Real Estate Information

                                                            

January 25, 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.

COLORADO SPRINGS IS NUMBER SIX IN TOP TEN HOUSING MARKETS FOR 2016

Bloomberg New, 12.8.15

Rising home prices are not a problem in the “Bargain Belt”—parts of the South and Midwest where the job market gains have outpaced the rise in home prices, says Ralph McLaughlin, an economist for Trulia, an online residential real estate site for home buyers, sellers, renters and real estate professionals in the United States.

Here are the top ten, in reverse order, of McLaughlin’s take on the hottest housing markets for 2016 based on job growth, vacancies, good affordability, search data and presence of millenials:

     10.  Tacoma, WA

      9.   Las Vegas, NV

      8.   Riverside, CA

      7.   Columbia, SC

      6.   Colorado Springs, CO

      5.   San Antonio, TX

      4.   Baton Rouge, LA

      3.   Austin, TX

      2.   Charleston, SC

      1.   Grand Rapids, MI

Those of us who live here know this is a great place to live based on all of the above factors and so much more.  It’s always nice, though, to see that we are getting national exposure as a “hot” housing market.  Our continued median home price increases and low available listings are most definitely contributing to the “sellers” market we’ve been experiencing.  Hopefully, now that the holiday season is over and we prepare for the Spring selling period we will see more folks trading up or relocating to new neighborhoods and using their increased home equity to do so. 

 

LOCAL MARKET UPDATE AND MONTHLY INDICATORS CONTINUE TO SHINE

Pikes Peak REALTORS^® Services Corp.,

The recently published Monthly Indicators and Local Market Update for December 2015 for El Paso and Teller Counties gives you a complete report of what the local housing market is doing and breaks it down by neighborhood.

It provides 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 27.3%
• Median Sales Price for All Properties was up 7.4%
• Active Listings on All Properties was down 38.5%.

Again, you can see that while prices continue to rise, active listings are way down.  There’s not much I can do but warn you again that if you’ve even considered a new home, NOW is the time. 

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.

If you have any questions concerning the reports, please contact me.

 

VOLATILE STOCK MARKET HELPS KEEP MORTGAGE RATES LOW

While the month of January hasn’t been too good for the stock market, it has been good for folks who are still wanting to get in on the recent historically low mortgage interest rates.  Even though the Federal Reserve raised rates for the first time in many years in December, it hasn’t yet affected mortgage rates, most likely due to the volatility of the stock market and other economic indicators. 

This is great news for those who have been sitting on the fence or have considered purchasing residential real estate for investment purposes.  While home prices have been rising steadily, lower interest rates help make monthly payments more affordable for many.  And with rental rates continually on the rise, if you’ve been thinking of investment property, now is a good time. 

As I’ve said several times, being a landlord isn’t for everyone, but if you think it’s something you want to consider, please give me a call and let’s discuss the possibilities.

Also, if you are one of those “fence sitters”, NOW is the time to make your move.  Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if we can make your real estate dreams a reality.

 

HOUSING EXPECTATIONS FOR 2016

National Association of Realtors^®, 1.12.16

The Infographic from NAR pictured below shows their Housing Expectations for 2016.  As you can see, everything is on an upward trend, including interest rates, so again—advanced notice to the “fence sitters”.

Lawrence Yun, NAR Chief Economist, points to pent-up buyer demand, sustained job growth and improving inventory conditions as reasons for his expected gain (from 2015) in new and existing-home sales.

However, despite his forecasted increase in sales, Yun cites rising mortgage rates, home prices still outpacing wages and shaky global economic conditions as headwinds that will likely hold back a stronger pace of sales.

 

NEW HOMES MAY ADD ROOM FOR HOUSEMATES

The Wall Street Journal, 1.23.16

Last week was the home industry’s largest home-building trade show and one of the new models featured an unexpected design concept:  roommates.

In a nod to rising housing costs across the U.S., many buyers are looking for a home that can be used for non-traditional living arrangements to help ease families’ financial burdens.  I have also found this to be something some of my buyers are considering when looking to sell and trade up or buy for the first time along with their parents.

With affordability concerns, some folks are starting to look for second stories or basements that can house aging parents or recent college grads with shaky employment prospects. 

U.S. home prices have increased by 25% since the beginning of the recovery in 2011, according to the S&P/Case Shilling Home Price Index, while median incomes have hardly increased. And apartment rents have jumped by 20% since 2010, according to data tracker Reis, Inc., making it harder for folks to save for a down payment.

If you are looking for a multi-generational living environment, there are certainly homes that can be used or transformed to suite your needs and wants.  Just give me a call and let’s see what might be available for those purposes.

 

NO HOUSING BUBBLE IN SIGHT

RealtorMag,, 11.21.15

While we are nearing the 10-year anniversary of the 2006-2007 housing bubble, housing experts say that there are many reasons why Americans shouldn’t be concerned about a housing crisis repeat anytime soon. 

They site these six reasons to back them up:

1. Fixed-rate loans have become more common.  With historically low interest rates, many Americans have refinanced to a fixed-rate mortgage, so when rates begin to rise—which is likely to happen this year—there will not be as much shock with short-term Adjustable Rate Mortgages compared to the 2006-2009 era.  During that period, many people had their ARMs reset and then could no longer afford their payments, thus sending defaults skyrocketing.

 

2. Old distress is being flushed out through bank repossessions.  While bank repossessions have recently reached the highest levels in more than two years, the reason behind this has been attributed to banks who are flushing out old distress rather than adding more.

 

3. Foreclosures have fallen drastically.  Despite the rise in bank repossessions, the number of loans in foreclosure is 2.1 percent, the lowest level since 2007, according to the Mortgage Bankers Association.

