HARRY'S BI-WEEKLY UPDATE 4.18.16
April 18, 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.
NEW CITY LOGO TELLS THE WORLD WHAT WE ALREADY KNOW
Those of us who call Colorado Springs home are well aware of the enormous presence of the U.S. Olympics. After all, we are home to the United States Olympic Committee (USOC), U.S. Paralympics, the Olympic Training Center, and serve as headquarters for 23 of the 47 Olympic National Governing Bodies. And this year will see us breaking ground on a world-class U.S. Olympic Museum and Hall of Fame that is set to open in 2018.
Therefore, I find it quite fitting that the city is now promoting it’s U.S. Olympic connection by branding itself “Olympic City USA”. You can see the new logo above, depicting our mountains in the Olympic colors.
To quote Colorado Springs Mayor John Suthers, “This is an exciting opportunity to use our existing assets to define us on a world stage”. I heartily concur and am always happy to share my enthusiasm and support for the city that I’ve lived and worked in residential real estate for 44 years this month.
As I write that, it’s almost mind-boggling to me that I’ve been in Colorado Springs for that long. The last 44 years here have afforded me the opportunity to live in one of our country’s most beautiful locales, while allowing me to make a living doing what I love. Along the way, many of you have become long-term repeat clients and have become friends. The fact that I now am not only working with you, but with your friends, co-workers, children and in some cases—grand-children—is testament to the fact that my special brand of customer service has been appreciated and reciprocated. I can’t begin to express my appreciation for all of this but I just want you to know that it is not something I ever take for granted. I thank you for allowing me to continue to be a part of your life.
COLORADO SPRINGS EXPERIENCING LONG-AWAITED ECONOMIC RECOVERY
The Gazette, 4.17.16
Yesterday’s GAZETTE headlined a story about the arrival of our city’s long-awaited economic recovery and it contained a lot of information that I feel deserves reiteration. As I previously mentioned, I’ve lived here a long time and have thus seen the City go through both good and not-so-good times. I’m happy to report that now is one of the best times.
There is a very low unemployment rate and jobs are being created faster than any time in the last 15 years. As I’ve reported in the last few months, residential real estate is at an all-time fast pace. Tourism is booming and hotels and restaurants are cropping up in all parts of the city. With all of this comes increased sales tax revenue—so all in all it’s a sure sign of economic recovery for Colorado Springs.
To again quote Mayor Suthers, “There is a lot of enthusiasm out there and we are seeing some very positive signs. While there is going to be downturn at some point, we are not seeing such enormous growth that I am concerned about a bubble. It is all very healthy and has the appearance of being sustainable”.
All major indicators measuring the local economy point to it reaching levels from before the recession began in 2008, with some at the highest level since the end of the tech boom in late 2000 and early 2001. We are now generating new jobs at a faster rate than the rest of the state and the rest of the nation for the first time since the recession.
According to Tatiana Bailey, director of the Southern Colorado Economic Forum, “We are kind of in a boom. If you look at where we were 1 ½ to two years ago, so many of the indicators have turned around. We were lagging the state and the nation. We now have strong employment numbers with people re-entering the labor force, construction is going through the roof, and sales of luxury goods are really strong.”
And like Mayor Suthers, Ms. Bailey believes that “With people starting to wonder when the bust will follow, it seems to me that growth is spread across so many industries that it is sustainable”.
Good news indeed.
If you know anyone who might be considering a move here, I would recommend you suggest they go to the GAZETTE’s website to read yesterday’s headline article in it’s entirety so they can see first hand why this might be an excellent decision. And of course, when they are ready, please refer them to me for their residential real estate needs!
SPRING HOME BUYING IN 2016 ON TARGET TO BE THE BEST IN A DECADE
Keeping Current Matters, 4.6.16
Jonathan Smoke, chief economist at realtor.com stated several weeks ago that, “All indicators point to this spring being the busiest since 2006”.
Freddie Mac, in their March Housing Outlook Report is saying that 2016 will be the best YEAR that the real estate industry has seen in a decade:
“Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006, according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”
Some of the key indicators that have given Freddie Mac such a positive position include:
- Historically low interest rates
- A resilient labor market
- An increase in household formations
- A projected increase in newly constructed homes
This information reinforces everything I’ve been telling you for months. Just this past week I listed a home for $689,900 and less than 24 hours later I had multiple offers and the home sold. It’s a crazy time for real estate—and the spring buying season is just getting under way.
If you’ve been sitting on the fence or waiting for increased equity in your present home before contemplating a move, NOW is the time. Waiting any longer could cost you in terms of finding what you want, as well as in mortgage interest rates.
It’s time to look at your wants, needs and budget and make a plan for your residential real estate dreams. That’s where I come in. In today’s market, it’s more important than ever to have an experienced, professional real estate broker on your team. You need to know in advance what you are looking for and need to be ready to make a decision in a much shorter period of time than in the past. There are fewer available listings and it takes good negotiation skills to help you get to closing.
I am here to help in all these areas so give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let me help guide you through the process. One more way my 44 years of local residential real estate experience can be of service for YOU.
AND THE MORTGAGE RATES JUST KEEP ON FALLING…
Daily real estate News, 4.15.16
Last week the 30-year fixed mortgage rate fell to its lowest average of the year—averaging 3.58 percent—according to Freddie Mac in its latest mortgage market survey.
According to Freddie Mac’s chief economist, Sean Becketti, “Demand for Treasuries remained high this (last) week, driving yields to their lowest point since February. In response, the 30-year mortgage rates fell 1 basis point to 3.58 percent. This rate represents yet another low for 2016 and the lowest mark since May 2013.”
Just another reason to quickly hop off the fence!
HOMEOWNERSHIP IS A GREAT INVESTMENT…INFOGRAPHIC
Keeping Current Matters, 4.1.16
SOME GOOD TIPS TO HELP BUYERS IN A “SELLERS MARKET”
RealtorMag, 4.8.16
- Be on call. In order to succeed in today’s market, you must make house hunting a priority. There is a shortage of available homes for sale and the good houses are getting picked up quickly. You need to act fast to snag the one you want.
- Cast a wide net. Search for homes outside prime locations or in areas that you might not have considered before if faced with limited or high-priced choices. You need to consider what you might want or need to compromise on. Sometimes properties sit longer than others because they might needs renovation or other work. Oftentimes you might get these properties for less than expected and you can have the work done later—and to your specifications--with the money you save in purchasing the home.
- Bring the paperwork. To have your offer taken seriously, it’s wise to have a pre-approval letter as well as proof of funds from the bank to show you have enough to cover the down payment.
- Limit the contingencies. In a “sellers market”, buyers may need to drop some of the contingencies to get the house they want. Sellers prefer the fewest number of hurdles to closing as possible so the fewer “what if’s” the better your chances of having your offer accepted.
- Don’t play hardball. In a “typical” home-selling scenario, buyers make an offer below the seller’s asking price, and then negotiate upward from there. But in a “seller’s market” often there is little to no room for price negotiations. In fact, if there are multiple bids, you could end up paying well over the asking price. So you need to decide exactly how high you would be willing to go.
