HARRY'S BI-WEEKLY UPDATE 9.6.16
September 6, 2016
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.
THE BUCK STOPS HERE…LITERALLY
This photo of four bucks enjoying their morning rest was taken in front of my home in Colorado Springs. I never get tired of watching and in doing so was reminded of the sign Harry Truman kept on his desk in the Oval Office when he was President—The Buck Stops Here.
My personal philosophy is exactly the same. When it comes to my clients, I feel a deep sense of responsibility that their transactions go the way they should. When things get bogged down, as they sometimes will due to obstacles beyond my control, I go out of my way to get things moving again. Today’s mortgage lending environment with all the new regulations can make things move much slower than in the past. Also, our local housing market is moving so quickly that it is crucial to make your first offer one that can’t be overlooked. Having an experienced, knowledgeable Realtor® like myself in your corner can make all the difference in whether or not a deal can go through—and with the least amount of hassle for my client.
If you or someone you know hasn’t yet experienced my personal brand of extraordinary customer service, what are you waiting for? As you will see in the following article, Colorado Springs is experiencing record-breaking home values and sales. And mortgage rates are remaining historically low so the timing couldn’t be better if you are in the market to sell and trade up, purchase for the first time or simply looking for investment property.
Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see what we can do together to make any and all of your Residential real estate dreams come true.
ONCE AGAIN—EXCELLENT NEWS FOR LOCAL HOMEOWNERS
August PPAR statistics continue to show the Pikes Peak housing market performing extraordinarily well and now we have 25 consequent months of increased local Residential real estate sales.
Both the August Average and Median Sales Prices were record setting. Prices have reached an all-time high locally and are producing a record high rate of return to homeowners.
Homes are continuing to sell at a whopping 99.5% of listing price. Not only that—the average days on the market is just 28. This is fabulous news for both buyers and sellers.
As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes are up 5.0 over August 2015 and Condo/Townhome sales are up 32.1% over the same time period.
The Monthly Summary shows that total active listings are down 21.3% for Single Family/Patio Homes and 21.0% for Condo/Townhomes compared to a year ago. This downward trend is continuing to be great for sellers. While new listings are slightly up, it continues to be more difficult, but certainly not impossible, for current buyers to find a new home. If you have been thinking of listing your home, now is the time. However, be prepared for a quick sale, which means you need to have an idea of what and where your next home might be located.
Median Sales Prices are up year over year 9.7% and 13.5% respectively for Single Family/Patio Homes and Condo/Townhomes—more wonderful news for both buyers and sellers.
Last week, the social media company Wallethub ranked Colorado Springs the 28th best real estate market among 300 metro areas nationwide. And, when the field of metro areas is narrowed to the 62 cities with 300,000+ population, we rank 7th.
Building permits locally are set for their best year in more than a decade and are running 25% ahead of the same time last year.
With all of this activity, I’m on ”overload” as many renters now can qualify and want to move to ownership, investors are picking up properties at a pace I’ve not seen before, and with interest rates continuing to remain low there are lots of folks who are choosing to sell and trade up. I’ve been enjoying the privilege of working not only with former clients, but also with their children and grandchildren. I suppose when you’ve been in the business for almost 45 years this is going to happen, but I’m still amazed that these “kids” are now grown up!
We’re still experiencing some problems with longer lending approval times, bidding wars, delays in getting home appraisals and fewer homes available in the $300,000 and under range. I cannot emphasize enough the importance of having a “preapproval” letter from a reputable lender BEFORE you begin the home search. I’ve had several offers rejected outright when there was no preapproval letter because there were other offers on the table that had that requirement settled. In these cases, the potential lender kept telling my clients that the letter was forthcoming, but “forthcoming” is not the same as having it on hand. “A bird in the hand is worth two in the bush” as the saying goes. Corny, but true!
Let me give you another reminder of how very important in today’s market it is to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.
Once again…if you’re considering a move or looking for investment property, give me a call sooner than later and let’s get the ball rolling.
AUGUST 2016 WAS THE 25TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the August 2016 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 2016 to August 2015 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,595, Up 2.4%
- Number of Sales are 1,452, Up 5.0%
- Average Sales Price is $295,877, Up 8.2%
- Median Sales Price is $265,000 Up 9.7%
- Total Active Listings are 2,660, Down 21.3%
Condo/Townhomes:
- New Listings are 242, Up 12.6%
- Number of Sales are 243, Up 32.1%
- Average Sales Price is $189,190, Up 14.5%
- Median Sales Price is $169,600, Up 13.5%
- Total Active Listings are 233, Down 21.0%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
August 2016 August 2015
Black Forest $470,000 $472,500
Briargate $349,000 $316,300
Central $217,450 $193,000
East $220,000 $198,475
Fountain Valley: $232,500 $220,000
Manitou Springs: $326,500 $316,500
Marksheffel: $254,900 $254,900
Northeast: $261,250 $220,000
Northgate: $438,800 $395,000
Northwest: $355,000 $350,450
Old Colorado City: $202,500 $183,900
Powers: $250,000 $231,000
Southwest: $299,500 $333,500
Tri-Lakes: $422,500 $377,000
West: $284,950 $243,900
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
4 SIGNS YOU ARE BEING TOO PICKY TO BUY A HOME
Realtor.com, 8.17.16
Everyone wants the “perfect” home, but just like finding the “perfect “partner—let’s get realistic here. Total perfection is a very unrealistic goal and one that can prevent you from finding the home that can be turned into one that eventually not only meets, but exceeds what your wants, needs and budget can afford. I’m not telling you to settle—I’m simply saying that if you are too detailed oriented, you might overlook one that suits you now or could with a little modification.
