HARRY'S BI-WEEKLY UPDATE 8.21.17
August 21, 2017
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.
DOUBLE RAINBOW FROM MY OFFICE WINDOW…
A 90% SOLAR ECLIPSE IN COLORADO SPRINGS TODAY…
HOME PRICES ECLIPSING THE 2016 HIGH IN THE SECOND QUARTER …
ALL-IN-ALL IT’S DEFINITELY A GOOD LIFE!
A lot going on these days and with the focus on today’s total Solar Eclipse over North America, I thought I’d write once again about the “sky high” local home appreciation and what it means to you and me.
The just released quarterly National Association of Realtors (NAR) median single-family price data for 175 Metropolitan Statistical Areas (MSA’s) is just one more “plus” for the Colorado Springs area. This data has been tracked by NAR since 1979 and I’m thrilled to tell you that while the average sales price of all homes in this survey increased by 6.2%, home prices in Colorado Springs increased by 9.6%. What that means is that our local homes prices increased more than 50% over the measured average of all 175 MSAs. Now that’s certainly something to cheer about. If you’d like to see the complete listing, please click here.
Lawrence Yun, chief economist at NAR, says home prices in most metro areas continued their fast ascent in the second quarter because supply remained at pitiful levels, something we are definitely seeing in the Colorado Springs area.
“The 2.2 million net new jobs created over the past year generated significant interest in purchasing a home in what was an extremely competitive spring buying season”, Yun said. “Listings typically flew off the market in under a month—and even quicker in the affordable price range—in several parts of the country. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets.”
Yun added, “The glaring need for more new home construction is creating an affordability crisis that needs to be addressed by policy officials and local governments. An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth building benefits of homeownership.”
“Mortgage rates have subsided in recent months, which has only somewhat helped take away some of the sting prospective buyers are experiencing with the deteriorating affordability conditions in many areas,” Yun said. “Household incomes may be rising and giving consumers assurance that now is a good time to buy, but these severe inventory shortages will likely continue to be a drag on sales potential the second half of the year.”
The Pikes Peak area is most definitely one of those to which Yun is referring. I can’t ever remember a time when home sales have moved as quickly and with so many multiple offers in most price ranges. I can barely list a home on MLS and it’s been shown multiple times and the sellers have received more than one offer in record time. While this is great news, it places a lot of stress on both buyers and sellers. Yes, understanding that “time is of the essence” is extremely important to all parties.
Sellers have to know where they are planning to move because oftentimes the buyers want to close quickly. That’s one of the reasons I’ve encouraged my clients to purchase their “next” home prior to listing their present one, if applicable.
Buyers, on the other hand, need to know what they need, want and can afford prior to the home search, as there is little time to make a decision when they find a home they like. If they don’t make an offer, someone else will. That’s today’s reality and unless the listing shortage goes away, it’s not likely to get any better.
Mortgage rates are still historically low, and with the stock market dropping lately, folks are seeing that home appreciation is most definitely outpacing the market over the long haul. I’ve been telling you that for years and recent history has proved it time and again.
Many of my clients are adding one or more rental properties to their investment portfolios and with good reason. Aside from the obvious home equity appreciation, there are still a number of people who cannot or choose not to own a home and those folks need to rent. Investment properties are helping fill that need for those renters.
Rents are at an all time high nationally and Colorado Springs has one of the highest percentage increases in rental rates in the country. This is pushing those who had not considered homeownership in the past into the category of potential buyers. Millennials and others who have not been real active in the housing market are beginning to move in that direction. Let’s face it—you’re paying someone’s mortgage one way or the other—why not let that be your own? Besides the obvious tax deductions and equity building, at least you know that your rent is not going to increase every time the lease is up.
So there you go. Lots of reasons to buy and trade-up, buy for investment purposes or buy for the first time. I’m here to help and advise you with it all. In todays market it’s more important than ever to have someone with my special brand of customer service who has experience in the bidding wars and can help you stand out in this competitive market.
Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com sooner than later and let’s see how we can make your residential real estate dreams come true.
HOUSING INVENTORY IS AT LOWEST IN TWO DECADES
Rismedia.com, 7.4.17, 8.10.17
Housing inventory is officially on its longest downward stretch in two decades with eleven percent less homes on the market year-over-year in June, according to the latest data from realtor.com.
According to that data, sixty-three percent of homeowners surveyed recently say their current home meets their needs, with baby boomer homeowners especially unwilling to move—a problem for succeeding generations, who are missing out on the 33 million condos and single-family houses boomers currently own. And 85 percent of those boomers surveyed say they have no plans to list their home for sale in the next year. Sixty-five percent of Gen X homeowners and 52 percent of millennial homeowners echoed the same sentiment.
However, 35 percent of millennial homeowners surveyed have plans to list their home for sale in the next year and if their plans pan out, the housing market could gain a boost in entry-level stock.
Colorado Springs’ housing market remains HOT—and is holding at number 8 in the realtor.com “hotness index” with the median age of housing inventory at a low 33 days.
Again, what this means is that if you’ve considered listing your home, NOW is a great time. The only caveat is again—be prepared for a quick sale and know what your next move will be.
SURVEY SHOWS HOMEOWNERSHIP IS A SOUND INVESTMENT—IF YOU CAN AFFORD IT
Rismedia.com, 7.12.17
With home prices nationally at an all time high, many folks believe in the wealth-building potential of homeownership but are also struggling to reconcile the outcome with its cost, according to a new survey by NAR.
In fact, affordability was identified by respondents as one of their top five challenges, ahead of employment security. And 44 percent of them report the lack of affordable housing in their community as a “big” or “fairly big” issue.
Some of these concerns are based on the myth that a significant down payment is required, which is not as much the case in today’s lending environment. This is especially true for first time buyers, who are able to secure good rates with lower down payment and credit requirements than they imagine.
Despite the concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment and having the freedom to choose their neighborhood remain the top reasons to own a home, according to NAR President Bill Brown.
The 2017 Housing Pulse Survey results are shown below:
21st ANNUAL UCCS ECONOMIC FORUM IS SEPTEMBER 29
You will want to mark your calendars for the perennially sold out UCCS Economic Forum which will take place this year on Friday, September 29th at The Antlers Hotel.
The full agenda and early registration is now available by visiting: www.UCCSEconomicForum.com
HARRY’S THOUGHT OF THE DAY: (with thanks to Elliot Eisenberg, the Bowtie Economist)
“Domicile Dominion”
Among western industrialized nations, Singapore’s homeownership rate is tops; 90.8%, Norway follows at 82.8%, then Iceland at 77.8%, Italy at 72.9%, Finland at 72.7%, Luxembourg at 72.5%, Belgium at 71.3%, Sweden at 70.6%, Ireland at 68.6%, Netherlands at 67.8%, Canada at 67.6%, Israel at 67.3%, Australia at 67%, France at 65%, New Zealand at 64.8% and the USA in 16th spot at 64.5%. Including all nations, the US rates 41st.
