HARRY'S BI-WEEKLY UPDATE 6.5.17
June 5, 2017
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.
EXISTING HOMES IN THE COLORADO SPRINGS AREA ARE CONTINUING TO SMILE….AS ARE THEIR OWNERS
Well…another month has come and gone and things are continuing to look up…up…up for the residential real estate market in our area and pretty much across the U.S.A.
That’s great news for homeowners and most especially for sellers. The spring buying season (which actually began the beginning of this year!) is in full swing.
On Saturday I received the monthly PPAR report and the upward trend is continuing. Home prices are still on the upswing with most closing for OVER listing price. Average days on the market are less than a month!
In the Single Family/Patio Home category, average sales price in May was $319,969 and median sales price was $280,000. This is an increase of 10.2% and 6.9% respectively year-over-year.
In the Condo/Townhome category the average sales price was $189,914 and the median sales price was $185,000, up 10.9% and 10.8% respectively year-over-year.
Homes are selling at 100.6% of listing price and a low average of 28 days on the market. Yes, you read that right. As I mentioned earlier—things are a bit crazy in residential real estate!
As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 4.3% and 17.1% respectively for year-over-year. This number would have been even higher if we had more listings.
The Monthly Summary shows that compared to a year ago, total active listings are down 19.0% for Single Family/Patio Homes and down 25.1% for Condo/Townhomes, continuing the downward trend that tends to favor sellers. New listings are up 5.0% for Single Family/Patio Homes and down 0.4% for Condo/Townhomes.
More records are being broken as I write. It just keeps on rolling and is keeping me and other real estate agents constantly busy. It’s a “good” busy, though, as lately I’ve seen a number of renters and first time buyers move into their first homes. I know how that feels and it’s such a pleasure to help make that happen for my clients.
When my clients follow my advice it makes the entire process easier and hopefully more productive, too.
Harry’s Word to the Wise in Today’s housing market
Be prepared to:
- Offer more than list price—there’s little room for negotiation with price.
- Have several back-up options in mind—including various neighborhoods.
- Get a pre-approval letter before the start of the looking process.
- Be prepared to make an offer—if it’s what you want, it’s what others want, too. The sooner you show your interest to the seller the better.
- Know where you might move if you are planning to list your present home. It’s likely to sell much faster than you might imagine.
- Have an expert like me to write your offer. It’s imperative to have your first offer stick out and say “pick me” because there will likely be several coming in at once and yours needs to be the one they like. I’ve written and had thousands of offers accepted over the years and know the “ins and outs” of writing one that will not only warrant a second look, but will likely be the one that makes it to the closing table.
What all this means to you is twofold. If you are considering to sell to trade up you really need to have a good idea of where you will be moving prior to buying the next home. A number of my clients have waited to list their present home until AFTER they find the next one because we know their present home is likely to sell quickly.
The second necessity in today’s market is to do your homework and know what you want, need and can afford. Then be sure to have first, second and sometimes third options ready in case the first home you select doesn’t become a reality. I’ve been saying for some time that there is no more the luxury of thinking about it for days, or even a few hours in many cases. If you don’t make an offer, someone else will.
Home buying should be a lot of fun when you’re considering one of the most important financial decisions you will ever face. It’s essential to have someone like me on your side throughout the process to help make it as stress free as possible—most especially in this market frenzy!
With 45 years in local real estate and a background in investment banking, I bring everything to the table that you need when you are ready to sell and trade up, or buy for the first time or for investment purposes.
I can do a lot of the homework for you prior to starting so that when you are actually active in looking at prospective homes you will know they are ones that check as many boxes of yours as possible within the available inventory.
There are listings in most price ranges and in most neighborhoods, but there aren’t many and the ones that are there are going FAST.
Another option that’s on the table more and more is new construction. There are a number of builders who are stepping up their business to accommodate all the buyers and I’m more than happy to check out all those options for you, too.
Having me to help find the builder that’s right for your needs is very important. And being with you through the process to make certain you get all the questions answered beforehand is a necessity. I’ve done a considerable amount of work in new construction in dealing with builders and making certain that my clients get exactly what they want and are promised. If this is an option for you, call me sooner than later as these homes are going quickly, too, and lot selection can be an important factor for your home as you know.
Homes across the USA are seeing similar activity. Realtor®.com has said this is a bit of like a good news/bad news joke. The good news: The inventory country-wide increased slightly from April to May. The bad news: That was still an 11% drop from May of last year—not nearly enough to keep up with demand. Much of the new inventory is being quickly taken or is priced beyond the reach of the average buyer.
“With a record number of home buyers out there, this is officially the most competitive, fastest-moving spring housing market in decades”, said Javier Vivas, manager of economic research at realtor®.com. “Following a furious start to the season, the median days on the market for homes on realtor®.com in May is the lowest since the end of the recession and marks the first time that 1 in 3 homes is selling in under 30 days nationally.”
