Harry's Bi-Weekly Update 6.9.14
June 9, 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.
JUST SOME PERSONAL THOUGHTS….
When you buy a home you are purchasing much more than what is represented on MLS. This purchase in most cases is representing a “new LIFE” for you and your family. That’s why I ask so many questions when I talk to my clients. I am aware that my input and advice will be vitally important in the “life” of my clients for many years to come.
With more than 40 years in the local real estate arena, I am aware of ALL the neighborhoods in the Pikes Peak area and what they have to offer. My suggestions will depend on whether there are young children in the family or if it’s an “empty nest”, school districts, proximity to parks and playgrounds, high traffic or not, a number of foreclosures in the neighborhood….these factors all come into play when I make suggestions to my clients.
I cannot re-emphasize enough the importance of dealing with a reputable real estate Broker when you begin the search for one of the biggest and probably most important financial decision of your life.
Your future happiness is in the hands of your Realtor. I take that responsibility very seriously because I know how important it is to match a family with the right home and right mortgage for them. I give each and every client the personal customer service for which I’ve become known. You can rest assured that when you call me, or refer someone you know to me, that I will do the homework necessary to make the homeownership process a happy one and as stress-free as possible.
Recent market conditions have been terrific for my clients and also for me personally. Between April 30 and May 31, 2014 I have had 12 closings for single family clients on nine different properties. On three of those closings, I represented both the Seller and the Buyer which I do for about 20% of my listings. And this does not included closings for relocation clients outside of Colorado, so May was a very good month all around.
This represents an ALL TIME HIGH for me on monthly single family personal production in Colorado Springs and what can I say but….THANK YOU….THANK YOU….THANK YOU. Your continued trust in me is the best reward of all.
NOW THE HOUSING NEWS….SOME GOOD, SOME NOT AS MUCH, BUT WITH THE RIGHT REALTOR YOU SHOULD BE JUST FINE IN EITHER CASE
In reading these full reports you will see that local prices were somewhat flat for the month of May; however, that’s not necessarily a bad thing. Home prices here are VERY reasonable compared to many other areas of the country. The fact that they are not rising significantly at the present time works to our advantage. That means if you recently bought a home it is holding its value and should continue to increase in value, but at a slower rate than in the past few years. Prices will hopefully stay very stable so that we won’t have the unrealistic “run-up” that occurred in the recent past.
Interest rates are almost “cheap”. Current rates (which are subject to change hourly and/or daily) include 30-year fixed conventional rates at about 4.12%; 15-year fixed conventional rates at about 3.25% and 10-year fixed conventional at around 3.0%. This is “new purchase” money only, but if you are in the market, now is a great time for the best mortgage rate. If it makes financial sense, that 10-year fixed conventional is downright “cheap”. FHA/VA mortgage rates at press time were 3.75% for a 30-year loan and 3.00% for a 15-year loan. Again, “cheap” money.
Another thing to keep in mind when reading the following reports is that fewer people are qualifying for mortgage loans due to the Dodd-Frank Bill that took effect on January 10, 2014. This has been affecting residential sales nationwide and hopefully we will see some lessening of restrictions by mortgage lenders as they have been suggesting recently.
MAY LOCAL STATISTICS BASICALLY FLAT
Statistics provided by the Pikes Peak REALTORS Service Corp, or its PPMLS
These local stats include “all homes”—both resale and new homes built through May 31, 2014 as compared to May 31, 2013.
- The number of single family/patio homes sold is only .9% fewer than a year ago.
- New listings were 10.1% more than a year ago.
- The average sales price is 2.6% less than a year ago.
- The median sales price is about the same—.5% more than a year ago.
And now a look at the actual numbers. To read the complete 10-page report, click here. If you have any questions, as always, I’d be happy to answer them for you.
