February 22, 2016

 

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 MARKET UPDATE AND MONTHLY INDICATORS PROVIDE MIXED BAG DUE TO SHORTAGE OF AVAILABLE LISTINGS

Pikes Peak REALTORS® Services Corp.,

As you will see in the recently published Monthly Indicators and Local Market Update for January 2016 for El Paso and Teller Counties, new listings were down significantly for properties in both the single-family/patio homes and condo/townhomes categories.  With that came a pending sales increase of 73.9% for single-family/patio homes and 71.9% for condo/townhomes. 

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

The shortage of homes for sale is affecting communities all over the U.S. and it’s somewhat of a “Catch 22” in that those that want to move are afraid to list their homes because if they sell quickly, which has been the case in recent months—they might not be able to find the home they are wanting to buy due to the low number of listings. 

In recent weeks, I’ve seen more activity on available homes than I’ve seen in a long while and homes are selling quickly—many with multiple offers.  I’ll talk more about that in a moment.

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.

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

  • Sold Listings for All Properties was up 30.4%
  • Median Sales Price for All Properties was up 1.2%
  • Active Listings on All Properties was down 47.5%.

If you have any questions concerning the report, please contact me.

 

METRO HOME PRICES ACCELERATE IN FOURTH QUARTER 2015

National Association of REALTORS®, 2.10.16

Fewer listings and a moderated sales pace had little impact on rising home prices during the final quarter of 2015, which picked up speed and showed continued growth in most of the U.S., according to the latest quarterly report by the NAR.

In 81% of measured markets, the median existing single-family home price increased, with 145 out of 179 metropolitan statistical areas (MSAs) showing gains based on closings in the fourth quarter compared with the fourth quarter 2014. 

For all of 2015, an average of 89% of MSAs saw increasing home prices, up from the average in 2014 (83%) and 2013 (88%).

Lawrence Yun, NAR chief economist, says faster price growth reawakened in the final months of 2015 despite the pace of sales slowing from earlier in the year.  “Even with slightly cooling demand, the unshakeable trend of inadequate supply in relation to the overall pool of prospective buyers inflicted upward pressure on home prices in several metro areas,” he said.  “As a result, homeownership continues to be out of reach for a number of qualified buyers in the top job producing, but costliest, parts of the country—especially on the West Coast and parts of the South.”

The national median existing single-family home price in the fourth quarter was $222,700—up 6.9% from the fourth quarter 2014.  In comparison, while Colorado Springs saw its’ median existing single-family home price rise 5.6% year-over-year, our median price was $237,600—6.7% higher than the U.S. average. 

Our median home prices may not be escalating as much as some other areas of the country, but we did not see the enormous price fluctuations that those areas experienced during the recession and had fewer foreclosures.  The fact that our median prices are higher than the measured U.S. metro areas as a whole is a good thing for our community.

To view all 179 measured areas, please click here.

 

HOMEOWNERSHIP DREAMS ARE BEING PUSHED OUT OF REACH BY INVENTORY SHORTAGES

HousingWire, 2.10.16

As I mentioned earlier, low inventory is causing problems that make it difficult for both buyers and sellers.  And according to the above mentioned report from NAR the problem is not going to subside anytime soon. 

“Without a significant ramp-up in new home construction and more homeowners listing their homes for sale, buyers are likely to see little relief in the form of slowing price growth in the months ahead,” according to Lawrence Yun. 

From a local perspective, I’ve seen a number of different scenarios in recent weeks.  With rental rates continuing to rise there has been an increased interest in investment properties as well as those who are wanting to buy for the first time.  Many properties at the lower end of the market are seeing multiple offers as soon as they are listed.  Oftentimes investors with ready cash and the offer of quick closing times are creating problems for first-time buyers and others who are in competition with them. 

A recent investment client of mine wanted a home that had 12 offers on the day we viewed the home—ours being one of the 12.  It took some very clever negotiation on the part of me and the buyer to deliver an offer that the seller and his broker considered to be the best.  

