February 21, 2017

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.

LOCAL real estate NUMBERS REMAIN EXTREMELY POSITIVE

I am happy to report that things have NOT slowed down and the local real estate market—as well as that nationally—continues it’s rapid pace.

As I’ve mentioned in the past few months, this is definitely a Seller’s Market and will likely remain so until the number of active listings increase.  This is especially true in the below $300,000 range where I’ve been seeing multiple offers on most properties—and many OVER the asking price. 

While interest rates have gone up slightly but not yet significantly—that, and the increased equity most folks are seeing in their present homes—are driving this current market.  The Federal Reserve is talking about raising rates at their March meeting due to the improved economy nationwide, so that’s another reason folks are pressing on at present.

If you’ve been waiting for a sign—well here it is.  NOW is the time to make your move.  Home prices are continuing their upward climb and interest rates may soon be joining them.  While a new home may cost you more than it might have a year ago, the value of your present home has most likely also increased.  The biggest determination for most folks is the monthly mortgage payment and the lower the interest rate, the lower the monthly payment.  Even a nominal fluctuation can mean a higher monthly cost, so if you’re seeking an historically low interest rate I wouldn’t suggest waiting much longer. 

Along that same note, when you decide to start your search for any type of real estate—either as a primary, secondary or investment property—it’s imperative to get pre-approved by your lender and know beforehand exactly what you want, need and can afford.

I find that the best-written offer is often the one that my clients want to accept and that’s where my almost 45 years in the local real estate arena becomes a boon for you.  My investment banking background, along with my many years of experience, allows me to write a contract that has an excellent chance of being accepted. 

In today’s market of multiple offers and quick acceptance, it’s especially crucial to put your best foot forward so to speak.  I do that and more.  My sellers can wade through multiple offers and discover why some are much better than others depending on the timing, financing, and other factors due to my extensive experience. This is just part of my special brand of customer service.

My advice?  I’ll say it again.  If you’ve even considered wading into the real estate market as either a buyer, seller or both—now’s the time to jump in with both feet.  Many folks don’t know the current market value (CMA) of their home so aren’t aware of the avenues open to them in today’s market. 

So if you’ve got the questions, I’ve got the answers.  Just give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how you can best make all this positivity work for you.

 

JANUARY 2017 LOCAL MARKET UPDATE AND MONTHLY INDICATORS PROVIDE RESULTS IN GREATER DETAIL

Pikes Peak REALTORS® Services Corp.,

In the recently published January 2017 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were down 15.4% for the single-family/patio homes and up 21.4% for condo/townhomes.  

The median sales price increase year-over-year in all properties was up 9.3%, which is a good sign that the housing market is continuing to appreciate.  If there were more listings, more people would be moving—either selling to trade up or buying for the first time.

     The “Activity Snapshot” shows the one-year change:

  • Sold Listings for All Properties was up 11.6%
  • Median Sales Price for All Properties was up 9.3%
  • Active Listings on All Properties was down 33.4%.

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update. These reports provide greater detail than the monthly “PPAR Monthly Statistics” that I share in the first eNewletter of each month.

While the spring buying season hasn’t yet begun, you can see why now is a great time to list your home.  The only drawback, as I’ve mentioned time and again, is that you need to have an idea of where you want to go because your home will likely sell much quicker than it might have in the recent past.

If you have any questions about either of these reports just give me a holler.  

 

**HERE IS MORE TERRIFIC NEWS ABOUT OUR housing market**

COLORADO SPRINGS MEDIAN HOME PRICES RISE CONSIDERABLY MORE THAN U.S. AVERAGE DURING 4TH QUARTER 2016

NAR 2.17

In the 4th Quarter 2016, metro home appreciation picked up speed, prompting the majority of metro areas to soar to new record highs with some home prices, according to the latest survey results of the top 178 metropolitan statistical areas (MSAs) by the National Association of Realtors®.

Colorado Springs showed a median sales growth quarter-over-quarter of 8.5%, which was 49% greater than the U.S. average of 5.7% for those surveyed.  This is such good news for us and is indicative of the increased job market and continued consumer confidence locally. 

“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs edging the job market closer to full employment,” says Lawrence Yun, NAR’s chief economist.  “At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.”

