HARRY'S WEEKLY UPDATE
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December 3, 2012
HARRY'S WEEKLY UPDATE A Current Look at the Colorado Springs Residential real estate Market
FANTASTIC NEWS -- COLORADO SPRINGS HOME VALUES ARE ON THE RISE
Another "Thank You" to The Gazette for interviewing me in the article "Home Values Are On The Rise In The Springs" published November 29, 2012. Here are direct parts of the story concerning Colorado Springs.
"A federal agency's report on single-family home prices is the latest sign the Colorado Springs values are on the rise--albeit at a slower rate than what other reports have shown.
Area home prices rose 1 percent in the third quarter when compared with the same period a year ago, according to a report this week by the Federal Housing Finance Agency.
Colorado Springs' third-quarter increase ranked it 87th among roughly 300 metro areas included in the report.
The Federal Housing Finance Agency's report on home prices uses a different measurement than other reports; it tracks prices of homes as they are sold, re-sold or refinanced. Some economists believe tracking same-home prices over time is a more accurate gauge of the health of a community's housing market.
While the agency's report shows only a 1 percent year-over-year increase in Springs prices, it never-the-less shows values are headed upward--the same direction as shown in other recent reports.
Figures compiled by the research arm of the Pikes Peak Association of Realtors shows Colorado Springs area home prices rose 7.2 percent in the third quarter when compared with the same period last year. The association's numbers include prices of homes sold in the third quarter by real estate agents, and compares them against a different group of homes sold in the same period the previous year.
Harry Salzman, owner of Salzman real estate Serves Ltd, in Colorado Springs, said he expects area prices to continue to rise.
Unlike other communities--such as Phoenix or Las Vegas--that saw unrealistic price increases several years ago, and then saw steep drops when the real estate market crashed, Springs prices have been consistent over time, Salzman said. Since local prices never fell too far, they are starting to climb back gradually as the market recovers, he said.
Prices could continue their ascent in 2013 if inflation--practically not existent the past few years--takes hold, Salzman said. And if mortgage rates also rise next year, homebuyers who are on the fence should consider making purchases now to avoid rising home prices and higher interest payments, he said."
Thank you, Rich Laden at the Gazette.
LIVING COSTS STILL BELOW U.S. AVERAGE, BUT LOCAL NUMBERS ARE CLIMBING The Gazette | Friday, November 30, 2012
"Although living costs in Colorado Springs remain below the national average, they have continued to climb closer to the average as housing and utility costs have moved higher in the past year.
Living costs in the Springs were 3.3 percent below the national average during the third quarter, the closest they have been in the national average in nearly eight years and up from 6.8 percent below the average a year ago, according to a quarterly survey by the Arlington, Va.-based Council for Community and Economic Research. The index for the Springs hit a 20-year low in mid-2011 in comparison with the national average and has moved closer to the average every quarter since then; local costs were 3.9 percent below the average in the second quarter."
We at Salzman real estate Services are usually asked about cost of living questions from people who are considering relocating to Colorado Springs. This information is very positive for people who wish to move here, as we currently have a lower cost of living. It is expected that in 2013 living costs will rise, due to an increase in inflation, but the market values of a house will also increase. We have read from various sources that inflation of 2013 is estimated to increase 4-6% at this time. Now is the time to buy a home.
If you have any questions about this data (or any real estate questions), please give us a call at 598.3200 or 800.677.6683 (MOVE).
Oh, by the way, since today is December 3, 2012, the current local November Sales and Listing Activities are not published yet. They will be available by next week's eNewsletter.
NATIONWIDE UPTURN IN RESIDENTIAL real estate Highlights published in the past week.
Now, Homes Drive Economy Wall Street Journal | Wednesday, November 28, 2012 "The U.S. housing market, which plunged the economy into recession five years ago and was a persistent drag on the recovery is now a key economic driver at a time when other sectors are slowing...But while those economic pillars weaken, an improving housing market is buoying consumers' spirits and give the economy its biggest lift since the real-estate boom...Rising home values make home-owners feel better about their finances--making them more likely to spend and, with interest rates low, more comfortable about taking on debt...'Housing's share belies its important to the economy,' said Joseph LaVorgna, chief U.S. economist at Deutsche Bank. 'The confidence effects are massive.'...Rising rents and a uptick in household formation have ignited demand, which, in turn, has pushed inventories of homes for sale to their lowest level in a least a decade. The upshot: More buyers are chasing fewer homes, pushing up prices."
2012: The 'Turn-Around Year For Housing' Daily real estate News | Wednesday, November 28, 2012 "More housing reports released this week show the housing recovery is gaining momentum...The Federal Housing Finance Agency also reported this week that housing prices are continuing to rise, increasing 1.1 percent from August to September and up 4 percent compared to last year. The FHFA price index only encompasses purchase prices of homes that have mortgages owned or guaranteed by Fannie Mae or Freddie Mac. Meanwhile, Standard & Poor's/Case-Shiller reported Tuesday that home prices were up 3.6 percent from a year ago."
BBVA: housing market Recovery Expected To Soar Through 2013 HousingWire | November 26, 2012 "A strong housing market gained momentum in November and is expected to continue through 2013, especially with low mortgage rate...Supply of the existing homes on the market is down to 5.4 months in October as a result of constrained supplies, which is limiting immediate sales. While median sales prices increase, it was not enough to offset the declines from the last three months."
