Real Estate Information

July 9, 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.

         

AND HOW WAS YOUR INDEPENDENCE DAY?  (and yes, that’s a LIVE Bald Eagle!)

Carol and I were up in Breckenridge for the July 4^th holiday and while wandering around, we came across HawkQuest, a Colorado non-profit organization. Their goal is to bring eagles, owls, falcons and hawks to the public to make education of same both meaningful and fun, while creating an atmosphere which fosters respect of biodiversity, of the finality of extinction and of man’s need to nurture his world while discussing the raptors’ place in our ecosystem.  

And that’s how we came to meet Magissiwa (named for the Ojibwe word migizi,which means bald eagle).  We couldn’t’ resist having our photo taken with her, most especially since it was the Fourth of July.  What better day could we have found? 

In any case, she is quite a beautiful bird with a six foot wing span and a great personality and I wanted to share her picture with you.

I hope you all had a safe and happy holiday celebrating our great nation and most Importantly, the freedom that it provides us all.  I am especially grateful for the men and women in the military both present and past who have sacrificed so much in order to insure that freedom.  Thank you one and all.

 

NOW SOME real estate NEWS…

Just when it appeared that things were slowing down a bit--BOOM-- the mortgage rates went down, and it’s become quite busy again.  These last few weeks have again brought multiple offers, most over listing price, and at times, some disappointing news for buyers when they don’t get home of their choice for reasons we may never know. Sometimes it’s simply that the seller has several offers and doesn’t want to waste the time to counter, so they accept one of the offers as is.  Other times it’s the price offered or the closing time desired.  There are just many reasons, but it’s so difficult to have to explain to a client that they didn’t get “the” home.  It’s not a good feeling and I do everything in my power to try and prevent that from happening.

That’s where my 47 plus years of local experience is so important.  I’ve been around through all types of cycles and I know the “ins and outs” of getting a deal done.  That doesn’t mean even I can guarantee a client will get the first choice each and every time because, as I just mentioned, there are too many factors that are beyond my control in this fast-paced market.  However, I know how to negotiate on a client’s behalf and at times that means advising them to walk away.  As I’ve said in the past, sometimes NOT closing a deal is a win in the long run.

If you, a family member or co-worker are even considering a move…NOW is the time.  Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make your residential real estate dreams come true.

 

JUNE 2019 BROUGHT GAINS IN HOME VALUES AND A LOWER NUMBER OF SALES

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

Here are some highlights from the June 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 24.  For condo/townhomes is was 23.  

The sales price/list price for single family/patio homes was 100.1% and for condo/townhomes  was 100.2%.  

You can see from those statistics alone 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 June 2019 to June 2018 for All Homes in PPAR:              

                        Single Family/Patio Homes:

·       New Listings are 2,053, Up 0.1%

·       Number of Sales are 1,651, Down 5.0%

·       Average Sales Price is $373,792, Up 3.4%

·       Median Sales Price is $331,000, Up 1.9%

·       Total Active Listings are 2,122, Down 1.9%

·       Months Supply is 1.3

 

                        Condo/Townhomes:

·       New Listings are 251, Down 6.3%

·       Number of Sales are 192, Down 5.0%

·       Average Sales Price is $248,816, Up 8.1%

·       Median Sales Price is $240,000, Up 10.9%

·       Total Active Listings are 167, Up 18.4%

·       Months Supply is 0.9

As I mentioned earlier, I’m seeing more activity in recent weeks, so I expect these numbers to continue to rise.  With the lowered interest rates on mortgages, I’m finding that those who thought they had been priced out of the current market now realizing that they can not only get more for their present home but can benefit from a lower monthly payment than they anticipated on a new one.  

If a newly constructed home is under consideration, I can assist you with that, too.  I’m familiar with most of the new construction in the city and can help you with the site and plan selection as well as help you find the best financing to fit your individual needs.  And—did I mention that I provide all this at no additional cost to you?

Now a look at more statistics…

 

JUNE 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 geographic area 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 Down 5.2%
• Median Sales Price for All Properties was Up 2.9%
• Active Listings on All Properties were Down 16.6%

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 Colorado Springs:

 

 

BUYING AND SELLING RESIDENTIAL real estate CALLS FOR A SEASONED PROFESSIONAL.  WHO YA GONNA CALL?  

ME, OF COURSE.

Summit Daily News, 7.6.19, in part

real estate is often the largest financial investment and greatest asset of many families. Especially in today’s fast-paced market, it’s not one that should be undertaken without a knowledgeable, experienced professional in your corner.

Yes, technology is streamlining the process of both buying and selling residential real estate, but there’s something it just can’t do—replace the value and expertise of a professional, local real estate agent.

Beware of those companies that say you don’t need a Realtor because you DO need help in so many areas, most especially in education and ethics.

Here are a few things a professional Realtor brings to the table:

• Timely, Relevant Listing Information.  Not all local listings are on the Internet and many mass market sites are not updated frequently enough to stay current.  To get access to most of the listings in the Pikes Peak area you need to work with a Realtor who has access to the PPMLS and can have pertinent listings sent directly to you.

​

• Expert Market Knowledge.  A local professional like myself can provide you with expertise and knowledge of El Paso and Teller Counties that someone out of this market cannot.  Someone like me is engaged in the community, both professionally and personally.  I can help you find local sources such as plumbers, carpet cleaners and electricians and more.  I know the best suited areas for families as well as those for retired folks.  I work with your individual wants, needs and budget to direct you to the home that will make you happy for years to come. And because I live and work here, I can provide you with the most accurate comparables that no computer can possibly know.

 

• Full Access to Properties for Sale.  The only way you can gain access to a property is by using a Realtor.  You might see many photos on online sites, including PPMLS, but the only way to know for sure is to step inside, see the views for yourself and truly feel what it would be like to live there.

 

• Professional, Ethical Standards.  All members of the National Association of Realtors are required to take code of ethics class every two years. This class updates realtors on 17 articles within this code that address a realtor’s duty to clients, the public, and to other realtors.

What that means is that by hiring me as your Realtor, you’re ensuring that I will protect your best interests, disclose important information about the property, provide competent services and other important actions that maintain the integrity of your transaction.  My duty is to you and your goal becomes mine.

 

• Guidance Throughout the Transaction.  real estate professionals like myself are “guides” as we truly guide our clients through a long and oftentimes complicated process.  Navigating and negotiating details every step of the way is important and this is an area where I shine brightly.  I know how to not only negotiate expertly on your behalf, I can also lead you to the right lender for your specific needs.  

 

Next time you or someone you know thinks that they can save money and/or time by purchasing real estate online, remember these essential points and ask yourself, or them, whether or not it’s wise to place such an important investment in the hands of a computer.  

 

And then call me.  

 

MORTGAGE RATES HAVEN’T BEEN THIS LOW SINCE 2016

Realtor magazine, 6.28.19

The 30-year fixed-rate mortgage has dropped for the seventh time in the last nine weeks, reaching the lowest average since November 2016, according to Freddie Mac in its weekly mortgage market survey last week.

“While the industrial and trade related economic data continues to dominate the news, the drop in mortgage rates over the last two months is already being felt in the housing market,” say Sam Khater, Freddie Mac’s chief economist.  “Through late June, home purchase applications improved by five percentage points compared to the previous month.  In the near term, we expect the housing market to continue to improve from both a sales and price perspective.”

Once again, just one more reminder that if you thought you missed the historically low interest rates…they’re back.  No one knows how long they will be here, but while they are, if you’ve waited…NOW is the time.

 

UPGRADES BOOST A HOME’S SALE PRICE

USA Today, 6.28.19

Getting a home ready for sale can seem overwhelming at times, especially in knowing what to fix or replace in order to get the most dollars possible.  Again, just a reminder that this is where someone like me can give you advice that will help show the house in the best possible way.

The most important thing to consider is looks.  A home that has a new roof, windows or HVAC system may be important to a buyer, but if the home is not visually appealing most buyers will cross it off their list.  

Some things to consider:

• Groom your yard.  A minimal outdoor spruce-up can add as much as 5% to the sales price.  Today’s buyers, especially the younger generation, consider outdoor space an added value—sometimes more important than a remodeled kitchen.

 

• The kitchen is key.  Inside, the kitchen is the most important room, according to real estate agents.  But don’t bother with a complete renovation as most return just 51 cents on the dollar according to Zillow. Rather, a smart cosmetic makeover will do the trick and raise the sales price by roughly 5%.  This could include new appliances, countertops and floors that coordinate.