 

4. First-time buyer programs are bringing new buyers into the market.  New programs that assist first-time buyers with a down payment are growing.  The FHA moved last year to reduce its annual mortgage insurance premiums by up to $900 a year—a move that has been predicted to help jump-start home sales by up to 5.6 million, the most since 2006.  And according to NAR, this could lure 140,000 new buyers to the market.

 

5. The economy is strengthening.  Over the past five years, the U.S. has added jobs at a steady rate, now replacing many of the jobs that had been lost during the recession.  The quality of jobs is improving as the economy strengthens.

 

6. New-home construction remains dismal.  The supply of existing home for sale is lower now than it was in 2000.  New single-family starts remain 60 percent below the peak in 2006 and are about 25 percent below the average for the past 15 years.  An oversupply of the homes on the market isn’t likely anytime soon.

 

SHOULD I BUY NOW OR WAIT UNTIL NEXT YEAR?

KeepingCurrentMatters, 1.22.16

A very good question that can be answered by the inforgraphic below:

Some Highlights:

The “Cost of Waiting to Buy” is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.

Freddie Mac predicts interest rates to rise to 4.7% by next year.

CoreLogic predicts home prices to appreciate by 5.3% over the next 12 months.

 

If you are ready and able to buy or trade up to your “dream home”, now is the time to find out if it’s possible.  Just give me a call and we can see if your wants and needs can fit into your budget.

 

HARRY’S JOKES OF THE DAY

Low Maintenance:

I just listed a low maintenance house.  In the past 25 years, there has been no maintenance.

 

Competition:

A small real estate broker was dismayed when a brand new corporate chain much like his own opened up next door and erected a huge sign which read BEST AGENTS. He was horrified when another competitor opened up on his right, and announced its arrival with an even larger sign, reading LOWEST COMMISSIONS. The small real estate broker panicked, until he got an idea. He put the biggest sign of all over his own brokerage-it read... MAIN ENTRANCE.

 

January 11, 2016

HARRY’S BI-WEEKLY UPDATE

                        A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.                    

DECEMBER 2015 WAS THE 17^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And the good news just keeps on coming for local Residential real estate Sales.  I am happy to 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 18.3% over the year 2014 while Condo/Townhome sales are up 29.6% over 2014. 

The number of home sales in 2015--13,250--was record-setting according to the Pikes Peak Association of REALORS^®, topping the annual best record of 13,124 homes sold ten years ago—in 2005.

The Monthly Summary shows that while total active listings continue their downward trend from the same month last year, new listings in December were up 14.2% in the Single Family/Patio Homes category and just down 2.0% for Condo/Townhomes for the same period.

These numbers continue to reflect strong consumer confidence and local job growth, along with the still historically low interest rates in effect for that period.  As you know, the Federal Reserve raised their rates at their December meeting but so far this has not greatly affected the housing market.  Future rate increases and time will tell how this plays out during 2016.

Increased new listings mean more choices for those looking to buy.  However, we have less inventory available than we’ve had in many years and this is feeding a buying frenzy of sorts for those currently in the market.  With fewer homes available in all price ranges, we are finding multiple bids, some even over asking price, and at present the average days on the market is a low 59. 

What this means is that it’s more important than ever to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary in today’s faster paced times in order to get the home you want.  With fewer listings and shorter days on the market for most homes, there’s no longer the luxury of “let me think about it for a couple of days”.

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 December 2015 PPAR report.  Please click here to view the detailed 20-page report, including charts. If you have any questions, as always, just give me a call.

In comparing December 2015 to December 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 772, Up 14.2%
• Number of Sales are 1105 Up 26.6%
• Average Sales Price is $266,553, Up 4.3%
• Median Sales Price is $239,900 Up 6.6%
• Total Active Listings are 2,133, Down 17.9%

                        Condo/Townhomes:

• New Listings are 96, Down 2.0%
• Number of Sales are 158, Up 26.4%
• Average Sales Price is $164,540 Down 7.0%
• Median Sales Price is $159,430, Up 6.3%
• Total Active Listings are 187, Down 38.3%

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

                                                Median Sales Price             Median Sales Price

                                                December 2015                      December 2014

Black Forest                            $417,000                              $405,000

Briargate                                  $285,000                              $290,000          

Central                                      $172,000                              $184,000

East                                          $207,450                              $187,000

Fountain Valley:                      $215,000                              $201,249

Manitou Springs:                    $307,000                              $227,500

Marksheffel:                             $252,500                             $255,000

Northeast:                                $235,500                              $207,750

Northgate:                                $275,003                              $352,706         

Northwest:                               $310,250                              $305,000

Old Colorado City:                  $223,000                              $207,500

Powers:                                    $229,000                              $228,750

Southwest:                              $249,000                              $230,000

Tri-Lakes:                                $394,000                              $348,000

West:                                        $239,950                              $179,750

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

 

LOCAL FORECLOSURES AT 14-YEAR LOW IN 2015

The Gazette, 1.6.16

The robust housing market, along with an improving economy and job market conditions, helped foreclosures in Colorado Springs fall to a 14-year low in 2015.  Last year’s foreclosure total dropped 19.5% from 2014.

Other cities in Colorado have experienced an even greater decline in foreclosures.  However, those cities, such as Denver, have seen home prices rise very quickly which can translate to more equity that can help those who lose a job or experience financial problems. 

The fact that we have had a low foreclosure rate, coupled with a slower increase in property values, actually is a good factor because homes in Colorado Springs are still affordable and areas such as Denver are starting to price out some looking for homes there. 

In fact, I’m finding that some buyers in our area are actually commuting to jobs in Castle Rock or Denver due to our cost of living, housing, and public education, among other reasons.

 

RENTAL MARKET RATES RISING FAST

The Wall Street Journal, 1.7.16

Rental rates for apartments increased faster last year than in any time since 2007, causing concern about affordability for renters.

