Harry's Bi-Weekly Update 7.7.14
July 7, 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.
HARRY’S JOKE OF THE DAY…(So funny I had to put it first!)
THANK YOU…THANK YOU…THANK YOU
On Thursday, June 26th, Salzman real estate Services was honored as one of the top three Residential Real Estate companies by the Colorado Springs Business Journal’s “Best of Business” poll.
While it’s always nice to be publically recognized for the work we do, the most important honor to us is the vote of confidence given by you, our clients, who have used us multiple times for your residential needs and have referred family members and co-workers.
We take great pride in our special brand of customer service and want you to know we don’t take your loyalty lightly. We look at each and every client individually and work to find the best fit for the needs, wants and budget of every family. We understand how these can change over the years and we offer advice to help you make certain that the decisions you make today are the right ones for your current situation.
So, again…let me thank you for your continued patronage. It’s all the reward we need.
GARDEN OF THE GODS TOPS LIST OF UNITED STATES PARKS
Those of us who live here know just how fabulous Garden of the Gods Park is, but now it’s official. The online travel site TripAdvisor recently ranked it Number One in the country, ahead of New York’s Central Park and Chicago’s Millennium Park.
In world park rankings, Garden of the Gods Park is number 2, right behind Stanley Park in Vancouver, Canada.
This is definitely something for us to celebrate, as TripAdvisor is a major internet site that helps tourists decide where to visit. Garden of the Gods already gets approximately two million visitors each year and this can be an economic driver in a city that depends a lot on tourism.
JUNE LOCAL STATISTICS ARE VERY POSITIVE
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 June 30, 2014 as compared to June 30, 2013.
- The number of single family/patio homes sold is 8.0% greater than a year ago.
- New listings were 8.8% more than a year ago.
- The average sales price is 4.6% more than a year ago.
- The median sales price is 5.3% more than a year ago.
A market appreciation of 4.6% or 5.3% is very comfortable and as I illustrated on my 40th anniversary in the business a couple of years ago—the long term appreciation over that 40 year period was equal to 5.3% per year. We are right on target according to these newly released statistics.
This appreciation in investment numbers certainly justifies buying a home in today’s market. Coupled with the “cheap” interest rates of today (the 30-year fixed rate is around 4.0%) and the reasonable number of current listings, there are choices available for most all price ranges.
Putting it in “my” language:
Good choices available in most price ranges
+ Current Stable Appreciation
+ Cheap Interest Rates___________
= A great quality of life for you and your family !
In comparing June 2014 to June 2013 in PPAR:
Single Family/Patio Homes:
- New Listings are 1,816 Up 8.8%
- Number of Sales are 1,192, Up 8.0%
- Average Sales Price is $267,379 Up 4.6%
- Median Sales Price is $237,000, Up 5.3%
- Total Active Listings are 4,233, Up 9.4%
Condo/Townhomes:
- New Listings are 204, Up 4.1%
- Number of Sales are 146, Down 2.0%
- Average Sales Price is $173,657, Up 6.7%
- Median Sales Price is $155,050, Up 10.8%
- Total Active Listings are 429, Up 0.7%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Average Sales Price
Black Forest $453,500 $423,767
Briargate $305,000 $313,264
Central $163,950 $183,843
East $178,320 $189,366
Fountain Valley: $183,250 $185,465
Manitou Springs: $348,750 $384,375
Marksheffel: $254,950 $287,449
Northeast: $215,700 $237,203
Northgate: $380,000 $420,224
Northwest: $312,500 $342,059
Old Colorado City: $225,950 $222,536
Powers: $226,000 $227,042
Southwest: $355,000 $422,303
Tri-Lakes: $387,000 $411,905
West: $215,000 $224,756
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
Click here to see the full 10-page report and see how your neighborhood is doing. If you have any questions concerning the report please call me for further explanation.
