April 18, 2018

 

HARRY’S BI-WEEKLY UPDATE

                         A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.

 

GREETINGS FROM THE 2018 “NUMBER TWO BEST PLACE TO LIVE IN THE USA”…

The Gazette & U.S. News & World Report, 4.10.18

That’s according to the recently published U.S. News and World Report’s list.  If they had asked me or anyone living here we would tell them “It’s Number ONE”!  But, hey, we will be happy to be Number Two, because that means, like AVIS, “we try harder”.  

Quite honestly, it’s quite an honor and one the City has worked hard to earn.  While Austin, TX  has been number one for two years in a row—Colorado Springs has jumped up nine places from 11thin 2017 while Denver fell one place in the rankings to number three.

The rankings are based on affordability, job prospects and quality of life, using data from the U.S. Census Bureau, the Gallup-Healthways Well-Being Index, the Bureau of Labor Statistics, the FBI Uniform Crime Report and other U.S. News rankings such as best high schools and hospitals.  

“While the job market certainly plays a major role in the decision”, according to Devon Thorsby, U.S. News & World Report real estate editor, “but so does the affordability of the area, the quality of education, commute time and growth of the area, signifying the metro area’s long-term success, among other factors.”

Quality of life is the most heavily weighted factor at 30 percent, followed by affordability at 25 percent.

And the Colorado Spring job market?  We added 3,600 people to the labor force in February, the biggest one-month gain in more than 19 years according to the U.S. Bureau of Labor Statistics. However, our jobless rate in February edged down to 3.4% from 3.5% in January.  That’s because even as the labor force grew, the number of people with jobs increased even faster.  

Colorado Springs Mayor, John Suthers said last week, “There are rankings and there are rankings.  TheU.S. News and World Reportranking is very prestigious and compares Colorado Springs against some of the nation’s most dynamic and prosperous cities, including Austin, Raleigh-Durham and Denver.”

“To be the second-best city is a remarkable transformation over the past several years.  We wouldn’t have been able to do it without citizens’ investment in roads and stormwater (projects), plus all of the private investment that has been made in the last few years.”

What Mayor Suthers left out was the significant role he has played in turning the City around.  His leadership has made believers out of corporate, airline and defense leaders , among others, who are investing in Colorado Springs at a rapid pace.  PlanCOS, of which I am a member, is working behind the scenes at the Mayor’s request to come up with a 20-year plan for land use in the City, while other committees are looking into other areas of continued improvement.  

We are most fortunate to have John Suthers as our Mayor and I am equally fortunate to call him a friend.

 

BY THE WAY..

The reason for this edition coming out a few days late is due to the fact that I was waiting for the detailed Local Market Updateand Monthly Indicatorsthat I like to share with you in the middle of the month.  Since they are not yet ready, I decided to send this without them.  If you are interested in seeing them after they are published, just give me a call.

 

THE RESIDENTIAL real estate MARKET HERE CONTINUES TO BE HOT…HOT…HOT…

Let me tell you once again about working in one of the “hottest real estate markets in the U.S.”. It’s quite a challenge these days.  There just are so few homes available for sale, most especially in the $350,00 or less market.  By the time a home is listed it’s already got a waiting list for showings and oftentimes there’s an offer before the day’s end.  Crazy times in residential real estate for sure.

This is great news, particularly for sellers who have their next move mapped out.  If you’ve been thinking of listing your home, there’s no better time than NOW. However, let me reemphasize that you need to know where you will be going next because there probably won’t be a lot of time to think about that after the sale.  

I wish I could report otherwise, but this is “life in the fast lane” for buyers and sellers of residential real estate.  Once there’s an offer, both you and I need to be available to get it done as best we can. Time isABSOLUTELY of the essence.  And when it comes to moving, you need to be open to neighborhoods you might not have looked at before or consider new construction as an option. I’ve assisted a number of clients in new construction purchases lately but a consideration there is the time frame in getting the home built.  If you need to move immediately, new construction is probably not for you.  

What I’m saying once more is that you need to consider everything BEFORE beginning your search.

That’s where my special brand of customer service is a blessing.  I can help you determine the best choices based on your individual situation and we can proceed from there.  As impossible as this might seem, I can always find a silver lining for you if it’s there.   

My advice?  If you are even thinking of making a move, call me yesterday. I don’t say that factiously—you don’t have a minute to waste.  Just give me a call at 593.1000 or email me at Harry@HarrySalzman.comtoday and let’s get the ball rolling to make your residential real estate dreams come true.

Note to potential investors: With increasing home values and interest rates, some potential buyers are going to find it difficult to qualify and will be looking for places to rent.  While you might pay more in terms of price and interest rates, this will be offset with the increased rental prices.

 

AS HOUSE PRICES RISE, STRAINS EMERGE

The Wall Street Journal, 4.6.18 & 4.11.18

Homeownership is becoming a bit more difficult for a number of potential buyers as more and more Americans are stretching to buy homes before they are priced out of the market.

According to data from mortgage data tracker, Core-Logic, Inc., roughly one in five conventional mortgage loans made this winter went to borrowers spending more than 45% of their monthly incomes on their mortgage payment and other debts—the highest proportion since the housing crisis.

Economists are saying that rising debt levels are a symptom of a market in which home prices are rising sharply in relation to incomes, driven in part by an historic lack of supply which is forcing prices higher.

Consumers are becoming more optimistic about the economy and their personal financial prospects but less hopeful that now is the right time to buy a home according to a recent survey by NAR.  

Mortgage rates, while still very low, are continuing to rise, and that puts even more strain on potential buyers.  The average monthly mortgage payment is up nearly 13% nationally, according to an analysis released by Realtor.com last month.  That’s an increase of $168 per month.  For luxury homes—the top 10% of the market—owners are paying an average of $241 more per month.

Sensitivity to mortgage rate fluctuations could also vary by generation.  Millennials came of age when interest rates were at historic lows, so even a minor upswing may seem significant.  But older borrowers may recall the days when rates reached double digits—as high as 18.45% in October 1981 according to Freddie Mac—so they may perceive rates as low even if they rise by a percentage point or two.

Rates are forecast to increase through at least the end of the year, so there’s no time like the present to get off the fence if you’ve been waiting.  Yes, you may get more for your home than you expect, but you can expect to pay more for the next one, too.  And interest rate hikes are not waiting for anyone—they are coming.  

So once again—if a move is in your near future, start the process NOW.  Just give me a call today and let’s see how we can best serve your needs, wants and budget. A word to the wise.

 

BASEBALL TIME IS HERE AGAIN…

The Sky Sox are playing here for their last season as a Triple A division of the Milwaukee Brewers and they are doing very well so far.

As you know, I have four front row tickets available on a first-come, first-served basis.  Just give me a call at 593.1000 and I will be happy to set tickets aside for you for any home game this season.  

The Friday night fireworks and 50 cent hot dog Sundays go fast, so give me a call when you know you might want to take the family to the game.

 

HARRY’S JOKE OF THE DAY:  

A real estate agent had just closed his first deal. To his horror though, he then discovered that the piece of land he'd sold was completely submerged under water.

"The customer's going to come back here pretty mad," he said to his boss. "Should I give him his money back?"

His boss roared at him, "Money back? What kind of salesman are you? Get out there and sell him a houseboat."