Real Estate Information

March 6, 2017

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.

LOCAL HOME SALE PRICES ARE WAAYY UP…

If you are a local homeowner you’ve got a lot to celebrate.  In comparing February 2017 real estate average and median sales prices to February 2016—they are up—up—up.  That should put a big smile on your faces.

In the Single Family/Patio Home category, average sales price in February was $301,385 and median sales price was $255,000.  In the Condo/Townhome category the average sales price was $182,241 and the median sales price was $180,000.  This continues to be a Sellers Market with homes selling at 99.7% of listing price and a low average of 38 days on the market. 

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are down 0.6% and up 7.6% respectively for year-over-year.  This number would have been much higher if we had more listings.  (For example, in Single Family/Patio Homes we had 7,065 active listings in July 2007.  January 2017 was an all-time low at 1,331.) 

The Monthly Summary shows that compared to a year ago, total active listings are down 23.8% for Single Family/Patio Homes and 15.9% for Condo/Townhomes, continuing a downward trend that tends to favor sellers.  New listings are up 1.8% for Single Family/Patio Homes and up 15.1% for Condo/Townhomes. 

For more details on the February report, please see the next article.

While substantial home price growth is being seen all over the country, according to David M. Blitzer, S & P Dow Jones Index Committee chairman and managing director, it’s “not alarming” because it is being driven by the lack of inventory as well as the continued low interest rates.  That is an entirely different scenario than we had prior to the 2007 housing bust, which is a good thing for us all.

Lawrence Yun, chief economist of NAR, says that Americans’ interest in purchasing a home is at the highest level since the Great Recession.  More households are feeling confident about their financial situation, and job growth is strong.  However, despite their optimism, more buyers are faced with limited choices due to the shortage of homes for sale, which is driving up prices.

I’m finding a number of things in recent days:

• Homes, particularly in the $300,000 and under range, are getting multiple offers as soon as they are listed on MLS—many over listing price, with no contingencies and with quick turnaround times.

 

• 32% of the active listings on single family/patio homes are in that under $300,000 range.

 

• Quite a number of folks are turning to new construction if they are in a position to wait for their home to be built.

 

• Folks are worried about the inevitable interest rate increases and those who have been sitting on the proverbial “fence” are thinking about making a move NOW to sell and trade up.

 

• There are lots of people interested in looking for investment properties with a number of them wanting multiple properties. Along with the lowest home ownership rate in years providing many folks who want or have to rent come increased rental rates that benefit the landlords.  If this is something you have considered or want to investigate, give me a call and let’s see if it can work for you, too.

There is a lot of movement beginning to happen at once.  I have spent a lot of time doing research on most types of new construction so that once I know what my clients are looking for I can take them to see the properties that meet their wants, needs and budgets. 

You might not be aware, but—this service is at no additional cost to the buyers.   My special brand of customer service includes doing the research so that I can take you to see exactly what you are seeking, without having to go look at each new development by yourself. 

Another advantage is that I know the “right” questions to ask the builders so that there are no surprises later on.  This is something I’ve been doing for almost 45 years so you might say I’ve got just a bit of experience in this arena!

Whether you’re in the market for a new home, an existing home or an investment property—I can help you with it all.  Let me remind you again that if you are planning to sell and trade up you need to have a plan.  Your present home will more than likely sell quickly so you must know where you are going next.  Getting preapproved from your lender of choice is also a requirement before you even begin the search for a new home.  When you find what you are looking for you won’t have the luxury of thinking about it or taking time to get a loan approval.  There will be other offers for the sellers to choose from and yours will go to the bottom of the pile.  I don’t tell you this to frighten you—it’s just how things are these days and I want my clients to be as prepared as possible.

A recent example is a former client who wanted to sell and trade up.  I advised them NOT to list their present home until they had an “accepted offer” on one they wished to buy because I knew their home would sell fast.  Well, sure enough, the buyer found another home and we got the offer accepted quickly.  I put their present home on the market the next day and it sold the day after!  That’s the kind of craziness we are seeing today.  It’s a “new normal” to say the least.

So…a word to the wise should be sufficient.  That, and giving me a call at 598.3200 or email me at Harry@HarrySalzman.com to get the ball rolling.  I’m going to get it done for you “one way or another” and to your complete satisfaction.  That’s my motto—and it’s on the wall in my office—because my commitment to my clients is most important to me and the reason my repeat business is so good.  I WILL get it done for you, with as little stress and problems as possible. 

 

LOCAL real estate SALES SLIGHTLY DOWN…BUT ONLY BECAUSE OF LOW INVENTORY

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

Here are some highlights from the February 2017 PPAR report. Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing February 2017 to February 2016 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1,273, Up 1.8%
• Number of Sales are 800, Down 8.0%
• Average Sales Price is $301,385, Up 11.5%
• Median Sales Price is $255,000, Up 6.3%
• Total Active Listings are 1,342, Down 23.8%

                        Condo/Townhomes

• New Listings are 175, Up 15.1%
• Number of Sales are 126, Down 3.8%
• Average Sales Price is $182,241, Up 6.5%
• Median Sales Price is $180,000, Up 16.2%
• Total Active Listings are 122, Down 15.9%

 

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

                                                Median Sales Price             Median Sales Price

                                                  February 2017                        February 2016

Black Forest                            $489,950                              $405,000                       

Briargate                                  $388,225                              $317,250        

Central                                     $180,000                              $179,900

East                                          $230,000                              $192,000

Fountain Valley:                      $230,000                              $222,000

Manitou Springs:                    $185,990                              $267,500

Marksheffel:                             $261,407                             $270,000

Northeast:                                $259,500                              $247,400

Northgate:                                $440,000                              $360,000          

Northwest:                               $395,000                              $319,500         

Old Colorado City:                  $236,500                              $191,000

Powers:                                    $254,900                              $233,000

Southwest:                               $246,000                              $162,000

Tri-Lakes:                                 $485,000                              $450,000

West:                                        $250,000                              $262,450

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

 

YELLEN SAYS FED RATES WILL INCREASE

Dsnews.com, 3.3.17

According to her last public remarks prior to the March 14-15 meeting, Federal Reserve Chairman Janet Yellen announced plans to increase the federal fund rate.

“We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect,” she said at a speech in Chicago and according to prepared remarks found at Business Insider.

Whether or not these increases come at the March meeting or later in the year remains to be seen, but Credit Suisse finds it probable that it will be sooner than later.  James Sweeney, managing director of Credit Suisse said at the end of last week:

“In response to these developments the market implied probability of a March hike has risen from 25 percent on February 1^st to over 75 percent now.  This market action could be self-fulfilling, because it undercuts claims that the Fed needs to use a meeting to ‘prepare the market’ for an upcoming hike.”

What does this mean to you?  Well, for starters, the mortgage interest rates will rise accordingly.  If you are looking to get preapproved at today’s rates, you will need to hurry.  No one knows how much of a hike the fed funds will get, but most economists are saying it’s going to happen.  I’ve been telling you this for over a year now, and while they have not moved too swiftly during that time, an increase is inevitable.  Each increase in the mortgage rate will mean a larger monthly payment for the length of the loan.  It may not be a lot, but over the term of the loan it could add up to a substantial amount.

I’ll keep you posted.

