HARRY'S BI-WEEKLY UPDATE 5.3.16
May 3, 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.
APRIL 2016 WAS THE 21TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
And here we go again…. I am happy to once again report that prices and sales are continuing their upward climb in the Residential real estate Market for the Pikes Peak Region.
In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 19.3% over April 2015 while Condo/Townhome sales are up 18.8%. The average Days on the Market is a low 32. Homes are selling, on average, at 99.8% of the list price. Had there been more homes available for sale, these numbers might have even been higher.
The Monthly Summary shows that total active listings continue their downward trend from the same month last year. However, new listings are slightly up at 6.6% year-over-year for Single Family/Patio Homes and 1.2% for Condo/Patio Homes.
Our city is continuing to make national news as Colorado Springs was recently ranked as the 12th hottest housing market in the country on the National Association of Realtors®’ list of the Top 20 nationally, based on the speed at which homes are selling.
I’m continuing to see homes go faster than I can ever remember. Recently I’ve been out with clients to see homes and we find out that they are “under contract” before we even get to view them. The spring season has brought a few more homes to the market, but they are moving fast.
With rental rates steadily increasing, I’m finding more folks interested in either buying for the first time or buying for investment purposes. In either case, those “starter” homes are going quickly too.
So I’m going to tell you once again. NOW is the time to make your move if you’ve considered selling to trade up or to move to a new neighborhood. The longer you wait, the more it’s going to cost you as home price increases are showing no sign of tapering off yet. Interest rates are still historically low, but that too is set to change before year’s end.
It’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present.
And when it comes to making an offer…it’s important to makes yours stand out. That’s where my 43 plus years of residential real estate experience come in very handy. I know how to write an offer and negotiate a deal that gets to the closing table. It may not come out on top every time, but my success rate is just another feature of my personal brand of customer service.
When preparing to sell your home, a factor to consider with homes selling so quickly is that you need to have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home.
To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen. I can be reached at 598.3200 or by email at Harry@HarrySalzman.com.
Here are some highlights from the April 2016 PPAR report. Please click here to view the detailed 14-page report, including charts. If you have any questions, as always, just give me a call.
In comparing April 2016 to April 2015 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,952, Up 6.6%
- Number of Sales are 1,268, Up 12.8%
- Average Sales Price is $274,891 Up 3.4%
- Median Sales Price is $248,050, Up 5.6%
- Total Active Listings are 2,080, Down 22.8%
Condo/Townhomes:
- New Listings are 249, Up 1.2%
- Number of Sales are 176 Up 36.4%
- Average Sales Price is $176,627, Up 5.9%
- Median Sales Price is $160,000, Up 10.3%
- Total Active Listings are 160, Down 43.1%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
April 2016 April 2015
Black Forest $435,500 $390,000
Briargate $322,500 $297,750
Central $189,000 $180,000
East $215,500 $198,750
Fountain Valley: $227,250 $206,000
Manitou Springs: $322,500 $376,500
Marksheffel: $259,900 $248,000
Northeast: $250,000 $218,500
Northgate: $433,450 $411,000
Northwest: $330,000 $317,000
Old Colorado City: $188,125 $265,000
Powers: $240,000 $224,950
Southwest: $246,000 $288,000
Tri-Lakes: $448,442 $368,000
West: $240,000 $252,000
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
INVESTMENT HOME SALES ON THE RISE
Keeping Current Matters, 4.29.16
As I just mentioned, Investment Home Sales are increasing along with the increased rental rates all across the country. Here is an infographic depicting this:
Some Highlights:
- 2015 marks the first year-over-year increase in investment home sales since 2011.
- 62% of all investment homes purchased were single-family homes.
- The South saw the highest percentage of investment home sales (39%) with the West coming in second (28%).
Being a landlord is not for everyone, but if this is something you have considered, now is the time to discuss the pros and cons. As one with a lot of experience in this arena, I’d be delighted to share my insights with you. Just give me a call and let’s discuss whether this is an option for your investment portfolio.
APRIL ECONOMIC DASHBOARD
As a sponsor of the Southern Colorado Economic Forum, I receive these periodic updates from the UCCS College of Business. It is my pleasure to share them with you and you can click here to see the charts in their entirety.
Some things to note:
- Q4, 2015 real GDP (gross domestic product) was revised upwards again from 1.9% to 2.0% comparing to Q4 of 2014. The increase was due to positive contributions in personal consumption, residential fixed investment and federal government spending.
- Consumer sentiment in February was 91.0. Higher consumer confidence is fueling domestic growth and it is mostly due to job and modest wage gains as well as continued low interest rates.
- El Paso County’s unemployment rate continues to fall and was 3.9% in February.
FOUR HOUSING PREDICTIONS FOR THE REST OF 2016
Realtor Mag, 4.25.16
Economists at Freddie Mac are remaining upbeat about the housing market’s outlook for the rest of the year despite recent data that showed a gloomier first quarter in economic growth than originally projected and have said in the April Outlook that housing will “maintain its momentum in 2016 and be an economic engine of growth”.
“We’ve revised down our forecast for economic growth to reflect the recent data for the first quarter, but our outlook for the balance of the year remains modestly optimistic for the economy,” say Sean Becketti, Freddie Mac’s chief economist. “However, we maintain our positive view on housing, In fact, the declines in long-term interest rates that accompanied much of the recent news should increase mortgage market activity, particularly refinance.”
Here are their predictions:
- Employment: The labor market is expected to stay strong. The unemployment rate is projected to drop back below 5 percent for 2016 and 2017.
- Mortgage originations: Loan originations are estimated to rise by $50 billion in 2016. This boost is a result of low mortgage rates that are fueling a refinancing boom.
- Mortgage rates: Low mortgage rates are expected to stick around longer.
- Housing prices: Home prices will rise by 4.8 percent in 2016 and by another 3.5 percent in 2017, Freddie Mac researchers predict. These rising home prices will lead more homeowners to see greater equity gains.
WHY AMERICANS REALLY BUY HOMES
Realtor Mag, 4.19.16
According to the “Homebuyer Insight Report” recently released by Bank of America, for more than half of Americans, the main reason to buy a home is simply because they want a place to call their own. They value the emotional benefits of owning a home as much as financial ones.
The survey revealed the following top emotional triggers for buyers:
- Want a place to call their own: 52%
- Always something they wanted to do: 43%
- Want to put down roots: 31%
- A place to make memories: 28%
As for the most influential factors, the survey found Americans are motivated to buy a home for these reasons:
- Better than paying rent: 37%
- Saved enough money: 26%
- Have a stead job: 21%
- Good time to buy a home: 15%
Survey respondents also were asked to define home ownership. Here’s what they said it means to them:
- Security: 60%
- Family: 58%
- Responsibility: 58%
- Happiness: 57%
SKY SOX TICKETS ARE YOURS FOR THE ASKING
It’s baseball time again and, as always, I have four first row seats right behind the home team dugout. These are yours for the asking, but on a first-requested, first-served basis. Just give me a call and I will be happy to reserve tickets for you for any home game of the season. But better hurry as they tend to go quickly once the warmer weather is here and school is done for the year!
FEATURED LISTING
YOUR HOME CAN BE FEATURED HERE. JUST GIVE ME A CALL AND LET’S DISCUSS THE POSSIBILITIES.
I’VE SOLD ALL I’VE GOT, SO THERE’S EVEN MORE TIME TO DEVOTE TO GETTING YOURS SOLD.