In comparing May 2014 to May 2013 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,887 Up 10.1%
- Number of Sales are 1,124, Up 0.9%
- Average Sales Price is $243,230, Down 2.6%
- Median Sales Price is $216,250, Up 0.5%
- Total Active Listings are 4,009, Up 10.0%
Condo/Townhomes:
- New Listings are 210, Up 9.9%
- Number of Sales are 144, Up 33.3%
- Average Sales Price is $174,152, Down 11.1%
- Median Sales Price is $150,000, Up 12.0%
- Total Active Listings are 425, Up 0.2%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Average Sales Price
Black Forest $330,000 $342,382
Briargate $311,885 $326,668
Central $164,500 $176,220
East $182,500 $185,471
Fountain Valley: $200,000 $198,293
Manitou Springs: $359,900 $367,877
Marksheffel: $258,900 $264,531
Northeast: $210,000 $232,517
Northgate: $350,000 $386,422
Northwest: $285,000 $321,576
Old Colorado City: $177,500 $197,714
Powers: $217,000 $224,429
Southwest: $318,750 $335,565
Tri-Lakes: $340,000 $395,771
West: $235,000 $294,882
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
QUARTERLY UPDATES AND ESTIMATES
College of Business and Administration, UCCS, Fred Crowley, Senior Economist
This report provides statistics for El Paso County in the areas of the Economy, Single and Multi-family Housing, MLS Activity, Foreclosures, Multi-family Market, Colorado Springs Airport Trends, Employment Trends and Wages, Sales Taxes and New Car Registrations. To read the 9-page report in its entirely, please click here.
Some highlights include:
- Six of the Business Conditions Index’s ten components are lower than last year, however…
- Employment levels are higher than all recent benchmark periods.
- Real income has improved slightly.
- El Paso County needs to have a new spark to build on unique, sustainable, core, comparative advantages to drive it out of its economic malaise.
- Single-family permit activity slowed noticeably after February 2013, but 2013 turned out to be a strong year. The trend this year indicates that 2014 permit activity may decline 5% below last year.
- Multi-family housing rose, driven by low vacancies, rising rents and a possible shortage of new multi-family housing. The trend for 2014 is not clear at present.
- In MLS activity the trend in home sales continues to improve.
- Foreclosures were below the projected range.
- Enplanements at the Colorado Springs Airport continued their downward trend but new flights from Allegiant Airlines might be a start at stabilizing passenger activity at the airport.
- Sales taxes increased, with the largest percentage coming from hotels, building materials, furniture, appliance and electronics, utilities and medical marijuana.
- New vehicle registrations increased 15.4% in 2013 and sales of new cars are expected to continue at a brisk pace for the next 12-18 months.
HOME PRICE GROWTH SLOWS IN MANY METRO AREAS DURING FIRST QUARTER
National Association of Realtors, 6.2.14
In the most recent quarterly report from the National Association of Realtors (NAR) a strong year-over-year growth continued in most metropolitan areas, although the increases were somewhat smaller than in recent times.
The median existing single-family home price increased in 74 percent of the measured markets, with 125 out of 170 metropolitan statistical areas showing gains based on closings in the first quarter compared with the first quarter of 2013. In thirty-seven areas, 22 percent had double-digit increases, and 45 areas recorded lower median prices.
In the fourth quarter of 2013, price increases were recorded in 73 percent of metro areas from a year earlier, with 26 percent rising at double-digit rates, but 89 percent of markets were showing year-over-year gains in the first quarter of 2013.
Lawrence Yun, NAR chief economist, said the price trend is favorable. “The cooling rate of price growth is needed to preserve favorable housing affordability conditions in the future, but we will need more new-home construction to fully alleviate the inventory shortages in much of the country,” he said. “Limited inventory is creating unsustainable and unhealthy price growth in some large markets, notably on the West Coast.”
The five most expensive housing markets in the first quarter were San Jose, CA metro area, San Francisco, Honolulu, Anaheim-Santa Ana, CA and San Diego.
The five lowest-cost metro areas were Youngstown-Warren-Boardman, Ohio, Decatur, IL Toldedo, Ohio, Rockford, IL and Cumberland, MD.
According to the report, Colorado Springs showed a negative growth in Median Sales Price year-over-year of -1.4%. While this is not a positive, having a good Realtor can turn it into one for you as long as you price your property realistically and do what is considered necessary to prepare your property for listing. These things will help make certain that your home is one that is actively looked at by prospective Buyers.
To see the 3-page report comparing all 170 metro areas in the survey, please click here.
GOOD NEWS FOR SELLERS
RISMedia 6.5.14
Despite weak demand and an infusion of new listings over the past two months, listings are selling nearly as fast as a year ago and prices are still rising.
