Real Estate Information

March 4, 2020

 

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.

 

LOTS OF GOOD NEWS THAT WOULD BE EVEN BETTER IF WE HAD MORE HOMES FOR SALE!

It’s been a busy month for February and no surprise in some ways.  This is usually a slower time of year but with so few existing homes available for sale, I’ve got buyers who are looking at every listing that even comes close to what they want, need and can afford.  

Let’s start with the Federal Housing Finance Agency’s (FHFA) just released House Price Index for the 4^th Quarter 2019.  Colorado Springs was ranked number two of the “Top 100 Metropolitan Statistical Areas (MSAs) in the USA. Our house price index increased 11.0% from 2018 Q4 to 2019 Q4.  And…it increased 4.2% from 2019 Q3 to 2019 Q4!

As I’ve been telling you, one of the reasons for such an increase is the lack of available homes for sale, which is creating even more of a seller’s market.  We are still seeing bidding wars and offers that come in above listing price as the norm these days.  And with more and more companies moving here and bringing with them relocated employees, it doesn’t appear that this will improve much until there are more homes for sale.  

This isn’t just a local problem.  With the spring buying season starting up, coupled with a strong labor market and a growing pool of millennials as would-be buyers, the competition all over the USA is going to be tough.  Some U.S. economists are predicting that home sales will be down—or flat—in 2020.  Considering that mortgage rates are still at historic lows, if there were more available homes, sales would be way up.  And despite the low rates, those home price increases are also starting to price first-time buyers out of the market.

Locally, Amazon is planning to hire 1000 folks for their enormous distribution center being built near the Colorado Springs Airport and Progressive Insurance just announced plans to hire 500. All of these folks are going to be looking for homes and adding to the housing shortage, as well as causing rental rates to remain high.  

Another interesting fact:  In late February, “The Report: State of Luxury 2020” by Coldwell Banker, which provides an in-depth look of emerging luxury markets and buyers, ranked Colorado Springs as one of the top 5 luxury markets to watch.  According to the report, the migration of new markets within the luxury sector are being driven by several factors including lifestyle preference, job opportunities, property value differentials, and a desire to reduce taxes.  Sales-list-to-price ratios, days on the market, median list price and inventory were also used in determining the top five.  Just another reason it’s tough to find a home here.

New homes are becoming more of an option than ever and the Colorado Springs area homebuilding is off to a great start in 2020.  The Regional Building Department issued 312 permits in February for the construction of single-family homes in El Paso County.  That’s nearly a 15% increase over the same period in 2019.  Those permits were the most issued for a February since 356 permits were issued in 2006.  And 2020 year to date, single-family building permits in El Paso County totaled 641—almost 49% higher than the 431 issued during the same period last year.

I’m finding a number of my clients are looking to new home construction and fortunately I have a good working relationship with a number of local builders.  That comes into play when my clients need help with site and home selection, and very importantly when it comes to finding the right lender for their budgetary requirements.  And…even more important—all of my advice and help comes at NO ADDITONAL COST to my client. 

Is new home construction is something you have considered?  If so, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help you determine the right move for your individual wants, needs and budget.  You might be surprised to find out what your current home is worth and now is a great time to put that hard-earned equity to work for you. But don’t delay…the line to purchase either an existing or a new home is going to be a lot longer as the spring buying season gets in full swing.

If 2020 is your year to make a move, it’s not too early to meet with me to discuss your plans—new construction, looking to buy an existing home or investment property—the sooner you start the conversation, the sooner I can help you can fulfill your residential real estate dreams.

And now for statistics…

 

FEBRUARY 2020 

Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS

Here are some highlights from the February 2020 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was 30.  For condo/townhomes it was 17.  

The sales price/list price for single family/patio homes was 99.8% and for condo/townhomes was 100.0%.  

Please click here to view the detailed 9-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

In comparing February 2020 to February 2019 for All Homes in PPAR:                      

                        Single Family/Patio Homes:

·       New Listings were 1,254, Up 3.2%

·       Number of Sales were 985, Up 6.7%

·       Average Sales Price was $386,749, Up 10.3%

·       Median Sales Price was $341,000, Up 8.3%

·       Total Active Listings are 1,085, Down 28.5%

·       Months Supply is 1.1, Down 4.2%

 

Condo/Townhomes:

·       New Listings were 214, Up 31.3% 

·       Number of Sales were 146, Up 9.8%

·       Average Sales Price was $254,572, Up 9.6%

·       Median Sales Price was $237,000, Up 10.2%

·       Total Active Listings are 112, Down 20.0%

·       Months Supply is 0.8, Down 2.0%

And a look at more statistics…

 

FEBRUARY 2020  LOCAL MARKET UPDATE  AND  MONTHLY INDICATORS  ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.  

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

• Sold Listings for All Properties were Up 4.5%

 

• Median Sales Price for All Properties were Up 10.3%

 

• Active Listings on All Properties were Down 33.5%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:

 

 

“SENIOR real estate SPECIALIST” IS A NEW DESIGNATION FOR ME

I just successfully completed a certification course to become a “Senior real estate Specialist” from the National Association of Realtors, which doesn’t mean I’ve been in the business for a long time, but of course—47 years later—I have.  It means that I am now even more educated in assisting those aged 50 plus in identifying their needs and how to make the best use of the home equity they have accumulated.  

For most senior adults, a home represents their largest asset and accounts for most of their net worth.  Understanding the distinct real estate goals, concerns and needs of seniors is vital in helping those folks determine their next steps in the housing arena.  There are key differences in housing options, from age-restricted communities to age-in-place design to assisted living;  applications of the Housing for Older Persons Act, the ins and outs of reverse mortgages,; the use of pensions, 401k accounts, and IRAs in real estate planning, reverse mortgage lenders, clutter and staging specialists and more.

While my extensive residential real estate experience, along with my investment banking background, make me more of an expert than many, this course presented new tools that I can use in helping the senior market.  This is especially important when you consider that adults aged 50 and over represent more than 20% of the U.S. population. 

If you fit into that category and have started considering what’s next—I’m your guy.  I can assist in helping you determine the right move for you—and more importantly—if I don’t have the answers—I know where to get them.  I’m here when you’re ready and look forward to helping you.

 

DON’T LEAVE TAX BREAKS ON THE TABLE WHEN SELLING YOUR HOME

Realtor Mag, 2.24.20

This is a reminder to ask your financial and tax advisors about the tax deductions you’re eligible for in a home sale.  As long as the costs are directly tied to the sale of the home, they may qualify for tax breaks.  