 

“NEW” HOMES ARE ABOUT TO GET PRICIER

realtormag.com, 3.1.17

The reason for my sharing this information is due to my visit last Friday to check out nine models at local homebuilders for my clients.  Homebuilders traditionally increase home prices in the spring.  This year, according to the builders I met with, it appears that prices will be going up in the very near future due to a large buyer demand as well as the facts listed below.

Since this is an avenue many folks are considering due to the limited available listings, it is likely a good idea to start your search with me sooner than later.  We can lock in prices before they increase which can help offset any increasing interest rates that may happen. 

According to the article I read, new homebuilders are getting increasingly concerned about the price of building materials.  In 2016, this was low on their list of concerns, but it’s now one of their top five. 

The increased cost of lumber is the chief catalyst.  “Negotiations on a new softwood lumber agreement between the United States and Canada ground to a halt at the end of 2016 and likely are stalled pending the results of an investigation into unfair import practices requested by the U. S. Lumber Coalition,” the National Association of Home Builders (NAHB) reports. 

Homebuyers will likely see price hikes because of this.  According to NAHB/Wells Fargo housing market Index, builders cited the following as the 10 most significant problems they expect to face in 2017:

1. Cost/availability of labor:  82%
2. Cost/availability of developed lots:  67%
3. Impact/hook-up/inspection or other fees:  61%
4. Building material prices: 60%
5. Federal environmental regulations and policies:  52%
6. Local/state environmental regulations and policies:  52%
7. Regulation of banking/financial institutions:  48%
8. Development standards (parking, setbacks, etc):  47%
9. Inaccurate appraisals:  46%
10. Health insurance:  40%

 

STATISTICS FROM THE UCCS ECONOMIC FORUM SHOW MORE GOOD NEWS

UCCS Economic Forum, 2.23.17

I just received the January statistics from the UCCS Economic Forum and, as always, want to share them with you.

The charts, which you can access by clicking here, will provide you with graphic detail about how we as a city, as well as El Paso County, are doing in many areas that affect our economy and growth.  You can also see how we are doing locally in comparison to the U.S. in general. 

If you have any questions about these graphs, or about any of the information I’ve shared in this eNewsletter, please give me a call at 598.3200.

 

HARRY’S THOUGHT OF THE DAY

 

 

                                                            

February 21, 2017

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.

LOCAL real estate NUMBERS REMAIN EXTREMELY POSITIVE

I am happy to report that things have NOT slowed down and the local real estate market—as well as that nationally—continues it’s rapid pace.

As I’ve mentioned in the past few months, this is definitely a Seller’s Market and will likely remain so until the number of active listings increase.  This is especially true in the below $300,000 range where I’ve been seeing multiple offers on most properties—and many OVER the asking price. 

While interest rates have gone up slightly but not yet significantly—that, and the increased equity most folks are seeing in their present homes—are driving this current market.  The Federal Reserve is talking about raising rates at their March meeting due to the improved economy nationwide, so that’s another reason folks are pressing on at present.

If you’ve been waiting for a sign—well here it is.  NOW is the time to make your move.  Home prices are continuing their upward climb and interest rates may soon be joining them.  While a new home may cost you more than it might have a year ago, the value of your present home has most likely also increased.  The biggest determination for most folks is the monthly mortgage payment and the lower the interest rate, the lower the monthly payment.  Even a nominal fluctuation can mean a higher monthly cost, so if you’re seeking an historically low interest rate I wouldn’t suggest waiting much longer. 

Along that same note, when you decide to start your search for any type of real estate—either as a primary, secondary or investment property—it’s imperative to get pre-approved by your lender and know beforehand exactly what you want, need and can afford.

I find that the best-written offer is often the one that my clients want to accept and that’s where my almost 45 years in the local real estate arena becomes a boon for you.  My investment banking background, along with my many years of experience, allows me to write a contract that has an excellent chance of being accepted. 

In today’s market of multiple offers and quick acceptance, it’s especially crucial to put your best foot forward so to speak.  I do that and more.  My sellers can wade through multiple offers and discover why some are much better than others depending on the timing, financing, and other factors due to my extensive experience. This is just part of my special brand of customer service.

My advice?  I’ll say it again.  If you’ve even considered wading into the real estate market as either a buyer, seller or both—now’s the time to jump in with both feet.  Many folks don’t know the current market value (CMA) of their home so aren’t aware of the avenues open to them in today’s market. 

So if you’ve got the questions, I’ve got the answers.  Just give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how you can best make all this positivity work for you.

 

JANUARY 2017 LOCAL MARKET UPDATE AND MONTHLY INDICATORS PROVIDE RESULTS IN GREATER DETAIL

Pikes Peak REALTORS^® Services Corp.,

In the recently published January 2017 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were down 15.4% for the single-family/patio homes and up 21.4% for condo/townhomes.  

The median sales price increase year-over-year in all properties was up 9.3%, which is a good sign that the housing market is continuing to appreciate.  If there were more listings, more people would be moving—either selling to trade up or buying for the first time.

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

• Sold Listings for All Properties was up 11.6%
• Median Sales Price for All Properties was up 9.3%
• Active Listings on All Properties was down 33.4%.

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 33-page Local Market Update. These reports provide greater detail than the monthly “PPAR Monthly Statistics” that I share in the first eNewletter of each month.

While the spring buying season hasn’t yet begun, you can see why now is a great time to list your home.  The only drawback, as I’ve mentioned time and again, is that you need to have an idea of where you want to go because your home will likely sell much quicker than it might have in the recent past.

If you have any questions about either of these reports just give me a holler.  

 

**HERE IS MORE TERRIFIC NEWS ABOUT OUR housing market**

COLORADO SPRINGS MEDIAN HOME PRICES RISE CONSIDERABLY MORE THAN U.S. AVERAGE DURING 4^TH QUARTER 2016

NAR 2.17

In the 4th Quarter 2016, metro home appreciation picked up speed, prompting the majority of metro areas to soar to new record highs with some home prices, according to the latest survey results of the top 178 metropolitan statistical areas (MSAs) by the National Association of Realtors^®.

Colorado Springs showed a median sales growth quarter-over-quarter of 8.5%, which was 49% greater than the U.S. average of 5.7% for those surveyed.  This is such good news for us and is indicative of the increased job market and continued consumer confidence locally. 

“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs edging the job market closer to full employment,” says Lawrence Yun, NAR’s chief economist.  “At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.”

Nationwide, a boost in home prices and mortgage rates at the end of the year slightly weakened affordability, compared to a year ago.  That came despite a solid uptick in the national family median income. 

According to Yun, “Even a pick-up in wage growth may be insufficient to compensate the impact of higher mortgage rates and home prices and increased homebuilding will be crucial to alleviate supply shortages and stave off the affordability hit.”

Fortunately, our local numbers are still great and our new homebuilding starts are at a 10-year high.  I might add that if a “new” home is what you are seeking, I would be very happy to show you what we have available in the Pikes Peak area.  It doesn’t cost you anything to have a professional like myself available to take you around to various homebuilders and we know the “essential” questions you might need answered if this is something you are considering. 

To view the entire 4^th Quarter Survey of all 178 MSAs, please click here.  You might find it interesting to check out other cities where you have family or where you have lived in the past to see just how terrific our growth really is.  And…if you are currently considering a move here, this will help you see just how great an idea that will prove to be.

