March 23, 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.

                     

A NEW CHAPTER BEGINS FOR SALZMAN real estate SERVICES

As you know, I’ve always tried to share any and all information with you on a timely basis.  Well, today’s top story is about ME.  Local readers may have seen this in The Gazette, but for many I’m sure this will be first-time news.

Salzman real estate Services has been in its present location on Garden of the Gods Road ever since I had the building constructed 37 years ago.  It has NEVER been for sale.  That being said, last September I received an offer for my property that was “too good to refuse” and that began “the beginning of the end” of Salzman real estate Services in it’s current location.  On April 1, demolition will begin and soon we will see a Taco Bueno thriving there.  The chain is opening its first three locations in Colorado and my property is one of the three they chose.  I somehow figured 37 years ago that due to its proximity to I-25, one day someone might want to build a restaurant there, but I didn’t know it would be NOW. 

Let me emphasize that I am NOT leaving the real estate arena.  I will simply be working with all of you from a different location and in a new collaboration that I will tell you about next week.  I’ve had a number of offers and am close to announcing a decision.  You, my friends, will be among the first to know the news.  The exceptional customer service for which I am known will NOT change.  Nor will my dedication to making sure that your personal goals become mine when I’m working with you.  In fact, without having to deal with the day-to-day concerns of owning a building, I’ll have even more time to devote to my clients.  So in some ways, this is a bonus for us all.  I will also continue working on my many community service projects.  Nothing will change except for my physical location and collaboration.

As those of you who have moved from long-time residences know, one can accumulate a lot of “stuff” in 37 years.  These past couple of months I’ve discovered just how much “stuff” that is!  Looking back through old files has been heartwarming as it’s made me realize just how many lives I’ve helped influence when it comes to individual family real estate decisions.  And through those files I’ve revisited the many relationships I’ve been very fortunate to develop along the way.

Change of any kind is a bit difficult but going through that “stuff” helped make me even more aware that it’s not the Salzman real estate “building” that made a difference—it’s the people I’ve met and continued to work with during the last 42 plus years in the local Real Estate business that matter the most.  I look forward to a continuation of those relationships and to developing new ones in the coming years.

You, your family members and friends you’ve referred are what makes it all worth it.  As I say goodbye to 538 Garden of the Gods Road later this week I take with me 37 years of memories in this building and relationships made here that I’m simply moving “with” me. 

If you’re in the neighborhood this week, stop in and say goodbye to 538.  I look forward to you joining me in the next chapter of Salzman real estate Services and to sharing my new location and collaboration with you in the next week. 

 

A RECENT RECOGNITION BY COLORADO SPRINGS MAYOR STEVE BACH

Last week, Mayor Steve Bach recognized me for my “leadership and for improving the economic vitality of Colorado Springs.”

Me and my six partners in this venture, gifted property appraised at $422,000 to The Foundation for Colorado Springs’ Future, Inc. which is owned by the Economic Development Committee, and is now part of the Regional Business Alliance of Colorado Springs.

“Our city is fostering an environment for quality jobs growth and we thank Harry Salzman and his partners for their generous gift that will continue to support the attraction of new development and young professionals to our city,” said Mayor Bach.

I am pleased to do anything that I can to help our wonderful city retain and attract more jobs.  This is just our way of giving back to a community that has given so much to us.  I am hopeful that this gift will encourage others to do the same.  Together—we CAN make a difference.

 

CITY OF COLORADO SPRINGS RANKS HIGH IN AFFORDABILITY

The Gazette, 3.14.15

In the Forbes 2015 survey of the most affordable cities, Colorado Springs came in at 11th.  It was the ONLY metro area in the West to make the list. 

We were chosen when Forbes looked at the 100 biggest metro areas with populations of at least 600,000.  Then they looked at housing affordability, using an index assembled by the National Association of Home Builders and Wells Fargo & Company. 

Then they added cost-of-living components like food, utilities, gasoline, transportation and medical expenses and weighted its various factors using a methodology similar to what the U.S. Bureau of Labor Statistics employs for the Consumer Price Index.

The result was a list of 21 cities (1 was a tie) and most of the cities were in the Midwest and South. 

