HARRY'S BI-WEEKLY UPDATE 3.6..17
March 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.
LOCAL HOME SALE PRICES ARE WAAYY UP…
If you are a local homeowner you’ve got a lot to celebrate. In comparing February 2017 real estate average and median sales prices to February 2016—they are up—up—up. That should put a big smile on your faces.
In the Single Family/Patio Home category, average sales price in February was $301,385 and median sales price was $255,000. In the Condo/Townhome category the average sales price was $182,241 and the median sales price was $180,000. This continues to be a Sellers Market with homes selling at 99.7% of listing price and a low average of 38 days on the market.
As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are down 0.6% and up 7.6% respectively for year-over-year. This number would have been much higher if we had more listings. (For example, in Single Family/Patio Homes we had 7,065 active listings in July 2007. January 2017 was an all-time low at 1,331.)
The Monthly Summary shows that compared to a year ago, total active listings are down 23.8% for Single Family/Patio Homes and 15.9% for Condo/Townhomes, continuing a downward trend that tends to favor sellers. New listings are up 1.8% for Single Family/Patio Homes and up 15.1% for Condo/Townhomes.
For more details on the February report, please see the next article.
While substantial home price growth is being seen all over the country, according to David M. Blitzer, S & P Dow Jones Index Committee chairman and managing director, it’s “not alarming” because it is being driven by the lack of inventory as well as the continued low interest rates. That is an entirely different scenario than we had prior to the 2007 housing bust, which is a good thing for us all.
Lawrence Yun, chief economist of NAR, says that Americans’ interest in purchasing a home is at the highest level since the Great Recession. More households are feeling confident about their financial situation, and job growth is strong. However, despite their optimism, more buyers are faced with limited choices due to the shortage of homes for sale, which is driving up prices.
I’m finding a number of things in recent days:
- Homes, particularly in the $300,000 and under range, are getting multiple offers as soon as they are listed on MLS—many over listing price, with no contingencies and with quick turnaround times.
- 32% of the active listings on single family/patio homes are in that under $300,000 range.
- Quite a number of folks are turning to new construction if they are in a position to wait for their home to be built.
- Folks are worried about the inevitable interest rate increases and those who have been sitting on the proverbial “fence” are thinking about making a move NOW to sell and trade up.
- There are lots of people interested in looking for investment properties with a number of them wanting multiple properties. Along with the lowest home ownership rate in years providing many folks who want or have to rent come increased rental rates that benefit the landlords. If this is something you have considered or want to investigate, give me a call and let’s see if it can work for you, too.
There is a lot of movement beginning to happen at once. I have spent a lot of time doing research on most types of new construction so that once I know what my clients are looking for I can take them to see the properties that meet their wants, needs and budgets.
You might not be aware, but—this service is at no additional cost to the buyers. My special brand of customer service includes doing the research so that I can take you to see exactly what you are seeking, without having to go look at each new development by yourself.
Another advantage is that I know the “right” questions to ask the builders so that there are no surprises later on. This is something I’ve been doing for almost 45 years so you might say I’ve got just a bit of experience in this arena!
Whether you’re in the market for a new home, an existing home or an investment property—I can help you with it all. Let me remind you again that if you are planning to sell and trade up you need to have a plan. Your present home will more than likely sell quickly so you must know where you are going next. Getting preapproved from your lender of choice is also a requirement before you even begin the search for a new home. When you find what you are looking for you won’t have the luxury of thinking about it or taking time to get a loan approval. There will be other offers for the sellers to choose from and yours will go to the bottom of the pile. I don’t tell you this to frighten you—it’s just how things are these days and I want my clients to be as prepared as possible.
A recent example is a former client who wanted to sell and trade up. I advised them NOT to list their present home until they had an “accepted offer” on one they wished to buy because I knew their home would sell fast. Well, sure enough, the buyer found another home and we got the offer accepted quickly. I put their present home on the market the next day and it sold the day after! That’s the kind of craziness we are seeing today. It’s a “new normal” to say the least.
So…a word to the wise should be sufficient. That, and giving me a call at 598.3200 or email me at Harry@HarrySalzman.com to get the ball rolling. I’m going to get it done for you “one way or another” and to your complete satisfaction. That’s my motto—and it’s on the wall in my office—because my commitment to my clients is most important to me and the reason my repeat business is so good. I WILL get it done for you, with as little stress and problems as possible.
LOCAL real estate SALES SLIGHTLY DOWN…BUT ONLY BECAUSE OF LOW INVENTORY
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the February 2017 PPAR report. Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.
In comparing February 2017 to February 2016 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,273, Up 1.8%
- Number of Sales are 800, Down 8.0%
- Average Sales Price is $301,385, Up 11.5%
- Median Sales Price is $255,000, Up 6.3%
- Total Active Listings are 1,342, Down 23.8%
Condo/Townhomes
- New Listings are 175, Up 15.1%
- Number of Sales are 126, Down 3.8%
- Average Sales Price is $182,241, Up 6.5%
- Median Sales Price is $180,000, Up 16.2%
- Total Active Listings are 122, Down 15.9%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
February 2017 February 2016
Black Forest $489,950 $405,000
Briargate $388,225 $317,250
Central $180,000 $179,900
East $230,000 $192,000
Fountain Valley: $230,000 $222,000
Manitou Springs: $185,990 $267,500
Marksheffel: $261,407 $270,000
Northeast: $259,500 $247,400
Northgate: $440,000 $360,000
Northwest: $395,000 $319,500
Old Colorado City: $236,500 $191,000
Powers: $254,900 $233,000
Southwest: $246,000 $162,000
Tri-Lakes: $485,000 $450,000
West: $250,000 $262,450
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
YELLEN SAYS FED RATES WILL INCREASE
Dsnews.com, 3.3.17
According to her last public remarks prior to the March 14-15 meeting, Federal Reserve Chairman Janet Yellen announced plans to increase the federal fund rate.
“We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect,” she said at a speech in Chicago and according to prepared remarks found at Business Insider.
Whether or not these increases come at the March meeting or later in the year remains to be seen, but Credit Suisse finds it probable that it will be sooner than later. James Sweeney, managing director of Credit Suisse said at the end of last week:
“In response to these developments the market implied probability of a March hike has risen from 25 percent on February 1st to over 75 percent now. This market action could be self-fulfilling, because it undercuts claims that the Fed needs to use a meeting to ‘prepare the market’ for an upcoming hike.”
What does this mean to you? Well, for starters, the mortgage interest rates will rise accordingly. If you are looking to get preapproved at today’s rates, you will need to hurry. No one knows how much of a hike the fed funds will get, but most economists are saying it’s going to happen. I’ve been telling you this for over a year now, and while they have not moved too swiftly during that time, an increase is inevitable. Each increase in the mortgage rate will mean a larger monthly payment for the length of the loan. It may not be a lot, but over the term of the loan it could add up to a substantial amount.
I’ll keep you posted.
“NEW” HOMES ARE ABOUT TO GET PRICIER
realtormag.com, 3.1.17
The reason for my sharing this information is due to my visit last Friday to check out nine models at local homebuilders for my clients. Homebuilders traditionally increase home prices in the spring. This year, according to the builders I met with, it appears that prices will be going up in the very near future due to a large buyer demand as well as the facts listed below.
Since this is an avenue many folks are considering due to the limited available listings, it is likely a good idea to start your search with me sooner than later. We can lock in prices before they increase which can help offset any increasing interest rates that may happen.
According to the article I read, new homebuilders are getting increasingly concerned about the price of building materials. In 2016, this was low on their list of concerns, but it’s now one of their top five.
The increased cost of lumber is the chief catalyst. “Negotiations on a new softwood lumber agreement between the United States and Canada ground to a halt at the end of 2016 and likely are stalled pending the results of an investigation into unfair import practices requested by the U. S. Lumber Coalition,” the National Association of Home Builders (NAHB) reports.
Homebuyers will likely see price hikes because of this. According to NAHB/Wells Fargo housing market Index, builders cited the following as the 10 most significant problems they expect to face in 2017:
- Cost/availability of labor: 82%
- Cost/availability of developed lots: 67%
- Impact/hook-up/inspection or other fees: 61%
- Building material prices: 60%
- Federal environmental regulations and policies: 52%
- Local/state environmental regulations and policies: 52%
- Regulation of banking/financial institutions: 48%
- Development standards (parking, setbacks, etc): 47%
- Inaccurate appraisals: 46%
- Health insurance: 40%
STATISTICS FROM THE UCCS ECONOMIC FORUM SHOW MORE GOOD NEWS
UCCS Economic Forum, 2.23.17
I just received the January statistics from the UCCS Economic Forum and, as always, want to share them with you.
The charts, which you can access by clicking here, will provide you with graphic detail about how we as a city, as well as El Paso County, are doing in many areas that affect our economy and growth. You can also see how we are doing locally in comparison to the U.S. in general.
If you have any questions about these graphs, or about any of the information I’ve shared in this eNewsletter, please give me a call at 598.3200.
HARRY’S THOUGHT OF THE DAY
