HARRY'S BI-WEEKLY UPDATE
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September 9, 2013
HARRY’S BI-WEEKLY UPDATE A Current Look at the Colorado Springs Residential real estate Market
A “SWEET AND HAPPY NEW YEAR TO ALL WHO CELEBRATE”
Last Wednesday evening marked the beginning of Rosh Hashanah, the Jewish celebration of the New Year. I would like to wish all my friends and clients who celebrate a Healthy and Happy New Year and wish that all of you to be inscribed in the “Book of Life” for the coming year. L’Shana Tova.
HOT AUGUST STATS JUST OFF THE PRESS… Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
The Local real estate news seems to be keeping up with our recent weather—hot, hot and hot. When you take a look at our local single family/patio home sales you will see that the number of sales in the past month was 1105 and our total active listings was 4246. That means that 26% of current listings sold in August. This is a plus for both Buyers and Sellers.
Some highlights the latest report, comparing August 2013 to August 2012 in PPAR include:
Single Family/Patio Homes:
Condo/Townhomes:
To view the 12-page report in its entirety and to see how your individual area is performing in comparison to the rest of the local market, click here.
What this says to me is that many of you are doing your homework when it comes to both listing your current property and trading up to another one. As I’ve been telling you, with multiple offers, some even over the listing price, you need to be informed BEFORE you even start the Buying and/or Selling process. Once you make a decision, you no longer have the time you once had to either make or accept an offer. Yes, Buyers will more than likely get more than they would have in the recent past, but finding the next home is not going to be quite as easy as in the recent past, either.
Here’s where I come in. At Salzman real estate Services I personally have more than 40 years of experience in the Local Real Estate market and can help you make the crucial personal decisions that should be made prior to listing or buying a home. We can help you wade through the process of finding the appropriate listing price, be able to explain where prices are headed, help you get pre-approved for a new mortgage, and determine exactly what you are looking for within your budget. This can help save time, money and more importantly, disappointment. We’ve been through the buying and selling wars and are happy to share our experience with you. Just give us a call at 598.3200 or email me at Harry@HarrySalzman.com .
EXISTING-HOME SALES SPIKE NATIONALLY IN JULY NAR/realtor.org, 9.1.13, WSJ and GAZETTE, 8.22.13
On a national level, existing-home sales rose strongly in July, with the median price maintaining double-digit year-over-year increases, according to the NAR.
“Lawrence Yun, NAR chief economist, said changes in affordability are impacting the market. “Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines,’, he said. ‘The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers.’
Despite higher mortgage interest rates, Yun identified compensating factors that can sustain a continued recovery. ‘Although housing affordability conditions will become less attractive, jobs are being added to the economy, and mortgage underwriting standards should normalize over time from current stringent conditions as default rates fall.’”
It is important to note that the median existing-home price for all housing types nationally was $213,500 in July, which is 13.7% above July 2012. This makes 17 consecutive months of year-over-year price increases, which last occurred from January 2005 to May 2006.
The housing market is inching closer to pre-crash levels. Home prices are now within 15.2% nationally from their peak, according to a new report by Lender Processing Services.
The higher prices, coupled with the mortgage rates inching up are certainly contributing factors in the current rush to sell or purchase homes. Fear of having to pay more for what they want are starting to motivate many who have been sitting on the fence for while with a “wait and see” attitude. It’s no longer time to wait and see—now is the time to sell and trade up or buy—we’ve already seen the market bottom.
BUYING OR SELLING…THE TIME IS NOW
I have been through every housing cycle imaginable since my real estate career began in 1972 so there is little I haven’t seen in the way of the market value and mortgage swings. There is no “right” or “wrong” time to Buy or Sell. Most decisions are based on need—a larger home, a new job, a new neighborhood or school district, etc. In the long run, and with the proper tools in your hands, the time to Buy or Sell can almost always be “now”.
It isn’t likely that home prices will start dropping again, however, even more than the stock market, the housing market is a slave to momentum. Prices can get out of whack as stories of double-digit gains get reported, but consider that the last babble took many years to inflate before popping. However, for those of you looking for cheap prices, that time has passed.
But for those of you looking for a place of your own, there is still a great argument to Buy now. No matter how you look at it, mortgage rates are still at historical lows and lenders are starting to loosen up on lending criteria, even for those who previously had to wait due to foreclosure, bankruptcy, etc. While the rates are continuing to rise based on the strengthening economy, they are still very affordable. This will help protect you on the outside chance that inflation skyrockets, because while home values could soar, your loan rate would remain the same.
Homeowners who already have ample equity are quickly building on that equity, while the 8.3 million homeowners on the fence with little or no equity are on track to regain enough equity to sell before 2015 if home prices continue to increase at the rate of 1.33 percent per month that they have since bottoming out in March 2012.”
Locally, our home equity didn’t see the drop that a large portion of the country experienced, so what that means to us is that homes here are increasing equity at a quicker pace than nationally, this shortening the time to wait for increased gains.
FIRST TIME “FLIP” IN MORTGAGE AVAILABILITY
It’s big news. All the periodicals I read have been talking about the fact that for the first time ever—jumbo mortgage rates have dropped below those for conforming mortgages.
This is new territory for both brokers and lenders and what it can mean essentially is that you can borrow more for less! For those of you looking at homes that might have cost more than you thought you could afford, you might get to think again. These loans are not for everyone, since jumbo loans are those above the $417,000 limit for mortgages backed by Fannie Mae and Freddie Mac, but for those in this market, the jumbo mortgage rates are certainly in your favor at this time.
17TH ANNUAL SOUTHERN COLORADO ECONOMIC FORUM…MARK YOUR CALENDARS
Mark your calendars for Thursday, September 26, 1013 from 7:00 a.m.- 11:30 a.m. at The Antlers for another blockbuster presentation by the Southern Colorado Economic Forum.
The keynote speaker is Jim Paulsen, Chief Investment Strategist, Wells Capital Management and this event has been a sell-out for the past three years, so get your reservation in early.
This is the premier resource for local economic information—provided for and supported by—local business. It is also an opportunity for you to learn about the trends and dynamics occurring nationally, statewide and in our community, and how they will impact your business.
Data provided to each participant can help you make better business decisions and jump-start your business planning for the coming year.
Salzman real estate Services, LTD. is proud to again be the only individual Real Estate sponsor of this event.
For more details or registration information, please go to: www.southerncoloradoeconomicforum.com. Be sure to register soon so you don’t miss out on what I consider to be one of the most important meetings of the year for any business owner or professional.
PHILOSOPHY OF THE DAY The Empty Chair
Most people think of forgetfulness as a defect. I consider it a great benefit.
Being able to forget frees you from the burdens of the past.
FEATURED LISTING
Harry A. Salzman. CRS, CRP, CNE email: Harry@HarrySalzman.com Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
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