LOCAL JOBS & UNEMPLOYMENT NUMBERS ARE BEST IN MORE THAN FIVE YEARS
The Gazette, 7.1.14
Things are continuing to look up in more areas than home sales. The Colorado Springs jobless rate of 7.2 percent in May was the lowest since December 2008 and is down from 7.4 percent in April and 8.1 percent in May 2013, according to the latest data from the U.S. Bureau of Statistics.
In the fourth consecutive month of employment increases, the number of local residents holding jobs in May was the highest level since January 2009, and up about 400 since April 2014.
DOWNSIZE SOONER, NOT LATER
The Wall Street Journal, Encore Column
While your home may be your biggest asset, in most cases it’s also your biggest expense. Oftentimes, when it’s time for retirement planning, a house isn’t on the top of the list of changes to consider.
There are lots of reasons. Emotionally it may be hard to let go of a family home filled with memories. Moving is a hassle and a smaller home is not always financially the best move.
However, for many retirees, it can pay to downsize sooner than later. Some issues to consider:
- Lifestyle changes such as moving to an adult community.
- Moving prior to illness or death of a spouse can ensure that the surviving spouse or children do not have to contend with emptying and selling a big home.
- Trading a multi-story home for a single level one.
- “If it makes sense, don’t wait”, suggest Steven Sass, an associate director at the Boston College Center for Retirement Research.
Sometimes the reluctance stems from knowing that you might be trading a home with a paid-off mortgage for a rental or a condo with association or maintenance fees. According to Lawrence Glazer, a financial planner at Mayflower Advisors in Boston, that can be a mirage. “In a home, the expenses are hidden,” he says. “It’s maintenance, a roof, a boiler, heating and landscaping.”
Mr. Glazer urges his clients to think twice about holding on to a home so that children and grandchildren can come back to visit. “Rather than clinging onto a three-bedroom and paying for the maintenance and heating, it’s cheaper to put them up in a hotel room,” he says.
When you trade for the more visible costs of a rental or condo you are aware of your fixed costs and this can help with your financial planning, according to David Schwartz, chief executive at advisory firm FCE Group in Great Neck, NY. It doesn’t take a major downsizing to reduce costs, either. With rising property taxes, often simply moving out of a great school district and into a mediocre one can help reduce those taxes.
According to Mr. Glazer, another important thing to consider is the ability to make the move while you are physically and mentally able. Moving can be exhausting at any age, and the older we are the harder it becomes. “Once you’re over 80, more things happen where you don’t have 100 control, and it’s harder for those people to move,” says Mr. Schwartz. If you wait until you are unable to make the move yourself, it often falls to children or other caregivers to take care of and ultimately sell the house, he says.
This is a question I am often asked and when I read this column I was reminded again of these thoughts and suggestions. Hope this helps you or someone you know who is considering downsizing.
Since every downsizing or relocating situation is different, I’m here to help with various options that make the best sense for each individual client. Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com today and we can discuss the best options for you or a family member.
SHOULD PARENTS HELP ADULT CHILDEN BUY A HOME?
9News.com 6.29.14
“There is a renting stigma that exists out there,” said Paul Golden, spokesman for the National Endowment for Financial Education. “You’re paying somebody else’s mortgage and you’re throwing money away.”
That being said, when an adult child doesn’t have enough money to put down on a house, parents might want to weigh their options carefully about whether to step in and help.
There are many things to consider, among them:
- Do you have enough money or are you sacrificing your own financial independence for your adult child’s financial independence?
- Are you jeopardizing your retirement finances?
- Even if you can afford it, most experts say it’s probably better character building to let your children do it on their own.
- Self-sufficiency sometimes means that your children need to learn from their own “School of Hard Knocks” a little bit.
For parents that do choose to help, here’s a bit of advice:
- A couple can gift up to $28,000 per child. And if it’s a married child, they can gift up to $48,000 a year without any reporting by the IRS.
- More importantly, check with you tax advisor to see what’s the best situation for you, tax-wise.
While owning a home is an amazing first step to financial independence, make sure you have all the facts before deciding whether it’s a good move to help your adult children in making that move.
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.
