Harry's Bi-Weekly Update 9.3.14
September 3, 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.
THE THOUGHT BEHIND THE LOGO
Have you ever looked at my company logo and wondered what it means? I’ve been asked that question quite often and thought I’d take a minute to share the answer with you.
When I started my company back in 1978, I wrote a Policy and Procedural Manual and in it I wrote what I wanted my “Company Philosophy” to be. Today that would be called my “Mission Statement” and it remains as true today as it did when I wrote it back then.
“The most important entity of a family is the love between the members of the family. Next to the love within the family comes the family home.
To locate the absolute finest home for the family or to sell their house in order to purchase another is our business.
We feel that the home is the single most important physical element of people, and we place the housing needs of our Buyers and Sellers first. This philosophy was incorporated into the Company Logo, as you see a house first before the ‘S’.”
So there you have it.
Your goals come first.
They become MY goals when working with you.
That’s a philosophy I’m proud to have adhered to and will continue to do so for as long as I’m in business. After all, why change a philosophy that has passed the test of time? It’s proven to me that my original reason for becoming a real estate Broker hasn’t changed and never will.
Thank you for letting me into your lives and helping you to make good financial decisions when it comes to home Buying or Selling. After all, without you and your families I wouldn’t need the “house” before the “S”.
AUGUST LOCAL STATISTICS JUST OUT TODAY
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
PPAR reported the August stats this afternoon and I waited an extra day to send you this eNewsletter in order to get them to you in a timely manner. Therefore, I won’t comment as much as usual except to say that things are continuing to look good in the local housing market.
I was asked by Tatiana Bailey,the director of the Southern Colorado Economic Forum, to stick my neck out and make a prediction as to how I thought the local housing market would do in the next 12 months. I told her I thought local housing would appreciate by 2-4 percent and I’m thrilled to see that in comparing January-August 2014 to January-August 2013, the cumulative year to date average sales price for Single-Family/Patio Homes was up 2.5% and for Condo/Townhomes it was up 2.7%. And comparing August 2014 to August 2013 was also very positive, as you will see below. So, at the moment my prediction is looking good.
In comparing August 2014 to August 2013 in PPAR:
Single Family/Patio Homes:
- New Listings are 1422, Down 2.8%%
- Number of Sales are 1,111, Up 0.5%
- Average Sales Price is $258,398 Up 3.7%
- Median Sales Price is $230,000, Up 4.5%
- Total Active Listings are 4,104, Down 3.5%
Condo/Townhomes:
- New Listings are 183, Same as last year
- Number of Sales are 164, Up 1.9%
- Average Sales Price is $188,930, Up 2.5%
- Median Sales Price is $151,500, Up 1.1%
- Total Active Listings are 403, Down 14.6%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Average Sales Price
Black Forest $348,000 $395,616
Briargate $295,000 $315,827
Central $180,000 $209,618
East $195,625 $205,629
Fountain Valley: $198,250 $204,463
Manitou Springs: $319,200 $297,000
Marksheffel: $230,000 $238,770
Northeast: $225,250 $245,903
Northgate: $352,450 $366,640
Northwest: $315,875 $358,542
Old Colorado City: $207,500 $219,882
Powers: $232,250 $244,227
Southwest: $268,000 $310,392
Tri-Lakes: $380,000 $387,704
West: $209,250 $275,194
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
Click here to see the full -page report and see how your neighborhood is doing. If you have any questions please give me a call.
LOCAL EMPLOYMENT AND SALES TAX REVENUE ARE LOOKING REAL GOOD
The Gazette 8.22.14 & 8.28.14
Colorado Springs sales tax revenues grew by the biggest percentage in 17 months and had double-digit gains in back-to-back months for the first time in more than 10 years according to a report by the city’s Finance Department.
Commercial machines accounted for much of the increase, but collections in all 13 industry categories tracked rose during that same period.
“The city collects money from a use tax, paid on manufacturing equipment, building materials and other items bought outside the city and used inside the city. Collections from use tax rose 14.9 percent in July from the same month in 2013 to nearly $1 million, the highest monthly total since February.
Combined sales and use tax collections in July were up 12.1 percent from July 2013 to $13.9 million and this year are up 4.1 percent from the same period of 2013.”
In the job market, Colorado Springs unemployment fell to 6.5 percent—the lowest since November 2008 according to the U.S. Bureau of Labor Statistics.
Local unemployment is now the closest it has been to the national average since it hit a high of 10 percent in late 2010, when the national rate was 9.8 percent. In July, the national jobless rate was 6.2 percent. Colorado Springs is now only 4,300 jobs below the September peak of 262,400.
And from where I sit, all this good news means more and more people are taking their recent equity increases and looking to Sell and Trade Up. With interest rates still low, an increase in listings in most price ranges and positive employment news, now is a good time to begin the search if you’ve been waiting.
If you or any family member or coworker is considering a move, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if we can make that dream a reality.
HOUSING OUTLOOK SHOWS OPTIMISM & RECOVERY ACCORDING TO ECONOMISTS, NAR
RealtorMag 8.31.14, The Wall Street Journal, 8.31.14, LA Times, 8.22.14, Housingwire, 8.31.14
The decreasing unemployment rate is also causing economists to gain increased confidence in the housing market over the next two years, according to a newly released poll by Reuters of 29 housing analysts, including investors and economists.
