HARRY'S BI-WEEKLY UPDATE
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June 10, 2013
HARRY’S BI-WEEKLY UPDATE A Current Look at the Colorado Springs Residential real estate Market
FIRST, THE GREAT NEWS….
Last month was another fabulous gain in the local real estate Market with home sales at a 6 year high. Consumers are starting to enjoy their lives more than in the past few years. One of the best ways they express job security and positive emotions is to buy a “first” home or to sell and “trade up” to a better home or neighborhood.
I’m thrilled to share with you some highlights of the Single Family/Patio Homes Listing and Sales Summary for the month of May 2013 as compared to May 2012.
In all of El Paso County sales, the average relationship of Sales Price to Listing Price is 98.4%, which means that homes are selling for 1.6% below list price. This obviously points to a strong local market.
The chart below is a comparison of different areas within El Paso County. We use this type of information when working with clients on an individual basis to help them determine both selling and buying price ranges for specific neighborhoods.
COLORADO SPRINGS AREA MONTHLY SALES ANALYSIS*
Median Sales Price Average Sales Price Black Forest $438,500 $448,123
Briargate $297,000 $310,726
Central $153,351 $162,015 East $179,000 $186,737 Fountain Valley: $183,000 $186,194
Manitou Springs: $256,000 $284,500
Marksheffel: $228,000 $223,267
Northeast: $216,000 $242,766
Northgate: $349,900 $379,276
Northwest: $330,000 $341,147
Old Colorado City: $167,000 $199,223
Powers: $204,600 $216,644
Southwest: $331,000 $383,759
Tri-Lakes: $407,500 $418,504
West: $203,500 $223,931
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
To view the complete breakdown on any area listed here or to read the entire monthly report, please click here.
As you can see, things are continuing to move rather quickly and we are now experiencing a market resurgence that’s here for the foreseeable future. As always, I am here to answer any questions you may have about these reports.
With very limited inventory and percent of days on the market quickly going down, there are multiple buyers for fewer properties. To get exactly what you are looking for at a price that fits your budget, call me today at 719.598.3200 or email me at Harry@HarrySalzman.com and let’s start talking.
WHAT THE EXPERTS ARE SAYING…
HousingWire.com
“Increasing demand for new and existing homes, coupled with low inventory, has created a virtuous cycle for price gains, most clearly seen in the Western states with year-over-year gains of 20% or more,” said Dr. Mark Fleming, chief economist for CoreLogic.
Anand Nallathambi, president and CEO of CoreLogic said, “We expect this trend to continue, bolstered by tight supplies and pent up buyer demand”.
USAToday:
“The rapid run-up in housing prices the past year has ignited talk of another housing “bubble,” but only a few markets are at risk—so far, experts say.”
According to the latest Standard and Poor’s Case-Shiller index, released last Tuesday, “20 cities in the index showed increases on an annual basis for at least three consecutive months.”
“Even the weakest price gains were ‘substantial’, said David Blitzer, chairman of the index committee.”
The Wall Street Journal:
“Home Sales Power Optimism” read the headline on May 29, 2013, with prices rising at the “fastest pace since 2006, calming investor fears of a spring swoon”.
“Home prices surged during the first quarter at their fastest pace in nearly seven years, the latest sign of a sustained warm-up in an economic recovery that has otherwise been marked by starts and stops.”
Fed officials say they have been considering when to wind down the bond-buying program which has helped to keep mortgage rates near historic lows, boosted asset prices and begun to stimulate hiring and spending.
The Gazette:
“Sales of previously occupied homes ticked up to a 3 ½ year high in April, according to the National Association of Realtors. And they are likely to keep growing. A measure of signed contracts to buy homes rose to its highest level in three years in April.
The limited supply of homes has also made builders more willing to ramp up construction. That’s creating more construction jobs.”
JOB MARKET HELPS CREATE CONSUMER CONFIDENCE
The 175,000 new jobs added nationally last month provided such confidence in the Economy that the stock market hit its highest point since January 2, 2013.
That same confidence has trickled down to people who are looking to buy, sell and trade up, or invest in the real estate market nationally, as well as locally.
It’s just not me telling you to BUY NOW-- all functions of today’s economy are pointing it out to you. So if you don’t want to listen to what I’ve been telling you for the past year, then simply listen to National TV News, the Wall Street Journal (June 8, Front Page and more), etc. etc. etc.
Now is the best time to buy a home all across America. And, Colorado Springs has already shown consistent appreciation for the past two years so there’s no time to waste if you’re in the market for residential property for yourself or looking for investment property.
AND NOW FOR THE INTEREST RATE ‘WAKE UP CALL’
It couldn’t last forever, and like I’ve been telling you, the mortgage interest rates that hit historic lows are now inching their way back up. Almost daily for this past week I’ve seen articles about mortgage rates on the rise.
The Wall Street Journal on Saturday, June 8, page B8, wrote that the Mortgage Bankers Association stated that “the first time in more than a year those rates are back above 4%” (on 30 year fixed rates).
USAToday stated that “mortgage interest rates are back to their highest levels in a year—and may creep higher still.”
Some renters are starting to realize it’s now or never and are considering a home purchase so that they don’t miss out, according to RealtorMag. “It’s amazing to see the frenzied pick-up in home buying, as renters get nervous that both home prices and rates will rise quickly,” Craig Strent, CEO of Maryland-based Apex Home Loans, told CNBC. “They are trying to catch the beginning of the curve here.”
They also reported on June 7 that for “the fifth consecutive week, mortgage rates continued to rise, as the economy showed signs of strengthening.”
I don’t need to say “I told you so”, but all signs have been pointing in this direction. If you, any family member or co-worker has been thinking about buying, selling and trading up or investing, don’t delay. Call or email me today and let’s start the process of fulfilling your Residential real estate dreams. The window of opportunity is still open but it’s slowing closing and you don’t want to miss out.
SKY SOX UP AND RUNNING… I have four front row season tickets to the AAA Sky Sox available at no charge to you on a first come-first served basis to any home game. Just give me a call at 598.3200 to request the date of your choice. Just another way I like to say “thank you” to clients and friends.
JOKE OF THE DAY
In the words, of Yogi Berra…..
FEATURED LISTING
Harry A. Salzman. CRS, CRP, CNE email: Harry@HarrySalzman.com Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
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