- Sign No. 1: You know exactly what you want—to a fault. It makes perfect sense to house hunt with the basic criteria in mind (school district, quiet neighborhood, open kitchen floor plan). But if your wish list is airtight and hermetically sealed (i.e. you pass up a home because your furniture doesn’t fit in the bedroom), a great home could slip right off your radar. Oftentimes folks think they know what kind of home they want before they start looking, but they usually don’t. Flexibility is your friend in the house-hunting scenario.
- Sign No. 2: You’re searching for your “forever home”—even if it’s your first. They’re called “starter homes” for a reason. It’s highly unlikely you will stay there forever. In order to get into a first home, it’s often smaller than you may eventually want or too far from your place of work. If it’s within your price range and satisfies some basics on your checklist—maybe you shouldn’t pass it up. According to Bank of America’s Homebuyer Insights Report, many folks are passing over a starter home and waiting until they can afford a “forever” home. They don’t consider that they could be building equity in their “starter home”. Don’t let your fantasies of “forever” impair your judgment for the home you pick here and now.
- Sign No. 3: You think home improvement reality shows are actually realistic. In television reality shows such as “House Crashers” and “Property Brothers”, homes are transformed into eye-popping showpieces in a matter of days. In reality, such renovations are costly, complex, often nightmarish and always time-consuming. With details glossed over onscreen, people’s real-life expectations are raised unfairly. Don’t buy a new home with the idea that it can be turned into your “dream” home overnight or have ideas that aren’t reasonable for the property or the neighborhood.
- Sign 4: Your real estate agent’s getting exasperated. That is certainly not the case when you’re working with me, but it can happen. I am acutely aware that you are about to make one of the most important financial decisions of your life and I want you to be happy with your purchase. You need to make your own discoveries and decisions and I understand if a home isn’t what you thought it might be then it’s time to look further. I also understand that at times, the home search will convince you that you aren’t ready to make a move just yet. I know when you’re ready, you call me and we can start again. Oftentimes, the root of pickiness is fear, so if you’ve found a fantastic home and are nitpicking over the kitchen tile, you might ask yourself if you’re truly ready to buy.
HOME OWNERSHIP STILL MATTERS
Realtormag.com, 8.22.16
The homeownership rate may be at a 51 year low, but that doesn’t mean the dream of homeownership is dying according to Lawrence Yun, NAR’s Chief Economist in a recent Forbes column.
Yun says that the drop in the homeownership rate (to 62.9% in the second quarter 2016) does not mean that Americans aren’t interested in buying a house. Actually, many recent surveys indicate overwhelmingly that Americans have a strong desire for homeownership. NAR’s Housing Opportunity and Market Experience survey revealed that 87 percent of consumers believe homeownership is their dream.
While many Americans say they would like to own, oftentimes the timing isn’t right. They may not have enough saved for a down payment or can’t qualify for a mortgage loan with the current tight underwriting standards.
Over the long haul, homeownership tends to provide wealth accumulation for owners, and what’s more—it’s good for the economy says Yun. With most homeowners typically selling their home and moving to a new one in a 7-to-10 year cycle, this can contribute to economic growth and job creation because each home sale tends to have a multiplier effect in boosting home remodeling, furniture businesses, mortgage origination, moving companies, and even restaurants. According to NAR calculations, one new job is supported from every two home sales.
“There are multiple positive benefits of ownership to individuals and society,” Yun wrote. “However, it has to be sustainable. Homeowners must understand the responsibility of ownership and take on a mortgage that is manageable and overstretch their budget. At the same time, there should not be any unnecessary barriers to ownership. Widen mortgage access to those homeowners who are willing to stay within budget. Assure an adequate supply of homes at all price points to assure the future possibility of steadily moving up in society.”
I agree with Yun and have always believed in homeownership as a way to better your future—both financially and on a personal level. There are many actions in play now that are designed to make it easier for those first-time buyers who are short of cash for a down payment or have less than stellar credit. I will be happy to share what I know to help make the American Dream come true for someone you know who fits into this category. Just have them give me a call and I will do my best to help them on their road to ownership.
AND LAST, BUT CERTAINLY NOT LEAST….A REMINDER FOR THE 20th ANNUAL UCCS ECONOMIC FORUM SIGNUP
The 20th Annual UCCS Economic Forum will be held at the Broadmoor on Friday, October 14, 2016 and it’s sure to be another sold out event.
The new afternoon agenda includes remarks from both Mayor John Suthers and Governor John Hickenlooper as well as a keynote address from Jim Paulsen, Ph.D., Economist for Wells Fargo.
There will be a report on the economic conditions and outlook for the Pikes Peak Region by Tatiana Bailey, Ph.D., College of Business & Administration, UCCS.
A panel discussion entitled “Colorado Springs: Going for the Gold” will highlight the” best practices in economic development and how our region can capitalize on the current positive trajectory of our local economy”.
Following a brief question and answer session, there will be a “Networking Happy Hour” beginning at 4:30.
I would strongly suggest that you register early for this special event. You can detailed information and register online at: www.UCCSEconomicForum.com . I hope to see you there.
