HOW'S OUR LOCAL ECONOMY DOING? ....PRETTY GOOD, ACTUALLY
October 31, 2011
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET
HOW’S OUR LOCAL ECONOMY DOING? …..PRETTY GOOD, ACTUALLY
When comparing data from September 2011 with data from September 2010, The Gazette (Oct. 30, 2011) points out that seven out of eight indicators in our local economy look positive.
The “good news” is that:
- Initial claims for unemployment were down 9.4%
- Unemployment rate was down 8.6%
- Single-family home permits were up 53.1%
- New auto and truck registrations were up 10.5%
- Taxable retail sales were up 2%
- Hotel occupancy rate was up to 76.5%
- Foreclosure filings were down 20.4%
As always, the trouble spot is the employment picture, with wage and salary jobs down 0.8%. This troubled aspect of the economy seems to be a national phenomenon and explains why all of the candidates for office are emphasizing “Jobs, jobs, jobs”.
We are happy to see that our new Mayor and City Council are concentrating on attracting new businesses to our area, so that our employment picture improves.
BUILDER MAGAZINE SAYS COLORADO SPRINGS LOOKS GOOD
The Gazette, Oct. 30, 2011
Colorado Springs’ housing market will be among the country’s best next year, according to a national forecast by Builder Magazine. The Springs ranks #7 in Builder’s Top 20 list of healthiest markets for 2012.
Builder publishes the Top 20 list in conjunction with parent company Hanley Woods, a real estate media and information services firm. Its projections use data from Moody’s Economy.com, which focuses on jobs, price appreciation, population growth and other factors that drive housing.
Incentives Grow to Get Struggling Home Buyers Moving
Daily real estate News | Friday, October 21, 2011
With distressed properties accounting for 30 percent of existing-home sales, more Realtors are finding a growing part of their job is offering struggling home owners “cash for keys,” according to a recent article at MSNBC.com.
In the “Cash for Keys” program, home owners who are facing foreclosure are typically offered between $500 to $2,500 if they agree to move out within 30 days (and leave the place clean, too). The benefits of this program for the cash-strapped homeowner are:
- · It frees home owners from their mortgage obligations and provides them with some money for moving expenses
- · It helps avoid a ruined credit profile from a foreclosure.
The benefit to the lender is that it allows him to avoid the extra costs of an eviction.
The “Cash for Keys” program is expected to become a more mainstream option for handling short sales too, not just foreclosures. For example, Bank of America is piloting a program in Florida that will pay up to $20,000 to short sellers as well as forgive their loan deficiency.
Banks are looking at offering more incentives to short sales since their losses tend to be far less than a foreclosure. For example, foreclosure properties tend to sell for 40 percent below non-comparable non-distressed properties while short sales tend to sell for only 20 percent less.
“The more the lender’s inventory builds up, the more generous they tend to be with “Cash for Keys”, says Benjamin Barber, a senior sales specialist at Green River Capital LC in West Valley, Utah, in an interview with MSNBC.com.
Realtors are often the ones who deliver the “cash for keys” offer to home owners. And as more real estate professionals continue to find foreclosures and short sales as an increasing part of their job description, they’re even taking training classes on how to negotiate such situations with home owners and navigate these often-complex transactions.
About 21 percent of National Association of REALTORS® members now hold special certifications that help agents better handle distressed property — that’s up from 12 percent last year.
NEW Survey Reveals 5 Home Buying Myths
Daily real estate News | Friday, October 28, 2011
Overall, today’s home buyers tend to be fairly knowledgeable about the real estate market, but there are still a few points of confusion about the process. A new survey of 1,000 potential home buyers by Zillow finds five main areas of confusion:
- Appreciation: About 42 percent of home buyers believe home values will appreciate by 7 percent a year. Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year.
- 2. Mortgage insurance: 41 percent of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their downpayment. Reality: Buyers only need to purchase PMI if their downpayment is less than 20 percent of the home’s purchase price.
- 3. Appraisals: 56 percent of the buyers said the purpose of the appraisal was to determine if a home was in good condition. Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value.
- 4. Home owner’s insurance: 37 percent of home buyers said that buying home owner’s insurance is optional. Reality: Lenders require homebuyers to purchase homeowner’s insurance.
- 5. Ownership: 47 percent of home buyers said a prospective buyer owns a home after the purchase contract is signed. Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership.
Let us help guide you through the home-buying process by explaining the realities you might not be aware of as you look for your new home. Call us at 598-3200,or, (800) 677-MOVE (6683).
and, as long as we are talking about real estate myths, here are
7 COMMONLY HELD myths about Home Inspections
Source: American Society of Home Inspectors, Des Plaines, Ill.
