HARRY'S BI-WEEKLY UPDATE 12.8.20
December 8, 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.
*** Be sure to look in your inbox tomorrow for a “Special Edition” I think you’ll enjoy. I was interviewed by the Global TV Talk Show, based in San Diego, CA for my expert advice in relocation, and more specifically, about the status of residential home sales in Colorado Springs and I wanted to share the video first with you, my clients and friends. Also included is a brand-new video from the Colorado Springs Chamber. I believe you’ll find it worthwhile and interesting to watch. ***
IT SEEMS LIKE 2020 JUST KEEPS GOING ON AND ON AND ON WHEN RECENT YEARS HAVE GONE BY IN A HEARTBEAT.
The housing market, on the other hand, is moving faster and faster in a positive direction and continues to be the bright spot in the U.S. economy.
Homes sales across the U.S. have skyrocketed to a 14-year high, and there’s no apparent end in sight. Folks are taking a look at their present living conditions in a way they might never have prior to the pandemic. Working from home (WFH) coupled with more home schooling and most definitely more home cooking and entertainment is driving new wants and needs that many never considered before. When you add the historically low interest rates into the mix…it’s keeping both buyers and sellers quite busy.
Another consequence of the pandemic is that buyers are wanting to relocate to cities such as Colorado Springs because of the proximity to outdoor activities and more of a suburban type of environment. Getting out of busy cities is becoming a priority, especially for those who now WFH and can do so most anywhere. And let’s face it, those of us who presently live here know exactly why companies and their employees want to move here. After all, we aren’t called “America The Beautiful City” for nothing.
These factors are what’s driven the Colorado Springs area to a 25-year low in availability of existing homes for sale. As of yesterday, there was a total of 749 homes for sale in all categories—single-family, patio homes, townhomes and condos.
Available homes are selling at a premium—most over listing price—and bidding wars continue to be the norm. It’s definitely a seller’s market and will continue that way until there is greater inventory.
This is also the reason that home price appreciation continues its unrealistic surge and that in itself is causing concern for some first-time buyers who, despite the low interest rates, can’t qualify or afford to buy at present.
Most interesting is that this is traditionally a slower time of year for home sales and that is certainly not the case this year. As you will see, single-family/patio home sales for November were up 24.7% over the same time last year and condo/townhomes were up 37.6%.
If you’ve even considered a move, now is a good time to check out the possibilities. While it might take a while to find your next home, you might consider the possibility of leasing back your present one while you complete the process of buying the next one. This is not always a possibility, but it’s one you can certainly request when we list your home.
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.
New home construction is a more viable option than in past years and new homes sales across the U.S. are 41.5% higher than a year ago, most likely due to the low number of available homes for sale most everywhere in the country.
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 buyers? Just one of the many things I provide as part of my special brand of customer service.
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…
As I just mentioned, 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.
NOVEMBER 2020
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the November 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 18. For condo/townhomes it was 16.
Also in El Paso County, the sales price/list price for single family/patio homes was 101.1% and for condo/townhomes was also 101.1%.
Please click here to view the detailed 10 -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 2020 to November 2019 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,102, Down 1.9%
· Number of Sales were 1,482, Up 24.7%
· Average Sales Price was $429,163, Up 17.5%
· Median Sales Price was $380,000, Up 16.9%
· Total Active Listings are 675, Down 59.5%
· Months Supply is .05, Down 2.4%
Condo/Townhomes:
· New Listings were 166, Up 10.7%
· Number of Sales were 238, Up 37.6%
· Average Sales Price was $275,411, Up 10.9%
· Median Sales Price was $263,100, Up 14.4%
· Total Active Listings are 77, Down 49.3%
· Months Supply is 0.43, Down 1.3%
And a look at more statistics…
November 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 25.5%
- Median Sales Price for All Properties was Up 17.1%
- Active Listings on All Properties were Down 59.7%
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 14-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 El Paso county:
REALTOR.COM HOUSING FORECAST: SELLERS TO MAINTAIN THE MARKET ADVANTAGE
Rismedia.com 12.2.20
In its recently released 2021 Housing Forecast realtor.com predicted that inventory will make a slow and steady comeback, providing buyers with much-needed relief. That said, they also predicted that increasing interest rates and prices will continue to pose a challenge on affordability throughout the year.
The Forecast Breakdown:
Mortgage Rates: Up to 3.4 percent by year-end
Existing-Home Median Price Appreciation: + 5.7 percent
Single-Family Home Housing Starts: +7.0 percent
Homeownership Rate: 65.9 percent
Key Housing Trends, according to realtor.com:
-Millennials continue to drive the market while Gen-Z become market players
-Affordability becomes a growing obstacle
-Inventory starts slow road to recovery
-Suburbs to shine if remote work stays around
A couple of elements could impact these forecast trends, however. According to the report, if COVID-19 continues to bring lockdowns and quarantines, that could “put a dent in housing inventory and sales, slowing the market and putting increased pressure on buyers.” But if a vaccine is rolled out quickly, homes sales, prices and inventory could be stronger than predicted.
U.S. HOME PRICES UP 7.8% OVER LAST YEAR: COLORADO SPRINGS UP 11.3%
The Federal Housing Finance Agency recently published their House Price Index for Quarter 3 and needless to say…it was great news for homeowners.
“House prices recorded their strongest gain in the history of the FHFA HPI purchase-only series in the third quarter of 2020,” said Dr. Lynn Fisher, Deputy Director of the Division of Research and Statistics at FHFA. “Relative to a year ago, prices were up 7.8 percent during the quarter—the fastest year-over-year rate of appreciation since 2006. Monthly data indicate that prices continued to accelerate during the quarter, reaching 9.1 percent in September, as demand continues to outpace the supply of homes available for sale.”
Colorado Springs was #5 out of the top 100 metro areas:
If you wish to see the full list of 100 metro areas to see their rate of appreciation, both year-over-year and quarter-over-quarter, please click here.
MAXIMUM LOAN AMOUNTS RAISED FOR 2021
The maximum loan amounts for 2021 were raised 7 ½ %-- from $510,400 to $548,250 for conventional loans. Any loan amount over that will be considered a Jumbo loan.
FHA loans will top out at $356,362 in 2021.
If you have any questions, please give me a call.
