August 31, 2015

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.

LOCAL MARKET UPDATE AND MONTHLY INDICATORS ARE UPBEAT AGAIN

Pikes Peak REALTORS Services Corp.,

I always like to share information with you, my readers, on a timely basis and give you absolute facts so that you can:

  • See what’s actually happening in Residential real estate in the Pikes Peak area, and your neighborhood in particular
  • Take time at your leisure to peruse the facts and understand what they mean to you personally
  • Take action, when appropriate, to create a housing plan for you and your family

I believe that actual facts and statistics give you the ability to make competent choices while allowing you as a buyer and seller to have a positive experience when making a personal housing decision. Sometimes the facts are “good”, occasionally not so good, but in either case, if you are prepared beforehand, hopefully you won’t be faced with situations you might not have expected. 

Being “realistic” is a primary requirement for the home buying and selling experience in my book.  False promises and suppositions only add to what is a somewhat stressful experience to begin with.  This is just another reason for making certain you have a knowledgeable, competent real estate Professional, such as myself, on your team when you are ready for a move.

A report from PPAR released on August 25th, providing data as of August 12th,  provides detailed information on housing activity for El Paso and Teller Counties for the month of July.

Such positive news deserves a second look and these reports go into greater detail than the “PPAR Monthly Statistics” for July that I shared several weeks ago.

The “Activity Snapshot” shows the one-year change:

  • Sold Listings for All Properties was up 13.8%
  • Median Sales Price for All Properties was up 4.2%
  • Active Listings on All Properties was down 33.6%.

This is continued great news for those who, despite low interest rates, couldn’t refinance or sell and trade up without bringing additional cash to closing.  Many people stayed in their homes and some were forced into short sales or foreclosures. 

With more equity, homeowners will have better options, such as the ability to sell their present home and have additional cash for a downpayment on a trade-up home. 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update

If you have any questions concerning the report, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com.

Please Note:  The “PPAR Monthly Statistics” for August will be published shortly and when received, I will send out a Special Edition of the eNewsletter so you can have them on a timely basis.

 

JOBS…JOBS…JOBS…EMPLOYMENT NEWS IS GOOD

UCCS 2nd Quarter Report, The Wall Street Journal, 8.26.15,The  Gazette, 8.27.15

The job market is looking up, especially in El Paso County where it was the strongest in the first quarter than it has been since the middle of the past decade, according to data posted last week on the Colorado Department of Labor and Employment’s website. 

Tatiana Bailey, director of the Southern Colorado Economic Forum said, “This is really encouraging.  We’ve been in the sluggish recovery for several years and now we are finally seeing some really positive job growth numbers.  It is reflecting the improvement we’ve seen in other indicators.”

According to a new report from the economists at the Congressional Budget Office, “more Americans who left the workforce temporarily or who stayed out because of weak job prospects will return in the coming years as demand for labor builds in the economy.”

“We’re actually finding people who are returning to the labor force a little bit faster than we would have anticipated,” said CBO director Keith Hall.  “So it makes us think that the cyclical impact on the labor force is bigger than we thought before.”

Ms. Bailey, through UCCS and the Southern Colorado Economic Forum, published economic statistics that show the “Big Picture” in Labor, Housing, Tourism and more for El Paso County.  To view all of the charts included in the 4-page report, please click here.

The chart depicting “Colorado Springs MSA Job Openings” is below:

                            

I was so happy to receive this particular information because of its implication for the Colorado Springs housing market in general.  More jobs equal more people moving here.  Move people moving here means a greater demand for housing.  And, a greater demand for housing means that present home values will continue their upward climb.  This will allow those looking to sell and trade up a better opportunity to do so.  Those looking for investment properties will find more folks looking to rent as they enter the job force.  And sellers will find more prospective buyers for their homes. 

All in all it’s a win-win for not only homeowners, but for all of Colorado Springs.  Happy days are here again in the local job market.

 

HOUSING AND CONSUMER CONFIDENCE ARE BRIGHT SPOTS IN CURRENT ECONOMY

The Wall Street Journal, 8.26.15

The recent turmoil in the stock market, instability in China and other nations, and concerns about the intent of the Federal Reserve to raise interest rates might have foretold worries for us all.  However, a steadily rising housing market and growing consumer confidence, along with nearly five years of steady job creation, suggests that the U.S. is resilient enough to weather all of this.

According to Joel Naroff, chief economist of Naroff Economic Advisors, “It’s hard to make the case that the stock market mess has anything to do with the U.S. economy as the data are all pointing to solid growth.” 

U. S. consumer confidence rose in August to its highest level since January, reflecting optimism about an improving labor market.  New-home sales picked up pace in July, rising 21% from a year earlier.  And homebuilder sentiment is at its highest level since November 2005.

“It’s sunshine and blue skies, notwithstanding what’s happening on Wall Street,” said Brian Johnson of Mattamy Group Corp., which is based in Canada and builds homes in five American states.  They sold 155 homes in the U.S. in July, doubling its year-earlier output, with an average price of $300,000.

He added, “There’s a lot of headline news going on in places like China, but the U.S. is a more internally focused economy than others in the world.

 

FANNIE MAE HELPING LOW-INCOME BORROWERS

The Wall Street Journal, 8.26.15

Making it easier for working-class and multigenerational households to get a mortgage is on the mind of Fannie Mae. 

The mortgage-finance company said last week that it intends to roll out a program this year that lets lenders include income from non-borrowers within a household, such as extended-family members, toward qualifying for a loan.

This move is intended to open up homeownership to that segment of the population that doesn’t fit the “typical” family structure, ones in which it is common for extended-family members to contribute towards the cost of housing.

The new program will be only open to low-income borrowers or those living in low-income or minority-dominated areas and will also in some cases let borrowers who don’t live in the home, such as parents, contribute income.  Families with boarders will also be allowed to count that rent toward qualifying. 

There are a number of critics of this program but it is a step towards helping those who might not have been able to obtain a mortgage in the past now qualify.

Over the past several years, Fannie, Freddie Mac and lenders have loosened some of the restrictions on down payment and credit-score requirements.  Earlier this year, for example, Fannie and Freddie reintroduced programs that allow down payments of as little as 3%, down from the previous 5%.  These are programs I’ve written about in several past eNewsletters. 

Bottom line?  It doesn’t matter what segment of the market you fall into, there can be a home and home mortgage that can fit your wants, needs and budget.  Just give me a call today and let’s see what we can do to help make your dreams a reality.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

 

HARRY’S JOKE OF THE DAY (maybe not such a joke?)