An estimated 70 percent of all homes sold annually receive a home inspection. Still, confusion persists over what the process does, and doesn’t, involve. Here are seven common misconceptions:
- 1. Licensing ensures a professional home inspection. Wrong. Currently, 29 states have some form of inspector regulation—but state requirements vary widely. Verifying the inspector’s credentials, experience, and adherence to professional standards is still important, even in a state with licensing.
- 2. A home inspection is designed to identify problems that might be the basis for renegotiating the purchase offer. Wrong. The inspector’s service is primarily one of education, providing buyers with a better understanding of the physical condition of the home and giving them the knowledge to make smart decisions. The inspector’s observations or recommendations might help to dispel buyer anxieties and provide useful home repair and maintenance suggestions. When areas of concern or problems are identified, the inspector should play no role in fixing them or addressing them with the seller.
- 3. Home inspections are needed for existing homes only. Wrong. New construction is often the most in need of a thorough inspection. Many professionals offer “phase inspections” in which the property can be checked at various stages of completion.
- 4. Having an appraisal, code inspection, and termite or other hazard inspection eliminates the need for a separate home inspection. Wrong. While each of these inspections is valuable, these should never be used in place of a complete home inspection. Similarly, a home inspection should never take the place of other prescribed inspections.
- 5. Home inspections are for the buyer. It’s true, most inspections are conducted on buyers’ behalf during the purchase process, but prelisting inspections for sellers also can be beneficial. Prelisting inspections can identify areas of concern to be addressed before the sale and can assist in disclosure matters. The American Society of Home Inspectors recommends that a home be inspected every 10 years, regardless of whether a sale is taking place.
- 6. Home inspectors are too nitpicky and will identify every little problem in the home. A professional home inspection is an objective examination of the condition of the visible and accessible components of a home on the day of the inspection. Professional home inspectors don’t point out every small problem or defect in a home. Minor or cosmetic flaws, for example, should be apparent without the aid of a professional.
- 7. All home inspector certification and credentialing programs are equal. Some organizations for inspectors offer credentials in return for nothing more than an annual payment, while others are new or exist mainly online. When selecting a home inspector, look at the background, history, and reputation of the person’s certifying organization.
This is another area in which we can assist you. Give us a call 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 39 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 podcast for this month …
LATEST SALES AND LISTING STATISTICS
Click here to see the latest Sales and Listing statistics for the Pikes peak area, as published by the Pikes Peak Association of Realtors.
JOKE OF THE WEEK
We came across this joke on the Internet, and the timing seemed right !
The government is recommending another ‘Economic Stimulus’ aimed at pumping money into the economy, to help pull us out of the recession (which officially ended several months ago, in case you hadn’t noticed).
This is indeed a very interesting idea, but many people don’t understand how to best spend their stimulus money in order to help the economy, so, we’ll explain it by using a Q & A format:
Q. What is an 'Economic Stimulus' payment ?
A. It is money that the federal government will send to taxpayers.
Q.. Where will the government get this money ?
A. From taxpayers.
Q. So the government is giving me back my own money ?
A. Only a smidgen of it.
Q. What is the purpose of this payment ?
A. The plan is for you to use the money to purchase a high-definition TV set, thus stimulating the economy.
Q. But isn't that stimulating the economy of China ?
A. Shut up.
Below is some helpful advice on how to best help the U.S. economy by spending your stimulus check wisely:
* If you spend the stimulus money at Wal-Mart, the money will go to China or Sri Lanka .
* If you spend it on gasoline, your money will go to the Arabs.
* If you purchase a computer, it will go to India, Taiwan or China .
* If you purchase fruit and vegetables, it will go to Mexico, Honduras and Guatemala .
* If you buy an efficient car, it will go to Japan, Korea or Finland .
* If you purchase useless stuff, it will go to Taiwan .
* If you pay your credit cards off, or buy stock, it will go to management bonuses and they will hide it offshore.
Instead, if you want to keep the money in America, you should consider:
1) Spending it at a yard sale, or
2) Going to a ball game, or
3) Spending it on prostitutes, or
4) Beer, or
5) A tattoo.
(These are the only American businesses still operating in the U.S. )
Conclusion:
When you receive your stimulus money, the most patriotic thing you can do with it is, go to a ball game and drink beer all day with a tattooed prostitute that you met at a yard sale. !
No need to thank us, we’re just glad we could be of help.
