HARRY'S BI-WEEKLY UPDATE 12.6.19
December 6, 2019
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Unique Brand of 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.
LOTS OF GOOD NEWS BUT…
Colorado Springs keeps making all the Top 10 lists nationally which is great for our home appreciation values but…we just don’t have many homes for sale, especially in the mid-$300,000 range.
Just last week the Federal Housing Finance Agency published it’s third quarter Home Price Index which included this: “Colorado Springs, Colorado Ranked #9 in U.S. Home Appreciation”.
The study is a long-running and geographically comprehensive measure of house price appreciation in the U.S.A. Colorado Springs is ranked #9 out of 100 metro areas with a weighted price appreciation of 7.4% over last year. In comparison, the State of Colorado is ranked 25th in the U.S. with a 5.1% increase over last year.
Below is a chart describing our home appreciation growth in detail:
While all of this is great news and indicative of the economic and population growth of Colorado Springs, it is also a result of a shortage of existing homes for sale. The lack of available homes for sale, along with a 20-year-low foreclosure rate, are contributing factors in the home appreciation we are seeing at present.
As you will see in the November statistics, listings were down 26.3 percent from October 2019 and down 2.6% from a year ago November. And while this time of year is traditionally slower due to the holiday season, I’ve still got a lot of folks looking to sell their homes in order to trade up or move to another neighborhood, but…it’s really difficult at present with so few homes from which to choose. Those that do come on the market are selling quickly and there’s little time to commit to making an offer.
Historically low interest rates and increased home equity are two of the big reasons that a number of folks are wanting to sell and trade up. Monthly mortgage payments at today’s low rates are making it so much easier to purchase a more expensive home without the added burden of payments too much higher than you might be paying at present. All in all, it’s a great time for pursuing your residential real estate dreams.
However, it is more important than ever to have a seasoned, knowledgeable real estate professional on your team when you are ready to consider your move. My 46 plus years in the local arena coupled with my investment banking background give you the edge over the competition. If it’s possible to make a deal, you’ve got me to negotiate for you. And if it’s in your best interest to walk away from a possible deal, I’ll tell you that, too. A “win” isn’t always a “win” if it isn’t in your favor for the long run. I’ve been around for so many different cycles that I can give you advice based on facts, not fiction. That’s one of the reasons I’m now working not only with past clients, but also their children and grandchildren. After all, looking after the individual needs of each and every family member is my job and one I take very seriously.
Our local homebuilders are seeing a lot of activity and that’s another area where I can assist at no additional cost to you! I have long standing relationships with most local builders and can help you with site and home selection as well as assist you in finding financing that fits your particular needs.
If you’ve even considered a move, or even an investment home purchase, now is the time to give me a call. It’s certainly not as easy a proposition as in the past, but with me by your side---I’ll work to make it as stress-less as possible.
Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com today and let’s see how we can work together to make your real estate dreams come true.
NOVEMBER 2019 BROUGHT MORE HOME APPRECIATION BUT FEWER LISTINGS
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the November 2019 PPAR report. Just a reminder 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 27. For condo/townhomes is was 17.
The sales price/list price for single family/patio homes was 99.7% and for condo/townhomes was 100.3%.
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 November 2019 to November 2018 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings are 1,081, Down 2.6%
· Number of Sales are 1,188 Up 8.4%
· Average Sales Price is $365,218, Up 6.6%
· Median Sales Price is $325,000, Up 7.3%
· Total Active Listings are 1,667, Down 22.6%
· Months Supply is 1.4
Condo/Townhomes:
· New Listings are 150, Up 3.4%
· Number of Sales are 173, Down 4.4%
· Average Sales Price is $248,247, Up 10.2%
· Median Sales Price is $230,000, Up 7.5%
· Total Active Listings are 152, Down 7.3%
· Months Supply is 0.9
Now a look at more statistics…
NOVEMBER 2019 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 Colorado Springs 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 5.4%
- Median Sales Price for All Properties was Up 9.0%
- Active Listings on All Properties were Down 30.6%
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:
FIVE REASONS TO SELL THIS WINTER
Keeping Current Matters, 12.2.19
Looking for a good reason to sell now? Here are five of them!
- Demand is strong. Buyer demand remains strong throughout most of the country and especially here locally according to the latest Buyer Traffic Report from the NAR. Buyers are ready, willing and able to purchase, and are in the market right now. Often, multiple buyers are competing with each other for the same home.
- There is less competition now. The shortage of existing homes for sale means your present home will get better exposure now. With home equity rising in most homes, present homeowners have a pent-up desire to move and take advantage of that and the low interest rates. With more homes on the market in the higher end range, you can your equity to work for you without increasing your monthly payment as much as when rates were higher earlier in the year.
- Buyers are serious at this time of year. Traditionally, homeowners thought of spring as a great time of year to list their homes when buyer traffic may be a bit higher. This time of year, however, the buyers who are seeking a home, whether for relocation or otherwise, are serious ones. They’re ready to make offers and ready to move. Your present home may be just what they are looking for.
- There will never be a better time to move up. If you are looking to sell and trade up, now is the time. There is more inventory at the higher price ranges. This means if you’re planning on selling a starter or trade-up home and moving to your dream home, you’ll be able to do that at this time. Demand for your present home is high at present.
- It’s time to move on with your life. Look at the reason you’re thinking of selling in the first place and determine whether it’s worth waiting. Isn’t it time to go on with the life you want for you and your family? Only you can answer that, but perhaps the time has come for you and your family to move on and start living the life you desire.
FORGET THE PRICE OF THE HOME. THE COST IS WHAT MATTERS
Keeping Current Matters, 11.7.19
Home buying activity (demand) is up and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate, just as we are seeing locally. Firms are starting to increase their projections of home appreciation going forward because of this.
While this may cause concern about affordability, a study was released by First American last month that explains how price is not the only market factor that impacts affordability. Prices, mortgage rates and wages were studied from January through August, 2019 and here are the findings:
Home Prices:
“In January 2019, a family with the median household income in the U.S. could afford to buy a $373,900 house. By August, that home had appreciated to $395,000—an increase of $21,100.”
Mortgage Interest Rates:
“The 0.85 percentage point drop in mortgage rates from January 2019 through August 2019 increased affordability by 9.7%. That translates to a $40,200 improvement in house-buying power in just eight months.”
Wage Growth:
“As rates have fallen in 2019, the economy has continued to perform well also, resulting in a tight labor market and wage growth. Wage growth pushes household incomes upward, and were 1.5% higher in August compared with January. The growth in household income increased consumer house-buying power up an additional $5,600.”
When all of these market factors are combined, purchasing power increased by $24,500, thus making home buying more affordable, not less affordable. This table explains it simply:
Bottom Line? Do not focus solely on the purchase price of a home. It is more important to focus on what you can afford to pay each month in terms of a mortgage payment because that is the dollar amount that will affect your budget. It’s quite likely that you can afford to buy a more expensive home than you might have considered without paying more than you have budgeted for a monthly payment.
UCCS ECONOMIC FORUM DASHBOARD
UCCS Economic Forum, College of Business, updated 11.29.19
Here are the just published statistics for national and local economy, employment, real estate and much more from the UCCS Economic Forum. Click here for the charts and if you have any questions, just give me a holler.
