HARRY'S BI-WEEKLY UPDATE 10.7.21
October 7, 2021
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.
NOW THAT I’VE GOT YOUR ATTENTION…REPEAT AFTER ME…IT’S STILL A SELLERS’ MARKET
Things haven’t changed much in the last month which is continuing to make it difficult for those wanting to sell and trade up, relocate to another area, or purchase a home for the first time.
The infographic above is based on national figures and our local numbers are even better than those depicted, as you will see in the August statistics below.
It’s difficult for anyone to predict what will happen to interest rates with all the political discourse currently taking place and a number of buyers are rushing to take advantage of the current rates before they are gone.
Supplies are still going for a premium if they are even available and that’s another problem both homebuilders and home renovators are facing.
If this all sounds a bit pessimistic for a perennial optimist like me, well, not to worry. I just want to tell it to you straight. However, as you already know by now, I can always find a way around most obstacles. And when you’ve got me in your corner, the battle is half won before you even begin.
That’s not to say it’s easy when it comes to buying a home today, but after 48 plus years in local Residential real estate I’ve become known for my “can do” attitude and one way or another will help my clients find a way to realize their real estate dreams.
Selling is another story entirely. It’s likely that your present home will sell fast, making it difficult if you have not yet decided where you want to move. That’s one reason why it’s smart to know your wants, needs and budget BEFORE you even begin the process of selling to trade up or move to another neighborhood.
My advice to you? If you’ve even considered a move, NOW is the time to get started. Prices aren’t going down anytime soon, and as I mentioned, mortgage rates essentially have nowhere to go but up.
The very best move you can make today is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered. Together we can work to find the best options for your individual family situation.
I look forward to speaking with you soon.
SEPTEMBER 2021
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the September 2021 PPAR report. 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 a very low 10. For condo/townhomes it was 9.
Also in El Paso County, the sales price/list price for single family/patio homes was 102.3% and for condo/townhomes it was 102.7%.
Please click here to view the detailed 10-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 2021 to September 2020 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,829, Up 9.8%
· Number of Sales were 1,758, Down 2.5%
· Average Sales Price was $498,003, Up 15.5%
· Median Sales Price was $440,000, Up 14.3%
· Total Active Listings are 1,184, Up 18.9%
· Months Supply is 0.7, Up 22.0%
Condo/Townhomes:
· New Listings were 288, Up 12.9%
· Number of Sales were 302, Up 15.7%
· Average Sales Price was $335,905, Up 13.8%
· Median Sales Price was $318,500, Up 15.0%
· Total Active Listings are 142, Up 6.0%
· Months Supply is 0.5, Down 8.4%
Now a look at more statistics…
SEPTEMBER 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE 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
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 Down 7.6%
- Median Sales Price for All Properties was Up 14.8%
- Active Listings on All Properties were Down 14.9%
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 in general:
And now some advice for BUYERS:
EARLY OCTOBER IS THE “SWEET SPOT” FOR BUYERS
KeepingCurrentMatters, 9.28.21
If you’re looking to buy a new home, here’s some better news for you. Even though the housing market news has recently been focused on “sellers” and their perks while discussing the bidding wars and other obstacles for buyers, there are some clear signs that buyers may have more opportunities this fall and winter.
According to realtor.com, the sweet spot for buyers is right now. A recent study looking at housing market trend data from the past several years and applying it to the current market found:
“Nationally, the best time to buy in 2021 is the week of October 3-9. This week historically has shown the best balance of market conditions that favor buyers.”
So, if you’re looking to buy a home, the best time to start is TODAY. And here are a few reasons why:
- Increased Housing Supply. The number of homes for sale should be increasing. According to realtor.comyou can expect to see more new listings come to market this week. The findings estimate we should see roughly 17.6% more homes available for sale nationally than we saw at the start of the year. This means more options from which to choose, which should be a welcome relief in this market with tight housing supply.
- Fewer Bidding Wars. With more homes available you should also see a slight decline in the number of bidding wars. This means when you write an offer, you may have less competition and a better chance of being the top bid. But remember, it’s still important to come in with a strong offer if you want that offer to be accepted.
- Adjusted Home Prices. Heading toward the end of the year, the findings from realtor.com note that this week may also be one of the peak weeks for price reductions in 2021. Historically the data shows that an average of 7.0% of homes nationally have a price reduction this week. Why? When housing supply increases, sellers need to look for other ways to make their home stick out. So, while prices continue to increase overall, you may see some homes with price adjustments from eager sellers. For sellers who want to close before year end, they may be more motivated this month.
Bottom Line: If you’re in the market for a home, NOW is the time. October may give you the long-awaited opportunity to find what you’ve been wanting. Call me sooner than later and let’s see how we can make your dreams a reality.
IF YOU’RE A BUYER, IS OFFERING ASKING PRICE ENOUGH?
KeepingCurrentMatters, 9.27.21
As I’ve been saying for some time now, the “new normal” in writing an offer for a home shouldn’t include the expectation that you will be able to negotiate a lower than listing sales price. In other times, buyers often tried to determine how much less than the asking price they could offer and still get the home. From there, the buyer and seller would typically negotiate and agree on a price somewhere in the middle.
Things are different today.
Today’s housing market is anything but normal. According to the National Association of Realtors (NAR), on a national level, homes are receiving an average of 3.8 offers and selling in just 17 days. Locally our average selling time is just 10 days!
Selma Hepp, Deputy Chief Economist at CoreLogic explains how low supply and high demand can impact buyers:
“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months. Now, almost 6 in 10 homes listed are selling for over the asking price.”
In El Paso County the average sales to list price in September was 102.3% for single family and patio homes and 102.7% for condos and townhomes. Once again, when it comes to market conditions, you must look at the LOCAL trends. Colorado Springs has consistently performed better than the national average for some time now.
You may need to rethink how you look at a home’s asking price.
What this means is that if you’ve found your dream home, you need to be realistic about this “new normal” and how that impacts the offer you’ll make. Offering below or even at a home’s asking price may not cut it. In today’s market, somewhat like an auction, the highest bidder often wins the home.
Currently, the asking price is often the starting point in the negotiation rather than the ceiling. If you really love a home, it may ultimately sell for more than the sellers are asking—in some cases, a lot more. That’s important to remember when we sit down to craft your offer.
Understand that an appraisal gap could happen.
Appraisal gaps—the gap between the price of your contract and the appraisal of the home—are more frequent in today’s market due to home appreciation and the auction-like atmosphere in the selling process.
According to Corelogic: “Beginning in January 2020, nationally, 7% of purchase transactions had a contract price above the appraisal, but by May 2021, the frequency had increased to 19% of purchase transactions.”
When this occurs, your lender won’t loan you more than the home’s appraised value, and the seller may ask you to make up the difference out of pocket. Buyers today need to be prepared for this possibility. It’s important to know your budget, know what you can afford, and we can write the offer in such a way to cover the possibility of an appraisal gap.
All of these things will come into play when you find the home you wish to buy. This is just another reason why it’s important to have a seasoned real estate professional like me on your side as you tread the “new normal” of making an offer that not only excites the seller, but one that makes it to the closing table.
The 25th Annual UCCS Economic Forum will be held virtually again this year on Thursday, October 14th from 1-4 p.m. It will be presented at NO COST to registrants; however, registration is required.
As you might be aware, I’ve been a sponsor of this event since its inception and the annual event is one that no Colorado Springs businessperson should ever miss.
For more information and to register please go to:
http://uccseconomicforum.com/registration/