 

SOMETHING TO CONSIDER…THE REAL COST OF RENTING V. BUYING

Keeping Current Matters, 2.17.17

I am asked almost daily about the “value” of owning a home v. renting. While there are many factors at play in both situations, I’ve come to learn that what’s obvious to me can be totally foreign to someone else.  For that reason, I like to provide as much information in that area as I can. 

This Infographic provides some current data:

Some Highlights:

• Historically, the choice between renting or buying a home has been a close decision.
• Looking at the percentage of income needed to rent a median-priced home today (30%), vs. the percentage needed to buy a median-priced home (15%), the choice becomes obvious.
• Every market is different. Before you renew your lease again, find out if you could use your housing costs to own a home of your own!

I’d also add that there are many reasons why some folks need to rent at any given time in their lives.  That’s why I have so many clients who have been buying one or more investment homes to rent.  If you have considered becoming a landlord by adding real estate to your investment portfolio, please give your financial and/or tax advisor a call and then call me.  I can share the ins and outs of being a landlord as this is something I’ve done for years.  And if this is something that’s right for you—I can lead you in the right direction to find an investment property.

 

HOME PRICE INSIGHTS REPORT

CoreLogic 2.7.17

I thought you might find this report from CoreLogic entitled Home Price Insights Report from December 2016 very interesting. The highlights include:

• Home prices nationally increased 7.2% year-over-year
• CoreLogic projects an increase of 4.7% year-over-year in 2017
• Colorado was one of 15 states and the District of Columbia that reached new highs in home appreciation in 2016

You can read the report in its entirely by clicking here.  

 

ANOTHER FEATHER IN OUR CAP…SPRINGS COST OF LIVING IS LOWEST IN 5 YEARS

The Gazette, 2.10.17

In 2016, the cost of living in Colorado Springs was just 94% of the U.S. average, according to an annual survey by the Council for Community and Economic Research. This was down from 95.3 percent in 2015 and the lowest since costs in the Springs were 92.5 percent of the national average in 2011.

Local housing costs were 97 percent of the national average last year compared with 99.4 percent of the average the previous year.  Utility costs here were 72.5 percent of the national average in 2016, down from 84.3 percent of the average in 2015.  The index measuring miscellaneous goods and services also fell, while components measuring groceries, transportation and health care all were higher, but make up just 27.2 percent of the overall index.

Housing moved downward because the average local principal and interest payment fell 2.3 percent last year, while it remained unchanged nationwide.  Utilities in the Springs declined sharply because the average local home energy cost fell 9.1 percent, or nearly three times the 3.4 percent nationwide drop during 2016. 

Costs in Denver and Pueblo moved higher.  Denver costs were 110.4 percent of the national average in 2016, up from 109.6 in 2015 while Pueblo costs were 86.4 percent of the national average in 2016, up from 85.6 percent in 2015.

So, once again, another good reason to celebrate living in Colorado Springs.

 

I’M SPEAKING BEFORE THE COUNTY COMMISSIONERS ON THURSDAY

If you’re in town and want to hear me live and in person when I give my State of real estate in Colorado Springs Report to the El Paso County Commissioners, come on down on Thursday morning at 9:30 to 202 South Cascade.  It is an open meeting and I will be presenting an updated version of the material that I shared with you several weeks ago from my report to the Colorado Springs City Council.

 

HARRY’S THOUGHTS OF THE DAY

 

 

February 14, 2017

 

HARRY’S VALENTINE’S GREETING

As part of my Personal Service, it is my desire to wish all of you a very sweet

Valentine’s Day!

Home is Where the Heart is…

…and I am thrilled to be able to play such an important part in helping to give your heart a home.

 

February 6, 2017

 

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.

THE LOCAL housing market JUST KEEPS ON ESCALATING…IN SALES AND PRICES

Wow.  Let me say it once again...WOW. 

I’m just astounded at the pace of the local real estate market in terms of both sales and appreciation.  In my almost 45 years of selling real estate in the Pikes Peak area I’ve never seen anything like what we are now experiencing.  And this is January we are talking about—a normally slow time as folks gear up for the spring buying season.  I’m now convinced that conventional wisdom about the “best” time to buy and sell are no longer part of the equation.  In past years, researchers have found that in general, January and February were the top months for those looking to get a bargain. 

However, this year is gearing up to be different.  According to Jonathan Smoke, realtor.com’s chief economist, buyer demand has remained high throughout the fall and home prices did not take their usual dip this January.

I’ll give you a very recent example.  Last Monday afternoon I listed a home and within hours we had seven offers and stopped accepting them at 6 pm that same day.  Most were for over the asking price and with significant down payments.  The following morning the seller accepted one of the offers.  Yes, folks, this is becoming the “new normal” and I’ve been telling you this was going to happen for quite a while now.  It’s most definitely a “sellers market” and likely to remain so for some time. 

With interest rates on the rise but still historically low, many folks are finally realizing that if they want to take advantage—NOW is the time.  Waiting will only cost you.  Not only in interest rates, buy also in the price of the replacement home.  Yes, you will get more for your home, but the next one will also cost you more and that will directly affect your monthly payments. 

My suggestion?  If you’ve even considered selling to trade up or move to a new neighborhood, don’t delay.  And again—know in advance what your wants, needs and budget requirements are so that you can make an offer when you find “the one”.  There just isn’t an option of “let me think about it” any longer.  Loan pre-approval from your lender of choice is most definitely a requisite before making an offer.

I am available to help you in determining all of these things.  As many of you have experienced, when it comes to making an offer that will stand out and likely be accepted—I’m a pro at this.  Having someone like me on your team makes the entire home buying and selling experience one that will be as stress-free as possible.  Simply give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let me put my special brand of customer service to work for you.

Something else to consider in this rapidly escalating market—it’s important to know the approximate Current Market Value (CMA) of your present home or your rental properties.  With home values going up so quickly, it’s quite possible your Homeowners Insurance isn’t what it should be and might need to be increased.  Give me a call and I’ll be happy to give you a good idea of what your home is worth in today’s market.  Then give your insurance agent a call to make sure you’ve got the right amount of coverage based on the current value of your home.

January PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and we now have 30 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.3% of listing price with the average days on the market at 43.  This continues to be great news for both buyers and sellers, despite the fact that interest rates have started to rise.

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 6.9% and 21.5% respectively for year-over-year.

The Monthly Summary shows that compared to a year ago, total active listings are down 30.8% for Single Family/Patio Homes and 17.0% for Condo/Townhomes, continuing a downward trend that tends to favor sellers.  New listings are down 13.0% for Single Family/Patio Homes and up 38.6% for Condo/Townhomes.

For more details, please see the following article.

