HARRY'S BI-WEEKLY UPDATE 8.1.16
August 1, 2016
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.
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ANOTHER MONTH OF MORE GOOD NEWS FOR LOCAL HOMEOWNERS
July PPAR statistics came out this afternoon and once more the Pikes Peak housing market has performed extraordinarily well now has shown 24 consequent months of increased local Residential real estate sales.
Homes are continuing to sell at a whopping 99.8% of listing price. Not only that—the average days on the market is a low 25. This is such good news for both buyers and sellers.
As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes are up 14.9 over July 2015.
The Monthly Summary shows that total active listings are down 18.5% for Single Family/Patio Homes and 26.7% for Condo/Townhomes compared to a year ago. This downward trend is continuing to be great for sellers. While new listings are slightly up, it continues to be more difficult, but certainly not impossible, for current buyers to find a new home.
Median Sales Prices are up 6.0% and 6.6% respectively for Single Family/Patio Homes and Condo/Townhomes—more wonderful news for both buyers and sellers.
Another feather in our cap is the fact that Colorado Springs is once again in the “Top 20 Hottest Housing Markets” for July 2016.
That said, I am still as busy as I’ve ever been, much of it due to increased equity in homes and still historically low interest rates that are causing folks to realize that they can get more house for the same or even less money by trading up or moving to a new area. A number of first-time buyers are in the market due to the increasingly high rental rates. That is also driving those looking for investment properties as rental homes have had “waiting lists” in recent days.
However, some problems that have surfaced are the longer lending approval times, bidding wars, delays in getting home appraisals and fewer homes available in the $300,000 and under range.
One more time--it’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.
If you’re considering a move, give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the ball rolling. I look forward to putting my special brand of customer service to work for you, your family and friends or co-workers.
JULY 2016 WAS THE 24TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the July 2016 PPAR report. Please click here to view the detailed 14-page report, including charts. If you have any questions, just give me a call.
In comparing July 2016 to July 2015 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,932, Up 2.7%
- Number of Sales are 1,485, Up 8.6%
- Average Sales Price is $294,162, Up 6.8%
- Median Sales Price is $257,500 Up 6.0%
- Total Active Listings are 2,780, Down 18.5%
Condo/Townhomes:
- New Listings are 281, Up 31.3%
- Number of Sales are 238, Up 22.7%
- Average Sales Price is $185,685, Up 9.3%
- Median Sales Price is $165,750, Up 6.6%
- Total Active Listings are 220, Down 26.7%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
July 2016 July 2015
Black Forest $427,500 $412,450
Briargate $337,450 $328,150
Central $209,450 $180,000
East $217,500 $197,000
Fountain Valley: $232,000 $217,000
Manitou Springs: $375,800 $310,000
Marksheffel: $257,500 $255,000
Northeast: $250,000 $255,000
Northgate: $415,000 $397,500
Northwest: $365,000 $355,500
Old Colorado City: $225,000 $245,450
Powers: $255,000 $229,500
Southwest: $286,500 $282,500
Tri-Lakes: $413,415 $440,000
West: $260,500 $276,950
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
HOME SALES ARE NOW AT THEIR FASTEST PACE IN NEARLY A DECADE
The Wall Street Journal, 7.22.16
The National Association of Realtors has said that in June 2016 the pace of existing-home sales increased to the highest level since February 2007.
The housing market has been boosted in recent months by strong job growth, improving wages and mortgage rates that have dipped near historic lows since Britain’s decision to leave the European Union.
While economists had predicted the pace of home sales would be moderate in 2016 due to fewer homes for sale and lackluster economic growth, thus far the market has largely outperformed those expectations.
NAR chief economist, Lawrence Yun, still predicts that the market is likely to slow throughout the remainder of the year. While demand may remain strong, inventory shortages are likely to depress purchase he said.
real estate BETTER THAN STOCKS, GOLD
RealtorMag.com 7.25.16
In a recent national survey conducted by Bankrate, it was found that despite recent gains in the stock market, Americans have more confidence investing in real estate.
Consumers selected real estate as the top pick to invest money the wouldn’t need for more than 10 years, followed by cash investments such as certificates of deposit and savings accounts. Coming in third was the stock market.
According to Sterling White, a co-founder of Holdfolio, a real estate Investment firm, “Homes are tangible. You can physically see and feel the product. So you know where your money is going: it’s going into that house. With stocks, you have no clue where your money is going.”
The millennials were the only group that valued cash investments above their other choices by a large margin. Financial planners are finding this a bit concerning, especially since right now you are practically getting no interest from cash investments like CDs and savings accounts.
It’s possible that many of these millennials are still mired in student loan debt and either cannot save for a down payment or do not have the credit to qualify for a mortgage. Hopefully they will get more detailed information to help them find a way to invest in a home. Mortgage lenders are going all out to decrease down payment and credit requirements for these folks.
AMERICAN’S TOP HOUSING CONCERNS
RealtorMag.com
It appears that Americans are concerned about the upcoming election as much as they are about low inventories and high prices. Once more, millennials are driving this concern.
Lingering concerns about the housing crisis of 2008 is of particular concern to these folks. Confidence, or a lack of it, is keeping the millennials away according to a recent survey.
The top concerns Americans’ expressed in the latest ValueInsured Modern Homebuyer Survey were:
- Global economy: 59% of Americans and 68% of millennials say that the global economic climate had them worried
- American economy: 63% of Americans and 70% of millennials say that the current U.S. economy has them concerned about the risks of buying a home
- National security: 48% of Americans and 61% of millennials say that national security is taking a toll on their home-buying decisions
- Job security/mobility: 55% of Americans and 71% of millennials say that the possibility of a job change or loss has them concerned.
RENTAL INCOME PROPERTIES ARE ON THE RISE
The Gazette, 7.31.16, Bloomberg News
The share of Americans’ total personal income coming from rental profit rose to a record 4.4% in the first quarter 2016 according to data released in a monthly Commerce Department report.
That is an all time high in figures dating to 1947 and is up from 0.7% 30 years ago. That’s a big WOW.
I’ve personally helped a number of my clients find rental properties to add to their investment portfolios and a number of them have purchased several of these in recent months.
Two economic trends are at the core of this. First, historically low mortgage rates have cut down expenses that would eat into a landlord’s pocket. At the same time, tight supply has pushed rental prices in the U.S. (and most especially the Pikes Peak area) up at more than double the rate of other goods and services.
“The share of Americans renting their home is now nearing 50-year highs, and this rapid shift has occurred at a time when the rental housing stock has not had ample time to catch up,” said Ralph McLaughlin, chief economist at Trulia. “Investors have been able to capitalize on the shortfall by taking higher rents.”
With homeownership in the U.S. falling to 63.5 percent in the first quarter, near a 48-year low, it’s easy to understand why. The paradox is that as much as renters want to own a home, higher rents are making it harder for them to save for a down payment and less than stellar credit histories are also a detriment.
For those of you considering rental income properties, please give me a call. As I’ve said in the past, being a landlord is not necessarily for everyone, but I can provide you with the tools necessary to determine whether or not this might be a good financial investment for you.
SKY SOX TICKETS GOING FAST
Just a reminder -- I have four front row seats available on a first come, first served basis. Just give me a call and I will be happy to put them aside for you. They tend to go out the door quickly, especially for the Friday night fireworks and Sunday 50-cent hot dog games. If you are interested, don’t wait until the last minute. I’ll save them for you if you let me know in advance.
