June 1, 2010- Enewsletter
- June 1, 2010
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET
HOW DOES “THE QUE” SAY WE ARE DOING ??
The “QUE” is the Quarterly Update and Estimates Report that is published by the Southern Colorado Economic Forum of the College of Business and Administration of the University of Colorado at Colorado Springs. Salzman real estate Services, Ltd. has been a supporter of this important and informative project from its inception and we thought some of our readers might want to study the complete First Quarter Report for 2010, so we are linking here to it here.
One of the significant sections of the latest report is the Business Conditions Index (BCI) which reports on such areas as:
- Single-family and Townhouse permits
- New car sales
- Employment rate
- Foreclosures
- Wages and Salaries
- Sales and use tax collections
- Airport emplanements
The encouraging “bottom-line” news is that the first quarter of 2010 in El Paso County shows a 15.7% increase in activity over the first quarter of 2009. Further, the report states that “The current flow information suggests the second quarter of 2010 will see modest gains in the BCI”. This re-emphasizes our previous observation that the Colorado Springs area is coming out of the Recession.
The “QUE” also has data derived from another project created by UCCS, namely, the Renewable Energy Survey. This survey contains such questions as:
- What is your monthly utilities bill?
- What is your household income?
- Are you willing to pay higher prices for renewable energy?
- Do you currently have renewable energy?
- Do you plan to install renewable energy?
- Would you pay extra for a residence/business whish uses renewable energy?
These data are reported and grouped by household income, sex, education, etc.
Some of the interesting highlights of the report findings are:
- Only 21.9% of the respondents were willing to pay higher prices for electricity from renewable energy.
- Another 43.6% indicated they might be willing to pay higher prices for electricity from renewable energy.
- Lower income respondents were more willing than higher income respondents to pay higher prices for electricity from renewable energy. (Whooda thunk it?)
- Only 6.4% of respondents think solar panels are attractive. (Surprise, surprise)
- 20.4% of respondents think wind farms are attractive. (Are you kidding?)
To help promote the Southern Colorado Economic Forum, you can receive a free subscription to the “QUE” by sending an email to fcrowley@uccs.edu and entering the word “subscribe” in the Subject line.
As always, the University is always prepared to accept any donation you would care to make.
THE VIEW FROM THE SUMMIT
Last week, the Gazette published some encouraging information about the economy of Colorado Springs. The data, provided by Summit Economics, Llc., compared April 2010 to April 2009 and showed:
- Initial claims for unemployment went down 22.7%
- Single-family home permits were up 69.3%
- New car and truck registrations were up 14.4%
- Taxable retail sales were up 5.5%
- Hotel occupancy rates were up 56%
- Foreclosure filings were down 11.5%
- The unemployment rate was unchanged at 8.4%, but was still better than most other U.S. cities.
To add to the good news, the most comprehensive quarterly analysis of median selling prices for homes is the National Association of Realtors report. This report analyzes data from 153 of the largest multiple listing services in the nation. The most recent NAR report shows that existing-home sales in April 2010 were 22.8% higher than April of 2009.
And, on a personal note, when we have occasion to attend national meetings and conferences, we have the opportunity to compare our local conditions with other Realtors and relocation experts from around the country. During these discussions, we are consistently impressed with how well Colorado Springs is doing, compared to almost every other part of the U.S. We are the envy of almost everyone else at the meeting.
We are lucky to live here !!!
LET’S TALK ABOUT MORTGAGE RATES
Did you know that last week you could have obtained a 30 year, fixed-rate home mortgage for 4.5%? The rates have not been this low since Dwight Eisenhower was president. What accounts for these low mortgage rates?
Well, the most commonly cited reason for our current low mortgage rates is the sad state of the European Money Markets. The sinking value of the European markets is pushing global investors to put their money into U.S. Treasury Bonds, which are viewed as a more secure investment. As a result, Treasury yields have fallen, which has taken our mortgage rates down, as well.
How long can this influx of foreign money into Treasury Bonds continue? ..Probably not much longer. Sooner or later, the European crisis will end and the big investors will probably move from bonds into stocks. When that happens, our mortgage rates will begin to rise.
As a prospective Homeowner or Investor, what does all of this mean to you? The bottom line is that you may never have a better opportunity to buy a home or an investment property. Give us a call and let’s discuss it.
WHAT SHOULD YOU LOOK FOR IN A REALTOR?
Today, there are approximately 3400 Realtors in the Pikes Peak area. …and every one of them is willing to put a sign in your front yard. But, if you really want to sell (or buy) a home in the Pikes Peak area as quickly as possible, you should utilize the services of an effective, proven Realtor who knows how to negotiate the best deal possible for you. Here are some of the things you should look for:
- Does your Realtor know what you should do to your house in order to make it more saleable? There are some “improvements” you might make that would actually reduce the price of your home (e.g. adding a swimming pool). Other improvements might only allow you to recoup the actual price of the improvement, but would make your house more interesting to prospective Buyers. Some improvements will actually net you more money than the improvement cost. A good Realtor can also advise you whether you should actually make improvements, or, adjust your sales contract with ‘allowances”. There are some improvements like painting, that influence Buyers more than a simple ‘allowance’ at closing.
- Does your Realtor know how to negotiate? Many contracts fall apart because of problems that a good Realtor can resolve. Tax implications, aggressive terms, allowances, are all specific items that can be negotiated in order to make the contract more appealing to both parties.
- Does your Realtor have good relationships with lending institutions? All banks are not alike. Just last week, we developed a good working relationship with a bank on the East Coast that will offer mortgage loans to our clients who work in specific professions. These loans require no down payment and waive several normal loan requirements.
- Does your Realtor know neighborhoods? Your Realtor should be able to give you a comprehensive view of the value of surrounding homes, tax histories, improvement histories, school systems, planned developments, etc.
- Does you Realtor have relationships with local suppliers to obtain special pricing? As with many areas of our lives, it’s not a matter of “what you know”, as it is “who you know”. We have special pricing worked out with many local service and product suppliers in order to make the most effective deals for Buyers and Sellers. Some of our ‘preferred pricing’ relationships are with Lowe’s, LazyBoy Furniture, Floorcraft. Sherwin-Williams, Staging companies, etc.
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 37 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.
Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us.
JOKE OF THE WEEK
Three contractors are bidding to repair some minor damage to the basement of the White House, one from Texas, one from Boston and one from Chicago. They go with a Secret Service official to examine the basement.
The Boston contractor takes out a tape measure and does some measuring, then works some figures with a pencil. "Well," he says, "I figure the job will run about $100,000: $40,000 for materials, $40,000 for my crew, $10,000 for the union boss and $10,000 profit for me."
The Texas contractor also does some measuring and figuring, and then says “I can do this job for $70,000: $30,000 for materials, $30,000 for my crew and $10,000 profit for me."
The Chicago contractor doesn't measure or figure, but leans over to the Secret Service official and whispers, "$72,000."
The official, incredulous, says, "You didn't even measure like the other guys! How did you come up with your bid?"
The Chicago contractor whispers back, "$1,000 for me, $1,000 for you, and we hire the guy from Texas to fix the basement."