Nationwide, a boost in home prices and mortgage rates at the end of the year slightly weakened affordability, compared to a year ago.  That came despite a solid uptick in the national family median income. 

According to Yun, “Even a pick-up in wage growth may be insufficient to compensate the impact of higher mortgage rates and home prices and increased homebuilding will be crucial to alleviate supply shortages and stave off the affordability hit.”

Fortunately, our local numbers are still great and our new homebuilding starts are at a 10-year high.  I might add that if a “new” home is what you are seeking, I would be very happy to show you what we have available in the Pikes Peak area.  It doesn’t cost you anything to have a professional like myself available to take you around to various homebuilders and we know the “essential” questions you might need answered if this is something you are considering. 

To view the entire 4th Quarter Survey of all 178 MSAs, please click here.  You might find it interesting to check out other cities where you have family or where you have lived in the past to see just how terrific our growth really is.  And…if you are currently considering a move here, this will help you see just how great an idea that will prove to be.

 

SOMETHING TO CONSIDER…THE REAL COST OF RENTING V. BUYING

Keeping Current Matters, 2.17.17

I am asked almost daily about the “value” of owning a home v. renting. While there are many factors at play in both situations, I’ve come to learn that what’s obvious to me can be totally foreign to someone else.  For that reason, I like to provide as much information in that area as I can. 

This Infographic provides some current data:

Some Highlights:

  • Historically, the choice between renting or buying a home has been a close decision.
  • Looking at the percentage of income needed to rent a median-priced home today (30%), vs. the percentage needed to buy a median-priced home (15%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you could use your housing costs to own a home of your own!

I’d also add that there are many reasons why some folks need to rent at any given time in their lives.  That’s why I have so many clients who have been buying one or more investment homes to rent.  If you have considered becoming a landlord by adding real estate to your investment portfolio, please give your financial and/or tax advisor a call and then call me.  I can share the ins and outs of being a landlord as this is something I’ve done for years.  And if this is something that’s right for you—I can lead you in the right direction to find an investment property.

 

HOME PRICE INSIGHTS REPORT

CoreLogic 2.7.17

I thought you might find this report from CoreLogic entitled Home Price Insights Report from December 2016 very interesting. The highlights include:

  • Home prices nationally increased 7.2% year-over-year
  • CoreLogic projects an increase of 4.7% year-over-year in 2017
  • Colorado was one of 15 states and the District of Columbia that reached new highs in home appreciation in 2016

You can read the report in its entirely by clicking here.  

 

ANOTHER FEATHER IN OUR CAP…SPRINGS COST OF LIVING IS LOWEST IN 5 YEARS

The Gazette, 2.10.17

In 2016, the cost of living in Colorado Springs was just 94% of the U.S. average, according to an annual survey by the Council for Community and Economic Research. This was down from 95.3 percent in 2015 and the lowest since costs in the Springs were 92.5 percent of the national average in 2011.

Local housing costs were 97 percent of the national average last year compared with 99.4 percent of the average the previous year.  Utility costs here were 72.5 percent of the national average in 2016, down from 84.3 percent of the average in 2015.  The index measuring miscellaneous goods and services also fell, while components measuring groceries, transportation and health care all were higher, but make up just 27.2 percent of the overall index.

Housing moved downward because the average local principal and interest payment fell 2.3 percent last year, while it remained unchanged nationwide.  Utilities in the Springs declined sharply because the average local home energy cost fell 9.1 percent, or nearly three times the 3.4 percent nationwide drop during 2016. 

Costs in Denver and Pueblo moved higher.  Denver costs were 110.4 percent of the national average in 2016, up from 109.6 in 2015 while Pueblo costs were 86.4 percent of the national average in 2016, up from 85.6 percent in 2015.

So, once again, another good reason to celebrate living in Colorado Springs.

 

I’M SPEAKING BEFORE THE COUNTY COMMISSIONERS ON THURSDAY

If you’re in town and want to hear me live and in person when I give my State of real estate in Colorado Springs Report to the El Paso County Commissioners, come on down on Thursday morning at 9:30 to 202 South Cascade.  It is an open meeting and I will be presenting an updated version of the material that I shared with you several weeks ago from my report to the Colorado Springs City Council.

 

HARRY’S THOUGHTS OF THE DAY