HARRY'S BI-WEEKLY UPDATE 4.26.23
April 26, 2023
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Special Brand of Customer 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.
SPRING BUYING AND SELLING SEASON IS GEARING UP AND APPEARS TO BE BUSIER THAN PREDICTED
Yes, the year did start off a bit slow in terms of Residential real estate but the national housing “crash” that some predicted doesn’t look anything like a “crash”. In fact, the last two months have been business as usual in our neck of the woods and it doesn’t appear to be slowing down as we enter what is traditionally the busiest time of the year.
David Auld, chief executive of home builder D.R. Horton, reported during the home builder’s earning call last week that “The spring selling season is off to an encouraging start” and that cancellation rates had fallen sharply since the prior quarter, and they expected to close sales on far more homes in the fiscal year than what analysts had predicted.
Part of what is happening is that homes have become a bit more affordable…or rather a bit less unaffordable! With mortgage rates lower than the November 2022 high of 7.08%, and home prices moderating as well, folks who have waited are now beginning their home search once again.
While the lack of existing home inventory is still a problem, the number of new homes coming on the market seems to have improved. Realtor.com reported for the week ending April 15 that the number of homes listed for sale was 49% above that of the year earlier level.
Many new home builders are offering incentives to lower buyers’ mortgage payments and various other incentives as well. In fact, I recently helped one of my relocation clients purchase a newly built home and the home builder did indeed offer them an incentive to lower their mortgage payment, along with some other enticements. It was an excellent opportunity for my client and since the home was close to being finished, it afforded them the opportunity to move in sooner than if the home had to be built from scratch.
Some economists are beginning to say that starting with this current quarter, housing could even begin providing a modest tailwind for the economy, in a small way helping to at least temporarily keep the recession so many expect at bay. Time will tell, but that certainly is good for those of us in the Residential real estate market to hear.
None of this means that this spring buying and selling season is likely to be as strong as last year’s, much less the blowout of 2021. However, housing is not likely to be the drag on the overall economy that it has been in recent quarters.
From my personal perspective, April has been as busy as almost any April. I’ve sold homes to several relocation clients and even sold one to clients that saw the home in person for the first time when they moved in! Yes, you read that right. My client could not take the time to come house shopping in person so when they looked at some listings that I had sent, they asked me to go to the homes and FaceTime them while showing them the home.
Knowing what my clients were looking for provided me with the ability to find a home that I knew would meet their needs, wants and budget requirements. I’m happy to report they and their fur baby are happily ensconced in their new home and my client is already back at work on her relocated job in the Springs. Just another day in the Residential real estate relocation business and I sure do like those “happy” endings.
After all, that’s why I do what I do. I am not called “The real estate Therapist” for nothing. It’s a title I earned through my more than 51 years working in the local real estate arena. I spend all the time necessary to find out about my clients and their families so that when I pair that with their wants, need and budget requirements I know exactly where to being the search for what I believe will check all those boxes.
I guess you could also call me a “matchmaker” of sorts in that I try my best to match the right home to the right buyer. Over the years I’ve learned that more important than making a “sale”—it’s far more important to make a “friend”. I’m happy to say that at this stage of my career it’s giving me great pleasure to be helping the children and sometimes even grandchildren of original clients in purchasing their homes.
If you’ve been waiting for the “right” time to sell and trade up or move to a new location or to buy for the first-time or for investment purposes, there’s no better time than NOW to start the process. Together we can find exactly what you are looking for.
And it all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .
I hope to hear from you soon.
THINK TWICE BEFORE WAITING FOR LOWER HOME PRICES
KeepingCurrentMatters, 4.17.23
As I just told you, the “crash” on the horizon that kept some potential buyers away from the market just didn’t materialize. In fact, a recent survey from Zonda showed “53% of millennials are still renting right now because they’re waiting for home prices to come down”.
But here’s the thing. The most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, chief economist at CoreLogic reports: “U.S. home prices rose by 0.8% in February…indicating that prices in most markets have already bottomed out.”
The graph below compares home price trends in November 2022 to those in February 2023:
So, once again, if you are asking yourself if you should keep waiting until prices come down you might find yourself waiting a very long time. Data shows that prices are increasing, not decreasing, in much of the country, and more especially in places like Colorado Springs where so many want to relocate.
The latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023.
Bottom Line? Better to call me sooner than later if you’ve been waiting for prices to drop. You’ll be that much ahead of the game if you buy now before prices begin to rise even more over the next year.
HOME INSPECTIONS FOR SELLERS….AN INFOGRAPHIC
Keeping Current Matters 4.14.23
Bottom Line:
Inspections are a major part of the home selling process. During the frenzy of the past several years, many buyers used to waive inspections to be more competitive with the offer, but in recent times home inspections are becoming popular once again.
I can help you determine what repairs and updates need to be made prior to listing your home to make the whole process go smoothly.
HARRY’S JOKES OF THE DAY:
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