June 23, 2014

 

HARRY’S BI-WEEKLY UPDATE

                             A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.             

                                                            

REALTORS LOOKING FOR 4% MEDIAN HOME PRICE RISE

Housingwire.com 6.12.14

Despite negative reports to the contrary, the latest survey of the National Association of Realtors (NAR) in their confidence index shows that Realtors expect home prices to continue to appreciate over the next year, with a median price increase of 4%. 

This index reflects the responses of more than 3,000 NAR members and while some states are forecasted for higher median increases, those are states that suffered the most during the housing crisis. 

All in all, good news… as Realtors can help play an important role in helping protect your investment.

 

FORECLOSURES CAN AFFECT YOUR HEALTH

MarketWatch, The Wall Street Journal 6.14

I’m sure you can imagine that having a home foreclosed on would be difficult, but you might not be aware that simply living next to or near a foreclosed home can also affect you in ways you never dreamed of.

A new study found that the foreclosure next door can elevate your blood pressure.  According to a researcher at the Harvard Center for Population and Development Studies, each additional foreclosure within 100 meters (328 feet) of an individual’s home corresponds with an increase of 1.17 millimeters of mercury in systolic blood pressure. 

One in three American adults already has high blood pressure—a reading over 140/90 mmHg.  This additional increase doesn’t push homeowners into hypertension territory; however, it is worrisome and reveals larger public-health implications, according to the study.

It was also found that stress from these nearby foreclosures affected the study participants’ health in other ways, such as in increase in alcohol consumption and nominal weight gain. 

The study looked at bank-owned foreclosures, which are often left vacant and unkempt, in the year leading up to the examinations of participants.  The 100-meter radius covers roughly two properties on either side of the home, as well as properties directly behind and across the street.

This is just another reason to use a competent Realtor when looking to Buy.  A good Realtor will check out any foreclosure activity in neighborhoods you are considering.  Just another part of our job—making sure you won’t be facing any health-related problems due to foreclosures in the vicinity of your new home!

 

‘BOOMERANG’ BUYERS GET A SECOND CHANCE, BUT NOT GREATLY AFFECTING MARKET AT PRESENT

RealtorMag 6.16.14

A government program launched last summer by the FHA is helping former homeowners to step back into home ownership in a little as a year after a foreclosure or short sale.  The FHA’s Back to Work Program allows them to qualify for low interest rates with a minimum of 3.5% down payment. 

Applicants much show that the main culprit behind losing their home was that they lost at least 20 percent of their household income for at least six months.  They also much show they’ve worked to repair their credit for at least a year.

Since approximately 7.2 million homes were lost to foreclosure or short sale since the housing crash began, many of these former homeowners have been forced into renting as they rebuild their credit.  And, while opportunities to apply for a home loan are increasing, some of these former homeowners are hesitant to stop back in, according to housing analysts.

“Based on the fact that the home ownership rate isn’t rising again and demand for single-family rentals is historically high, the comeback Buyer is not a significant phenomenon in the market,” says Mark Fleming, chief economist at CoreLogic.  “Given the duration of the recovery, its’ likely that many of the initially foreclosed borrowers have repaired their credit and are now creditworthy, but the scale at which they will enter the market is not sufficient to significantly influence demand.”

 

MILLENNIALS ARE BUYING AND SELLING HOMES

Keeping current matters, 6.18.14

Millennials are a much higher percentage of the overall housing market than the public may realize, according to a recent study by the NAR entitled Home Buyer and Seller Generational Trends.

Contrary to what many believe, Millennials make up the largest percentage of all Buyers and a substantial percentage of all sellers.

Below is a chart illustrating results of the survey.

 

                           BUYERS

        

 

                         SELLERS

         

 

MAY SCORECARD SHOWS PROGRESS IN EQUITY AND HOME SALES

DSNews, 6.18.14

The U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury recently released the May edition of the Obama Administration’s Housing Scorecard.  The report showed progress, noting growth in key indicators such as increasing equity and a rebound in the sales of new and existing homes.

Homeowner equity was up nearly $795 billion in Q1 2014, totally more than $108 trillion, according to the Federal Reserve.  May’s figure was the highest level since the second quarter of 2007 and equity has continued to rise since the beginning of 2012, up 73 percent through the first quarter of 2014.

HUD assistant secretary, Katherine O’Regan said that “May’s Housing Scorecard shows that the housing market recovery is picking up after the harsh winter months.  More homeowners have positive equity, foreclosures continue their downward trend and sales of new and existing homes are rebounding.  Whiles these are all good signs, it’s clear that we must remain committed to helping homeowners as they recover from the worst recession since the Great Depression.”

HUD cited figures from CoreLogic which found that the number of underwater borrowers dropped 48 percent, lifting more then 5.8 million homeowners above water from 2012 to the first quarter of 2014.  But despite first quarter gains of 300,000 homeowners who returned to positions of positive equity, approximately 12.7 percent of residential properties with a mortgage are still underwater.

New home sales were up 6.4 percent in April and foreclosure starts continued on a downward slope and are the lowest since December 2005.

Existing home sales also rose but are still below the pace of a year earlier, according to the report

 

SALZMAN real estate SERVICES TO BE HONORED ON THURSDAY

The Colorado Springs Business Journal is holding it’s annual “Best of Business” Awards this Thursday, June 26th and I’m happy to tell you that we have been informed that we are one of three finalists for “Best Residential real estate Company” in Colorado Springs.  We understand that more then 25,000 votes have been cast and this is indeed an honor.

While we will be happy to accept this award, what’s more rewarding to us is the fact that we wouldn’t be in this position without you, our readers and clients.  Your loyalty and patronage means more to us than we can say.  Our biggest reward is knowing that we have done all we can to provide our clients with the best, most thorough and as stress-free as possible home buying or selling experience.

Our special brand of customer service is something we provide each and every client and we appreciate all the referrals and repeat clients.  Each transaction is tailored to the needs, wants, and budget of individual clients and we do the homework to make your homeownership dreams come true. 

If you or any family member, friend or co-worker is thinking of Buying or Selling, please call me at 598.3200 or email me at Harry@HarrySalzman.com and let us provide you or them with some of our award-winning service.

 

HARRY’S JOKE OF THE DAY