Economists surveyed expect existing-home sales to increase to 5.25 million units in the first three months of 2015. Currently they stand around 5.09 million. In changing their outlook, economists now also expect home resales to continue to inch up in 2015, reaching 5.29 million by the second quarter of 2015.
“Low mortgage rates and improving labor market dynamics should remain conducive to gradual growth in the housing sector,” Gennadly Goldberg, a strategist at TD Securities, said in a note to clients.
The NAR, in it’s latest housing data release, reports that existing-home sales were on the rise in July, with sales moving to the highest pace of this year. It also marked the fourth consecutive month of sales gains.
The housing recovery appears to be on track, with sales of previously owned homes rising more than expected in July. The positive report from NAR is the latest sign that the housing market may be turning a corner after starting to slow last summer amid higher mortgage rates and prices.
“The number of houses for sale is higher than a year ago and tamer price increases are giving prospective buyers less hesitation about entering the market,” says Lawrence Yun, NAR’s chief economist. “More people are buying homes compared to earlier in the year, and this trend should continue with interest rates remaining low and apartment rents on the rise.”
“The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer,” he added.
And, more importantly, Yun explained that steady job additions to the economy are helping family finances and giving them added confidence to enter the market.
U.S. consumers also viewed the economy with increased optimism in August, hinting at a strong jobs report for the month.
According to The Conference Board, a private research group, consumer confidence rose to 92.4% in August from a revised 90.3% in July. The August index is the highest level of confidence since October 2007, before the recession started.
Consumers who own homes got more good news: the S&P Case-Shiller report said home prices nationwide increased 6.2% in the year through June.
Another beneficiary of the good news on housing was the Dow’s recent rise. Stocks such as Home Depot, and various Home Builder/Construction stocks increased due to these reports.
“Housing is an absolute must in terms of…long-term economic growth in the U.S.,” said Natalie Trunow, chief investment officer of equities at Calvert Investments, which has about $13 billion under her management. The report on housing starts is “a positive sign for the home-builder sector,” she said, adding that she is looking to increase her position in stocks of homebuilders.
All in all—great news for the housing industry and consumers alike.
HOME BUYERS STRUGGLE WITH T.M.I.
The Wall Street Journal, 8.22.14
When it comes to mortgage advice, borrowers are struggling with information overload and are finding that specific totals on payments and rates are hard to get.
While a number of mortgage websites will define “balloon payments” and “debt-to-income ratio”, very few are giving the answer to the one questions on borrowers’ minds: “What will I owe?”
Whether you’re a seasoned Buyer or new to the market, there’s a lot of information out there and it’s difficult to discern what’s really important. Plenty of mortgage-education websites include a general discussion about income and down-payment requirements, but don’t get down to the specific questions of what documentation is needed so that borrowers can plan ahead.
Here are a few tips to help you get the mortgage information you really need:
- Go Beyond Calculators. Meet with several potential lenders to get a specific rate before shopping for a home.
- Prequalify. This gives borrowers a chance to catch and correct problems before their dream house is on the line. Jack Wind, executive vice president of home lending at a FL based financial institution said, “Before the crisis, Sellers had a lot more confidence that Buyers could find financing because it was readily available. Now Sellers are asking Buyers to ‘get the loan and close within a reasonably short period.’”
- Clarity is coming. New federal rules will replace the “good-faith estimate” document with a standardized “loan estimate” document starting August 1, 2015. This new standardized summary—issued at the start of the loan process—will itemize key loan terms and estimated loan and closing costs, making it easier for borrows to compare loans.
I’m going to tell you this one more time because I think it’s of vital importance in today’s real estate market. You need to have a qualified, competent real estate Broker to help you whether you are Buying or Selling. There is just too much information for a lay person to easily comprehend. Hey—it’s hard enough for us Brokers with things changing all the time in terms of disclosure and mortgage lending rules and more—so it’s almost impossible for the uninitiated to keep up. That’s our job—to know how to navigate the housing and mortgage lending waters and to make certain that we get the best possible outcome for our clients.
Those of you who have worked with me know that I take special pride in my Investment Banking background because it has afforded me the opportunity to help my clients make informed decisions and to get the best mortgage lending available. I do the homework in order to make the entire process as stress-free as possible. It’s my philosophy and my pleasure. I look forward to my continued relationship with you all.
HARRY’S PHILOSOPHY OF THE DAY
I’d like to share another item from my 1978 Policy and Procedural Manual. This was written by someone at the National Association of Realtors and says something about my “Product”. Again…as true today as when it was written. After all, as a wise man or woman once said, “They aren’t making any more LAND.”
“I AM real estate”
I am the basis of all wealth, the heritage of the wise, the thrifty, and prudent.
I am the poor man’s joy and comfort, the rich man’s prize, the right hand of capital, the silent partner of many thousands of successful men.
I am the solace of the widow, the comfort of old age, the cornerstone of security against misfortune and want. I am handed down to children through generations as a thing of great worth.
I am the choicest fruit of toil. Credit respects me. Yet I am humble, I stand before every man bidding him know me for what I am and possess me.
I am growing in value through countless days. Though I seem dormant, my worth increases, never failing, never ceasing. Time is an aid and populations heaps up my gain. Fire and the elements I defy, for they cannot destroy me.
I am trustworthy. I am sound. The thriftless speak ill of me. The Charlatans of finance attack me. Unfailingly, I triumph and detractors are disproved.
I am producer of food. The basis for ships and factories; the foundation of banks. Minerals and oil come from me.
I am so common that thousands unthinkingly and unknowingly pass me by.
I am real estate.