NAR reported that, with little inventory relative to demand, in April properties sold faster for the fifth straight month.
So, again, let me remind you. If you have realistic expectations and price your home accordingly, it’s more than likely going to sell FAST.
WHAT’S THE REAL REASON PEOPLE MOVED LAST YEAR?
HousingWire, 6.7.14, REALTORMag, 6.8.14
According to the U.S. Census Bureau, the Number One reason that 36 million people (aged one year and older) moved from 2012 to 2013 was because of the desire for a new home. Family. Work. School. Friends. All of these were also cited when a new report put real numbers and reasons behind the question.
Forty-eight percent of those who moved last year cited housing as the main reason that contributed to their decision to move, followed by 30.3 percent who cited family. 19.4 percent said employment and 2.3 percent said “other”.
“Picking one reason can be difficult as moves are often motivated by many different, and oftentimes competing, factors,” says David Ihrke, a demographer for the Census Bureau and the report’s author. “For instance, if one’s primary reason for moving is to be closer to work or having an easier commute, they may have to sacrifice other preferences. This could include forgoing cheaper housing options or settling for a different neighborhood. If they mainly want cheaper housing, they may have to deal with a longer commute.”
Key findings in the report include that males were more inclined to move for job-related reasons than females. In addition, married respondents were the least likely to move for family-related reasons.
The following chart illustrates all the reasons listed in the report.
Source: U.S. Census Bureau
ADVICE FROM BANKERS TO POTENTIAL HOMEBUYERS
HousingWire 6.3.14
Found the perfect home? Now it’s time to look at getting a mortgage! Not the right order, according to the Independent Community Bankers of America (ICBA).
One of the biggest obstacles facing prospective homebuyers is obtaining credit. And for first-time buyers, there are many obstacles that may prevent them from owing their little piece of the American dream.
According to John Buhrmaster, ICBA chairman, “with new mortgage rules and regulations in place, community bankers are available to help potential homebuyers by providing accurate and well-informed information. Community bankers across the country can help their neighbors in the local community find mortgages that fit their financial needs, budgets and lifestyles.”
The ICBA suggests prospective Buyers do the following to make the home buying process a little easier for themselves:
- Earn and spend
Know your monthly income and budget, including how much you spend on rent, utilities, entertainment, clothing, food and transportation.
- Talk about it
Discuss your finances with a planner at a bank before you begin looking for a home. It is important to stay within your means when purchasing a home.
- Have a paper trail
Gather and organize paperwork and documents. Items you should have readily available include paycheck stubs, W2 forms, tax returns and bank and investment statements for the last two years.
- What’s your FICO?
Check your credit report so you are aware of what your current credit score is before applying for a loan. Credit reporting agencies must give you one free report annually.
- Bad FICO? Fix it
Maxing out credit cards or falling behind on other loan payments could create issues when applying for a mortgage. Keep tabs on your spending habits before applying for a mortgage, and don’t go on a spending spree afterwards either.
- 30-year fixed? Really?
Work with a banker to figure out how much you can borrow and which mortgage product is right for you. Your local community banker can explain available mortgage options—including rate adjustments, fees and other loan features—so you are prepared for the loan closing and not surprised down the road.
- Rates. Rates. Rates.
Learn what current mortgage rates are. This will greatly impact your monthly payment. A banker can explain this to you well before you set your sights on the perfect place.
- You may get help
Check with your state, city and county government agencies for special first-time-homebuyer loan or grant programs available to assist with down payment and closing costs.
Just one more reason to work with a reputable real estate Broker. One of the services I provide my clients is my relationship with a number of mortgage lenders and make certain that they get pre-approved prior to starting the home buying process. This is a very important step that can save you time and money, not to mention heartache if you find the property you want is not the one that fits your budget. My investment banking background is very helpful when it comes to finding the right mortgage for my clients. If you are in the market, or know someone who is, please call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the conversation started.
SKY SOX TICKETS AVAILABLE
Just a reminder that I have 4 front row seats to all Sky Sox games available to you on a first-come-first-served basis. Just give me a call and I’ll be happy to put the tickets aside for you.
HARRY’S JOKE OF THE DAY