While 2018’s new tax code—aka the Tax Cuts and Jobs Act—changed some rules for homeowners, rest assured that if you sold your home last year (or are planning to in the future), your tax deductions when you file with the IRS can still amount to a sizable savings.

These include:

• Selling Costs
• Home Improvement and Repairs
• Property Taxes
• Mortgage Interest
• Capital Gains Tax for Sellers

You may be entitled to some or all of these deductions, so please be sure to check with your financial and tax advisors to determine how it applies to your individual situation.

 

FEATURED LISTING:

YOURS, HERE?  IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.

February 20, 2020

 

HARRY’S BI-WEEKLY UPDATE

                          A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.  

AHEAD OF THE CURVE…YUP…THAT’S ALWAYS MY GOAL…

As most of you know, several years ago I decided to add another designation under my name--“The real estate Therapist”.  I even went so far as to trademark it in the State of Colorado.  My reasoning was the realization that the service I provide my clients is 90% seasoned real estate professional and 10% “therapist”.  

The time I spend with clients prior to even beginning the home search gives me great insight into the family dynamics and helps me assist them in determining how best to make their wants and needs fit their budget and other requirements.  I often find that family members might have different wants and needs, yet obviously they need to come to a consensus prior to the housing search.  I take it all into consideration, help them reach a common goal, and do my best to manage the stress involved in the entire home buying and selling process. Thus, my role as “The real estate Therapist”.

Therefore, I was not entirely surprised when just this month there was an article on HousingWire titled “Some Homebuyers Value their real estate Agent as much as their Therapist” which went on to say that some homebuyers become best friends with their agents!  I’ve known this for as long as I can remember.  

The article went on to say that according to a new survey from Century 21, a majority of homebuyers and sellers say they value and confide in their real estate agents more than a therapist and know them better than their own neighbors.

After all, finding and having the “right” real estate professional by your side is so important in navigating through what for most is the biggest emotional and financial decision of their life.  It is my honor and privilege to have earned the trust and friendship of so many of my clients and their families, and it is not something I take for granted.

So…a big thanks to all of you for giving me that trust and for your friendship.  I look forward to working with you and your family members for many years to come.

 

Now on to some continued great news about Colorado Springs real estate…

 

COLORADO SPRINGS IS NUMBER ONE FOR HOME BUYERS IN RECENT NATIONAL SURVEY

National Association of Realtors, 2.19.20

The National Association of Realtors (NAR) has created the profile of homebuyers for each metropolitan statistical area (MSA) and I wanted to share this information with you—especially since Colorado Springs is right at the top once again.

Each year, the American Community Survey releases the Public Use Microdata Sample (PUMS) which include population and housing unit records with individual response information.  Focusing on homeowners who moved into their home within the last year, NAR was able to identify characteristics of the homebuyers and their homes at a local level.

In answer to the question of “Where are People Buying Homes?”— Colorado Springs was a resounding number one choice, followed by Las Vegas-Henderson-Paradise, NV, Cape Coral -Fort Myers, FL, and Phoenix-Mesa-Scottsdale, AZ.  

Based on the NAR’s Home Buyers and Sellers Survey, nationally a typical homebuyer was 46 years old and earned nearly $92,000 in 2017.  Our local typical homebuyer that same year was 38 years old with an average income of $82,489.

 

THAT BEING SAID…

Our biggest hurdle at the moment is a shortage of available homes for sale.  Just like the rest of the USA, the supply shortage is creating problems for those looking to buy, most especially for the entry-level buyers.  

Low mortgage rates and a strong job market and economy isn’t enough to help the Millennial and Gen X buyers coming into the very competitive housing market this homebuying season, due in part to rising prices and fast-selling homes.

Compounding the problem locally is actually the fact that we are the number one place in the nation where people want to buy.  As most of you may know, Amazon just completed the purchase of over 69 acres near the Colorado Springs Airport where they are building a 4 million square foot distribution center.  They are looking to employ 1,000 people, many of whom will be looking for a place to call home.  With only 1171 homes (1039 single family, 26 condos, 76 townhomes and 30 patio homes) listed for sale today in all price ranges on the Pikes Peak area MLS, you do the math!  

You might be interested to know that one year after Amazon announced its HQ2 move to Northern Virginia, home prices there were up 33% year-over-year!  With that came an even greater housing shortage, so once again, if you or a family member are wanting to sell and trade up…don’t delay. I cannot emphasize that enough. 

If you have even thought of selling your home to move to another neighborhood or to trade up, NOW is the time.  Not only will you get more than you might think for your present home, you might find with the low interest rates that your monthly payment won’t be much more than what you are presently paying since the low mortgage rates are offsetting home affordability issues at present. 

With so few existing homes available, yours will get more attention than in the past, and you might be surprised to find it in a bidding war—resulting in more money for you.  That’s just today’s reality.  

New construction starts are up locally and that’s been a great option for some of my clients.  I have a good working relationship with a number of local builders and can help navigate you through the new home buying market as well.  There’s no extra cost to you and with so many more options and decisions to make in that arena, my knowledge can be invaluable and save you both time and money.

This is a lot to consider if changing homes is in your near future.  However, with me by your side we can make it happen.  Just give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s work together to make all your residential real estate dreams come true.

 

NAR JUST RELEASED Q4 2019 RESULTS FOR MEDIAN SALES PRICES OF TOP 175 CITIES 

National Association of Realtors, 2.12.20

Colorado Springs is ranked number 26 of 175 cities in the NAR quarterly comparison of the top metropolitan statistical areas for median sales price of existing single-family homes, with a median price of $322,200 at the time of the survey.  The national average is $274,900. To see the complete list of 175 cities, in statistical order, please click here.  To see the alphabetical order, please click here.

NAR also included a survey of the qualifying income based on sales price for existing single-family homes in these same areas.  It was broken down by percentage of down payment.  This information only considers conventional mortgage loans.  A number of homebuyers in Colorado Springs choose to finance their homes through FHA or VA, which would be based on different income requirements.

Based on conventional mortgage loans, the qualifying income necessary at the end of the last quarter of 2019 in Colorado Springs was:

 5% Down:   $68,756

10% Down:  $65,137

20% Down:  $57,900

To see the report of all 175 cities, please click here.

