April 2, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET


FORECLOSURE RATE IN COLORADO SPRINGS BETTER THAN REST OF STATE AND NATION
Colorado Springs Business Journal – March 27, 2012

The rate of foreclosure among all outstanding mortgages in Colorado Springs fell to 1.39 percent in January, according to a report from CoreLogic, a real estate market information and analysis firm. The rate is a decrease of 0.42 percent from January of 2011 when it was 1.81 percent.

Foreclosure activity in Colorado Springs is also significantly lower than the national average, where 3.6 percent of all outstanding mortgages go into foreclosure. Colorado Springs rate was also slightly below the Colorado average of 1.44 percent.

The city is also showing improvement among the percentage of mortgages 90 days or more delinquent. That rate fell from 4.44 percent in January, 2011 to 4.04 percent this January. While that rate is slightly higher than the state average, it’s well-below the national average of 7.24 percent.

The Gazette reports that foreclosures have fallen, in part, because the pool of homeowners falling into foreclosure – people who have lost jobs or had bought houses using non-traditional, risky mortgages – is dwindling.

This is good news for our local housing market and is an indication that local home prices will now start to rise. Sellers will be happy to hear that and will probably start re-listing their homes. Buyers should take note of all of these factors as they decide whether to buy now or continue to wait.

In fact, now is the best opportunity for buyers to make their move. Prices and mortgage rates are still very low, and the inevitable inflation that will soon affect home prices and rates has not kicked in yet.

Another factor that will trigger a rise in home prices is that many prospective buyers have been waiting for prices to stop falling, before they committed to buy. When all of these Mugwumps start looking to buy, prices will definitely rise even further.

Contact us to discuss the local market in more detail. Should you buy, rent, refinance, or list?? We can help you make the decision that will be best for you. Call us at 598-3200, or, 1-800-677-6683.


HAPPY DAYS ARE HERE AGAIN, ACCORDING TO 38 LEADING real estate EXPERTS

A new Urban Land Institute survey of 38 leading real estate economists and analysts from across the US projects broad improvements for the nation’s economy, real estate capital markets, real estate fundamentals and the housing industry through 2014.

The survey, conducted during late February and early March, is a consensus view and reflects the median forecast for 26 economic indicators, including property transactions, vacancy rates and rents, housing starts and home prices.

Some of the consensus predictions are:

• Rents are expected to increase for all property types, with 2012 apartment rent increases of 5%
• Housing starts will nearly double by 2014 and home prices will begin to rise, with prices increasing by 3.5% in 2014.

Lawrence Yun, chief economist for the National Association of Realtors, echoed the survey results. He stated, “The spring home buying season looks bright because of an elevated level of contract offers so far this year. If activity is sustained near present levels, existing home sales will see their best performance in five years. Based on all the factors in the current market, we’re expecting sales rising 7%-10% in 2012”.

The surveyed experts also predict a GDP growth of 2.5% this year, 3% in 2013 and 3.2% in 2014. They also predict a decrease in unemployment, down to 6.9% in 2014.

The down-side of these positive predictions is that the improving economy will likely lead to higher inflation and interest rates.

Freddie Mac reflected these trends by stating, “We can expect 30-year fixed-rate mortgages to gradually increase throughout the year to about 4.5%”.(March 29, 2012).

Frank Nothaft, Freddie Mac’s chief economist noted that “As if awakening from hibernation, housing starts and home sales have moved to a higher level of activity”.

Keep in mind, however, that if you wait another six months to buy your new home, both the price for the home and the mortgage rate will probably be higher than they are today.

Call us at 598-3200, or 1-800-677-6683.


BUYING A HOME? THE COST IS MORE IMPORTANT THAN THE PRICE
The KCM Crew, March 19, 2012

KCM is a respected source of in-depth information about the real estate market. They recently published a timely reminder for prospective buyers, advising them to consider the total cost of their home purchase, as opposed to merely the price of the house. We thought you would be interested in their comments:

“We have often advised buyers to look at the COST of purchasing a house more than the PRICE of the home. Obviously, price is part of the cost equation. The other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost. Recently, there are more people talking about the possibility that mortgage rates could begin to increase”.

They point out that, over the life of a 30-year mortgage, a 1.5% increase in interest rate will cost the homeowner over $40,000. And, when we consider that NAR is predicting that mortgage rates will soon be rising from 3.9% to as much as 4.6%, it’s obvious that waiting may not be in your best interests.

Furthermore, considering the projected rise in rents and the fact that, as a homeowner, you have tax advantages that you don’t enjoy as a renter, the total cost to you of delaying your home purchase may be greater than you think.

In fact, if you are considering buying a home in today’s market, there are 4 things that you should be discussing with your real estate agent:

1. Would you be better off buying or renting?
2. What are the advantages of owning a home, including the non-financial advantages?
3. Why the financial gurus are saying that NOW IS THE TIME TO BUY
4. Why real estate will be a GREAT investment moving forward.

We would be happy to discuss all of these factors with you. Call us at 598-3200, or 1-800-677-6683.

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 latest podcast.


LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area. These statistics can help you evaluate prices and neighborhoods. Call us, if you have any questions.

JOKE OF THE WEEK

As part of our effort to achieve world peace, we have developed a list of “Men’s Rules”.

These rules are meant to clarify some aspects about men’s behavior which sometimes lead to misunderstandings, arguments and/or hurt feelings
Please note.. These are all numbered "1 "…….on purpose!

1..Men are not mind readers. (first & foremost rule)
1..Learn to work the toilet seat. You're a big girl. If it's up, put it down. We need it up, you need it down. (You don't hear us complaining about you leaving it down. )
1..Sunday sports, it's like the full moon, or the changing of the tides. Let it be.
1..Crying is blackmail.
1..Ask for what you want. Let us be clear on this one: Subtle hints do not work! Strong hints do not work! Obvious hints do not work! Just say it!
1.."Yes" and "no" are perfectly acceptable answers to almost every question.
1..Come to us with a problem only if you want help solving it. That's what we do. Sympathy is what your girlfriends are for.
1..Anything we said 6 months ago is inadmissible in an argument. In fact, all comments become null and void after 7 days.
1..If you think you're fat, you probably are. Don't ask us.
1..If something we said can be interpreted two ways and one of the ways makes you sad or angry, we meant the other one
1..You can either ask us to do something, or tell us how you want it done....not both. (if you already know best how to do it , just do it yourself. )
1..Whenever possible, please say whatever you have to say during commercials..
1..Christopher columbus did not need directions and neither do we.
1..All men see in only 16 colors, like windows default settings. Peach, for example, is a fruit, not a color. Pumpkin is also a fruit. (we have no idea what mauve is.)
1..If it itches, it will be scratched. We do that.
1..If we ask what is wrong and you say "nothing," we will act like nothing's wrong. (we know you are lying, but it is just not worth the hassle..)
1..If you ask a question you don't want an answer to, expect an answer you don't want to hear.
1..When we have to go somewhere, absolutely anything you wear is fine... Really .
1..Don't ask us what we're thinking about unless you are prepared to discuss such topics as football,hockey, hunting, or fishing.
1..You have enough clothes.
1..You have too many shoes.
1..I am in shape. (round is a shape!)

Thank you for reading this. .....yes, I know, I have to sleep on the couch tonight;
(but did you know men really don't mind that? It's like camping.)

Pass this to as many men as you can -
To give them a laugh.

Pass this to as many women as you can -
To give them a bigger laugh.