February 9, 2015

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.

                                      

JANUARY LOCAL STATISTICS REMAIN VERY POSITIVE

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

January in the Pikes Peak Area proved that the robust housing market appears to be continuing despite cold weather and post-holiday conditions.  Local residents are responding in a similar manner to folks all around the country as they realize better economic conditions than we’ve seen in several years.

The numbers here indicate that the combination of historically low mortgage rates and homes priced to sell are continuing to fuel this growth.  Listings in both categories continue to dwindle as many renters are finding a way to become homeowners, some for the first time, and many with the help of new low down payment requirements.

Here are some highlights from the monthly PPAR report.  Please click here to view the detailed 10-page report.  If you have any questions, please give me a call.

In comparing January 2015 to January 2014 in PPAR:                      

                        Single Family/Patio Homes:

  • New Listings are 1082, Down 10.9%
  • Number of Sales are 636, Up 6.7%
  • Average Sales Price is $261,310, Up 11.4%
  • Median Sales Price is $235,250, Up 11.0%
  • Total Active Listings are 2,470, Down 23.5%

                        Condo/Townhomes:

  • New Listings are 164, Up 16.3%
  • Number of Sales are 99, Up 30.3%
  • Average Sales Price is $176,602, Up 2.8%
  • Median Sales Price is $142,000, Up 6.8%
  • Total Active Listings are 297, Down 15.6%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $399,950                              $381,200

Briargate                                  $320,375                             $332,734        

Central                                     $182,500                              $209,461

East                                          $186,400                              $195,890

Fountain Valley:                      $218,169                              $217,889

Manitou Springs:                    $171,000                              $171,000

Marksheffel:                             $246,000                              $252,813

Northeast:                                $213,000                              $218,546

Northgate:                                $368,000                              $409,786

Northwest:                               $279,700                              $309,155

Old Colorado City:                  $225,000                              $262,746

Powers:                                    $235,250                              $237,317

Southwest:                              $234,000                              $336,791

Tri-Lakes:                                $412,000                              $432,866

West:                                        $201,000                              $330,971

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

 

A LOOK BACK TO AUGUST 1974… MUCH LIKE TODAY IN ALL BUT THE NUMBERS

Business Week, 8.10.74

While going through my archives, I came across an article from August 1974—more than 40 years ago.  It was published in the Personal Business section of the old Business Week magazine and I thought you might find it as interesting as I did, both then and now.

The section titled “It Doesn’t Pay to Wait to Buy a House”, talks about how for those who might have been scared out of the housing market due to tight money and high interest rates, then would be the time to take a look at what a new home would cost “today”.  It states:          

“According to the National Association of Home Builders, the cost of the average single family home is $35,800 this year compared with $25,600 in 1969.  And mortgage rates have risen to 9.5% to 10% today against 8% five years ago.”

What can I say?  I’ve always been an advocate of “the time to buy is NOW”, and this article backs me up perfectly.  You can no longer find a home for those kind of prices, but today’s mortgage interest rates are historically low.  Who could have imagined back in 1974 that in 2015 we would see 30-year fixed rates as low as 3.38%? 

Those interested in a little “blast from the past” can view the Business Week article by clicking here.  I know you’ll find it interesting.  Just as interesting as those folks 40 years from now who will look back and not believe that we could actually finance a home for under 4%.

One thing I can tell you for sure...the interest rates aren’t going to stay this low forever.  With the economy improving along with the job market, the Fed is sure to raise the cost of money to hold back inflation and with that--up goes the mortgage interest rates. 

As you can see from the PPAR statistics, the number of available homes is continuing to decline as folks realize the current low rates aren’t a “sure thing” for the future.  While there are fewer listings, there are always homes available to meet most needs, wants and budgets.  If you are still on the fence, I wouldn’t advise waiting a lot longer.  Why not give me a call today and let me run the numbers and see if we can make it the “right time” for you.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com .

 

HOMEOWNERSHIP IS AT LOWEST RATE IN TWO DECADES

LA Times, 2.15, The Gazette 2.1.15

According to the U.S. Census Report, the national home ownership rate fell last quarter to the lowest level in two decades. 

Despite the housing recovery of recent times, the ownership rate has been on a steady decline since the housing boom of the last decade. This has been attributed to families struggling to purchase a home because of home prices rising faster than incomes in recent years, along with tighter lending standards.

Analysts are hopeful that the housing market will pick up again this year after a slow 2014.  Job growth in 2014 was the strongest since 1999 and mortgage interest rates are still low.  On top of that, the government is taking steps to ease lending standards, with new programs from both Fannie Mae and Freddie Mac intending to back loans with down payments as low as 3 percent.

So, once again, if you or anyone you know has been left out of home ownership in recent times, now could be the perfect time for getting back in the market or purchasing a home for the first time.  Just give me a call and let’s find out if we’ve got the answer to your home ownership dreams.

 

A FEW HEADLINES FROM REALTORMag THIS WEEK…

  • Mortgage Rates Fall Again.  Average rates fell again for the week ending February 5:

--30-year fixed rate mortgages averaged 3.59 percent

--15-year fixed-rate mortgages averaged 2.92 percent

--5-year hybrid adjustable-rate mortgages averaged 2.82 percent

--1-year ARMs averaged 2.39 percent

 

  • Why Homebuyers Need to Act Now.  Homebuyers need to move fast if they want to spend less, according to Jonathan Smoke, chief economist at realtor.com.  “Delayed purchases will only result in higher monthly payments as prices and rates rise,” Smoke wrote.  Realtor.com is forecasting that affordability may decline as much as 10 percent over the year.

“Right now, the Fed is using the word ‘patient’ to describe its approach to picking the time to raise the target rate,” Smoke notes.  “However, when the Fed ‘loses patience’, rates will go up at least 20 to 40 basis points in anticipation of the target rate officially going up…so, Buyers beware:  The clock on these low mortgage rates may be ticking.”

 

  • Millennials Move Toward Home Ownership.  Young couples and singles in their late 20’s and early 30’s are making a belated entry into the home-buying market according to several recent housing reports.  Rising rates, moderating home prices and new, lower down payment requirements are providing good reasons for these individuals to now enter the market. 

Jonathan Smoke has called 2015 the “year of the millennial” in real estate.  He says that home Sellers should be encouraged by this, particularly those who own affordable home and are looking for a long-over-due upgrade.  With the move by many lenders to permit smaller down payments on home purchases, more millennials will likely make a move and that means home Sellers “who’ve been sitting on equity in entry-level homes can finally upgrade to bigger homes and retirement homes.”

 

HARRY’S JOKE OF THE DAY    (HAPPY VALENTINES DAY)