 

JANUARY 2017 WAS THE 30^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

Here are some highlights from the January 2017 PPAR report.  A look at the Median Sales Prices should put a big smile on many of your faces!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing January 2017 to January 2016 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 968, Down 13.0%
• Number of Sales are 908 Up 6.9%
• Average Sales Price is $298,774 Up 13.3%
• Median Sales Price is $265,000 Up 11.8%
• Total Active Listings are 1,331, Down 30.8%

                        Condo/Townhomes:

• New Listings are 183, Up 38.6%
• Number of Sales are 130, Up 21.5%
• Average Sales Price is $198,784 Up 17.3%
• Median Sales Price is $177,500 Up 8.6%
• Total Active Listings are 122, Down 17.0%

 

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

                                                Median Sales Price             Median Sales Price

                                                  January 2017                          January 2016

Black Forest                            $470,000                              $468,000                      

Briargate                                  $389,900                              $341,500          

Central                                     $200,000                              $226,750

East                                          $229,000                              $186,000

Fountain Valley:                      $239,000                              $219,000

Manitou Springs:                    $368,000                              $284,000

Marksheffel:                            $302,500                             $258,750

Northeast:                               $251,000                              $223,000

Northgate:                               $443,686                              $419,202          

Northwest:                              $326,818                              $303,500           

Old Colorado City:                 $229,000                              $216,500

Powers:                                   $269,900                              $229,000

Southwest:                             $345,000                              $252,000

Tri-Lakes:                               $437,225                              $427,000

West:                                       $232,500                              $218,000

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

 

COLORADO SPRINGS IS ON A ROLL…

Our unemployment rate is the lowest since 2001.  

Homebuilding starts continue to rise, following their 10-year high in 2016. 

Foreclosures are the lowest they’ve been in 15 years.  

All of this is reflected in the fabulous health of our real estate market. 

I’d like to give a big shout-out to Mayor John Suthers, the City Council, the Convention and Visitors Bureau and the Chamber/EDC for an outstanding job of promoting our city and working together to achieve such stellar results.  Bravo to all.

 

MILLIONAIRE TO MILLENNIALS:  BUY A HOME

Keeping Current Matters, 1.5.17

In January, CNBC ran an article quoting self-made millionaire David Bach explaining that not purchasing a home is the “single biggest mistake millennials are making” because buying real estate is “an escalator to wealth”.

Bach added:

“If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.  The average homeowner to this day is 38 times wealthier than a renter.”

In his bestselling book, “The Automatic Millionaire,” he does the math:

“As a renter, you can easily spend half a million dollars or more on rent over the years ($1500 a month for 30 years comes to $540,000) and in the end wind up just where you started—owning nothing.  Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning our own home free and clear!”

These ideas aren’t new—but millennials today are set to be the first generation that aren’t as well off as the previous generation and some of that has to do with homeownership.  My advice?  If you are the parent of a millennial and are able, do what you can to find a way to help in this area.  Lenders now allow down payments to come from family members and their lending requirements have changed for first-time home buyers to make it easier to obtain approval. 

If you have any questions about this or how to go about getting more information, please give me a call and I’ll do my best to help.

 

AND TO THOSE INTERESTED IN RENTAL PROPERTIES…

As you can see from the above articles, the time couldn’t be better to buy a home or two for investment purposes.  Rentals are just like any other home—they continue to escalate in value while providing the owners with increasing monthly income to help defray the cost of owning the home. 

And as I’ve said before, being a landlord is not for everyone.  However, in today’s market, if you’ve ever considered this option as an addition to your investment portfolio, maybe it’s time for us to visit and discuss whether or not it could work for you.  Give me a call at 598.3200 and let’s chat.

 

HARRY’S THOUGHTS OF THE DAY:  (I read several of these in high school and followed the advice personally prior to even getting into the real estate business!)

 

January 23, 2017

 

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.

 

HAPPY MONDAY TO ALL…

It’s a beautiful day here in Colorado Springs and I’m getting ready to present my annual forecast to the City Council this afternoon.  I do this on behalf of the Pikes Peak Area Realtors each year and this year I thought you also might  be interested in the “State of the real estate Market”.  As I’ve been telling you in recent issues, the local real estate market is HOT..HOT..HOT.

Below is the outline of my presentation and a list of the attachments.  You can select any of the attachments to download for perusal at your convenience.  If you have any questions about my presentation, or any other real estate concerns, please call me at 598.3200 or email me at Harry@HarrySalzman.com .

 

 

Presentation to Colorado Springs City Council

January 23, 2017

 

by

Harry A. Salzman,

The real estate Therapist

REALTOR^® Emeritus/CRS, CRP, E-Pro, CNE

 

ERA Shields/Salzman real estate Services

 

 

Overview and Update of Colorado Springs Residential real estate and a Forecast for 2017

 

 

This presentation is on behalf of the membership of:

 

 

Overview and Update of Colorado Springs Residential real estate and a Forecast for 2017

We all know Colorado Springs is a great place to live. And if you have been in the real estate market or known someone who has bought or sold in the past year, you are aware that the 2016 market was HOT. This tells us that other people think Colorado Springs is special as well.

It’s natural to wonder, “Is this just the beginning of a positive trend?” “Will this growth last?” “What is around the corner?” This afternoon we will discuss the relative strength of Colorado Springs to the U.S. and I will provide a real estate forecast on behalf of PPAR for the Colorado Springs region.

 

• Homeownership continues to be a reliable and stable method for building wealth. (Exhibit A)

 

• Wealth-building through real estate, primarily home-ownership, out-performed wealth-building through stock ownership.

 

• While many Americans remain frustrated by the slow movement of the economy, rising home values present a positive direction.

 

• Nationally the homeownership rate is at 63.5% (Exhibit B)

 

 

• Home prices are projected to continue to rise (Exhibit C)

 

• Nationally, home prices are projected to rise by 5.2%

 

• As of September 2016, Colorado had the 3^rd largest year-over-year home price appreciation at a rate of 8.6%

 

 

• Rising home prices is great news if you own a home, but what if you don’t? (Exhibit D)

 

• Increasing home prices is a sign of the on-going housing recovery

 

• Affordability becomes a concern as prices continue to rise

 

• Some American families will become priced out of homeownership

 

• Renter households will also rise

 

• Rental rates increase as demand outpaces rental supply

 

• Student debt stands in the way of homeownership for young adults. (Exhibit D-1)

 

 

• The role of the shortage in housing inventory (Exhibit E)

 

• The country is short by 8.3 million housing units

 

• The shortage of housing inventory is the principle reason home prices have been outpacing people’s income growth for the past 5 years

 

• From 2011 to 2016, the median home price will have risen 42% while the median household income gain will have risen only 17%

 

• An increase in supply is needed to slow the rate of home price growth

 

• In order to bring the inventory of homes for sale to a more balanced market, more housing starts are needed

 

• Economists project a national housing shortage for at least 4 more years

 

 

• The role of Confidence on the economy (Exhibit F)

 

• Post-election market gains and increases in interest rates indicate rising confidence across investors, consumers, businesses, economists, and homebuilders

 

• Pro-growth policies take time to benefit the economy

 

• Short-term, rising interest rates and home prices present challenges for home buyers

 

• Long-term, stronger economic growth results in increased incomes, affordability, and ongoing housing recovery

 

 

• Not surprisingly, politics plays a role in consumer confidence. (Exhibit G)

 

• Republicans tend to feel positive toward the market while Democrats feel less positive

 

• Colorado Springs ranks 6^th in the nation for top housing markets based on political leaning (and therefore market confidence), affordability, and employment opportunity

 

 

• Top Housing Trends for 2017 – Realtor.com (Exhibit H) Despite a more moderate housing market nationally in 2017, strong local economies and population growth will continue to fuel the nation’s top markets

 

• Home prices are anticipated to increase 3.9%

 

• Interest rates are expected to reach 4.5%

 

• Colorado Springs ranks #12 of the 100 top metros in forecasted gains in price (4.8%) and sales (6.7%)

 

• Nationally, western cities continue to lead the nation in prices and sales

 

• Millennials and boomers dominate the market

 

• Midwestern cities will continue to be hotbeds for millennials

 

• Nationally there will be a slowing in price appreciation

 

• Limited inventory continues to fuel fast-moving markets

 

 

• Fannie Mae’s Mortgage Rate Forecast (Exhibit I)

 

• Fannie Mae anticipates interest rates to increase to 4.2% by year-end.

