HARRY'S BI-WEEKLY UPDATE 11.5.20
November 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.
THE ONE CONSTANT IN THIS NOT-SO-NORMAL ECONOMY AND WORLD? HOMEOWNERSHIP.
I was waiting to write this AFTER the Presidential election but since the results aren’t final at this time I didn’t want to prolong giving you great news regarding the state of residential real estate.
With “home” taking on so many new meanings and functions, the housing market is playing a leading role in the present economic turnaround. Many folks are buying or selling much sooner than they anticipated as they search for more functionality and personal comfort in their homes.
High buyer demand and low inventory are causing homes to appreciate at a faster-than-normal pace. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year. This is significant in terms of the national economy as well as to the bottom line of current homeowners.
U.S. home prices between July and August 2020 showed a largest increase since the Federal Housing Finance Agency (FHFA) started the House Price Index in 1991.
As most of you know, homeownership is something I advocate for anyone who is in a position to do so. And this is not just because I work in the industry. I have invested in real estate since I purchased my first home in 1972 (even at an 8.5% mortgage loan rate!) and it has proven time and again to be a great investment. The personal economic gains over the long haul have consistently outperformed stocks and bonds and the equity gains have allowed me to purchase other homes while keeping my bottom line in check.
COVID-19 has contributed greatly to the lack of inventory in the Colorado Springs area for a number of reasons. As mentioned earlier, folks who are working from home (WFH) and homeschooling their kids are finding new wants and needs for their housing situations. And, WFH is also affording a number of those who live in crowded cities the opportunity to move to a more favorable environment such as ours.
According to a new survey from online freelance company Upwork, as many as 23 million Americans plan to relocate to a new city due to WFH.
I’ve had more relocation calls in the last few months than I had all last year from those wanting to move here, and let’s face it…why not move to “America the Beautiful City” if that’s an option? We get it. However, that is another factor contributing the 25-year low availability of existing homes for sale here.
As you will see, our median home prices are still on the rise, and I’m afraid that will continue until we have more listings. Yes, rising median home prices are great, but this kind of rate is not sustainable, nor is it practical. It is particularly hard on first time homebuyers who do not have equity to use and have trouble qualifying for the higher loan amounts.
Something for present homeowners to remember 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.
Also worth considering when you sell your present home is the possibility of leasing it back from the buyer so that you have time to complete the process of finding a new home or getting ready for a move. That’s not always an option, but it’s certainly one we can request when listing your home.
New home construction is a more viable option than in past years and I’ve helped a number of clients in their new home purchases recently. My good relationships with a number of local builders has given my clients an advantage. I can help with site and home selection and even direct folks to the best lender for their individual situation. And did I mention this comes at no additional cost to the client? Just one of the many things I provide as part of my special brand of customer service.
So, if you are thinking of making a move…don’t delay. It won’t be as easy as in the past to find what you want, need and can afford, but having me on your side will significantly help. I have been in the local residential real estate arena for more than 47 years, and with my investment banking background to boot, can help you make all your residential real estate dreams come true.
It all starts with a call to me at 593.1000 or an email to Harry@HarrySalzman.com and we can get the ball rolling. The sooner you begin, the sooner you’ll be living in the home that can provide you with the comfort and security you want, need and deserve.
And now for statistics…still “off the chart” but lack of listings is troubling…
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.
OCTOBER 2020
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the October 2020 PPAR report. Remember that the new 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 11.
The sales price/list price for single family/patio homes was 100.8% and for condo/townhomes was 100.6%.
Please click here to view the detailed 9-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 October 2020 to October 2019 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,559, Down 6.3%
· Number of Sales were 1,732, Up 19.6%
· Average Sales Price was $432,477, Up 16.2%
· Median Sales Price was $383,447, Up 14.5%
· Total Active Listings are 881, Down 54.6%
· Months Supply is .05, Down 62.0%
Condo/Townhomes:
· New Listings were 230, Up 19.8%
· Number of Sales were 260, Up 24.4%
· Average Sales Price was $276,160 Up 7.5%
· Median Sales Price was $262,000, Up 13.9%
· Total Active Listings are 101, Down 46.3%
· Months Supply is 0.4, Down 56.8%
And a look at more statistics…
October 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 19.5%
- Median Sales Price for All Properties was Up 14.1%
- 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:
HOT housing market NOT LIKELY TO COOL IN WINTER
Realtor.com , 11.3.20
Winter is normally a slow season in real estate, but economists predict it isn’t likely to be that way this year. Lawrence Yun, economist for NAR, says “It will be one of the best winter sales years ever”.
As previously mentioned, low inventories, combined with high demand due to record-low interest rates is sending buyers to the market quickly.
“We currently see buyers sticking around in the housing market much later than we usually do this fall,” says Danielle Hale, realtor.com’s chief economist. “If that trend continues, we will see more buyers in the market this winter, too. So this winter is likely to be a good time to sell.”
Here is a snapshot of the national picture of existing home sales in September 2020. As you can see, prices continue to rise, and inventory continues to drop. Sales are higher and inventory is lower locally, but you get the idea. It’s a busy, busy housing market most everywhere.
I can’t emphasize enough that if you are even thinking of making a move, NOW is the time for us to start the process. There are options available for most all situations and with my experience and expertise, I’m the one that can help you navigate through the home buying and selling wars.
Give me a holler sooner than later and together we will find the right situation for all of your family’s wants, needs and budget requirements.
UCCS ECONOMIC FORUM DASHBOARD
UCCS Economic Forum, College of Business, updated 10.29.20
As always, I like to share the info I receive from the UCCS Economic Forum as soon as it’s available. You can click here to see the U.S. “Big Picture” as well as the local economic news.
If you have any questions, please give me a call.
