HARRY'S BI-WEEKLY UPDATE 5.21.18
May 21, 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.
THE MISSING PIECE OF THE real estate PUZZLE IS ONLY A PHONE CALL AWAY
The residential real estate market is still in quite a frenzy due to a lack of available homes, rising mortgage interest rates, multiple offers and bidding wars--just to name a few reasons. Sometimes it reminds me of trying to work a jigsaw puzzle but with no one way to complete it.
It takes real ingenuity, extensive experience in both the real estate and money markets and a whole lot of tenacity and persistence to get a deal done these days. And that’s why my clients tell me time and again that they are so glad to have me as their real estate advocate.
I’m the “missing piece” of the real estate buying and selling puzzle.
My 46 plus years in local real estate combined with my investment banking background give me a “heads up” over most when it comes to making deals that have a good chance of making it to closing. I hate seeing my clients disappointed and work with them until we can find a “happy ending” no matter how long it takes.
These days of quick turnarounds and multiple offers makes it imperative to have someone like me on your side. I know the “ins and outs” of deal making, have experience in competitive offer environments and will work on behalf of my clients to get the job done.
Having just returned from a national relocation conference, I found my peers all around the country suffering the same problems we face in the Colorado Springs arena. The lack of homes is driving up prices and with interest rates hitting a 7 year high this past week this translates into an even greater frenzy for buyers and keeps the current “seller’s market” going strong. I’ll address the interest rate hike later in this eNewsletter.
According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), consumer frustration is rising in hot markets like ours. He said that “home shoppers are struggling to find affordable properties to buy, and the prevalence of multiple bids is pushing prices further out of reach”.
His solution? “Homebuilders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability.”
If you’re considering selling to trade up—NOW is the time. You will more than likely get more for your present home than you might expect, but it will likely sell fast so you need to know in advance where your next move will be.
And…if you’re looking to buy for the first time or for investment purposes, you don’t have any time to wait either. Prices are continuing to climb, and interest rates are going up with them. Each day you delay is going to cost you in terms of monthly payments and more.
If new construction is something you’ve been considering, I’m your guy, too. I’ve got a good working relationship with local builders, understand the entire process and can help you get the most for your money, at no additional cost to you.
So, there you go. 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.com today and let’s get the ball rolling to make your residential real estate dreams come true.
MEDIAN HOME GROWTH IN COLORADO SPRINGS IS MORE THAN TWO TIMES THAT OF THE U.S.A.
National Association of Realtors
NAR just released its latest quarterly report of “Median Sales Price of Existing Single-Family Homes for Metropolitan Areas”,which compares the top 178 metropolitan statistical areas (MSAs).
Nationally, the median existing single-family home price for the first quarter 2018 was $245,500, which is up 5.7% from the first quarter 2017. The median sales price for existing single-family homes in Colorado Springs was $296,600, for a year-over-year increase of 11.5%. This is more than two times above the national average and is great news for local homeowners.
It’s also great news for anyone looking to buy here as our home values have consistently increased in recent times and I predict they will continue to do so for the foreseeable future.
For the first time, NAR has released a survey ranking these same 178 MSAs by housing “costs”. Colorado Springs is ranked as number 27 when it comes to prices—again, excellent news for homeowners and those looking to buy in our local area.
For a detailed look at these surveys, please click here for the alphabetical listing and click here for the ranked listing by housing costs.
Any questions…you know where to find me!
APRIL 2018 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR CONTINUING UPWARD TREND IN GREATER DETAIL
Pikes Peak REALTORS®Services Corp.,
These reports contain much greater detail than the first of the month reports I share and cover ALL residential areas in the Pikes Peak Region.
The local median sales price increase year-over-year in all properties was 11.3%.
In the recently published April 2018 Monthly Indicators andLocal Market Updatefor El Paso and Teller Counties, new listings year-over-year were up 3.5% for the single-family/patio homes and down 23.6% for condo/townhomes.
The “Activity Snapshot”shows the one-year change:
- Sold Listings for All Properties was down 2.0%
- Median Sales Price for All Properties was up 11.3%
- Active Listings on All Properties was down 23.2%.
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 34-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, Briargate, below to show you the type of information available for all local areas.
For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.
ERA OF ULTRACHEAP MORTGAGES ENDS AS RATES HIT 7-YEAR HIGH
The Wall Street Journal, 5.19.18
Mortgage rates last week reached their highest level since 2011, signaling a shift of loans from a period of historic lows to a higher-rate environment.
The average rate for a 30-year fixed-rate mortgage rose to 4.61% this past week from 4.55% the week prior, according to data released last Thursday by Freddie Mac and the increase has come faster than many economists predicted. A surging economy, the prospect of wage gains and a steep rise in prices for commodities such as lumber and gasoline have stoked inflation worries.
As rates approach 5%, the risk of the phenomenon known as “rate lock” grows, economists said.
A one-percentage point increase in rates can lead to a deduction in home sales of 7% to 8%, and the recent increases in home prices and mortgage rates could especially hurt first-time and moderate-income borrowers, according to Lawrence Yun.
What this can mean in real dollars, for example:
A $300,000 home last month at a 4.25% interest rate on a 30-year fixed rate loan would translate to a monthly payment of $1475.82.
At the present rate of 4.75% that monthly payment would be $1564.94, or a monthly increase of $89.12.
At the predicted 5% before the end of 2018, the monthly payment would be $1610.46—up $134.64 a month.
What’s more, the Federal Reserve, which raised rates in March, has said it expects to raise short-term rates two to three more times this year and three times next year.
This should come as no surprise to those of you who read my eNewsletters as I’ve been telling you to expect this for some time now. So what I will repeat again—if you’ve been sitting on the fence—time to get off of it.
Give me a call today and let’s see how we can put your residential wants, needs and budget to work before rates and prices get any higher.
