HARRY'S BI-WEEKLY UPDATE 8.20.18
August 20, 2018
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Unique Brand of 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.
WHAT THIS eNEWSLETTER MEANS TO ME…AND HOPEFULLY TO YOU, TOO
I get a lot of positive feedback from folks who read or have read my eNewsletter, while others have wondered how and why I take the time to continue writing it.
My answer is simple—I do it for YOU, my readers and clients. I spend a lot of time keeping up on all things concerning residential real estate, some regulatory, some not, and know that in order for me to best serve my clients, information is crucial. Not just for me, but for you, too. Knowledge and implementation equal a better rate of return.
Purchasing a home is most often the most important financial decision a family can make as it is oftentimes their greatest asset. Would you want to be less informed about a home purchase than that of securities or car? I certainly hope not.
What I try to do every other week, is give you a condensed view of what’s happening—both local and nationally—and at times often compare the two so you can see just where the Colorado Springs area stands in relation to the rest of the country.
As most of you know, I take great pride in our city and have served on various local government committees in order to give back to the community that has treated me so well. Because of that, I often have been able in a small way to affect positive change.
When Colorado Springs was recently named the “Best Place to Live in the U.S.”, I couldn’t help feeling lots of pride, especially knowing that in my own way I have contributed to help make this a reality.
My “official" recorded title is “The real estate Therapist” for many reasons. The first is that I spend as much time as necessary with my clients to determine their exact needs, wants and budget BEFORE ever starting a home search. When it comes to relocation…Is there a trailing spouse? Are there children? Is being close to a good school or parkland a requirement? What about the commute?
These are all things that come into play whenever I first talk to a client. “Stage of life” is another important consideration. Retirees might want to sell and scale down or move to a ranch from a two-level home. First-time homebuyers without children might want a location closer to downtown or where there are more activities geared to them and their peers. When it comes time to sell and trade up, schools might be the greatest consideration. There’s always a reason that people want to move and it’s my job to help determine that reason and make that move as stress free as possible.
And getting back to the eNewsletter. There are reasons for the articles I publish. It’s important for you to know that homes in the Colorado Springs area are selling for over list price on a regular basis these days so if you are thinking of making an offer under the list price you will be forewarned that it probably won’t happen. In fact, if you are like the client I told you about last week, the offer won’t even be considered, let alone countered. So, then again…information is worth time and money and can save you disappointment in the long run.
I realize not everyone is moving all the time, so I also try to provide information concerning your present home and its current value, among other things. I’ve found that folks often wonder what their home is worth and if it’s possible to move and trade up or go to a different neighborhood but aren’t sure if that is possible.
That’s why I’m here—just a phone call away. I can provide you with all the information you might need to make an informed decision. Sometimes I might advise you just to stay put if that is in your best interest at the moment. But you won’t know unless you call.
I can be reached at 593.1000 or by email at Harry@HarrySalzman.comand welcome talking to you, your coworkers, family and friends. It’s worth the to find out how to maximize your residential real estate investment and I’m always happy to be of help.
COLORADO SPRINGS CITED FOR BEING SMALL-BUSINESS FRIENDLY
The Gazette, 8.15.18
On top of being named the most desirable place to live in the U.S.A. and the second among the best places to live, both by U.S. News and World Report, Colorado Springs was ranked last week as the nation’s fourth friendliest city for small businessin the seventh annual survey by Thumbtack.com, a San Francisco based online consumer service.
Colorado Springs’ number four ranking out of 57 cities was a tremendous improvement over last year when it was ranked 37 out of 80 metro areas. The city also received an overall A+ grade this year, up from a B in 2017.
While voluntary and not scientific, the cities and states were ranked in nine areas of performance based on 7,629 responses from small business owners across the country, though only 32 respondents were from Colorado Springs.
Besides its overall A+ grade, Colorado Springs also received grades of A and A- in employment, labor and hiring regulations; tax regulations; licensing regulations and training and networking programs. The city earned Bs for its ease of hiring and overall regulations. It received a C+ in the ease of starting a business. Government websites, however, got an F—a grade shared by 34 other cities in this year’s survey.
The only other Colorado city in this year’s survey—Denver—ranked number 41 and received an overall grade of C-.
“Generally speaking, Colorado Springs has a lot to be happy with, with regard to how small-business owners are feeling,” said Lucas Puente, Thumbtack.com’s lead economist.
This can be attributed to the city providing a more welcoming environment for small businesses, according to Mayor John Suthers. He cited the City Council’s agreement to phase out the city’s personal property tax on business equipment and machinery as a plus and also credited the Rapid Response Program started under former Mayor Steve Bach, for assisting business and expediting their regulatory hurdles. A stronger economy also puts small business owners in a better frame of mind, he said.
I say—congratulations Colorado Springs on another mention in the “Best” lists. My participation on PlanCOS Steering Committee over the past two and a half years has given me the opportunity to see first-hand just how hard Mayor Suthers and the City Council, among others, are working to make all of this a reality.
Bravo to all and Bravo to all of us who live and work in Colorado Springs.
AND JUST OFF THE PRESS…ANOTHER ACCOLADE
The Gazette, 8.17.18
Last Thursday, Colorado Springs was listed as Number 6 out of 300 metro areas nationwide in a survey of hot housing markets by Realtor.com.
This index is based on the number of online views received by homes listed for sale in each market, which indicates demand in a particular area.
According to Realor.com, “This is a very hot market that is heating up compared to last month and heating up compared to last year. Median days on the market is 32 with inventory moving 11 percent faster than last year and 27 days faster than the U.S. overall. Properties in the area receive an average number of views 1.6 times higher than the U.S. average.”
So, there you go. A look at the following statistics will show you why we’re getting all this attention.