Rising 4.6% in 2015, average rental rates nationally had their biggest gain since before the recession according to a report by Reis, Inc., a real-estate researcher.  The average apartment rent now is nearly $1,180, up from $1,125 a year ago. 

And a report from Dallas-based apartment research firm Axiometrics, Inc. showed that rents increased 4.7% in the fourth quarter of 2015 compared with the same quarter a year earlier.  This is the strongest year-end performance since 2005.

Rents have risen steadily for six consecutive years due in part to tough lending standards for homebuyers and also because of a shortage of apartments available for middle-income renters.  Homeownership in the third quarter 2015 was 63.7%, close to a 30-year low.

Higher rents will make it difficult for young people to save for down payments and will force them to rent for longer periods of time.  According to the National Association of REALTORS^®, the percentage of first time buyers is at its lowest level in three decades. 

The demand for investment property homes is increasing, especially with the volatility of the stock market and the rising median home prices.  If this is something you are considering, it’s a good time to check out your options.  Investment property and being a landlord is not for everyone, but if it’s something you have thought about, why not give me a call and let’s discuss whether this might be a good idea for you.

 

DELAYS IN CLOSINGS HURT HOME SALES SLIDE NATIONALLY

The Wall Street Journal, 12,23.16

What is “normal” nationally does not always translate to “normal” in our market, but I wanted to let you know how the “new” mortgage lending rules which took effect in October are affecting sales not only nationally but right here in our own backyard.

Nationally, home sales plummeted in November, caused by a dwindling supply and the new mortgage rules.  The NAR blamed the bulk of this decline on closing delays caused by the new rules implemented by the Consumer Financial Protection Bureau in October. 

The new rules, prompted by the 2010 Dodd-Frank financial law, are meant to help consumers better understand the terms of their mortgages before they sign.  I have explained this in detail in prior editions of this e-Newsletter.  The biggest problem I’ve seen so far has been due to the additional days added to the time it takes for a home to close. 

Whether you are buying or selling, let this be fair warning that what was “normal” in the past is no longer so—and getting to the closing table is going to take longer than it used to.  Unless it’s an all cash deal, you can expect delays because of these new regulations. 

 

FIVE real estate TRENDS THAT WILL DOMINATE 2016

RealtorMag, 12.22.2015

While 2015 may have marked the best year for housing since 2007, a recent real estate forecast by realtor.com^® indicates that the market will be even better this year.  The job market is a significant driver behind this rosy picture because increased and better employment will add to consumers’ wallets and allow them to purchase a first home or sell and trade up.

Highlights from this survey:

1. ‘Normal’ is coming.  Expect a healthy growth in home sales and prices—a slower pace than in 2015.  According to Jonathan Smoke, realtor.com^®’s chief economist, “This slowdown is not an indication of a problem—it’s just a return to normalcy.  We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” 

 

2. Generational buying trends shape up.  2016 may finally be the year that young adults show more presence on the housing market.  Millenials represented nearly 2 billion sales in 2015—one-third of homebuyers.  They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time homebuyers this year. 

 

Two other generations will also play a big part this year--financially recovering GenXers and older baby boomers who are entering retirement.  “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both buyers and sellers,” Smoke notes.  “GenXers are in their prime earning years and thus able to relocate to better neighborhoods for their families.  Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

 

3. New-home construction focuses more on affordability.  Recently builders have been faced with higher land costs and concerns about the demand of the entry-level market and have turned to constructing more higher-priced homes.  This caused new-home prices to rise significantly faster than existing-home prices.  In 2016, they will likely shift to more affordable products to cater to the entry-level market.  “We are already seeing a decline in new-home prices for new contracts signed last fall,” noted Smoke.  “In addition, credit access is improving enough to make the first-time buyer segment more attractive to builders.”

 

4. Higher mortgage rates.  Mortgage rates will likely be volatile in 2016.  The recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher this year than the historical lows they have been at in recent years.  The 30-year fixed rate mortgage will likely end 2016 about 60 basis points higher than today’s level.  “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says.  “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.”  Markets with the highest home prices will see the effects from the higher rates the most.

 

5. Rents to go up even higher.  As previously discussed, rental rates are skyrocketing and are only likely to go up in 2016.  “Rents are accelerating at a more rapid pace than home prices, which are moderating,” says Smoke.  “Because of this, it is more affordable to buy in more than three-quarters of the U.S.  However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings and lack of documentable stable income of the kinds necessary to qualify for a mortgage.”

 

I THOUGHT YOU MIGHT WANT TO KNOW…

Today I will be speaking before the Colorado Springs City Council.  I have been asked to address them about the “State of Housing” in our City and will be doing the same for the County Commissioners next Tuesday. 

I have gathered some very interesting material concerning what motivates folks to make a move, including cost of living, work/life balance and more.  One of the key points in this material is the fact that “access to affordable housing was the most import feature of a livable community”.  This was even more important than a potential job for those wanting to relocate. 

If you are interested, you can read several of the supporting materials below. You will no doubt find them as interesting as I did.  You can click on the titles listed to read the article

“Social Benefits of Homeownership”

“What Makes Us Happiest About The Places We Live”

“The World’s Smartest Cities”

Happy Reading…and again, I’d like to wish you a very Happy, Healthy and Prosperous 2016.

 

HARRY’S JOKE OF THE DAY

 

 

 

December 21, 2015

 

HARRY’S HOLIDAY GREETINGS

                                                                        

Thank you for allowing me to be a part of your 2015.  I hope you have found my Bi-Weekly Updates to be helpful and informative for all your Residential real estate needs.

Wishing you and yours a Healthy, Happy and Peaceful Holiday Season and year to come…

 

                                                

December 7, 2015

 

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.                     

