HARRY'S BI-WEEKLY UPDATE 10.5.20
October 5, 2020
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.
OWNING A HOME IS MONEY IN THE BANK…
Actually, and realistically, homeownership today is FAR BETTER than money in the bank when you consider what banks are actually paying for your money and what your home appreciation continues to be.
This was brought home (no pun intended) to me this past week when I was virtually attending the UCCS Economic Forum. Listening to keynote speaker Dave Nelsen, Futurist and President of Dialog Consulting Group, I was even more acutely aware (if that’s possible) of why owning residential real estate is so vital to personal economic stability and wealth.
Mr. Nelsen gave us a glimpse into the not too distant future, one in which things are going to be radically different than we have been used to in terms of work, transportation, living arrangements and so much more. These past six months of living with the pandemic have already begun to alter the way so many of us do our jobs, educate our children, and spend our leisure time (more on that further on, as well as the link to listen to the keynote yourself).
In some ways, that’s probably a good thing since virtual living and working, automation and robotic devices, artificial intelligence, self-driving automobiles and other similar concepts are banging on our doors. We need to be prepared to let them in whether we want to or not.
The one constant in most all of this is residential real estate. As we’ve recently witnessed, our homes have provided not only shelter, but also classrooms, workout places, employment spaces, food preparation and serving areas, movie theaters and more.
As I’ve told you in recent eNewsletters, folks are looking at their homes in new ways and discovering what they like and don’t like about how and where they have been living. Some are renovating, and others are making lists of their wants and needs and are hoping to realize them as quickly as possible. Yet others still are wanting to move to places like Colorado Springs not only for the obvious reasons, but also to get away from big cities now that working from home (WFH) and virtual meetings have become a new reality and they are now able to live wherever suits them best. Quite honestly, if you ask me, I’d certainly pick the Colorado Springs area over anywhere else as well.
According to the National Association of Realtors Pending Price Index, contract signings in August rose 8.8% over July and were 24.2% higher than a year ago. The housing market has made a strong comeback since the COVID-19 outbreak first hit and remains a key factor in the national economic recovery.
And that presents the current problem of our severe lack of existing homes for sale. As soon as we get a home listed it oftentimes has a line of buyers ready to pounce, and the listing price is often just a starting point in the negotiations. It’s crazy. But it’s reality.
With interest rates below 3%, rising rental prices and escalating home appreciation, folks are realizing that now is the time to buy—especially with a new list of wants and needs.
These are just some of the reasons that homebuilding in Colorado Springs has reached a 15-year high. New home construction is affording folks the opportunity to create the spaces they need for all facets of their “new” housing reality. With the supply of existing homes at an all-time low locally, new homes are fast becoming a viable choice for a number of my clients.
Fortunately for them, and for you, I have good working relationships with a number of local builders and can help with site and model selection as well as assist in helping direct you to the best lender for your individual situation. And did I mention? This comes at no additional cost to you. Just one of the many services you get with a seasoned professional like me.
In fact, I recently had clients who were relocating here from Hawaii and did not have time to visit beforehand. I sent them information on new homes being built that met their specified wants, needs and budget and they had me personally select their site location and oversee the homebuilding process. The first time they saw the home in person was when they moved here this past week!
My 47 plus years in local residential real estate, along with my investment banking background and personal brand of customer service, makes me the best choice to help you find exactly what you and your family want, need and can afford. In this highly competitive arena, it pays well to have me on your side. I’ve been through all kinds of market situations and can help you navigate the home market as smoothly and stress free as possible.
If you’ve even been wondering what’s out there that can satisfy your individual family situation when it comes to residential real estate…NOW is the time to find out. Just give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can help you realize your ideal homeownership situation. I look forward to helping you and your family members in this endeavor.
And now for statistics…once again “off the chart”…
You will see that home prices are continuing their upward trend due in part to low interest rates, low inventory and a pent-up demand created by the pandemic. With so many folks looking to buy, I would expect to see these numbers, along with the number of sales, to continue to increase over the next few months.