JULY 2018LOCAL MARKET UPDATEAND MONTHLY INDICATORSILLUSTRATE OUR CONTINUING UPWARD TREND IN GREATER DETAIL
Pikes Peak REALTORS®Services Corp.,
These reports contain much greater detail than the first-of-the-month reports I share and cover ALL residential areas in the Pikes Peak Region.
In the recently published July 2018 Monthly Indicators andLocal Market Updatefor El Paso and Teller Counties, new listings year-over-year were down 2.7% for the single-family/patio homes and up 1.7% for condo/townhomes.
The “Activity Snapshot”shows the one-year change:
- Sold Listings for All Properties was down 3.6%
- Median Sales Price for All Properties was up 10.3%
- Active Listings on All Properties was down 10.4%.
You can click here to read the 16-page Monthly Indicatorsor click here to get specific information on the neighborhood of your choice from the 34-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, Falcon, below to show you the type of information available for all local areas.
For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.
BUYING NOW IS 26.3% CHEAPER THAN RENTING IN THE USA
Keeping Current Matters, 8.7.18
Results of the latest Trulia “Rent vs. Buy Report” shows that homeownership remains cheaper than renting, with a traditional 30-year fixed rate mortgage in 98 of the 100 largest metro areas in the United States.
In the six years of conducting this survey, this is the first time that is was cheaper to rent than buy in any of the metro areas. No surprise, though, that those two metro areas were San Jose and San Francisco, CA, where median home prices have jumped to over one million dollars this year.
For the 98 metro areas where homeownership wins out, 97 of them show a double-digit advantage when buying. The ranges go from an average of 2.0% less expensive in Honolulu, HI all the way up to 48.9% in Detroit, MI and 26.3% nationwide.
This map shows the 100 metro areas that were studied. The darker the blue dot on the metro, the cheaper it is to buy there.
In calculating the true cost of renting vs. buying, Trulia includes all assumed renting costs, including one-time costs (like security deposits) and compares them to the monthly costs of owning a home (insurance, mortgage payments, taxes and maintenance), including one-time costs (down payments, closing costs, sale proceeds). They also assume that households stay in their home for seven years, put down a 20% down payment, and take out a 30-year fixed rate mortgage.
The chart below was created with the date from the last six years of the study, showing the impact of the median home price, rental price and the 30-year fixed rate interest rate used to calculate the “cheaper to buy” metric.
In 2016, when buying was 41.3% less expensive than renting, the average mortgage rate was the driving force behind the difference. Rates this year are the highest they have been in six years, which has narrowed the gap, while home price appreciation has also been driven up by lack of inventory.
Bottom Line?
Home ownership provides many benefits beyond the financial ones. If you are one of the many renters or know someone who is and would like to evaluate the ability to buy this year, let’s get together and figure out how we can make that happen.
Home prices are increasing, but at a slower pace; however, mortgage loan rates will soon be going up even more so there’s little time to lose. Give me a call today and let’s get the ball rolling.
I can be reached at 593.1000 or email me at Harry@HarrySalzman.com today and let me put my special brand of customer service to work for you.
CONSIDERING NEW CONSTRUCTION? HIRING AN AGENT IS IMPORTANT HERE, TOO
Many times homebuyers think they don’t need to hire an agent when building a new home since they are buying directly from the builder and they already have contractors, lenders, and inspectors. So why involve someone else?
In all honesty, buying ANY home without a knowledgeable professional on your side can be a very costly mistake. It can mean paying more than you should, missed opportunities for upgrades, contract errors that are not in your favor or a delayed closing.
Here are three reasons to have a professional like me on your side BEFORE visiting the sales office:
- Expert Negotiation: While their advertising would have you believe otherwise, builder’s prices aren’t always set in stone. Agents are skilled negotiators who can likely get the price dropped slightly or have a few upgrades thrown in.
- Preferred Vendors: You builder might have an affiliate mortgage lender or title company, but chances are they aren’t going to offer the best deal. It’s important to shop around, and what’s better than a vendor your agent already knows and trusts?
- Guidance and Support: The homebuying process can be complicated, with lots of twists and turns and steps along the way. When buying new construction, you also have design reviews, electrical work and other construction needs. An agent can guide you through all of these, making sure your purchase stays on track, on time and on budget from start to finish.
It’s important to note that while you may be working with an agent or representative of the builder, they may not have YOUR best interests at heart. Enlisting your own trusted agent can give you an advocate from the very first meeting to closing day.
I saved the best for last…
All of this new construction advice is available AT NO ADDITIONAL COST TO YOU.
However, a word to the wise……if new construction is a consideration, just give me a call BEFORE you begin the search. I have long time relationships with most local builders and can help guide you every step of the way. I’ve seen most new models and can help address which ones might be just right for your particular situation. This will help save you time, money and take away a good amount of stress. Homebuying should be as stress free as possible and that’s my goal for all my clients.
AND THIS FROM ELLIOT EISENBERG, ‘THE BOWTIE ECONOMIST’…
Blog on 8.16.18
“One week from today [which was 8.16.18], the current bull market will reach 3,453 days in duration, surpassing the longest bull market of 3,452 days, which went from 10.1.90 through 3.24.00. During this near 10-year period, US equities have returned about 420%, excluding dividends, since the bull began on 3.09.09. One reason for its success, it began during the trauma of the Great Recession and many investors (wrongly) believed equities would never recover.”
HARRY’S JOKES OF THE DAY:
(with thanks to my fraternity brother and fellow Realtor, Gary Shapiro of Scottsdale)
FEATURED LISTING:
The last of my listings sold this week. One was listed and sold, both by me, on the same day—at asking price.
Your home can be featured here in the next eNewsletter!
