HARRY'S BI-WEEKLY UPDATE 4.19.17
April 19, 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.
MARCH 2017 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR FABULOUS LOCAL RESULTS IN GREATER DETAIL
Pikes Peak REALTORS® Services Corp.,
Local homeowners keep getting good news in the residential real estate market and I’m so pleased to be able to share this with you.
The local median sales price increase year-over-year in all properties was up a whopping 10.9%, which is a good sign that the housing market is continuing to appreciate. If there were more listings, more people would be moving—either selling to trade up or buying for the first time and for investment purposes.
In the recently published March 2017 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were down 7.2% for the single-family/patio homes and up 14.6% for condo/townhomes.
With the spring buying season just starting, you can see why now is a great time to list your home. The only drawback, as I’ve mentioned time and again, is that you need to have an idea of where you want to go because your home will likely sell much quicker than it might have in the recent past.
The “Activity Snapshot” shows the one-year change:
- Sold Listings for All Properties was up 9.4%
- Median Sales Price for All Properties was up 10.9%
- Active Listings on All Properties was down 30.1%.
You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update.
These reports provide greater detail than those I publish in the first eNewsletter of the month. I would highly recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of what’s transpiring there. I have reprinted just one neighborhood, Briargate, below to show you the type of information available for all local areas.
If you have any questions about any of these reports please give me a call at 598.3200 or email me at Harry@HarrySalzman.com.
Or better yet, if you want to see how we can make ANY of your real estate dreams a reality--the time is NOW--so let me put my special brand of customer service to work for you. If you’re looking to move across town, across the country or simply want to purchase an investment property—I’m your guy.
Despite rising home prices, interest rates, while slowly rising, are remaining historically low for the time being. That won’t always be the case, so “sooner than later” should be your motto if a real estate move is in your immediate future.
HOME MORTGAGES: RATES ARE UP BUT REQUIREMENTS ARE EASING
Keeping current matters, 4.18.17
The media has extensively covered the rise in mortgage interest rates since last fall (from 3.42% last September to the current 4.1% according to Freddie Mac). However, a less covered aspect of the mortgage market is that requirements to get a mortgage have eased while rates have risen.
The Mortgage Bankers Association (MBA) quantifies the ability of mortgage credit each month with their Mortgage Credit Availability Index (MCAI). According to the MBA, the MCAI is:
“A summary measure, which indicates the availability of mortgage credit at a point in time.”
The higher the index, the easier it is to get a mortgage. Here is a chart showing the MCAI over the last several months as rates have increased.
Have requirements for attaining a mortgage actually eased?
Yes. Here are two examples:
- FICO® Score – the credit score which helps determine a buyer’s eligibility. The score required to attain a mortgage has been falling over the last five months:
- Down Payment Requirement – the percentage of the purchase price necessary to place as a down payment on a home. To make this point, let’s look at the percentage of first-time buyers who have put less than 5% down over the last several years as compared to the 1st quarter of 2017:
Bottom Line?
Whether you are a current homeowner looking to move to a home that will better serve your family’s current needs, or a first-time buyer looking for a starter home, it is easier to get a mortgage today than it has been at any other time in the last ten years.
AND WHY ARE MORTGAGE RATES DROPPING AGAIN?
RealtorMag, 4.17.17
When the Federal Reserve raised their key interest rate last month, mortgage rates were expected to increase as well. Instead, they’ve been dropping in recent weeks. Freddie Mac reported that the 30-year fixed-rate mortgage averaged 4.08% last week, its lowest point so far in 2017 and its fourth consecutive week for declines.
It becomes pricier for banks to borrow money when the Fed raises its rates, which generally leads to higher borrowing rates for consumers. On the other hand, mortgage rates tend to coincide more with the 10-year Treasury note.
Lately investors have been buying them up, and the higher demand has been sending mortgage rates lower, CNNMoney reports. The 10-year Treasury is about 2.23%; a month ago it was about 2.62%. Mortgage rates have moved lower as the 10-year Treasury has inched lower.
According to Len Kiefer, Freddie Mac’s deputy chief economist, “We will probably see higher rates at the end of the year—around 4.5%”.
That’s one more reason to make the move sooner than later. Bottom Line: Each increase in mortgage interest rate translates to higher monthly payment to you.
A word to the wise!
INVESTMENT RENTALS ARE STILL A BETTER BET THAN THE STOCK MARKET
I’ve been telling you for some time now that in recent years the housing market has been outperforming stocks and bonds and this remains true today.
The shortage of rental units coupled with increased demand makes this a great time to check into the possibilities of investing in rental property.
With folks relocating for jobs and not knowing where they might want to eventually buy and others who simply either can’t qualify for a mortgage or don’t want to be tied down, the demand has been steadily increasing.
There are possible investment properties in all price ranges and neighborhoods and as one who “puts his money where his mouth is”—I would be happy to share my extensive knowledge in that area with you.
As I’ve said in the past, being a landlord is not for everyone and at times it pays to hire a property manager, but I can share with you the ins and outs of owning investment property.
There are also tax considerations involved here, too, so I would suggest that you talk to your investment managers and tax accountants to determine if this is a good move for you. And then—call me and I will help you find the property that fits into your investment plans.
