HARRY'S BI-WEEKLY UPDATE 9.26.19
September 26, 2019
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.
PUZZLED ABOUT RESIDENTIAL real estate? FORTUNATELY, YOU’VE GOT ME…
There’s been so much in the news concerning all facets of the residential real estate market that it can start to get confusing. Interest rates are dropping…should you refi? Or should you use that as an opportunity to sell and trade up or move to another neighborhood? Or is it time to look at investment property because home values are going up faster than the volatile stock and bond markets? Or possibly it’s a good idea to use a home purchase as a way to keep down student debt for your family members? Maybe new construction is the way to go?
How can one muddle through all of this and know what’s best for his or her individual needs, wants and budget?
Solution? It’s as simple as reaching out to ME. This is where my 47 plus years in the local real estate arena, along with my investment banking background, can become your greatest asset.
I’ve been through just about every cycle imaginable and know the “ins and outs” of what can and can’t work and it’s my pleasure to help you find the best solutions for YOU.
Yes, interest rates are down to historical lows and home prices locally are still climbing, although at a slower pace than in the past year. This is actually good news since things are starting to get back to a more manageable level in terms of home price increases. The lack of available listings helped raise prices and kept some from being able to find homes. We are starting to see a few more homes on the market as folks are considering a trade up or other type of move or investment.
Colorado Springs is faring better than most cities since we are continuing to make many of the “top 10” lists such as “Best Place to Live”, “Best Place for Small Business”, “Hottest real estate Market” and many others. A number of companies are choosing to relocate to here and with them come employees who need housing and more. All of this bodes well for those of us who are already here…except maybe for what WE consider “increased street traffic”—something Denver or another bigger city would consider a blessing!
Back to the housing puzzle. All of the things you might consider confusing are “just another day” for me. And I’m thrilled to be able to share my knowledge with you so you can make an informed decision one way or another.
No one knows how long the low rates will be around, as most economists predicted they’d be long gone by now. However, that doesn’t mean that what goes down quickly can’t also go up just as fast. It’s best to be prepared and start getting your answers as soon as possible.
If you, a family member or co-worker are sifting through all the options…NOW is the time to give me a call. I can be reached at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make all your residential real estate dreams come true. I can help you find answers for your particular needs, but you need to pick up your phone and call me first!
ASPIRING HOME BUYERS PROFILE
National Association of REALTORS,.2019
The National Association of REALTORS released a study of data that was collected throughout 2018 on a monthly basis as part of their Housing Opportunities and Market Experience report. It is an in depth examination of the consumer preferences of non-homeowners, defined as those that rent and those that live with someone else (such as family and friends) without paying rent.
Topics include if now is a good time to buy a home, the perception of homeownership as part of the American Dream, why non-owners do not own now and what would cause them to buy in the future.
I found this research interesting and wanted to share it with you. I have reproduced several of the charts below and you can click here to read the report in its entirety. A couple of highlights:
- Of the U.S. consumer households that were surveyed each month in 2018, 64 percent of respondents were homeowners, 27 percent were renters, and nine percent lived with someone else.
- Of the non-owners, 45 percent were 34 years old or under, 59 percent make an income of under $50,000, and 43 percent live in suburban areas.
- For both homeowners and non-homeowners alike, homeownership is strongly considered a part of the American Dream. For non-owners, roughly 75 percent reported that homeownership is part of their American Dream.
- For owners, nine in ten believe it is part of their American Dream.
I might add that interest rates in the beginning of 2018 were not as favorable as they they were later in the year so that could have played a part in some decisions made at that time.
I’ve found that in many cases those that thought they could not afford to purchase a home actually could not afford to NOT purchase a home. It’s all in figuring out the right way if at all possible. Just ask some of my very satisfied clients!
5 REASONS TO SELL THIS FALL
Keeping current matters, 9.2019
- Demand is Strong…According to the latest Buyer Traffic Report from the National Association of REALTORS, buyer demand remains strong throughout the majority of the country. These buyers are ready, willing and able to purchase homes right now, and more often than not are competing with each other to buy the same home! NOW is the time to take advantage of the buyer activity we are currently seeing in the market.
- There is Less Competition Now…Homes are in short supply…way less than what is needed for a normal market. This means that there are not enough homes for sale to satisfy the number of buyers.
