February 6, 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.

THE LOCAL housing market JUST KEEPS ON ESCALATING…IN SALES AND PRICES

Wow.  Let me say it once again...WOW. 

I’m just astounded at the pace of the local real estate market in terms of both sales and appreciation.  In my almost 45 years of selling real estate in the Pikes Peak area I’ve never seen anything like what we are now experiencing.  And this is January we are talking about—a normally slow time as folks gear up for the spring buying season.  I’m now convinced that conventional wisdom about the “best” time to buy and sell are no longer part of the equation.  In past years, researchers have found that in general, January and February were the top months for those looking to get a bargain. 

However, this year is gearing up to be different.  According to Jonathan Smoke, realtor.com’s chief economist, buyer demand has remained high throughout the fall and home prices did not take their usual dip this January.

I’ll give you a very recent example.  Last Monday afternoon I listed a home and within hours we had seven offers and stopped accepting them at 6 pm that same day.  Most were for over the asking price and with significant down payments.  The following morning the seller accepted one of the offers.  Yes, folks, this is becoming the “new normal” and I’ve been telling you this was going to happen for quite a while now.  It’s most definitely a “sellers market” and likely to remain so for some time. 

With interest rates on the rise but still historically low, many folks are finally realizing that if they want to take advantage—NOW is the time.  Waiting will only cost you.  Not only in interest rates, buy also in the price of the replacement home.  Yes, you will get more for your home, but the next one will also cost you more and that will directly affect your monthly payments. 

My suggestion?  If you’ve even considered selling to trade up or move to a new neighborhood, don’t delay.  And again—know in advance what your wants, needs and budget requirements are so that you can make an offer when you find “the one”.  There just isn’t an option of “let me think about it” any longer.  Loan pre-approval from your lender of choice is most definitely a requisite before making an offer.

I am available to help you in determining all of these things.  As many of you have experienced, when it comes to making an offer that will stand out and likely be accepted—I’m a pro at this.  Having someone like me on your team makes the entire home buying and selling experience one that will be as stress-free as possible.  Simply give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let me put my special brand of customer service to work for you.

Something else to consider in this rapidly escalating market—it’s important to know the approximate Current Market Value (CMA) of your present home or your rental properties.  With home values going up so quickly, it’s quite possible your Homeowners Insurance isn’t what it should be and might need to be increased.  Give me a call and I’ll be happy to give you a good idea of what your home is worth in today’s market.  Then give your insurance agent a call to make sure you’ve got the right amount of coverage based on the current value of your home.

January PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and we now have 30 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.3% of listing price with the average days on the market at 43.  This continues to be great news for both buyers and sellers, despite the fact that interest rates have started to rise.

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 6.9% and 21.5% respectively for year-over-year.

The Monthly Summary shows that compared to a year ago, total active listings are down 30.8% for Single Family/Patio Homes and 17.0% for Condo/Townhomes, continuing a downward trend that tends to favor sellers.  New listings are down 13.0% for Single Family/Patio Homes and up 38.6% for Condo/Townhomes.

For more details, please see the following article.

 

JANUARY 2017 WAS THE 30TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

Here are some highlights from the January 2017 PPAR report.  A look at the Median Sales Prices should put a big smile on many of your faces!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing January 2017 to January 2016 in PPAR:                      

                        Single Family/Patio Homes:

  • New Listings are 968, Down 13.0%
  • Number of Sales are 908 Up 6.9%
  • Average Sales Price is $298,774 Up 13.3%
  • Median Sales Price is $265,000 Up 11.8%
  • Total Active Listings are 1,331, Down 30.8%

                        Condo/Townhomes:

  • New Listings are 183, Up 38.6%
  • Number of Sales are 130, Up 21.5%
  • Average Sales Price is $198,784 Up 17.3%
  • Median Sales Price is $177,500 Up 8.6%
  • Total Active Listings are 122, Down 17.0%

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Median Sales Price

                                                  January 2017                          January 2016

Black Forest                            $470,000                              $468,000                      

Briargate                                  $389,900                              $341,500          

Central                                     $200,000                              $226,750

East                                          $229,000                              $186,000

Fountain Valley:                      $239,000                              $219,000

Manitou Springs:                    $368,000                              $284,000

Marksheffel:                            $302,500                             $258,750

Northeast:                               $251,000                              $223,000

Northgate:                               $443,686                              $419,202          

Northwest:                              $326,818                              $303,500           

Old Colorado City:                 $229,000                              $216,500

Powers:                                   $269,900                              $229,000

Southwest:                             $345,000                              $252,000

Tri-Lakes:                               $437,225                              $427,000

West:                                       $232,500                              $218,000

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

COLORADO SPRINGS IS ON A ROLL…

Our unemployment rate is the lowest since 2001.  

Homebuilding starts continue to rise, following their 10-year high in 2016. 

Foreclosures are the lowest they’ve been in 15 years.  

All of this is reflected in the fabulous health of our real estate market. 

I’d like to give a big shout-out to Mayor John Suthers, the City Council, the Convention and Visitors Bureau and the Chamber/EDC for an outstanding job of promoting our city and working together to achieve such stellar results.  Bravo to all.

 

MILLIONAIRE TO MILLENNIALS:  BUY A HOME

Keeping Current Matters, 1.5.17

In January, CNBC ran an article quoting self-made millionaire David Bach explaining that not purchasing a home is the “single biggest mistake millennials are making” because buying real estate is “an escalator to wealth”.

Bach added:

“If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.  The average homeowner to this day is 38 times wealthier than a renter.”

In his bestselling book, “The Automatic Millionaire,” he does the math:

“As a renter, you can easily spend half a million dollars or more on rent over the years ($1500 a month for 30 years comes to $540,000) and in the end wind up just where you started—owning nothing.  Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning our own home free and clear!”

These ideas aren’t new—but millennials today are set to be the first generation that aren’t as well off as the previous generation and some of that has to do with homeownership.  My advice?  If you are the parent of a millennial and are able, do what you can to find a way to help in this area.  Lenders now allow down payments to come from family members and their lending requirements have changed for first-time home buyers to make it easier to obtain approval. 

If you have any questions about this or how to go about getting more information, please give me a call and I’ll do my best to help.

 

AND TO THOSE INTERESTED IN RENTAL PROPERTIES…

As you can see from the above articles, the time couldn’t be better to buy a home or two for investment purposes.  Rentals are just like any other home—they continue to escalate in value while providing the owners with increasing monthly income to help defray the cost of owning the home. 

And as I’ve said before, being a landlord is not for everyone.  However, in today’s market, if you’ve ever considered this option as an addition to your investment portfolio, maybe it’s time for us to visit and discuss whether or not it could work for you.  Give me a call at 598.3200 and let’s chat.

 

HARRY’S THOUGHTS OF THE DAY:  (I read several of these in high school and followed the advice personally prior to even getting into the real estate business!)