December 8, 2014

 

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.

                                   

HOME BUYING AND SELLING IS A “BALANCING ACT”

One of the questions I’m asked most often is “When is the “right” time to Buy or Sell a home?”  My response is normally the same—“It’s always the right time.” 

There are so many factors entering into the home buying and selling equation that are different for each individual situation.  Very few of us ever get to buy at the bottom of the market and Sell at the top, let alone making sure to find the lowest interest rate available at that time.  Most home decisions are based on needs, such as up-sizing or downsizing or moving to a new neighborhood or city.  You can’t always do that at the exact time you might want.  And even if you can, the market conditions and mortgage interest rates are in a constant flux of change. 

So rather than worry about the “right” time for buying or selling, consider what is the “right” time for you personally and what it’s going to take to make you happy.  As long as you and your family are happy with your home decisions, then it’s always going to turn out “right”.

 

NOVEMBER LOCAL STATISTICS

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

I’m happy to share with you the fact that the Pikes Peak area has been very fortunate in the number of recent residential closings.   Sales in November 2014 were more than 10% over last November.  Some of this is attributed to the fact that people like to be settled prior to December so they can celebrate the holidays in their “new” home.  Another factor is the still historically low mortgage interest rates.

The average and median sales prices are approximately the same as last November.

The number of listings is down about 15% from the same time last year and some of that might be due to Thanksgiving being so late in the month.  There is usually a group of Sellers who wait until after the holiday season to put their homes on the market. 

Positive statistics for El Paso County only as of November 30, 2014:

  • There were 2609 Active Listings
  • 699 were sold
  • Those were sold at 98.3% of the Listing Price
  • The average days on the market was 89

This is VERY positive and indicates that both Buyers and Sellers are aware that interest rates are not going to stay this low forever and that mortgage lending is going to have even more new regulations in the coming months that can slow down the closing process.

Here are some highlights from the PPAR report.  Please click here to view the detailed 10-pages .  If you have any questions, please give me a call.

In comparing November 2014 to November 2013 in PPAR:

                                              Single Family/Patio Homes:

  • New Listings are 783, Down 15.1%
  • Number of Sales are 782, Up 10.3%
  • Average Sales Price is $245,488, Down 1.0%
  • Median Sales Price is $216,750, Down 1.5%
  • Total Active Listings are 3,134, Down 14.8%

                        Condo/Townhomes:

  • New Listings are 118, Up 25.5%
  • Number of Sales are 122, Up 8.9%
  • Average Sales Price is $156,153, Down 8.9%
  • Median Sales Price is $136,212, Up 0.9%
  • Total Active Listings are 346, Down 11.1%

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Average Sales Price

Black Forest                            $433,750                              $404,237

Briargate                                  $271,672                              $292,547        

Central                                      $163,950                              $170,352

East                                           $179,900                              $191,414

Fountain Valley:                       $184,500                              $192,714

Manitou Springs:                     $310,000                              $331,214

Marksheffel:                             $313,116                              $299,941

Northeast:                                $213,000                              $237,815

Northgate:                                $332,041                              $355,332

Northwest:                               $308,500                              $335,188

Old Colorado City:                  $167,450                              $201,437

Powers:                                    $220,000                              $218,806

Southwest:                              $260,282                              $364,937

Tri-Lakes:                                $360,500                              $384,232

West:                                         $297,500                              $312,733

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

5 MISTAKES FIRST-TIME HOME BUYERS MAKE

Realtor Mag 2014

First-timers are eager to jump into home ownership but real estate experts say they see them committing the same mistakes time and time again.  Here are some of the most common ones, as identified by experts in a CNBC article:

 

  1. They are unprepared to compete against all-cash offers.  Buyers need to be ready to make a quick decision if the housing market is heating up.  Home buying is a lot like finding a job—it takes a lot of time to prepare—so that when the deal you want comes along, you’re ready to pounce on it.  Buyers should save as much as possible for a down payment, repair any credit blemishes and get preapproved for a loan to put themselves in a better position to compete.

 

  1. They place a car ahead of the home.  Lenders are going to look at an applicant’s debt-to-income ratio to determine how well they can afford a mortgage.  It is much easier to own a home if you can show a history of saving and not have gotten into too much debt.

 

  1. They place too much emphasis on online loan information.  Online sites can be a great place for obtaining general information about loan products and estimated costs, but visiting with a lender face-to-face will make the process less mysterious and help answer questions that inevitably arise.  It is important to talk to several lenders in order to get a feel for the various types of loans available and determine what fees, closing costs, etc. are charged by each. 

 

  1. They bank too much on online home values.  Some real estate websites are giving Buyers a false sense of home values, the CNBC article notes.  If a Buyer believes that the actual value of the house is one thing but it is actually something more, or less, then it’s a disservice to the client.  You need to spend time with someone who understands the market, who’s been there day in and day out.  You can get the best feel by working with a competent, experienced Real Estate Broker and by driving around neighborhoods to get a sense of things about homes that may be less valuable or even more valuable than the perceived online value.

 

  1. They forgo the home inspection.  About 10 percent of homes recently purchased weren’t inspected by a home inspector, according to Bill Loden, president of the American Society of Home Inspectors.  Some Buyers were trying to cut down on costs but defects later discovered could potentially result in the loss of thousands of dollars.  “It takes a trained eye to see the problems that can exist in a home,” said Loden.  “The inspection can also give the first-time Buyer a bit of schooling on the house and how to maintain it.”  Buyers also should be prepared to ask questions that are community specific and the home may require additional inspections from a specialist to rule out potential problems.

 

If you know a family member or co-worker considering home buying for the first time, please share this information in order to help them avoid the pitfalls listed.  Better yet—have them call me at 598.3200 or email me at Harry@HarrySalzman.com and I can provide them with all the necessary steps to prevent additional stress and help them make their dream a reality.

 

HARRY’S HUMOR OF THE DAY