Real Estate Information

August 1, 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.

ANOTHER MONTH OF MORE GOOD NEWS FOR LOCAL HOMEOWNERS

July PPAR statistics came out this afternoon and once more the Pikes Peak housing market has performed extraordinarily well now has shown 24 consequent months of increased local Residential real estate sales.

Homes are continuing to sell at a whopping 99.8% of listing price.  Not only that—the average days on the market is a low 25.  This is such good 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 are up 14.9 over July 2015.

The Monthly Summary shows that total active listings are down 18.5% for Single Family/Patio Homes and 26.7% for Condo/Townhomes compared to a year ago.  This downward trend is continuing to be great for sellers.  While new listings are slightly up, it continues to be more difficult, but certainly not impossible, for current buyers to find a new home. 

Median Sales Prices are up 6.0% and 6.6% respectively for Single Family/Patio Homes and Condo/Townhomes—more wonderful news for both buyers and sellers.

Another feather in our cap is the fact that Colorado Springs is once again in the “Top 20 Hottest Housing Markets” for July 2016. 

That said, I am still as busy as I’ve ever been, much of it due to increased equity in homes and still historically low interest rates that are causing folks to realize that they can get more house for the same or even less money by trading up or moving to a new area.  A number of first-time buyers are in the market due to the increasingly high rental rates.  That is also driving those looking for investment properties as rental homes have had “waiting lists” in recent days.

However, some problems that have surfaced are the longer lending approval times, bidding wars, delays in getting home appraisals and fewer homes available in the $300,000 and under range. 

One more time--it’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.

If you’re considering a move, give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the ball rolling.  I look forward to putting my special brand of customer service to work for you, your family and friends or co-workers.

 

JULY 2016 WAS THE 24^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 July 2016 PPAR report.  Please click here to view the detailed 14-page report, including charts. If you have any questions, just give me a call.

In comparing July 2016 to July 2015 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1,932, Up 2.7%
• Number of Sales are 1,485, Up 8.6%
• Average Sales Price is $294,162, Up 6.8%
• Median Sales Price is $257,500 Up 6.0%
• Total Active Listings are 2,780, Down 18.5%

                        Condo/Townhomes:

• New Listings are 281, Up 31.3%
• Number of Sales are 238, Up 22.7%
• Average Sales Price is $185,685, Up 9.3%
• Median Sales Price is $165,750, Up 6.6%
• Total Active Listings are 220, Down 26.7%

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

                                                Median Sales Price             Median Sales Price

                                                  July 2016                               July 2015

Black Forest                            $427,500                              $412,450                      

Briargate                                  $337,450                              $328,150         

Central                                     $209,450                              $180,000

East                                          $217,500                              $197,000

Fountain Valley:                      $232,000                              $217,000

Manitou Springs:                    $375,800                              $310,000

Marksheffel:                             $257,500                             $255,000

Northeast:                                $250,000                              $255,000

Northgate:                                $415,000                              $397,500         

Northwest:                               $365,000                              $355,500         

Old Colorado City:                  $225,000                              $245,450

Powers:                                    $255,000                              $229,500

Southwest:                              $286,500                              $282,500

Tri-Lakes:                                 $413,415                              $440,000

West:                                        $260,500                              $276,950

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

 

HOME SALES ARE NOW AT THEIR FASTEST PACE IN NEARLY A DECADE

The Wall Street Journal, 7.22.16

The National Association of Realtors has said that in June 2016 the pace of existing-home sales increased to the highest level since February 2007. 

The housing market has been boosted in recent months by strong job growth, improving wages and mortgage rates that have dipped near historic lows since Britain’s decision to leave the European Union.

While economists had predicted the pace of home sales would be moderate in 2016 due to fewer homes for sale and lackluster economic growth, thus far the market has largely outperformed those expectations.

NAR chief economist, Lawrence Yun, still predicts that the market is likely to slow throughout the remainder of the year.  While demand may remain strong, inventory shortages are likely to depress purchase he said.

 

real estate BETTER THAN STOCKS, GOLD

RealtorMag.com 7.25.16

In a recent national survey conducted by Bankrate, it was found that despite recent gains in the stock market, Americans have more confidence investing in real estate. 

Consumers selected real estate as the top pick to invest money the wouldn’t need for more than 10 years, followed by cash investments such as certificates of deposit and savings accounts.  Coming in third was the stock market.

According to Sterling White, a co-founder of Holdfolio, a real estate Investment firm, “Homes are tangible.  You can physically see and feel the product.  So you know where your money is going:  it’s going into that house.  With stocks, you have no clue where your money is going.”

The millennials were the only group that valued cash investments above their other choices by a large margin.  Financial planners are finding this a bit concerning, especially since right now you are practically getting no interest from cash investments like CDs and savings accounts. 

It’s possible that many of these millennials are still mired in student loan debt and either cannot save for a down payment or do not have the credit to qualify for a mortgage.  Hopefully they will get more detailed information to help them find a way to invest in a home.  Mortgage lenders are going all out to decrease down payment and credit requirements for these folks.

 

AMERICAN’S TOP HOUSING CONCERNS

RealtorMag.com

It appears that Americans are concerned about the upcoming election as much as they are about low inventories and high prices.  Once more, millennials are driving this concern.

Lingering concerns about the housing crisis of 2008 is of particular concern to these folks.  Confidence, or a lack of it, is keeping the millennials away according to a recent survey.

The top concerns Americans’ expressed in the latest ValueInsured Modern Homebuyer Survey were:

• Global economy:  59% of Americans and 68% of millennials say that the global economic climate had them worried

 

• American economy:  63% of Americans and 70% of millennials say that the current U.S. economy has them concerned about the risks of buying a home

 

• National security:  48% of Americans and 61% of millennials say that national security is taking a toll on their home-buying decisions

 

• Job security/mobility:  55% of Americans and 71% of millennials say that the possibility of a job change or loss has them concerned.

 

RENTAL INCOME PROPERTIES ARE ON THE RISE

The Gazette, 7.31.16, Bloomberg News

The share of Americans’ total personal income coming from rental profit rose to a record 4.4% in the first quarter 2016 according to data released in a monthly Commerce Department report.

That is an all time high in figures dating to 1947 and is up from 0.7% 30 years ago.  That’s a big WOW.

I’ve personally helped a number of my clients find rental properties to add to their investment portfolios and a number of them have purchased several of these in recent months. 

Two economic trends are at the core of this.  First, historically low mortgage rates have cut down expenses that would eat into a landlord’s pocket.  At the same time, tight supply has pushed rental prices in the U.S. (and most especially the Pikes Peak area) up at more than double the rate of other goods and services. 

“The share of Americans renting their home is now nearing 50-year highs, and this rapid shift has occurred at a time when the rental housing stock has not had ample time to catch up,” said Ralph McLaughlin, chief economist at Trulia.  “Investors have been able to capitalize on the shortfall by taking higher rents.”

With homeownership in the U.S. falling to 63.5 percent in the first quarter, near a 48-year low, it’s easy to understand why.  The paradox is that as much as renters want to own a home, higher rents are making it harder for them to save for a down payment and less than stellar credit histories are also a detriment.

For those of you considering rental income properties, please give me a call.  As I’ve said in the past, being a landlord is not necessarily for everyone, but I can provide you with the tools necessary to determine whether or not this might be a good financial investment for you. 

 

SKY SOX TICKETS GOING FAST

Just a reminder -- I have four front row seats available on a first come, first served basis.  Just give me a call and I will be happy to put them aside for you.  They tend to go out the door quickly, especially for the Friday night fireworks and Sunday 50-cent hot dog games.  If you are interested, don’t wait until the last minute.  I’ll save them for you if you let me know in advance.

 

 

 

 

 

July 18, 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.

THE COMPLICATED PSYCHOLOGY OF BUYING AND SELLING A HOUSE

The Wall Street Journal, 6.13.16

We might often forget this, but it’s a “fact of life”—homes come with far more emotional attachment that any other investment we might make.

Homes are places were we take refuge from the rest of the world and raise a family.  They offer an investment that hopefully will provide fruitful returns over time.  And we fall in love with a home in a way that we never fall in love with an investment portfolio of stocks and bonds.

How we feel about our homes or potential homes can often blind us to the reality of the market when it comes time to buy and/or sell. 

On the buying side, we often prioritize one set of emotional needs over others that are just as strong but not as evident at first.  Ignoring those can often lead us to make poor decisions that could affect us for years to come.

When it comes to selling, there’s a whole other set of issues.  We tend to value our homes based on our “rose-colored” perceptions and expect it be valued far beyond reasonable expectations or present market conditions. 

Here are a few missteps that buyers and sellers often make as they head into the housing market.

• Ignoring the big picture.  Buyers are often looking for features such as a long driveway or large backyard that will make them happier with their home.  What they don’t realize is that those changes may not make them happier with their life as a whole. 

“When people move to a better housing, they think they will be a lot happier overall,” says Singe Oishi, a co-author of a 2010 study on the subject in Social Indicators Research.  “When they actually move, however, their overall happiness does not often change because there are many tradeoffs in moving.”

One of the biggest tradeoffs is commuting.  Oftentimes moving to a bigger house means moving further away from work.  The commute can tend to add stress and detract from overall happiness, such as providing less “family time”.

Various studies have shown that if you move to a home far away from work or your friends, but it has nicer “stuff”, it’s not a great deal for your happiness. Therefore, it’s important to consider how the places you’re looking at will shape your social relationships.

 

• Overlooking big expenses.  Not totaling up the cost of everything needed to fix up and furnish the home can often lead to making poor choices about how much to pay for a home, says Alex Tabarrok, a professor of economics at George Mason University.  Overspending on a down payment can leave a buyer without enough for furniture or decorations that they want. 

 

• Weighing buying vs. renting.  The biggest budget concern is whether to rent or buy.  Research has shown that there are reasons for buying and also for opting out.  

Buying a home can provide a psychological boost, especially for a first-time buyer, since homeowners feel they have more control over their lives and are not dependent on a landlord who can change terms and conditions with each lease renewal.

However, home ownership has it’s own kind of stress since there is a certain amount of work necessary in order to maintain a home—not to mention the financial aspect of being tied to a mortgage or keeping up with repairs or other unforeseen costs.

 

• Expecting a big return. Robert Shiller, a professor of economics at Yale University wrote a paper, which was updated in 2014 that looked at the ways recent homebuyers around the country think about the future values of their properties.

He found, among other things, that “homebuyers have extremely high long-term price expectations”.  This can cause buyers to purchase homes that aren’t a good fit in terms of location or social scene just because they seem like a good investment.  Or they may stake their plans for retirement on the possible financial returns from selling a home. 

On a much larger scale, this “over-optimism” can lead to speculative booms that warp the overall market. 

It isn’t clear why homeowners are usually so cheerful about the future value of their homes, but researchers feel it may result from the “money illusion” – a failure to take inflation into account.

 

• Not wanting to come up short.  While people have many reasons for selling a home and for setting the prices they do, research has found that the most powerful emotion at work in a sale is loss aversion-- not wanting to sell a home for less than they paid for it.

If your home has depreciated in value it’s a fallacy to assume you’ll be able to recoup losses you’ve already incurred.  The current market price has nothing to do with how much a person actually paid for a home.  This can result in people stubbornly sticking to an asking price above market value and not selling their home at all.

With today’s market of quick decisions and high percentages of selling price to listing price, it’s still important to heed the above advice.  A home is often the most important financial investment you can make and you don’t want to miss the “warning signs” of emotional involvement.  That is just another good reason to turn to a knowledgeable, experienced real estate Professional like myself who can remain emotionally detached and help you find solutions that are based on market research and fact.  Taking your needs, wants and budget into consideration, I can help steer you in the right direction whether you are buying, selling or looking for investment properties.  Simply call me today at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how I can put my 44+-year experience in the local market to work for you.

 

COLORADO SPRINGS RANKED 4^TH BEST CITY TO LIVE IN…AHEAD OF DENVER

The Gazette, 7.13.16

Here’s another feather in our cap!  With all the high rankings in recent polls concerning “quality of life” and “affordability” of our city—we now add another one.  “Wallethub.com” recently named Colorado Springs “2016’s Fourth Best U.S. City in which to Live”, following the recent fifth place ranking for the same by U.S. News and World Report that I previously wrote about.  

Our city placed just above fifth-ranked Denver but below San Francisco, Seattle and Raleigh, N.C.  The top 62 largest cities in the U.S. were ranked by measuring, among others, livability, education, health, local economy and taxes. 

I’ve been living here for almost 45 years and am thrilled that the rest of the country is now discovering what I’ve always known—Colorado Springs is the BEST place to live.

 

LOW MORTGAGE LOAN RATES AREN’T LEAVING JUST YET

The Washington Post, 7.14.16, The Wall Street Journal, 7.14.16

All those predictions of higher mortgage loan interest rates that we read about after the Federal Reserve rate hike last December?   Not happening.  In fact, as I reported two weeks ago, rates are at their lowest in years.  That doesn’t mean they are never going up…it’s just not happening right now. 

Fannie Mae revised its outlook for mortgage rates last week and now predicts the 30-year rate won’t move above 3.6% this year and will be about 4% in 2017.  In the past it said that rates would reach 4.5% by the end of this year.

According to Sean Becketti, Freddie Mac chief economist, “The turbulence abroad should continue to create demand for U.S. Treasuries and keep mortgage rates near historic lows; thereby, allowing home sales to have their best year in a decade, along with a boost in refinance activity”.

And Elliot Eisenberg, the “Bowtie Economist” says this about the “Real Rate”.  “While short-term rates are extremely low, the Fed Funds rate is at 0.375%; monetary policy isn’t all that expansionary!  The real interest rate—the fed funds rate minus inflation—is roughly -1.25%, yet the rate that is neither expansionary nor contractionary is about 0%.  That’s why the Fed isn’t in a huge rush to raise rates.  I expect one quarter-point rate rise in 2016 and two in 2017”.

This is all incredible news for local buyers and sellers.  With our median sales prices at a record high and home values rising steadily, many who were “underwater” due to the housing crisis are now seeing increased equity which will enable them to enter the market at a time when interest rates are still historically low. 

Even in this fast-paced, slightly frenetic market at present there are still great values, especially compared to Colorado communities further north of us, especially Denver.  New listings become available daily and there’s a home that’s just right for you.  When it’s your time to begin the process, whether buying or selling, please give me a call and let’s get the ball rolling. 

 

SHOULD YOU WAIT UNTIL NEXT YEAR?  OR BUY NOW?...Infographic

Keeping Current Matters, 7.16.16

Some Highlights:

• The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
• Freddie Mac predicts interest rates to rise to 4.6% by next year.
• CoreLogic predicts home prices to appreciate by 5.3% over the next 12 months.                     

If you are ready and willing to buy your dream home, it’s time to check with me and find out if you are able to!

 

SAVE THE DATE FOR THE 20^TH ANNUAL SOUTHERN COLORADO ECONOMIC FORUM

Mark your calendars for what is sure to be another sold-out event.  The Southern Colorado Economic Forum, sponsored by the UCCS College of Business is celebrating 20 years and this year the Forum is changing things up a bit and having an afternoon meeting and happy hour.

The date is Friday, October 14, 2016 at The Broadmoor Hall and will be held from 1:00 p.m. to 4:30 p.m. with a Networking Happy Hour to follow.  The full agenda will be available in August and should promise to be another informative meeting.

Salzman real estate Services has been a proud sponsor of the Forum since its inception and I encourage those of you who might have missed this event in the past to be sure to calendar it in today.  Registration information will be available soon at:  www.UCCSEconomicForum.com .

 

 

 

 

 

July 6, 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 THE GOOD NEWS JUST KEEPS ON COMING FOR LOCAL HOMEOWNERS

Hope you all had a wonderful Independence Day holiday.  I waited a couple of days to publish this in anticipation of sharing more good news with you on the home front and I wasn’t disappointed.  The June PPAR statistics came out yesterday and once more the Pikes Peak area has record-setting sales of previously owned homes and in median home prices which brought us to 23 consequent months of increased local Residential real estate sales,

Homes are selling at a whopping 99.8% of listing price.  Not only that—the average days on the market is a low 28.  This is such good 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 are up 17.8% over June 2015.

The Monthly Summary shows that total active listings are down 16.8% for Single Family/Patio Homes and 34.4% for Condo/Townhomes compared to a year ago.  This downward trend is continuing to be great for sellers.  However, it is more difficult, but certainly not impossible, for current buyers to find a new home. 

Median Sales Prices are up 5.0% and 12.4% for both Single Family/Patio Homes and Condo/Townhomes respectively—more wonderful news for both buyers and sellers.

The spring buying spree has turned into the summer buying spree and I don’t see the end in sight. Higher rents and better mortgage loan opportunities are an impetus for first-time buyers.  With the mortgage loan rates still historically low, many current homeowners are taking advantage by selling to trade up, downsize or move to a new neighborhood.

And worth repeating--it’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.

As an aside, we can thank “Brexit” for delivering US homebuyers with a very definable windfall:  mortgage rates are now the lowest they’ve been in three years!

More good news locally is that new listings are up—9.3% for Single Family/Patio Homes and 22.6% for Condo/Townhomes.  This indicates that local homeowners are finally realizing that it’s a good time to put their equity to work for them and others are finally seeing increased equity after having been “underwater” for a few years.  In any case, that translates to more homes for sale and hopefully a little less frenzy in the buying process.

Speaking of the buying (and selling) process…whenever the real estate market gets “hot” we find more people wanting to get into the real estate profession.  Lack of experience can be a real detriment for both a buyer and a seller in this type of market and that’s why I encourage you to use a knowledgeable, experienced real estate professional like myself in your home buying and selling transactions.  I’ve witnessed some things in recent weeks that I would never want my clients to have to experience.  So…a word to the wise…in one of the most important financial decisions of your life you need someone like me on your side. 

If you’re considering a move…either across town or across the country...give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the ball rolling.  I look forward to putting my special brand of customer service to work for you, your family and friends or co-workers.

 

JUNE 2016 WAS THE 23^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 June 2016 PPAR report.  Please click here to view the detailed 14-page report, including charts. If you have any questions, just give me a call.

In comparing June 2016 to June 2015 in PPAR:                    

                        Single Family/Patio Homes:

• New Listings are 2,056, Up 9.3%
• Number of Sales are 1,651, Up 17.8%
• Average Sales Price is $294,962, Up 5.6%
• Median Sales Price is $262,500, Up 5.0%
• Total Active Listings are 2,639, Down 16.8%

 

                        Condo/Townhomes:

• New Listings are 266, Up 22.6%
• Number of Sales are 204, Down 3.8%
• Average Sales Price is $183,237, Up 10.2%
• Median Sales Price is $170,000, Up 12.4%
• Total Active Listings are 191, Down 34.4%

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

                                                Median Sales Price             Median Sales Price

                                                  June 2016                              June 2015

Black Forest                            $433,500                              $418,000                     

Briargate                                  $355,500                              $342,400           

Central                                     $200,000                              $217,000

East                                          $223,000                              $190,500

Fountain Valley:                      $229,900                              $217,500

Manitou Springs:                    $347,500                              $334,500

Marksheffel:                            $279,900                              $258,000

Northeast:                               $244,450                              $239,000

Northgate:                               $397,500                              $365,999         

Northwest:                              $377,500                              $336,500           

Old Colorado City:                 $240,000                              $210,000

Powers:                                   $250,000                              $236,500

Southwest:                              $342,250                              $308,750

Tri-Lakes:                                $425,000                              $415,500

West:                                       $250,000                              $201,000

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

 

MORE REPORTS FILLED WITH GOOD NEWS

One of the reasons I like to share both local and national statistics with you is that I’ve always believed that an informed buyer or seller is a good buyer or seller.  The more information you have helps you make a better decision and when it comes to home buying and selling you need as much information as possible from multiple sources.

You can click here to see the latest report from the UCCS Economic Forum, which shows both national and local statistics for the month of May. 

The detailed reports from PPAR for May 2016 are also now available.  You can click here for the Monthly Indicators report and click here for the Local Market Update.

 

CITY COMPREHENSIVE PLAN UNDERWAY

Colorado Springs Mayor John Suthers has appointed a 15-person committee, along with Committee Chairman Merv Bennett and Vice-Chair Jill Gaebler to work together for two years. 

According to the Mayor it is our task to “Create and implement an updated land use vision for our future as Olympic City, USA.”  I am honored to represent the real estate community, and even more so because I can keep you all informed in a timely manner about future plans for our city.

Stay tuned for information as it becomes available.

 

RENTERS STILL HAVING A ROUGH TIME

RealtorMag, 6.23 & 6.27.16

About 21.3 million Americans—a record high—are devoting 30 percent or more of their income to paying rent, according to the annual State of the Nation’s Housing report from Harvard University’s Joint Center for Housing Studies.  Even more, 11 million renters in 2014 paid at lease half of their income toward housing costs, which marked another high, the report shows.  Most financial experts say consumers should not pay more then 30 percent of their monthly income for housing costs. 

Rents have been rising faster than wages for years now.  According to Dan McCue, a senior research associate at Harvard, “When you have to dedicate such a high proportion of your income to rent every month it forces you to make difficult decisions.  It means spending less on essentials like food, clothing, and health care, as well as less opportunity to save for a down payment on a home or plan for retirement.”

According to the report, the median rent for a new apartment was $1,381.  That means a renter would need to earn at least $55,000 a year to afford the rent.  Yet on average, renters earn about $34,000—which would mean an affordable rent would be closer to $850.

Affordability is another reason why renters are not yet owners, according to Lawrence Yun, NAR’s chief economist.   “We are seeing flashing yellow lights on affordability.  People who are currently renting and want to convert into ownership—major difficulty.  Home prices are rising way too fast compared to people’s income and wage growth.  We are facing housing affordability challenges already with low mortgage rates, but what happens when the rates begin to rise?”

As I’ve written before, many mortgage lenders are lowering their qualification and down payment requirements in an attempt to help first-time homebuyers.  This is certainly worth investigating if you or anyone you know is in this situation. 

This also presents an opportunity for those looking for investment property.  In either case, I am available to help you discover the best way to deal with the situation, and hopefully find solutions in either of these scenarios.  Just give me a call at 598.3200 and let’s see how to make home ownership or investment opportunities work for you. 

 

PLAN.  PREPARE.  PREVAIL.

Federal Reserve Bank of Kansas City, 6.22.16

The Federal Reserve Bank of Kansas City has a convenient way for individuals, families and small business owners to learn about what financial documents and records they need to have available in case of an emergency or disaster.

The Plan.Prepare.Prevail. is an extensive website containing disaster-preparedness information:

• Personal and small business financial inventory forms
• Quick checklists to identify and organize key financial records
• Links to other valuable resources and materials

Disasters don’t take a vacation.  Make sure your financial records are ready by visiting this website today.

 

HARRY’S JOKE OF THE DAY:

Job Well Done

Seller to Agent:  You’ve done such a great job describing my house in your real estate listing that I’ve decided to keep it!

 

 

June 20, 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.

“SPRING BUYING SEASON” HAS BEEN HOTTER THAN EVER….AND I’M NOT EVEN TALKING ABOUT THE RECORD SETTING TEMPERATURES

Today is the first day of Summer and I’ve been busier these last few months than any Spring Buying Season I can ever recall. It seems like everyone either wants to sell and trade up, buy for the first time or buy for investment purposes.  I’m getting calls from folks I haven’t heard from in a number of years as well as those who have seen my “SOLD” sign on homes in their neighborhood. 

It makes perfect sense to me.  Interest rates are still historically low, and while there is still talk of the Federal Reserve raising rates in the future, it doesn’t seem to be affecting the mortgage interest rates at this point.   As a matter of fact, mortgage loan rates moved lower this week for the second straight week and are currently the lowest since May 2013.

And as I mentioned in the last edition, banks and other mortgage lenders are easing up in terms of down payment and credit requirements.  This is especially good for first time buyers, as they often do not have the cash for a large down payment and more than likely have little or no credit experience. 

Rental rates are increasing each month and Colorado Springs is leading the nation in that category.  This is creating opportunities for not only first-time buyers but also for first-time investors or for those who have been thinking about adding to their investment property portfolio.  Unfortunately these starter homes go quickly and it takes a seasoned real estate Professional such as myself to figure out a way to have a first offer get noticed and ultimately accepted.

Listings are still way down, but I’m finding that there is something for everyone as long as they know what they want, need and can afford prior to the home search.  Getting pre-approved from a lender is a must and it’s very important to be able to make a decision quickly once you find the home you want.  The days of mulling it over for a few days are a thing of the past. 

If you, a family member, co-worker or friend are ready to start the ball rolling on residential real estate—either for the first time, as a seasoned buyer or for investment purposes, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let me put my 44+ years experience to work in helping achieve whatever goals you or they have. 

 

MORTGAGE INTEREST RATES ARE STILL HISTORICALLY LOW

The Wall Street Journal, 6.18-19.16, RealtorMag, 6.19.16

Last Wednesday, the Federal Reserve held short-term interest rates steady, and officials lowered projections of how much they will raise them in coming years.  This is excellent news for consumers who have not yet taken advantage of historically low rates, or who were held back due to lack of equity in their present home. 

Rates for a 30-year-fixed mortgage fell to 3.52% and Jumbo mortgage rates fell to 2.77%, according to Bankrate.com, which based rates on a survey of over 4,800 online banks. 

Banks and other mortgage lenders are welcoming the increased mortgage loan business because it helps offset pressure from falling bond yields.  Most are passing these savings on to their customers, and Wells Fargo recently said that it expects origination volume industry-wide to be 20% to 25% higher for the year than it had initially anticipated. 

With an easing of qualifications and lower rates, hopefully this will translate into more first-timers being able to enter the market and will help those who were unable to participate in the first wave of low rates to be able to reconsider and find their way back into the market. 

If you are wondering how these low rates and easier qualifications can work for you, simply give me a call and let’s see how we can make your residential real estate dreams come true.

 

STUDENT DEBT IS PREVENTING BOTH BUYERS AND SELLERS FROM ENTERING THE real estate MARKET

RisMedia, 6.16.16

According to a new joint survey on student loan debt and housing released by the NAR and SALT^®, a consumer literacy program provided by nonprofit American Student Assistance, “71% of non-homeowners repaying their student loans on time believe their debt is stymieing their ability to purchase a home, and slightly over half of all borrowers say they expect to be delayed from buying by more than five years”.

The results also revealed that student debt postponed 4 in 10 borrowers from moving out of a family member’s household after graduating college.

Nearly three-quarters of non-homeowners polled in the survey believe their student loan debt is delaying them from buying a home.  The highest share is among older millennials approximately aged 26 to 35 and those with $70,000 to $100,000 in total debt.  Regardless of the outright amount of student debt, more than half of non-homeowners in each generation report that it’s postponing their ability to buy.

Lawrence Yun, NAR chief economist, says the survey findings bring to light the magnitude student debt is having on the housing market and the budget of even those financially able to make on-time payments on their student loans. 

While obtaining a college degree increases the likelihood of stable employment and earning enough to purchase a home, many who graduate with this kind of debt are putting homeownership on the backburner in part because of the multiple years it takes to pay off their student loans at an interest rate that’s oftentimes nearly double current mortgage rates.

“A majority of non-homeowners in the survey earning over $50,000 a year--which is above the median U.S. qualifying income needed to buy a single-family home—reported that student debt is hurting their ability to save for a down payment,” Yun says.  “Along with rent, a car payment and other large monthly expenses that can squeeze a household’s budget, paying a few hundred dollars every month on a student loan equates to thousands of dollars over several years that could otherwise go toward saving for a home purchase.”

Among those non-homeowners who believe student debt is delaying their ability to buy, over three-quarters—including over 80% of millennials—said their delay is because they can’t save for a down payment.  Also, 69% don’t feel financially secure enough to buy and 63% can’t qualify for a mortgage because of high debt-to-income ratios.

A majority of those surveyed expect to be delayed by more than five years from purchasing a home due to student debt.  Those with higher amounts of student debt and those with lower income expect to be delayed the longest, as would be expected.

The survey also found that student debt is affecting the overall housing supply by holding back some current homeowners who otherwise would like to sell and trade up.  Nearly 1/3 of current homeowners surveyed said their student debt is postponing them from selling their home and purchasing a new one. 

“It is imperative to the nation’s economy that we find immediate and practical solutions to financially empower the 43 million Americans with student debt,” says SALT^® President John Zurick.  “SALT^® is committed to demystifying the college financing process by giving consumers information, instruction and individualized advice.  No one should not realize the full potential of their formal education simply because of finances.  We invite the higher education community, the U.S. government, the private sector and others to join with us in this movement.”

As a REALTOR^® I didn’t need to read about this survey to know the problems concerning student debt and the ability to purchase a home.  I come across this stumbling block regularly.  It IS “imperative” that we find a solution and I am working diligently behind the scenes at present to see what can be done to help alleviate some of these problems.  Stay tuned for more information as it becomes available.

 

SELLERS:  WHAT EVERY BUYER WANTS TO KNOW ABOUT YOUR HOME

RisMedia, 6.8.16

With high demand and sales at their strongest in close to a decade, home sellers are in an advantageous position this summer.  Here are a few specific items that every buyer wants to know prior to purchasing a home they are considering.  Some of this is information that may seem premature to advertise initially, but could ultimately be determining factors in a buyers decision to make an offer.

• How old is the home?  When was it last renovated?  How old is the roof?

 

• What structures or fixtures are included in the list price?  (Appliances, ceiling fans, lighting, shed, swing set, window treatments, etc.)

 

• What are the home’s annual costs? (Electric, municipal water, gas, oil, lawn care, pool maintenance, etc.)

 

• Has the home required asbestos, lead or mold removal?  Has the home been tested for radon?

 

• How is the home heated and/or cooled?  How old is the heating and/or cooling system?  How old is the hot water heater?

 

• How is the wiring?  Is it up to code?

 

• Has the well water been tested?

 

• Is/was an oil tank buried on the property?  Is there a septic system, cesspoll or drywell?

 

• Are there any outstanding permits or liens on the property?

 

• What are the homeowners association fees?  What is the move-in fee?  What amenities or services are provided by the HOA?

By providing these answers upfront you meet prospective buyers on their terms which could lead to an offer that much sooner or one that won’t fall apart due to answers they get at a later date. 

 

SKY SOX TICKETS ARE YOURS FOR THE ASKING

Another reminder--I have four first row seats right behind the home team dugout.  These are yours for the asking, but on a first-requested, first-served basis.  Just give me a call and I will be happy to reserve tickets for you for any home game of the season.

 

 

 

 

 

June 7, 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.

SUCH GREAT NEWS ALL AROUND THAT IF YOU TAKE THE R’s OUT OF “HARRY” AND SWAP THEM WITH “P’s” YOU WOULD SEE HOW “HAPPY” THIS MAKES ME.

You are receiving this issue a day late is because I wanted to be able to share the latest PPAR Monthly reports with you that were released late yesterday.  And I’m so HAPPY that I waited.  As anticipated, the results are sure to make you smile. 

May brought us to 22 consequent months of increased local Residential real estate sales, and coupled with the fact that the Cost of Living in Colorado Springs just hit a three year low—that’s a BIG WOW. 

While those of us that live here know the many pleasures afforded to Colorado Springs residents, it’s apparent that the rest of the country is now considering not only our mountains and clean air but also our low cost of living and growth as compared to other cities—not only in CO—but all around the country.  Downtown redevelopment and an increased job market are just two things adding to this surge.

I’ve been as busy as I’ve ever been and when you see the reports you’ll understand why.  Homes are selling at a whopping 99.9% of listing price—the highest I can ever remember.  Not only that—the average days on the market is a low 32.  This is such good 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 are up 7.3% over May 2015 while Condo/Townhome sales are up 6.1%.  I believe these numbers would have been even higher had there been more homes available for sale.

The Monthly Summary shows that total active listings are way down—20.5% down for Single Family/Patio Homes and 41.6% down for Condo/Townhomes compared to a year ago.  This downward trend is making it a blessing for sellers.  However, it is more difficult, but certainly not impossible, for current buyers.

Happily, Median Sales Prices are up 7.8% and 7.1% for both Single Family/Patio Homes and Condo/Townhomes respectively—again wonderful news for both buyers and sellers.

It appears that the spring buying season will be continuing right through summer and when you consider that rental rates are rising so quickly, especially here in the Springs, it’s no wonder that we are seeing so many first-time buyers as well as first-time investment property buyers.

According to the May 2016 Colorado Apartment List Rent Report,  Colorado rental rates remain well above the national median for the month of April.  Colorado Springs came in as the city with the strongest year-to-year growth at 11.4%.  Month-over-month, rents here increased by 0.4%.

Our city is continuing to make national news as Colorado Springs was ranked as the 13^th hottest housing market in the country in May on the National Association of Realtors^®’ list of the Top 20 nationally, based on the speed at which homes are selling.

With mortgage interest rates continuing to remain historically low, this is a great time to realize your residential real estate dream.  Whether to sell and trade up, move to a new neighborhood, downsize or simply buy for the first time or for investment purposes, the time to do it is NOW.

It’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.

When it comes to making an offer…it’s important to makes yours stand out.  That’s where my 44 plus years of residential real estate experience come in very handy.  I know how to write an offer and negotiate a deal that gets to the closing table.  It may not come out on top every time, but my outstanding success rate is just another feature of my personal brand of customer service.

When preparing to sell your home, another factor to consider with homes selling so quickly is that you need to have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home.  I can help you in this scenario too.

Now you can understand why HARRY is HAPPY and I’ll be even happier when I can help you make all your real estate dreams come true.   Simply give me a call at 598.3200 or email me at Harry@HarrySalzman.come and let’s get started. 

It is indeed, a HAPPY, HAPPY DAY for Residential real estate in the Colorado Springs area.

 

MAY 2016 WAS THE 22^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 May 2016 PPAR report.  Please click here to view the detailed 14-page report, including charts. If you have any questions, just give me a call.

In comparing May 2016 to May 2015 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1,955, Up 6.3%
• Number of Sales are 1,497, Up 7.2%
• Average Sales Price is $290,256, Up 4.8%
• Median Sales Price is $262,000, Up 7.8%
• Total Active Listings are 2,296, Down 20.5%

                        Condo/Townhomes

• New Listings are 265, Up 21.6%
• Number of Sales are 201, Down 2.9%
• Average Sales Price is $171,236, Down 0.5%
• Median Sales Price is $167,000, Up 7.1%
• Total Active Listings are 167, Down 41.6%

 

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

                                                Median Sales Price             Median Sales Price

                                                  May 2016                               May 2015

 

Black Forest                            $471,400                              $435,000                       

Briargate                                  $338,500                              $310,000           

Central                                     $215,000                              $201,500

East                                          $215,000                              $210,950

Fountain Valley:                      $237,000                              $208,000

Manitou Springs:                    $237,000                              $242,100

Marksheffel:                             $279,900                             $259,450

Northeast:                                $243,888                              $231,750

Northgate:                                $413,579                              $387,000           

Northwest:                               $333,500                              $339,375

Old Colorado City:                  $219,250                              $200,000

Powers:                                    $252,000                              $229,700

Southwest:                               $326,500                              $358,000

Tri-Lakes:                                 $450,000                              $417,000

West:                                        $244,000                              $224,500

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

 

3% DOWN PAYMENT LOANS BEING READIED

Realtor^®Mag, 5.27.16

A number of banks are veering away from Federal Housing Administration (FHA) loans and beginning to offer their own low down payment mortgages in order to appeal to home shoppers who are struggling to save enough to purchase a home.  Wells Fargo, in particular, made headlines with the debut of its 3% down payment loan.

JPMorgan Chase also debuted its “Standard Agency 87%” program, a 3% loan for first-time home buyers with a FICO credit score of 680 or higher.  They also have a “DreaMaker Mortgage” which offers 5% down—3% of which can come from the borrower as well as flexible funding options for closing costs and reduced mortgage insurance requirements.

Bank of America and other banks are also getting onboard with these new offerings.

According to Wells Fargo’s Brad Blackwell, executive vice president and portfolio manager, “We’ve taken all the complexity of the home mortgage lending process, removed it from the front-line consumer, so that it’s easy for them to understand and Wells Fargo is taking care of all the capital markets and other types of complexities behind the scenes”.

The mortgage lenders have said that the monthly payment for these loans will be less than the government-insured FHA loans. 

While there are certain risks with these loans, JPMorgan Chase’s CEO, Jamie Dimon, says that “Mortgages are important to our customers and for most of our customers, their home is the single largest purchase they will make in their lifetime.  More than that, it is an emotional purchase—it is where they are getting their start, raising a family, or maybe spending their retirement years.  As a bank that wants to build lifelong relationships with its customers, we want to be there for them at life’s most critical junctures.”

Shopping for a mortgage is an important step in the home buying process, and most especially for first-time buyers.  Another good reason to use an experienced real estate Professional like myself as I have many years of experience working with both local and national mortgage lenders and can help steer clients in the right direction when they are looking for mortgage financing.

 

PENDING HOME SALES SURGE TO 10-YEAR HIGH

Housing Wire, 5.26.16

Overcoming industry hurdles, pending home sales in the USA increased for the third consecutive month in April to their highest level in over a decade, according to The Pending Home Sale Index, a forward looking indicator based on contract signings.

Lawrence Yun, chief economist for the NAR, said, “The ability to sign a contract on a home is slightly exceeding expectations this spring even with the affordability stresses and inventory squeezes affecting buyers in a number of markets.  The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market.”

This boom appears to have affected all major regions, except the Midwest, which saw a meager decline.

According to Yun, “Even if (mortgage) rates rise soon, sales have legs for further expansion this summer if housing supply increases enough to give buyers an adequate number of affordable choices during their search”.

The Wall Street Journal last week said that the S&P/Case-Shiller national home-price index “clawed its way back to within 4% of its 2006 peak, a steep rise from the near 30% decline at the bottom in 2012.”

Once more, the happy news just keeps on coming.  And…another reminder…if you’ve even been thinking about a move…NOW is the time.

 

UCCS MONTHLY ECONOMIC REPORT

The recently released May economic dashboard from the Colorado Springs Economic Forum, showing results from April 2016, can be seen in its entirety by clicking here.

Some highlights include:

• Consumer sentiment in April was 90.0, which represents a slight decrease from March.  May preliminary estimates are significantly higher.

 

• The U.S. civilian participation rate was 62.8% in April, a slight decrease from March.  2/3s of the reduction in the unemployment rate this past year is due to the long-term unemployed returning to work.

 

• The number of employed people in El Paso County has increased most significantly in health and social assistance, accommodation and food services, and professional and technical services.

 

• Tourism here continues to do incredibly well, with our hotel occupancy rate at a 20 year high.

 

SKY SOX TICKETS ARE YOURS FOR THE ASKING

Just a reminder--I have four first row seats right behind the home team dugout.  These are yours for the asking, but on a first-requested, first-served basis.  Just give me a call and I will be happy to reserve tickets for you for any home game of the season

 

HARRY’S THOUGHT OF THE DAY:

 

 

 

 

May 23, 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

CITY OF COLORADO SPRINGS SHOWS 40% BETTER MEDIAN SALES PRICE APPRECIATION THAN THE U.S.A. AS A WHOLE FOR FIRST QUARTER 2016 COMPARED TO FIRST QUARTER 2015

National Association of Realtors^®, May 2016

Wow.  And another Wow awhile I’m at it.  As most of you know, I track the quarterly Median Sales Price of Existing Single-Family homes, based on sales closed, for approximately 178 of the top Metropolitan Areas in the country.  While the city of Colorado Springs has done well in comparison to itself in the last four quarters, it has fallen behind percentage-wise to other measured cities and the country as a whole at times.

I’m thrilled to report that the most recent results show a whole other picture and from all the recent local housing market activity I’m not entirely surprised.  In the first quarter 2016, Colorado Springs has shown a 9 percent increase in the Median Sales Price of Existing Homes compared to first quarter 2015.  We outpaced the country as a whole (6.3 percent) and even the Western U.S. (7.1%).  Please click here to see the results of all measured cities. 

Considering the improved economy and job market locally and the continued low mortgage loan interest rates, this is not a huge surprise—but again—it’s most certainly a BIG WOW for us.

According to Lawrence Yun, chief economist for the NAR, “Current homeowners in many metro areas—especially those who purchased a home immediately after the downturn—have enjoyed a sizeable boost in housing equity and household wealth in recent years.”

He added that this is not the case for renters.  “At a time of stagnant wage growth (in general) and mounting rent increases…their inability to reach the market because of affordability and supply restrictions is contributing to rising wealth inequality in the U.S.”

This has been a very busy spring buying season but for reasons in addition to the usual ones.  We, like the rest of the country, are experiencing a shortage of listed homes and those that go on the market are selling fast—often with bidding wars—and going for listing price and more. 

With rental prices rapidly escalating and the uncertainty of how high the annual increases may be, a lot of folks are looking to buy—many for the first time.  Those people are in competition with others who are looking for investment properties to rent and oftentimes they get outbid by all cash offers or by those who have fewer restrictions in their offer. 

I’ve been telling you for some time that if you are in the market—you need to be prepared.  Prepared means knowing what you want, need and can afford and prepared to make an informed decision in a very short period of time—often minutes or hours.  I’m here to do the homework in helping you find what might be available for your personal situation and to help you find a reputable lender to get pre-approved, but I can’t make the final decision for you. 

Gone are the days where you can think it over for a day or two.  If you are seriously looking, you need to be ready to say “yes” practically on the sport when you find what you are looking for.

If you are planning to sell and trade up, you need to know exactly what you might do if your present home sells prior to you finding a new place because, at present, homes are not on the market for more than a month on average. 

It sounds like a lot of pressure, and it is.  That’s why you need a professional, knowledgeable real estate Broker like me on your side.  My 44+ years in the local arena, along with my national relocation network of Realtors/Brokers, gives me an advantage in knowing how to survive the buying and selling wars that are the norm today. 

If you are in the market, or know someone who is, please call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s get going.  There may not be a lot of inventory, buy somehow there is most always a home that’s exactly what you are looking for as long as you are open to the possibilities of new neighborhoods and other not-thought-of options.

 

THIS INFOGRAPHIC EXPLAINS THE housing market IN A NUTSHELL…

Keeping Current Matters, 5.13.16

Some Highlights:

• Home sales are up 1.5% year-over-year and 5.1% month-over-month.
• Demand is still much higher than the available housing inventory, which declined 2.2% from March 2015.
• This is the 49th consecutive month with year-over-year price gains.

 

WITH RISING RENTS, MORE INVESTORS ARE BEING COMING LANDLORDS

USA Today 5.15.16

With fewer homes on the market many folks who were previously “flippers”—those who bought low, fixed up the house, and turned around and sold it for a nice profit—are considering that it might be more profitable to become landlords. 

According to Lawrence Yun, one of the biggest reasons more investors are opting to become landlords right now is because they like the income potential.  “Rents have been rising, hovering near six-or seven-year high levels and are seeing close to 3.5% growth from 12 months ago,” said Yun.  That means not just getting a steady flow of cash from a tenant but also the prospect of an even higher income stream with each passing year.  This is looking good right now considering what savings accounts and Treasury bonds are now paying,

The laws of supply and demand are on the landlords’ side at present.  On the supply side, there aren’t enough rental units available, with vacancy at just 7% first quarter 2016 according to the U.S, Census Bureau.  And vacancies are even less here in Colorado Springs!

On the demand side, many young people are being forced to rent due to having to be mobile for their professions.  They also don’t always have the means or desire to purchase property.  Older Americans are also choosing to rent as well.

If you are thinking of becoming a landlord there are a number of things to consider besides having the capital to do so. 

According to Yun you should:

• Think local.  Successful investors prefer properties within a 30-minute drive of their primary residence, and not simply so they can be “on-call” to be a handyman.  “It’s about the unknown and a preference for knowing their local market,” says Yun.  Even if all the data and statistics may say the investment property 200 miles away may provide a better return, most people don’t feel comfortable not knowing the real estate market conditions.”  However, if the local rental market is not robust—you are better looking at other investments.

 

• Look into regulations and taxes.  As a landlord you have to report any rental income to the IRS and you’ll be eligible for certain property-related deductions to offset any taxes.  Therefore, running this by your accountant is extremely important.  Understanding tenant and landlord rights is equally important and these vary by municipality and state.

 

• Account for maintenance and vacancy costs.  It’s common for new landlords to underestimate the operating costs of rental properties, especially the maintenance and turn costs when a tenant vacates.

 

• Think ahead.  If your rental is in a town where your children may want to go to college or if it’s a smaller home that you may consider moving into when you retire, there may be added benefit to owning a rental property beyond the short-term goal of making some money.  It’s possible the property you buy now to rent could be put to some other use further down the road.

 

I’ve been selling a number of homes in the last few months to those who have realized that they are getting a greater return from real estate than from any other long-term investments.  However, as I’ve said before—not everyone is in a position to be a landlord.  I’ve had many years of experience in this arena personally and if you’re interested, I would be more than pleased to share my experiences with you.  

And…if and when you are ready to get into the rental market, I’m here to help you all the way with finding the right property.

 

FOR THOSE WHO NEED ANOTHER REMINDER OR TO PASS ON TO SOMEONE WHO DOES…

Keeping Current Matters, 5.20.16

Some Highlights:

• The percentage of income needed to afford a median priced home is almost half the percentage of income needed to afford median rent.
• Buying costs are significantly less than renting costs.
• The percentage of income needed to afford a median priced home is less than the historic norm.

 

AN INTERESTING TIDBIT AND ONE TO WHICH I HEARTILY CONCUR…

The Gallup organization recently released a survey in which Americans were asked to rank what they considered to be the “best long-term investment.”

real estate ranked number one, with 35% of those surveyed saying it was a better long-term investment than stocks & mutual funds, gold, savings accounts or bonds.

 

OTHER INTERESTING FACTS FROM THE U.S. CENSUS BUREAU…

• Denver is now the 19^th most populous city in the nation with an estimated 2015 population of 682,545.

 

• El Paso County had an estimated 2015 population of 674,471.

 

• Colorado Springs ranked as the 40^th biggest city in the country with 456,568 estimated 2015 population.

 

All I can say is another “WOW”.  No wonder I’m getting so many calls from folks who might be working in Denver but want to live here.  Lots more open spaces and certainly less traffic.  But it’s still hard for me, after living here for 44+ years, to realize that we have grown so big.  And…I guess it’s not going to stop there.

 

 

 

 

 

 

 

 

May 3, 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.

 

 

APRIL 2016 WAS THE 21^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And here we go again…. I am happy to once again report that prices and sales are continuing their upward climb in the Residential real estate Market for the Pikes Peak Region.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 19.3% over April 2015 while Condo/Townhome sales are up 18.8%.  The average Days on the Market is a low 32.  Homes are selling, on average, at 99.8% of the list price.  Had there been more homes available for sale, these numbers might have even been higher.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year.  However, new listings are slightly up at 6.6% year-over-year for Single Family/Patio Homes and 1.2% for Condo/Patio Homes.

Our city is continuing to make national news as Colorado Springs was recently ranked as the 12^th hottest housing market in the country on the National Association of Realtors^®’ list of the Top 20 nationally, based on the speed at which homes are selling.

I’m continuing to see homes go faster than I can ever remember.  Recently I’ve been out with clients to see homes and we find out that they are “under contract” before we even get to view them.  The spring season has brought a few more homes to the market, but they are moving fast.

With rental rates steadily increasing, I’m finding more folks interested in either buying for the first time or buying for investment purposes.  In either case, those “starter” homes are going quickly too. 

So I’m going to tell you once again. NOW is the time to make your move if you’ve considered selling to trade up or to move to a new neighborhood.  The longer you wait, the more it’s going to cost you as home price increases are showing no sign of tapering off yet.  Interest rates are still historically low, but that too is set to change before year’s end. 

It’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present.

And when it comes to making an offer…it’s important to makes yours stand out.  That’s where my 43 plus years of residential real estate experience come in very handy.  I know how to write an offer and negotiate a deal that gets to the closing table.  It may not come out on top every time, but my success rate is just another feature of my personal brand of customer service.

When preparing to sell your home, a factor to consider with homes selling so quickly is that you need to have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the April 2016 PPAR report.  Please click here to view the detailed 14-page report, including charts. If you have any questions, as always, just give me a call.

In comparing April 2016 to April 2015 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1,952, Up 6.6%
• Number of Sales are 1,268, Up 12.8%
• Average Sales Price is $274,891 Up 3.4%
• Median Sales Price is $248,050, Up 5.6%
• Total Active Listings are 2,080, Down 22.8%

                        Condo/Townhomes:

• New Listings are 249, Up 1.2%
• Number of Sales are 176 Up 36.4%
• Average Sales Price is $176,627, Up 5.9%
• Median Sales Price is $160,000, Up 10.3%
• Total Active Listings are 160, Down 43.1%

 

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

                                         Median Sales Price             Median Sales Price

                                                      April 2016                              April 2015

Black Forest                            $435,500                              $390,000                       

Briargate                                  $322,500                              $297,750       

Central                                     $189,000                              $180,000

East                                          $215,500                              $198,750

Fountain Valley:                      $227,250                              $206,000

Manitou Springs:                    $322,500                              $376,500

Marksheffel:                             $259,900                             $248,000

Northeast:                                $250,000                              $218,500

Northgate:                                $433,450                              $411,000           

Northwest:                               $330,000                              $317,000

Old Colorado City:                  $188,125                              $265,000

Powers:                                    $240,000                              $224,950

Southwest:                              $246,000                               $288,000

Tri-Lakes:                                $448,442                               $368,000

West:                                       $240,000                               $252,000

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

 

INVESTMENT HOME SALES ON THE RISE

Keeping Current Matters,  4.29.16

As I just mentioned, Investment Home Sales are increasing along with the increased rental rates all across the country.  Here is an infographic depicting this:

Some Highlights:

• 2015 marks the first year-over-year increase in investment home sales since 2011.
• 62% of all investment homes purchased were single-family homes.
• The South saw the highest percentage of investment home sales (39%) with the West coming in second (28%).

Being a landlord is not for everyone, but if this is something you have considered, now is the time to discuss the pros and cons.  As one with a lot of experience in this arena, I’d be delighted to share my insights with you.  Just give me a call and let’s discuss whether this is an option for your investment portfolio. 

 

APRIL ECONOMIC DASHBOARD

As a sponsor of the Southern Colorado Economic Forum, I receive these periodic updates from the UCCS College of Business.  It is my pleasure to share them with you and you can click here to see the charts in their entirety. 

Some things to note:

• Q4, 2015 real GDP (gross domestic product) was revised upwards again from 1.9% to 2.0% comparing to Q4 of 2014.  The increase was due to positive contributions in personal consumption, residential fixed investment and federal government spending.

 

• Consumer sentiment in February was 91.0.  Higher consumer confidence is fueling domestic growth and it is mostly due to job and modest wage gains as well as continued low interest rates. 

 

• El Paso County’s unemployment rate continues to fall and was 3.9% in February.

 

FOUR HOUSING PREDICTIONS FOR THE REST OF 2016

Realtor Mag, 4.25.16

Economists at Freddie Mac are remaining upbeat about the housing market’s outlook for the rest of the year despite recent data that showed a gloomier first quarter in economic growth than originally projected and have said in the April Outlook that housing will “maintain its momentum in 2016 and be an economic engine of growth”.

“We’ve revised down our forecast for economic growth to reflect the recent data for the first quarter, but our outlook for the balance of the year remains modestly optimistic for the economy,” say Sean Becketti, Freddie Mac’s chief economist.  “However, we maintain our positive view on housing, In fact, the declines in long-term interest rates that accompanied much of the recent news should increase mortgage market activity, particularly refinance.”

Here are their predictions:

 

• Employment:  The labor market is expected to stay strong.  The unemployment rate is projected to drop back below 5 percent for 2016 and 2017. 

 

• Mortgage originations:  Loan originations are estimated to rise by $50 billion in 2016.  This boost is a result of low mortgage rates that are fueling a refinancing boom.

 

• Mortgage rates:  Low mortgage rates are expected to stick around longer. 

 

• Housing prices:  Home prices will rise by 4.8 percent in 2016 and by another 3.5 percent in 2017, Freddie Mac researchers predict.  These rising home prices will lead more homeowners to see greater equity gains.

 

WHY AMERICANS REALLY BUY HOMES

Realtor Mag, 4.19.16

According to the “Homebuyer Insight Report” recently released by Bank of America, for more than half of Americans, the main reason to buy a home is simply because they want a place to call their own.  They value the emotional benefits of owning a home as much as financial ones.

The survey revealed the following top emotional triggers for buyers:

• Want a place to call their own:  52%
• Always something they wanted to do: 43%
• Want to put down roots: 31%
• A place to make memories: 28%

As for the most influential factors, the survey found Americans are motivated to buy a home for these reasons:

• Better than paying rent: 37%
• Saved enough money: 26%
• Have a stead job: 21%
• Good time to buy a home: 15%

Survey respondents also were asked to define home ownership.  Here’s what they said it means to them:

• Security: 60%
• Family: 58%
• Responsibility: 58%
• Happiness: 57%

 

SKY SOX TICKETS ARE YOURS FOR THE ASKING

It’s baseball time again and, as always, I have four first row seats right behind the home team dugout.  These are yours for the asking, but on a first-requested, first-served basis.  Just give me a call and I will be happy to reserve tickets for you for any home game of the season.  But better hurry as they tend to go quickly once the warmer weather is here and school is done for the year!

 

FEATURED LISTING

YOUR HOME CAN BE FEATURED HERE.  JUST GIVE ME A CALL AND LET’S DISCUSS THE POSSIBILITIES. 

I’VE SOLD ALL I’VE GOT, SO THERE’S EVEN MORE TIME TO DEVOTE TO GETTING YOURS SOLD.

 

April 18, 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.

NEW CITY LOGO TELLS THE WORLD WHAT WE ALREADY KNOW

Those of us who call Colorado Springs home are well aware of the enormous presence of the U.S. Olympics.  After all, we are home to the United States Olympic Committee (USOC), U.S. Paralympics, the Olympic Training Center, and serve as headquarters for 23 of the 47 Olympic National Governing Bodies.  And this year will see us breaking ground on a world-class U.S. Olympic Museum and Hall of Fame that is set to open in 2018.

Therefore, I find it quite fitting that the city is now promoting it’s U.S. Olympic connection by branding itself “Olympic City USA”.  You can see the new logo above, depicting our mountains in the Olympic colors. 

To quote Colorado Springs Mayor John Suthers, “This is an exciting opportunity to use our existing assets to define us on a world stage”.  I heartily concur and am always happy to share my enthusiasm and support for the city that I’ve lived and worked in residential real estate for 44 years this month. 

As I write that, it’s almost mind-boggling to me that I’ve been in Colorado Springs for that long.  The last 44 years here have afforded me the opportunity to live in one of our country’s most beautiful locales, while allowing me to make a living doing what I love.  Along the way, many of you have become long-term repeat clients and have become friends.  The fact that I now am not only working with you, but with your friends, co-workers, children and in some cases—grand-children—is testament to the fact that my special brand of customer service has been appreciated and reciprocated.  I can’t begin to express my appreciation for all of this but I just want you to know that it is not something I ever take for granted.  I thank you for allowing me to continue to be a part of your life.

 

COLORADO SPRINGS EXPERIENCING LONG-AWAITED ECONOMIC RECOVERY

The Gazette, 4.17.16

Yesterday’s GAZETTE headlined a story about the arrival of our city’s long-awaited economic recovery and it contained a lot of information that I feel deserves reiteration.  As I previously mentioned, I’ve lived here a long time and have thus seen the City go through both good and not-so-good times.  I’m happy to report that now is one of the best times.

There is a very low unemployment rate and jobs are being created faster than any time in the last 15 years.  As I’ve reported in the last few months, residential real estate is at an all-time fast pace.  Tourism is booming and hotels and restaurants are cropping up in all parts of the city.  With all of this comes increased sales tax revenue—so all in all it’s a sure sign of economic recovery for Colorado Springs.

To again quote Mayor Suthers, “There is a lot of enthusiasm out there and we are seeing some very positive signs.  While there is going to be downturn at some point, we are not seeing such enormous growth that I am concerned about a bubble.  It is all very healthy and has the appearance of being sustainable”.

All major indicators measuring the local economy point to it reaching levels from before the recession began in 2008, with some at the highest level since the end of the tech boom in late 2000 and early 2001.  We are now generating new jobs at a faster rate than the rest of the state and the rest of the nation for the first time since the recession. 

According to Tatiana Bailey, director of the Southern Colorado Economic Forum, “We are kind of in a boom. If you look at where we were 1 ½ to two years ago, so many of the indicators have turned around.  We were lagging the state and the nation.  We now have strong employment numbers with people re-entering the labor force, construction is going through the roof, and sales of luxury goods are really strong.” 

And like Mayor Suthers, Ms. Bailey believes that “With people starting to wonder when the bust will follow, it seems to me that growth is spread across so many industries that it is sustainable”.

Good news indeed.

If you know anyone who might be considering a move here, I would recommend you suggest they go to the GAZETTE’s website to read yesterday’s headline article in it’s entirety so they can see first hand why this might be an excellent decision.  And of course, when they are ready, please refer them to me for their residential real estate needs!

 

SPRING HOME BUYING IN 2016 ON TARGET TO BE THE BEST IN A DECADE

Keeping Current Matters, 4.6.16

Jonathan Smoke, chief economist at realtor.com stated several weeks ago that, “All indicators point to this spring being the busiest since 2006”.

Freddie Mac, in their March Housing Outlook Report is saying that 2016 will be the best YEAR that the real estate industry has seen in a decade:

“Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade.  Home sales, housing starts, and house prices will reach their highest level since 2006, according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”

Some of the key indicators that have given Freddie Mac such a positive position include:

• Historically low interest rates
• A resilient labor market
• An increase in household formations
• A projected increase in newly constructed homes

This information reinforces everything I’ve been telling you for months.  Just this past week I listed a home for $689,900 and less than 24 hours later I had multiple offers and the home sold.  It’s a crazy time for real estate—and the spring buying season is just getting under way.

If you’ve been sitting on the fence or waiting for increased equity in your present home before contemplating a move, NOW is the time.  Waiting any longer could cost you in terms of finding what you want, as well as in mortgage interest rates.

It’s time to look at your wants, needs and budget and make a plan for your residential real estate dreams.  That’s where I come in.  In today’s market, it’s more important than ever to have an experienced, professional real estate broker on your team.  You need to know in advance what you are looking for and need to be ready to make a decision in a much shorter period of time than in the past.  There are fewer available listings and it takes good negotiation skills to help you get to closing.

I am here to help in all these areas so give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let me help guide you through the process.  One more way my 44 years of local residential real estate experience can be of service for YOU.

 

AND THE MORTGAGE RATES JUST KEEP ON FALLING…

Daily real estate News, 4.15.16

Last week the 30-year fixed mortgage rate fell to its lowest average of the year—averaging 3.58 percent—according to Freddie Mac in its latest mortgage market survey.

According to Freddie Mac’s chief economist, Sean Becketti, “Demand for Treasuries remained high this (last) week, driving yields to their lowest point since February.  In response, the 30-year mortgage rates fell 1 basis point to 3.58 percent.  This rate represents yet another low for 2016 and the lowest mark since May 2013.”

Just another reason to quickly hop off the fence!

 

HOMEOWNERSHIP IS A GREAT INVESTMENT…INFOGRAPHIC

Keeping Current Matters, 4.1.16

 

SOME GOOD TIPS TO HELP BUYERS IN A “SELLERS MARKET”

RealtorMag, 4.8.16

• Be on call.  In order to succeed in today’s market, you must make house hunting a priority.  There is a shortage of available homes for sale and the good houses are getting picked up quickly.  You need to act fast to snag the one you want.

 

• Cast a wide net.  Search for homes outside prime locations or in areas that you might not have considered before if faced with limited or high-priced choices.  You need to consider what you might want or need to compromise on.  Sometimes properties sit longer than others because they might needs renovation or other work.  Oftentimes you might get these properties for less than expected and you can have the work done later—and to your specifications--with the money you save in purchasing the home.

 

• Bring the paperwork.  To have your offer taken seriously, it’s wise to have a pre-approval letter as well as proof of funds from the bank to show you have enough to cover the down payment.

 

• Limit the contingencies.  In a “sellers market”, buyers may need to drop some of the contingencies to get the house they want.  Sellers prefer the fewest number of hurdles to closing as possible so the fewer “what if’s” the better your chances of having your offer accepted.

 

• Don’t play hardball.  In a “typical” home-selling scenario, buyers make an offer below the seller’s asking price, and then negotiate upward from there.  But in a “seller’s market” often there is little to no room for price negotiations.  In fact, if there are multiple bids, you could end up paying well over the asking price.  So you need to decide exactly how high you would be willing to go.

 

 

​

 

 

 

 

 

April 4, 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.

MARCH 2016 WAS THE 20^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

It’s beginning to sound like a broken record (which, it literally IS), but I am happy to once again report that prices and sales are continuing their upward climb for the Pikes Peak Region in the Residential real estate Market.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 16.2% over March 2015 while Condo/Townhome sales are up 2.6% over 2015. Homes are selling, on average, at 99.5% of the list price and I believe all of these numbers would have even been higher if there had been more homes available for sale.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year.  However, new listings are up 10.3% year-over-year for Single Family/Patio Homes and up 15.9% for Condo/Patio Homes.

With spring buying season just getting underway, along with the continued increase in sales prices and low interest rates, I’m expecting to see more folks hopping off the fence and venturing into the market.  Homes that were at one time “underwater” are now presenting opportunities for owners to check out all available options once again.

According to Jonathan Smoke, realtor^®.com’s chief economist, “I would use the term ‘pent-up-demand’ liberally—we’re seeing it come through in the marketplace.  The people who didn’t buy last year were frustrated because they were outbid or couldn’t find a home that met their needs.  So they more or less took the holidays off, and are back with way more intensity.” 

He added that “the early readings on March inventory and activity on realtor^®.com indicate that early bird buyers are emerging in markets that typically have buyers sidelined with winter weather (like Colorado Springs)”. 

The good news is that inventory is picking up, due in part to situations I mentioned above.  It’s a small but much needed growth and should lead to a significant uptick in sales this year according to Smoke.

Once again, Colorado Springs is listed in the top 20 housing markets in America—at number 11—up from number 18 in February. The median age of our inventory in March was 44 days—down from 67 days in February—and that’s just another thing to add to the spring buying frenzy!

I am continuing to see a number of folks looking for investment properties to compensate for the stock market volatility that’s plagued us in recent months.  Rental prices are continuing to rise and that is making investment properties a good idea for those wanting to get into that niche of the housing market.  While that isn’t affecting the upper end of the market much, it is cutting in to the available properties for first-time buyers to some extent.

In general, there are still fewer homes available in most neighborhoods and most price ranges, with the current average days on the market a low 44, and those in the low and mid-range tend to go quickly.  These are the homes that are receiving competing bids, some over asking price. Making a quick decision is now the rule in order to secure the home you want.

It’s worth repeating one more time that it’s more important than ever to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present.

If you’re planning to sell to trade up or move to another neighborhood, another factor to consider is that with homes selling so quickly you need to have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

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

In comparing March 2016 to March 2015 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1,790, Up 10.3%
• Number of Sales are 1,172, Up 16.2%
• Average Sales Price is $268,010 Up 3.3%
• Median Sales Price is $239,500, Up 6.4%
• Total Active Listings are 1,941, Down 23.5%

                        Condo/Townhomes:

• New Listings are 204, Up 15.9%
• Number of Sales are 155 Up 2.6%
• Average Sales Price is $160,251, Up 4.6%
• Median Sales Price is $161,404, Up 12.9%
• Total Active Listings are 142, Down 45.8%

 

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

                                                Median Sales Price             Median Sales Price

                                                  March 2016                               March 2015

Black Forest                            $480,000                              $389,950                       

Briargate                                  $310,000                              $317,500          

Central                                     $200,000                              $163,000

East                                          $203,000                              $180,000

Fountain Valley:                      $218,500                              $189,900

Manitou Springs:                    $362,000                              $277,000

Marksheffel:                             $252,000                             $268,000

Northeast:                                $231,050                              $215,500

Northgate:                                $411,059                              $354,790        

Northwest:                               $365,000                              $335,000

Old Colorado City:                  $236,200                              $205,000

Powers:                                    $245,000                              $219,950

Southwest:                              $249,085                               $269,500

Tri-Lakes:                                 $461,725                              $420,000

West:                                        $234,900                              $214,650

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

 

COLORADO SPRINGS RENTS RISE FASTEST IN NATION

The Gazette, 4.2.16

Rental rates in Colorado Springs rose 11.4% in March compared to March 2015 according to a survey by Apartment List, a San Francisco-based rental service, putting us at the top of the survey of 100 cities. 

This didn’t come as a surprise to me as I’ve had difficulty finding rental places for clients who need temporary housing.  Most available units are requiring longer leases at increased rates compared to even seven or eight months ago.  And, as I mentioned earlier, this has been an impetus for many of my clients to consider rental properties as investments.

While we topped the list, it’s important to note that Colorado Springs still remains cheaper than many other cities to rent an apartment or home.  According to the survey, the median apartment rent of $1,010 a month for a two bedroom unit ranked 51^st in the nation. 

An improved economy, increased job opportunities and young people looking to rent for the first time are driving up prices, especially since there are fewer units available.

I’m certain you can guess my thoughts on this issue.  Home ownership is certainly something to consider, if possible, for many reasons. 

To begin with, you don’t have to deal with rents going up each year.  And when you add that to the fact that you are building equity with each mortgage payment, it becomes a no-brainer.  Low interest rates, along with new regulations that allow for lower down payments and other down payment alternatives are worth considering for first-time buyers. 

Why not give me a call today and let’s see if buying a home is a viable option for you or a family member.  It’s possible that reality is more plausible than you might think.

 

2016 PREDICTED TO BE HOUSING’S ‘GOLDEN YEAR’

RealtorMag 4.1.16

Low Mortgage Rates.  Improving Job Market.  Gradual Increase in Housing Supply.

These are the three reasons given by mortgage giant Freddie Mac officials to make the prediction that this year housing starts and home prices will reach their highest levels since 2006.

According to Freddie Mac’s monthly Outlook for March, we can “expect the 30-year mortgage rate to remain very attractive throughout the spring home-buying season, staying below 4 percent until the second half of the year.”

That said, there are still a few challenges for the housing market, particularly with wage growth and “if wages and incomes do not start rising, then rising interest rates, home prices and rents will squeeze households and ultimately slow housing markets,” Freddie Mac noted.

However, officials there remain upbeat and the Outlook noted that the “nation’s housing markets should sustain their momentum from 2015 into 2016 and 2017.” 

 

UPDATE:  DODD-FRANK ACT CONTINUES TO IMPACT MORTGAGE LENDING

Mortgage lending has changed in a number of ways since the implementation of the Dodd-Frank Act last October and other changes are due in the next few years.

At present, some lenders have been forced to eliminate some mortgage products due to lack of clarity around the enforcement the TRID “Know Before You Owe” integrated disclosure.

Each new regulation has added to the cost of the mortgage process while adding to processing times.  And, in January 2019 there will be additional changes, more than likely adding to the cost and time required for loan processing.

I’ve experienced the frustration of my clients when an “all cash” deal has trumped their offer because there are no “wait times” imposed by lenders and law.  This Act was meant to make things easier for the consumer and to make certain that they understood all costs and requirements prior to closing.  The intent was good—and still is—but it’s continuing to make the home buying process a bit more lengthy and confusing for some. 

It’s not going to get better I’m afraid, but lenders I work with are doing their best to make the best of the situation for all concerned.

 

 

 

 

 

 

 

                                                         

March 28, 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.

FEBRUARY LOCAL MARKET UPDATE AND MONTHLY INDICATORS CONTINUE TO PROVIDE MIXED BAG DUE TO SHORTAGE OF AVAILABLE LISTINGS

Pikes Peak REALTORS^® Services Corp.,

In the recently published February 2016 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year continued their significant downward trend for properties in both the single-family/patio homes and condo/townhomes categories. With that came a pending sales increase year-over-year of 58.3% for single-family/patio homes and 50.7% for condo/townhomes. 

The median sales price increase year-over-year in all properties was up 8.5%, which actually is a good sign that the housing market is continuing to stabilize.  If there were more listings, more people would be moving—either selling to trade up or buying for the first time.

I’m finding there are those who wish to move but are afraid to list their homes because if they sell quickly, which has been the case in recent months, they might not be able to find the home they are wanting to buy as quickly as they’d like. 

The shortage of available homes is continuing to affect the number of sales in communities all over the U.S.  However Colorado Springs, while experiencing the same type of listing shortage, is still experiencing a significant number of sales.  This bodes well for our community and is indicative of the increased job market and improved local economy.

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.

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

• Sold Listings for All Properties was up 23.1%
• Median Sales Price for All Properties was up 8.5%
• Active Listings on All Properties was down 51.3%.

If you have any questions concerning the report, please give me a call at 598.3200.

 

SPRING BUYING SEASON IS STARTING EARLY IN COLORADO SPRINGS, BUT SLOWER IN PARTS OF THE U.S.

The Wall Street Journal, 3.11.16, 3.22.16, Keeping Current Matters, 3.15.16, 3.24.16

While sales of previously owned homes was lower in a number of regions of the U.S. in February, Colorado Springs continued to see escalating sales as you just read.  Much of this nationally has to do with the shortage of homes for sale, but while we too have had a record low number of available listings, we’ve still had monthly sales increases for the past 19 months. 

Along with increased sales has come the frenzy that I’m starting to think is less the exception and more the norm at this point in time.  Buyers are outnumbering sellers and this is creating a shortfall of inventory that is driving up prices and continuing to bring multiple bids to the table. 

Lawrence Yun, chief economist for the NAR says, “Given that prices are rising, more people will be pushed to the borderline of conventional mortgage limits and may need a large down payment or a jumbo mortgage.”  Jumbo mortgages are those that have higher limits than conforming limits of $417,000 and up to $625,500 in some high-priced areas. 

As I wrote in the last edition, there are a number of ways to go with a jumbo loan, as with a conventional one, and depending on how long you expect to stay in a home can help determine whether to go with a fixed or adjustable rate loan.  And a number of lenders are providing longer lock-in rate periods for a slight premium.

In today’s housing market, having a knowledgeable, experienced real estate Broker on your side is especially important.  With so many available options and considerably less time to make an informed decision, it’s more essential than ever to have the aid of someone, like me, who not only has years of experience, but also keeps up with the ever-changing federal regulations and lending rules. 

I’ve also found in today’s multiple-offer market that it’s equally important to know how to make your first offer one that the seller cannot overlook.   There have been recent experiences where the offer my client has made is one of up to 12—and our offer was the one the seller accepted.  This comes from years of writing offers that make the most sense for both the buyer and seller.  I know how to negotiate an offer that stands out from the rest and today that’s a necessity.  While it may not be accepted every time, there’s a good chance we’re in the final two—and oftentimes have the winning offer. 

A use of an “Escalation Clause” can, in some cases, help.  This is one in which the offer purports to beat all other offers submitted by a certain deadline.  A proposed escalation clause might read as simply as “Purchase Price shall be $1,000 more than any other bona fide offer submitted to Seller on or before (a specified date)”.  A maximum price should most often be included in this type of offer. 

However, price is not always the only consideration in making offers, and the buyer who can submit an all-cash offer without any contingency on the sale of property is better to make that offer without an escalation clause. 

Complicated?  Yes.  That’s where I come in.  When you are working with me, there is never the need to feel you are “in over your head” with all the possible scenarios to consider and/or overcome.

Appraisals are another area causing concern in this market.  With low supply and home values increasing rapidly, it is difficult for appraisers to find adequate, comparable sales to defend the sales price when performing the appraisal for a lender. 

Just this last week I had two appraisals come in lower than the sales prices of homes for two of my buyers.  I knew the appraisals weren’t nearly as high as they should have been so I did my homework and found the most current comparables and brought them to the attention of the appraisers.  Due to my diligence, one of the appraised prices was changed upward and one of the sellers dropped their price so that a happy ending was had by all. 

That’s just another service I provide based on my investment banking background as well as my 43+ years in the real estate arena.  I seek the best financing available for my clients, based on their individual credit and financial information.  While many homes are beginning to be out of the “affordable range” for some, especially first time buyers, there are usually possibilities available for most potential buying scenarios.

If you are in the market to sell and trade up or buy for the first time or for investment purposes, please give me a call sooner than later and let’s come up with a strategy that could work for you in today’s market.  Interest rates are holding at historical lows and that can help offset the increase in home prices if you don’t wait too long. 

Call me at 598-3200 or email me at Harry@HarrySalzman.com and let’s get the conversation started.

 

IS NOW THE TIME TO BUY?

Reatlor.org, 3.15.16, keeping current matters, 3.14.16

I get asked this questions daily. The answer is most always dependent on both time and money, aside from any other individual situations.

As a seller, you will be most concerned about the “short term price”—where home values are headed over the next six months. 

Whereas, as either a first-time buyer or repeat buyer, you must not be concerned about only the price but also about the “long term cost” of the home.

Two of the major factors that influence the “cost” of a home are the home’s appreciation over time and the interest rate at which a buyer can borrow the funds necessary to purchase the home.  The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

To give as simple an answer as possible:

Corelogic’s latest Home Price Index indicates that prices are expected to rise by 5.5% by this time next year.

Freddie Mac’s most recent Economic Commentary & Predictions Table predicts that the 30-year-fixed mortgage rate will appreciate to 4.5% in that same time.

Here’s how it looks in graph form for a home selling at $250,000 today:

Another interesting tidbit to share is the result of the most recent quarterly “Housing Opportunities and Market Experience Survey” from realtor.org.

Highlights include:

• 75% of people believe now is a good time to buy a home.  44% believe that strongly.
• Not surprisingly, with home prices accelerating so quickly, those who are currently renting or living with someone else, those who are under 34 years of age, and those who live in urban areas are less confident now is a good time to buy.  However, even among those groups the majority feel now is a good time to buy a home.
• Four in five people who currently own a home, those over 65 years of age, those with incomes over $50,000 and those in the Midwest believe now is a good time to buy a home.
• More than one-third of buyers of all ages would prefer to live in a close-in suburb.  For those who are 55 to 64, rural settings are also attractive.
• Younger respondents and those who are renters and live with someone else are more likely than others to consider buying in an urban area.

All in all, it appears that the majority of folks feel like now is the time to buy.  If you’re one of them, call me and let’s get the ball rolling.  After all—as you’ve just seen—time is money and you don’t want to waste either one.

 

MARCH ECONOMIC DASHBOARD FROM SOUTHERN COLORADO ECONOMIC FORUM

Southern Colorado Economic Forum 3.23.16

As a sponsor of the Southern Colorado Economic Forum I receive their quarterly Economic Dashboard and am happy to share this information with you on a timely basis.  As you will see in the charts, there are statistics on both national and local levels for factors that affect economic stability.

These include labor force/employment, wages, education demographics, real estate tourism, military and other metrics.  For a look at the graphic depictions, please click here.