May 2, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET 

 

MARCH'S LOCAL ECONOMIC INDICATORS SHOW SPRINGS RECOVERY IS ON TRACK

The Gazette (Sunday, May 1, 2011) reports that seven out of eight March indicators show Colorado Springs is on track for a recovery.

The good news is that, in March:

  • Wage and Salary jobs were up .1%
  • Initial claims for unemployment were down 7.3%
  • The unemployment rate was down to 10.1%
  • New Auto and Truck registrations were up 40.6% (Thank you, Fort Carson)
  • Taxable retail sales were up .8%
  • Hotel occupancy rate was up to 56.8%
  • Foreclosure filings were down 42.1%

The only bad news was that single-family home permits were down 60.8%. Unfortunately, that segment of the market will continue to falter until the foreclosure and short-sales are absorbed.

 

SPRINGS ON TOP 10 LIST FOR EARLY HOUSING TURNAROUND

Colorado Springs is among 10 cities and metropolitan areas nationwide that are poised for an "early turnaround" in their housing markets, according to a study released this week.

Realtor.com, an arm of the National Association of Realtors, included Colorado Springs in its first-ever listing of cities and metropolitan areas where market conditions such as sales, prices and days-on-the-market were analyzed. Julie Reynolds, a Realtor.com vice-president said, "You're signaling signs that a turnaround may be in progress".

The survey collected data from 146 metro areas around the country which includes around 930 multiple listing services. Some 20 key measurements, including prices, inventories and new listings were examined for March, and compared with the previous month and with March of last year.

Among positive indicators for the Springs were:

  • Median list price of homes for sale in the Springs was $224,900, compared to $199,500 nationwide
  • March Inventory of homes in the Springs was 4.51% year-over-year increase over 2010. Nationally, the increase over 2010 was 9.75%
  • Median number of days on the market in the Springs was 113, as opposed to the national figure of 160.

 

WILL YOUR NEW HOME COST MORE IN SIX MONTHS? .THE STOCK MARKET SAYS, "YES"

The Wall Street Journal (April 27, 2011) reported that the Dow Jones Industrial Average soared 115.49 points (.9%) last Tuesday to finish at 12,595.37, a fresh three-year high. If there is one absolutely predictable certainty, it is that the stock market leads the national economy by two quarters. That being the case, you can count on the value of your present home to rise during the next six months and, if you are looking to buy, the cost of your new home will also rise.

Better call us today at  598-3200 or 800-677-MOVE (6683).

 

FOR THE SECOND STRAIGHT WEEK, MORTGAGE RATES DROP

Daily real estate News, April 29, 2011 

For the second straight week, mortgage rates continued to inch downward, according to Freddie Mac's weekly Primary Mortgage Market Survey.

The 15-year fixed-rate mortgage averaged 3.97 percent, the lowest since Dec. 9, 2010. Last week, it averaged 4.02 percent, and a year ago at this time it averaged 4.39 percent.

Meanwhile, the 30-year fixed-rate mortgage, the most popular choice among buyers, averaged 4.78 percent this week, down from last week's 4.80 percent. Last year at this time, the 30-year fixed-rate mortgage stood at 5.06 percent.

The 5-year adjustable-rate mortgage averaged 3.51 percent this week, down from last week's 3.61 percent average. A year ago, it stood at 4 percent.

Source: "Mortgage Rates Fall With Latest Economic and Housing Reports," Freddie Mac (April 28, 2011) 

 

IT'S A BUYERS' MARKET ..OR IS IT?

Traditionally, when the term "Buyers' Market" was used, it meant that Buyers had their pick of the market, Sellers were so desperate they would reduce their asking prices and Lenders were lining up to get your business.

However, in today's Buyers' Market, it ain't that easy. Although prices are well below what they were four or five years ago, Buyers now face several new hurdles.

First of all, Sellers are at the bottom of their negotiating space and cannot offer any further reductions in their asking prices, unless they are willing to consider a 'short sale'.

Secondly, the available 'deals' are being pursued by more and more prospective Buyers, so the bidding wars are cutting many people out of the game.

Third, many Investors are making all-cash offers for the available homes which leaves the typical prospective Buyers out in the cold.

Finally, Lenders have tightened-up their lending requirements with higher down-payment requirements, tighter credit requirements and higher fees.

So, our present 'Buyers Market' doesn't look like the traditional model.

What does this mean to you? Well, it emphasizes that, even in our present Buyers Market, you will need the assistance of an experienced Realtor who has detailed knowledge of the various neighborhoods in the area, good working relationships with ethical, reliable Lenders and great negotiating skills.

Call us at 598-3200 or 800-677-MOVE (6683).  

 

LET'S TALK ABOUT MORTGAGES

How much do you know about mortgages?