This survey only re-enforces what those of us who live here already know—we’ve got a good thing going.  Hopefully surveys like these will help bring Colorado Springs to the attention of more employers and companies looking to relocate.  It’s certainly a good factor for young professionals who are looking to start families and want a healthy, affordable community in which to reside.

 

LOCAL JOB STATISICS IMPROVE

The Gazette, 3.18.15

Nearly 4,900 jobs were added in the Colorado Springs area in 2014, according to data released by the U.S. Bureau of Labor Statistics last week.  This is a 1.9% increase from 2013.

According to my friend Tom Binnings, senior partner in Summit Economics LLC, a local economic research and consulting firm, “This is good news because it shows that the local economy has generated about 5,000 new payroll jobs in each of the past two years.” 

There is some local concern that budget cuts are reducing local military employment but fortunately the private sector job growth is improving to make up the difference.  

 

FREDDIE MAC BEGINS 3% DOWN PAYMENTS THIS WEEK

RelatorMag, 3.18.15, Freddiemac.com, 3.18.15

We’ve been reporting about the new down payment requirements from Fannie Mae and Freddie Mac and Freddie Mac has announced that they will be launching the new program this week—at the start of the Spring buying season.  Fannie Mae began insuring 3 % down payment mortgages in December.

According to Dave Lowman, executive vice president for Freddie Mac, “Lenders will be ready to serve qualified working families who are ready to buy and keep the recovery going”. 

The Federal Housing Finance Agency, conservator of Fannie Mae and Freddie Mac, said recently that it wanted to make it a priority to “work to increase access to mortgage credit for credit-worthy borrowers.”  This is in response to tight credit conditions and high down payment requirements in recent years that have been blamed for sidelining potential homebuyers and slowing down the housing recovery.

In addition to the lower down payment requirements, “Freddie Mac’s Home Possible Advantage Program”, which is aimed at supporting first-time buyers as well as low and moderate-income borrowers, is allowing no minimum from borrowers in contributions.  This means parents or relatives can now cover 100% of the down payment through gifts.  The same is true for all Freddie Mac Home Possible mortgages, whether the down payment is three percent, five percent or something else.  This makes Home Possible a powerful option for families who want to help their children settle into a home of their own.

In order to limit default risk, Home Possible Advantage is available as a fixed-rate mortgage for primary residences only; this insures that principal and interest payments stay the same and borrowers won’t worry about the future mortgage payment shock. 

If you have any questions about these programs, or wish to help family members purchase first-time homes, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if we can make that happen.

 

THE IMPORTANCE OF GETTING THE ‘RIGHT’ MORTGAGE

The Wall Street Journal, 3.14.15

With Spring Buying season already underway, many Buyers are rushing to get pre-approved for mortgages prior to the Federal Reserve raising rates, which could happen in the next few months. 

Lenders are doing their part by accepting smaller down payments and offering lower interest rates on certain loans.  However, mortgage loans aren’t “one-size-fits-all” and the best deals and strategies often vary significantly depending on whether you are taking out a “jumbo” mortgage or looking for a modest first home.

Borrowers with less than stellar credit or who are trading up to a larger home can also have different options or challenges.  It is very important to make certain that you find a mortgage tailored to your individual situation and budget requirements. 

As I’ve said before, making certain that you work with a qualified, knowledgeable real estate professional is probably the most important home decision you can make.  We have the experience to make certain that you are steered in the right direction when it comes to mortgage lending. 

With my Investment Banking background, I’m acutely aware of what’s available in the mortgage lending arena, have reputable mortgage lending sources, and will help you avoid a mistake that could cost you not only a lot of money, but also a lot of stress and aggravation. 

No one knows when the rates will be going up, but according to recent articles concerning the Fed, changes WILL be coming.  If you have been waiting, wait no longer.  These historical interest rates will soon be a thing of the past. Spring buying” frenzy” will probably be a bit crazier than usual with folks who see this as a “last chance” for great rates.  So if you’re in the market, give me a call sooner than later to make certain that you can not only find the home you want, but also get the rate you want, too.

 

HARRY’S JOKE OF THE DAY  (found when I was going through files in the office!)