HARRY'S BI-WEEKLY UPDATE 2.7.2024
February 7, 2024
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Special Brand of Customer 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.
TO PARAPHRASE WARREN BUFFET…
“IF YOU’RE NOT CONFUSED BY THIS MARKET, YOU’RE NOT PAYING ATTENTION”
Our old buddy Warren may have been speaking about the stock market, but he might as well have been referring to the Residential real estate market.
Things change so much day to day that it truly keeps even a seasoned professional broker like me on my toes.
The good news is that interest rates are falling. No, you’re not going to see them anywhere near the historic lows of several years ago…most likely ever again. But they are considerably lower than the high of 8% of just last December and should settle in around 6% - 6.25% this year.
The bad news is that if you’re looking for a home, it’s not an easy task. With so few available existing homes for sale at times it reminds me of the buying frenzy of two years ago. Homes are selling at very close to or over listing price and we are seeing multiple offers for most.
Last year was the worst year for existing home sales since 1995 due to elevated mortgage rates and low supply and home buying affordability in October fell to the lowest level since 1985, according to the National Association of Realtors (NAR).
Back to good news though. We are soon entering the traditional spring buying and selling season and I predict that there will be more activity than in the most recent past. Homeowners who wanted to sell last year but decided to wait for mortgage rates to fall might not be willing to wait any longer.
In fact, while January 2024 listings for single family/patio homes were about the same as January 2023, they were almost 70% higher than the previous month, December 2023. That tells us that things are going to start moving a bit earlier this year, which bodes well for a busy spring Residential real estate season.
When you consider condo/townhomes as you will see below, listings were up more than 11% compared to last January and were up 72.6% over December 2023. Obviously, the price point of these is considerably better for first time buyers so condo/townhomes are gaining in popularity. The lack of new condo/townhome projects in Colorado Springs this past year has also added to the allure of these units.
And Residential real estate just keeps appreciating, in part due to the scarcity of existing homes for sale and also just because that’s what it traditionally will do.
I don’t just sell homes; I believe in what I sell and have always invested my personal money in Residential real estate. It’s proven time and again to be a great investment for me and for my clients. Not only for their personal homes, but also for their investment properties.
If you’ve waited for prices to fall, you might be waiting for a very long time. And while you’re waiting, you are losing the equity that a new home could be providing.
My general philosophy is that no one can expect to buy at the lowest price point, nor sell at the highest. It just isn’t possible and most anyone who thinks they can will likely lose in the long run.
While it may be more difficult today, it’s still possible for you to find what you need, want, and can afford in a home.
It’s important to note that with a lot of competition and so few existing homes for sale, if you are in the market you need to be prepared to know exactly what you want, need, and can afford PRIOR to beginning the search.
And, if you are wanting to sell you need to know where you want to move next because it’s likely your present home will sell faster than you might imagine.
That’s where I come in. The current market is not for the timid or inexperienced. It takes a lot of advanced planning and knowledge of how to navigate these waters.
My almost 52 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.
If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.
And, if you’ve got one minute and 35 seconds, look at my newest podcast on 2023 highlights and 2024 forecast. Simply click on the link below and you will be directed to my personal YouTube channel.
To watch, click here:
While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts. It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!
And now for statistics…
JANUARY 2024
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the January 2024 PPAR report.
In El Paso County, the average days on the market for single family/patio homes was 51. For condo/townhomes it was 53.
Also in El Paso County, the sales price/list price for single family/patio homes was 99.3% and for condo/townhomes it was 98.9%.
In Teller County, the average days on the market for single family/patio homes was 66 and the sales/list price was 97.7%.
Please click here to view the detailed 10-page report, including charts. If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.
In comparing January 2024 to January 2023 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 963, Down 0.2%
· Number of Sales were 668, Down 9.6%
· Average Sales Price was $522,379, Down 0.5%
· Median Sales Price was $450,000, Up 1.1%
· Total Active Listings are 1,749, Up 6.7%
· Months Supply is 2.6, Down 0.7%
Condo/Townhomes:
· New Listings were 202, Up 11.6%
· Number of Sales were 108, Up 20.0%
· Average Sales Price was $371,929, Up 10.7%
· Median Sales Price was $360,000, Up 6.7%
· Total Active Listings are 333, Up 30.1%
· Months Supply is 3.1, Up 1.5%
Now a look at more statistics…
JANUARY 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL
Colorado Association of REALTORS® , Pikes Peak REALTORS Service Corp, or it’s PPMLS
Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate.
The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:
- Sold Listings for All Properties were Down 8.4%
- Median Sales Price for All Properties was Up 1.1%
- Active Listings on All Properties were Down 2.2%
You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update. It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:
TIPS FOR GETTING A 6% MORTGAGE RATE
The Wall Street Journal, 2.1.24
As I just mentioned, falling mortgage rates could help home buyers in two ways this year: house payments might become slightly more affordable, and we should finally see more available homes for sale.
While mortgages aren’t expected to drop below 6% this year, they are likely to decline gradually as the Federal Reserve begins making interest rate cuts. Some economists are saying that cuts could begin this spring.
And while the Feds moves don’t have a direct impact on mortgage rates, rate cuts usually lower the yield on the 10-year Treasury, which is an indicator lenders look to when setting mortgage rates.
However, home buyers don’t need to wait for the Fed to cut rates to get a 6% mortgage. With rates at 6.63% as of last week according to Freddie Mac, that puts 6% within striking distance for some buyers, depending on credit score and other factors.
There are also additional steps to take for further discounts on the rate.
Here is what buyers should consider doing when shopping for a mortgage this spring:
Boost your credit score. Increasing your credit score even by a small amount can help reduce the cost of buying a home. A difference of a few points can sometimes mean lower mortgage rates that save buyers thousands of dollars over time.
Use points. Buyers can also use mortgage points to lower their interest rate if getting to 6% or lower is important to them. Each point reflects 1% of the loan amount and might be paid up front to your lender.
Find a discount. Many home buyers assume they have to accept the first mortgage rate offer they receive. My clients, however, are aware that there are options based on banking relationships and more as I can help direct them in their search for the best rate. According to research done by Freddie Mac that examined purchases between 2010 and 2021, borrowers who applied with two different lenders cut their mortgage rate by an average of 0.10 percentage point.
So, once again, my clients have an advantage with me. I understand the wholesale mortgage market. In fact, I look at rates daily and know where and how to get the best choices for my clients.
If you have any questions, you know where to find me.
ECONOMIC & WORKFORCE DEVELOPMENT REPORT
Data-Driven Economic Strategies, January 2024
As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey. You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report.
This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.
To access the report, please click here and if you have any questions, give me a call.
UCCS ECONOMIC FORUM MONTHLY DASHBOARD
Updated January 26, 2024 UCCS College of Business/Economic Forum
Here is the monthly report from the UCCS College of Business Economic Forum. It is created by professor Dr. Bill Craighead, who is the Forum Director. He also publishes an on-line “Weekly Economic Snapshot”.
I know several of you who enjoy statistics and use this information in your daily business life, and I will share it as always.
Below I have reproduced a copy of the first page and to read the entire report, please click here.
