February 13, 2012


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


NOTABLE QUOTE OF THE WEEK:

“Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.”
Jack Welch


JOB MARKET GETTING BETTER? WSJ SAYS IT IS ….IF YOU HAVE SOMETHING TO SELL

The Wall Street Journal (Friday, Feb. 10, 2012) featured an article titled, “Job-Market Bellweather Strengthens”, in which the author points out that “The number of people applying for benefits each week has fallen steadily in recent months and is now down to levels not seen since the early months of the recession, a sign that hiring has accelerated. If claims stay where they are, there is no reason to think the trend of 200,000-plus monthly growth (in jobs) can’t continue” says the author.

In a related article, the Gazette (Wednesday, Feb. 8, 2012) points out that job openings approached a 3-year high in December, as Companies and governments posted 3.38 million job openings. That’s up from the 3.12 million advertised in November and nearly matches the three-year high reached in September. December job openings in the private sector reached the highest point in almost 3 ½ years, according to the Labor Department.

It is worthwhile to note, however, that the jobs that are available are for people with marketable skills. They include everything from doctors and electronic technicians to diesel mechanics. The outlook for graduates with degrees in English, Political Science and Interpretive Dance doesn’t look very promising.

Bottom line: If you have a child just graduating from high school. It might be a good idea to offer him/her a deal. You’ll put them through college, if they agree to graduate from a diesel mechanics’ school first.


WHAT DO THE RECENT FIGURES ON MEDIAN HOME PRICES TELL US?

On Thursday, Feb. 9, 2012, the National Association of Realtors released the data on Median Sales Prices of existing single-family homes for 149 of the major US metropolitan areas in 2011. As we study these statistics, it is obvious that the national, median price for homes is stabilizing. Many of the metropolitan areas that showed the biggest dip in home values during the recession are coming back, and actually showed a dramatic rise in value in 2011.

Communities like Fort Myers, FL (up 25.58%) and Detroit Michigan (up 9.83%) which were hard-hit by the recession are showing healthy increases in home values. Nationally, although home prices continued to drop during 2011 (-4.2%), the pace of decline has slowed and, in many places, has started to rise from the ashes (although Phoenix still showed a 10.2% drop).

Colorado Springs, because we did not suffer the disastrous decline in home prices that many other communities experienced during the recession, did not have as deep a hole to climb out of, so our median prices tended to follow the national trend more closely (-6.5%), however, there are strong indications that 2012 will see our local home-prices stabilize and begin to grow again.

Housing inventories are shrinking, mortgage rates are historically low, housing affordability is at record highs and the job market is slowly improving.

Existing-home sales have been edging up in recent months, and for-sale housing inventories were at nearly 2.4 million units in December, reaching its lowest point since 2005, according to NAR.

The National Association of Home Builders is also predicting an improvement this spring. They predict an increase in building of 18%, after facing their lowest growth on record in 2011.

However, the threats to housing recovery still loom. Strict mortgage lending is keeping some buyers on the sidelines and foreclosures continue to put downward pressure on home prices in many markets.

Celia Chen, senior housing economist with Moody’s Analytics, predicts that “Ultimately, by the end of this year, we should see the housing market on a more solid footing”

That sounds good to us !!!!

 

THE FED CALLS FOR NEW POLICIES TO HELP HOUSING ….LIKE THE RECENT FORECLOSURE DEAL

The Wall Street Journal (Friday, Feb. 10, 2012) quotes Federal Reserve Chairman Ben Bernanke as calling for new policies to help the nation’s housing market, saying it was an impediment to economic recovery.

“We need to continue to develop and implement policies that will help the housing sector get back on its feet” he said.

Mr. Bernanke’s remarks were made in a speech to the National Association of Homebuilders and came a day after the announcement by government officials of a $26 billion settlement over alleged foreclosure abuses that will, in part, offer reductions in loan principal to some homeowners.

Under the terms of this settlement, Colorado will receive $204.6 million worth of relief for homeowners. That includes $73.3 that will be available to grant principal reductions on loans to make mortgage modification possible.

“This settlement will not solve every problem with the housing market, but it goes a long way to helping homeowners in distress now and leveling the playing field for consumers”, said Colorado Attorney General John Suthers.

Meanwhile, Mr. Bernanke said the central bank was “intensely focused” on improving credit conditions.

Bottom Line: We urge our readers to advise any of their friends, relatives and neighbors who might have had any foreclosure concerns to contact their lender to see if this settlement could help them.


INVESTORS, TAKE NOTE !!! RENTS ARE PREDICTED TO CONTINUE TO RISE

The Gazette (Thursday, Feb. 9, 2012) tells us that rents at Colorado Springs apartments hovered near a record-high in late 2011 …part of a two-year climb in renter costs that’s expected to continue to rise as demand for multifamily properties remains strong, industry experts say.

Colorado Springs’ monthly rents averaged $775.44 in the fourth quarter of 2011, about $37 more than the same period in 2010, according to a report released Wednesday by the Colorado Division of Housing and the Apartment Association of Southern Colorado. It was the eighth consecutive year-over-year quarterly increase in rents, the report showed.

Rents are up because demand is on the rise. This is a result of thousands of homeowners who have lost their homes to foreclosure and other prospective homeowners who can’t qualify for a mortgage because of tougher borrowing requirements by lenders.

This higher demand for rentals has also resulted in triggering construction of several apartment projects in Colorado Springs, Fountain and Monument.

The bottom line for our readers is that you should consider investing in rental property. Realtor Magazine, in their Jan/Feb. issue, lists rental properties as one of the strongest areas for growth in 2012. The return on investment from your rental property could easily outmatch the income you are now realizing from any of your other investments.

Call us at 598-3200,or, 800 877-MOVE (6683) to discuss this.

 

SALES AND LISTING STATISTICS
 

CLICK HERE to see the latest Sales and listing statistics for the Pikes Peak area.

And be sure to give us a call, if you have any questions, or would like to discuss these statistics in more detail. Call us at 598-3200, or, 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. Call us at 598-3200,or, 800 877-MOVE (6683).


JOKE OF THE WEEK

I don’t get to travel much !!

I've never been in Cahoots. Apparently, you can't go alone. You have to be in Cahoots with someone.

I've also never been in Cognito. I hear no one recognizes you there.

I have, however, been in Sane. They don't have an airport; you have to be driven there. I have made several trips there, thanks to my friends, family and work. I live close so it's a short drive.

I would like to go to Conclusions, but you have to jump, and I'm not too much on physical activity anymore.

I have, however, been in Doubt. That is a sad place to go, and I try not to visit there too often.

I've been in Flexible, but only when it was very important to stand firm.

Sometimes I'm in Capable, and I go there more often as I'm getting older.

One of my favorite places to be is in Suspense! It really gets the adrenalin flowing and pumps up the old heart! At my age I need all the stimuli I can get!

And, sometimes I think I am in Vincible but life shows me I am not.

People keep telling me I'm in Denial but I'm positive I've never been there before!

I have been in Trouble many times; the older I get, the easier it is to get there and my honey arranges many of those trips, it seems. I actually kind of enjoy it there.

So far, I haven't been in Continent; but my travel agent says I'll be going soon.