HARRY'S BI-WEEKLY UPDATE 11.22.21
November 22, 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.
SOME DAYS THERE SEEMS TO BE MORE QUESTIONS THAN ANSWERS…
You know, after 48+ years in local Residential real estate, along with my Investment Banking background, I’ve become somewhat of an expert in these arenas. Some days I wish I had a crystal ball because oftentimes there is no definitive answer to a lot of the questions I’m asked.
It’s easy for me to understand why Zillow ended its iBuying department. Buying and selling Residential real estate is not for the timid…or for those with limited experience.
Are prices going to continue to climb? Are interest rates going to go up as well? Is it a good time to purchase a home for investment purposes? Am I better off looking at new construction because of the lack of existing homes for sale? Is this the best time to sell my present home and trade up?
Those are just a few of the questions I field daily. If I knew all the answers to those inquiries, it sure would make life easier for not only me, but for my clients as well.
However, I do have some answers that have remained true for as long as I’ve been working in Residential real estate.
All answers need to first be based on LOCAL statistics. When you see on national news that home prices are going up or down—always remember they are talking about the U.S.A. in general. As I’ve been saying for quite some time now, Colorado Springs as a city is seeing spectacular growth. When the housing crisis enfolded in 2007-8, we were not hit nearly as hard as the rest of the country and thus were able to recover at a faster pace.
During the recent pandemic as folks were leaving big cities or starting to work from home (WFH), Colorado Springs was the choice of many.
As more and more companies are moving here and relocating employees with them, those folks are needing places to live as well.
When you add that to our excellent work/life balance…well, I think you get the picture.
While looking at the local picture is important, the primary place to look is at your individual situation.
When I’m asked, “Is now good time to buy or sell?”, I always answer the same way. “If it’s right for YOU, then it’s a good time to buy or sell.” There’s no standard formula for buying and selling a home and that’s why I spend time with each client to determine what is best for their situation.
It’s important to find out what someone is looking for and determine why they want to buy, sell, or invest in a home as everyone has different wants, needs and budgets. Those type of questions need to be addressed upfront and we can proceed from there.
Yes, it’s not easy out there in Residential real estate territory these days, but when you’ve got me on your team, you’ll win in the end. It may take longer than usual to find exactly what you want, but if there’s any way possible, I will work to make it happen for you and your family.
And the best move you can make at present is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered. If I don’t have the answer, I sure do know where to get it, and that’s as important as “knowing it all”.
I look forward to speaking with you.
COLORADO SPRINGS HOME PRICES JUMP HIGHER IN THIRD QUARTER 2021…AMONG MOST EXPENSIVE IN THE COUNTRY
The National Association of Realtors, 11.10.21
Median prices of single-family homes across the nation rose double-digits for Quarter Three 2021 in 99% of the 183 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 16.0% to $363.700.
Colorado Springs surpassed that, with the median price of single-family homes jumping 18.6% to $441,200 during the third quarter of the year. Prices reflect detached, single-family and patio homes but not townhomes or condominiums.
The median price in the Springs ranked 29th highest of the cities surveyed. And once more, the good news is that while our home values are increasing, they are still less than those in the Denver and Boulder areas, which makes our city more attractive to potential companies and others wanting to relocate here.
Qualifying income for local mortgages continues to rise, however, increased home value in your present home can likely give you a larger down payment. That could possibly keep your monthly output lower than you might expect, even in a more expensive new home.
To see all 183 metro areas in alphabetical order, please click here. To see them in ranking order, click here. To see the qualifying income necessary for mortgages, click here.
And if you have any questions, you know where to reach me.
ERA SHIELDS “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW
ERAShields, 10.31.21
As always, I am pleased to provide you with the most current local information. This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.
Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety.
HOMES SELLING IN ONE WEEK, FORCING BUYERS TO TAKE RISKS
The Wall Street Journal, 11.12.21
This recent article wasn’t news to me, as I’ve been encountering similar situations for over a year now, but it’s interesting to see that buyers all over the country are also having difficulty in purchasing existing homes for sale in this seller’s market.
According to a survey by the National Association of Realtors, “Homes sales between July 2020 and June 2021 sat on the market for a median period of one week before going under contract.” That is down from three weeks a year earlier and marks a record low in data going back to 1989.
This rapid turnover helps explain how the number of homes sold rose to multiyear highs during the Covid-19 pandemic, even as the inventory of homes for sale remained so low.
The pandemic sparked the biggest housing boom in more than a decade…for many of the reasons I mentioned before.
Supply is still constrained, and buyers are having to pounce quickly once they find what they are looking for. As I’ve told you in previous articles, many buyers have waived their rights to terminate a contract because of a low appraisal or unfavorable inspection. In fact, several my buyers have bought homes without ever seeing them in person.
This has been especially true of new construction where there are only so many lots released at a time and buyers must get in line to purchase. I’ve gone to those sites for my clients and selected lots and home elevations, and we have communicated through Zoom calls so the clients can make a quick decision based on my input. This is a service I provide at no additional cost to the buyer and can make a difference, especially when time is of the essence.
One of my recent clients did not get their first choice due to not committing to the lot immediately. They were able to get their second choice, but the homebuilder required a commitment on the phone with a signed contract emailed immediately thereafter.
Fortunately, I have good working relationships with most local builders but even that doesn’t always get me to the front of the line. Lately it’s been via a lottery type of situation and buyers only have x amount of time to commit.
Whether it’s new construction or purchasing an existing home, the most important thing is knowing your wants, needs and budget before even starting to look.
After you make those decisions, the next best one is to call me and get the ball rolling. It’s going to take longer than you might expect and the sooner we start, the sooner you can be living in the home of your dreams.
HARRY’S JOKE OF THE DAY:
Even though it’s a “corny” joke, there’s a double meaning in here.
As we approach the Thanksgiving holiday, I always start by giving thanks for my family and you, my clients and friends.
Have a safe and happy Thanksgiving.
