January 7, 2013

A Current Look at the Colorado Springs Residential real estate Market

HAPPY NEW YEAR

I hope this first eNewsletter of the year finds you and your family happy, healthy and ready to begin a brand new year.  I’ve always found it somewhat exciting to start all over and see what the New Year will bring and I hope it brings you and yours everything you wish and work hard for.  With all the new regulations and a new congress, we never know what’s in store for the real estate market, but most of our sources indicate that 2013 will continue the upward trend that started mid 2012 and that’s great news for us all.

2012 PROVED TO BE A PHENOMENAL YEAR FOR HOME MARKET VALUE GAINS

December, together with the entire year of 2012, has seen the best home market increases in  many years.

  •     702 homes sold during the holiday month was 7.8% better than 1 year ago
  •     Average sales price was $243,180--15.4% higher than $210,688 one year ago
  •     Median sales price was $209,700--13.4% higher than $185,000 one year ago
  •     Single family listings were down to 2933 which is a 10.7% decrease in current inventory


So, depending on whether you consider average or median sales price, our community has gained between 13.4% -- 15.4% in home values.

Home ownership is where you might consider putting to use that extra "money in the bank" or instead of playing the stock market.  What are you currently getting for that?  Not 13.4%--15.4% I would think.

Click here to see the full report containing all the general statistics as well as comparisons of your current local home area and all the areas we serve.  There are reports on all neighborhoods in the Pikes Peak area.

By using this information on behalf of our clients, we find they have far exceeded their expectations in terms of personal decisions in either buying or selling a home.

Furthermore, when this data is used for our buyers or sellers, we are able to get a more advantageous price and terms…thus saving our clients money and shortening the time to closing.  It’s a big win all around.

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).

HOW THE “FISCAL CLIFF” BILL AFFECTS real estate

As I’m sure you are aware, on January 1, 2013 the Senate and House passed H.R. 8, legislations to avert the “fiscal cliff” and the bill was signed by President Obama on January 2, 2013.

We received a summary of real estate related provisions in the bill from NAR:

real estate Tax Extenders

  •     Mortgage Cancellation Relief is extended for one year to January 1, 2014
  •     Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
  •     Leasehold Improvements:  the 15 year straight-line cost recovery for qualified leasehold improvements for commercial properties is extended through 2013 and made retroactive to cover 2012
  •     Energy Efficiency Tax Credit:  the 10% tax credit (up to $500) for homeowners for energy efficiency improvements to existing homes is extended through 2013 and made retroactive to cover 2012.


Capital Gains

Capital Gains rate stays at 15% for the top rate of $400,000 individual and $450,000 joint return.  After that, any gains above those amounts will be taxed at 20%,  The 250/500k exclusion for sale of principle residence remains in place.

Estate Tax

The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax.  After that, the rate will be 40 percent, up from 35 percent.  The exemption amounts are indexed for inflation.

UPBEAT HOUSING FORECAST FOR 2013

As mentioned earlier, the last few weeks has brought a lot of good news for homeowners or potential homeowners.  Most real estate publications have written very upbeat stories about the future of housing in 2013.  There have been many articles and sources, but they all seem to agree on this, which is good news for us all.

We have been, and are continuing to experience a growing demand in residential real estate and a continual shrinking supply, which is creating a strong housing market.  Yes, “the tide has changed”.

Personal consumer confidence is providing motivation for people to hop off the fence and buy now, especially here in the Pikes Peak region where things have been moving quickly for some time.

The Wall Street Journal has predicted “home prices are on track to notch their first yearly gain since 2006, the strongest performance since the housing bust and a development that could accelerate the real estate rebound even as the broader economy stutters”.

Realtor Mag has questioned whether young adults are missing out on big housing opportunities.  This is important to note because with low mortgage rates and fallen home values, first time home buyers—particularly the younger generation—should be giving serious consideration to finding ways to get into the real estate market.

Furthermore, The Wall Street Journal reports that tenants are feeling the pinch of rising rents.  According to the Journal, "record-low mortgage rates mean that homeowners have a smaller financial burden for their residences than at any time since the early 1980’s”.  However, rising rents leave many tenants with less money to spend on other things.  Factors that have pushed up rents include the short supply of rental houses and a growing demand due to several years of foreclosures and population growth.    

With rising rents and short supply of available housing, now is the best time to consider a home purchase, either for you or for investment purposes.  If you or someone you know is in this position, have them give me a call at 598.3200 and let’s see if there is some way we can help these renters become homeowners.

Zillow announced at year-end that “home prices will rise 3.1% into the new year”.  They also indicated that home prices were expected to increase 4.6% for 2012 which is up from their former forecast of 2.4% and that these prices are projected to rise by more than 3% annually through 2017.

The Gazette reported on December 21, 2012 that the “housing market is the strongest in five years”.  The article indicated that Sales are up 14.5% from a year ago, although they remain below the 5.5 million that are consistent with a healthy market.  However, they said the NAR report remains encouraging and that the “positive momentum established in the housing market during 2012 appears likely to continue into 2013”.

Many buyers, especially first time buyers, are concerned about the rising home prices and the scarcity of homes on the market.  This is contributing to a lot of people planning to buy in order to get in front of rising prices.  Low inventory is also a factor here and will force some buyers to look in areas that they had not considered previously.

Again, we are here to help with any concerns you may have in any of these areas.  Just give us a call at 598.3200 and let’s see if we can find a solution for you.

WE’RE HERE TO SERVE ALL YOUR real estate NEEDS

Whether you’re considering buying, selling, investing or simply need help in making an informed decision about what fits your individual housing or investment needs, we’re here to help.  Just give us a call at 598.3200 or 800.677.MOVE (6683) today.

And if you have a friend, family member or co-worker 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.

JOKE OF THE WEEK

A man was sitting at a bar enjoying an after-work cocktail when an exceptionally gorgeous and sexy young woman entered.  She was so striking that the man could not take his eyes away from her.  The young woman noticed his overly attentive stare and walked directly towards him.  Before he could offer his apologies for being so rude, the young woman said to him, “I’ll do anything, absolutely anything, that you want me to do, no matter how kinky for $500 on one condition.”  Flabbergasted, the man asked what the condition was.  The young woman replied, “You have to tell me what you want me to do in just three words.”  The man considered her proposition for a moment withdrew his wallet from his pocket and slowly counted out five $100 bills, which he pressed into the young woman’s hand.  He looked into her eyes and slowly, meaningfully said, “Paint my house.”