Real Estate Information

August 21, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

FIRST UP…A WORD FROM ME…

 

 

I’ve briefly explained some important news in my latest podcast, so if you’ve got 2 minutes and 28 seconds, you will get a brief idea of the new changes that affect all Residential real estate transactions nationwide effective last Saturday.  These are explained in greater detail in the article below.

 

Click on this link to watch my podcast:    https://youtu.be/4u15MWmxnaU

 

 

WHAT TO KNOW ABOUT RESIDENTIAL real estate COMMISSION CHANGES

The Wall Street Journal 8.15.24

As I mentioned above, change is in the air, and these are some of the biggest changes in decades to the way real estate agents get paid.  The National Association of Realtors (NAR) reached a landmark settlement earlier this year over commissions, and as of last Saturday, August 17, most of its 1.5 million members will be subject to the new rules.  

Here is a synopsis of some things home buyers and sellers need to know.

 

How did the system work up until last Saturday and how is it changing:

For the last 30 or more years the seller has typically paid the agents on both sides of a home sale transaction and decided how much both agents get paid.  Usually, sellers agreed to pay their agent a certain amount—often 5% or 6% of the sale price—and the seller’s agent split this with the buyer’s agent.  When a home was listed for sale, the listing says how much the buyer’s agent can expect to be paid.

Two main changes are now happening.  First, listings in local multiple-listing services (MLS) will no longer show whether a seller is offering to pay a buyer’s agent, or how much.  Second, buyers will be required to sign agreements specifying how much their agent will be paid.  Buyers will do this before they start looking at homes with agents.

This means that buyers should negotiate directly with their agents instead of letting the seller decide how much the buyer’s representative earns.

These changes are taking effect across most of the U.S., but not everywhere.  They ARE taking effect in Colorado.

 

Is this going to bring home prices down?

This does NOT mean that real estate agents’ commissions will go down.  That will be up to buyers and what fees they negotiate with their agents.

If commissions do fall, buyers could benefit by paying lower home prices or sellers could benefit by keeping more profit, depending on how competitive and fast-moving the market is.

 

Am I eligible to receive money as part of the NAR settlement?

If you sold a home in the U.S. in the past decade or so you might be one of some 50 million sellers who are eligible for a modest payout.

 

I’m planning to buy a home soon.  Do I need to use a real estate agent?

This depends on how much time you want to spend overseeing the home search and on your confidence as a skilled negotiator.  Almost 90% of buyers used an agent in the year ended in June 2023, according to NAR.  

However, like home sellers, home buyers can choose to skip the agent and go it alone or use an attorney instead.  

 

If I do want to use an agent, how much will that cost?

You and your agent will agree on compensation upfront.  Buyers’ agents today are usually paid a percentage of the sale price, often 2.5% or 3% but it differs from agent to agent.  

You can also sign a non-exclusive agreement, so you can work with other agents too.   However, most reputable agents such I will only work on an exclusive buyer relationship.

 

What if I want to just tour a home or go to an open house without committing to an agent?

The new rules require buyers to sign agreements with agents BEFORE touring homes.  The agreement can be limited to just one home.  But if you aren’t ready to commit, you can go to an open house without an agent.  Open houses are hosted by the seller’s agent.

You can also ask sellers’ agents to give you tours.  In that case, the seller’s agent isn’t working for you, unless you both agree otherwise.

 

Do I have to pay my agent myself?

No.  As a buyer, you will be responsible for coming to an agreement with your agent about how much the agent will get paid.  But you can always ask the seller to cover that cost so you don’t have to.

If the seller says no, you can sweeten your offer by raising the price. You can also walk away.

 

What if the seller is offering a different amount than what I have agreed to with my agent?

You have a couple of options to consider.  Let’s say you have agreed to pay your agent $10,000, but then you find a home to buy and the seller has offered to pay a buyer’s agent $20,000.  In that case, it is up to the seller what to do with the extra money.  You can ask the seller to give that extra money back to you, either by lowering the purchase price or by giving you a concession.

Or let’s say you have agreed to pay your agent $10,000 but the seller is offering $5,000.  You can still ask the seller to pay the full $10,000 when you make an offer to buy the home.  You could also go back to your agent and try to renegotiate the fee.

 

I’m planning to sell my home soon.  Should I offer to pay the buyer’s agent?

Sellers now have the flexibility to decide whether to offer a commission to a buyer’s agent.  It is unethical for your agent to tell you that you must pay a commission or that if you don’t, agents won’t bring buyers to see your home.

Here are a few options:

• You can tell buyers’ agents upfront what you are planning to pay them.  You can do this by offering to pay the buyer’s agent directly or by agreeing to pay both commissions to your agent to split with the buyer’s agent.
• You can offer a concession that buyers can use to compensate their agents or for other expenses, such as repairs and closing costs.
• You can offer nothing upfront.  When buyers submit offers, they might ask you to compensate their agents.

 

What happens if a buyer’s agent already agreed to get paid less?

Your contract with your agent should specify whether you want to hold on to any surplus, or have it go to the buyer or to your agent.

 

What happens if the buyer for my home doesn’t have an agent?

In the past, when a buyer didn’t have an agent, the seller’s representative often kept the commission offered to a buyer’s agent.  But you should negotiate upfront with your agent what would happen in that scenario.  Your agent may want additional compensation because it may be more work to close the deal.  You should also discuss whether your agent can agree to represent both sides, if it is allowed.

 

What do I do if I think my agent is breaking the rules?

If you believe your agent is breaking any of the rules explained above, you have a few options.  You can find another agent.  You can report the agent to your state’s real estate commission, to a local Realtor association or to an MLS which sets the rules for home listings.  You can also speak to plaintiff attorneys involved in the settlements or consumer advocates.

 

Below is a chart published in The Wall Street Journal that gives you the changes in a nutshell:

 

 

 

Yes, it’s a lot to take in, even for folks like me and I’ve been working in this industry for 51+ years and have a background in Investment Banking.  We’ve had numerous meetings with our local Pikes Peak Realtors Association (PPAR) and others over the summer and I’m more than happy to explain these changes to you in greater detail.  

Just give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and we can discuss any questions you might have in regard to these changes or anything else.

I hope to be speaking with you soon.

 

HOUSING SUPPLY, OR RATHER, LACK OF IT…IS MAKING THE HOME BUYING MARKET THE TOUGHEST SINCE THE ‘80s…

The Wall Street Journal, 8.12.24

Yes, mortgage rates are better now than they were in the 1980’s but greater supply back then led to better affordability.  

Last fall home buying affordability dropped to the lowest level since September 1985, and it fell near that level again in June.  

In 1985, millions of Americans were in their late 20’s and early 30’s, the prime first-time buying years.  They also found themselves priced out of the market.  However, because buyers in the mid-80’s had much more housing supply, homes became more affordable as mortgage rates fell in subsequent years.

First-time buyers today have it much harder.  While affordability is likely to improve by year end if borrowing rates ease and inventory continues to grow, it won’t get significantly better without more home building, economists say.

