HARRY'S BI-WEEKLY UPDATE 7.10.17
July 10, 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.
AND ONCE AGAIN…LOCAL HOME SALES AND PRICES CONTINUE UPWARD…
It would get a bit tiring to read (and write) except all this great residential real estate news is affecting us all in such a positive way!
In comparing June 2017 real estate average and median sales prices to June 2016—they are once again up—up—up. I’m still busier than ever, although things have slowed down a bit so I can at least catch my breath. Listings are up but continue to be a problem because the lack of inventory makes it more difficult for buyers. In fact, I’ve had to direct a number of clients to new construction because of this.
In case you are not aware, that’s another part of my special brand of customer service. I take the needs, wants and budget of my buyers into consideration and then proceed to find them new construction that fits their personal scenario. With me, they can be certain in talking to the homebuilder that they are getting exactly what they are being promised and I can help direct them to the best financing for them. All of this is at no additional cost to the buyer. Whether it’s an existing home or new construction—I do it all—and more—to make certain that my clients get the very best residential real estate situation for them.
And now for the good news…
In the Single Family/Patio Home category, average sales price in June was $326,263 and median sales price was $285,250. This is an increase of 10.6% and 8.7% respectively year-over-year.
In the Condo/Townhome category the average sales price was $199,134 and the median sales price was $180,000 up 8.7% and 5.9% respectively year-over-year.
Homes are selling at 100.4% of listing price and a VERY LOW average of 24 days on the market. Yes, you read that right. It’s still unbelievable and puts a lot of pressure on both buyers and sellers in terms of decision-making.
If you are selling your home, you need to know where you are going to next because the short turnaround times don’t give you a lot of time to decide after the sale.
And if you are buying, you need to know in advance exactly what you want because most often you don’t get the luxury of “thinking about it” for even a few hours. If you don’t make an offer—one that’s going to get noticed—someone else will. That’s the hard reality these days, but it’s accurate, and the main reason you need a seasoned professional real estate agent like me who knows the “ins and outs” of the process and can get an offer to the table that most likely won’t need to be revised. That doesn’t mean it will be accepted, and not all are for one reason or another, but my track record is outstanding. However, disappointment, much as I hate to see it for my clients, is becoming somewhat of a norm, especially in the under $300,000 price range.
Colorado Springs is appearing on most of the “top” lists—hottest housing markets, best place to live, great cost of living, work/life balance and on and on. Relator.com just listed the “Top 20 Performing Housing Markets in the USA and while California dominated with 8 cities on the list, Colorado Springs came in at number 8! This is something we who live here know—it’s the best place to live and raise a family or retire, but…now the whole world is finding out and there you go.
If you’re looking to sell and trade up—NOW is a great time and if you’re looking to buy for the first time or investment purposes—there are still homes available in most price ranges.
Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me run the numbers for you. With mortgage interest rates still historically low you might find that the house of your dreams is simply a phone call away.
For more details on the local June 2017 PPAR reports, please see the next article.
DESPITE LOW INVENTORY, LOCAL RESIDENTIAL real estate IS HOT
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
You will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 4.5% and 18.1% respectively for year-over-year. This number would have been even higher if we had more listings.
New listings are up 10.8% for Single Family/Patio Homes and down 13.2% for Condo/Townhomes. It appears that sellers are beginning to realize that listing their home in this “hot” market will make it much easier to sell.
Here are some highlights from the June 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 June 2017 to June 2016 in PPAR:
Single Family/Patio Homes:
- New Listings are 2278, Up 10.8%
- Number of Sales are 1,743, Up 5.6%
- Average Sales Price is $326,263 Up 10.6%
- Median Sales Price is $285,250 Up 8.7%
- Total Active Listings are 2,162
Condo/Townhomes:
- New Listings are 301, Up 13.2%
- Number of Sales are 248, Up 21.6%
- Average Sales Price is $199,134, Up 18.7%
- Median Sales Price is $180,000 Up 5.9%
- Total Active Listings are 161
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
June 2017 June 2016
Black Forest $571,000 $433,500
Briargate $386,000 $355,500
Central $228,500 $200,000
East $236,250 $223,000
Fountain Valley: $259,825 $229,900
Manitou Springs: $397,500 $347,500
Marksheffel: $316,750 $279,900
Northeast: $270,000 $243,450
Northgate: $472,455 $397,500
Northwest: $370,000 $377,500
Old Colorado City: $248,500 $240,000
Powers: $272,000 $250,000
Southwest: $421,000 $342,250
Tri-Lakes: $479,649 $425,000
West: $285,000 $250,000
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
HOMES IN THE USA ARE ALSO ZOOMING TO A NEW HIGH
RealtorMag, 6.21.17
Prices all across the country have rose to a new high in May and this doesn’t appear to stop buyers as demand remains high despite housing shortages.
In May, existing home sales—which include completed transactions for single-family homes, townhomes, condos and co-ops—rose 1.1 percent month over month to a seasonable adjusted annual rate of 5.62million. Existing-home sales are now 2.7 percent higher than a year ago.
