HARRY'S BI-WEEKLY UPDATE 11.7.16
November 7, 2016
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.
JUST A FRIENDLY REMINDER….
Tomorrow is Election Day 2016 and it’s up to all of us to cast our vote for the candidates and issues of our choosing. It’s one of the privileges afforded to us by the Constitution and one that should not be taken lightly. I realize this election year has been a rather contentious one, but there are many local candidates and U.S. Congressmen and Senators, as well as local issues, that need our support. If you haven’t already voted via mail-in-ballot, please take the time to do your civic duty. Our future depends on it.
AND THE GOOD NEWS IN THE LOCAL housing market CONTINUES
October PPAR statistics show the Pikes Peak housing market performing extraordinarily well and now we have 27 consequent months of year-over-year increased local Residential real estate sales.
Homes are selling at 99.2% of listing price with the average days on the market at 37. This is fabulous news for both buyers and sellers.
As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes are up 13.7% year-to-date and Condo/Townhome sales are also up 13.7% over the same time period.
The Monthly Summary shows that total active listings are down 24.1% for Single Family/Patio Homes and 20.9% for Condo/Townhomes compared to a year ago. This downward trend is continuing to be great for sellers. While new listings are slightly up for Single Family/Patio Homes, they are down 10.6% for Condo/Townhomes and it continues to be more difficult, but certainly not impossible, for current buyers to find a new home.
If you have been thinking of listing your home, now is the time. However, be prepared for a quick sale, which means you need to have an idea of what and where your next home might be located.
Median Sales Prices are up year-over-year 8.8% and 11.6% respectively for Single Family/Patio Homes and Condo/Townhomes—more good news for both buyers and sellers.
As in recent times, we are still experiencing some problems with longer lending approval times, bidding wars, delays in getting home appraisals and fewer homes available in the $300,000 and under range.
It’s vitally important in today’s market it is to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.
With interest rates holding at historic lows and equity increasing at a good pace, now is the time to make your move either to sell and trade up or buy for the first time or for investment purposes. To get the ball rolling, simply call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you, your family members or co-workers.
OCTOBER 2016 WAS THE 27TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the October 2016 PPAR report. Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.
In comparing October 2016 to October 2015 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,218, Up 1.8%
- Number of Sales are 1,266, Up 14.4%
- Average Sales Price is $293,972, Up 11.5%
- Median Sales Price is $255,625 Up 8.8%
- Total Active Listings are 2,227, Down 24.1%
Condo/Townhomes:
- New Listings are 161, Down 10.6%
- Number of Sales are 183 Up, 10.2%
- Average Sales Price is $187,283, Up 10.6%
- Median Sales Price is $173,000, Up 11.6%
- Total Active Listings are 200, Down 20.9%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
October 2016 October 2015
Black Forest $502,500 $423,500
Briargate $352,000 $292,750
Central $204,000 $204,150
East $215,000 $187,500
Fountain Valley: $224,500 $199,900
Manitou Springs: $270,250 $295,000
Marksheffel: $271,450 $264,500
Northeast: $255,000 $233,000
Northgate: $418,857 $398,450
Northwest: $338,850 $334,950
Old Colorado City: $219,450 $242,000
Powers: $255,000 $230,000
Southwest: $345,000 $276,000
Tri-Lakes: $464,669 $430,609
West: $257,900 $272,500
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
COLORADO SPRINGS…
- 5th Best City to Live in 2016—U.S. News and World Report
- 4th Best City for Commuters—selfstorage.com
- 9th Best City for People who like to Pursue an Active Lifestyle—wallethub.com
- 5th Most Educated City—Wallethub.com
- 11th Most Affordable City—Forbes
- 12th Best City for Business and Careers—Forbes
- One of the Top 6 Hottest Places for Urban Dwellers—Money Magazine
- Consistently one of the “Hottest real estate Markets” in the Nation this year
And the list goes on and on. Those of us who live here know all of this, but now the rest of the country is finding out exactly why we choose to live and work here.
Yea for us and a special “shout out” to Mayor John Suthers, the City Council, Regional Business Alliance, Colorado Springs Visitors Bureau and more for their tireless devotion to making all of this a reality.
