HARRY'S BI-WEEKLY UPDATE 7.9.21
July 9, 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.
JUST WHEN I THINK HOME PRICES WILL BEGIN TO LEVEL OFF, I FIND THERE’S NO END IN SIGHT
As you will see in the statistics below, the median price for existing single-family homes in El Paso County exceeded $500,000 for the first time. That’s a BIG WOW…and this isn’t just a local thing—home prices all across America are trending up—but a bit faster in places like Colorado Springs where so many are wanting to relocate.
I will tell you the same thing I’ve been saying for some time now and even more so recently—it’s time to STOP looking at the PRICE of a home and START looking more closely at the MONTHLY PAYMENT.
Interest rates were lowered again this past week and are still historically low. What that means is that even though homes are costing considerably more than they did even several months ago, your monthly payment is more than likely in a range that’s affordable for you. And that’s especially true if you have been renting because rental rates are at an all-time high.
Those of you who are wanting to sell and trade up are even in better shape because in this Seller’s Market you are likely to get more than you might imagine for your present home. That means your home equity is considerably higher than you think—providing you more of a down payment for your next home.
It really is simply a matter of working with a knowledgeable, seasoned real estate professional like me who can help you figure it all out prior to beginning the new home search. This cannot be over-emphasized.
I can help you take your wants, needs and most importantly, budget, and correlate it to the best answers for your individual situation. No two clients are alike, just like no two homes are exactly alike. It’s important for me to get to know you and your family so I can help determine the best direction for you.
The recent pandemic has created a lot of new wants and needs for many of us. Some, like my family, have done a lot of home renovation to meet that criterion. Others have begun to work with me to find a new living situation that already has the necessary changes. And, still others have asked me to go to a new home builder with them to help them get what they want in new home construction as well as the best financing for their particular situation.
These are all areas where I excel and I am truly at my happiest when I can help folks find not only a place to call home, but know I’ve assisted them in obtaining what is often the most valuable asset for their family.
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. However, finding a replacement will likely take some time so it’s best to start in that direction first.
Meanwhile, the best move you can make right now is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered. I look forward to speaking with you and helping to make all your Residential real estate dreams come true.
JUNE 2021
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the June 2021 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 a very low 7. For condo/townhomes it was 6.
Also in El Paso County, the sales price/list price for single family/patio homes was 104.9% and for condo/townhomes it was 104.1%.
Please click here to view the detailed 10-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 June 2021 to June 2020 for All Homes in PPAR:
You might take note that the median sales price for existing Single-Family/Patio Homes jumped above the $500,000 mark for the first time!
Single Family/Patio Homes:
· New Listings were 2,078, Up 2.9%
· Number of Sales were 1,816, Up 7.8%
· Average Sales Price was $502,961, Up 25.1%
· Median Sales Price was $450,000, Up 25.0%
· Total Active Listings are 777, Down 47.5%
· Months Supply is 0.4, Down 6.1%
Condo/Townhomes:
· New Listings were 269, Up 19.0%
· Number of Sales were 222, Down 7.1%
· Average Sales Price was $331,299, Up 27.8%
· Median Sales Price was $320,000, Up 32.6 %
· Total Active Listings are 62, Down 53.7%
· Months Supply is 0.3, Up 7.6%
Now a look at more statistics…
JUNE 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE 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
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 Up 6.8%
- Median Sales Price for All Properties was Up 24.3%
- Active Listings on All Properties were Down 52.1%
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 in general:
LOCAL HOMEBUILDING BOUNCES BACK
The Gazette, 7.3.21
After a slow May, new home construction in the Colorado Springs area has picked up pace, due in part to strong demand.
There were 382 permits issued last month by the Pikes Peak Regional Building Department, a 9.5% increase over the same month last year. This number refers to single-family detached homes, not townhomes or condos.
Demand is strong for a number of reasons. As you read earlier, there were only 777 existing single-family homes for sale at the end of June. When you add in the bidding wars, sales over asking price and more, at times it makes more sense for a family to look at new home construction. It also affords them the opportunity to know approximately when the new home will be ready so they can sell their existing home at the opportune time. In some cases, when my clients have wanted to sell their home earlier, they have been able to ask the buyer for a rent-back situation until their new home is ready.
No matter how it is structured, I can help you in both situations. Being a real estate professional in the local arena for 48+ years has afforded me a good working relationship with a number of local builders and I have assisted clients in home and site selection as well as helped them secure the mortgage best suited for their needs.
In fact, some of my investment buyers have recently been purchasing newly constructed homes to lease. They have found with the favorable interest rates and higher monthly rental pricing, along with the knowledge that the home will not need any repairs for quite some time, it’s a win-win for them. Especially since the type of renter for those homes will likely be one that is more long-term and either doesn’t want to own a home or cannot qualify for their own mortgage for some reason.
If new home construction is in your future, give me a call and let’s see how we can make that work for you.
WHAT TO EXPECT AS APPRAISAL GAPS GROW
Keeping Current Matters, 6.29.21
Today’s low inventory and high demand are driving up home prices. As many as 54% of homes are getting offers over the listing price, based on the latest Realtors Confidence Index from The National Association of Realtors (NAR).
According to CoreLogic, 19% of homes had their appraised value come in below the contract price in April 2021. That’s almost double the percentage in each of the two previous Aprils.
The chart below uses the latest insights from the NAR Index to show how often an issue with an appraisal slowed or stalled the momentum of a home sale in May of this year compared to May of last year:
If an appraisal comes in below the contract price, the buyer’s lender won’t loan them more than the house’s appraised value. Therefore, there will be a “gap” between the amount of loan the buyer can secure and the contract price of the home.
In situations such as that both the buyer and seller have a vested interest in making sure the sale moves forward with little or no delay. The seller will want to make sure the deal closes, and the buyer won’t want to risk losing the home. That’s why it’s common for sellers to ask the buyer to make up the difference themselves in today’s competitive market.
Bottom Line: Whether you are buying or selling, I will be there with you through the entire process and will be there to help you navigate through the unexpected, including potential “appraisal gaps".
UCCS ECONOMIC FORUM UPDATE
College of Business, UCCS, updated 6.25.21
As always, I’ve included the most recent economic update from the UCCS Economic Forum. It provides data concerning all aspects of the economy, on both the National and Colorado Springs levels.
I’ve reproduced just one of the charts below. You can click here to read the entire report and if you have any questions, please give me a call.