 

LIKE A PHOENIX...COLORADO SPRINGS SURVIVES AND THRIVES

You’ve no doubt seen Colorado Springs in the news this past week for reasons that are beyond any rational comprehension.  Violence like that doesn’t really touch home until it really touches home.  “Black Friday” was indeed Black Friday, or as a nephew of the police officer killed said, it became “Blue Friday” for a number of reasons. 

For me personally, this past week has been both disturbing and enlightening at the same time. 

Disturbing, because of the senseless act of one individual who somehow felt the need to express his feelings in a totally abominable way.   And enlightening, because of the strength and resilience shown by not only our first responders, but by the entire community at large. 

I’m not here to politicize the situation—I’ll leave that to others who feel the necessity to do that—but I am here to say that, like the widow of our UCCS policeman who was killed in this unfortunate turn of events—I was overwhelmed not as much by sadness but by the abundance of kindness and community support shown in the wake of tragedy. 

Beginning with the Waldo Canyon fire and other disasters that enveloped our City in recent years, I’ve been acutely impressed by the way our community has responded to crisis when put to the test.  From the first responders and local and state elected officials to the proud citizens—I’ve seen an outpouring of compassion, assistance and fortitude that makes me proud to be a Coloradan, and most especially a resident of Colorado Springs.

I want to take a moment to remember the three Colorado Springs residents who gave their lives a little more than a week ago and to wish a speedy recovery to those still recuperating from their injuries. 

I’d also like to especially thank Governor John Hickenlooper and my good friends Mayor John Suthers and UCCS Chancellor Pamela Shockley-Zalabak for their unwavering strength, not only in this time of crisis but in all they do for our state and community in order to make it a great place to live and work.  They suffered along with all of us, yet were able to provide the leadership so very necessary when it was required.  They did us proud.

And so, while as a City we are still mourning, I’m feeling confident that the thing that will define Colorado Springs is not the tragedy that occurred, but the manner in which the entire community rose up to meet that tragedy.   

 

NOVEMBER 2015 IS THE 16^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And so it continues.  I am happy to report that things are continuing to look excellent 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 17.6% over the same period last year.  And Condo/Townhome sales are up 29.9% over the same period last year.

You will also see in the Monthly Summary that while total active listings still remain down from the same month last year, new listings in November were up 15.5% in the Single Family/Patio Homes category and up 0.8% for Condo/Townhomes for the same period.

These numbers continue to reflect strong consumer confidence and local job growth, along with the still historically low interest rates.  It looks like these rates will soon be on the rise and folks are taking notice and acting while there’s still time.

Increased new listings mean more choices for those looking to buy. However, I’ve seen quite a selling frenzy in the past week, along with multiple bids over listing price that make it difficult to compete. I presented an offer for over listing price that was passed over for one that was for listing price, but all cash and a very short closing time.

It’s more important than ever to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary at times in order to get the home you want. 

If you’ve been thinking about using the current equity available in your present home for a down payment on a new home, don’t wait any longer if you want to take advantage of the still low interest rates.  “Wait and see” is no longer an option in most cases.

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 November 2015 PPAR report.  Please click here to view the detailed 13-pages, including charts for November 2015. If you have any questions, as always, just give me a call.

In comparing November 2015 to November 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 904, Up 15.5%
• Number of Sales are 815, Up 4.2%
• Average Sales Price is $267,133, Up 8.8%
• Median Sales Price is $237,500, Up 9.6%
• Total Active Listings are 2,627, Down 16.2%

                        Condo/Townhomes:

• New Listings are 119, Up 0.8%%
• Number of Sales are 128, Up 4.9%
• Average Sales Price is $160,007 Up 2.5%
• Median Sales Price is $155,450, Up 14.1%
• Total Active Listings are 219, Down 36.7%

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

                                                Median Sales Price             Median Sales Price

                                                November 2015                      November 2014

Black Forest                            $344,000                              $408,688

Briargate                                  $314,136                              $279,500         

Central                                     $185,950                              $188,000

East                                          $205,500                              $180,000

Fountain Valley:                      $194,950                              $195,000

Manitou Springs:                    $266,750                              $350,000

Marksheffel:                             $260,000                             $222,500

Northeast:                                $237,500                             $225,000

Northgate:                                $389,000                             $364,658       

Northwest:                               $336,700                              $313,000

Old Colorado City:                  $237,500                             $194,850

Powers:                                    $229,550                             $214,950

Southwest:                               $251,000                             $260,750

Tri-Lakes:                                 $400,000                             $385,529

West:                                        $216,500                             $237,500

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

 

SOUTHERN COLORADO ECONOMIC FORUM’S QUARTERLY UPDATES & ESTIMATES

College of Business and Administration, UCCS, Southern Colorado Economic Forum, November 2015

The Third Quarter 2015 Update on the El Paso County Economy, including housing trends, was published last week and you can click here to read the full 10-page report.  Much of the section on Housing mirrors the PPAR report and includes:

• The single family permit activity continues its upward trend
• Rental rates continue to climb steeply and vacancy rates fall
• Active listings are down, average days on the market are down and median price is up
• Foreclosures are down by 23.0% year over year

Other sections of the report include:

• The Big Picture
• Employment
• Commercial real estate and Airport
• Sales Tax and Car Registration

Salzman real estate Services is proud to have been a supporter of the Southern Colorado Economic Forum since its inception in 1996 and I will continue to provide you with access to this report quarterly as soon as it is made available to me.

 

EL PASO JOB GROWTH IS STRONG & BUILDING PERMITS ARE UP

The Gazette, 12.2.15

According to data posted on the Colorado Department of Labor and Employment’s website, the second quarter 2015 saw continued job growth in El Paso County as employers in the area added jobs at the same rate as in the first quarter, which was the fastest growth rate since mid-2006. 