 

WE CAN’T RELY ON LOW MORTGAGE RATES FOREVER

Realtor Mag, 2.7.20

Mortgage loan rates keep falling and sub 4% rates are improving buyers’ purchasing power, but higher borrowing costs will come at some point, according to Lawrence Yun, NAR’s chief economist.

He added that “at some point, mortgage rates are going to revert back to normal”, noting that the interest rate for a 30-year mortgage was 8.1% in 2000.

Affordability is still lower than historical norms even with today’s low rates and Yun says that the lack of available inventory is continuing to push prices higher.  He said that home ownership has remained flat since 2007 and the wealth gap between renters and homeowners is growing.  

A word to the wise----if you are thinking the low interest rates are here to stay---you might want to reconsider.  What goes down will eventually go up, and sometimes with little warning.

 

NOW A FEW 2020 real estate TIPS AND TRENDS

Rismedia, American Home Shield, 2.14.20

The new year and new decade will undoubtedly bring new trends to the residential real estate market and will see a continuation of some trends that currently affect both real estate investors and homeowners across the USA.  Low mortgage rates, a changing rental landscape, low inventory and other factors will shape 2020 and could influence the decisions to buy and/or sell real estate this year.

 

• Mortgage Rates Will Stay Low at Present.  The Fed has announced plans to keep short-term rates low for the time being, so homebuyers can expect mortgage interest rates to remain low through 2020. Sellers in 2020 can expect buyers to ask them to contribute towards closing costs.  Average closing costs will remain at about 2-5% of the price of the home.

 

• Landlords Will Face New Challenges.  Residential landlords in some areas will need to prepare for rent-control ordinances that could come into effect due to the rapidly escalating rental rates.  Also, with the high cost of homes along with inventory shortage, breaking into the investment market can be difficult in some areas.  Areas with especially high rental rates may find renters looking to move to more affordable areas or to purchase rather than rent if possible.

 

• Inventory Will Remain Low.  Millennials are starting to look at buying their first homes, so the number of homes on the market in desirable areas will remain low, and bidding wars may continue.  A number of baby boomers are either remaining in their homes longer or are looking to downsize into condos, townhomes or smaller homes, which will exacerbate the shortage of available properties on the market.

 

• Starter Homes Will Grow in Popularity.  Starter home construction is speeding up to meet the needs of younger homebuyers who want to purchase their first homes and older home buyers who want to downsize.  With unemployment and interest rates at record lows, and many millennials getting married and starting families, it’ll be no surprise to see newly built starter homes appearing on the market.

 

• Home Prices Will Slow, but Demand Concentration Will Increase.  With new jobs becoming increasingly concentrated around major city centers and in increasingly popular places like Colorado Springs, a growing portion of workers in the service industry will relocate to those areas to seek employment.  That means prices in those areas will continue to grow, but they can’t grow forever. Demand for housing in big markets like ours will continue to stay strong, so once more, if you’re thinking of making a move—now is the time.

 

February 5, 2020

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.

2020 IS OFF TO A VERY BRIGHT START…

I last wrote as I finished my annual “State of Residential real estate” presentation before the Colorado Springs City Council.  I hope you enjoyed looking at the slides I presented as much as City Council did.  There is so much to be thankful for as citizens of “Olympic City USA” but along with that comes challenges.  The most obvious is the shortage of available existing home listings.  Our local MLS listings are at an all-time low and that creates problems not only for those who want to sell and trade up or buy for investment purposes, but also for folks who are relocating to the Springs for employment or retirement reasons.

There’s a reason Colorado Springs shows up on so many “Top 10” lists, as those of us who live here know.  You just can’t beat the views, outdoor activities, relative low cost of living, sense of community and small business opportunities. Here are four recent rankings:

 

• The National Association of Realtors (NAR) ranked Colorado Springs among the top 10 metropolitan areas predicted to outperform the nation for at least the next 3-5 years.

 

• The Federal Housing Finance Agency (FHFA) ranked Colorado Springs 9^th in the U.S. for home price appreciation.

 

• NAR ranked Colorado Springs 5^th in the 20 Hottest Midwest Housing Markets in October 2019.

 

• Realtor.com ranked Colorado Springs 7^th in the Top 10 Housing Markets Positioned for Growth.

 

And just last month, Colorado Springs was ranked #13 on the prestigious New York Times’ “52 Places to Visit in 2020” list.  The Springs is the third highest ranked U.S. place among seven stateside locations included on this global list.  We earned this accolade thanks in part to being “the gateway to alpine vacationlands, the impending opening of the U.S. Olympic & Paralympic Museum, the soon to come zero-energy Pikes Peak Summit Complex and the flourishing culinary scene”. 

Our home appreciation is among the best in the nation and this is in part due to the lack of available homes for sale.  We are not alone in this trend, as there is also a national shortage of available homes.  The reasons are many and include the still historically low interest rates, the increasing rental rates, millennials finally deciding it’s time for home ownership, and folks staying in their present homes for considerably longer than in the past.  

New home starts are up locally, as you might imagine.  This has become a viable choice for a number of my buyers due to the lack of existing homes for sale.  Fortunately, I have a good relationship with a number of local builders and that has been a blessing for my clients.  I help them with site and home selection, as well as assist in finding the best lender for their individual needs.  And, this is provided at no additional cost to them. It’s obviously an invaluable service I can provide by helping navigate clients through the new home purchase waters.  I might mention that due to the rising cost of lumber and other materials, new homes are going to keep increasing in price, so if that’s on your horizon, NOW would be a great time to start the conversation.

Did I mention that I’m not called “Mr. Negotiator” for nothing?  This comes in handy for my clients not only when they are buying or selling an existing home, but also when looking to purchase new construction.

Speaking of negotiations, it’s so much more important these days to have a seasoned, knowledgeable real estate professional on your team.  My 47 plus years in the local arena, along with my investment banking background, has afforded me the opportunity to work in every type of cycle and to find the way to make all your residential real estate dreams come true.  I invest the time to find out your realistic wants, needs and budget requirements long before the search begins.  That way, when you find what’s right for you, we can make an offer quickly based on actual facts.  These days of multiple and over list price offers does not give you much time to make a decision. 

In fact, some of my clients, after losing a home or two of their choice, have made an offer on a home based on the listing and without ever having set foot in the home.  Unfortunately, that’s the reality today when we have only 1,190 homes available in all price ranges.  In the not so distant past, we would have almost 5,000.  You do the math.  It’s tough out there, but fortunately you’ve got a secret weapon—me.  And with me in your corner, you’ve got a far better than average chance of achieving your residential real estate goals.

If you’ve even considered the possibility of selling in order to trade up, now is a great time.  With so few homes for sale, yours would certainly get more than a few viewings and would likely sell quickly.  It might be necessary to lease your home back from the buyers if possible, in order to make your move, but you are likely to get top dollar for your present home.  You might even have more home equity than you’d expect in order to compensate for paying more for your next home.  With today’s low interest rates, that move could possibly translate to a monthly payment that’s less than you might anticipate.

However—you won’t know any of that until you give me a call.  We can sit down and take all of your personal information into consideration and see if a trade up home can become a reality for you.  Just give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s get the ball rolling.  

And now for statistics…

 

JANUARY 2020 

Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS

Here are some highlights from the January 2020 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was 28.  For condo/townhomes is was 22.  

The sales price/list price for single family/patio homes was 99.9% and for condo/townhomes  was 100.2%. 

Please click here to view the detailed 9-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

In comparing January 2020 to January 2019 for All Homes in PPAR:                       

                        Single Family/Patio Homes:

·       New Listings were 1,333, Up 6.6%

·       Number of Sales were 916, Up 1.6%

·       Average Sales Price was $375,516, Up 9.2%

·       Median Sales Price was $336,795, Up 11.0%

·       Total Active Listings are 1,190, Down 26.4%

·       Months Supply is 1.3, Down 17.0%

 

Condo/Townhomes:

·       New Listings were 200, Up 17.0% 

·       Number of Sales were 136, Down 4.2%

·       Average Sales Price was $268,866, Up 20.0%

·       Median Sales Price was $242,500, Up 18.6%

·       Total Active Listings are 126, Down 11.9%

·       Months Supply is 0.9, Up 2.8%

 

JANUARY 2020  LOCAL MARKET UPDATE   AND  MONTHLY INDICATORS  ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.  

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

• Sold Listings for All Properties were Up 0.2%
• Median Sales Price for All Properties were Up 10.5%
• Active Listings on All Properties were Down 30.8%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:

 

 

A 2020 ECONOMIC OUTLOOK ON real estate FROM THE NATIONAL ASSOCIATION OF REALTORS (NAR) 

RealtorMag, 1.16.20

 

Lawrence Yun, chief economist for NAR is predicting that a recession is unlikely this year.  According to him, “We expect 2020 will be a year of slower growth but not a recession year.  However, an all-out trade war would lead to an economic downturn in nearly every country, including the U.S.”

Here is the rationale behind his prediction…

1. Unemployment Stays Low … Phase 1 of the Trade Agreement with China takes pressure off industries that were feeling the effects of threatened tariffs.

 

2. MORTGAGE RATES TO SUSTAIN HOUSING DEMAND … Fed unlikely to raise rates in 2020 and given the existing conditions, home sales—existing and new homes combined—are expected to increase by a little over 4%, from 6 million in 2019 to 6.3 million in 2020.

 

 

3. MODEST IMPROVEMENT IN HOUSING SUPPLY …  Housing supply expected to improve this year, but the new supply still will not meet the demand that will be created in 2020 by new household formation, estimated at 1.2 million, and demolished or obsolete housing, estimated at about 450,000.

 

4. COMMERICAL … Bright Outlook for Multifamily and Industrial Properties.  Investors are expected to pay a premium for multifamily, industrial and warehouse properties because of low rental vacancy rates and the sustained demand for ecommerce sales. Low rental vacancy rates mean higher demand for apartments, especially more affordable ones to help the high rental rate burden for many.

 

 

UCCS ECONOMIC FORUM DASHBOARD

UCCS Economic Forum, College of Business, Updated 1.24.20

Here’s a look at the economic picture from a different perspective.  As always, I like to share with you the updated Dashboard from the UCCS Economic Forum.  You can click here to see both the National and Local economic “big picture”.

 

housing market’S “CHOKEPOINT” SHOULD BE FEATURED IN PRESIDENTIAL DEBATES

Housing Wire, 1.13.20

The lack of new supply has become the housing market’s “chokepoint”, driving costs of living higher, and should be at the forefront of the 2020 election debates, according to Lawrence Yun, Chief Economist for NAR.

Instead, there has barely been a mention, other than when former Democratic candidate Julian Castro made an issue about housing NOT being an issue. 

Yun said that the number of single-family homes for sale dipped to 1.45 million in November 2019, the lowest level for that month in a data series that goes back to 1982.  In the intervening years, the U.S. has added 96.5 million people.

“We have an acute housing shortage,” Yun said.  “Consequently, people’s rents and home prices are rising faster than income growth and have been for years.  This issue should be at the forefront of election debates.”

While some candidates have proposed plans to make public colleges and universities free, Yun suggested candidates look into ways to boost employment in construction.  

“No one has discussed ideas for making training in the construction industries free,” Yun said.  “There’s an acute shortage of workers, and the cost would be much less than college tuition.”

The housing shortage and subsequent rise in prices is an issue for us all one way or another and one we might consider addressing with our Congresspeople and Senators.  

January 27, 2020

 

***HARRY’S SPECIAL EDITION***

 

HAPPY MONDAY TO ALL…

It’s another gorgeous day here in Colorado Springs and I just finished presenting my 5^th Annual Forecast to our City Council this morning.  I again was asked to represent the Pikes Peak Area Realtors in presenting not only what happened in Residential real estate in 2019, but to give my “2020 Vision”—a look at what I believe will happen in our area this year.

I thought you also might be interested in the “State of the Colorado Springs real estate Market”.  As I’ve been telling you time and again, the local real estate market is HOT..HOT..HOT.  And... if there were more homes for sale it would be even hotter, if that’s possible.

Below is the outline of my presentation.  The slide show (exhibits referenced in outline below) can be seen by clicking here or on the link after the presentation.  

If you have any questions about this or any other real estate concerns, please call me at 593.1000 or email me at Harry@HarrySalzman.com .

         

         

         

        

        

        

 

        

Once again, to view the Exhibits mentioned above please CLICK HERE.

 

And now….Here is my 2020 Forecast…

 

       

 

       

 

       

 

       

 

       

 

So there you have it. 

Next week we return to our regular Bi-Weekly Update and will have the January 2020 PPAR reports with all the local Residential real estate statistics you’ve come to depend on.  And once more, if you have any questions, please give me a holler.

January 10, 2020

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.

A QUICK LOOK BACK…THEN SOME OF MY “2020” VISION…

2019 was an interesting year in local Residential real estate.  

Colorado Springs consistently ranked much higher than the U.S. average in terms of home appreciation once again and there are a number of reasons for this.  To begin with, the shortage of listings—the lowest number in decades—has continued to make this a seller’s market and along with that, we saw very short days on the market and sales prices over list price.  Bidding wars and all-cash offers did not give buyers much time to make a decision once they found a house they wanted to purchase.  

Lower than anticipated mortgage interest rates, still historically low, allowed more folks to consider selling their present home to trade up, but they were hesitant to list their home prior to buying, since it would likely sell much quicker than in the recent past.  Often the new purchase offers did not allow for any contingencies, therefore new ways of making offers were a necessity.  

Thankfully my clients had me—and “Mr. Negotiator” is one of my aliases.  If there was a way to make things come together, I could find it if at all possible.

Due to the Colorado Springs’ inclusion on so many “Top 10” lists (Best Place to Live, Best Place for Small Business, Best Place for Work/Life Balance, and more), it’s no wonder that a number of companies are relocating here and existing companies are growing and adding staff.  Along with them come relocated employees and others who are all looking for a place to live. 

As a relocation specialist, I’ve had a much more difficult time finding properties for those moving to the Springs.  There just aren’t many homes for sale.  It has even been tough to find places for these folks to rent while searching for a home.  Rental rates here are at an all-time high.  

This, of course, presents another problem.  I have a number of clients who are on the lookout for investment properties and with the listing shortage, there just aren’t a lot of those around either.

On top of all this—another “Top Ten”.  The National Association of REALTORS (NAR) has ranked Colorado Springs as number 9 of the top 100 large metropolitan statistical areas that are predicted to “outperform” in terms of residential real estate over the next 3-5 years.

New home construction was strong in 2019 and looks to continue that way into the foreseeable future with new home prices are continuing to rise as well.  This was an option for many of my clients in 2019 and I’m certain it will remain so in 2020.  I’ve got a good working relationship with many of the local homebuilders, so that helps when my clients are ready.  

I can help with site and home selection, as well as making certain that you can get the best financing to fit your individual needs.  And, of course, this comes at no additional cost to you.  It’s a excellent option for this coming year. Especially since your present home will no doubt sell quickly and you could more than likely lease it back from the new owner while your new home is being built.  

Lots of things to consider for sure.

Millennials are finally looking at homeownership and unfortunately are also facing limited options.  They are finding Colorado Springs a great place to call home and to begin raising families, interest rates are very favorable, but they are being held back due again to the listing shortage.

See a theme here?  If you’ve even considered selling your present home, NOW is the perfect time.  You’ve probably got more equity than you might imagine and when coupled with the low interest rates—it might just make sense for you to make a move now--and most likely you can ‘trade up”.

Yes, times are a bit challenging for Residential real estate, but if you know me at all—you know I relish a good challenge.  I’ve been in the local real estate arena for more than 47 years and have been around for all the cycles.  I know that ins and outs of doing whatever it takes for find solutions for most any of these challenges and my investment banking background gives me a heads up on the competition.  

I work with each client to determine their individual needs, wants and budget and work to make things happen.  If something is not in your best interest I’ll tell you so.  I’m in this business for long term relationships with my clients, not a quick sale. It’s been my pleasure to recently have worked with children and grandchildren of my past clients and I hope to continue that legacy.

A new year brings with it a lot of new hopes and dreams.  If Residential real estate is among your hopes and dreams for 2020, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them all come true.

And now for statistics…

 

DECEMBER 2019 

Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS

Here are some highlights from the December 2019 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was 31.  For condo/townhomes is was 26.  

The sales price/list price for single family/patio homes was 99.5% and for condo/townhomes  was 100.0%.  

Since this is also year-end, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2019 to 2018.  

Please click here to view the detailed 9-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing December 2019 to December 2018 for All Homes in PPAR:                        

                        Single Family/Patio Homes:

·       New Listings were 822, Up 14.6%

·       Number of Sales were 1,247, Up 17.2%

·       Average Sales Price was $364,584, Up 6.9%

·       Median Sales Price was $329,990, Up 9.7%

·       Total Active Listings are 1,302, Down 22.7%

·       Months Supply is 1.0, Down 1.3%

 

Condo/Townhomes:

·       New Listings were 121, Up 5.2% 

·       Number of Sales were 172, Up 18.6%

·       Average Sales Price was $249,551, Up 9.8%

·       Median Sales Price was $238,950, Up 11.1%

·       Total Active Listings are 131, Down 12.1%

·       Months Supply is 0.8, Down 0.6%

 

The Cumulative YTD Summary: (comparing Jan-Dec 2019 to Jan-Dec 2018)

                        Single Family/Patio Homes:

• New Listings were 18,559, Down 0.2%
• Sales were 16,060, Up 3.1%
• Average Sales Price was $366,371, Up 5.5%
• Volume was $5,883,918,260, Up 8.8%

 

Condo/Townhomes:

• New Listings were 2,454, Down 1.5%
• Sales were 2,232, Down 1.8%
• Average Sales Price was $247,958, Up 8.7%
• Volume was $553,442,256, Up 6.6%

A look at more statistics…

 

DECEMBER 2019 LOCAL MARKET UPDATE  AND MONTHLY INDICATORS  ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both Colorado Springs and Teller counties for Residential real estate.  

It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.  

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

• Sold Listings for All Properties were Up 5.5%
• Median Sales Price for All Properties was Up 9.1%
• Active Listings on All Properties were Down 30.3%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:

 

 

FHA LOAN LIMITS INCREASING THIS YEAR

Realtor Mag, 12.19

The Federal Housing Administration is increasing its loan limit for most of the country this year.  The FHA loan limit will be $331,760, increasing $17,000 from 2019.  This increase is due to the increase in home prices nationwide.

The increases for various U.S. counties can be significantly higher than that or even lower than they were in 2019, depending on home price increases in those areas.  The FHA is required by law to set single-family loan limits at 115% of median home prices.

New FHA loan limits in our immediate area are:

El Paso County:  $356,500

Teller County:  $356,500

Pueblo County:  $331,760

Fremont County:  $331,760

Also, the conforming loan limits for Conventional and VA loans will be $510,400 locally and VA will allow for no down payment to exceed that amount if the veteran has full entitlement available.

If you have any questions, please give me a call.

 

IMPORTANT NOTE—DO NOT ABBREVIATE “2020”….A WORD TO THE WISE

It is important to not abbreviate “2020” in official documents because security officials are warning that it can make it easy for scammers to commit forgery.  They say that the abbreviation makes it easy for scammers to change out the numbers on paperwork.  For example, if you write 1/10/20, it could be changed to read 1/10/2021.

It is best to not only write the year as “2020”, but also to write out the month.  The above mentioned date would read January 10, 2020.

Police departments across the U.S. are encouraging folks to do this and I concur.  It could save lots of trouble down the line. 

December 18, 2019

 

HARRY’S HOLIDAY GREETING

       

 

 

December 6, 2019

 

HARRY’S BI-WEEKLY UPDATE

           A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.  

LOTS OF GOOD NEWS BUT…

Colorado Springs keeps making all the Top 10 lists nationally which is great for our home appreciation values but…we just don’t have many homes for sale, especially in the mid-$300,000 range.  

Just last week the Federal Housing Finance Agency published it’s third quarter Home Price Index which included this:  “Colorado Springs, Colorado Ranked #9 in U.S. Home Appreciation”.

The study is a long-running and geographically comprehensive measure of house price appreciation in the U.S.A.  Colorado Springs is ranked #9 out of 100 metro areas with a weighted price appreciation of 7.4% over last year.  In comparison, the State of Colorado is ranked 25^th in the U.S. with a 5.1% increase over last year.

Below is a chart describing our home appreciation growth in detail: 

 

While all of this is great news and indicative of the economic and population growth of Colorado Springs, it is also a result of a shortage of existing homes for sale.  The lack of available homes for sale, along with a 20-year-low foreclosure rate, are contributing factors in the home appreciation we are seeing at present.

As you will see in the November statistics, listings were down 26.3 percent from October 2019 and down 2.6% from a year ago November. And while this time of year is traditionally slower due to the holiday season, I’ve still got a lot of folks looking to sell their homes in order to trade up or move to another neighborhood, but…it’s really difficult at present with so few homes from which to choose.  Those that do come on the market are selling quickly and there’s little time to commit to making an offer.  

Historically low interest rates and increased home equity are two of the big reasons that a number of folks are wanting to sell and trade up.  Monthly mortgage payments at today’s low rates are making it so much easier to purchase a more expensive home without the added burden of payments too much higher than you might be paying at present.  All in all, it’s a great time for pursuing your residential real estate dreams.

However, it is more important than ever to have a seasoned, knowledgeable real estate professional on your team when you are ready to consider your move.  My 46 plus years in the local arena coupled with my investment banking background give you the edge over the competition.  If it’s possible to make a deal, you’ve got me to negotiate for you.  And if it’s in your best interest to walk away from a possible deal, I’ll tell you that, too.  A “win” isn’t always a “win” if it isn’t in your favor for the long run.  I’ve been around for so many different cycles that I can give you advice based on facts, not fiction.  That’s one of the reasons I’m now working not only with past clients, but also their children and grandchildren.  After all, looking after the individual needs of each and every family member is my job and one I take very seriously. 

Our local homebuilders are seeing a lot of activity and that’s another area where I can assist at no additional cost to you!  I have long standing relationships with most local builders and can help you with site and home selection as well as assist you in finding financing that fits your particular needs.

If you’ve even considered a move, or even an investment home purchase, now is the time to give me a call.  It’s certainly not as easy a proposition as in the past, but with me by your side---I’ll work to make it as stress-less as possible.

Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com today and let’s see how we can work together to make your real estate dreams come true.

 

NOVEMBER 2019 BROUGHT MORE HOME APPRECIATION BUT FEWER LISTINGS

Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS

Here are some highlights from the November 2019 PPAR report.  Just a reminder that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was 27.  For condo/townhomes is was 17.  

The sales price/list price for single family/patio homes was 99.7% and for condo/townhomes  was 100.3%.  

Please click here to view the detailed 9-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

In comparing November 2019 to November 2018 for All Homes in PPAR:                      

                        Single Family/Patio Homes:

·       New Listings are 1,081, Down 2.6%

·       Number of Sales are 1,188 Up 8.4%

·       Average Sales Price is $365,218, Up 6.6%

·       Median Sales Price is $325,000, Up 7.3%

·       Total Active Listings are 1,667, Down 22.6%

·       Months Supply is 1.4

 

Condo/Townhomes:

·       New Listings are 150, Up 3.4% 

·       Number of Sales are 173, Down 4.4%

·       Average Sales Price is $248,247, Up 10.2%

·       Median Sales Price is $230,000, Up 7.5%

·       Total Active Listings are 152, Down 7.3%

·       Months Supply is 0.9

 

Now a look at more statistics…

 

NOVEMBER 2019 LOCAL MARKET UPDATE  AND MONTHLY INDICATORS  ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both Colorado Springs and Teller counties for residential real estate.  

It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.  

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

• Sold Listings for All Properties were Up 5.4%
• Median Sales Price for All Properties was Up 9.0%
• Active Listings on All Properties were Down 30.6%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:

 

FIVE REASONS TO SELL THIS WINTER

Keeping Current Matters, 12.2.19

Looking for a good reason to sell now?  Here are five of them!

1. Demand is strong.  Buyer demand remains strong throughout most of the country and especially here locally according to the latest Buyer Traffic Report from the NAR.  Buyers are ready, willing and able to purchase, and are in the market right now.  Often, multiple buyers are competing with each other for the same home.  

 

2. There is less competition now.  The shortage of existing homes for sale means your present home will get better exposure now.  With home equity rising in most homes, present homeowners have a pent-up desire to move and take advantage of that and the low interest rates.  With more homes on the market in the higher end range, you can your equity to work for you without increasing your monthly payment as much as when rates were higher earlier in the year.

 

3. Buyers are serious at this time of year.  Traditionally, homeowners thought of spring as a great time of year to list their homes when buyer traffic may be a bit higher.  This time of year, however, the buyers who are seeking a home, whether for relocation or otherwise, are serious ones.  They’re ready to make offers and ready to move.  Your present home may be just what they are looking for.

 

4. There will never be a better time to move up.  If you are looking to sell and trade up, now is the time.  There is more inventory at the higher price ranges.  This means if you’re planning on selling a starter or trade-up home and moving to your dream home, you’ll be able to do that at this time.  Demand for your present home is high at present.

 

5. It’s time to move on with your life.  Look at the reason you’re thinking of selling in the first place and determine whether it’s worth waiting.  Isn’t it time to go on with the life you want for you and your family?  Only you can answer that, but perhaps the time has come for you and your family to move on and start living the life you desire.

 

FORGET THE PRICE OF THE HOME.  THE COST IS WHAT MATTERS

Keeping Current Matters, 11.7.19

Home buying activity (demand) is up and the number of available listings (supply) is down.  When demand outpaces supply, prices appreciate, just as we are seeing locally.  Firms are starting to increase their projections of home appreciation going forward because of this.

While this may cause concern about affordability, a study was released by First American last month that explains how price is not the only market factor that impacts affordability.  Prices, mortgage rates and wages were studied from January through August, 2019 and here are the findings:

Home Prices:

“In January 2019, a family with the median household income in the U.S. could afford to buy a $373,900 house.  By August, that home had appreciated to $395,000—an increase of $21,100.”

 

Mortgage Interest Rates:

“The 0.85 percentage point drop in mortgage rates from January 2019 through August 2019 increased affordability by 9.7%.  That translates to a $40,200 improvement in house-buying power in just eight months.”

 

Wage Growth:

“As rates have fallen in 2019, the economy has continued to perform well also, resulting in a tight labor market and wage growth.  Wage growth pushes household incomes upward, and were 1.5% higher in August compared with January.  The growth in household income increased consumer house-buying power up an additional $5,600.”

When all of these market factors are combined, purchasing power increased by $24,500, thus making home buying more affordable, not less affordable.  This table explains it simply:

Bottom Line?  Do not focus solely on the purchase price of a home.  It is more important to focus on what you can afford to pay each month in terms of a mortgage payment because that is the dollar amount that will affect your budget.  It’s quite likely that you can afford to buy a more expensive home than you might have considered without paying more than you have budgeted for a monthly payment.

 

UCCS ECONOMIC FORUM DASHBOARD

UCCS Economic Forum, College of Business, updated 11.29.19

Here are the just published statistics for national and local economy, employment, real estate and much more from the UCCS Economic Forum.  Click here for the charts and if you have any questions, just give me a holler.

                                                                                

November 7, 2019

 

HARRY’S BI-WEEKLY UPDATE

                             A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.  

 

EXTRA***EXTRA***EXTRA

BREAKING NEWS

 

This news was just so good I couldn’t wait for the next eNewsletter to share it with you.  

For some time now I’ve been telling you about the popularity of Colorado Springs and our very healthy residential real estate market. Today, the National Association of Realtors (NAR) released a report that shows exactly that.  

The American Community Survey releases the Public Use Microdata Sample files every year, which include population and housing unit records with individual response information.  Focusing on homeowners who moved into their homes within the last year, NAR was able to identify characteristics of the homebuyers and their homes at a local level.

 

Where are people buying homes?

Comparing the number of buyers with the number of all homeowners, NAR identified the top 10 large metropolitan areas with the highest concentration of buyers:

1. Colorado Springs, CO (11.1%)
2. Las Vegas-Henderson-Paradise, NV (10.8%)
3. Cape Coral-Fort Myers, FL (10.6%)
4. Phoenix-Mesa-Scottsdale, AZ (10.0%)
5. Provo-Orem, UT (9.8%)
6. Tucson, AZ (9.3%)
7. Boise City, ID (9.2%)
8. Tampa-St. Petersburg-Clearwater, FL (9.2%)
9. Ogden-Clearfield, UT (9.0%)
10. Orlando-Kissimmee-Sanford, FL (8.9%)

Based on the NAR’s Home Buyers and Sellers Survey, a typical homebuyer was 46 years old earned nearly $92,000 in 2017. 

 

The profile of a typical Colorado Springs buyer is illustrated below:

 

NAR also released the areas with the highest concentration of sellers, and, as you might guess, Colorado Springs is nowhere near the top 10.  

While several cities in the top buying areas are also in the top selling areas, we are not even close to that.  Our shortage of available homes for sale is indicative of our lack of sellers in recent times.

The chart below identifies the typical home seller in Colorado Springs according to the survey:

 

 

Bottom Line? 

Colorado Springs is economically healthy and thriving, thanks in part to Mayor John Suthers and our City Council who have worked diligently to get us there.

If you’ve even considered selling, we’ve got a LOT of potential buyers for your home!  It truly is a Sellers Market right now.

Call me today at 593.1000 or email me at Harry@HarrySalzman.com and let’s talk about all of your residential real estate options.  

November 6, 2019

 

HARRY’S BI-WEEKLY UPDATE

                          A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.  

 

IS IT…

TIME TO SELL AND TRADE UP?  

BUY FOR THE FIRST TIME? 

CONSIDER PURCHASING AN INVESTMENT PROPERTY?  

When it comes to residential real estate there are so many variables in play whenever you decide to get in the game.  Mortgage interest rates and housing availability play the greatest roles in most all decisions and as I’ve been saying for some time now, there’s no “normal” anymore.  

The shortage of existing homes for sale are causing home values and prices to increase and driving folks to consider new construction, especially here in Colorado Springs.  Rental prices are the highest they’ve ever been, and some first-time buyers are being priced out of the market or find they are unable to qualify for a mortgage.  

Our booming economy and low unemployment rate, on top of being named “Best Place to Live in the USA” and so many other “bests”, is attracting new business to the area and along with them come transferees.  Ridiculously high real estate prices in states such as California and Washington are bringing more “transplants” to our city. 

Most all of these newcomers will need a place to live and they are vying for the few properties listed for sale.  They are also helping to drive up the prices and multiple offers, all-cash offers and bidding wars continue to be the norm.  

One of the reasons our local homebuilding is picking up speed is the lack of existing homes for sale.  Low interest rates are also driving folks to new construction.  The good news there is that those current homeowners who are looking to build will eventually put their present home on the market, hopefully easing the listing shortage. 

Homeowners are currently staying put in their present home longer than ever. Nationwide, homeowners are remaining in their homes typically 13 years, which is five years longer than they did in 2010.  Those who don’t trade up to a larger home or downsize when children leave are plugging up the market for those buyers coming behind them.  Nationally, inventory of homes for sale is as dismal as it is here. However, our home appreciation has been consistently higher than that of the USA in general, which is a blessing for us local homeowners.

Yes, it is going to cost you more than it might have two or three years ago, but the interest rates are still historically low, which can help to keep your monthly payment more manageable.  The longer you wait, the more it’s going to cost you.  

There are still homes available in most price ranges, but they go quickly—especially at the lower end of the spectrum.  Investors are still picking up homes whenever they can since there are more and more renters—either by choice or by necessity—and rental rates keep rising.

Residential real estate is a tough game to play these days and those who choose to play solo are going to get lost in the dust.  It’s more important than ever to have a seasoned, knowledgeable real estate professional by your side.  Sure, you can buy “on-line” but without an advocate you trust, “let the buyer beware”, as they say.  

I’ve been in the local real estate arena for more than 46 years and have seen as many cycles are you can imagine.  I know the “ins and outs” of them all and more importantly I know how to expertly negotiate so that you can get the home that best fits your wants, needs and budget.  It’s vital to answer those, and many other questions BEFORE you start to look because once you are actively looking, it’s too late. 

In today’s market you sometimes have to make a decision even before you set foot in the home.  I’ve had that several times in recent months with clients who missed out on previous offers and didn’t want to miss another one.  Risky?  You bet.  But when you’ve got me on your side, it negates a lot of the risk.  I know what’s out there as I’ve been around long enough to have seen a good number of the homes in this city being built.  Good school district?  Good neighborhood?  One that meets the needs of your family?  I can help you answer those questions and more.

If new construction turns out to be what you want or need, I’m your man there too.  I have a good working relationship with most of the area builders and can help you with site, home and builder selection, as well as help you secure the best financing for your individual situation. And did I mention?  All of this is provided at NO ADDITIONAL COST TO YOU.

There’s no better time than now to at least get answers to all the residential real estate questions you’ve had over the last few months or years.  I can help you with that, and if I don’t know something, I DO know where to get the answers.  That’s just another plus for you. 

Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com today and let’s see how we can work together to make your real estate dreams come true.

 

OCTOBER 2019 BROUGHT GAINS IN HOME VALUES AND A SLIGHTLY INCREASED NUMBER OF SALES

Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS

Here are some highlights from the October 2019 PPAR report.  Just a reminder that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was 29.  For condo/townhomes is was 17.  

The sales price/list price for single family/patio homes was 99.4% and for condo/townhomes  was 99.7%.  

You can again see from those statistics that buying a home in today’s seller’s market is not as easy as in the past, but with me on your side you’ve got a considerably better than average shot at it.

Please click here to view the detailed 9-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing October 2019 to October 2018 for All Homes in PPAR:                      

                        Single Family/Patio Homes:

·       New Listings are 1,467, Up 8.7%

·       Number of Sales are 1,448, Up 9.7%

·       Average Sales Price is $372,037, Up 7.6%

·       Median Sales Price is $335,000, Up 9.8%

·       Total Active Listings are 1,940, Down 18.3%

·       Months Supply is 1.3

 

Condo/Townhomes:

·       New Listings are 192, Down 9.9% 

·       Number of Sales are 209, Down 3.2%

·       Average Sales Price is $257,005, Up 12.0%

·       Median Sales Price is $230,000, Up 8.9%

·       Total Active Listings are 188, Down 4.1%

·       Months Supply is 0.9

 

Now a look at more statistics…

 

OCTOBER 2019 LOCAL MARKET UPDATE  AND MONTHLY INDICATORS  ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both Colorado Springs and Teller counties for residential real estate.  

It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.  

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

• Sold Listings for All Properties were Up 4.1%
• Median Sales Price for All Properties was Up 9.7%
• Active Listings on All Properties were Down 26.2%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:

UCCS ECONOMIC FORUM DASHBOARD

UCCS Economic Forum, College of Business, updated 10.31.19

Here are the just published statistics for national and local economy, employment, real estate and much more from the UCCS Economic Forum.  Click here for the charts and if you have any questions, just give me a holler.

 

housing market REMAINS STRONG WHILE ECONOMIC SLOWDOWN LOOMS

Freddie Mac.com, 10.31.19

In September 2019, the unemployment rate was 3.5% nationally, the lowest rate since December 1969.  While there appears to be a weakening in the manufacturing segment, the housing market remains on solid ground with housing starts, building permits, existing home sales and new home sales all significantly outperforming consensus expectations in August.  

Freddie Mac forecasts that the 30-year mortgage rates will be 3.7% for the remainder of 2019 and will tick up slightly to 3.8% in 2020.  They also forecast the market to remain firm with sales rising to 6.0 million for 2019 before increasing to 6.1 million for 2020.  Home prices are predicted to increase 3.3% and 2.8% in 2019 and 2020 respectively.  

As I mentioned earlier, the Colorado Springs area has consistently fared higher than national statistics and I expect that trend to continue into 2020.  

So once more….NOW is the time to make the move you’ve been considering!

 

real estate TRENDS FOR 2020

Rismedia.com, 10.19

No one can be certain where 2020 is going to take the housing market, but here are some projections to help you get an idea of what you might expect.

 

Generational Communities

Baby boomers and millennials are causing shifts in the market, especially when looking at the types of housing.  To begin with, baby boomers are reaching retirement age.  In fact, according to a study by Harvard’s Joint Center for Housing Studies, in 2020, one out of three households will be headed by someone over 65.  While some are downsizing, many seniors may opt for active living communities, including upscale apartments.

Millennials are now becoming parents and many young families will be looking for housing in what is dubbed “Hipsturbia”.  These are suburbs that are evolving on the outskirts of large cities and often consist of a more diverse community.  They are more pedestrian-friendly, as they promote public transit and keeping stores in close proximity.

 

Technology

Smart home technology is becoming more popular as new devices are released.  While this was slow to break through, it is gaining traction in popularity.  At the moment, security and energy management are still the top uses for smart home devices, but convenience is also a rising consideration.  The expansion of demand for tech friendly homes could affect buyers’ interest in a home as well as increase property values in 2020.

 

Affordability

As I mentioned earlier, there has been a steady rise in rent and home prices.  For minimum wage workers, fair market rent for one-bedroom rentals in 99% of counties in the USA is not affordable, according to the National Low Income Housing Coalition.  This could possibly result in a drop in first-time buyers or even renters, as both millennials and Generatiion Z struggle to make ends meet.  

The luxury home market saw its challenges in 2019 but 2020 may be a turning point as the market recently saw its first gain since 2010.

However, while rising home costs may prevent some from buying or selling in 2020, lower mortgage rates may enable others to reach their housing goals.  Rates are now lower than they were a year ago. So, again, if you’ve been thinking of getting in the market, NOW is a great time.