4
Condo/Townhomes:
- New Listings are 177, Down 11.5%
- Number of Sales are 254, Up 20.4%
- Average Sales Price is $217,732, Up 9,5%
- Median Sales Price is $197,000, Up 12.6%
- Total Active Listings are 112, Down 49.3%
- Months Supply is 0.4
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
September 2017 September 2016
Black Forest $495,000 $475,000
Briargate $337,500 $345,750
Central $220,000 $204,500
East $245,000 $218,500
Fountain Valley: $252,500 $229,700
Manitou Springs: $392,000 $385,000
Marksheffel: $288,750 $267,888
Northeast: $369,950 $250,000
Northgate: $460,381 $430,525
Northwest: $380,000 $369,000
Old Colorado City: $231,000 $191,500
Powers: $275,000 $250,500
Southwest: $287,000 $292,500
Tri-Lakes: $437,125 $411,000
West: $273,500 $270,000
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
If you have any questions about these reports and how they might relate to you and your future housing plans, please give me a call at 593.1000.
FIVE REASONS TO SELL THIS FALL
Keeping current matters, 9.18.17
As I mentioned earlier, NOW is a great time to list your home if selling to trade up is in your present plans. There are lots of buyers out there and with the low number of listings, your home is sure to get noticed.
Here are Five Good Reasons:
- Demand Is Strong. The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now. More often than not, multiple buyers are competing with each other to buy a home.
Taking advantage of this buyer activity is to your advantage.
- There is Less Competition Now. Housing inventory is still under the 6-month supply that is needed for a normal housing market nationally and it’s considerably less than that here locally. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is great news for homeowners who have gained equity as their values have increased. However, additional inventory could be coming to the market soon.
Historically, the average number of years a homeowner stayed in their home was six, but that number has jumped to an average of almost nine years since 2008. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will have the freedom to move.
Since the choices buyers have will continue to increase, NOW is a great time to sell. Don’t wait until this other inventory comes to the market before you decide to sell if that’s something you are thinking about now.
- The Process Will be Quicker. Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for a mortgage and writing an offer that gets noticed the first time. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping and sellers know they have qualified buyers. According to Ellie Mae’s Origination Insights Report, the time to close a loan has dropped to 43 days, after seeing a 12-month high of 48 days in January,
- There Will Never Be a Better Time to Move Up. If your next move will be to a premium or luxury home, now is the time to move-up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own
Prices are projected to appreciate by 5.0% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars—both in down payment and mortgage payment—if you wait.
- It’s Time to Move on With Your Life. Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
Only you can answer those questions. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you’ve always dreamed of.
A COUPLE OF PICTURES FROM CHICAGO
Me in front of the National Association of Realtors Building in Chicago
There was a contest for Chicago businesses to decorate “Police Dogs” for PAWS Chicago This one was designed by The National Association of Realtors and was outside their building. I loved their slogan:
“Supporting all who serve—whether two legged or four—to find a safe home.”
REMODELING THAT CAN OFFER BIG PAYBACKS AT RESALE
Realtormag.org 9.28.17
Kitchen renovations and upgrades are among the top remodeling projects likely to add value to a home and most likely to appeal to home shoppers according to the 2017 Remodeling Impact Report conducted by the NAR.
Fifty-four percent of Realtors surveyed reported suggesting to sellers that they complete a kitchen upgrade before attempting to sell. Twenty-three percent of real estate pros also said that a kitchen upgrade helped close a sale.
The report estimates that homeowners stand to recover 57%--or %20,000—of the $35,000 or so of the cost to take on a kitchen upgrade.
Not only do kitchen upgrades just offer the potential for some bang for your buck at resale, but it has also been found to make homeowners more happy. 81% of remodeling consumers surveyed said they had a greater desire to be at home since completing their kitchen upgrade project and 81% also felt a major sense of accomplishment after the renovation.
The following chart shows you other ways in which to get greater joy from your home while recouping much of the cost at the time of sale.
HARRY’S JOKE OF THE DAY:
A doctor vacationing on the Riviera met an old lawyer friend and asked him what he was doing there.
The lawyer replied, “Remember that lousy real estate I bought? Well, it caught fire, so here I am with the fire insurance proceeds. What are you doing here?”
The doctor replied, “Remember that lousy real estate I had in Mississippi? Well, the river overflowed, and here I am with the flood insurance proceeds.”
The lawyer looked puzzled. “Gee,” he asked, “how did you start the flood?”
