February 8, 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.

BRONCOS WIN PREDICTED BY REALTOR.COM®

Realtor®Mag, 2.5.16

Unless you live in a vacuum, you probably know by now that the Denver Broncos won Super Bowl 50 yesterday and it’s a VERY happy day in Colorado as I write this.  Most certainly it’s a testament to how hard work and perseverance can get it done. 

But what you probably don’t know is that realtor.com®’s chief economist, Jonathan Smoke predicted this win last week.  “Although there is no economically driven correlation between the outcome of the Super Bowl and the housing market, we have found a promising real estate predictor for the Super Bowl that’s more effective than a coin toss”, he said.

Realtor.com® used January’s performance of the Dow Jones Industrial Average to predict the Super Bowl outcome.  “Out of the 49 games to date, this predictor has anticipated the outcome of the Super Bowl 82 percent of the time,” realtor.com® states.

Accordingly, this year the stock market ended last month down 5.5%, which realtor.com® says indicated that the Denver Broncos would win.  If the market had risen in January, the Carolina Panthers would have been the anticipated winners.

“History suggests a Denver win is also good for the overall housing market”, says realtor.com®.

“Denver’s past wins in the Super Bowl—in 1998 and 1999—were also strong for housing.  In 1998, home prices rose 6% and existing-home sales increased 13%, according to data from the National Association of REALTORS®.  And housing starts surged 9%, with single-family starts alone up 12%.  In 1999, the housing market also showed rises, with home prices up 7%; existing-home sales increasing 3%; and housing starts inching up 2%.”

Here is a copy of the chart that was used to make this prediction:

Two good things to point out here: The Broncos won AND the housing market should statistically be on track for another good year. 

Good news all around.

JANUARY 2016 WAS THE 18TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

It’s beginning to sound like a broken record but in this case, that’s a good thing.  I am happy to report that prices and sales are continuing their upward climb for the Pikes Peak Region in the Residential real estate Market.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year.  In fact, the total active listings for Single Family/Patio Homes are 1,923—the lowest number since PPAR began record keeping.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 33.5% over the year 2015 while Condo/Townhome sales are up 8.1% over 2015. (These are the same as the month-over-month totals since it’s only for the month of January this time.)

While this is continuing to create a bit of frenzy for buyers due to fewer available choices, new listings in January were slightly up in the Single Family/Patio Homes category. Condo/Townhomes for the same period were significantly down in both total active listings and new listings. 

We are experiencing another reduction in mortgage interest rates, which is apparently reflected in these numbers.  The stock market volatility and low oil prices have helped keep mortgage rates low and people are taking advantage of this before things change. 

There are fewer homes available in most neighborhoods and most price ranges, and those in the low and mid-range tend to go quickly.  Making a quick decision is a must in order to secure the home you want.

With fewer homes available, we are finding multiple bids, some even over asking price, and at present the average days on the market is a low 60. 

Again, what this means is that it’s more important than ever to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days” at this time.

For those of you who have been thinking about selling to trade up, the timing couldn’t be better.  While there won’t be as many choices available, your home will most likely sell in record time and you can still take advantage of the low interest rates on your next home. 

Another factor to consider is that there will be more buyers competing for homes during the Spring buying season, so starting your search now could not only save you money, but could afford you a “head start” in the home buying search. 

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the January 2016 PPAR report.  Please click here to view the detailed 14-page report, including charts. If you have any questions, as always, just give me a call.

In comparing January 2016 to January 2015 in PPAR:                      

                        Single Family/Patio Homes:

  • New Listings are 1,113, Up 2.9%
  • Number of Sales are 849, Up 33.5%
  • Average Sales Price is $263,678 Up 0.9%
  • Median Sales Price is $237,000, Up 0.7%
  • Total Active Listings are 1,923, Down 22.1%

                        Condo/Townhomes:

  • New Listings are 132, Down 19.5%
  • Number of Sales are 107, Up 8.1%
  • Average Sales Price is $169,438 Down 4.1%
  • Median Sales Price is $163,495, Up 15.1%
  • Total Active Listings are 147, Down 50.5%

 

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

 

                                                Median Sales Price             Median Sales Price

                                                January 2016                          January 2015

 

Black Forest                            $468,000                              $399,950

Briargate                                  $341,500                              $320,375         

Central                                     $226,750                              $182,500

East                                          $186,000                              $186,400

Fountain Valley:                      $219,000                              $218,169

Manitou Springs:                    $284,000                              $171,000