A recent survey by Zillow Mortgage Marketplace found that borrowers who received a home loan in the past five years spent, on average, five hours researching their options. That's about half the amount of time borrowers spent researching a car purchase (10 hours). What's more, nearly one-third spent two hours or less.

While a home purchase is typically one of the largest investments people make, the lack of mortgage knowledge can be a costly mistake. Here are a few basics about home loans that you need to know about.

1. What type of mortgage do you have?
Alarmingly, some people aren't even aware if they have a fixed-rate mortgage or adjustable-rate mortgage. Unlike a fixed-rate mortgage, an ARM can have low rates early on that later rise significantly over time, which from a financial planning perspective can become a costly surprise if the borrower isn't even aware they have one.

2. Do you have mortgage insurance?
Home owners who purchased a home with conventional financing and a down payment of less than 20 percent may not even realize that they likely are paying private mortgage insurance, which costs about $25-$100 extra a month. Once home owners have sufficient equity in their home (20 percent), they no longer need to pay mortgage insurance and should contact their lender for some savings.

3. Do you understand all of your loan options
Many borrowers don't understand all of the loan options available to them - conventional loans, FHA, VA, USDA, etc. Experts recommend researching and comparing various mortgage rates and loan types to see what works best for their situation.

4. Is there a prepayment penalty?
Some loans have a prepayment penalty if a borrower pays off the loan earlier than intended. Typically, prepayment penalties are charged when borrowers sell or refinance their homes in the first few years of the mortgage. FHA, VA, and USDA loans do not have prepayment penalties. But it's important home owners with other mortgages become aware whether their loan has a prepayment penalty and understand the pros and cons of accepting such a penalty, experts note.

5.  How are the mortgage rules changing ?

That's a great question. The feds are still in the process of revising down payment requirements, fees, etc. That's making it tough for both Lenders and Buyers to keep up with the latest rules and regulations. And that's the reason you need to deal with a knowledgeable Realtor .one who constantly studies the latest regulations and who has close, working relationships with ethical, reliable local Lenders.

We can save you money when you are looking for the best financing arrangements available. Call us at 598-3200 or 800-677-MOVE (6683).

 

THINKING OF SELLING?  WE CAN HELP YOU SELL YOUR HOME NOW ....WITH THESE TIPS

In a buyers' market, selling your home can be a frustrating lesson, especially if you make costly mistakes that can slow your sales opportunities.

If you work with us to avoid common seller mistakes, you can save yourself time and money. Let's take a look at a few of these common mistakes. 

  • Focusing exclusively on comparables. Yes, recent sales count. Studying and understanding the comps in your area will give you an idea about how much buyers were willing to pay for homes in your neighborhood in the recent months, but relying strictly on the comps is a mistake. We can help guide you in this area.

 

  • Take a close look at the homes that are currently listed for sale. How does your home stack up? What are the benefits of buying your home compared to the others on the market? What makes your home stand out? Salzman real estate Services can help you tailor your home's advertising and promotion to be as effective as possible to prospective Buyers. We will emphasize such benefits as : good schools, neighborhood parks, walking distance to retail stores, close access to freeways, quiet neighborhood, bright rooms, open floor plans, new appliances, etc.  

 

  • Make us aware of your improvements and upgrades. If you've put in a tankless water heater for instance, be sure to mention it. Make a bullet-style list, print it out, make copies, and leave it for open house guests. This additional sheet will help buyers remember specific details about your property and it will help your home stand out from the dozens of others that they might be viewing.

 

  • Work with Salzman real estate Services to establish a reasonable listing price. You will have to consider such factors as : when you purchased your home, current market conditions, economic factors, length of ownership, improvements, and how much time you have to sell.

 

  • Listing your home based on how much is still owed may result in an unreasonably high price. This can quickly result in a painful cycle of price reductions signaling to buyers that there's plenty of room to negotiate on price. 

 

  • Not making curb appeal into web appeal is another mistake. Curb appeal is the art of making your home appeal to buyers from the moment they first see your home. Some sellers think of this in terms of making their home appealing when buyers come to an open house or drive by it. But these days, curb appeal must transfer to web appeal, too. We specialize in taking your home pictures in the most appealing presentation possible.

 Call us at 598-3200 or 800-677-MOVE (6683).

 

MAY 17, 2011 IS ELECTION DAY FOR OUR MAYOR ...ATTEND THE DEBATE TONIGHT !!

Hear the Bach & Skorman debate the issues facing our city on May 2nd at 6 p.m. at the Pikes Peak Center.

Get the facts. Be informed when you cast your vote.

The debate is moderated by Phil Lane with a special introduction of the new city council members.

Tickets are $10. Refreshments, hors d'oeuvres and cash bar available at the reception immediately following the debate.

The candidates and council members will be available during the reception. Also contributing to the evening - Poet Laureate, James Ciletti and music by the Colorado Springs Conservatory.

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.

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,  please contact us. 

 

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

 

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