HARRY'S BI-WEEKLY UPDATE 6.28.21
June 28, 2021
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.
INNOVATION IS THE BUZZWORD OF THE MOMENT…AND LIKELY FOR THE FUTURE AS WELL
There’s just no avoiding it anymore, and if you’ve kept up with my eNewsletter columns you know I’ve been especially fortunate in finding new and innovative ways to help my clients realize their Residential real estate wants, needs and dreams.
I can’t overemphasize the importance of working with a seasoned, knowledgeable and innovative real estate professional in any situation, but most especially in today’s seller’s marketplace. My 48+ years in the local Residential Real Estate arena coupled with my investment banking background gives me an edge that is particularly important in today’s buying and selling wars. I’ve been through most every type of “cycle” and earned my nickname of “Mr. Negotiator” through years of practice.
Buying a new home, which is often a family’s largest asset, should be a wonderful experience and I’ve always tried to keep the process as stress-free as possible for my clients. I wish I could say that the past couple of years have been that way, but unfortunately that’s not the case. Bidding wars and other new and innovative tactics have made the whole process much more difficult on the buyers, yet I still do everything possible to alleviate the day-to-day stress.
A big part of my job is working with clients and their family members to make certain we’ve got as much information as possible right at the beginning of the search. When we’ve figured out a strategy it’s much easier to make the quick decisions that are necessary in today’s market.
Every family situation is different and there’s no easy “no size fits all” in Residential real estate. Home size, location, family size and wants, needs and budget all come into play and have to be considered right from the start.
I like to spend time getting to know my clients so that I can best represent them and make certain they are getting the most for their money. It can get a bit frantic in these bidding wars and I’ve learned that at times, walking away is a “win” when it’s not in a buyer’s best interest to “win the bid, but lose the war” so to speak.
Interest rates are still historically low, rental rates are historically high, and folks are ready to move based on what they now realize they want in a home after being quarantined for so long.
When you add all that to the fact that median home prices all across the U.S. are at an all-time high and inventory is at an all-time low, well, you get the picture.
Even folks looking for new construction are finding that with increased demand at the same moment building materials are at an all-time high, they not only cannot get a definite move-in date, but the builder also cannot give them an exact price for the new home.
Yes, it’s crazy times in Residential real estate and not likely to change any time soon.
A recent Wall Street Journal article in the “Future of Everything” section was entitled “Built-To-Rent Suburbs Are Poised to Spread Across the U.S.”. The gist of the article was that current “economic forces and generational preferences are leading to a new kind of housing: subdivisions designed for renters and managed like apartment buildings”. This is another innovative way that investors and builders are coming together to provide homes rather than apartments in a community type of setting. This is a new concept, and I don’t know how it will play out, but it just goes to show that folks are thinking of new ways to provide housing to those who either can’t or don’t want to buy, but still want to live in a house, rather than an apartment.
I’m hopeful that more folks will start putting their homes on the market in order to trade up or move to a new neighborhood and that will at least help us get back to a bit more normalcy.
If you’ve even considered a move, now is the time to get started. Prices aren’t going down any time soon and mortgage rates essentially have nowhere to go but up, so today is the best time to start. It shouldn’t take long to sell your present home and it will likely go for far more than you might imagine. It WILL take longer to find your next home, so that also needs to be a consideration from the start.
The best move you can make is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered. I look forward to speaking with you.
OWNING A HOME HAS DISTINCT ADVANTAGES OVER RENTING--Infographic
KeepingCurrent Matters, 6.18.21
Highlights:
- When you rent, you build your landlord’s wealth, your monthly payment depends on ever-rising rents, and you don’t benefit from home price appreciation
- On the other hand, when you own your home, you build you own wealth, your monthly payment is locked in, and you benefit directly from home price appreciation
- If you’re feeling the challenges of a competitive market, remember that homeownership is a long-term game. Persevering today will lead to financial rewards in the future.
U.S. HOUSING DEFICIT IS PUT AT 5.5 MILLION
The Wall Street Journal, 6.17.21
Some more statistics to show why it’s especially tough to buy a home at present:
- Construction of new housing in the past 20 years fell 5.5 million units short of long-term historical levels, according to a report by the National Association of Realtors (NAR).
- The recent annual rise in the median existing-home price has been 19%.
- In May, U.S. homes posted their biggest annual increase in more than two decades when the median national home price topped $350,000 for the first time. In Colorado Springs, the median single-family home price was $432,095 in May.
- U.S. homes sales soared last year at their fastest pace in 14 years, when low interest rates and the rise of remote work during the pandemic sent buyers scrambling to find larger living spaces.
- The lack of homes for sale relative to demand and record housing prices have slowed the pace of home sales in recent months, but on a historic basis, the market remains red hot and analysts say demand from millennials entering their prime homebuying years is expected to fuel demand for years to come.
- More than 90% of home builders surveyed by NAR in May reported shortages of appliances and framing lumber.
As of this week, I’ve read that price of lumber and some other building material is finally going down but is still higher than in the recent past due to the great demand from builders and others. Until demand stabilizes, I’m afraid we are in for continued unprecedented times.
So once again, if you’ve been considering a move, NOW is the time to get started. It will take some time and perseverance, but prices aren’t going to get better, and interest rates are certainly not guaranteed to stay this low forever.