Marksheffel:                             $258,750                             $246,000

Northeast:                                $223,000                              $213,000

Northgate:                                $419,202                              $368,000         

Northwest:                               $303,500                              $279,700

Old Colorado City:                  $216,500                              $225,000

Powers:                                    $229,000                              $235,250

Southwest:                              $252,000                              $234,000

Tri-Lakes:                                 $427,000                              $412,000

West:                                        $218,000                              $201,000

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

 

JANUARY HOUSING DATA INDICATES STRONG 2016 OUTLOOK

RisMedia, 2.23.16

Year-over-year trends point to this spring as being the busiest since 2006 in growth and sales of residential real estate. 

While the housing market nationally followed a typical January pattern of cooler demand, reduced inventory and slower market velocity than during the warmer months, 2016 is off to a strong start with robust year-over-year growth. 

January median home prices are expected to show a substantial increase of 8 percent year-over-year.  Homes are selling 4 percent faster this year when compared to last year. 

According to Jonathan Smoke, “Our initial readings on January affirm the positive growth we expect to see in the residential real estate market in 2016.  Our traffic, searches and listing views exhibited the January ‘pop’ we saw last year, which made for a strong spring.  In addition, a large number of prospective buyers have been telling us since the second half of 2015 that they plan to purchase in the spring and summer of 2016.”

In order for this to happen we need to see more inventory nationally, as well as here in Colorado
Springs.  The decline in the stock market has been very positive for the housing market and low interest rates—25 basis points (or more) lower than at the end of 2015—are contributing to this. 

So one more time—if you’re thinking of selling and trading up—THIS IS THE TIME.  You can expect to get good value for your present home and while interest rates are still historically low you will find that even with increased prices on your new home, the monthly payment may be less than you imagined. 

Call me today and let’s see how we can make this all work out in your favor.

 

THE “HAPPPIEST” STATES IN THE U.S.

Realtor®Mag, 2.2.16

According to the latest Gallup-Healthways Well-Being Index, Hawaii was named the number one spot as the “Happiest” state in the country.  Colorado placed number four. The Index measures the well-being of states across five elements:  purpose, social, financial, community and physical.  Life evaluation—how Americans rate and perceive their lives—surged to a record high in the Index.

“Well-being in the U.S. exhibits regional patterns, with the northern plains and mountain west reporting higher levels of well-being, along with some western states and pockets in the northeast and Atlantic states”, according to the report. 

Here are the states that scored the highest in well-being, according to the Index:

  1. Hawaii
  2. Alaska
  3. Montana
  4. COLORADO
  5. Wyoming
  6. South Dakota
  7. Minnesota
  8. Utah
  9. Arizona
  10. California
  11. Texas
  12. Florida
  13. Wisconsin
  14. Iowa
  15. North Dakota

 

WHY DO AMERICANS CONSIDER MOVING?

Keeping current matters, 1.15.16

Some Highlights

  • In a recent Harris Poll, Americans listed “change in climate/weather” as their top reason for wanting to relocate
  • 41% would move for a better job opportunity
  • Being closer to loved ones filled out 3 of the top 6 reasons why Americans move

HOMEOWNERSHIP NUMBERS SHOW SLIGHT GAIN

The Wall Street Journal, 1.28.16, Realtor®Mag, 2.2.16, Housingwire, 1.1.16

An improving economy and a slight easing in access to credit are attributed as reasons for the rise in home ownership during the past two quarters. 

While homeownership in the U.S. remains at near the 48-year low of 62.4% in the second quarter of 2015, there was a slight increase from 63.7% in the third quarter to 63.8 percent in the last.  This is still far below the peak of 69.1% at the end of 2004.

Latest Census data shows home ownership to be highest among people over the age of 65, with home ownership among those under 35 remaining the lowest.  Americans aged 35 to 44 increased their homeownership from 58.8% to 59.3% in the latest quarter.

One of the reasons the homeownership rate could be rising is that some of the nine million owners who lost their homes to foreclosure, short sale or another distressed event could finally be returning to the market. 

According to what Matthew Pointon, U.S. property economist for Capital Economics, Ltd. told Bloomberg Business, “We expect it to rise very gradually over the next few years.”

Hopefully we can help find new ways for recent college grads to be able to afford homes, despite lack of credit and/or student loan debt pressures that are currently holding them back. 

 

HARRY’S JOKE OF THE DAY (maybe not so funny, but true nonetheless)