Along with that, and possibly in correlation to it, Colorado Springs homebuilders have had an increase of close to 5.5% in permits issued over last year at this time.  

All of this is great news for Colorado Springs.  New jobs are bringing lots of young talent to the city and new home permits are helping to keep home values at a more manageable price level.  A shortage of available homes was helping to drive up prices to a level that made it hard for some to afford new homes or purchase for the first-time.

An recent article in The Wall Street Journal indicated that while the housing market is on track to have its best year since 2007, the sales of existing homes is slowing as prices are rising.  This helps substantiate the fact that our current building surge is a very good sign indeed, while the new job creations will provide buyers for these homes. 

 

HOUSE HASN’T SOLD YET?  RECONSIDER THE LISTING PRICE

Keeping Current Matters, 11.15

The Residential real estate market is HOT.  As I mentioned earlier, bids are coming in faster than I can remember and oftentimes there are multiple bids and ones over the listing price.  What about your home?

In many instances, if your home hasn’t sold, it’s most likely the price.  If you haven’t received any offers, relook at the price.  Pricing your home even 10% above the market dramatically cuts the number of prospective buyers that will even look at your home.

This chart will give you an idea of how price affects the visibility of a listed home.

 

WAITING UNTIL AFTER THE HOLIDAYS TO SELL MIGHT NOT BE A GOOD IDEA

Keeping Current Matters, 11.15

Many homeowners wait until after the holidays to list their home and other take theirs off the market until the holidays are over.  Perhaps you might want to rethink this.  Here are six great reasons not to wait.

1. relocation buyers are out there.  Companies are not concerned about the holidays when it comes to a transfer and if buyers have kids they want to have them settled in a new school after the holiday recess.
2. Purchasers who are looking for a home during the holiday season are serious buyers who are ready to buy.
3. You can restrict the showing on your home to the times you want it shown.  You always remain in control.
4. There is less competition for you as a seller during the holiday season as there is less inventory available.
5. Homes show better when decorated for the holidays.
6. The supply of listings increases substantially after the holidays and new construction ramps up then, too.  This lessens the demand for your home.

If you’ve been waiting to list after the holidays I might add another advantage to listing now.  It most definitely looks like the Fed intends to raise interest rates at their meeting this month and an increase in mortgage interest rates will certainly hold back some potential buyers.

 

HARRY’S JOKE OF THE DAY

 

 

 

                                                            

November 23, 2015

 

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.

IT’S THE TIME OF YEAR TO GIVE SPECIAL THANKS…AND LET ME START WITH YOU

Thanksgiving has always been a favorite time of year for me, and not just for the great food, celebrations and advent of ski season.  It has been a time of reflection when I consider the abundant blessings in my life. 

This year has been even more special than usual, as it’s been filled with so many professional changes and rewards.  I sold my building of 38 years at 538 Garden of the Gods Rd last spring and am now associated with ERA Shields, a group of incredible real estate professionals that I am happy to now call my associates, as well as friends.  If you haven’t been to my new office, located at 5475 Tech Center Drive, Suite 300, I would love to have you stop in and say hello.

For my participation in local community service, I received the “Spirit of the Springs” award from ex-Mayor Steve Bach and recently received a “Reward of Excellence” from the Colorado Springs Regional Business Alliance.  It’s always been my belief that giving back to the community where I live and work is something I not only need to do, but also something I truly enjoy doing.

All of this has been made possible because of my association with my friends and clients and for that I am the most thankful.  The relationships I’ve made over my 43 years in the local real estate arena mean so much to me. 

That I am now working with the children and family members of past and current clients is so rewarding and I do not take that lightly.  It is my goal to continue earning the trust you all have placed in me by all the referrals and continued support in giving me the opportunity to serve all your Residential real estate needs.

Again this year let me start the holiday season by giving thanks to YOU.  May you and yours have a very Happy Thanksgiving.

 

COLORADO SPRINGS’ MEDIAN HOME PRICES CONTINUE UPWARD TREND

National Association of REALTORS^® 11.11.15

Home sales are up and supply is down and this has caused homes to steadily rise in most metro areas of the U.S.A.  According to recently published Median Sales Price of Existing Single-Family Home for Metropolitan Areas, Colorado Springs is right in the middle—a median price increase ranking of 5.0% vs. 5.5% nationally during the 3^rd quarter 2015. 

As most of you are aware, I publish these results each quarter as soon as they become available from the National Association of REALTORS^® (NAR) and there are 178 metropolitan statistical areas (MSAs) included in the survey, Colorado Springs among them.

While the last quarter’s local median sales price growth is a bit lower than nationally, I want to remind you that for the last two quarters we were considerably above the national average, and with a shortage of listings and our “selling season” winding down a bit, I was not surprised at this number.

This time last year I was concerned that Colorado Springs was not keeping up with the average of other surveyed metro areas, but that is no longer the case.  Our average median sales price for 3^rd quarter 2014 was $231,500 and as of the end of 3^rd quarter 2015 it is $243,100.  The national average median sales price was $229,000, up from $217,100, so while we were lower percentage-wise, our average median sales price is still 6.1% higher than the national number.

In general, the housing market had its best quarter in nearly a decade, according to Lawrence Yun, NAR chief economist.  “The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies,” he said.  “While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales.”  (Exactly why our slightly lower than average growth is GOOD news!)

Yun says sales had the potential to be even higher last quarter given the decline in mortgage rates and favorable economic conditions.  “Unfortunately, the lack of any meaningful gains in housing supply pushed prices in some areas above what some potential buyers—especially first-time buyers—are able to afford.”

NAR President Chris Polychron says the overall pool of potential buyers still outweighs what’s available for sale in several markets this fall.  REALTORS^® are still reporting that many homes are going under contract more quickly than what’s typical this time of year,” he said.  “While this is certainly beneficial to homeowners looking to sell, some are still reluctant to list out of concerns they’ll have limited time and choices during their own home search.”

