HARRY'S BI-WEEKLY UPDATE 2.22.21
February 22, 2021
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.
IF YOU’VE EVEN CONSIDERED A MOVE…NOW IS THE TIME
As the infographic above indicates, mortgage rates are lower than they have been in years. What it doesn’t show you is that rates reversed course this past week and the 30-year fixed-rate mortgage increased to its highest point since mid-November.
This recent increase is due to the U.S. economy improving and supply chain shortages causing downstream inflation. I can’t tell you what’s going to happen even next week, but Freddie Mac chief economist Sam Khater is predicting rates to remain in the low 3 percent range for the year.
I can tell you that the price of lumber has increased 49% in three weeks to more than double what it was a year ago. Cement, copper and aluminum are also on the rise. These costs will be passed on to new construction homebuyers just as quickly, and will then trickle into resales as well.
If you’ve been following my eNewsletters for any length of time you are acutely aware that the Colorado Springs area is similar to the country in general when it comes to the shortage of existing homes for sale. As of yesterday, locally we have a total of 453 single-family homes for sale and a total of 81 others in the condo, patio home and townhome category —in all price categories. Not an easy situation for potential buyers.
This, of course is driving up home appreciation and is resulting in bidding wars and offers considerably over list price on most homes—sometimes just hours after a home comes on the market.
It certainly presents some difficulties—especially for first-time buyers. However, it is just as taxing for those who want to sell and trade up.
Fortunately, you have me. My almost 48 years in the local residential real estate arena, along with my investment banking background and negotiation expertise gives me an advantage over many other real estate professionals. And today it is more important than ever to engage a seasoned, knowledgeable professional when are ready to even consider entering the home buying and selling market.
- Is this the right time for you?
- What are your specific wants, needs and budget?
- Do you want new construction or are you looking for an existing home?
- Do you have a lender who can provide what you need for your specific financial situation?
These questions and many more need to be answered prior to the start of a home search and I am more than qualified to help you in finding the right answers.
What I can answer for you right now is this—if you’ve even considered a move, now is the time to begin. If you currently own a home, it’s likely got more equity than you might imagine. And even with the slight increase, mortgage interest rates are still historically low. Therefore, even with the increased home price tags it’s possible your monthly output could be the same or not too much more than it is at present.
Of course, you can’t get any of those answers by simply reading this eNewsletter. Please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s put our heads together and get started.
If you are looking to sell and trade up, purchase new construction or an investment property, or a first-time buyer wanting a starter home, contacting me is the first step in making all your residential real estate dreams come true.
ALL U.S. METRO AREAS SAW HOME PRICES RISE DURING FOURTH QUARTER 2020
NAR, 2.11.21
Every metro area tracked by the National Association of Realtors (NAR) through the fourth quarter 2020 experienced home price growth from a year ago, according to the latest NAR quarterly report.
Eighty-eight percent (161 areas) of the metros followed by NAR saw double-digit growth. For comparison, in the third quarter 2020 only 115 metro areas saw such growth.
According to Lawrence Yun, chief economist for NAR, “The fourth quarter of 2020 presented circumstances ripe for home price increases. Mortgage rates reached record lows, thereby driving up the demand.”
“At the same time, inventory levels also reached record lows, leading to grim inventory conditions of insufficient supply in the fourth quarter,” he added. “Although tourism took a major hit throughout 2020, our data shows that vacation housing still did well in terms of sales. Many people purchased in these areas because they found themselves with new work-from-home freedoms.”
As you might have guessed, Colorado Springs was right up there—with a 15.2% increase in median existing-home prices in the fourth quarter 2020 over fourth quarter 2019.
In terms of median home prices, Colorado Springs placed 31 out of the 183 Metropolitan Statistical Areas (MSAs) surveyed. Our prices will continue to rise due in part to the lack of available homes for sale, the bidding wars and offers considerably over list price that we have witnessed in the past year.
The pandemic and work-from-home (WFH) opportunities are also bringing more and more folks to our city because of our notorious outdoor activity opportunities, more suburban space, and cleaner air. As a longtime resident, at times I wish we could slow this down a bit, but I am aware that progress in this area won’t be slowing down any time soon. I couldn’t imagine living anywhere else, and more and more folks are finding they feel the same.
If you are interested in seeing the entire NAR Fourth Quarter 2020 report in numerical order, please click here. For an alphabetical listing, please click here. And, for the first time, NAR has also published the report by “Qualifying Income Based on Sales of Existing Single-Family Homes’ for these same areas. To view that, please click here.
As always, if you have any questions, please give me a call.
COLORADO SPRINGS IS NUMBER 17 ON MILKEN INSTITUTES BEST-PERFOMING CITIES LIST
The Gazette, 1.19.21
Coming in at number 17 on the Milken Institutes, annual Best-Performing Cities list, Colorado Springs jumped 19 spots over last year. This ranking is the city’s highest-reaching in the 22 years since the California-based think tank has been publishing these rankings.
This year the institute added factors in the ranking for housing affordability and household broadband access, which it said was “an effort to more effectively reflect the inclusiveness of local economies”. The index also measures jobs, wages and high-tech growth.
Colorado Springs has continued to move up in the rankings—to 36th last year from 58th in 2018, and 90th in 2017.
IT’S A SELLER’S MARKET AND BUYERS ARE SNATCHING UP NEW LISTINGS AS QUICKLY AS THEY’RE AVAILABLE
RealtorMag, 2.19.21
As I’ve been saying for over a year now, it’s going to stay a seller’s market until we have more homes for sale. NAR chief economist Lawrence Yun recently said, “Home sales could easily be 20% higher if more homes were for sale”.
He added that “Home sales continued to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market”.
I can attest to this and it’s one of the reasons I’ve suggested that if you have even thought about selling your home, NOW is the time. You will get the best price ever and likely more than you might imagine. It is certainly worth your time to give me a call and see how together we can find a way to upgrade your current living situation to fit your present needs and wants—and at these low interest rates your monthly output might not increase by as much as you think.
Here is a look at the key indicators from NAR’s national existing-home sales report, reflecting January sales data: (for local information, please give me a call)
Home Prices: The median existing-home price for all housing types in January was $303,900--a 14% jump over a year ago.
Inventory: Total housing inventory at the end of January was 1.04 million units, down nearly 26% from a year ago. Unsold inventory sits at a 1.9-month supply at the current sales pace.
Days on the Market: Properties typically remained on the market for 21 days in January, down from 43 days a year prior.
First-time Buyers: First-time buyers comprised 33% of sales in January, up slightly from 32% a year earlier.
As you might imagine, our local numbers are higher in the median price category and are mostly selling for over list price. Again, please give me a call for further explanation.