A good thing to remember when considering a move is that the equity in your present home is potentially greater than you might think, and with interest rates so low, it’s possible you can get into another home for not much more in monthly payment costs.
SEPTEMBER 2020
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the September 2020 PPAR report. Remember that the format of this report no longer provides monthly statistics for each individual neighborhood. However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.
In El Paso County, the average days on the market for single family/patio homes was 21. For condo/townhomes it was 15.
The sales price/list price for single family/patio homes was 100.8% and for condo/townhomes was 100.9%.
Please click here to view the detailed 8-page report, including charts. If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.
In comparing September 2020 to September 2019 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,665, Up 17.2%
· Number of Sales were 1,804, Up 29.4%
· Average Sales Price was $431,293, Up 17.1%
· Median Sales Price was $385,000, Up 18.3%
· Total Active Listings are 996, Down 52.3%
· Months Supply is .06, Down 63.2%
Condo/Townhomes:
· New Listings were 255, Up 19.7%
· Number of Sales were 261, Up 29.2%
· Average Sales Price was $295,276, Up 9.2%
· Median Sales Price was $277,000, Up 14.9%
· Total Active Listings are 134, Down 35.9%
· Months Supply is 0.5, Down 50.4%
And a look at more statistics…
September 2020 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR LOCAL TRENDS IN DETAIL
Colorado Association of REALTORS® , Pikes Peak REALTORS Service Corp, or it’s PPMLS
Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate.
It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.
The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:
- Sold Listings for All Properties were Up 26.7%
- Median Sales Price for All Properties was Up 17.7%
- Active Listings on All Properties were Down 54.1%
You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:
THE COST OF A HOME IS FAR MORE IMPORTANT THAN THE PRICE
Keeping Current Matters, 9.22.20
Housing inventory is at an all-time low, with 39% fewer homes for sale today nationally (and 50.9% fewer locally) than a year ago. Buyer demand continues to set records, along with home prices which have increased 5.5% nationally and 17.7% locally over the same time last year.
The home value appreciation is great news if you’re planning to sell your home, but as a first-time or repeat buyer, this may seem troubling. However, potential buyers should realize that the price of a house is not as important as the monthly cost.
Let’s break it down.
Two weeks ago, Freddie Mac announced the average interest rate for a 30-year fixed-rate mortgage was 2.87%. At the same time last year, the rate was 3.73%. Using this as an example, let’s talk about how that difference impacts the true cost of a home.
Assume you purchased a home last year and took out a $250,000 mortgage. Using the national average price increase of only 5.5% over the past year, to buy the same home would necessitate taking out a mortgage of $263,750.
The table below calculates the difference in your monthly payment:
That’s a savings of $61 monthly, or $732 annually, and $21,960 over the life of the loan.
Bottom Line? Even though home values have appreciated, NOW is a great time to buy because of the historically low interest rates.
UCCS ECONOMIC FORUM UPDATE
UCCS Economic Forum, College of Business, updated 9.11.20
I just received the updated statistics from the UCCS Economic Forum and wanted to share them with you, as always. Please click here for the look at both the national and local updates on the economy in terms of employment, local demographics, real estate and more.
As I mentioned earlier, the virtual UCCS Economic Forum held last Thursday was very informative. The theme of the meeting was “Our Resilient Future” featured futurist Dave Nelsen as the keynote speaker.
Aikta Marcoulier, Executive Director, Pikes Peak SBDA, presented a Pikes Peak Region Small Business Resiliency and Report to the Community.
Dr. Tatiana Bailey, Director, UCCS Economic Forum, presented Economic Conditions and Outlook for the Pikes Peak Region.
You can access the presentation in its entirety by going to the UCCS Economic Forum’s website: www.uccseconomicforum.com
There is excellent information here for all-- not only about the state of the economy and city today, but also scenarios that can help prepare both our businesses and our lives for the future. If you have any questions, please give me a call.
HARRY’S THOUGHTS OF THE DAY:
