HARRY'S BI-WEEKLY UPDATE 3.9.22
March 9, 2022
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.
ANOTHER MONTH AND MORE OF THE SAME…
What can I say? The Residential real estate Market in Colorado Springs is hot, hot, hot. And it would even be hotter if there were more existing homes for sale.
Our average sales price for single family/patio homes was $514,757 in February! That number is even astonishing to me, having worked in this arena for 50 years next month. I can still remember average home prices in the $25,000 range. Of course, I can also recall interest rates of 16% so while home prices have risen, interest rates have declined sharply, which has helped keep monthly payments more affordable than you might expect.
That’s why I tell my clients to look at their total monthly output rather than focusing on the higher prices of today. The still historically low rates have made it easier on the pocketbook, but rates are beginning to rise and will do so slowly over the next year. I don’t see them getting to 16% anytime soon, but they will be higher by year-end according to most economists.
With the traditional spring buying season just about here, it’s definitely time to consider your options if a move is even remotely in your future. Homes sell faster than ever before and multiple offers and ones over list price have become the norm in recent times.
Just this past week, a broker in our office listed a home for $425,000 and it had 24 offers! The accepted offer was far above list price. Hard to imagine, but there are a lot of folks looking for homes and very few existing ones to choose from. It’s most definitely still a Seller’s market and will continue that way until more homes come up for sale. As you will see below, at the end of February there were only 487 active listings of single-family/townhomes in the Pikes Peak Area MLS and 63 condo/townhomes. With so few homes available you can see why competition is so fierce.
There are a lot of things to consider if you are wanting to make a move. To begin with, you will need to decide exactly what your needs, wants and budget considerations are upfront because when you find a home there is no time to delay in making your best offer. And when I say best offer, I mean that. Today’s market finds very creative offers that buyers are hoping will set them apart from the rest. There is essentially no room for renegotiation and contingencies on the buying side.
However, with U.S. home prices predicted to rise another 10% this year (and Colorado Springs area homes will likely rise conservatively 10 to 12%), there’s no time like the present to start your search.
I realize this sounds a bit crazy, but it’s today’s reality. It is more important than ever to have a seasoned professional, well respected real estate broker such as me on your side because experience and negotiation expertise such as mine is more crucial than ever before. Sellers are wanting their brokers to work with brokers on the buying side who they know can bring an offer to closing.
Lately with the stock market in a slump, I’ve seen an uptick in those seeking homes for investment purposes. Over the long haul, real estate has surpassed stock and bond returns and today even more so. That, unfortunately, is adding to the housing shortage and hurting first-time buyers even more.
However, it’s not all dismal news. I truly believe that, while it may take considerably longer than in the past, there is most definitely a home for everyone. It may not be exactly what you want, but especially for first-time buyers, homeownership is a far better option than renting if possible. Homes can be updated and renovated, and when the time is right, can likely be sold for a profit or used as a rental property when it’s time to move on or trade up.
There’s a lot to discuss if a move is a consideration and I’ve got the experience to guide you when you’re ready.
So, if Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.
And now for statistics…
FEBRUARY 2022
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the February 2022 PPAR report. Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood. However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.
In El Paso County, the average days on the market for single family/patio homes was a very low 10. For condo/townhomes it was 11.
Also in El Paso County, the sales price/list price for single family/patio homes was 103.0% and for condo/townhomes it was 103.1%.
In Teller County, the average days on the market for single family/patio homes was 20 and the sales/list price was 101.6%.
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 February 2022 to February 2021 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,186, Down 12.1%
· Number of Sales were 1,015, Up 3.5%
· Average Sales Price was $514,757, Up 13.2%
· Median Sales Price was $465,000, Up 15.4%
· Total Active Listings are 487, Up 5.4%
· Months Supply is 0.5, Up 1.6%
Condo/Townhomes:
· New Listings were 199, Up 3.1%
· Number of Sales were 160, no change from last February
· Average Sales Price was $353,683, Up 17.6%
· Median Sales Price was $362,500, Up 22.9%
· Total Active Listings are 63, Down 11.3%
· Months Supply is 0.4, no change from last February
Now a look at more statistics…
FEBRUARY 2022 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 Up 1.1%
- Median Sales Price for All Properties was Up 16.0%
- Active Listings on All Properties were Down 20.2%
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 to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:
RENTAL PROPERTIES IN COLORADO SPRINGS SEE SIGNIFICANT SPIKE IN 2021
Colorado Springs Business Journal, 2.25-3.3.22
Rental rates in Colorado Springs have continued their upward climb according to rental listing site Dwellsy. The Colorado Springs Metropolitan Statistical Area (MSA) shows a very significant 42.6 percent jump in median monthly rent prices from January to December 2021.
One of the driving factors is the demand for single or multi-family rental properties. Median monthly rent prices for single-family properties rose 42 percent from January to December, reaching $2,300 per month, while rent prices for multi-family units alone went up by 21 percent to $1,325 per month, according to the Dwellsy analysts who separated the two categories.
RentPath reported an average rental listing price of $1,150 per month for one-bedroom units and $1,327 per month for two-bedroom units in December.
This illustrates the demand for and availability of homes for rent vs. apartments last year. With more folks working from home, there is a greater demand for space, which often translates to a single-family rental.
The chart below illustrates the rental increases in Colorado Springs and other Colorado cities in 2021 vs the U.S. market as a whole:
As I have been telling you, investment properties have become a hot commodity as they represent not only extra monthly income, but home appreciation is significantly outperforming stocks and bonds at present and has done so consistently over the years.
This is also just another reason contributing the housing shortage as properties bought for investment take homes away from those who are looking for homes to buy for themselves and their families.
If you are renting or know someone who is, now is the best time to start looking toward homeownership if possible. Not only are you essentially investing in yourself rather than contributing to someone else’s income, you are building equity in your own home.
There are lots of possible ways to get into homeownership and/or investment property purchases. If either of these are something you are now considering, please give me a call and let’s see how we can make it work for you.
ERA SHIELDS “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW
ERAShields, 2.28.22
As always, I am pleased to provide you with all the most current local information. This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.
Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety.
UCCS ECONOMIC FORUM UPDATE
College of Business, UCCS, updated 2.25.22.22
Here is the most recent economic update from the UCCS Economic Forum. It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.
I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.
If you have any questions, please give me a call.
And for those of you who like to plan ahead, the always informative UCCS Economic Forum Event this year will be held at the ENT Center for the Arts on Thursday, September 1, 2022, from 1:30-4:30, with a networking and happy hour to follow. Full agenda and registration will be available in June.
FEATURED LISTING:
YOURS, HERE? IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.
