HARRY'S BI-WEEKLY UPDATE 5.6.20
May 6, 2020
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.
HAPPIER & HEALTHIER DAYS ON THE HORIZON…
It’s been a long couple of months and sheltering in place has not been easy on many of us. However, with the slow reopening of the country along with the arrival of wonderful spring weather, we are likely to see everyone’s mood picking up once again.
Residential real estate, while certainly as a busy as it would have been during this prime spring buying season, is quickly picking up steam and I expect it will be moving ahead full steam locally in the very near future. Last Thursday was the first full day that Realtors were allowed to show houses in Colorado, while social distancing of course.
Several of my clients wanted to visit available homes and I was surprised to find that there were 15 scheduled showings for one of the homes that was listed at $475,000. This tells me that folks have been waiting for the go-ahead and are now ready, willing and able to get on with the business of home buying and selling.
I had the opportunity to virtually attend a zoom meeting with Lawrence Yun, chief economist for the National Association of Realtors last week and he was very optimistic, not only about the state of residential real estate, but about the economy in general.
Yun said he expects employment to be back to where it was quickly and that the third and fourth quarters of 2020 should be fiscally good. He cites the fact that real estate is on solid ground and that there is only a minimal chance for a housing collapse. Along with a sizeable housing demand, sellers not panicking, and the housing shortage in general, he says that buyers will be back as soon as possible, something we are already witnessing here in Colorado Springs.
With mortgage rates at an all-time low, now is a great time to sell and trade up or move to a new neighborhood. Some of my clients have been reviewing listings that I’ve sent them via email and are ready to see these homes in person as quickly as possible.
There are still a number of restrictions in place when it comes to showing a home and social distancing is being strictly enforced, which is good for everyone. However, while this might make things a little slower, it hasn’t prevented me from selling three homes last month and listing several others. “Where there’s a will…there’s a way” it’s said and those of you who have worked with me know I can always find a way!
If you have been wanting to begin the process of making your residential dreams come true, now is a great time to get it going. All it takes is a phone call to me at 593.1000 or an email to Harry@HarrySalzman.com and I can put my extensive knowledge, experience and special brand of customer service to work for you, your family members and co-workers.
I look forward to seeing you soon.
And now for statistics…
You will see that, while home sales prices did not increase as much as in past months, they still managed to do quite well for a time when it was almost impossible to visit available homes. With the number of folks ready to buy, I would expect that you will see these numbers to increase over the next few months.
As might be expected, there were far fewer new listings last month. Now that we can visit homes to photograph them and talk with owners, you will undoubtedly see more homes for sale before too long.
APRIL 2020
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the April 2020 PPAR report. Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood. However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.
In El Paso County, the average days on the market for single family/patio homes was 17. For condo/townhomes it was 14.
The sales price/list price for single family/patio homes was a high 101.9% and for condo/townhomes was 100.7%.
Please click here to view the detailed 9-page report, including charts. If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.
In comparing April 2020 to April 2019 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,458, Down 24.2%
· Number of Sales were 1,219. Down 7.7%
· Average Sales Price was $395,724, Up 6.6%
· Median Sales Price was $360,000, Up 9.8%
· Total Active Listings are 1,589, Up 1.1%
· Months Supply is 1.3, Down 0.1%
Condo/Townhomes:
· New Listings were 195, Down 6.3%
· Number of Sales were 173, Down 9.4%
· Average Sales Price was $268,793, Up 10.4%
· Median Sales Price was $254,900, Up 10.8%
· Total Active Listings are 200, Up 83.5%
· Months Supply is 1.2, Up 8.9%
And a look at more statistics…
APRIL 2020 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR LOCAL TRENDS IN DETAIL
Colorado Association of REALTORS® , Pikes Peak REALTORS Service Corp, or it’s PPMLS
Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate.
It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.