 

 

• Demand for Mortgages Decreases (Exhibit J)

 

• As mortgage rates increase, demand decreases

 

 

• More Good News for Colorado Springs

 

• Colorado Springs has been ranked #5 in Best Places to Live as ranked by U.S. News & World Report (Exhibit K)

 

• Ranking based on Job Market, Value, Quality of Life, Desirability, and Net Migration

 

 

• Colorado Springs ranked #14 in Hottest Housing Markets by Realtor.com (Exhibit L)

 

 

• Buyers and Sellers by the Numbers (Exhibit M)

 

 

• Median Sales Price of Existing Single-Family Homes (Exhibit N)

 

• National Growth: 5.2% appreciation

 

• Colorado Springs Growth: 8.9% appreciation

 

 

• 2016 SFR uses: 200403 in El Paso County, 132763 in the City

 

 

• Year End Listing and Sales Statistics (Exhibit O)

 

 

• PPAR Monthly Indicators (Exhibit P)

 

 

• PPAR Local Market Update (Exhibit Q)

 

 

• Colorado Springs, an Economic Update (Exhibit R)

 

• As of the 3^rd Quarter, there was an increase of 22% in building permits for single family, detached homes

 

• As of the 3^rd Quarter, there was a 13.7% increase in year-to-date home sales

 

 

• Harry’s Forecast…

 

• 2016 was the best year ever with 15,319 closings

 

• I predict 2017 is going to be just as incredible

 

• Strong job growth, interest rates, and a shortage of inventory will continue to fuel home appreciation and sales activity

 

• Job growth is the #1 indicator in a strong housing market.  It is being predicted that job growth will drop slightly but will still be “very strong” over the next two years

 

• Amazing interest rates are still part of the equation.  While an increase in rates has been predicted, they will still be in the historically low range.

 

• Median Sales Price expected to appreciate 5 ¾ - 6 %

 

• Unknown changes from the Federal Government regarding Dodd-Frank

 

• How long will this hot market last?  With strong job growth in the local economy and continued historically low interest rates, expect to see positive price appreciation, albeit at a more reasonable level, starting in late 2017 going forward.

 

• Now is the time, more than the past, for home ownership.

​​

 

City Council 2017

Index of Exhibits

 

• Exhibit A – Article from the Wall Street Journal, 12.9.16, “Household Wealth Rises to a Record”

 

• Exhibit B -- U.S. Department of Commerce, U.S. Census Bureau, 10.27.16, “Quarterly Residential Vacancies and Homeownership, Third Quarter 2016.”

 

• Exhibit C – CoreLogic U.S. Home Price Insights Report 9.16

 

• Exhibit D – RISMedia, 1.1.17, “Housing Value at Record-High: Will Buyers Be Able to Keep Up?”

 

• Exhibit D-1 – Article from the Wall Street Journal, 1.19.17, “Student-Debt Picture Darkens”

 

• Exhibit E – Forbes 12.13.16, “Four More Years? No Quick End In Sight For The U.S. Housing Shortage.”

 

• Exhibit F – Fannie Mae 12.20.16, “Confidence Improves at the Prospect of Pro-Growth Policies.”

 

• Exhibit G – RISMedia, Housecall Blog, 12.12.16 “Surveying the American Dream: Housing Optimism Swings Post-Election”

 

• Exhibit H – Realtor.com, 11.30.16, “Realtor.com® Forecasts Post-Election Economy to Result in Higher Mortgage Rates While Housing Delivers Slower Gains in 2017.”

 

• Exhibit I – Fannie Mae 12.16, Housing Forecast December 2016

 

• Exhibit J – Wall Street Journal, 1.12.17, “Demand for Mortgages Takes a Hit.”

 

• Exhibit K – U.S. News & World Report 1.2017, “Best Places to Live” and “Best Places to Live Methodology”

 

• Exhibit L – REALTORMag, Realtor.com 12.22.16, “Hottest Housing Markets in December”

 

• Exhibit M – National Association of Realtors, 12.7.16, “The 2016 Profile of Home Buyers and Sellers.”

 

• Exhibit N – National Association of Realtors 12.16, Median Sales Price of Existing Single-Family Homes for Metropolitan Areas

 

• Exhibit O – Pikes Peak Association of Realtors 12.16, Listing and Sales Summary

 

• Exhibit P -- PPMLS Monthly Indicators for El Paso & Teller Counties, Nov. 2016

 

• Exhibit Q – PPMLS Local Market Update, Nov. 2016

 

• Exhibit R – UCCS Quarterly Economic Update, Nov. 2016

 

 

January 9, 2017

 

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.

HARRY A. SALZMAN, THE real estate THERAPIST

 

SO, YOU’RE PROBABLY WONDERING….

I have so many titles and designations in the real estate arena that I figured adding one more that really suits me best might be in order.  Thus, THE real estate THERAPIST it is! 

After all, when I think about the integral function of my special brand of customer service, serving as a sounding board and helping figure out what an individual or family needs in terms of housing is probably the most essential part of my work. 

I need to know what makes my clients tick.  Do they want to live near schools…in a home or townhome… near downtown or out in the forest?  Are they gourmet chefs and need a super kitchen…do they entertain and want an extra large “great room”…or need a large recreational area in the yard?  What about an oversized garage for multiple cars or RV’s?  Do they work from home and need a quiet home office located away from the hustle and bustle of everyday life? 

And what about finding the best financing and taking care of listing their present home if that’s a consideration?  Those stresses are ones I handle for my clients so they can better enjoy the process and excitement of moving into a new home.

All of this and so much more goes into play before I begin the search for the best fit for my clients’ needs, wants and budget considerations. 

That’s not even taking into consideration what I do for those who relocate, either to or from the Pikes Peak area.  As most of you know, that’s a big part of my business and where “therapy” really comes into play.   Is there a trailing spouse who may not be so thrilled about the move?  Or children that have to be uprooted from their friends and schools?  Educating those folks about the many advantages of living in Colorado Springs is especially important and I always take time to fully understand the issues and pressures that go into relocation—be it for an individual or a family.

So while I may not have an accredited degree in Psychology, I think most of you would agree that I play the role of The real estate Therapist with every transaction.  Thus, this new addition to my many other titles.

 

* * * And…once again…Happy New Year to you and yours.* * *

 

THE LOCAL housing market CONTINUES IT’S UPWARD TREND

December PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and we now have 29 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.4% of listing price with the average days on the market at 38.  This continues to be great news for both buyers and sellers, despite the fact that interest rates have started to rise.

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 15.6% and 14.7% respectively for year-over-year.  And, it’s the second consecutive year setting an annual record in sales.  This is fabulous news for local homeowners.

The Monthly Summary shows that compared to a year ago, total active listings are down 28.0% for Single Family/Patio Homes and 25.1% for Condo/Townhomes, continuing a downward trend that tends to favor sellers.  New listings are down 1.2% for Single Family/Patio Homes and up 8.3% for Condo/Townhomes.  This is reflective of the holiday season and I anticipate new listings to increase along with the rising interest rates.  Those who have waited are beginning to realize that they can wait no longer if they want to take advantage of still historically low, but increased interest rates.

Even with new listings down for the month in Single Family/Patio Homes, I’m finding that there are homes available in most neighborhoods and price ranges.  The biggest issue is knowing what you need, want and can afford prior to beginning the process of selling to trade up or move to a new location.  Most homes do sell quickly so having those decisions made in advance can make a lot of difference if your home sells fast.  Pre-approval from your lender is also a requisite in this fast paced market.

If you have been thinking of listing your home, I cannot emphasize strongly enough that NOW is the time.

With interest rates increasing and home equity building at a steady pace, it’s time to make your move either to sell and trade up or buy for the first time or for investment purposes.  To get the ball rolling, simply call me at 598.3200 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.

 

DECEMBER 2016 WAS THE 29^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

Here are some highlights from the December 2016 PPAR report.  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing December 2016 to December 2015 in PPAR:                       

                        Single Family/Patio Homes:

• New Listings are 763, Down 1.2%
• Number of Sales are 1,236 Up 46.7%
• Average Sales Price is $287,294, Up 7.8%
• Median Sales Price is $255,000 Up 6.3%
• Total Active Listings are 1,536, Down 28.0%

                        Condo/Townhomes:

• New Listings are 104, Up 8.3%
• Number of Sales are 159, Up 0.6%
• Average Sales Price is $190,543, Up 15.8%
• Median Sales Price is $177,000, Up 11.0%
• Total Active Listings are 140, Down 25.1%

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

                                                Median Sales Price             Median Sales Price

                                                  December 2016                      December 2015

Black Forest                            $455,000                              $417,000                      

Briargate                                  $350,000                              $285,000          

Central                                     $208,950                              $172,000

East                                           $225,000                              $207,450

Fountain Valley:                       $224,300                              $215,000

Manitou Springs:                     $370,500                              $307,000

Marksheffel:                              $311,000                             $252,500

Northeast:                                 $250,000                              $235,500

Northgate:                                 $422,927                              $275,003         

Northwest:                                $335,000                              $310,250           

Old Colorado City:                   $236,500                              $223,000

Powers:                                     $249,900                              $229,000

Southwest:                               $262,500                              $249,000

Tri-Lakes:                                 $445,000                              $394,000

West:                                        $250,000                              $239,950

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

 

RENOVATION…WILL YOU GET A RETURN ON YOUR INVESTMENT?

Rismedia, 11.16

One question I get asked over and over is:  “How much will a renovation of (fill in the blank) add to the value of my home?”

If you’re looking for a return on investment when upgrading certain items in your home, it’s good to know what to prioritize first.  This is especially relevant when selling your home or investment property.  

The chart below will give you an idea of the ROI’s for various renovation projects:

SOME ADDITIONAL STATISTICS FOR COLORADO SPRINGS…

#16 in “America’s Hottest Markets for real estate in December”—realtor.com^©

#6 in “10 Hottest real estate Markets to Watch in 2017”—Forbes Magazine

 

HOUSING VALUE IS AT A RECORD HIGH.  WILL BUYERS BE ABLE TO KEEP UP?

Rismedia.com, 1.1.17

With housing’s collective value growing to $29.6 trillion last year—a record high reflecting 5.7% appreciation--and marking a full recovery since the crash—there is potential to push more prospective homebuyers to the sidelines. 

“Housing is incredibly important to us personally and to the economy as a whole,” said Zillow Chief Economist Dr. Svenja Gudell.  “The U.S. housing stock is worth more than ever, which is a sign of the ongoing housing recovery.  As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing.  The total value of the housing stock grew nearly 6 percent this year (2016), a pace that will likely mean some American families are priced out of homeownership.”

Despite the year’s appreciation, approximately 60 percent of housing markets remain below values reached during the bubble years according to a recently released analysis by Zillow. 

Since Colorado Springs was not hit as hard during the housing crash as many other areas, our recovery, along with a 15-year low in foreclosures, has been good; however, if home prices keep accelerating and mortgage interest rates keep rising, this could be a concern for us too.

This is just another reason to call me sooner than later if you’ve been thinking of getting into a new home or looking for investment property.  I can help you determine whether this is the right time for you to act on whatever housing thoughts you might have. 

 

COLORADO SPRINGS HOME CONSTRUCTION IS HIGHEST IN 10 YEARS

The Gazette, 1.4.17

Another sign of improvement in the local housing market is marked by the number of permits issued to builders for the construction of single-family homes in the Pikes Peak Region.  This past year the pace of new construction was at it’s highest since 2006.

The demand for housing, a stronger economy and the low unemployment rate has builders predicting that the upward trend will continue in 2017 in the Colorado Springs area. 

This is one more indicator that our City is thriving.  If you are considering new construction, there are options in all price ranges and locations.  Simply give me a call and let’s see if there might be something just right for you.

 

HOUSEHOLD WEALTH RISE TO A RECORD HIGH—FUELED BY real estate AND STOCKS

The Wall Street Journal, 12.16

While incomes for many have stagnated, the wealth of U.S. households climbed to a record $90.2 trillion in the third quarter 2016, driven by a strong buildup in real estate and stocks.

Stocks—directly and through retirement savings accounts such as 401(k)s--climbed by $494 billion in the third quarter while real estate, which is primarily people’s homes, rose in value by $554 billion, according to the Federal Reserve.

I’ve been publishing articles over the past several years that have shown real estate to be a better investment than stocks for many folks.  I don’t want to say, “I told you so”, but I told you so.

 

 

 

 

January 3, 2017

 

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.

 

December 19, 2016

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.

 

 

December 5, 2016

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.

   

*** SO THIS JUST HAPPENED…***

The Wall Street Journal, today

At press time I was reading today’s Wall Street Journal and a headline on the front page hit home as it’s what I’ve been telling you would happen for the last couple of years.

“Home Buyers Miss Out On Low-Cost Loans” is what it says and according to the article, the low interest rates and accompanying looser credit requirements of recent times are now a thing of the past.

First-time buyers and those with marginal credit will be the ones hit the hardest.  According to the article, “Analysts at Pacific Investment Management Co. estimate between one million and 1.4 million Americans who would have been eligible for a mortgage in 2002, before the loosening of lending standards that caused the subprime crisis, couldn’t get a mortgage today.”

I’ve been encouraging those who can and want to be home investors to get on it sooner than later.  Information in this article again supports that in saying homeownership levels will remain low and rental properties are in high demand for those who can’t afford or can’t obtain a home of their own.

I don’t want to say “I told you so”, but there you go.  If you’ve even been considering whether this is the time to sell and trade up or buy for investment purposes—call me today.  Time is no longer on your side.

 

THE LOCAL housing market CONTINUES IT’S UPWARD TREND

November PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and now we have 28 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.2% of listing price with the average days on the market down to 36.  This continues to be great news for both buyers and sellers. 

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are both up 15.9% year-to-date.  Even more amazing, though, is the fact that the total VOLUME of sales to date over last year for Single Family/Patio Homes increased close to $800,000,000 and for Condo/Townhomes it increased close to $76,000,000.  That’s a LOT of sales dollars and is indicative of how residential real estate in the Colorado Springs area is escalating in value.  And, it’s the second consecutive year setting an annual record--with still another month to go.  Fabulous news for our local homeowners.

The Monthly Summary shows that compared to a year ago, total active listings are down 26.5% for Single Family/Patio Homes and 18.7% for Condo/Townhomes.  This downward trend is continuing to be great for sellers.  New listings are up 9.7% for Single Family/Patio Homes and 37.0% for Condo/Townhomes.  This tells me that people are starting to realize that even though this is not the “normal” selling season, the time to sell and trade up is NOW before interest rates and home prices get even higher.  I wrote about that in the last eNewsletter and I can see that interested people are realizing it might be a good idea NOT to wait--for a variety of reasons.

An article I read in Saturday’s Wall Street Journal had the headline—“Homeowners Hit The Jackpot”.  It referenced the fact that many folks who have lived in their homes for 15, 20, 30 years and more are pocketing substantial gains when they are ready to sell.  The article went on to say that homeowners are staying in their homes longer—a median of 10 years, the longest tenure since at least 1985, according to NAR.

Lawrence Yun, NAR chief economist, said the shift is partly due to an aging society and tight inventory in many markets.  “Home sellers know they can find a buyer, but they would have difficulty finding a new home once they sell,” he said.

While locally we have just a slight increase in new listings, I’m finding that there are homes available in most neighborhoods and in most price ranges.  The biggest issue is knowing what you need, want and can afford prior to beginning the process of selling to trade up or move to a new location.  Most homes do sell quickly so having those decisions made in advance can make a lot of difference if your home sells fast.

If you have been thinking of listing your home, I cannot emphasize strongly enough that NOW is the time.

With interest rates just starting to increase and home equity building at a steady pace, it’s time to make your move either to sell and trade up or buy for the first time or for investment purposes.  To get the ball rolling, simply call me at 598.3200 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.

 

NOVEMBER 2016 WAS THE 28^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

Here are some highlights from the November 2016 PPAR report.  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing November 2016 to November 2015 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 992, Up 9.7%
• Number of Sales are 1,196, Up 46.7%
• Average Sales Price is $288,295, Up 7.9%
• Median Sales Price is $256,566 Up 8.0%
• Total Active Listings are 1,932, Down 26.5%

                        Condo/Townhomes:

• New Listings are 163, Up 37.0%
• Number of Sales are 182 Up, 42.2%
• Average Sales Price is $181,591, Up 13.5%
• Median Sales Price is $166,108, Up 6.9%
• Total Active Listings are 178, Down 18.7%

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

                                                Median Sales Price             Median Sales Price

                                                  November 2016                      November 2015

Black Forest                            $424,500                              $344,000                     

Briargate                                  $353,250                              $314,156          

Central                                     $212,500                              $185,950

East                                          $220,000                              $205,500

Fountain Valley:                      $234,450                              $194,950

Manitou Springs:                    $322,000                              $266,750

Marksheffel:                            $259,900                              $260,000

Northeast:                               $260,000                              $237,500

Northgate:                               $400,000                              $389,000           

Northwest:                               $388,000                              $336,700          

Old Colorado City:                  $233,750                              $237,500

Powers:                                    $243,750                              $229,550

Southwest:                              $265,500                              $251,000

Tri-Lakes:                                $446,750                              $400,000

West:                                        $213,900                              $216,500

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

 

SPRINGS AREA HOMEBUILDING AT 10-YEAR HIGH

The Gazette, 12.2.16

Permits issued through November for single-family homes in Colorado Springs and the rest of El Paso County were the most since 2006 according to a Pikes Peak Regional Building Department report released last week.

The year to date total of 3,017 marks the first time permits have surpassed 3,000 in a decade and by reaching the 3,000 mark, the local homebuilding industry has achieved a state of “equilibrium”—it’s building enough homes to meet demand without overbuilding.

Just another sign that things are looking good in the Springs.

 

NATIONALLY, HOME PRICES ARE EXCEEDING THE “HOUSING BOOM” LEVEL

The Washington Post, 11.30.16, The Wall Street Journal, 11.30.16

Homes prices, nationally, reached a new high in September—rising above the previous high set in July 2006 during the “housing boom”, according to the Standard & Poor/Case Shiller Index released last week.

David M. Blitzer, managing director and chairman of the index committee at S & P Dow Jones Indices, said in a statement that “The new peak set by the S & P/Case-Shiller CoreLogic National Index will be seen as marking a shift from the housing recovery to the hoped-for start of a new advance”.

While housing has lagged behind some sectors of the economy in recent years, there are signs of increasing strength. Robert Shiller, the economist at Yale University who co-developed the above referenced index, said the record provides a significant psychological boost for homeowners, some of whom are finally seeing their homes above water after four years of recovery.  About 12% of homeowners who have a mortgage now owe more than their home is worth compared to 30% at the bottom of the market, according to Zillow.

Despite prices having bounced back, many economists have tempered their enthusiasm about what it means for the housing market’s overall health.  “Crossing this threshold is largely symbolic,” said Ralph McLaughlin, Trulia chief economist.  “The housing market recovery has been very uneven across the U.S.  When controlling for inflation, markets that have reached their pre-recession peaks are few and almost exclusively in the West and South.  And within those markets, it’s mostly high-end homes that have surpassed the peak.”

While prices have recovered, the market is flashing caution signs.  The country in general is building far fewer homes than normal, the homeownership rate is near a 50 year low and mortgages remain difficult to come by, especially for less affluent buyers.  The rise in mortgage interest rates could also curtail home buying for some. 

As I mentioned earlier, the Colorado Springs housing market is on the upswing and is doing so at a reasonable pace—one that appears to be maintainable in the near future.  Considering we are one of the “hottest” housing markets in the country, I for one am extremely positive about the continued housing records we are setting.

 

2017 NATIONAL HOUSING FORECAST, TOP HOUSING TRENDS & TOP HOUSING MARKETS

realtor.com

            2017 National Housing Forecast

In general, the national real estate market is predicted to slow compared to the last two years, across the majority of economic indicators. 

However, “West is Best” and lucky for us—that’s where we are.  Western metropolitan areas are forecast to see a price increase of 5.8% and sales increase of 4.7%--much higher than the U.S. overall of 3.9% and 1.9% respectively.

Realtor.com is forecasting the homeownership rate will stabilize at 63.5% after bottoming at 62.9% in 2016.  New home sales are expected to grow 10%, while new home starts are expected to increase 3%. 

Prior to the election, demographics and an improving economy were laying the foundation for a substantial increase in first-time buyers in 2017 but due to mortgage rate increases over the last few weeks, realtor.com predicts first timers will face new hurdles as they navigate the qualification and buying process.  While higher rates are associated with anticipation of stronger economic and wage growth next year, higher rates will make qualifying for a mortgage and finding affordable inventory more challenging. 

Top Housing Trends for 2017

1. Millennials and Boomers will Dominate the Market.  Next year, the housing market will be in the middle of two massive demographic waves, millennials and baby boomers—that will power demand for at least the next 10 years.  Although increasing interest rates have prompted realtor.com to lower its prediction of millennial market share to 33% of the buyer pool, millennials and baby boomers will still comprise the majority of the market.  Baby boomers are expect to make up 30% of buyers in 2017 and given they’re less dependent on financing, they are anticipated to be more successful when it comes to closing.

 

2. Midwestern Cities will Continue to be Hotbeds for Millennials.  Midwestern cities are anticipated to beat the national average in millennial purchase market share in 2017.  This year, average millennial market share in these markets is 42%, far higher than the U.S. average of 38%.  With strong affordability in 15 of the 19 largest Midwestern markets, realtor.com expects this trend to continue in 2017 even as interest rates increase.

 

3. Slowing Price Appreciation.  Nationally, home prices are forecast to slow to 3.9% growth year-over-year, from an estimated 4.9% in 2016.  Of the top 100 largest metro areas in the country, 26 markets are expected to see price acceleration of 1% or more. Likewise, 46 markets are expected to see a slowdown in price growth of 1% or more.

 

4. Fewer Homes on the Market and Fast Moving Markets.  Inventory is currently down an average of 11% in the top 100 metro areas of the U.S.  The conditions that are limiting home supply are not expected to change in 2017.  Median age of inventory is currently 68 days in the top 100 metro areas.

 

5. Western Cities will Continue to Lead the Nation in Prices and Sales.  Western metro areas in the U.S. are forecast to see a price increase of 5.8% and sales increase of 4.7%, much higher than the U.S. overall.  These markets also dominate the ranking of the reator.com 2017 top housing markets.

 

Top Housing Markets in 2017

Despite a more moderate housing market overall in 2017, strong local economies and population growth will continue to fuel the nation’s top markets. 

While Colorado Springs is forecast as the “12^th Top housing market” in the top 100 metro areas in 2017, we share many of the commonalities of the top 10. 

Our relatively affordable rental prices, low unemployment, increasing population of millennials and baby boomers, along with a high number of listing views on reator.com, puts us up there with the top 10.

As I’ve been saying all along, those of us who live here know the reasons we do, and now the rest of the nation is finding that out too.

Here’s to another great year in 2017 for our city.

 

 

 

 

 

 

 

 

                                                            

November 21, 2016

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.

...AND THAT I AM…FOR SO MANY THINGS

With Thanksgiving Day almost upon us, I can’t but think about the many blessings I have to be thankful for in my own life.  I’m actually thankful for these most every day, but this time of year I am doubly reminded of just how fortunate I am.

To start with, I am able to live and work in one of the most beautiful and exciting places in the country and I get to share that daily with my family, friends and coworkers to whom I am always thankful for their presence in my life.

I am thankful to live in a country that allows me to believe in the things that are important to me and to earn a living doing something I truly love.

And certainly not least, I am thankful to all of you, my clients and readers, whom I have had the privilege of working with and getting to know over the past 44+ years.  Your continued confidence, referrals and personal relationships mean more to me than I can tell you—so let me simply say—THANK YOU.

The good news I am sharing today in this edition of my eNewsletter is something for us all to be thankful.

I wish each and every one of you a very heartfelt Happy Thanksgiving.

 

***FROM ALL DIRECTIONS WE ARE POSITIVE, POSITIVE***

 

OCTOBER  LOCAL MARKET UPDATE AND MONTHLY INDICATORS PROVIDE RESULTS IN GREATER DETAIL

Pikes Peak REALTORS^® Services Corp.,

In the recently published October 2016 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were slightly down for the single-family/patio homes and down 7.7% for condo/townhomes.  Despite that, the great news is that we saw pending sales increase year-over-year of 23.2% for single-family/patio homes and 12.7% for condo/townhomes. 

The median sales price increase year-over-year in all properties was up 10.2%, which is a good sign that the housing market is continuing to appreciate.  If there were more listings, more people would be moving—either selling to trade up or buying for the first time.

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

• Sold Listings for All Properties was up 19.2%
• Median Sales Price for All Properties was up 10.2%
• Active Listings on All Properties was down 30.5%.

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 33-page Local Market Update. These reports provide greater detail than the monthly “PPAR Monthly Statistics” that I share in the first eNewletter of each month.

Normally, this is the “slower” time of year in the residential real estate market, but there doesn’t appear to be a “normal” anymore.   Post election, with the probability of rate hikes on the horizon, we expect to see even more folks looking to sell and trade up or buy for investment purposes before the recent historical low interest rates are a thing of the past.

I’ve been telling you for quite awhile that this day is coming—and it soon will be here.  If you’ve waited—for whatever the reason—my advice to you is not to wait any longer. With steadily rising median sales prices happening and higher mortgage interest rates soon to be a reality, NOW is the time to make your move. 

To discuss how to make this a reality for you or someone in your family, simply give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how together we can see what’s best for each individual situation.

 

COLORADO SPRINGS MEDIAN HOMES PRICES RISE 60% MORE THAN U.S. AVERAGE

NAR 11.16

In the 3rd Quarter 2016, metro home price growth was accelerated by the supply crunch, according to the latest survey results of the top 178 metropolitan statistical areas (MSAs) by the National Association of Realtors^®.

Colorado Springs showed a median sales growth quarter-over-quarter of 8.9%, which was 60% greater than the U.S. average of 5.2% for those surveyed.  This is such good news for us and is indicative of our increased job market and continued consumer confidence locally. 

These numbers could have been even higher according to Lawrence Yun, NAR’s chief economist.  He said that prospective buyers faced a very challenging market during the third quarter.  “Mortgage rates around historical lows and solid local job creation created a winning formula for sustained home buying demand all summer long,” he said.  “Unfortunately for house hunters in several of the top job producing metro areas around the country, deficient supply levels limited their options and drove prices higher, especially in markets in the West and South.”

To look at the entire survey of all 178 MSAs, please click here.

 

STATISTICS FROM THE UCCS ECONOMIC FORUM DELIVER MORE GOOD NEWS

UCCS Economic Forum, 11.18.16

The just released October statistics from the UCCS Economic Forum continue to deliver good news on all fronts in the Colorado Springs area.  These charts, which you can access by clicking here, will provide you with graphic detail of how we as a city, as well as El Paso County, are doing in many areas that affect our growth and economy.

If you have any questions about these, or any of the information I’ve presented in this eNewsletter, please give me a call at 598.3200.

 

HOUSING STARTS ARE SEEING GREATEST INCREASES IN NEARLY A DECADE

Housingwire.com, 11.17.16

Housing starts across the U.S., as well as locally, jumped in October to their strongest pace since 2007.  Multifamily homes surged and continued strong demand for owner-occupied housing helped spur home construction activity.

Why now?  The answer—Millennials. 

According to a number of sources, increased demand is coming from Millennials who are seeing improved household growth as the economy promotes further job and income gains.  These folks are an expanding portion of housing demand as they move out of their parents’ homes—increasingly to form families. 

According to Quicken Loans VP Bill Banfield, this report from the U.S. Census Bureau is “a boost of confidence for the housing market, as we haven’t seen a month-to-month leap like this in more than 30 years”.

 “While much of this was driven by the multifamily segment, we cannot overlook the significance of the gains made on single-family home construction—increasing to their highest levels in nine years”, he added.

More excellent news for us all.