To restate what I mentioned earlier, it can be difficult for someone who wants to sell and trade up to time it so that he is not left with no place to live!  Listed homes are going quickly and it’s not always easy to find exactly what you might want before your present home sells.  I’ve not seen quite this much activity in a long time and without more homes on the market it’s going to get even worse.

This is where having a knowledgeable, experienced real estate broker on your side is especially important.  It’s our job to figure out exactly what can be done to help you sell and trade up with the least possible stress on your part.  We know how to negotiate offers that get serious attention and help provide you with the options you need in order to make informed decisions.

If you are in the market to sell and trade up or buy for the first time or for investment purposes, please give me a call sooner than later and let’s come up with a strategy that could work for you in today’s market.  Interest rates are holding at historical lows and that can help offset the increase in home prices if you don’t wait too long. 

Call me at 598-3200 or email me at Harry@HarrySalzman.com and let’s get the conversation started.

2016 housing market PREDICTIONS FROM TOP real estate AGENTS

RisMedia, 2.19.16

As a real estate Professional, I get asked quite often to predict where the market is going and it’s not always an easy answer.  If I had a crystal ball it might be easier, but since I don’t I would like to share with you what some of the top Real Estate Professionals across the U.S. are saying:

Is it a good time to buy or sell?

  • With mortgage interest rates finally starting to rise a bit, 2016 may be the last time in the foreseeable future to take advantage of these historically low rates.  Now is the time for first time buyers to make their move.

 

  • The volume of homes on the market has declined—this means there are often more buyers and not enough inventory of homes for sale.  If staged well, properly priced, and professionally marketed—it’s possible to get multiple offers and in some cases buyers overbidding the list price.

 

  • Values are up.  There is demand in the market.  According to the NAR Foot Traffic Report, there are more buyers out in the market right now than at any other time in the past three years.  Buyer demand continues to outpace supply of homes for sale.

 

What should I do if I’m ready to sell?

  • Don’t overprice your home—great choices still exist.

 

  • Make it shine and stand out from the competition.  With inventory being low, in order to get top dollar quickly, a few updates or touches that make the home feel more higher-end will yield more in the long run.

 

  • Declutter!  Also, hire a home stager and listen to what they have to say.  The return on investment is worth the cost.

 

What should I look for if I’m ready to buy?

  • First, make sure you are qualified, get your credit in order if needed and find yourself a qualified Realtor with credentials to prove it.  Look for an existing home, one that you would want to come home to, raise a family in or just be proud to own. Make it a dream come true.

 

  • Focus on your must-haves and don’t be too picky.

 

  • Do it earlier in the year so that you have a larger choice of inventory when people list after the holidays.

 

Should I make any changes in my home before I sell?  What are buyers demanding?

  • Buyers and sellers are starting to demand amenities that are energy-efficient, low emission and cost-effective like tank-less water heaters, solar panels, Nest®-type thermostats, low-water toilets and the like.

 

  • Quiet neighborhood.  Good schools and close proximity are a plus.  Updates in the kitchen, 2+ bathrooms.  A slice of “Americana”.

 

 

What’s happening in the real estate market this year? (this is why it’s so crucial to work with a real estate Professional who understands the local market)

  • Most agree with economists that interest rates, housing prices and rents will continue to rise in 2016.

 

  • Supply may get closer to demand in 2016 and with interest rates rising, it may slow buyer activity somewhat, but it will still be a strong market with prices and inventory beginning to stabilize.

 

  • As more Baby Boomers are able to sell the family home, they will continue to seek new, usually active lifestyle communities as their children leave the nest.  Both urban and suburban lifestyle-based communities will become increasingly more popular with these empty nesters as they look beyond their child rearing years and into the future.

 

These are just some of the answers from top agents around the country.  To find more detailed answers about the Colorado Springs area, please call me and I will be pleased to share with you the information the I continue to compile on a daily basis, both out in the field and in my extensive on-going research. 

My job is to do the homework for you so that when you’re ready I will be able to provide you with the excellent customer service for which I’ve become known during my 43+ years in the local real estate arena.  Your goals become mine and I will always do my best to exceed your expectations.