With rising home prices, despite an increase in the national family median income, comes a slightly decreased affordability in the 3^rd quarter compared to the 3^rd quarter last year.  To purchase a single-family home at the national median price, a buyer making a 5% down payment would need an income of $50,324, a 10% down payment would require an income of $47,675 and $42,378 would be needed for a 20% down payment.

To view the entire list of 178 metro areas, please click here.

Bottom Line:  This is good, albeit mixed, news for local homeowners.  More than likely the equity in your present home has increased, giving you the ability to sell and trade up or relocate to another neighborhood.  And while the new home you might be considering has also increased in price, interest rates are still historically low.  As you will read later on, it’s looking like the possibility of the Fed raising rates at their December meeting is no longer “just talk”.  This possible rate increase, the fast pace of homes getting to closing and home affordability for some is making for “interesting” times in the residential real estate arena.

As I’ve mentioned in the past, there are many new regulations and requirements available, especially for first time buyers.  This is a good thing, and one that can really help young people start earning equity for themselves rather than for the person from whom they are renting.  Potential first-time buyers should be looking at these new options sooner than later with the advent of rising mortgage rates. 

And, if you’ve been sitting on the fence, I’d suggest you at least consider getting off and quickly check out your options.  Prices don’t appear to be going down and interest rates will be on the upswing in the near future. 

For those looking for investment purposes, the continual rising rental rates are providing a good reason to think about that at present.  I wouldn’t wait a lot longer, though, because there are not as many “bargains” as in the past and home prices are escalating also.

I am available by phone at 598.3200 or email at Harry@HarrySalzman.com and would be happy to sit down and help you determine how to best handle your needs, wants and budget to make purchasing residential real estate a reality for you.

 

LOCAL MARKET UPDATE AND MONTHLY INDICATORS CONTINUE TO SHINE

Pikes Peak REALTORS^® Services Corp.,

The recently published Monthly Indicators and Local Market Update for El Paso and Teller Counties gives you a complete report of what the local housing market is doing and breaks it down by neighborhood.

It provides greater detail than the monthly “PPAR Monthly Statistics” that I shared in the last eNewsletter.

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

• Sold Listings for All Properties was up 11.0%
• Median Sales Price for All Properties was up 4.5%
• Active Listings on All Properties was down 37.4%.

Again, you can see that while prices continue to rise, available listings are way down.  There’s not much I can do but warn you again that if you’ve even “considered” a new home, NOW is the time. 

Enough said.

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.

If you have any questions concerning the report, please contact me.

 

COLORADO SPRINGS RANKED AMONG TOP 10 CITIES IN WHICH TO OWN A HOME

The Gazette, 11.21.15,

A survey conducted this summer confirmed what most of us residents already know—Colorado Springs is one of the best places to own a home.

The home repair and renovations services website Porch.com and the national brokerage firm Redfin conducted the survey which was based on responses from close to 10,000 homeowners nationwide and results indicated that Colorado Springs finished eighth among 67 cities.

Ratings were based on weather, the economy, education, commutes, safety and taxes, among other quality-of-life factors.  Our city’s ranking was helped by the strong marks it received for climate, healthiness and safety.  Denver finished first in the survey, while Memphis, Tennessee ranked last.

Good new for Colorado in general—and another feather in our local hat.

 

HOME SALES OUTLOOK AND relocation TRENDS WEBINAR HAD POINTS WORTH SHARING

Last Thursday I attending a “Webinar” presentation conducted by Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research at the NAR.  If you recognize his name, it’s because I quote Yun quite often in my eNewsletters and have high regard for his extensive knowledge of the residential real estate market and national economy in general.

Here are some things I found memorable and wanted to share from the hour long Webinar that was given to Worldwide ERC members, of which I am one.

• People under 35 years old have a historically low homeownership rate
• Difficulty Facing First-time Buyers
• Student loan debt is 41% and the typical amount is $25,000—even among successful first-time buyers
• There is no affordable inventory—for 51% of these people, the hardest task is finding the right property
• They face competition from vacation buyers and investors who are buying similar priced/sized homes and paying all cash
• Student Loan debt is approaching $1.4 Trillion
• H.O.M.E. SURVEY (Housing Opportunity and Market Experience) results:

 

• Desire to own remains strong and is strengthening
• 87% of Americans believe homeownership is part of their personal American Dream
• 91% of 18-24 year olds believe this to be true
• There are psychological reasons for this, but also financial ones
• Americans want to own a place to raise a family and own a place of their own, but also a nest egg for retirement
• Recent buyers bought a home not only to start a family but also because owning is cheaper than renting
• 83% of Americans believe buying is a good financial decision

 

• Homeownership rates will fall further but home sales will rise further

AND… WATCH FOR THIS FOLKS….YUN STATED…

• “Fed Rate Hike in December

then again in March

then again in August

then again in…..”

• Rents are rising at a 7-year high and Rental vacancies are at a 30-year low
• Why would we expect Home Sales to rise?

 

• Rising Mortgage Rates—Not Good for Sales
• Too fast rising rates—Not Good for Sales
• Housing Equity for Pent-up Sellers—GOOD for Sales
• Return Boomerang Buyers—GOOD for Sales
• Steadily increased supply—GOOD for Sales, and
• Job  Creation—SUPER GOOD for Sales

Click here to see Yun’s concluding charts -- the Economic Forecast and Housing Forecast for 2016.

Good information from a great economist.  And speaking of that, I thought I’d put a face to the name.  Here’s a photo of me with Dr. Yun taken at a PPAR reception several years ago.  A little grainy, but you get the idea!

THE CHANGING FACE OF THE AMERICAN HOMEOWNER

RisMedia’s housecall, 11.11.15

One last thing you will find interesting is this “Infographic” on the Changing Face of the American Homeowner. 

