NEW HOME SALES SURGE IN SEPTEMBER WHILE PENDING HOME SALES ALSO IMPROVE
October 29, 2012
HARRY’S WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
NEW HOME SALES SURGE IN SEPTEMBER WHILE PENDING HOME SALES ALSO IMPROVE
Daily real estate News/October 25, 2012
The Census Bureau reported last week that new home sales posted their largest gain in over two years, rising 5.7% in September over August and 27.1% higher year over year. Median prices of new homes also rose 11.2% in August, the largest one-month increase ever recorded. And existing home sales are up 11% in September compared to the same time last year.
Economists are attributing this gain as a sign that the fundamentals of the economy are improving as unemployment rates improve and consumers become more confident.
When this is combined with reported increased housing starts, building permits and prices in recent months, it appears that there is a steady housing recovery underway. According to Barry Rutenberg, chairman of the National Association of Home Builders, “Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase, assuming they can qualify for a good mortgage under today’s exceedingly stringent guidelines.”
Home prices are inching up, foreclosure sales are falling and record mortgage rates are creating a greater urgency for those who are looking to buy. However, while the housing recovery is steadily increasing, there are still challenges—a number of underwater homeowners still waiting for prices to climb so they can have equity in their current homes before they move on and of course, access to credit remains tight.
No surprises here. We’ve been keeping you up to date on a weekly basis concerning the Colorado Springs market and want to remind you that if you are looking….the time is NOW. There are going to be fewer choices in the coming months and prices are sure to be higher. If you are looking to buy, sell, trade up, or simply looking for investment property, give us at call at 598-3200 and we will get right on it for you.
INTEREST RATES LOOK TO STAY LOW FOR THE FORESEEABLE FUTURE
During the recent Conference and Expo of the Mortgage Banker’s Association in Chicago, economists from that group predicted a similar forecast for housing and interest rates.
They concur that unemployment will be down, with home purchases loan originations going up and mortgage rates remaining low for now.
The big question in everyone’s minds is exactly how long rates will stay this low and how the increase in home prices will affect buyers. Again, let me remind you that there is no better time than NOW to make your move if that’s something you’ve been thinking about.
According to HousingWire, the U.S. added 4.8 million renters in the past six years due to the financial meltdown. What does this mean? We believe it’s a great opportunity in several areas. With mortgage rates at an all time low, hopefully some of these renters will become owners. For those that need to continue to rent for whatever the reason, there is a need for rental property and those of you who have waited might consider this a good time to start looking. We can help both of these groups and look forward to working with you. Just give us a call at 598.3200.
OPTIMISTIC HOUSING OUTLOOK—RISING HOME PRICES HELP ROAD TO RECOVERY
RISMedia/October 22, 2012
According to NAHB Chief Economist David Crowe, “we’re seeing a more robust housing sector than many other parts of the economy. One of the reasons is we have finally begun to see on a national scale that house prices are picking up again.”
He stated some of the factors that are carrying the housing momentum forward. Those include:
- Pent-up household formations
- Rising consumer confidence
- Increasing builder confidence in all three legs of the economy: remodeling, multifamily and single-family construction
- Growing rental demand
Colorado Springs is one of the metro areas included in the forward momentum and you don’t want to miss out on the opportunities out here. This won’t remain stagnant and all forward movement will inevitably include higher prices and increased mortgage rates.
NOTE TO POTENTIAL SELLERS: FIVE REASONS TO SELL NOW
Adapted from Keeping Current Matters/Nov 2012
1. Only Serious Buyers Are Out
At this time of year, only those serious about buying home will be looking. You won’t be bothered and inconvenienced by mere “lookers”. The lookers are out holiday shopping.
2. There Is Far Less Competition
The number of houses on the market shrinks dramatically this time of year. With fewer houses on the market in general, this will make your home more likely to sell. Waiting until Spring could be a mistake for those who seriously want to sell.
3. The Process Will Be Quicker
Both of this year’s biggest challenges—length of time it takes from contract to closing and lenders being inundated with purchase and refinancing loan requests—will not be in play here. Both will be slow in the winter, thus cutting timelines and frustration that these delays cause both buyers and sellers.
4. There Will Never Be a Better Time to Move-Up
If you’re looking to move up to a larger, more expensive home, you should consider doing it NOW. Prices are projected to appreciate more than 15% from the present to 2016. If you wait, it will cost more in raw dollars--both in down payment and mortgage payment.
5. It’s Time to Move On With Your Life
If you have already decided to sell, there is no reason to wait. The sooner you make the decision to sell, you can move on to whatever it is you want….a larger or smaller home, more time with family, retirement, or whatever it is you truly want to do with your life. That’s what’s really important in the long run.
IF YOU ENJOY READING OUR WEEKLY eNEWSLETTER….
Please consider forwarding it to any of your family, friends or co-workers who may benefit from it. They can then go to our Website and sign up to receive it themselves. Better still, send us their e-mail addresses and we will add them to our weekly mailing list. They will thank you for it and so will we.
LATEST LOCAL STATISTICS FROM PPAR
Click here to see the most recent Sales and Listing information for the Pikes Peak area.
These statistics are published by the Pikes Peak Association of Realtors and can be helpful in evaluating and comparing current listings in various neighborhoods in our area. If you have any questions about this data (or any real estate questions), please give us a call at 598-3200 or 800-677-6683 (MOVE).
And please remember, I would be honored to serve as your Broker for all your residential real estate needs. It is my goal to help you make the most prudent and accurate Real Estate decisions.
And if you know of anyone who wishes to buy or sell local real estate, or who is planning a move to the Pikes Peak region, remember—I’ve got more then 40 years of experience in providing relocation and Real Estate services to clients throughout the world. I am uniquely qualified to assist them in making the best decision for their individual wants and needs and always take that into consideration when negotiating on their behalf.
AND LAST, BUT NOT LEAST….
We want to welcome Stuart M.Vestal to the Salzman real estate Services team as our newest Broker/Associate. Stuart comes to us with vast experience in the home remodeling business in the Pikes Peak area for the last 12 years.
He previously lived in Florida where he assisted with staging for “Better Homes and Gardens” magazine as well as owned a home remodeling business there.
And also, we welcome a new assistant who is here to help you with any questions or needs. Sue Delano has replaced Anne Ganley, who recently retired. We wish Anne the very best and want to thank her for her 12 years of service to us and many of you.
Please join us in welcoming Stuart and Sue into the fold, and when you’re in the neighborhood, stop by and meet them and say his to us all.
FEATURED LISTING
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5062 Farris Creek CT
Beautiful Ranch Home with Finished Basement* Main Level Master Bedroom Suite* 5BD, 3BA, Media/Office, 2 Car Garage* Located on quiet cul-de-sac with numerous upgrades: hardwood flooring, ceiling fans, granite counter tops in kitchen* ML: LR/ Great R... |
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email: harry@harrysalzman.com