The chart below shows the housing affordability index:

 

 

The chart above is based on national statistics and as I’ve always said, “real estate is local”—meaning that the affordability of folks here is considerably better than nationally.  However, that said, we are still suffering from a low supply of existing homes for sale and that is keeping a number of folks from becoming homeowners.  

Recent local stats are looking better in terms of people listing homes for sale and I’m hopeful that as interest rates ease more we will see more of those who have been sitting on the fence making their moves (literally) and the supply of available homes for sale will grow.

 

ERA SHIELDS STAT PACK

Data through July 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

August 8, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

LOCAL HOME PRICES CONTINUE TO RISE BUT…FOR THE FIRST TIME IN AGES, MORTGAGE RATES ARE DOWN…

I’ve written and talked a lot about mortgage rates in recent months because of their impact on affordability.  If you’re one of the many who have waited to make a move you’ve probably been waiting for the rates to go down.  Well, you are now getting your wish.

The big news for mortgage rates is that mortgage rates are down a full percentage point from the recent high.  This is HUGE.  This chart makes note of it:

 

 

It’s possible you have seen this as well and are still wondering how low rates are going to go.  Well, let me assure you that the rates we saw during the pandemic are a thing of the past.  If you are holding out to see a 3% mortgage rate again, you’ll be waiting for something that experts agree won’t happen.

As Greg McBride, Chief Financial Analyst at Bankrate said:

” The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates…the best we may be able to hope for over the next year is 5.5 to 6%.”

The big decrease in recent weeks is a gift for those who have been sitting on the fence.  This may just the right time for you to get moving…literally.  

As you will see in the statistics below, home appreciation in Colorado Springs is still on the rise and will continue to do so.  What that means is that as home values increase, you are going to pay more because the borrowed amount will be higher, even with lower interest rates.

And, with loan rates decreasing, it’s possible that more and more buyers will be entering the market, thus driving up prices even more and bringing back bidding wars.

So, if you have even thought about making a move, NOW is the TIME.  But you won’t know until you start the process.  

Just email me at Harry@HarrySalzman.com or call me at 719.593.1000 and together we can begin to get a better picture of how to best take your wants, needs and budget requirements and use them for the best outcome for you and your family. 

 

And, if you’ve got two minutes, look at my new and improved video podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/ZHnXnF41mUM

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

JULY 2024

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

Here are some highlights from the July 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 31.  For condo/townhomes it was 38.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.5% and for condo/townhomes it was 99.3%.  

 

In Teller County, the average days on the market for single family/patio homes was 48 and the sales/list price was 97.4%.

 

Please click here to view the detailed 10-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 July 2024 to July 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,640, Up 12.0%

·       Number of Sales were 1,127, Up 0.7%

·       Average Sales Price was $571,152, Up 5.7%

·       Median Sales Price was $499,000, Up 5.7%

·       Total Active Listings are 3,273, Up 45.2%

·       Months Supply is 2.9, Up 63.2%

 

 

Condo/Townhomes:

·       New Listings were 246, Up 9.8% 

·       Number of Sales were 145, Down 9.4%

·       Average Sales Price was $381,437, Up 4.6%

·       Median Sales Price was $354,900, Up 3.6%

·       Total Active Listings are 596, Up 97.4%

·       Months Supply is 4.1, Down 10.4%

 

JULY 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

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

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

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

 

• Sold Listings for All Properties were Up 3.0%

 

• Median Sales Price for All Properties was Up 5.4%

 

• Active Listings on All Properties were Up 35.5%

 

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

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, July 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD   

Updated July 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr.Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here.  

 

July 27, 2024

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

EVEN WITH HOME PRICES REACHING RECORD HIGHS AND MORTGAGE RATES STILL HOVERING AROUND 7%, THE SECOND HALF OF 2024 MAY STILL PRESENT SOME OPPORTUNITIES FOR YOU

Yes, you read that right.  I know that homes keep appreciating and mortgage rates are still higher than we saw just several years ago, but…2024 could still be the year you can put your wants, needs and budget requirements to work and find a new home for you and your family.

I’ve been in the local residential real estate arena for 51 years now and have seen most every cycle imaginable.  And as I’ve told you time and again, there are always going to be those who need to buy and those who need to sell at any given time.

There are ways to make your dreams a reality, but it takes some work and preparation.  That’s why you’ve got me.  With my years of experience, coupled with my investment banking background, I can often find ways to make things happen that many other brokers can’t.  

If you have been putting off a search you will see some statistics below that can help you understand why NOW may just be the time to jump back in the market.

But you won’t know unless you ask.   If you’ve been waiting, now is a good time to explore the possibilities.  Give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s together see what we can do to make 2024 the year your Residential real estate dreams come true.

 

UNLOCKING HOMEBUYER OPPORTUNITES THIS YEAR

KeepingCurrentMatters, 7.18.24

 

There is no mistaking the fact that 2024 has been a difficult year for homebuyers.  If you’ve put your search on hold, you are not alone in that.  A  Bright MLS study found that some of the top reasons buyers have paused their search in late 2023 and early 2024 were:

• They couldn’t find anything in their price range
• They didn’t have any successful offers or had difficulty competing
• They couldn’t find the right home

If any of those sound like why you stopped looking, here’s what you need to know now.  The housing market is in a transition in the second half of 2024 and here are four reasons why this may be your chance to jump back in the search.

 

1.  The Supply of Homes For Sale is Growing.  One of the most significant shifts in the market this year is how the months’ supply of home for sale has increased.  If you look at data from the National Association of Realtors (NAR) you will see how inventory has grown throughout 2024. See graph below:

 

 

The graph shows the months’ supply of existing homes—homes that were previously lived in by another homeowner.  The upward trend this year means you have a better chance of finding a home that fits your individual wants, needs and budget.

 

2. There’s More New Home Construction.  And, if you don’t find an existing home for sale that’s right for you, another opportunity lies in the rise in new home construction.  Builders are working to increase the supply of newly built homes his year and are turning to smaller, more affordable homes based on the needs of families today.  This could be a viable option and I can help you in this area as well—at no additional cost to you!

According to data from the Census and NAR, one in three homes on the market is a newly built home (see graph below):

 

                        

This means that if you didn’t previously consider newly built homes as part of your search, you may have been cutting down your pool of options by a third.  And some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to get a home they can afford.

 

3. Less Buyer Competition.  Mortgage rates are still around 7% so buyer demand is not a fierce as it once was.  When you combine that with more housing supply you have a better chance of avoiding an intense bidding war like those we saw several years ago.  Danielle Hale, chief economist at Realtor.com highlights the positive trend for the latter half of 2024: “Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs”.

 

4. Home Prices are Moderating.  And speaking of prices, home prices are also showing signs of moderation—a welcome relief after the rapid appreciation seen in recent years (see graph below):

 

This moderation is mostly due to supply and demand.  Supply is growing and demand is easing, so prices are not rising as fast.  But make no mistake—prices are not falling; they are simply rising at a more normal pace.   You can see above that the prices are still increasing, just not as dramatic as it was before.

The average forecast for home price appreciation in 2024 is for positive growth around 3% to 5%, which is more in line with historical norms. 