Historically a homeowner would stay in his or her home for an average of six years. Since 2011 that number has hovered between nine and ten years. There are many who were unable to sell over the last few years due to negative equity situations, but as home values continue to appreciate, more and more will be given the freedom to sell and trade up. Don’t wait until more inventory comes on the market before you decide to sell.
- The Process Will Be Quicker…In today’s competitive environment, potential buyers have had to do all they can to stick out from the crowd, including getting pre-approved for their mortgage financing or paying all cash. This makes the entire selling process much easier and simpler, as buyers know exactly what they can afford before shopping for a home.
- There Will Never Be a Better Time to Move Up…If your next move is a to a premium or luxury home, now is the time to sell and move up. There is currently more inventory in the slightly higher price ranges so you will have more choices.
Another reason to act soon is that prices nationally are projected to appreciate by 5.2% over the next year, which means our prices will likely appreciate even more. If you’re moving to a higher-priced home, it will wind up costing you more in raw dollars if you wait.
- It’s Time to Move on with Your Life…Consider the reasons you are thinking of selling in the first place and decide whether it is worth waiting. Perhaps the time has come for you and your family to move on and start living the life you desire in the home of your dreams.
HOMEOWNERS HAVE NEVER BEEN RICHER
RealtorMag, 9.23.19
Nationally, homeowners with a mortgage have seen their equity rise by 4.8% year over year. The average homeowner has gained $4,900 in home equity between the second quarter of 2018 and the second quarter of this year, according to CoreLogic’s Home Equity Report.
“Borrower equity rose to an all-time high in the first half of 2019 and has more than doubled since the housing recovery started,” says Frank Nothaft, chief economist for CoreLogic. “Combined with low mortgage rates, this rise in home equity supports spending on home improvements and may help improve balance sheets of households who could take out home equity loans to consolidate their debt.”
Homeowners are getting richer and fewer are in a negative equity position. From the first quarter to the second quarter of this year, the total number of homes with a mortgage that were in negative equity dropped 7% to 2 million homes—or 3.8% of all homes with a mortgage.
Overall, the western part of the U.S. is seeing some of the strongest equity gains and as you will see on the map below, Colorado is one of the top 10 states with the highest average gain in equity.
So, once again…NOW is the time to put that equity to work for you. When you trade up, you’ll likely get more for your present home while taking advantage of the low interest rates on the new one. You might be surprised to find out that the net cost could be far less than you might imagine. Just give me a call and let’s see if this is something that can work for you and your family.
MORE PEOPLE FEEL POSITIVE ABOUT BUYING, SELLING
RealtorMag, 9.23.19
With the low mortgage rates fueling more favorable opinions on home buying, nearly two-thirds of Americans, or 63%, believe now is a good time to buy a home, according to the newly released Housing Opportunities and Market Experience Survey from the NAR.
Lawrence Yun, chief economist for NAR said, “I see no sign of the optimism about home buying fading” despite some concerns over the direction of the economy.
Millennials tended to be the most pessimistic about the direction of the economy while older consumers with higher incomes tended to be the most optimistic over the prospects of homebuying. The silent generation (those born between 1925 and 1945) were the most upbeat about buying at 75%, followed closely by older baby boomers (those born between 1946 and 1954) at 72% the study showed. Further, 72% of consumers with incomes of $100,000 felt now is a good time to buy compared to 54% of consumers with incomes under $50,000.
And once more, the West wins, with being the most likely to say now is a good time to sell at 81%.
According to The Wall Street Journal, August was the strongest month of sales for U.S. homes in nearly a year and a half. The article goes on the attribute this to renewed hope for market recovery. They also say that economic uncertainly may be holding some potential buyers back but for those that can afford it, rising rents that continue to break price records nationwide (as well as here in Colorado Springs) are starting to nudge some renters to consider homeownership more seriously.
Here are some charts to show a more detailed breakdown of the NAR survey:
REGISTER NOW FOR THE UPCOMING SOUTHERN COLORADO ECONOMIC FORUM
There’s still a little time to register for the always sold out and informative UCCS Economic Forum which is put on by the College of Business.
The Forum will be held on Thursday, October 10, from 1:30- 4:30 at the ENT Center for the Arts. This will be followed by a Networking Happy Hour.
The keynote address will be given by Alison Felix, Vice President & Executive, Kansas City Federal Reserve-Denver Branch.
To register and more information, please go to:
