HARRY'S BI-WEEKLY UPDATE 1.23.24
January 23, 2024
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.
THE NEW YEAR IS STARTING MUCH LIKE 2023 ENDED IN RESIDENTIAL real estate…
I wish I could tell you I could wave a magic wand and bring back the interest rates of several years ago and the home availability of even further back than that. But, alas, even I, with my almost 52 years in the local Residential real estate arena and my added bonus of a background in Investment Banking, can’t do that.
What I can do is try my best to help you understand today’s market and work with you to achieve your individual wants, needs and budget requirements whether it comes to buying to trade up or move to a new neighborhood or for investment purposes. Whatever your reasons for wanting a home, I can assist.
As you might have seen, interest rates ARE lower than they have been (6.6% for a 30-year fixed rate as of last week) and I’m guessing they will settle in at around 6% for quite a while. That was the norm for many years, and I would predict it will be for some time to come.
Borrowing rates on a 15-year fixed rate mortgage, which is becoming more popular with folks refinancing their home loans, also fell last week to 5.87% last week, according to Freddie Mac.
The biggest problem now is the lack of available homes for sale. Some of that is due to homeowners with very low interest rates that have chosen to stay put. Some are renovating and some are simply waiting.
I’ve had a couple of homes listed for clients recently and almost like the frenzy of several years ago, I’ve had multiple offers, several all-cash. With so few to choose from, it’s not an easy task to find a home.
This is NOT just a Colorado Springs problem. High prices combined with high interest rates were a bad combination, period. Sales of previously owned homes across the country were the slowest in 30 years in 2023.
The National Association of Realtors (NAR) said last week that existing home sales in 2023 were down 18.7% from 2022 making it the weakest year for home sales since 1995 and the biggest annual decline since 2007, the start of the housing slump of the late 2000’s.
Renters are still finding high rental rates, so with the lower interest rates we are seeing, those folks are wanting to move to ownership if possible. That makes sense because monthly housing costs go to paying down someone’s mortgage…so why not make it your own?
2024 should bring a brighter picture to the local Residential real estate market. Lower interest rates will bring more buyers and sellers to the table, and we are still seeing some homebuilders offering “buydowns” that are also lowering buyers’ mortgage rates.
Building more homes to make up for the lack of available ones for sale is not a simple thing, but housing does look like it could boost economic growth for this year. The National Association of Home Builders (NAHB) said that their single-family home sales expectations over the next six months rose to its highest level in January since July. And the Commerce Department reported that construction was started on a seasonally adjusted 1.09 million homes nationally in the fourth quarter of 2023—the most since the second quarter of 2022.
If new home construction is something you want to consider, that’s something I can help with as well. I have a long-standing relationship with a number of local builders and can assist with site selection, elevation, financing and more. And did I mention that this comes at no additional cost to you?
It's important to also remember that home appreciation has continued, and experts are predicting a continued rise for years to come. For those who were waiting for prices to fall, well…. you will be waiting a long, long time and while you’re waiting, you are losing home equity.
The ins and outs of Residential real estate can be puzzling but fortunately you have me in your corner and that’s worth a lot. I’ve seen every cycle imaginable and have been able to help my clients find what they want and make money in the process.
Yes, it’s going to take a bit longer in today’s market, but it’s not impossible. As my clients always say, “Where there’s a will, there’s Harry!”
If anyone can help you, your family, friends, or coworkers…it’s me. I have the experience and knowledge to back that up and am here to help when needed.
So, if you’ve even been thinking about a move, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get together and see how together we can make your Residential real estate dreams come true.
My company just released a comprehensive look at Colorado Springs Residential real estate. It’s a review of the past year as well as a look in our “crystal ball” for this year.
You can click here to read the report in its entirety. It’s an easy read and full of useful information.
If you have any questions, just give me a holler.
HOME PRICES FORECAST TO KEEP CLIMBING…an Infographic
KeepingCurrentMatters, 1.12.24
Some Highlights:
- If you’re worried about home prices continuing to rise, you can see that the Home Price Expectation Survey (HPES) shows that experts are projecting they’ll continue to rise at least through 2028.
- Based on that forecast, if you bought a $400,000 house this year, experts say it could gain over $72,000 in equity over the next five years.
- Many experts forecast that home prices will keep rising for years to come, and this is especially true in areas like Colorado Springs where companies keep relocating and folks keep wanting to retire here.
ECONOMIC & WORKFORCE DEVELOPMENT REPORT
Data-Driven Economic Strategies, December 2023
As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey. You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report.
This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.
To access the report, please click here and if you have any questions, give me a call.
TRENDS IN SENIOR PURCHASING HABITS
The SRES Professional, Nov/Dec 2023
In case you don’t know, among my many professional designations I am a Senior Residential Professional (SRES) which has given me a lot of insight into the buying and selling trends of seniors.
I found this data about the trends in “senior” purchasing habits interesting and wanted to share.
As you might expect, retirees move for a variety of reasons: a desire to be closer to family, a more temperate climate, a new cultural experience, a different city, a community of other retirees, a smaller home, and the list goes on. Others want a change of pace, easier access to medical care, or less traffic to manage now that they don’t have a daily commute.
While there are many motivations behind post-workforce relocations, one compelling factor consistently tops the list of reasons why people make big moves in retirement: the pursuit of financial benefits.
Recent data from Vanguard highlights a financial trend among seniors—approximately 80% of those aged 60 and above are homeowners, with almost half of their wealth invested in real estate. Given that substantial investment in their property, it makes sense that many in this demographic opt to make changes to their real estate portfolio as they enter retirement. Selling and relocating often provides them with a financial boost.
Retirees around the age of 60 tend to be the ones who relocate to less expensive housing markets. They can reap the reward of their high home appreciation and put it to work in other ways.
This is one of the reasons we have seen “senior” folks from California and other far more expensive housing markets move to Colorado, and we are likely to consider seeing this trend for a long time to come. It is also a reason why there are so many all-cash buyers entering our market.
And, when you add that to all the outdoor activities and more that we have to offer, I’d have to say I can’t blame them.
FEATURED LISTING:
Yours here? It's going to get a lot of attention in today's market. Give me a call.