Outlook For Housing Brightens, But Don't Look For A Boom Daily real estate News | Wednesday, November 21, 2012 "The housing recovery may not be a boom 'but it's recovering,' said Kenneth T. Rosen, chairman of the University of California, Berkeley, Fisher Center for real estate and Urban Economics. Several challenges face the housing market that will prevent a boom from taking shape, particularly from tight lending conditions that have prompted the recovery to be marked by slow growth rather than rapid growth, Rosen noted at a recent conference. 'The problem is not [that there is not] enough money, because the [Federal Reserve] has poured in a lot of money into the economy, ' Rosen said. 'We have too much money out there not too little money. The problem is loan availability.' He says that the strict credit score requirements have led to 40 percent of potential buyers unable to qualify for a loan nowadays. 'We have very strong job creation. Private sector job creation is very good, [though] a little show in summer,' Rosen said. 'Home sales are coming back. We have very low interest rates.'"
AND Colorado Springs is having a very good, turned around Residential Market in almost 2 years.
Once again, the most current local data is very positive....Take advantage of our Residential real estate Market to the benefit of you, your family your friends and BUY now. You can then "pat yourself on your shoulders" shortly after your closing.
Give us a call to discuss our local market and let up help you find the best deals available. Call at 598.3200 or 800.677.6683 (MOVE).
AND MORE POSITIVES...LOCAL SALES HAVE INCREASED
We have been mentioning to our Readers that Colorado Springs has been experiencing a lower number of local listings for many months. Also, local sales have increased in 14 or the past 16 months. Yes, very positive and better than lots of cities.
This is an industry "big deal" as many on-line real estate sources had stories regarding such a positive October residential market trend nationwide.
housing market Posts Gains - Sales of Previously Owned Homes Rose in October; Supply of Properties Shrinks Wall Street Journal | Tuesday, November 20, 2012 "Sales of previously owned homes were stronger than expected in October, putting them on track to hit their highest annual level since 2007..Prices are rising amid sharp declines in the number of homes listed for sale. Just 2.14 million homes were for sale at the end of October, down 22% from one year ago to the lowest level in a decade according to NAR estimates...Another Wildcard: Whether Congress avoids the 'fiscal cliff,' a series of tax increases and spending cuts set to kick in at year-end, which some real estate agents worry could undercut consumer confidence, potentially deferring some sales."
Existing-Home Sales Rise In October With Ongoing Price And Equity Gains RisMedia | November 19, 2012 "Sales of existing homes increased in October even with some regional impact from Hurricane Sandy, while home prices continued to rise due to lower levels of inventory supply, according to the National Association of REALTORS®. 'Rising home prices have already resulted in a $760 billion growth in home equity during the past year,' [Lawrence] Yun [NAR chief economist] says. 'Given that each percentage point of price appreciation translates into an additional $190 billion in home equity, we could see close to a $1 trillion gain next year.'...NAR President Gary Thomas says, 'Inflationary pressures are expected to build during the next two years. As a result, mortgage interest rates will also rise with inflation. Buyers who are currently held back by tight mortgage credit standards should work to improve their credit scores so they'll be able to qualify for a mortgage while conditions are still favorable.'"
NAR Existing Home Sales Increase 2.1% In October HousingWire | Monday, November 19, 2012 "Thanks to hurricane Sandy's impact on the East Coast and the increase in home prices due to a lack of inventory supply October saw an increase in existing-home sales...'Home sales continue to trend up and most October transaction were completed by the time the storm hit, but the growing demand with limited inventory is pressuring homes prices in much of the country,' said Lawrence Yun, chief economist with NAR....Homes continue to spend less time on the market, with the median listing now running 71 days, down from 96 days in October of 2011."
Strong Sales And Tight Inventory Boost Homes Prices Inman News | Monday, November 19, 2012 "A combination of rising sales and the lowest inventory in six years helped existing-home prices post annual gains for the eight month in a row in October, the National Association of Realtors said today."
WE'RE HERE TO SERVE ALL YOUR real estate NEEDS We’ve been keeping you up to date on a weekly basis concerning the Colorado Springs market and want to remind you that if you are looking….the time is NOW. There are going to be fewer choices in the coming months and prices are sure to be higher. And with mortgage rates at an all time low, you can’t afford to wait. If you are looking to buy, sell, trade up, or simply looking for investment property, give us at call at 598.3200 or 800.677.6683 (MOVE), and we will get right on it. And if you know of anyone who wishes to buy or sell local real estate, or who is planning a move to the Pikes Peak region, remember—I’ve got more than 40 years of experience in providing relocation and Real Estate services to clients throughout the world. I am uniquely qualified to assist them in making the best decision for their individual wants and needs and always take that into consideration when negotiating on their behalf. Have them contact me at Harry@HarrySalzman.com, and I will be happy to add them to our eNewsletter list, or better still, send me a note with their email address, and I will take care of it right away. FEATURED LISTING
Harry A. Salzman. CRS, CRP, CNE email: Harry@HarrySalzman.com
Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
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Harry Salzman, Salzman real estate Services, Ltd
538 Garden of the Gods Road, Colorado Springs CO 80907
719-598-3200 or Toll Free: 800-677-MOVE(6683)
Visit http://www.SalzmanRealEstateServices.com