“The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level,” says Lawrence Yun, NAR’s chief economist. “Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace, and the prevalence of multiple offers in some markets are pushing prices higher.”
The median existing-home price for all housing types rose to $252,800 in May. That surpasses last June’s peak of $247,600 NAR reports.
According to Yun, “This is not sustainable in the long run. Current demand levels indicate sales should be stronger, but it’s clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions.”
“With new and existing supply failing to catch up with demand, several markets this summer will continue to see homes going under contract at this remarkable fast pace of under a month,” Yun says.
HOW TO FIND A HOUSE TODAY
Rismedia.com, 6.17
This may be the most difficult year in a decade to buy a home, especially for the first-time buyer. As previously mentioned, prices are soaring and supplies are short—fueling greater demand and multiple offers in the lower price ranges.
There’s not a lot of leeway for mistakes in today’s marketplace. Discipline is essential, and the learning curve is stepped up. I’ve been telling you for awhile now that home buying is a more serious business today than ever and even more difficult for move-up buyers as well as first-timers.
Here are five tips on house-hunting in today’s market that will help put you ahead of the competition and may spell the difference between success and failure.
(Please note that while a lot of these tips are applicable for any real estate sale, some of the statistics listed are national ones, not local.)
Hire A Specialist
real estate is a large and complex field. Buying a home is one of the biggest investments you will ever make and it’s essential to have someone like me in your corner. With 45 years in local residential real estate and an investment banking background, I am well prepared to guide you through the entire process.
Don’t Start Until You’re Ready
It’s important to know in advance what you need, want and can afford. There’s no sense looking at homes that don’t fit you personal specifications. It’s also imperative that you improve your credit if necessary, have the money for a down payment and get pre-approved by the lender of your choice prior to the search.
Make a Budget and Stick to It
The amount for which your lender approves you is NOT your budget. Your pre-preapproval is conditional and can change when you apply for a mortgage. It also does not include many of the costs of homeownership, like taxes, home insurance and maintenance. Figure out in advance what you can afford and stick to it. There are few heartaches worse than falling in love with a house you can’t afford or stretching yourself so thin that you are “house poor” for the foreseeable future. Don’t let your emotions get the better of you—winning a bidding war could mean a loss to you in monetary terms. That’s what you have me for—to help keep the emotional part in check so you end up with a home that fits you in “all” areas of importance to your family.
House Hunt Every Day
Looking for a new home today is like a second job and financially, it may even be more important to you than a second job. The outcome will determine where you live and how much you spend on housing for years to come. Be proactive and look at all the emails I send you. Spend time learning about new neighborhoods you might not have considered before. Ask me as many questions as you need to feel comfortable with the entire process.
Be Flexible
You might find that you cannot afford to live where you might like, or you can’t afford the size or amenities you would like. If those are deal-breakers for you, you many not be ready to buy in today’s market—or you might want to revisit your criteria and look at homes in other neighborhoods or an older home you can improve over time. Starting out in a condo might be an acceptable solution for first-time buyers. Prices are not likely to decline so you will be building equity while you wait until you can afford the home of your dreams.
Sweeten Your Offer
Don’t rely on real estate sites to determine the value of a home you like. I can show you a comparative market analysis (CMA) to help determine it’s real value. The only thing I can tell you is that with prices rising so quickly, it’s often hard to get a true CMA since other homes in the area may not have sold in recent times. This is what I was telling you about appraisals. The appraisers use current CMA, but those are changing almost too fast to keep up with current prices.
Sellers are not only looking for the best price. They also want an offer that will close on time from a buyer whose financing will not fall through. Consider sweetening your offer by increasing the down payment. If you are selling to trade-up, sell your current home before you buy a new one. Most sellers these days react negatively to offers that are contingent upon a buyer first selling his current home.
Don’t Lose Your Deal
Nationally, about 23% of contracts on homes today have a delayed settlement and 7% of contracts fail to close and are terminated. The leading causes for delayed settlements are issue relating to obtaining financing and appraisal issues.
Most appraisal issues result from appraisals that come in lower than the contract price and buyers must come up with more cash. One way to protect against a low appraisal is to know the value of the house before you make an offer and make a larger down payment than you have to.
Persistence Pays Off
Learn from your experiences. Don’t despair if a seller selects another offer over yours. A better home may come on the market tomorrow. Last year buyers searched for an average of 10 weeks and looked at a median of 10 homes according to NAR’s 2016 Profile of Buyers and Sellers but that’s just a national average for all buyers. If you’re a first-time buyer in a hot market like ours expect the hunt to take longer. Don’t quite after weather turns cold. Fall and winter can be a great time to find a home—there is often less competition than in the spring and summer and sellers can oftentimes be more motivated.
SKY SOX TICKETS STILL AVAILABLE
The Sky Sox are number one in their division right now and tickets are going fast. If you would like to enjoy a game from my front-row tickets, please give me a call so I can put them aside for you.
I have four tickets and they are free to you for the asking, based on availability. Friday night fireworks and Sunday 50-cent hot dog days are the first to go, so call as soon as you know when you might want the tickets.