 

Bottom Line:

If you have put off your dream of homeownership or selling to trade up, the second half of 2024 may be your opportunity to jump back in.  

Simply give me a call and together let’s see how we can make your residential real estate dreams come true.

 

THE BIGGEST MISTAKES HOMEBUYERS ARE MAKING RIGHT NOW..AN INFOGRAPHIC…

KeepingCurrentMatters, 7.18.24

 

Bottom Line:

Once more with feeling…. NOW is a great time to start your search.  You might be pleasantly surprised at what you can afford.  And let’s not forget…. home appreciation, while slower than in the past, is not going to stop.  

If you are renting you are still paying a mortgage…just someone else’s.  Why not put your hard earned money to work for YOU?

July 9, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

JULY FOURTH, THE UPCOMING SUMMER OLYMPICS…AND OF COURSE THE NOVEMBER ELECTIONS…LOTS OF REASONS TO BE PROUD OF BEING AMERICANS

I hope everyone had a safe and healthy July Fourth…along with lots of yummy food and fun festivities.

Every four years I am especially reminded of what a privilege it is to be an American.  Those of us who live in Colorado Springs have daily reminders due to the proximity of the U.S. Olympic and Paralympic Committee, the U.S. Olympic and Paralympic Museum and the Olympic Training Center.  But when we get to watch the trials and the actual Olympic and Paralympic games on television—this year from Paris—it sure gets exciting for me. 

And of course, I always look forward to the opportunity to vote for the candidates of my choice at each election—a special right I truly don’t take for granted.

Thanks for indulging me for a moment.  

I am one of many millions of folks who experienced the great American Dream.  Being the product of grandparents who migrated to this country with nothing, became grateful U.S.Citizens, and afforded me the opportunity to grow up here and create my own destiny is something I truly appreciate.  I am grateful every day knowing that my working hard to go to college and continuing to work hard every day since has truly paid off in ways I, or my family, could never have imagined. 

This hard work has allowed me to meet and work with you and so many others. It is not something I ever take for granted and I hope to continue helping clients find their dream home for the foreseeable future.

In April I began 52 years in local Residential real estate.  As you might suspect, I’ve seen most every cycle imaginable and have always been able to help my clients find what they want, need, and can afford, either for themselves or for investment purposes.  

Coupling that with my Investment Banking background, I have an edge up that my clients have found to be crucial in helping with their individual situations.  When I work with you, your goals become mine and together we make a great team to realize all your Residential real estate dreams.

If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

If you’ve got one minute and 42 seconds, please look at my new and improved video podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

To watch, click here:

https://youtu.be/Qkuc3XkX2f8

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

JUNE 2024

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

Here are some highlights from the June 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 30.  For condo/townhomes it was 40.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 98.9% and for condo/townhomes it was 99.0%.  

 

In Teller County, the average days on the market for single family/patio homes was 30 and the sales/list price was 99.3%.

 

Please click here to view the detailed 10-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 2024 to June 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,667, Down 1.7%

·       Number of Sales were 1,115, Down 13.3%

·       Average Sales Price was $564,406, Up 1.6%

·       Median Sales Price was $499,000, Up 2.9%

·       Total Active Listings are 2,974, Up 44.4%

·       Months Supply is 2.7, Down 3.3%

 

Condo/Townhomes:

·       New Listings were 279, Up 19.2% 

·       Number of Sales were 154, Down 27.7%

·       Average Sales Price was $392,844, Down 4.2%

·       Median Sales Price was $365,000, Up 2.8%

·       Total Active Listings are 574, Up 101.4%

·       Months Supply is 3.7, Down 3.7%

 

JUNE 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

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

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

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 15.2%

 

• Median Sales Price for All Properties was Up 2.5%

 

• Active Listings on All Properties were Up 31.8%

 

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

 

real estate STILL HOLDS THE TITLE OF BEST LONG-TERM INVESTMENT

KeepingCurrentMatters, 7.2.24

Despite all the headlines concerning high home prices and mortgage interest rates which could understandably make you wonder whether it’s the right time to buy a home, you can rest assured that it’s always a good time to buy.  

And here’s some information that can put your mind at ease and shows that investing in a home is still a powerful decision.

According to the experts at Gallup, real estate has been crowned the top long-term investment for a whopping12 years in a row.  It has consistently beat out other investment types like gold, stocks, and bonds.

Just take a look at the graph below—it speaks volumes:

 

So why does real estate continue to reign supreme as a top-notch long-term investment?  It’s because even in today’s market buying a home can be your golden ticket to building wealth over time.

Unlike many other investments that can feel somewhat like riding a rollercoaster with all the ups and downs and ongoing risk factors, real estate follows a more predictable and positive pattern.

History has shown that home values usually rise.  And while prices may vary by market, that means as time goes by, your house is likely to appreciate in value.  That helps you grow your net worth in a big way.

An article from Realtor.com explains it this way:

“Homeownership has long been tied to building wealth—and for good reason.  Instead of throwing rent money out the window each month, owning a home allows you to build home equity.  And over time, equity can turn your mortgage debt into a sizeable asset.”

If you have been on the fence about whether now is a good time to buy, remember that real estate was consistently voted the best long-term investment for a reason.  

Just give me a call and together we can take your wants, needs and budget requirements to decide how best to make them work in finding a new home for you and your family.

 

ERA SHIELDS QUARTERLY STAT PACK 

Data through June 2024,, ERA Shields

Here is data from my company’s quarterly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety. 

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, June 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

To access the report, please click here.  And if you have any questions, give me a call.

 

June 26, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

AS AN ETERNAL OPTIMIST, THE housing market OF LATE HAS CERTAINLY TESTED MY BELIEF SYSTEM

Yes, between the shortage of available homes for sale and higher mortgage interest rates, it’s been a unique situation for me to guide my buyers and sellers in a direction that best fits their individual needs, wants and budget requirements.  

My background in Investment Banking has given me a heads up on most Residential real estate brokers and also has proven to me that in most situations it is still in the best interest of my clients to buy and/or sell at most any time.  As I have perpetually advocated…there is always someone who needs or wants to sell and one who needs or wants to buy.  With that in mind, we can make the best of most any situation.

As many of my past clients can attest, unless I can find the right fit, I don’t want to have a sale.  I’ve been doing this for more than 52 years on April 1 and I’m in it for the relationships…not just a quick sale.  I take great pleasure in the many long-term clients who have become friends and I have enjoyed working with their children and even grandchildren in recent years.  

That being said, it’s been quite a different couple of years for my clients and that makes me work all the harder to find positive endings for them and their families.

Colorado Springs has always been a great place to live, especially with its terrific work/life balance.  For a long time it was “our little secret” and that kept the price of housing more affordable.  Not so at the moment with the shortage of available homes for sale.  Hopefully that will turn around before too long.

It seems lots of folks want to relocate here either for a job, to be closer to family, to retire, or simply because it’s such a special place to live. Whatever the reason, these folks are all competing for the same homes and there just aren’t enough of them to fill demand.  

With predictions of at least one rate cut by the Fed before year’s end, this could lead to a gradual easing of mortgage rates.  That could help folks who have been on the fence to finally list their present home and look toward their future.  

The recent big rally in bonds has also been a boost for housing in that it pushed down the yield on the 10-year U. S. Treasury note by nearly a half percentage point, another hopeful indicator for lowered mortgage rates in the future.  

A good sign locally is that building permits for new home construction jumped in May, indicating that some on-the-fence buyers are no longer waiting for rates to drop significantly before purchasing a new home.

One of the articles below shows you the predictions for the second half of 2024 and me being me...I’m all in on hoping that everyone who is looking to buy and/or sell can have a happy ending.

If you’ve been waiting, now is a good time to at least explore the possibilities.  Give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s together see what we can do to make 2024 the year your Residential real estate dreams come true.

 

If you’ve got two minutes and three seconds, look at my newest podcast on this very subject. Simply click on the link below and you will be directed to my personal YouTube channel.

To watch, click here:

https://youtu.be/RF_2VIVTfqg

 

To read the entire 47-page copy of “The State of the Nation’s Housing…2024” that I reference in the video, please click here.

And while you’re at it you might want to subscribe to my channel so you won’t miss future broadcasts.  It won’t cost you anything.  Well, it could cost you… if you miss some of my informative musings!

 

housing market FORECAST:  WHAT’S AHEAD FOR THE 2^ND HALF OF 2024

KeepingCurrentMatters, 6.24.24

Moving further into the second half of 2024, here’s what experts say you should expect for home prices, mortgage rates, and home sales.

 

Home Prices Are Expected to Climb Moderately

As in the recent past, home prices are forecasted to continue rising at a more normal pace.  The graph below shows the latest forecasts from seven of the most trusted sources in the industry.

 

 

As I’ve said before, and according to Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), “One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory.”

Yes, inventory is up compared to the last couple of years but it’s still low overall, both nationally and here in Colorado Springs.  And because there still aren’t enough homes to go around, that’s going to keep upward pressure on prices.

If you are currently thinking of buying, the good news is you won’t have to deal with prices skyrocketing like they did during the pandemic.  But remember, prices are not expected to drop.  They will continue climbing, just at a slower pace.  

 

Getting into the market sooner than later could still save you money in the long run.  Plus, you can feel confident experts say your home will grow in value after you purchase it.

 

Mortgage Rates Are Forecast to Come Down Slightly

A good piece of news for both buyers and sellers is that mortgage rates are expected to come down a bit, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR.

 

When you buy, even a small drop in mortgage rates can make a big difference in your monthly payments.  For sellers, lower rates are going to bring more buyers into the market which can help you sell faster and potentially at a higher price.  

 

Home Sales Are Projected to Hold Steady

We should see about the same number of home sales in 2024 as we did last year and perhaps a few more.  The graph below compares the 2024 homes sales forecasts from Fannie Mae, MBA and NAR to the 4.8 million homes that sold nationally last year.

 

The average of the three forecasts is about 5 million sales nationally in 2024—a small increase from 2023.  Lawrence Yun, Chief Economist at NAR puts it this way:  

“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”

With more available inventory and lowered mortgage rates expected a few more homes should be sold this year compared to 2023.  

If you are looking to buy or sell, this is good news.  Call me sooner than later to explore all your options.

June 5, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

PRICES CONTINUE TO RISE AND THE BUYING AND SELLING SEASON IS NOW HERE

Things are starting to pick up as you will see by the statistics below.  Active listings are up 51% for single-family/patio homes and Condo/Townhome listings are up a whopping 87% year-over-year.  

And the median sales price for single family/patio homes is up 5.1%.  

What does that tell me?  Just what I’ve been telling you for a while now…folks are ready to sell, either to trade up, move to a new neighborhood or simply want to buy for investment purposes.  Whatever the reason, things are beginning to move (pun intended).

While interest rates are still high compared to several years ago, they haven’t fluctuated much and aren’t likely to go down significantly this year.  

On the other hand, as you will continue to see, prices are continuing to rise and that’s not likely to change much either.

If you have even considered a move, give me a call and let’s see how together we can make that happen.  

In April I began 52 years in local Residential real estate.  As you might imagine, I’ve seen most every cycle imaginable and have always been able to help my clients find what they want, need, and can afford, either for themselves or for investment purposes.  

Coupling that with my Investment Banking background, I have an edge up that my clients have found to be crucial in helping with their individual situations.  When I work with you, your goals become mine and together we make a great team to realize all your Residential real estate dreams.

If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And, if you’ve got one minute and 52 seconds, look at my new and improved video podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

To watch, click here:

 https://youtu.be/TGZba93jjWQ

 

While you’re at it you might want to subscribe to my channel so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

MAY 2024

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

Here are some highlights from the May 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 31.  For condo/townhomes it was 37.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.8% and for condo/townhomes it was 99.0%.  

 

In Teller County, the average days on the market for single family/patio homes was 62 and the sales/list price was 97.5%.

 

Please click here to view the detailed 10-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 2024 to May 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,848, Up 16,2%

·       Number of Sales were 1,142, Down 8.1%

·       Average Sales Price was $557,050, Up 3.8%

·       Median Sales Price was $499,000, Up 5.1%

·       Total Active Listings are 2,645, Up 51.1%

·       Months Supply is 2.3, Down 6.3%

 

 

Condo/Townhomes:

·       New Listings were 302, Up 24.8% 

·       Number of Sales were 183, Down 1.6%

·       Average Sales Price was $370,732, Up 2.1%

·       Median Sales Price was $340,000, No change

·       Total Active Listings are 492, Up 87.1%

·       Months Supply is 2.7, Down 54.0%

 

 

MAY 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

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

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

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 7.6%

 

• Median Sales Price for All Properties was Up 3.3%

 

• Active Listings on All Properties were Up 39.2%

 

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

 

SHOULD I RENT OR SHOULD I BUY…AN INFOGRAPHIC

KeepingCurrentMatters 5.17,24

 

This is a question I’ve been asked quite often during the last year since interest rates are higher than they were several years ago.  

Bottom Line:

 

• While renting may be less expensive in some areas right now, there are three big benefits homeownership provides that renting can’t.

 

• Owning a home means you get to say “goodbye” to rising rents and “hello” to stability.  It also gives you the opportunity to gain equity as home values rise over time.

 

• And, if you have a mortgage you will have a nice tax deduction on both your interest expense and property taxes.

 

Sometimes it’s easier to become a first-time homeowner than you might imagine.  If this is something you are considering, why not give me a call and let’s see if homeownership might be in your near future.

 

IS IT TIME TO BUY OR WAIT?

The Wall Street Journal 5.31.24

As most any active residential real estate broker will tell you, the period between mid 2020 through 2022 was a crazy time for us.  Rates were low and we could hardly keep up with the demand.  

Well, buyers want the historically low interest rates of three years ago, not the 6 % to 7% they are looking at now.

But, quite honestly, in real estate, the show must go on.

“We forget that residential real estate is a unique asset class because it stores human beings,” says Leo Pareja, CEO of eXp Realty, a worldwide real estate brokerage operating in 24 countries.  “In my experience, 80% to 90% of all moves are that of the human condition.  We fall in love, we make little people, we need more space or less space.  I don’t think anybody ever woke up and said, ‘Hey, rates are perfect.  I’m gonna buy a house.’  It’s that human condition trigger than happens regardless—death, divorce, promotions—that motivates people.”

“I’ve always been of the opinion to focus on the folks who need to move, those who need another bedroom or who have to sell, whether it’s for financial difficulties or any other life changes,” he added.

It’s exactly what I’ve always told you—there are always people who need or want to sell and those who need or want to buy.

Interest rates are not going down significantly in the immediate future and will likely never go as low as the early 2020’s.  

However, home prices will continue to rise and with them is the equity you are earning in what is likely your greatest asset.

So, is it the right time for you?  Only you can answer that.  If you need more or less space or want to move to another neighborhood the answer is probably yes.  

But you won’t know for sure unless you sit down with me and discuss all the pros and cons and various available options.

If you’ve been waiting, the time is now.  Give me a call and let’s see what we can do for you and your family.

 

THE FED ISN’T THE ONLY FACTOR AFFECTING HOME RATES

The Wall Street Journal, May 2024

Most buyers are accepting that the Fed is not going to give them a break by lowering rates this spring. 

But the Fed isn’t the only factor affecting mortgage costs.  If you give your financial information to two different lenders you may find that you will receive two very different quotes that can mean saving or losing tens of thousands of dollars.  That variation has grown since the Fed started raising rates in 2022.

It’s often common to find a half-point difference between lender A and lender B simply by making a couple of phone calls.

Optimal Blue, a mortgage technology and data company that processes rate locks for roughly a third of residential mortgages, analyzed its data to show a few of the variables baked into your rate.  They range from credit scores to geography to the company that extends your loan.

 

The 800 Club

As rates have risen, the payoff for having a great credit score has paid off.  People with scores of 800 or more locked in an average rate that is sometimes been more than a quarter of a percentage point lower.

That suggests that borrowers with higher credit scores tend to be more aggressively shopping for rates, according to Brennan O’Connell, director of data solutions at Optimal Blue.

Research has found that financially savvy borrowers ten to lock in the lowest rates.  Buyers of all credit types are encouraged to shop around.  The Consumer Financial Protection Bureau has a tool that shows the range of rates available to buyers.

 

State by State

Mortgage rates, like most everything else in real estate, come down to location.  According to data from Optimal Blue, similarly situated buyers in Iowa and New Hampshire might lock in rates that differ by half a percentage point.

While it’s hard to explain why rates vary from state to state, economists say there are differences between regions that can affect rate, such as the financial sophistication of the population, or state regulations and taxes.

 

Who’s Your Lender?

The first step in mortgage shopping is figuring out where to go for a quote.  Credit unions, banks and mortgage companies all offer home loans, but their rates often differ based on how much they want your business.

Not-for-profit credit unions on average offer the lowest rates.  Mortgage companies are a bit higher and banks are currently the highest.  Banks at one time were offering lower rates than mortgage companies but they have currently ceded market share to mortgage companies.

Banks became less aggressive after the financial crisis of 2008.  Mortgage companies made 71% of originations in the first nine months of 2023 according to industry research group inside Mortgage Finance.

 

Fannie and Freddie

Well over half of home loans end up in the hands of Fannie Mae and Freddie Mac.  These companies don’t extend loans but buy them from lenders and package them into securities to sell to investors.

There are federal guidelines for how Fannie and Freddie should price mortgages to compensate for the risks embedded in them.  Mortgages for primary residences, for example, tend to have lower rates than loans for investment properties.

Even small changes in that pricing can have big consumer impacts.  

I look at the price of wholesale money each morning and work to direct my clients to the best lenders for their individual situations.  Just one of the services I am happy to provide to make certain my clients get the best rates available to them.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, May 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

To access the report, please click here.  And if you have any questions, give me a call.

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD 

Updated May 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr.Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here.  

 

 

May 21, 2024

 

HARRY’S BI-WEEKLY UPDATE

                              A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

IT’S PEAK BUYING AND SELLING TIME AND HERE ARE THE STATS TO PROVE IT

Well, folks, if you’ve even been considering a move, now is the time to put those thoughts into motion.

If you don’t believe that’s so you might become a believer when you see the data below.  

Here are three charts that show historic yearly sales from 2018 to 2023 that will back me up.

The first one shows all sales of single-family homes in Colorado Springs in the price range of $400,000 to $700,000:

 

 

This one shows all sales of single-family homes in El Paso County in all price ranges:

 

 

And, finally, this one shows all sales of single-family homes in El Paso County in the price range of $400,000 to $700,000:

 

 

As you can see, I back up my words with true data and put it to use in helping my clients get the best results, whether they are buying or selling or both.  And the time to do that is NOW as you can see that peak sales are during the spring and summer months.

If you’ve got two minutes and seven seconds, look at my newest podcast on this very subject. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/hrfX22stWv0

 

While you’re at it you might want to subscribe to my channel so you won’t miss future broadcasts.  It won’t cost you anything.  Well, it could cost you… if you miss some of my informative musings!

April 1^st I began 52 years in local Residential real estate.  That, coupled with my Investment Banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

 

And now for the statistics that were not available at press time for the 5.6.24 eNewsletter…

 

APRIL 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

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

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

 

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 6.6%

 

• Median Sales Price for All Properties was Up 5.2%

 

• Active Listings on All Properties were Up 23.5%

 

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

 

 

COLORADO SPRINGS HOME PRICES CONTINUE TO RISE IN LAST QUARTER 2023

The National Association of Realtors, 5.8.24

In the recently published report from the National Association of Realtors (NAR), single-family, existing-home prices grew more than 90% in measured metro areas.  This is up 86% from the previous quarter.

According to Lawrence Yun, chief economist for NAR, “Astonishingly, greater than 90% of the country’s metro areas experienced home price growth despite facing the highest mortgage rates in two decades.  In the current market, rising prices are the direct result of insufficient housing supply not meeting the full demand.”

Compared to a year ago, the national median single-family existing-home price climbed 5% to $389,400.  In the prior quarter, the year-over-year national median price increased 3.4%.

The median price of single-family homes in Colorado Springs rose 0.9% to $448.800 during the last quarter of the year, per NAR.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 47^th highest of the 221 cities surveyed.  

To see all 221 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  Or click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

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

 

COLORADO SPRINGS RANKED NUMBER 3 IN BEST PLACES TO LIVE

U.S. NEWS AND WORLD REPORT, 5.19.24, The Gazette, 5.21.24

Colorado Springs jumped six places from number 9 last year to number 3 in the U.S. News and World Report’s “Best Places to Live” rankings for 2024-2025.  

“Our secret is out—Colorado Springs is indisputably one of the best places to live in our great country, and we are proud to again rank as one of the top cities in this reputable list by U.S. News & World Report”, said Colorado Springs Mayor Yemi Mobolade via email to The Gazette.

To compile the rankings, the magazine uses data from the Census Bureau, FBI, the federal Department of Labor and its own internal sources.  It also surveys thousands of people to determine the most important factors to them when they chose a place to live.

U.S.News categorized its data into four indexes that help determine Best Place to Live scores for the 150 largest cities in the U.S. and Puerto Rico:  quality of life, which this year made up 32% of a city’s rankings; value 27%, job market 22% and desirability 19%.

In another key part of the desirability index, U.S. News surveyed 3,500 people nationwide in February to ask in which of the 150 cities they’d most like to live.

The result?  Respondents rated Colorado Springs as their No 1 choice, which along with other desirability index components helped propel it to No. 3 overall in the rankings.

Of the other three Colorado cities on the list, Boulder ranked No.10, down from No. 4 last year; Fort Collins slipped to No. 39 from No. 23; and Denver ranked No. 40, considerably higher than their ranking of No.99 last year.

So, once again, when you consider how few existing homes we currently have for sale, you can see part of the reason. Everyone wants to live here!!

 

AND..THIS JUST IN…A LISTING OF FARMERS MARKETS AROUND THE PIKES PEAK AREA…

 

 

 

HARRY’S JOKE OF THE DAY: 

(actually, more truth than fiction in today’s market)

 

 

 

FEATURED LISTING:

Keep looking here in future issues…. a new listing will be here soon.  And, if you’re ready to sell, yours will be here as well.

 

May 3, 2024

 

HARRY’S BI-WEEKLY UPDATE

            A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

MORE AND MORE AND MORE OF THE SAME…. OR AS THE WALL STREET JOURNAL STATED IN THE “MANSION” SECTION ON FRIDAY… “A Whole Lot of NO INVENTORY!”

 

I wish I had something to add, but that sums it up.  

With interest rates reaching their highest level in over five months, home prices continuing to rise and very few affordable existing homes listed for sale, I’m afraid it’s going to be more of the same for a while.

Yes, there are always those wanting or needing to buy or sell and that holds true no matter the cycle or rates or prices, but baring that, things are pretty quiet during what is traditionally the busiest time of the year in Residential real estate.

As you will see below, home appreciation is great, but as you know, some of that is due to the reasons above.  If there were more homes for sale appreciation, while still happening, might not be as high.

What I can tell you for certain is that home appreciation isn’t going to stop, but at some point, mortgage lending rates WILL go down.  So, if you have been putting off making a move you might want to at least see where your wants, needs and budget requirements can take you.  

There are a number of ways to get better than the “advertised” rate and you can always have it written in your contract the ability to refi without penalty when rates are lower.  But the longer you wait, the more it’s going to cost you.  

If you have even considered a move, give me a call and let’s see how together we can make that happen.  

Last month I began 52 years in local Residential real estate.  As you can imagine, I’ve seen most every cycle imaginable and have always been able to help my clients find what they want, need, and can afford, either for themselves or for investment purposes.  

And coupled with my Investment Banking background, I have an edge up that my clients have found to be crucial in helping with their individual situations.  When I work with you, your goals become mine and together we make a great team to realize all your Residential real estate dreams.

If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

On another subject, I’ve been asked about the pending real estate changes that are due to happen sometime in late summer.  Having attended a number of seminars on the subject, no one quite has a clear vision as to how it is all going to play out.  As soon as I know more, as always, I will share that with you.

 

And, if you’ve got one minute and 39 seconds, look at my new and improved video podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/1Ewa_klb7Io

 

While you’re at it you might want to subscribe to my channel so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

APRIL 2024

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

Here are some highlights from the April 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 38.  For condo/townhomes it was 40.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.8% and for condo/townhomes it was 99.2%.  

 

In Teller County, the average days on the market for single family/patio homes was 49 and the sales/list price was 98.4%.

 

Please click here to view the detailed 10-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 April 2024 to April 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

 

·       New Listings were 1,666, UP 11.4%

·       Number of Sales were 959, Down 12.0%

·       Average Sales Price was $564,715, Up 6.1%

·       Median Sales Price was $490,000, Up 6.8%

·       Total Active Listings are 2,139, Up 34.5%

·       Months Supply is 2.2, Down 2.9%

 

 

Condo/Townhomes:

 

·       New Listings were 279, Up 33.5% 

·       Number of Sales were 144, Up 2.9%

·       Average Sales Price was $365,411 Up 0.2%

·       Median Sales Price was $338,000, Down 3.4%

·       Total Active Listings are 416, Up 72.6%

·       Months Supply is 2.9, Up 25.4%

 

I normally put the detailed neighborhood reports here but they were not available at press time so I will send them out in a separate “special edition” when they become available.

 

DO NOT BUY A HOME WITHOUT CONSIDERING THESE 8 IMPORTANT FACTORS

FOOD, DRINK, LIFE, 3.24

Buyer’s remorse is not good in any transaction, but when it comes to a home it goes way beyond a normal everyday purchase.  That said, you want to make certain you don’t overlook some of the items listed below.  You’ve got me to help you look for them, but it’s good to know beforehand what is important.  I’ve only touched on a few of the many items that need to be checked and this is something we can do together.  Of course, your home inspector will be doing some of these things for you as well.

 

Assessing the Property Itself.  While some of the modern aesthetics may first hit your eye, don’t let them lead you astray.  There are several other factors to consider as well because let’s face it—you want practicality along with a beautiful home.

 

Sunlight Exposure.  The amount of light a home gets may not cross your mind immediately, but it is something you don’t notice until you do not have it.  The best way to see if a home has sufficient sunlight is to ask to view it at different times of the day.  Having sufficient sunlight can change not only your home settings, but also your mood.

 

Property History.  Find out what renovations or additions were made in the past and whether there were any issues such as a fire or flooding.

 

Survey the Community.  Look around to see the makeup of families living nearby. Are there young children for yours to play with or is it a community of mostly empty nesters?  Are there schools or parks nearby?  How about restaurants or gyms? See if the things that matter to you and your family are part of the community and near enough for your personal convenience.

 

Look for Potential Disturbances.  Consider whether there are any sources of noise or pollution that could affect you.  Be it busy roads, commercial establishments, upcoming construction or more, these are things that could potentially have you rethinking your investment.

 

Accessibility and convenience.  You need to consider how far it is to your place of work or your children’s schools.  Even the distance to the grocery store or shopping could be an important factor in your decision.

 

Commute and transportation.  A search on Google maps can help you understand various routes and commute times to key destinations such as school, work, the gym, grocery stores and more.  Sitting in traffic all day to get from Point A to Point B can be stressful and make you question your home buying decision.  It is best to choose a home that can make your day easier, not more difficult.  Your quality of life and that of your family should be an important consideration in your home’s location.

 

Amenities.  And similarly, living near hospitals, green spaces and rec centers is a bonus.  Once again, convenience is unbeatable.

 

Growth Potential.  Homeownership is one of the biggest investments of most families, so it is not too early to think about the property’s resale potential. You will want to know what if any construction projects are planned nearby as this could increase the value of your property.  On the other hand, depending on what they are, your property could be adversely affected as well.  Anticipating these changes can better help you understand the potential resale value of your property.

 

It is Time to get House-Hunting.  Well, you certainly know what comes next.  You contact me at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get the ball rolling!

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, April 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

I’ve reproduced the first page of the graphics below.  To access the report in its entirety, please click here.  If you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD 

Updated April 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr.Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here.  

 

 

FEATURED LISTING:

Yours here?  I keep selling them as soon as I get them so if you’re wanting to sell, it’s a great time.

April 18, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer 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.

 

 

RATES ARE STILL HIGH, AVAILABLE HOMES ARE STILL SCARCE, BUT…

…it couldn’t be a better time to buy or sell. 

Yes, you read that right.  In my 52 years of selling Residential real estate in the local market, I’ve witnessed just about every type of “market cycle” and there is one thing I can tell you for certain—it’s always a good time to buy or sell.

And, more importantly, there are always those who want or need to buy or sell at most every moment for various personal reasons.

This much I know.  While interest rates are high, there is no guarantee that they will drop significantly, and they could go higher.  Even if they do drop, they are not likely to ever fall to the historic lows we saw several years ago.  And when they do drop, you can always refinance at the lower rate.  In fact, some lenders are even writing that option into their loan documents.

Another way to get around the higher mortgage rates is to get a “buy down” from a builder or seller.  This will essentially lower your rate.

So, if the higher rates are a problem, there are ways around them, and I’m your guy when it comes to finding those ways.  My long-time experience, coupled with my Investment Banking background, gives my clients a distinct advantage in so many areas.

Home appreciation is another factor to consider.  As you have seen from the statistics I publish monthly, home values are not depreciating.  In fact, while they are not rising as quickly as in the recent past, they are “normalizing”, and it is very unlikely you will see home depreciation in the Colorado Springs area, especially with so many companies expanding or wanting to relocate here.

Home appreciation begins when you buy your home, no matter what your interest rate may be.  That means you are growing what is often your most valuable asset and that can be a considerable amount over time.  

If you have been waiting for rates to drop, either to buy for the first time or to sell and trade up, there is no better time than the present to find out how your wants, needs and budget considerations can work to get you the home of your dreams.

Just give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s discuss how together we can make that dream come true.

 

And, if you’ve got one minute and 39 seconds, take a look at my newest podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

 https://youtu.be/rS4mFhcQCJM

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

HOUSEHOLDS MAY FINALLY BE ADJUSTING TO HIGHER MORTGAGE RATES

Fannie Mae, March 2024

A recent Fannie Mae Home Purchase Sentiment Index showed that the percentage of respondents who said it is a good time to buy a home increased from 19% to 21% while those that said it is a bad time to buy decreased from 81% to 79%.  As a result, the net share of those who say it is a good time to buy increased 4 percentage points month over month.

In the same survey, the percentage of respondents who say it is a good time to sell a home increased from 65% to 66%, while the percentage of those who said it is a bad time to sell decreased from 35% to 34%.  As a result, the net share of those who say it is a good time to sell increased 2 percentage points month over month.

This monthly Fannie Mae survey was launched in 2010 and polls the adult general population in the U.S. to assess their attitudes toward owning and renting a home, purchase and rental prices, household finances and overall confidence in the economy.

The March 2024 survey, while indicating that folks are still worried about the economy in general, still shows that households may finally be adjusting to higher mortgage rates and ready to again consider buying and selling.

So, once more, if you’ve been considering a move, get a leg up on the potential competition by starting now.

 

7 TYPES OF TAX-DEDUCTIBLE HOME IMPROVEMENTS

National Association of Realtors (NAR) 4.9.24

Many homeowners say they’re planning major renovations this year and some of these projects may be eligible for a tax deduction which could help alleviate some of the high costs of homeownership.

Here are a few types of tax-deductible home improvements.  

 

• Energy-Efficient Upgrades

 

• Clean Energy Upgrades

 

• Historic Home Upgrades

 

• Medically Necessary Upgrades

 

• Home Office Repairs and Improvements

 

• Rental Property Repairs

 

• Capital Improvements

 

As always, be sure to discuss this with your personal tax advisor to find out if they apply to your individual situation.

 

THE PERKS OF DOWNSIZING WHEN YOU RETIRE…AN INFOGRAPHIC

KeepingCurrentMatters, 4.12.24

 

Some Highlights:

 

• If you’re about to retire, or just did, downsizing can be a good way to try to cut down on some of your expenses.

 

• Smaller homes typically have lower energy and maintenance costs.  Plus, you may have enough equity built up to fuel your move.

 

• If you’re thinking about moving to a smaller home, call me to help go over your goals and look at all your options in the local market.

 

WHAT BUYERS, SELLERS WANT MOST FROM real estate AGENTS

NAR, 4.4.24

As most of you are aware, there has been a lot of news concerning real estate brokers, fees, and more.  Most of us in the industry are still digesting all the upcoming potential rules and regulation changes and I will keep you informed as I gather the information.

A recent article published by the National Association of Realtors (NAR) stated that the majority of home buyers and sellers—nearly 90% of them—rely on real estate agents or brokers, but a new study from NAR indicated that what they need could differ depending on age and experience in the market.

For example, home buyers don’t just want help with finding a home, but also with negotiating and with learning about the real estate process, according to NAR’s 2024 Home Buyers and Sellers Generational Trends Report.

The study reported that “While the internet is being utilized throughout the home search, agents remain the most-used information source in the home search, followed by mobile or tablet search devices”. 

“Sellers, as well, turned to professionals to price their homes to potential buyers, sell within a specific time frame, and find ways to fix up their homes to sell them for more,” the study reported.

 

Buyers want a “Guide and a Coach”.  

Younger home buyers are more likely to say that one of the most difficult steps in the homebuying process—behind finding a property and saving for a down payment—is understanding the real estate process and the steps they need to take, the study found.

Older adults, ages 44 and up, tend to feel more confident heading into the purchase process, generally having had previous experience buying a home.  Nearly a quarter of older adults cited “no difficult steps” in the homebuying process, the survey says.  But they still report struggling with finding the right property and with completing the paperwork in a transaction.

 

WHAT BUYERS WANT MOST FROM real estate AGENTS

 

 

As buyers reflected on their experience, they reported that the most commonly cited benefits provided by real estate agents and brokers during the home purchase process were:

 

• Helping buyer understand the process:  61%

 

• Negotiating better sales contract terms:  46%

 

• Providing better list of service providers (i.e. home inspectors):  46%

 

• Improving buyer’s knowledge of search areas:  45%

 

• Negotiating a better price:  33%

 

• Shortening a buyer’s home search:  23%

 

• Expanding buyer’s search area:  21%

 

When choosing an agent, buyers said their top criteria were the agent’s experience (21%), honesty and trustworthiness (19%), reputation (15%), and whether the agent was a friend or family member (12%).  An agent’s reputation tended to be slightly more important to older generations than to younger generations, the study showed.

Home buyers also said they valued constant communication from their real estate agent, identifying their top likes as agents who personally call them to inform them of activities (73%), those who send them property information and communicating via text message (71%) and those who send them postings as soon as a property is listed or when the price changes or the listing is under contract (70%).

 

And now to Sellers…

 

What Home Seller Want:  Make Their Home Stand Out

More than one-third of home sellers—across all age groups—relied on a referral from a friend, neighbor or relative to find their real estate agent, the survey found.  Only 5% relied on internet searches to find one.  

Sellers reported their top criteria for choosing their real estate agent was the agent’s reputation, their honesty and trustworthiness, and whether the agent was a friend or family member.

 

WHAT SELLERS MOST WANT FROM real estate AGENTS, BY LEVEL OF SERVICE PROVIDED BY THE AGENT

 

 

I found this study to be very informative and I hope you did as well.  It makes me even more proud of my 52 years in this industry, to still be working with not only past clients, but also with children and even grandchildren of past clients.  I truly value your loyalty and work hard every day to continue to earn your trust. 

As I’ve said time and again, I’m not only in this only for a sale.  I’m also here to help my clients and their families find the place that will bring them the most personal happiness, and in the process, help earn them the added dividend of home appreciation.

 

 

HARRY’S JOKE OF THE DAY:   (HMMM…)

 

April 5, 2024

 

HARRY’S BI-WEEKLY UPDATE

       A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

SPRING BUYING AND SELLING SEASON IS ABOUT TO GET INTO FULL SWING…(I've still got Arizona Spring Baseball on the brain...full swing...get it?)...

And if you've even been thinking about buying or selling, sooner than later would be the best move (pun intended!)

Yes, mortgage rates are still considerably higher than two years ago, but home prices also continue to rise and don’t show any sign of stopping.  While they are rising much slower than several years ago, they are still rising as you will see from the statistics below.

What that means is that you are better off to buy now and refinance in a year or two when mortgage prices are lower.  Your home will likely appreciate during that time and of course, you will have the tax advantages that come with home ownership or buying as an investment.  

Of course, I’m not a tax advisor and can’t give you advice in that area, but it’s worth asking your investment and tax advisors to see how buying a home either for yourself or for investment can work for you.

There are even ways to negotiate mortgage rates and I can steer you in the right direction to see if that’s a possibility.

In fact, as most of you know, my help is invaluable.  The current market is not for the timid or inexperienced.  It takes a lot of advanced planning and knowledge of how to navigate these waters. 

And it’s important to take into consideration your individual wants, needs and budget requirements to come up with a viable plan.

April 1^st I began 52 years in local Residential real estate.  That, coupled with my Investment Banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And, if you’ve got one minute and 47 seconds, look at my newest podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/aBCEJgmi3FA

 

While you’re at it you might want to subscribe to my channel so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

MARCH 2024

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

Here are some highlights from the March 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 52.  For condo/townhomes it was 47.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.5% and for condo/townhomes it was 99.6%.  

 

In Teller County, the average days on the market for single family/patio homes was 77 and the sales/list price was 97.2%.

 

Please click here to view the detailed 10-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 2024 to March 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,337, Down 5.4%

·       Number of Sales were 941, Down 12.5%

·       Average Sales Price was $527,629, Up 0.7%

·       Median Sales Price was $470,000, Up 2.2%

·       Total Active Listings are 1,868, Up 26.2%

·       Months Supply is 2.0, Down 2.1%

 

 

Condo/Townhomes:

·       New Listings were 220, Up 7.8% 

·       Number of Sales were 152, Down 6.2%

·       Average Sales Price was $366,100, Up 2.8%

·       Median Sales Price was $335,000, Down 1.5%

·       Total Active Listings are 364, Up 54.2%

·       Months Supply is 2.4, Down 8.8%

 

Now a look at more statistics…

 

MARCH 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

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

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

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 13.9%

 

• Median Sales Price for All Properties was Up 0.2%

 

• Active Listings on All Properties were Up 13.4%

 

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

 

MARK YOUR CALENDARS…THE BEST TIME FOR SELLING A HOME IS ALMOST HERE

National Association of Realtors (NAR) 3.28.24

The week of April 14 could offer the perfect mix of market conditions for home sellers, according to a new realtor.com study.

The study, an analysis of trends in home sales, finds that sellers could potentially fetch as much as $34,000 more for their home if they list between April 14-20 when compared to the start of this year.  

Researchers are betting a powerful combination of high buyer demand, low seller competition and fewer price reductions that week—all of which work in a seller’s favor.

According to Danielle Hale, realtor.com’s chief economist, “Spring is generally the high season for home sales, and buyers tend to be more plentiful earlier in the year.”  

 “Because listing a home is a process, sellers should start preparing now so they can list their home at a time when conditions are likely to be most favorable, giving them the best chance of selling their home quickly and at a competitive price”, she added.  

Realtor.com’s analysis identified the “best time to list” by analyzing week-to-week listing metrics, including home prices, days on the market and number of listings, from 2018 to 2019 and 2021 to 2023 (the study excluded 2020 due to the Covid pandemic’s impact on the housing market).

 

What Makes April So Great for Sellers?

To begin with, housing inventory is down nearly 40% nationally compared to pre-pandemic levels, which offers opportunities for sellers this spring.  

But mortgage rates are higher--hovering  around 7%...and some home buyers have hit their affordability level and are leery of getting into the market now.

Still, researchers remain bullish that the week of April 14-20 is the right moment for sellers to make a move.  

Here’s why:

 

Higher home prices.  Historically, home prices during that week are typically 10.4% higher than the start of the year.  The study noted that “If 2024 follows last year’s seasonal trend, the national median listing price could be $7,400 higher than the average week, and $34,000 more than the start of the year”.

 

Increased buyer demand.  That same week also tends to offer 18.4% more online views per listing than the typical week.  In fact, realtor.com noted that in 2023, listing views surged even higher—up 22.8%--when compared to weekly averages during the rest of the year.  However, mortgage rates are still the wild card and falling rates will likely increase buyer demand while higher rates could make buyers more skittish.

 

Fast sales pace.  Homes tend to sell quicker during the week of April 14, selling about nine days faster than other weekly averages.  While housing inventory is rising but remaining historically low, buyers are forced to continue to compete for fewer properties.

 

Less competition from other sellers.  Typically, there are nearly 14% fewer homes on the market during that week comparted to other weekly averages.  Sellers stand to benefit from the least amount of competition from other sellers at that time.

 

Fewer price reductions.  Sellers tend to less frequently lower their asking prices in late winter and early spring, realtor.com’s data showed.  Historically, about 24% fewer homes had a price decrease during the week of April 14 compared to the average week of the year.

 

So, what are you waiting for?  It’s almost the week of April 14-20.  So if you have even thought of selling, give me a call and let’s get you the best price for your present home.

 

ERA SHIELDS QUARTERLY STAT PACK

Data through Quarter 1, 2024, ERA Shields

Here is data from my company’s quarterly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, March 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

I’ve reproduced the first page of the graphics below.  To access the report in its entirety, please click here.  If you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD 

Updated March 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr. Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy.

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

To read the monthly report, please click here.