HOMEOWNERSHIP RATE RALLIES
RISMedia.com
The tide may be finally turning on homeownership. As I’ve been telling you, the home ownership rate has been decreasing and in the second quarter 2016 it reached it’s lowest point in more than 50 years—62.9%--according to the U.S. Census Bureau’s Quarterly Housing Vacancies and Homeownership Report.
Third quarter 2016 showed a slight increase to 63.5% which is good news indeed. As expected, rates in the third quarter were highest among those aged 65 and old--79.0%--while lowest for homeowners aged 35 and younger--35.2%.
The new regulations, low interest rates and down payment requirements along with loosened credit qualifications by lenders are helping to contribute to increased homeownership rates. People, especially younger ones, are more confident in the economy and job prospects, and as millenials age and start to have families, owning a home becomes more of a priority.
It will take some time, but hopefully this is a sign that the “American dream” of homeownership will be coming true for more and more people.
A GLIMPSE AT THE CURRENT STATE OF THE housing market…FYI
Realtormag.com, 11.16
Jobs are growing, incomes are rising, interest rates remain historically low but as I just mentioned—home homeownership is still low. Lack of inventory in many U.S. markets is contributing to this; however, NAR Chief Economist, Lawrence Yun, thinks homeownership isn’t likely to budge too much, especially if interest rates start to rise—which he believes is likely given the healthy economy.
Supply and Demand:
Even though borrowers can get conventional loans backed by Fannie and Freddie for as little as 3 percent down, and from the FHA for 3.5 percent down, almost 40% of borrowers put down 20% for their home purchase in August 2016. In early 2014, only 34 percent put down 20 and it’s been rising ever since. See below:
SHOULD YOU SELL NOW OR WAIT UNTIL THE SPRING BUYING SEASON?
RisMedia.com
I get asked this question time and again and I always give the same answer—there are pros and cons that need to taken into consideration for each individual seller.
While a spring buying season is thought to be the “ideal”, this is not always the case. Here are some good reasons why selling now, rather than waiting for spring, might be a better decision for you.
- Less Competition. In spring, you can see “For Sale” signs popping up all over the neighborhood. If you choose to sell now there is sure to be less competition. The fewer comparable homes for sale, the greater the probability that a buyer will look at your home and that you can get the maximum amount of money for it. The low number of available listings gets even lower during these months, so listing your home now gives you additional exposure.
- Serious Buyers Are Out There. There are always buyers—no matter what time of year. Some buyers may stop their home search because it is fall or winter, buy serious buyers will continue to look at homes, no matter what time of year it is.
- The Best real estate Agents Are Always Up to the Challenge. Any real estate agent who tells you that the fall or winter months are not a good time to sell is not someone you want selling your home. A knowledgeable Real Estate professional, like myself, knows how to adapt to the current season and market their listings to reflect that. If any Real Estate agent doesn’t give you great tips on how to sell a home during the current season, you should be concerned about the creativity they are going to use when marketing your home.
- Staging for the Holiday Season. Many sellers are beginning to believe that “staging” is what helps sell a home since buyers often have a difficult time trying to envision themselves in a home. Whether or not this is true, you can do some simple “seasonal” staging such as adjusting the color of the décor or having an aroma in the air that is relative to the time of year.
- Mortgage Rates are Low. Rates are still historically low, but if the economy stays healthy, it’s likely that will soon change. This is a good reason there are still many potential buyers out there looking. An increase in interest rates over the winter months could mean fewer buyers who can afford a home come spring. Bottom line: take advantage of selling while the interest rates are still low.
- Quicker Transactions. There are fewer transactions now as compared to spring. As we have all experienced the delays from increased regulations and slower processing times this past summer, selling your home now can lead to a quicker closing time for all concerned. This will contribute to less stress for both you and your buyer.
Hopefully this will help you in deciding if selling your home now is the right thing to do for your personal situation. As always, any questions you might have can be answered by calling me at 598.3200. I’ll be delighted to answers any and all of your concerns—in this area—or any other concerning residential real estate.