Julián Castro, Secretary of the U.S. Department of Housing and Urban Development, at a recent speech during the 2015 convention of the Mortgage Bankers Association, quoted President Lyndon Johnson.  He stated that “ President Johnson once said that owning a home is more than just a cherished dream:  It represents achievement, something to be proud of—a place where a person can live with joy and pride, pleasure and dignity.”

As the homeownership rate dipped to a 50-year low mark in the second quarter of this year, homeownership “magic” feels to some like a cruel trick Castro said.  However, he managed to put a positive spin on this in saying, “A few years ago, we faced the greatest housing test of our lifetimes, but we made it through.  Not only are we still standing, we’re prospering and the economy is growing stronger.”

I thought you would enjoy seeing the Inforgraphic from LawnStarter which depicts homeownership data based on race, ethnicity, income, age and geography.  Click here for a look.

Any questions? You know where to find me!

 

WHAT EVERY SELLER SHOULD KNOW ABOUT COMPS

Rismedia 10.19.15

When you get ready to list your home, comps—or the most recent comparable sales—give real estate professionals and appraisers the information they need to price a home a “fair market value”.  While this is “business as usual” for those folks, it’s not as easy for sellers to understand the various tangibles and intangibles that are considerations in making the “listing price” decision.

This is evident from the gap between what homeowners “believe” their home is worth and what an appraiser’s opinion might be.  According to a recent Quicken Loans Home Price Perception Index report, homeowner estimates averaged 2 percent higher than those of appraisers—which is “a considerable margin in markets with ballooning home values’, says Quicken Loans Chief Economist Bob Walters.

“It may not seem significant…but it could make a huge difference in metro areas with higher average home values”, Walters explained.

However, this is not always the case, because in a market that is going up, there isn’t that much of a difference with seller opinions.  If the seller has the time, the market is moving in the direction they desire.  It is harder with sellers who are behind the market—the market moves, but they always think the market will be better tomorrow and it’s too early for them to sell now.

We all think our homes are worth “x” amount and oftentimes strongly disagree with the comps and appraised value.  In cases like this, it’s best to defer to your knowledgeable real estate professional who isn’t emotionally attached to your home and can give an objective opinion based on actual facts.

Some things taken into consideration when arriving at a listing price may include location, age, lot size, energy efficiency, square footage, number of bedrooms and bathrooms, and other “hidden gems” that give the property a “WOW’ factor that might increase the listing price. 

Sellers should bear in mind comparable data reflect the activities of both buyers and sellers, no matter which the market currently favors.  As Warren Buffet summed it up:

“Price is what you pay.  Value is what you get.”

 

HARRY’S JOKES OF THE DAY

                 

 

FEATURED LISTING

 

WOULDN’T YOU LIKE YOUR HOME TO BE THE ONE FEATURED HERE? 

 

Just give me a call and let’s see what we can do to help you Sell and Trade Up before the interest rates start their upward climb.

 

                                              

October 13, 2015

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.

COLORADO SPRINGS REGIONAL BUSINESS ALLIANCE PRESENTED ME WITH A COMMUNITY SUPPORT “AWARD FOR EXCELLENCE”

Most of you know that a word I often use is “WOW” and Saturday night was a VERY big “WOW” for me.

At the Annual Colorado Springs Business Alliance’s Business and Industry Awards Dinner at The Broadmoor, I was totally surprised and overwhelmed when CEO Dirk Draper called me onto the stage and presented me with this award.

Having lived in Colorado Springs since 1972, I have always made it a priority to volunteer my time in serving the City of Colorado Springs, civically and in the corporate and non-profit sector.  This is something I believe important for any successful citizen.  Colorado Springs is my home, the place where I earn a living and the place where I take great pleasure in helping folks to relocate.  As I tell everyone I meet all over the country—this is the place where “America the Beautiful” was written and there’s a reason for that. 

I do what I do because it is my sincere belief that the only way to show my appreciation is to give back.  I am only one of many in this community who do the same—and we all do it with the hope that we are building a better future for the town that has given us so much.

We do what we do for the sake of doing it, but I found out Saturday evening just how gratifying it is to also get public recognition for it. 

I want to take a moment to thank the RBA, but even more I’d like to thank all of you, because without your confidence in me as your REALTOR^® I would never have been in a position to accept this award.

Please excuse this bit of self-serving promotion, but of all the awards I’ve received over the years, this one is special due to its special significance to my life.

 Again…I thank you all.

 

AND SPEAKING OF “WOW”…

When is the last time YOU said “WOW” and really meant it?  Those of you who have been house hunting with me use it often and with good reason.  I do the homework to make certain that I can find the home that fits not only your needs and wants, but your budgetary concerns as well.

If you or anyone you know is in the Residential real estate market, why not find your own “WOW” by giving me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s discuss how we can make that happen.

 

RESIDENTIAL real estate SALES INCREASE FOR 15^TH STRAIGHT MONTH

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

I am thrilled to report that things are continuing to look excellent 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 are up 18.8% over the same period last year.  And Condo/Townhome sales are up 32.4% over the same period last year.  This is especially significant because we are approaching the time of year that home sales tend to slow down due to the holiday season.

While total active listings still remain down from the same period last year, new listings in October were up slightly in the Single Family/Patio Homes category and up 24.1% in the Condo/Townhome category in year over year comparison.

These numbers continue to reflect strong consumer confidence and local job growth.  Many people are taking advantage of increased home equity in order to sell and trade up while getting still historically low interest rates.

Increased new listings mean more choices for those looking to buy, but with homes selling quickly it’s important to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary at times in order to get the home you want. 

