HARRY'S BI-WEEKLY UPDATE 5.3.18
May 3, 2018
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.
Another crazy month in the life of your “real estate Therapist”. Some days I find it difficult to believe just how nuts the residential real estate market has become here in Colorado Springs. I’ve been telling you for a while about the lack of existing homes here for sale and that trend continues in full force.
Spring home sales locally and in much of the country are slowing due to tight inventory at the lower end of the market, while lack of inventory in all price ranges is driving prices up, which is keeping sales activity below year ago levels according to the National Association of Realtors (NAR).
Lawrence Yun, chief economist for NAR, says “The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford.”
“Realtors throughout the country are seeing the seasonal ramp-up in buyer demand this spring but without the commensurate increase in new listings coming onto the market,” said Yun. “As a result, competition is swift, and homes are going under contract in roughly a month, which is four days faster than last year and a remarkable 17 days faster than March 2016.”
“Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets—especially those out West,” he added.
And, according to surveys by NAR, Colorado remains one of the “hottest markets” in the country. As I told you last month, Colorado Springs is an even “hotter” market than Denver – at number 6 in the survey--so this only adds to the frenzy I’ve been experiencing.
For example locally, in the $300,000 or under range there are so few homes to be had that they are sometimes sold without even a showing.
Several weeks ago I started working with a young couple who were recently transferred here. Since this would be their “starter” home I thought I knew exactly what they would need. While I was correct in their needs, I had no idea how difficult it would be to find them a home.
Almost every home that came on the market in their price range was sold before we could even see it as there was a “revolving door” of agents and buyers in line for each home my clients wanted to see. Scheduling visits to prospective homes around the work schedule of my clients was a necessity of course, and I soon realized that looking for a home in this price range was going to become a full-time job for this couple.
On one home we offered $20,000 over listing price and with 11 offers we still did not get the home. I advised my clients that going more than that over listing price and getting in a bidding war would be the wrong thing to do as they probably would need to live in the home longer to get their money out of it with reasonable appreciation when it came time to sell and trade up.
This process was repeated several times during the following week and then finally my clients got their home—without ever having walked into it! Yes, you read that right. We made the offer at the moment the home was listed without even seeing the home in person because we did not want to face disappointment again. Having me as their agent helped as I wrote the offer in such a way that it would be difficult to get turned down and fortunately, it didn’t. As I’ve said time and again, when it comes to helping my clients achieve their residential real estate goals—“one way or another”—I find a way to make it happen.
This is only one of the “home war” stories I’ve lived in the past year and things don’t seem to be letting up. Folks are realizing that interest rates really are going up and aren’t likely to be this low again for quite some time, if ever. For those of us who were around for the 15% and higher rates of the 1970’s and ‘80’s, a 5 percent, 30-year fixed-rate mortgage doesn’t seem high. But for the millennials who have never seen rates higher than 3-4 percent—each increase is astounding.
My advice to those of you who have been sitting on the fence for whatever reason—this could be your last chance for a while to sell your present home at a great price and put the equity to work by trading up while interest rates, while not historically low, are still low in comparison to days of yore.
If you’re even considering a move and wondering how all of the above applies to your individual wants, needs and budget,simply give me a call today at 593.1000 or email me at Harry@HarrySalzman.comand let’s see how I can put my special brand of customer service to work for you.
And now for April statistics…
Homes are selling at 100.7% of listing price with the average days on the market at a very low 24.
This continues to be great news for both buyers and sellers, despite the fact that interest rates are rising. However, as I just mentioned, it does foster the necessity for fast decisions, so be forewarned.
As you will see in the Cumulative Year to Date Summary total sales numbers year over year in Single Family/Patio Homes are up 3.2% and down 1.3% for Condo/Townhomes. As you might imagine, this number would have been much higher had there been more homes for sale.
The Monthly Summary shows that compared to a year ago, total active listings are down 2.9% for Single Family/Patio Homes and down 16.2% for Condo/Townhomes. New listings are up 8.5% for Single Family/Patio Homes and down 21.7% for Condo/Townhomes.
I’m hoping the increase in new listings for single family/patio homes means that folks are finally seeing that this is a great time to sell and trade up. However, the reality is that total active listings are at a record low and remain a factor in the median price escalation.
For more details, please see the following article.
APRIL 2018 WAS ANOTHER OUTSTANDING MONTH IN LOCAL RESIDENTIAL real estate
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the April 2018 PPAR report. A look at the Median Sales Prices should keep a big smile on many of your faces! Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.
In comparing April 2018 to April 2017 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings are 1,972 Up 8.5%
· Number of Sales are 1,286, Down 1.8%
· Average Sales Price is $348,527, Up 11.8%
· Median Sales Price is $305,000, Up 10.9 %
· Total Active Listings are 1,524, Down 2.9%
· Months Supply is 1.2
Condo/Townhomes:
· New Listings are 209, Down 21.7%
· Number of Sales are 210, Up 1.4%
· Average Sales Price is $236,915, Up 18.7%
· Median Sales Price is $212,500 Up 11.8%
· Total Active Listings are 93, Down 16.2%
· Months Supply is 0.4
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
April 2018 April 2017
Black Forest $575,000 $529,500
Briargate $428,696 $390,000
Central $240,115 $244,945
East $272,000 $244,500
Fountain Valley: $275,000 $242,000
Manitou Springs: $355,000 $386,500
Marksheffel: $304,751 $296,500
Northeast: $300,000 $275,000
Northgate: $448,700 $439,950
Northwest: $470,000 $397,500
Old Colorado City: $352,000 $252,450
Powers: $289,000 $255,000
Southwest: $419,250 $290,000
Tri-Lakes: $544,482 $450,000
West: $285,000 $245,500
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
JUST TO COMPARE OUR NUMBERS TO THE U.S. HOUSING SNAPSHOT FOR MARCH…
This will give you an idea of just how well our residential real estate market is doing in comparison to the national average in March:
MORE AMERICANS ARE HOMEOWNERS IN 2018
RealtorMag, 4.27.18
More Americans became homeowners over the last year as the number of renters continued to decrease. Homeownership rate in the first quarter 2018 was unchanged at 64.2 percent, higher than last year’s 63.6 percent, the U.S. Census Department reported last week. This is also the fifth consecutive quarter of yearly increases in the ownership rate.
Since hitting a 50-year low in 2016, the homeownership rate has been gradually climbing back. The rate peaked in 2004 at 69.2 percent, but despite recent climbs, it still remains below the 25-year average of 66.3 percent. Meanwhile, the number of renters has dropped.
More young Americans are buying homes with the ownership rate for those under age 35 at 35.3 percent in the first quarter, which is a full percentage point higher than a year ago.
The homeowner vacancy rate dropped to 1.5 percent in the first quarter—the lowest vacancy rate since 2001, the Census Department reported.
MORTGAGE LOAN RATES ARE THE HIGHEST SINCE 2013
The Gazette, 4.27.18
Long-term mortgage rates continued to climb last week, reaching their highest level in more than four years. It was the third straight week of increases for long-term mortgage rates with Freddie Mac saying that the average rate on 30-year, fixed-rate mortgages jumped to 4.58 percent from 4.47 percent two weeks ago. By contrast, the benchmark rate averaged 4.03 percent a year ago.
The average rate on 15-year fixed rate loans rose to 4.02 percent from 3.94 percent for that same time period.
This should not come as a surprise to you as I’ve been telling you to be prepared for this inevitability for quite some time now.
What it means to you now is that you can no longer afford to wait if a move is in your near future. If you do, it’s going to cost you—not only in the higher cost of a home, but also in the higher monthly payments.
So one more time—if you’re ready—I’m willing and able to help you achieve any and all of your residential real estate goals. But don’t delay—time is no longer on your side. Give me a call at your earliest convenience and let’s see how we can make a move happen for you.