What’s driving this market?
- Interest rates are holding at close to historical lows but won’t last forever.
- Rental rates are increasing fast and it is becoming much less expensive to make a mortgage payment than pay a landlord. That’s increasing the number of people who are buying investment property and those who are first-time buyers.
- Home values are increasing, (check out the statistics) thus allowing those who had previously been “underwater” equity-wise to sell and trade up.
- The philosophy that “if I don’t take care of my residential real estate dreams now, it may never be possible”.
Everyone that knows me knows that I believe “anything is possible”—one way or another!
That being said, I highly encourage anyone who is even thinking of getting in the market to do it NOW. The first step is to give me a call at 593.100 or email me at Harry@HarrySalzman.com and let me put my special brand of customer service to work for you. Together we can make your residential real estate dreams come true.
For more details on the local May 2017 PPAR reports, please see the next article.
AND…NOW…FOR…THE…FABULOUS…NUMBERS…
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the May 2017 PPAR report. Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.
In comparing May 2017 to May 2016 in PPAR:
Single Family/Patio Homes:
- New Listings are 2,053, Up 5.0%
- Number of Sales are 1,632, Up 9.0%
- Average Sales Price is $319,969, Up 10.2%
- Median Sales Price is $280,000, Up 6.9%
- Total Active Listings are 1,859, Down 19.0%
Condo/Townhomes:
- New Listings are 264, Down 0.4%
- Number of Sales are 226, Up 12.4%
- Average Sales Price is $189,914, Up 10.9%
- Median Sales Price is $185,000 Up 10.8%
- Total Active Listings are 125, Down 25.1%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
May 2017 May 2016
Black Forest $439,500 $471,400
Briargate $383,750 $338,500
Central $221,500 $215,000
East $235,000 $215,000
Fountain Valley: $245,000 $237,000
Manitou Springs: $395,000 $237,000
Marksheffel: $284,000 $279,900
Northeast: $276,500 $243,888
Northgate: $475,648 $413,579
Northwest: $437,000 $333,500
Old Colorado City: $296,500 $219,250
Powers: $271,500 $252,000
Southwest: $342,450 $326,500
Tri-Lakes: $492,500 $400,000
West: $272,500 $244,000
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
SOME MORE GOOD NEWS FOR COLORADO SPRINGS
- Garden of the Gods Park has been listed by Trip Advisor as the #1 Park in the USA and the #2 Park in the World. That’s not surprising to those of us who live here but it is a warning that a lot more folks are going to be finding their way here! Good for tourism but maybe those crowded streets and hiking trails are not so good for us locals!
- Colorado Springs has been listed at #6 as one of “America’s Hottest real estate Markets in May 2017” by realtor®com.
- Our unemployment rate is at a new low—it dropped to 2.5% in April—the lowest recorded by the U.S. Bureau of Labor Statistics in records beginning in 1990.
- New homebuilding pace is once again increasing due to demand.
- Foreclosures dropped 5% from a May 2016 and continue their decline.
WHAT THE EXPERTS ARE SAYING ABOUT THE HEALTH OF THE housing market
Keeping Current Matters, 4.25.17
Doug Duncan, Fannie Mae Economist:
“Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates.”
Dian Olick, CNBC
“Even as more homes come on the market for this traditionally popular sales season, they’re flying off fast, with bidding wars par for the course. Home prices have now surpassed their last peak, and at the entry level, where demand is highest, sellers are firmly in the driver’s seat.”
Daren Blomquist, Senior VP at Attom
“I am guessing we will see it get even better…if you are considering moving, it could be a really good time to sell.”
Lawrence Yun, NAR Economist
“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month. Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings…for sales to muster a strong gain. Sales will go up as long as inventory does.”
Mark Fleming, First American Chief Economist
“Despite higher mortgage rates, the potential for home sales increased on an annual basis driven by steady income and job growth, along with a surge in building permits. White it may be a little late for this spring, the increase in bulding permits is a welcome sign that some relief may be in sight for the inventory shortages that are holding back many markets from realizing their full potential this spring.”
SKY SOX TICKETS AVAILABLE
It’s time to reserve your complementary tickets for my first row, right behind home dugout seats for a Sky Sox game.
I’ve got four of those available for each and every game and as always; they are available on a first-come, first-served basis.
Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and I’ll make certain to save tickets for any available game for you.
HARRY’S THOUGHT OF THE DAY:
This quote by baseball great Hank Aaron is one of my favorites. It was displayed in the new Atlanta Braves stadium in Georgia.
We saw a game there on May 17th—just one month after it opened-- and one of the treats was a walk through memory lane with so much interesting memorabilia from the years of the Boston, Milwaukee and now Atlanta Braves. It’s most definitely a “destination” stadium as they have built hotels, condos, breweries, musical venue, and fabulous restaurants and shops. Something for everyone!