The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:
- Sold Listings for All Properties were Down 9.5%
- Median Sales Price for All Properties was Up 9.3%
- Active Listings on All Properties were Down 13.2%
You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:
WHY THE STOCK MARKET CORRECTION PROBABLY WON’T IMPACT HOME VALUES
Keeping current matters, 3.24.2020
I’ve been recently asked how the stock market correction in the last month might affect home values and the good news is….it isn’t likely to affect them at all.
With the housing crash of 2006-2008 still in the minds of many, folks have tended to worry that the recent stock market tumble is a sign that home values are likely to follow. However, what’s taking place today is nothing like what happened the last time. The S & P 500 did fall by over fifty percent from October 2007 to March 2009, and home values did depreciate in 2007, 2008 and 2009—but that was because the economic slowdown was mainly caused by a collapsing real estate market and a meltdown in the mortgage market.
This time, the stock market correction is being caused by an outside event (COVID-19) with no connection to the housing industry. Many experts are saying the current situation is much more reminiscent of the challenges we had when the dot.com crash was immediately followed by 9/11.
One economist said, “What 9/11 has in common with what is happening today is that this shock has also generated feat, angst and anxiety among the general public. People avoided crowds then as they believed another terrorist attack was coming and are acting the same today to avoid getting sick. The same parts of the economy are under pressure—airlines, leisure, hospitality, restaurants, entertainment—consumer discretionary services in general.”
Since our current situation resembles the stock market correction in the early 2000’s, here’s a look at what happened to home values during that time:
Bottom Line: If the current situation is more like the markets in the early 2000s versus the markets during the Great Recession, home values should be minimally affected, if at all.
MORTGAGE RATES AT NEW RECORD LOW
RealtorMag, 5.1.2020
Mortgage rates reached a new record low last week, with the 30-year fixed-rate mortgage falling to its lowest average since Freddie Mac began tracking such data in 1971.
Here’s a snapshot of the rates:
What does this mean for you? There’s never been a better time to sell and trade up because it’s likely with the current equity in your present home and the historically low interest rates your monthly payment won’t increase as much as you might have thought. In any case, it’s worth finding out if this is something you are considering. Just give me a call and let’s see how this might work for you.
HOMEOWNERSHIP REACHED AN 8-YEAR HIGH BEFORE COVID-19
RealtorMag, 4.29.2020
In the first quarter 2020, homeownership reached its highest level since Q3 2013. The percentage of people who own a home in the U.S. increased to 65.3%, a 1.1% increase over the prior year, according to the U.S. Census Bureau in a report last week.
While the pandemic may impact that movement going forward, many economists aren’t so certain that it will have that effect across all age groups.
Homeownership rates were lowest for those under 35 years of age (37.3%) but did show increases during the first quarter—the strongest gain over the last 12 months. Current unemployment trends due to COVID-19 will likely impact his age group.
However, as the pandemic subsides, homeownership interest isn’t likely to decrease. While the pandemic is impacting not only the economy and real estate markets, consumer preferences are also shifting.
Americans have been living, working, teaching studying and exercising at home over the past few months and have a new-found appreciation for bigger homes with more outdoor space, updated kitchens, and access to amenities. Those preferences hold across people of all ages and point to a favorable outlook for homeownership, according to George Ratiu, realtor.com’s senior economist.
UCCS ECONOMIC FORUM’S DASHBOARD AND PANDEMIC STATS
UCCS Economic Forum, Updated 4.29.2020
As always, I like to share the valuable information I get from the UCCS Economic Forum. While it normally covers the Big Picture of the US economy as well as that of Colorado Springs, this time it also is covering statistics from the current pandemic.
These reports are presented by Forum Director Tatiana Bailey and complement the many articles and interviews she has recently done for our community during these trying times.
Please click here to view the 11-page report which I think you will find useful and interesting. If you have any questions, please give me a call.
HARRY’S THOUGHTS/JOKES OF THE DAY:
Realtor line of the day:
“Can you picture yourself quarantined in this house?”
And my new slogan:
