HARRY'S BI-WEEKLY UPDATE 9.5.17
September 5, 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.
LOTS TO PONDER OVER LABOR DAY WEEKEND
I hope everyone had a safe and happy holiday Weekend. I’ve got lots of great news to share but just wanted to take a minute to mention events of this past week.
Watching Hurricane Harvey wreck havoc on the Texas coast was just heartbreaking, as are the fires all over the western part of the country. So many people have been displaced and it will be a very long time before these areas see any sense of normalcy.
Having lived through several devastating fires right here in Colorado Springs only a few years ago, I can truly emphasize with those who are suffering at this time. As with our fires, it is heartwarming to see first responders and so many others from all over the country jumping in to do whatever they can to help. Tragedies like this tend to bring out the very best in the American people, and at times, the worst. Price gouging and theft only make it harder on those affected to survive the day to day of their life at the moment.
Fortunately there are far more enlightening stories, such as the help of the Cajun Navy from Louisiana and others who risk their own lives to save others. My thoughts and prayers continue to be with the people of Texas and those who are still threatened by the fires in other parts of the country.
“INVESTOR SNAPSHOT” REINFORCES MY BELIEF IN THE VALUE OF HOMEOWNERSHIP
PPAR, 8.17
As you know by now, I not only sell Residential real estate, I also am an “Investor” and have always put my money where my mouth is, so to speak. Having been an Investment Banker in my earlier life, I have always followed the financial markets. Time and again, investing in real estate has consistently provided a better return over stocks and bonds in the long haul.
The following “Investor Snapshot” recently published by the Pikes Peak Association of Realtors (PPAR) illustrates the “Active Listings”, “Average Sales Price” and “Median Sales Price” of both Single Family/Patio Homes and Condo/Townhomes for the past 20 years. This is published once each year in August.
To save you time—I did the math!! Over a 20-year period for Single Family/Patio Homes, there was an average annual increase of 6.11% in the Average Sales Price and 7.18% for the Median Sales Price!
For Condo/Townhomes, there was an average annual increase over 20 years of 5.36% for the Average Sales Price and 6.63% for the Median Sales Price!
A point worth noting is that the period between July 2016 to July 2017 had the least number of closings per year for the past 20 years.
I don’t know about you, but I can’t think of many, if any, other investments that can provide that consistent rate of return. This chart most certainly demonstrates what I’ve been talking about for years. If you have any questions, please give me a call.
AND NOW FOR SOME STATISTICS…
Homes are selling at 100.4% of listing price and a VERY LOW average of 23 days on the market. It’s still unbelievable and continues to put a lot of pressure on both buyers and sellers in terms of decision-making. And I’m afraid that pressure isn’t going to subside any time soon.
Consider this: Two new studies have concluded that Colorado Springs continues to have one of the nation’s strongest housing markets.
As I mentioned last issue, WalletHub, a personal finance website, ranked our city as having the 19th best housing market out of 300 cities. And among 62 cities with populations of 300,000 or more, the Springs came in at number 5. In a similar study last year, the Springs’ housing market ranked number 28 in the nation and number 7 among cities over 300,000.
In a second study released last week, ATTOM Data Solutions, a California real estate company, listed Colorado Springs as Number 1 out of 122 metro areas as a place where homes are likely to sell—either to newcomers or to trade-up buyers. ATTOM’s first such index was published in June and the Springs also ranked number 1 in that study.
What does this mean to us? Well, it certainly is great that Colorado Springs is finally getting the recognition it so richly deserves, but it isn’t going to make things easy when it comes to buying a home—either for the first time or for those wanting to sell and trade up.
Another reminder—if you are planning to sell your home, you need to know where you are planning to go next because the short turnaround times don’t give you a lot of leeway to decide after the sale. It’s best to find your next home prior to listing your present one at this time.
The hard reality today is if you are buying, you need to know in advance exactly what you want because most often you don’t get the luxury of “thinking about it” for even a few hours. If you don’t make an offer—one that’s going to get noticed—someone else will.
As much as I hate for my clients to face disappointment per a possibility of multiple offers, it’s becoming a regular thing. That’s why you need to keep an open mind to look at properties in areas where you might have not considered in order to find what you want, need and can afford. Even when it comes to purchasing a newly constructed home, I’m finding that lots are going quickly so making an informed decision is essential no matter what you are seeking.
That being said, there are still homes available in most neighborhoods and in most price ranges. If you are in the market—either as a first-time buyer, as a trade-up buyer or for investment purposes, please give me a call sooner than later. I can be reached at 593.1000 or by email at Harry@HarrySalzman.com .
For more details on the local August 2017 PPAR reports, please see the next article.
SALES AND PRICES KEEP ESCALATING DESPITE LOW INVENTORY
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
You will see in the Cumulative Year to Date Summary that total sales numbers year-over-year in Single Family/Patio Homes are up 6.8% and up 13.3% for Condo/Townhomes.
Year-over-year, new listings are up 1.3% for Single Family/Patio Homes and up 5.0% for Condo/Townhomes. If you’ve been thinking of listing your home, it’s certainly going to get a lot more attention in this type of sales environment. Just remember that it’s likely to sell fast, so once again…you need to be prepared for that inevitability.
Here are some highlights from the August 2017 PPAR report. Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.
In comparing August 2017 to August 2016 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,716, Up 7.6%
- Number of Sales are 1,658, Up 14.2%
- Average Sales Price is $313,781, Up 6.1%
- Median Sales Price is $282,750, Up 6.7%
- Total Active Listings are 2,284, Down 14.1%
- Months Supply is 1.4%
Condo/Townhomes:
- New Listings are 246, Up 1.7%
- Number of Sales are 242, Down, 0.4%
- Average Sales Price is $200,017, Up 5.7%
- Median Sales Price is $189,250, Up 11.6%
- Total Active Listings are 140, Down 39.9%
- Monthly Supply is 0.6%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
August 2017 August 2016
Black Forest $551,500 $470,000
Briargate $360,000 $349,000
Central $219,250 $217,450
East $240,000 $220,000
Fountain Valley: $249,900 $232,500
Manitou Springs: $346,500 $326,500
Marksheffel: $294,950 $254,900
Northeast: $280,000 $261,250
Northgate: $422,354 $438,800
Northwest: $375,000 $355,000
Old Colorado City: $258,500 $202,500
Powers: $274,450 $250,000
Southwest: $340,000 $299,500
Tri-Lakes: $474,900 $422,500
West: $280,000 $284,950
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