 

• Appearance inside counts, too.  Painting inside can help make a home feel new.  In Colorado Springs the average cost to paint an entire interior runs between $3000-$4,000 but it adds stronger marketability to the home.  “Smart” features are a plus, especially for younger buyers, and enabling a thermostat, doorbell, lock, camera and speaker costs around $1500 and can boost a home’s sales price by up to 5%, they added.

 

These are just some ways to help you prevent doing things that are not going to reap returns and to show you where you can do others that will boost the sales price and give your home the best visual appearance to a potential buyer.  

Each home is different, though, and when we get together to list your home, I can provide you with what I believe will help you get the most “bang for your buck” and bring offers to the table.  I can also recommend professionals who I know and trust to help you get the job done on a timely basis and at a reasonable cost.  This is just one of the many things I bring to the table when I’m working for you

 

June 24, 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.

 

 

LET’S TALK ABOUT INVESTMENT PROPERTIES…

I’ve been giving you my thoughts on investment properties for quite some time now and as you will see below, it appears that the national media and real estate professionals are on the same page with me

Local home values have outperformed the stock and bond market over the long haul and those who have added investment properties to their portfolios are seeing significant gains and are likely to continue to do so.

Among the reasons…with home prices, especially our local ones, increasing monthly, there are a number of folks who are cannot qualify for mortgage loans.  Local property taxes are also looking to increase, as indicated by the new home value assessments that recently went out to all homeowners in El Paso County. 

This is putting pressure on the rental market, where there is a shortage of available units. Rental prices are continuing to escalate and there is little sign that this will change.  

While the articles below are from national publications, it’s important to remember to localize…localize…localize.  The Colorado Springs home market is faring considerably better than the national average and while the national median prices are relatively flat at present, our median prices have continued to rise monthly.  The reasons for this are many and include local economic factors such as job growth, sales tax increases, corporate relocation and more.  And with Colorado Springs appearing in so many “Top Places to Live” lists and more, we can expect our city to continue to grow and prosper.

I’ve seen an increase in clients who are either adding to their investment property portfolio or purchasing investment properties for the first time.  And, as most of you are aware, I put my money where my mouth is—I’ve always been a real estate investor and will continue to be one.

As always, it’s important for you to check with your tax and financial advisors before you delve into the investment property market to make certain that this is a viable alternative for you.

If you’re ready, I’m ready to help.  My 47-plus years of local experience comes into play in investment property sales too, as I’ve been investing in properties for almost all of those years and have helped a number of clients do the same.  I can give you the pros and cons of owning investment property.  Not everyone is meant to be an investor and/or landlord, but for those who are willing to invest the time and money, it can be a rewarding.  

I’ve been around through all types of cycles and know the ins and outs of getting a deal done. That doesn’t mean even I can guarantee you’ll get your first choice each and every time because there are just too many factors that come into play in this fast paced market, but, I know how to negotiate on your behalf and also know when to advise you to walk away. Sometimes not closing a deal is a win in the long run.  

So if you, a family member or co-worker are even thinking of looking for an investment property…or a new home for you….NOW is the time.  Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make all your residential real estate dreams come true.

 

INVESTORS BUY HOMES AT UNPARALLELED RATE

The Wall Street Journal, 6.21.19

Escalating home prices have not dampened the demand for investment properties as big private equity firms, real-estate spectators and others that buy properties to turn into rentals have increased the share of investor purchases of U.S. homes to a record high.

These purchases made up more than 11% of U.S. home purchases in 2018, according to data released by CoreLogic, Inc. last week.

This is posing a challenge for millennials and other first-time buyers who are increasingly looking to buy starter homes and are forced to compete with deep-pocketed cash buyers.

Many economists credit investors with helping to stabilize the housing market in 2011 and 2012 by buying with cash when prices were low and mortgage credit froze.  Those purchases were expected to slow as the market rebounded and properties could no longer be had for bargain basement prices.  

Instead, the demand for investment properties has intensified. Strong rental demand and low interest rates that make other investments less appealing have fueled investor appetite.

 

SCARED OF STOCKS IN TODAY’S MARKET?  BUY A HOUSE INSTEAD

Bloomberg.com, 3.21.19

This is from an article that I have been providing to my investor clients since it was published in March and I thought you might find it insightful.

 

real estate may be a better and safer investment than you might have thought.  

Based on previous understanding, it has been widely accepted that equities yield real returns much higher than those of government securities.  By most estimates that gap is about 6.5 percentage points; while government bonds might offer an average return of about 1 percent a year, for example, equities return about 7.5 percent a year (the precise figures depend on the data sample). Equities, however, are much riskier, and so there is a trade-off between risk and return.

The returns to real estate are harder to measure, both over time and across countries.  One difficulty is measuring the “imputed rent” return—that is, if you buy a house you also get the pleasure of living there and don’t have to pay rent elsewhere.  But many analysts doubted whether the return to U.S. housing was robust over, say the 1890-1990 period.

The authors of “The Total Risk Premium Puzzle” have constructed a new database for the U.S. and 15 other advanced economies, ranging from 1870 through the present and their striking finding is that housing returns are about equal to equity returns, and furthermore housing as an investment is significantly less risky than equities.

An obvious implication from this study is that many people should consider investing more in housing.  The study shows that the transaction costs of dealing in real estate probably do not erase the gains to be made from investing in real estate, at least for the typical homebuyer.

Furthermore, due to globalization, returns on equities are increasingly correlated across countries, which makes diversification harder to achieve. This is less true with real estate markets, which depend more on local conditions.  Once again… localize, localize, localize!  The Colorado Springs market is thriving.

As I mentioned earlier, a check with your tax and financial advisors is advisable and prudent prior to making any type of investment. And, if a real estate investment is in your future...I’m your guy and you know where to find me.

 

COLORADO SPRINGS JOB MARKET IS ONE OF THE BEST

The Gazette, 6.12.19

A survey by staffing giant Manpower expects to show Colorado Springs as one of the nation’s top job markets—tied for #14 with Provo, Utah--in the third quarter of this year.  

The Springs ranked just ahead of Denver and five other cities. The “net” employment outlook—the difference between the percentage of employers surveyed expecting additional hiring and those forecasting cuts—is projected at 30%, the same as the third quarter of last year but up from 21% in the current quarter.  The survey found that 34% of employers anticipate staff expansion and 4% foresee reductions.  The rest expect no changes.

These results come as our area’s unemployment rate is at 3.9%, a 10-month low and amid slowing labor force growth and continued gains in employment.  Employers in all 13 local industry sectors reported strong hiring plans, led by business and professional services and leisure and hospitality.

So, once again, a note to investors—all these new hires are going to need places to live—and a number of them will be renters at first. 

 

LOW MORTGAGE RATES REVIVE EXISITING HOME SALES

Rismedia.com, 6.23.19

“The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,” according to Lawrence Yun, chief economist at NAR.

However, compared to last May, sales are still subpar, down 1.1 percent nationally. 

 

 

“More new homes need to be built,” says Yun, “Otherwise, we risk worsening the housing shortage, and an increasingly number of middle-class families will be unable to achieve homeownership.”

A note to anyone who has been sitting on the fence---with interest rates historically low and home prices on the rise—NOW is the time to make your move.  Call me and let’s see what options are available.

 

 

 

 

June 10, 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 POSITIVE STUFF GOING ON…

Let me begin by saying I haven’t forgotten you.  The reason you haven’t received my e-Newsletter for a month is because my editor has been on overload and couldn’t fit me in. And since I’m married to her, I have learned that my priorities don’t always come first!  We should be back on track now and if you’re new to reading this…welcome.  If you’re an established reader, welcome back.

There’s a lot going on both locally and on the national level in residential real estate. I think it’s important for you to understand that when it comes to the housing market it always needs to be looked at in terms of local metrics.  A good example is that while the national median prices are relatively flat at present, our median prices have continued to rise monthly.  The reasons for this are many and include local economic factors such as job growth, sales tax increases, corporate relocation and more.  Our job market continues to improve, with the local unemployment rate falling for a third straight month in April to a 10-month low of 3.9 percent.  And with U.S.News and World Report naming us the “Third Best Place to Live in the USA” once again in 2019, we can expect our local residential real estate market to continue to grow.

Just as important is the local leadership and plans for future growth.  We are fortunate to have Mayor John Suthers at the helm of all this and I have no doubt that Colorado Springs is positioned for continued economic and social growth for many years to come.  

That being said, one thing we do have in common with the national market is our lack of inventory. If there were more homes available for sale, we’d be seeing even greater growth.  I believe the recent decline in mortgage interest rates will help to motivate some folks that have been sitting on the fence as well as those who thought they had missed out on the historically low rates into action. Yes, homes are costing more, but you will also get more for your present home if you are considering trading up or moving to a new neighborhood.  And with the lower interest rates, monthly payments will make it more affordable to sell and trade up or even to purchase for the first time.  That’s why it’s worth considering the potential monthly payment rather than simply the growing housing prices.

I’ve told you time and again the importance of using a seasoned professional like myself when it comes to any residential real estate purchase and it’s more important in today’s market than ever.  With a climate of multiple bids within an hour of a home being listed and offers over asking price, you need a good negotiator in your corner.  

That’s where my 47 plus years of local experience comes into play.  I’ve been around through all types of cycles and know the ins and outs of getting a deal done.  That doesn’t mean even I can guarantee you’ll get your first choice each and every time because there are just too many factors that come into play in this fast paced market, but, I know how to negotiate on your behalf and also know when to advise you to walk away.  Sometimes not closing a deal is a win in the long run.  

So if you, a family member or co-worker are even thinking of looking….NOW is the time. Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.comand let’s see how together we can make your residential real estate dreams come true.

 

MAY 2019 AGAIN BROUGHT GAINS IN HOME VALUES AND LOWER NUMBER OF SALES

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

Here are some highlights from the May 2019 PPAR report. 

Just another reminder that thePPAR report is in a new format and no longer provides a look at the monthly stats for each neighborhood.  However, if you are interested in what’s happening in your individual neighborhood, I can provide it to you through other means.

In El Paso County, the average days on the market was 25 and the Sales Price/List Price was a very high 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 May 2019 to May 2018 for All Homes in PPAR                                                              

                        Single Family/Patio Homes:

·       New Listings are 2,114, Up 1.6%

·       Number of Sales are 1,564, Down 0.3%

·       Average Sales Price is $372,416, Up 4.6%

·       Median Sales Price is $329,250, Up 3.8%

·       Total Active Listings are 1,849, Down 1.9%

·       Months Supply is 1.0

 

                        Condo/Townhomes:

·       New Listings are 271, Up 12.9%

·       Number of Sales are 190, Down 4.0%

·       Average Sales Price is $246,435, Up 9.4%

·       Median Sales Price is $233,750, Up 11.3%

·       Total Active Listings are 165, Up 50.0%

·       Months Supply is 0.9

Spring buying started off slowly across the country as well as locally due to the inclement weather and lack of listings.  According to Lawrence Yun, NAR Chief Economist, the housing market in general is “underperforming in relation to economic performance, with job creation and lower mortgage rates”.

However, I believe it will pick up locally and those who are looking to move and trade up will have plenty of takers for their present home.  The days of multiple offers, many accepted almost immediately after listing, are still here and it’s making things difficult—especially for first time buyers. 

If a newly constructed home is in your future, I can assist here, too.  I’m familiar with most of the new construction in the city and can help you with site and plan selection as well as helping you find the best financing for your individual needs.  And—did I mention that I provide that all at no additional cost to you?  

And now a look at more statistics…

 

MAY 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 provides 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 geographic area 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 Down 1.8%
• Median Sales Price for All Properties was Up 4.9%
• Active Listings on All Properties were Down 11.6%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographic 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 El Paso County:   

 

UCCS ECONOMIC FORUM REPORT SHOWS INCREASED CONSUMER CONFIDENCE

UCCS Economic Forum, College of Business, updated 5.30.19

As always, I like to share with you the updated reports I receive due to my sponsorship of the UCCS Economic Forum.  These reports show in graphic form the “Big Picture” of the U.S. in general as well as the local outlook.

Included in the local statistics are: Local Employment/Wages and other employment factors as well as demographics of Population Growth, real estate Sales, Tourism and more.

Click here to view this informative report can be seen in its entirety. If you have any questions, please give me a holler.

And more importantly, please be sure to save the date--October 10, 2019--for the always sold out UCCS Economic Forumto be held at the ENT Center.  More details to follow in future e-Newsletters.

 

MORTGAGE RATES FALL BELOW 4%, CREATING OPPORTUNITIES THAT SOME THOUGHT WERE GONE FOREVER

The Wall Street Journal, 5.31.19

Great news as I mentioned earlier.  Mortgage rates are at their lowest in a long time and locally we saw them drop to 3.25% for a 30-year, fixed-rate FHA/VA loan on Friday, June 7, 2019. What this means to you is that, while homes prices continue to rise locally, a drop in mortgage interest rates equals a lower monthly payment than you might have had to pay even a month ago!  

With the economy continuing to hold steady, it’s anyone’s guess how long these rates will be in effect, but they are here now.  If you’ve even considered a move, now is the time to see if we can put your needs, wants and budget to work and make this dream a reality. Call me today and let’s get started.

 

COLORADO SPRINGS RESIDENTS SEE HIGHER CREDIT SCORES IN 2019

The Colorado Springs Business Journal, 5.16.19

More than half—51.6 percent—of Colorado Springs residents improved their credit scores between the first quarter of 2018 and the first quarter of 2019 according to a recent report by Lending Tree, an online lending marketplace.

Colorado Springs had the eighth-highest rate of residents who raised their credit scares over the last year, with nearly 30 percent of people seeing their scores rise at least 25 points, 16.8 percent rose at least 50 points, 8.5 percent saw a 75 percent improvement and approximately 4 percent saw their scores increase by more than 100 points, the study found.

What this means is that more and more folks here can qualify for the best rates on mortgage loans and that translates into real dollars when it comes to monthly payments.  

“Increasing your credit score is a slow and steady process. It takes time for these changes to accumulate over time, and for negative information to drop off your credit report,” the report states.  “But if you are consistent with these steps, the results of our study show that you can increase your credit score over time—and indeed, many people are successful in doing so.”

Bravo to us!

 

April 23, 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.

 

JUST WHEN I THOUGHT THINGS COULDN’T GET CRAZIER IN THE LOCAL housing market…

It’s been a wild couple of weeks in local residential real estate. The spring buying season is in full swing, but unfortunately for buyers…there just aren’t a lot of homes for sale. This isn’t just a local problem, as the sale of existing homes nationally fell 4.9% in March even with the low interest rates and booming job market and economy.  

According to Lawrence Yun, NAR chief economist, “It is not surprising to see a retreat after a powerful surge in sales the prior month. Still, current sales activity is underperforming in relation to the strength in the job markets.  The impact of lower mortgage rates has not yet been fully realized.”

On the other hand, home appreciation locally is good,with the average price increase greater than 3 percent and the median price increase greater than 5 percent, based on year-over-year numbers. When you compare that to the price increases nationally you can begin to understand that the Colorado Springs housing market is performing considerably better.  Colorado Springs is ranked #28 out of 178 Metropolitan Statistical Areas in terms of appreciation.  

Our relative strength is one good reason to be looking to buy-- either to sell and trade up or for first time or investment purposes.  And herein lies the problem.  The shortage of listings is making home purchases tougher than usual.  There are homes available, but you may not get your first or sometimes even second choice. You have to be vigilant in your search and jump right in when you find what you are looking for.  There’s no time to waste in making an offer, so you have to do your homework beforehand to know what you want, need and can afford. 

Let me tell you about the last eight days in my residential real estate life.  I’ve had a number of folks looking to buy, both for primary homes and for investment property.  The shortage of listings has made it very difficult.  

I had five deals in which offers were extended.  Two were for sellers and three for buyers.  ALL five escalated into bidding wars with price offers at over listing price!  Most of these were on the first day of listing.  And all were in the $300-350K range.  

In several instances I advised my sellers to walk away.  As someone who’s seen it all in my 47 years selling local real estate, I am aware when a good deal becomes not so good in terms of how it will affect my client in the future.  They may win the battle (bid accepted) but lose the war in terms of what the home is actually worth.  

Not all realtors have been around for as many cycles—up and down—that I’ve seen.  A seasoned realtor will know when it’s in the best interest of their client to walk away. As much as someone may want a certain home, it’s often better to take the extra cash and fix up another one rather than overpaying.

I’ve also been fielding cold calls from individuals looking for homes to rent.  A number of these folks either can’t afford or can’t qualify to buy at present.  Unfortunately, there just aren’t many rentals to be had. That’s one of the reasons why I’ve had a number of clients looking to buy investment properties—as many as I can find!  They are not getting any cheaper to buy, and again, there just aren’t many homes for sale, period.

If you’ve been considering a move, NOW is the time.  You obviously need to know where you might be going next since homes are selling so fast, but you will likely get top dollar for your present home, which will help with the down payment on the new one.  And with interest rates still historically low, it’s a win-win.

There are a number of things to consider depending on whether it’s a first-time purchase, a sale to trade up or if you are looking for a real estate investment.  Lucky for you—you’ve got me.  With my 47 years of experience and prior investment banking background, I can help you decide the right way to go for your individual situation.  I’ve seen it all and I know the ins and outs of writing an offer that at least stands the chance of a second look.  

If you, a family member or co-worker are ready to start thinking about making a move…I’m willing and ready to help.  Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s get the ball rolling.

 

COLORADO SPRINGS RANKED NUMBER 3 IN ‘BEST PLACES TO LIVE’ SURVEY

The Gazette, 4.9.19

In the U.S. News & World Report’s recent “Best Place to Live”, Colorado Springs was ranked third, just behind Denver and Austin, TX.  We traded places with Denver this year, but since both are Colorado cities in close proximity, it’s a win for both cities.

According to Devon Thorsby, real estate editor for U.S. New & World Report, “The fact that both Colorado Springs and Denver rank so highly and are within easy driving distance of each other shows that they are able to benefit from each other’s success. Denver continues to grow in population faster than the Springs, but home prices and rents are lower in Colorado Springs.”

 

SUCCESS DICTATES COLORADO SPRINGS NO LONGER A ‘CHEAP’ PLACE TO LIVE

The Gazette, 4.19.19

A booming economy and hot real estate market that has helped create Colorado Springs as one of the nation’s most desirable cities has a downside, too.  The local cost of living is significantly higher than it was, as measured by several benchmarks, and is either equal to or somewhat greater than the national average for the first time since the late 1999’s and it continues to climb.

The cost of living in the Springs grew 7.1 between 2016 and 2017, more than twice as fast as the national average, ranking the city as the ninth-fastest growth among the 50 largest metropolitan areas.

Local costs increased even faster the following year at 19.5 percent, or 2 percentage points above the national average, ranking 14^th.  This year, however, the cost of living has slowed, rising only 8.3 percent, or slightly more than half as fast as the national average of 14.1 percent and ranking 41^st.

The Council on Community and Economic Research calculated that the cost of living in the Springs last year was 1.2 percent below the national average, while the U.S. Bureau of Economic Analysis listed the local cost of living in 2016--the most recent data available—at 0.6 percent below the national average.

There are a number of factors at work.  Colorado Springs has been ranked so high in various surveys such as “Best Place to Live”, “Best Place for Small Business”, “Most Beautiful City” and so many more.  These surveys along with the diligent work of our Mayor John Suthers and the City Council have convinced more companies to relocate here and with them come lots of folks looking to buy homes and contribute to our local economy.

Rising home prices are a byproduct of living in a desirable area, according to Bert Sperling, founder and CEO of Sperling’s Best Places, which ranks cities and towns by a variety of criteria.  Colorado Springs was ranked last year as the nation’s most desirable place to live by U.S. News & World Report.  

“The cost of living is going up quickly in Colorado; it is no longer an undiscovered gem.  Denver is increasing in desirability and livability, and Colorado Springs is also going that way.” Sperling said.  “People are gravitating to more affordable places that are also good places to live, and many are coming from higher-cost areas along the coasts, so they are reducing their cost of living from where they were.”

According to Dirk Draper, CEO of the Colorado Springs Chamber & EDC, a rising cost of living hasn’t yet made it too difficult for Colorado Springs employers to attract workers to fill openings, even low-wage entry-level positions.  However, the Chamber targets is economic development efforts at attracting employers who pay significantly more than the county’s average annual wage of nearly $50,000—last year helping to bring in more then 1,500 jobs paying an average annual wage of more than $62,000.

 

2019 ECONOMIC FORECAST…PROSPECTS FOR A RECESSION?

I just received this report from Summit Economics and wanted to share it with you on a timely basis.  They have been providing an annual forecast twice a year for almost ten years and their research helps individuals, organizations and communities to create futures that are more likely to sustain economic growth and wellbeing—even with fundamentals that they cannot control.

There is extensive data on Colorado that I believe might interest you and you can click here to get the full 19-page report.

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

​

FEATURED LISTING:

HELP…I’M SOLD OUT OF LISTINGS…

Your home can be featured here.  Homes are selling so quickly that I’m all out of listings.  If you’re ready to sell, I’m ready to sell it for you.  Give me a call today.

April 8, 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.

HAPPY ANNIVERSARY TO ME…

It’s hard to believe that this month I’m celebrating my 47^th year in the Colorado Springs Residential real estate arena.  It seems like yesterday that I transitioned from Investment Banking in Denver, made Colorado Springs my home, and started selling residential real estate.  

During those years I’ve met so many folks and had the pleasure of helping them realize all of their residential real estate dreams.  I’ve done it all—from land acquisition, new home sales, existing home sales and investment properties and all the while watching Colorado Springs grow to be the thriving city that we live in today.  

I for one am not surprised that our city continually makes all the top 10 lists when it comes to Best Place to Live, Best Place for Small Business, Hottest real estate Market, and so much more.  This is my home, too, and I enjoy relocating folks here from all parts of the globe.  

My career has also afforded me the opportunity to give back by participating on local government and Pikes Peak Association of Realtors (PPAR) committees, as well as serving the for-profit and non-profit community as a board member and in other capacities.   My recent two and a half year involvement in Plan COS resulted in a 20-year growth plan for Colorado Springs. 

As a founding sponsor of the UCCS College of Business Economic Forum, I’ve seen it grow over the last 22 years into an exceptional resource for local business and organizations. 

I’ve also had the pleasure of being a charter member of the RDC (relocation Directors Council), a national relocation organization, as well as having served as chairman.   

And on and on…

Most importantly, though, I could not have done any of it without your confidence and trust in allowing me to help facilitate what for many is their biggest financial asset.  

I recognize every client has needs, wants and budget requirements specific to them and I work diligently to put my special brand of customer service to task in helping find the right fit for each individual situation.  

An extra special part of having been in business for so many years is seeing children and grandchildren of my clients grow up and having them contact me when they are ready for their first home purchase.  It means a lot that these family members remember me and want me to assist them too.

This has been such a great ride…and I’m not relinquishing the driver’s seat because I’ve still got a lot more miles left in me! 

In today’s home market it’s more essential than ever to have a seasoned professional on your side.  One that knows the ins and outs of not only finding the right property but one that can negotiate an offer that has a good chance of getting accepted.  And that’s no easy feat in a climate of multiple offers and fewer listings, as well as over list price offers. 

I like to think that besides being “The real estate Therapist”I also have the “Power of Credibility”on my side.  I’ve been told time and again by clients that they know I make their personal goals mine.  I’m on their side and as most of you are aware, I like to be on the winning side.  I know how to get things done, but also know when to advise my clients to walk away when it’s in their best interest to do so.

If you, a family member or co-worker are ready to start thinking about making a move…I’m willing and ready to help.  Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s get the ball rolling.

 

MARCH 2019 AGAIN BROUGHT GAINS IN HOME VALUES AND LOWER NUMBER OF SALES

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

Here are some highlights from the March 2019 PPAR report. 

Just a reminder that the PPAR report is in a new format and no longer provides a look at the monthly stats for each neighborhood.  However, if you are interested in what’s happening in your individual neighborhood, I can provide it to you through other means.

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 March 2019 to March 2018 for All Homes in PPAR:

                                                               

                                    Single Family/Patio Homes:

·       New Listings are 1,525, Down 13.3%

·       Number of Sales are 1,224 Down 0.6%

·       Average Sales Price is $350,934 Up 3.0%

·       Median Sales Price is $315,000 Up 5.0%

·       Total Active Listings are 1,461 Up 6.6%

·       Months Supply is 1.2, Down 11.5%

 

                                     Condo/Townhomes:

·       New Listings are 216, Down 20.0%

·       Number of Sales are 169, Down 3.4%

·       Average Sales Price is $237,368, Up 12.3%

·       Median Sales Price is $220,000, Up 5.5%

·       Total Active Listings are 132, Up 36.1%

·       Months Supply is 0.8, Down 10.5%

 

At the start of each year I look into my “crystal ball”and try to determine what I believe will be a true picture of home appreciation for that year.  In January 2019 my prediction was for the local home market to show an appreciation of 5 ¾ - 6 ¾ % this year.  I believe we are on track for that.

Spring buying has started off slowly due to the inclement weather we’ve had but I believe it will pick up and those who are looking to move and trade up will have plenty of takers for their present home. The days of multiple offers, many accepted almost immediately after listing, are still here and it’s making things difficult—especially for first time buyers.  

It is important to know where you want to live next because if you list your present home it will likely sell much faster than you might imagine.  There are still homes available in most price ranges, but they go fast, so having me on your side can give you an advantage.  

If a newly constructed home is in your future, I can assist here, too.  I’m familiar with most of the new construction in the city and can help you with site and plan selection as well as helping you find the best financing for your individual needs.  And—did I mention that I provide it all at no additional cost to you? 

Now a look at more statistics…

 

MARCH 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 provides 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 geographic area 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 Down 2.3%
• Median Sales Price for All Properties was Up 5.4%
• Active Listings on All Properties were Down 9.5%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographic 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. 

 

U.S. MORTGAGE RATES POST BIGGEST DROP IN A DECADE

The Gazette, The Associated Press, 3.29.19,The Wall Street Journal, 3.23.,2019

Buying a home became a lot cheaper, thanks mostly to the Federal Reserve decision several weeks ago to put its interest rate hikes on hold for now, and possibly for the rest of the year.

After their announcement, Freddie Mac reported that the average 30-year fixed rate mortgage fell to 4.06 % from 4.28% the previous week. That was the steepest weekly drop in a decade!

Lower rates, slowing home price increases and a slight increase in available homes appear to be a boon to home sales after a slight slowdown nationally last year.

Potential buyers are rushing to take advantage of rates that they had doubts they would ever see again.  Cheaper borrowing costs can make a big difference in what folks can afford, and it can make it easier for buyers to qualify for loans.  Economists expect sales will continue to improve this year, especially due to the steady job market and pay growth, both of which make a home purchase more affordable.

Also, in the U.S., sales of previously owned homes posted their largest monthly gain since 2015 in February—a sign that lower mortgage rates and more attractive prices are helping to lure buyers back to the market.  Existing homes sales nationally rose 11.8% in February from the prior month—the second-strongest monthly gain in homes sales ever.  

However, with sales volume 1.8% less than it was a year ago, the market is recovering, but at a slower pace than in 2017 and early 2018.

Locally, the cheaper cost of borrowing is a definite plus, but we still have a pretty tight market and most listed homes are selling swiftly. Hopefully we will see more listings this spring buying season and that will help those who are currently wanting to purchase a home.

 

SELLING IN APRIL COULD SAVE YOU TIME AND MONEY

Rismedia’s Housecall, 3.20.19

Sellers are often faced with the difficult questions of “When should I list my home for sale?”  Each season has its pros and cons.  The winter months are slower, therefore less inventory competition.  The spring market, however, has buyers coming out in full force.  

Based on several factors—including trends in median listing prices, property views on realtor.com, home price drops, median days on the market and the number of listings on the market in the last three years—realtor.com determined in a new report that the best time to sell, on average, is the first week of April.  Why? Competition is still low, but buyers are out in droves, snapping up homes and driving up home values.  

The following shows this in graph form:

While June is considered the peak of home-buying season, realtor.com’s report found that the first week of April is best for sellers looking to maximize list price, and also reduce the risk of price cuts and competition from other sellers, according to Danielle Hale, chief economist for realtor.com.

“Given the time it takes from listing to close, putting a home on the market in early April positions sellers to attract buyers seeking to close and move before the beginning of school year,” she said.

The inclement weather locally has kept the spring buying season from starting quite as early this year, but a word to the wise…it’s going to pick up…especially with favorable mortgage loan rates, therefore the “early bird gets the worm” so to speak.

 

20 TIPS FOR PREPARING YOUR HOME FOR SALE THIS SPRING…AND INFOGRAPHIC

Keeping current matters, 3.22.19

Some Highlights:

• When listing your house for sale, your top goal will be to the get house sold for the best price possible.
• There are many small projects you can do to ensure this happens.
• Your real estate agent (me!) will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local contractors and others who can help.

 

WHY YOU SHOULD REALLY CONSIDER STAGING YOUR HOME 

Rismedia Housecall, 3.22.19

In a recent NAR “2019 Profile of Home Staging” report, 83 percent of buyers’ agents agree that staging your home makes it easier for homebuyers to see themselves living in it.

Also, according to the report, more than half of sellers say that staging your home will decrease the amount of time your home stays on the market.

“Buying a home is more than a financial decision; it is an emotional decision as well,” says John Smaby, NAR President.  “Buyers aren’t just making an investment in a property.  They are purchasing a place to call home, to raise their children; to begin a new chapter; or to retire to a new season of life.”

Here are several graphs to illustrate the report:

 

 

 

If you have any questions about staging your home, please give me a call.  I’ve had considerable experience with this and can get you to the professional staging folks who are best suited for your situation.

 

UCCS ECONOMIC FORUM REPORT SHOW INCREASED CONSUMER CONFIDENCE

UCCS Economic Forum, College of Business, updated 3.28.19

As always, I like to share with you the updated reports I receive due to my sponsorship of the UCCS Economic Forum.  These reports show in graphic form the “Big Picture” of the U.S. in general as well as the local outlook.

Included in the local statistics are: Local Employment/Wages and other employment factors as well as demographics of Population Growth, real estate Sales, Tourism and more.

Click here to view this informative report can be seen in its entirety. If you have any questions, please give me a holler.

 

 

February 19, 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.

GOOD NEWS FOR COLORADO SPRINGS HOMEOWNERS ONCE AGAIN

National Association of REALTORS^® 2.12.19

The latest quarterly report by the National Association of Realtors put a smile on my face and I am happy to share the good news with you.  While home appreciation is not moving as quickly as in the recent past, the Fourth Quarter 2018 report of Median Sales Price of Existing Single-Family Homes for Metropolitan Areas shows the U.S. average of the 178 measured statistical areas (MSAs) to be 4.0%. 

Now for the GREAT NEWS--the report lists the median sales price of existing homes in Colorado Springs at 7.4%--almost double the national average!  (To see the report in its entirely please click here.)

This is a fabulous news for our city.  Lots of companies have been entering our market area and along with them come folks who are relocating and need places to live.  Our inclusion in so many “top” lists, such as “Best Place to Live”, “Best Place for Small Business” and “Best Quality of Life City” all are contributing to our growth and in turn, our housing price increases.  

A big shout out needs to go to Mayor John Suthers and his team, as well as the Colorado Springs City Council members who are betting big on growth and following through with plans for our continued success into the future.  

However, good as this news may be, it also brings some challenges in local residential real estate.  With prices increasing, some folks and especially those looking for starter homes, are being priced out of the market.  I’m finding fewer homes for sale in the $250,000 to $300,000 range. With rental prices continuing to increase, a number of my investor clients are picking up one or more of those available homes and I suspect they will continue to do so.  

With interest rates still historically low, folks who have been waiting are realizing that there’s now a window of opportunity to lock in a good rate, and along with it a lower monthly payment.  It’s still a great time for sellers, too.  Just this past week, clients of mine have had to make offers over listing price in order to close the deal.  

My advice to you?  There’s still time to get in on a low mortgage rate but no one knows just how long that will last.  If you are looking to buy, either to trade up, move to a new neighborhood, find a starter home, or simply for investment purposes…NOW is the time.  

And that’s where my 46 plus years of experience in the local residential real estate arena comes into play.  I look after my clients in a way that is hard to beat.  Let me cite just one example, if I may:

A client was looking to purchase a new home and the builder provided them with a “standard” contract.  I, of course, advised them to run it by a real estate attorney but also looked at it for them.  When the changes were presented to the builder, his comment was, “Wow, we’ve had several real estate folks purchase homes for themselves and they signed the contract with few changes, if any.” 

What does that tell you?  Well…it tells me that if that builder is buying a home for himself, he better not be using those agents…he needs me! 

I pride myself in looking after my clients just as I would if I was purchasing a home for myself. After all these years, I know the “ins and outs” of what it takes to get to the closing table and also when it pays to walk away.  I wouldn’t be doing my job if I was “only” a salesman.  Most any agent can sell a house—but it takes my special brand of customer service to make certain that it fits the specific wants, needs and budget of my clients.  

That’s why I’m called The real estate Therapist.  I want my clients to have a happier life and enjoying their home is a big step forward. Not only does a home represent a big part of their financial security, it also plays a role in the continued happiness of the family. At this point in my career I take pleasure in working with the children and grandchildren of former clients and nothing makes me happier than to help in their financial and personal successes.

If you’re ready to make a move…I’m willing and ready to help. Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.comand let’s get the ball rolling.

 

JANUARY 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

As I mentioned in the last issue, PPAR no longer publishes the Colorado Springs local neighborhood statistics that I used to publish in the first eNewsletter of each month.  They do publish Monthly Indicators for El Paso and Teller Counties as they have previously.  This report provides greater detail than the first of the month reports and I will continue to provide this to you.  

The Local Market Update also provides information on both Colorado Springs and Teller counties for residential real estate.  It is broken down by geographical areas, but no longer by specific local neighborhoods, and you can look to see how your geographic area is doing in terms of sales, prices, and more.  If you want information on a specific neighborhood, simply give me a call and I will be happy to provide those statistics for you.

     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 down 6.1%
• Median Sales Price for All Properties was up 4.3%
• Active Listings on All Properties were up 11.9%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood 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. I have reprinted just one area, Woodland Park, below to show you the type of information available for all residential areas in both El Paso and Teller counties.

 

MORTGAGE RATES FALL TO 10-MONTH LOW

Realtor Magazine, 2.8.19

As I mentioned earlier, borrowing costs have been cheaper recently since the mortgage rates have continue inching down.  

According to Sam Khater, Freddie Mac’s chief economist, “The U.S. economy remains on solid ground, inflation is contained, and the threat of higher short-term rates is fading from view, which has allowed mortgage rates to drift down to their lowest in 10 months.”

“This is great news for consumers who will be looking for homes during the upcoming spring homebuying season.  Mortgage rates are essentially similar to a year ago, but today’s buyers have a larger selection of homes and more consumer bargaining power than they did the last few years,” he added.

I might add that while this is basically true, please consider what I mentioned before concerning our local market.  I’m still seeing bidding wars and over list price sales, mostly in the lower price ranges.  The good news is that with appreciation not moving as fast as a year ago, this, mixed with lower interest rates, is making it possible for some who feared they had missed out to get another opportunity to buy.

And once more…don’t wait too long.  Call me soon and let’s see what I can do to help make your residential real estate dreams come true.

 

February 6, 2019

 

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.

THINGS, THEY ARE A CHANGING…

Whoever said that “the more things change, the more they stay the same” must have certainly had Residential real estate in mind.  Some things in my industry never change—such as folks looking for a starter home, wanting to sell and trade up and of course, some looking for investment properties.  And then there are those that constantly change—such as home values, prices and mortgage interest rates.  It’s all a piece of the bigger picture of home ownership.

These last few months have seen some interesting changes.  

To begin with, interest rates are still historically low despite predictions from economists, and they look likely to remain this way for at least another few months or more.  This is providing an unforeseen opportunity for those who thought we’d seen the last of the “low” rates.  Yes, while a number of us have seen rates as high as 18% in the past, there are more and more young buyers who have only seen the historically low rates and think that 5% is outrageous!  Many of them are now realizing that their window of opportunity for a “low” rate may be closing soon.

Median home prices are starting to “normalize” and while increasing, they are doing so at a slower pace than in recent times.  That’s actually good news for both buyers and sellers.  It’s affording those who have waited to finally begin their search for a new home.  The only problem I’ve been seeing is that with inventory down, particularly at the lower end of the price spectrum, there are not a lot of homes from which to choose. This is affecting everyone, particularly those looking for starter homes.

My thoughts on all this? 

If you’re even considering a move and wondering how to make it happen, NOW is the time.  

As I’ve just told you, there are some obstacles, but fortunately for you—you’ve got ME.  My 46 plus years in local residential real estate is on your side.  I’ve seen all types of “cycles” and can help you in making your real estate dreams a reality.  We’ve caught a break with the interest rates and slower rising home prices, but…the times they keep a changing.  

Give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you, your family members or co-workers who might also be looking.

 

JANUARY 2019 AGAIN BROUGHT GAINS IN HOME VALUES BUT LOWER NUMBER OF SALES

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

Here are some highlights from the January 2019 PPAR report.  A look at the Median Sales Prices will show that prices are continuing to rise, although not as much as in recent months, while sales are also continuing to slow down.  

You will also see that the PPAR report is in a new format and no longer provides a look at the monthly stats for each neighborhood.  This just changed and I do not yet know if the report I share in the second eNewsletter of the month will provide this information or not.  However, if you are interested in what’s happening in your individual neighborhood, give me a call and I can provide it to you through other means.

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 2019 to January 2018 for All Homes in PPAR:

                                                               

                        Single Family/Patio Homes:

·       New Listings are 1,250, Up 7.5%

·       Number of Sales are 902, Down 11.8%

·       Average Sales Price is $343,989, Up 3.4%

·       Median Sales Price is $303,450, Up 2.9%

·       Total Active Listings are 1,616, Down 30.7%

·       Months Supply is 1.8

 

                        Condo/Townhomes:

·       New Listings are 171, Up 0.6%

·       Number of Sales are 142, No Change

·       Average Sales Price is $223,990, Up 2.4%

·       Median Sales Price is $204,500, Up 3.9%

·       Total Active Listings are 143, Up 70.2%

·       Months Supply is 1.0

 

FEDERAL RESERVE INDICATES HOLD ON RATE INCREASES

The Wall Street Journal, 1.31.19

The Federal Reserve indicated that it was done raising interest rates for now at their meeting the last week in December—good news for the home mortgage market.  

In an about face from their policy stance just six weeks earlier, they voted to hold their benchmark rate steady.  While Fed Chairman Jerome Powell said at a news conference after the meeting that “the case for raising rates has weakened somewhat”, he declined to say whether the Fed’s next move was more likely to be an increase or a cut.

This is especially good news for those who were waiting due to the higher monthly payments resulting from mortgage loan rate increases.  For the present at least, rates should stay somewhat stable—a blessing for both buyers and sellers.

My advice would be not to wait too long if a move is in your future.  As I mentioned in the last eNewsletter, what goes down quickly can just as easily go up.  A word to the wise.

 

LAST CHANCE!  HOMES ARE A BARGAIN COMPARED TO HISTORIC NORMS

Keeping Current Matters, 1.22.19

        

One of the best measures of whether an item is more expensive than it was before is what percentage of our income it takes to purchase that item today compared to earlier times.  

Consider home purchasing:

The COST of a home is determined by three major components:  price, mortgage interest rates and wages.  In case you are wondering if we are now paying a greater percentage of our income toward monthly mortgage payments today than in previous generations—the surprising answer is NO.

Historically, Americans have paid just over 21% of their income toward their monthly mortgage payment. And while home prices are higher than in the past, the most important component in the cost equation—the mortgage interest rate—is dramatically lower than it was in the 1970’s, 1990’s and 2000’s.

According to the latest NAR Home Affordability Index, today Americans are paying 17.4% of their income toward their mortgage payment, considerably lower than the 21% average paid by previous generations.

Bottom Line? When you consider the still historically low interest rates, the cost of purchasing a home today is a bargain compared to previous generations on a percentage of income basis.  

However, as I’ve been saying for some time now, this will not always be the case.  Interest rates will NOT stay this low forever and homes are continuing to appreciate.  If you are looking to buy a starter home or trade up to a more expensive home, sooner rather than later makes the most sense.  Give me a call today and let’s see how we can make this work for you.

 

INVESTORS TAKE NOTE…HERE’S A TAX WIN FOR YOU

National Association of Realtors, 1.24.19

The Internal Revenue Service has issued final rules on the 20 percent income deduction (Sec 199A of the Tax Code) that was enacted in late 2017 as part of the Tax Cuts and Jobs Act.

Thanks to advocacy and collaboration between NAR, its members and administration, the final rules reflect many changes that NAR sought to ensure the new 20 percent deduction applies as broadly as possible.

Here are the rules on two provisions that are of importance to you if you:

1. Have real estate income, and 

2) Have exchanged properties under Sec 1031 of the tax code 

And, as always, please check with your accountant and/or investment professionals when considering how this information pertains to your individual tax situation.

Eligibility of Rental Income:

If you generate rental property income, that income can also qualify for the new deduction, as long as you can show that your rental operation is part of a trade or business.  The IRS has released proposed guidelines that include a bright-line test, or safe harbor, for showing that your rental income rises to the level of a trade or business.  Under that safe harbor, you can claim the deduction if your rental activities—which include maintaining and repairing property, collecting rent, paying expenses, and conducting other typical landlord activities—total at least 250 hours a year.  If your activity totals less than that, you can still try to take the deduction, but you’ll have to be prepared to show the IRS that your activity is part of a trade or business.

Eligibility of 1031 like-kind Exchanges:

Under earlier proposed regulations, if your income was above threshold levels set in the tax law--$157,500 for single filers, $315,000 for joint filers—and you had exchanged one property for another to defer taxes under Sec. 1031 of the tax code, the amount of the new deduction might be reduced because of the swap.  NAR and other trade groups reached out to the IRS to change this treatment, and the IRS has made that change.  Under the final rules, you can use the unadjusted basis of the depreciable portion of the property to claim at least a partial deduction.

 

STUDENT DEBT HAS HAMPERED THE housing market

The Wall Street Journal, 2.2.19 and HousingWire, 1.17.19

At last count, one generation of Americans owed $86 billion in student loan debt.  Its members are all over 60 years old!

The reasons are varied.  Many took out loans to help pay for their children’s tuition and are still paying them off.  Others are paying for their own student loans when they returned to school in wake of the last recession to boost their own employment prospects.

On average, student loan borrowers in their 60’s owed $33,800 in 2017, up 44% from 2010 according to data compiled for The Wall Street Journal by credit reporting agency, TransUnion.

Total student loan debt rose 161% for people aged 60 and older from 2010 to 2017—the biggest increase for any age group.

Student loan debt has impacted the housing market for several reasons.  

The above referenced seniors are either carrying second mortgage or student loan debt that makes it difficult for them to move—either to trade up or downsize—due to credit or financial concerns.

Also, the Federal Reserve recently said that student loan debt is impacting the housing decisions of young Americans too. Homeownership for adults ages 24 to 321 fell 9% from 2005 to 2014, landing at 36%, according to two recently published papers.

The Fed said that while a number of factors are at play, it attributes 2 percentage points of this decline to student debt, meaning that 400,000 borrowers could have purchased a house but didn’t due to their debt.

A chart from HousingWire  pointed out that increased student debt heightens the likelihood of default, therefore impacting an individual’s credit score and, with a weak score it may be more difficult to obtain a mortgage.

Researchers also wrote that “while investing in postsecondary education continues to yield, on average, positive and substantial returns, burdensome student loan debt levels may be lessening these benefits”.

The Fed, however, declined to say that the impact of student debt on homeownership is entirely negative, rather calling it “complex”.

Researchers wrote that “On the one hand, student loan payments may reduce an individual’s ability to save for a down payment or qualify for a mortgage.  On the other hand, investments in higher education also, on average, result in higher earnings and lower rates of unemployment”.

While this most certainly can impact the housing market in general, locally I have seen a number of recent graduates move into their first homes, some with the down payment help from family which is now acceptable by most lenders.  Others have purchased homes with help from parents while still in school and have rented out rooms to other students in order to help make the mortgage payments. 

Both of these situations will most certainly help young homeowners to start building their own financial security rather than feathering the nest of others from whom they might pay rental payments.  

 

UCCS ECONOMIC FORUM STATISTICS 

UCCS Economic Forum, College of Business, updated 1.31.19

As always, I like to share with you the data I receive from the UCCS Economic Forum which shows you the “Big Picture” of the national economy as well as all the local metrics.  I’ve been a proud supporter of the Forum since its inception and know you will find the data as interesting as I do.

Please click here for the 4-page graphic depiction of the economy, and, as always, if you have any questions, please give me a holler.  

 

January 22, 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.

MORTGAGE RATES DROP DESPITE PREDICTIONS

Recent predictions aside, and despite mortgage rates spiking in early January from the recent historic lows, mortgage rates have declined and are holding their own at present.  

Since early November, the 30-year fixed-rate mortgage has fallen nearly half a percentage point from 4.94 percent to 4.45 percent, where it stood at the end of last week.  While it didn’t go down as it did for the six weeks prior, it held steady last week.  Existing home sales got a good boost in November and when NAR’s data for December is released today it may reveal whether lower mortgage rates have escalated sales gains again.

NAR chief economist Lawrence Yun said on Thursday that he expects recent declines in mortgage rates to keep home sales on an upward track—possibly leading to an additional 200,000 transactions in 2019.  “Buyers will want to take advantage of the lower rates,” Yun says.  “this additional demand will help absorb inventory.  Both home prices and home sales will be lifted.”

While this is great news for buyers, sellers and investors alike, it also shows that what can go down so quickly can also jump just as fast.  I tell you this because those of you who have put off buying due to the rising interest rates can now have a chance to “lock in a good rate while the getting’s good”.  Rates are not likely to stay this low.

As you will see below, prices are continuing to rise, but at a “more normal” pace than in the past year, and that, combined with the lower interest rates, will certainly work in your favor if you are looking to sell and trade up or buy for the first time.

If investment properties are what you are seeking, now is also a great time for you.  The need for rental properties is increasing as a number of first-time buyers are burdened with college loan and other debt and others cannot qualify for the recent higher priced home values.  As a matter of fact, I have done a price comparison to show potential investors that compares home values in Colorado Springs vs. the stock market appreciation over the past 30 years.  It would be my pleasure to share this with you to help you maximize your investment dollars.  As always, though, I would advise you to check with your tax advisor first to make certain that this is the right move for your personal situation.

All-in-all—there’s something for everyone and all it takes is a call for me to sit down and show you how I can put my 46 plus years of local residential real estate experience to work for you.

I can be reached at 593.1000 or by email at Harry@HarrySalzman.com and welcome talking to you, your co-workers, family and friends.  It’s worth your time to find out how to maximize your Residential real estate investment and I’m always happy to be of help. 

 

DECEMBER 2018 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR LOCAL TRENDS IN GREATER DETAIL

Pikes Peak REALTORS^®Services Corp., 

These reports contain much greater detail than the first-of-the-month reports I share and cover ALL residential areas in the Pikes Peak Region. 

     The “Activity Snapshot”shows the Year to Date one-year change:

• Sold Listings for All Properties were down 13.7%
• Median Sales Price for All Properties was up 6.7%
• Active Listings on All Properties were up 12.5%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 34-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, Peyton, below to show you the type of information available for all local areas.

For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.

 

COLORADO SPRINGS: ANNUAL HOUSING REVIEW AND FUN FACTS…

From ERA Shields real estate Annual Review and info from Pikes Peak REALOR Services Corp or its PPMLS

January 7, 2019

 

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.

LOOKING BACK FOR A MOMENT…AND THEN LOOKING AHEAD

We just concluded another record setting year in local Residential real estate, and while I anticipate this year to be more of the same, I expect it to be a bit less of a frenzy.

With interest rates on the rise and home values increasing, although a bit slower than in the recent past, it should be a good market for buyers, sellers and investors.  I expect the median home price increases to normalize somewhat this year, which is good for everyone. As that happens, there will be more homes for sale and more folks can sell and trade up.

The higher rates and prices are making it more difficult for first-time buyers to qualify and are driving more folks to rent while saving for a down payment and paying down current debts. This creates a good opportunity for investors who want to add real estate to their portfolio.  With the volatility of the stock market in recent days, the value of real estate return on investment is most definitely outpacing stocks and bonds.  However, with capital gains, new tax laws and other issues pertinent to your individual situation, if you are considering an investment home please first check with your tax advisor to make certain this fits into your personal investment portfolio. If it does, please give me a call and let me see how we can make this work for you.

The Colorado Springs job market is still strong, with low unemployment and a number of high paying jobs open at present.  In fact, Wallhub.comrecently named our city “The Top U.S. City for Employment Growth”.  Of the 182 cities surveyed in the 2019 Best Cities for Jobs”, Colorado Springs ranked considerably above average in most areas and slightly above average in housing affordability and average work and commute time.  Denver ranked 13^thon the list of best places to find a job and Aurora ranked 48.  

A number of the lower predications for housing growth and appreciation for much of the U.S. will not be the same as our local ones due to the influx of new companies to our area. There are a number of factors at work to insure a relative strong housing market locally.

Millennials are finding Colorado Springs a great place to live and downtown gentrification, the job market, and relative low cost-of-living are among the reasons for this.  Young people are discovering our city and making it their home once again.  This was the case when I first moved here more almost 47 years ago, and I’m thrilled to see it happening all over again.  Thanks to the hard work of Mayor John Suthers, the City Council and so many others, Colorado Springs is thriving, vibrant and an amazing place to call home.

A new year brings with it new hopes and dreams.  If Residential real estate is among your hopes and dreams, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help makes those dreams come true.

 

And now for statistics…

Since these are year-end statistics, I am providing you with both the regularly posted year-over-year monthly statistics as well as 2018 annual statistics.  As you will see, the 2018 annual statistics provide a better indication of how we fared in last year, especially since the month of December, as always, is a slow real estate time due to the holidays.

In December, homes are sold at 99.4% of listing price with the average days on the market at 37.

The Monthly Summary shows that compared to a year ago, total active listings are up 24.8% for Single Family/Patio Homes and up 86.3% for Condo/Townhomes.  New listings are down 15.2% for Single Family/Patio Homes down 12.2% for Condo/Townhomes.  

I’m not surprised about the fewer new listings due to the holidays and also, since mortgage rates, although still very reasonable, are the highest they’ve been in seven years and home prices are continuing to rise.  Folks are realizing that it’s possible they will be priced out of buying a “trade up” home, either because of the potentially higher monthly payments or because potential buyers for their existing home may find it harder to qualify.  In either case, higher rates are not going to disappear, and home prices won’t keep up the pace of 2018 but will certainly continue to rise.  

 

DECEMBER 2018 AGAIN BROUGHT GAINS IN HOME VALUES BUT LOWER NUMBER OF SALES

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

Here are some highlights from the December 2018 PPAR report.  A look at the Median Sales Prices will show that prices are continuing to rise while sales are also continuing to slow down.  Please click here to view the detailed 14-page report, including charts. 

If you’re shopping for a new home, it’s going to cost you more, but remember, you can likely use the increased equity in your present home to make up the difference. If you have any questions about the report or to find out how your individual situation relates to the stats, just give me a call. 

In comparing December 2018 to December 2017 for All Homes in PPAR:                                                            

                        Single Family/Patio Homes:

·       New Listings are 717, Down 15.2%

·       Number of Sales are 1,064, Down 11.8%

·      Average Sales Price is $340,907, Up 5.5%

·      Median Sales Price is $300,855, Up 5.6%

·       Total Active Listings are 1,685, Up 24.8%

·       Months Supply is 1.6

 

                        Condo/Townhomes:

·       New Listings are 115, Down 12.2%

·       Number of Sales are 145, Down 9.4%

·      Average Sales Price is $227,354, Up 16.4%

·      Median Sales Price is $215,000 Up 12.4%

·       Total Active Listings are 149, Up 86.3%

·       Months Supply is 1.0

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                       Median Sales Price              Median Sales Price

                                             December 2018                     December 2017

Black Forest                             $555,000                              $432,000                       

Briargate                                   $429,450                              $381,000            

Central                                     $253,450                              $231,000

East                                          $265,000                              $243,500

Fountain Valley:                       $277,250                              $261,500

Manitou Springs:                     $310,000                              $350,000

Marksheffel:                             $315,000                              $341,500

Northeast:                                $305,500                              $285,000

Northgate:                                $502,395                               $415,000

Northwest:                                $380,000                              $425,000            

Old Colorado City:                   $262,000                              $230,000            

Powers:                                     $306,000                              $280,000

Southeast:                                $238,450                              $215,000

Southwest:                               $318,500                              $355,000

Tri-Lakes:                                 $494,900                              $454,500

West:                                        $281,500                              $282,400

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

If you’re even considering a move and wondering how to make it happen, NOW is the time.   

Simply give me a call and let’s see how I can put my special brand of customer service to work for you, your family members or co-workers who might also be looking.

 

COLORADO SPRINGS AREA ANNUAL SALES ANALYSIS

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

Below are the 2018 annual statistics.  Homes sold at 100% of list price on average with a low 26 days on the market. You can click here to see the entire 11-page report.

                                       Median Sales Price              Average Sales Price

                                  January-December 2018           January-December 2018

Black Forest                             $531,250                              $600,437                        

Briargate                                   $405,000                              $413,274            

Central                                      $250,000                              $278,776

East                                           $265,000                              $276,110

Fountain Valley:                       $271,950                              $273,520  

Manitou Springs:                     $376,125                              $390,965

Marksheffel:                             $325,000                             $336,399

Northeast:                                $300,000                              $323,144

Northgate:                                $460,000                              $498,800            

Northwest:                                $406,000                             $438,254            

Old Colorado City:                   $303,500                             $324,663           

Powers:                                    $297,250                              $300,677

Southeast:                                $230,000                             $232,785

Southwest:                               $360,000                             $438,458

Tri-Lakes:                                 $510,000                              $545,107

West:                                        $300,000                              $392,357

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

FIRST-TIME BUYERS GETTING HELP FROM FAMILIES

The Wall Street Journal, 1.5.19

Rising home prices are sending first-time buyers to their parents or family members for help with mortgage down payments.  In the 12-month period through September 2018, more than 26% of mortgage borrowers who used FHA insured loans got some assistance from a relative to make the down payment, up from 22% in 2011.

The FHA, an arm of the Department of Housing and Urban Development, insures lenders against losses on the sometimes riskier loans they make.  These are usually first-time buyers or those with weaker credit profiles who would have a harder time getting a conventional loan.

FHA buyers can pay as little as 3.5% upfront vs. the conventional down payment requirements of up to 20%. 

With home prices rising along with interest rates, buying a home is more expensive than in recent years.  Leading up to the mortgage crisis, many sellers provided down payment assistance to buyers to help close deals.  This created even more problems when the market crashed and these practices have since been prohibited.

Industry executives say that help from a family member doesn’t pose the same risk as getting help from a seller because family assistance has a “higher moral bearing on people when things turn tough in the housing market”, according to Sanjiv Das, CEO of Caliber Home Loans, something that bears out in the data that the FHA has tracked since 2011.  

This is a great time to buy before interest rates go up again and first-time buyers will likely need all the help they can get. If you are in a position to help a family member invest in their future, you may want to consider helping them with their down payment.  This can help start them on their way to future financial success.

Be sure to have them contact me when they are ready to look for their starter home so that I can also assist them.  My experience in dealing with first-time buyers can be another invaluable step to insuring a brighter future for them and their family.

 

U.S. ECONOMIC AND HOUSING OUTLOOK FOR 2019

Corelogic.com, 12.5.18

Here are some predictions from Frank Norhaft, Chief Economist for Corelogic.

Economic growth only needs to last seven more months to set the record for the longest expansion in U.S. history, based on business cycle dates going back more then 160 years!  

Corelogic anticipates economic growth will be about 2.4 percent during 2019, a bit slower than the 3.1 percent expected for 2018, but good enough to push the unemployment rates to about 3.4 percent.  That would mark the lowest unemployment rate in 50 years.

That good news leads to the next projection for 2019: higher interest rates.  The Fed will continue to keep an eye on inflation while pursuing its goal of normalizing the level of interest rates. Long term yields should rise as well, nudging the 30-year fixed mortgage rates up to an average of about 5.25 percent by next December, the highest in a decade.

Higher interest rates will affect housing and mortgage market activity.  New listings will be kept relatively low due to those who currently have low rate mortgages and decide to stay in their homes rather than sell.  

Buyer demand may also slow due to the larger monthly payments than accompany higher interest rates.  Corelogic forecasts price growth to slow by 1 percentage point over the next 12 months.

 

January 2, 2019

 

HARRY’S NEW YEAR GREETING