HEY, MAN ! EVERYBODY HAS TO BE SOMEWHERE
July 11, 2011
HARRY'S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET
YOU MAY BE ABLE TO AFFORD YOUR NEW HOME TODAY .BUT WILL YOU BE ABLE TO AFFORD IT TOMORROW?
The Wall Street Journal (July 26, 2011) warns that, as of October 1, 2011, many prospective homebuyers will be frozen out of the home market by the changes which will go into effect on that date.
On October 1, 2011, maximum loan limits for loans backed by FHA will decline in around 600 counties throughout the US and maximums for loans backed by Fannie Mae and Freddie Mac will decline in around 250 counties. In El Paso County, the maximum available FHA mortgage amount will be reduced from $325,000 to $271,050, a reduction of $53,950. (And, if history is our guide, conventional and VA loans will probably also reduce their maximums soon thereafter)
Some lenders are already warning borrowers that they will stop accepting applications for loans that exceed the new limits much sooner than October 1, to ensure the loans are funded before the cutoff date.
Homeowners whose mortgages are too big to qualify for a government-backed mortgage will probably have to seek a "jumbo loan" which often carries a higher interest rate as well as a higher down payment, sometimes more than 20%
To make matters worse for prospective Home Buyers, there are also widespread rumors that FHA down payment requirements will soon be increased from 3.5% to 5%.
And, if that's not bad enough, credit requirements are tightening.
The result of all of these changes will be that, after October 1, 2011, many prospective homeowners will no longer be eligible for FHA loans and will have to settle for renting, for the foreseeable future.
All of these changes reflect the fact that the government is getting out of the housing market, where it currently stands behind more than nine out of ten new mortgages.
If you have been waiting for the "perfect time" to buy your new home, these new regulations might serve as a warning that you had better make your move now.
Call us to discuss it at 598-3200 or 800-677 MOVE (6683).
HEY, MAN, EVERBODY HAS TO BE SOMEWHERE !!
That's the punch line to an old joke, but it also applies to our present rental market. Every family that has been foreclosed on, or has been forced to short-sell their home, has to be somewhere. So, not by choice, they have become "New Renters".
Unfortunately, these "New Renters" can't afford the down payment on another home, their credit is bad and the new, tighter regulations that are coming to us in October make it even less likely they will be able to buy another home in the near future.
Their plight explains why local vacancy rates are so low and why more and more Investors are buying rental properties.
If you would like to discuss what investment property can do for your future, now is the time to call us. Call 598-3200 or 800-677 MOVE (6683).
FORBES PUTS COLORADO SPRINGS IN THE TOP 30 CITIES FOR BUSINESS
Every year, Forbes measures the top 200 U.S. cities for their list of "Best Places for Business and Careers". This year, Colorado Springs comes in at #30, beating out such cities as Albuquerque, Atlanta, New York, and Indianapolis.
This survey was taken before our new mayor and city council kicked off their aggressive push for new businesses, so we are expecting to be even higher on next year's list.
For a complete list of the top cities, click here.
FIRST CHAMBER LUNCHEON WITH OUR NEW MAYOR IS A RECORDBREAKER
On Thursday, June 30th, the Colorado Springs Chamber of Commerce held their annual State of the City Luncheon. This marked the first time that the luncheon was attended by our newly-elected Mayor, Steve Bach.
There were a record number of Chamber members in attendance which reflected the widespread enthusiasm expressed by everyone in attendance. The Mayor commented upon the fact that he is constantly receiving calls and emails from every segment of our population, offering to help him with whatever is necessary to stimulate new jobs for our city. He pledged to work with the Chamber and the Economic Development Council to attract new businesses and jobs to our community.
The mood of the meeting was very upbeat and the city council members in attendance echoed that positive attitude. As Councilmember Brandy Williams stated, "I am most proud of the exciting collaboration between the city, the county, the mayor, the Chamber the community and others".
To sum up the meeting, it looks like there are some great years ahead for our city.
MORE INTERESTING FACTS FROM "ENGAGE -COLORADO SPRINGS"
Here are some more good reasons for living in Colorado Springs:
The national cost of living index is 100, but the cost of living index in Colorado Springs is 92.
Source: C2ER-COLI 1st Quarter 2011
Business Climate taxes:
MN 9.8%
CA 8.84%
OR 7.6%
ID 7.6%
NM 7.6%
NY 7.1%
AZ 6.9%
UT 5%
CO 4.630%
Source: Federal Tax Administrators Internet, January 2011
*Note: Engage is a supplement to the Colorado Springs Business Journal and is available from CSBJ. (719) 634-5905. www.csbj.com
OUR LOCAL STATISTICS CAN HELP YOU MAKE YOUR PURCHASING DECISION
Every week, we publish the PPAR statistics which cover our local real estate market. These statistics can assist you in analyzing our market by presenting a huge number of vital facts, such as listing and selling prices in each of our local neighborhoods. As of June 30, 2011, for example, these stats show that:
- There were 872 home sales in the Pikes Peak region. That's the highest number of homes sold since June, 2010, when the federal tax credit was still available.
- The average sales price in June, 2011, was @215,741, up 1% from the previous month, however, it was down from $237,318 last June, before the tax credit expired.
- The "average days on the market" is now 94 (Sellers, take note).
- Overall, the average percentage of selling price to listing price in June was 97.6%, which indicates that Sellers are now pricing their home more realistically than they did in past years.
CLICK HERE to see the complete June PPAR report. Then, if you would like to discuss these figures in more detail, please give us a call.
Note that right now, there are great opportunities to build your investment portfolio, but the window of opportunity will not last forever.
Call us at 598-3200 or 800-677 MOVE (6683).
And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.
Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.
Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, please contact us.
JOKE OF THE WEEK
Top Ten Things You Wouldn't Know Without Movies
- It is always possible to park directly outside any building you are visiting.
- A detective can only solve a case after he has been suspended from duty.
- If you decide to start dancing in the street, everyone you bump into will know all the steps
- Most laptop computers are powerful enough to override the communication systems of any invading alien civilization.
- It does not matter if you are heavily outnumbered in a fight involving martial arts - your enemies will wait patiently to attack you one by one by dancing around in a threatening manner until you have knocked out their predecessors.
- No one involved in a car chase, hijacking, explosion, volcanic eruption or alien invasion will ever go into shock.
- When they are alone, all foreigners prefer to speak English to each other.
- You can always find a chainsaw when you need one.
- Any lock can be picked by a credit card or a paper clip in seconds, unless it's the door to a burning building with a child trapped inside.
- Television news bulletins usually contain a story that affects you personally at that precise moment you turn the television on.