Here are some highlights from the October 2015 PPAR report.    You will see below that I have changed the comparison on the Monthly Sales Analysis to better help you see the year-over-year increase in Median Sales Prices.  This really illustrates how the Pikes Peak Region has done during the Housing Recovery.  Please click here to view the detailed 13-pages, including charts for October 2015. If you have any questions, as always, I’m just a phone call away at 598.3200.

In comparing October 2015 to October 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1197, Up 0.8%
• Number of Sales are 1,107, Up 13.9%
• Average Sales Price is $263,584, Up 2.7%
• Median Sales Price is $234,900, Up 4.4%
• Total Active Listings are 2,936, Down 16.1%

                        Condo/Townhomes:

• New Listings are 180 Up 24.1%
• Number of Sales are 166, Up 23.9%
• Average Sales Price is $169,350, Up 4.8%
• Median Sales Price is $155,000, Up 5.4%
• Total Active Listings are 253, Down 34.5%

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

Comparing Year-Over-Year Median Sales Prices

                                                Median Sales Price             Median Sales Price

                                                October 2015                                    October 2014

Black Forest                             $423,500                              $393,500

Briargate                                   $292,750                              $272,750         

Central                                      $204,150                              $176,500

East                                           $187,500                              $175,250

Fountain Valley:                       $199,900                              $190,950

Manitou Springs:                     $295,000                              $275,250

Marksheffel:                              $264,500                             $258,000

Northeast:                                 $233,000                             $220,000

Northgate:                                $398,450                              $350,000         

Northwest:                                $334,950                              $307,250

Old Colorado City:                   $242,000                             $174,450

Powers:                                     $230,000                             $222,000

Southwest:                                $276,000                             $240,500

Tri-Lakes:                                  $430,609                             $349,625

West:                                         $272,500                             $242,500

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

 

ON VETERAN’S DAY…IT’S TIME FOR THANKS

I’ve always been so “Proud to be an American” as the song goes and with that I am aware of the many sacrifices that have been made in the past and continue to be made each and every day to ensure that we all can live in peace in the greatest country in the world. 

With Veteran’s Day this week I especially want to give a shout out to all who have served and those currently serving in our Armed Forces. 

Living in a city that has so much military presence and having worked with so many of these families in relocation, I am acutely aware of the hardships and personal sacrifices these folks make.  We all owe them a tremendous debt of gratitude, on Veterans Day and every day.

THANK YOU VETERANS -- ONE AND ALL.

 

FEDERAL RESERVE KEEPS SENDING MIXED MESSAGES

                           

I happened to see this illustration in The New York Times Sunday magazine a couple of weeks ago and thought it actually more “right on” than humorous and wanted to share it with you.

It’s been more than a year since I’ve been telling you that the historically low interest rates are going to rise and I’m still confident that is going to happen…I just no longer can begin to predict “when”.

Janet Yellen, Federal Reserve Chair, said this week that an interest rate hike in December would be a “live possibility” if the economy stays on track.  She has said that the U.S. economy is “performing well” at the moment, with solid growth in domestic spending.  However, she stressed that no decision has been made yet and a move in December will depend on how the economy performs up until that time. 

What is the bottom line here?  The thing I know about interest rates is that I don’t know when they will rise.  But what I DO know is that when the do, it will be the beginning of the end of historically low mortgage loans.  Will they go right back to 10 or 12 percent?  Absolutely not in the foreseeable future.  But even moving up a percentage point or two will make a difference in monthly payments and also affect some people’s ability to qualify for a mortgage. 

This is another “heads up” to those who have been sitting on the fence.  If you’ve even considered a move or buying for the first time, now is the time to consider all your options.  Just give me a call and let’s see if it’s a possibility at present.   

 

U.S. HOME SALES HEADED TO BEST YEAR SINCE 2007 BUT FIRST-TIME HOME BUYS ARE NEAR 1987 LEVEL

The Wall Street Journal, 10.23.15

September was a big month for home sales in the U.S. with existing-home sales climbing 4.7% to a seasonally adjusted 5.5 million--8.8% above a year ago at this time.  This puts the market on pace for its best year since before the recession.

Lawrence Yun, chief economist for the NAR, has said that better job growth, continued low mortgage rates and pent up demand are fueling this activity.  Home prices are rising much faster than income, though, and this is creating a problem for young buyers trying to save for a down payment. 

Prices have been driven up by an increase of college-educated professionals and a lack of new construction nationally.  The combination of rising prices and affordability constraints is beginning to weight on the market. 

Listings remain a problem and Yun said,  “Come spring of next year, based on the current trend, we find we could be facing really tight inventory once the spring buying season returns, unless home builders really ramp up production.”

In conjunction with this, first time home buys fell to 32% of all purchasers in 2015 from 33% last year, the third straight annual decline and the lowest percentage since 1987.  According to economists, the historically low share of younger buyers could pose long-term challenges.  Without these buyers, current owners have difficulty trading up or selling their homes when they retire. 

Most first time buyers have said their biggest challenge beside saving for a down payment was the money owed on student loans.  And with rental rates increasing steadily, it’s really tough for them to put money aside.  The new down payment and loan qualification regulations are helping some of these first timers but others will just have to wait. 

So…more mixed news…home sales are up, but along with them are higher prices and decreased affordability.  Again…the time to Buy is NOW.

 

HARRY’S JOKES OF THE DAY ( courtesy of the Internet and not such a joke when you think about it!)

 

 

October 26, 2015

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.                             

SOMETHING TO SHARE FROM MY BOSTON relocation CONFERENCE

When the last issue was being published I had just returned from the relocation Directors Council (RDC) and Worldwide ERC Symposium in Boston.  I would like to share an issue that we relocation professionals talk about each and every year.  It’s importance to you as a buyer or seller cannot be overemphasized. 

As many of you know, I am a relocation specialist and “relocation” can mean anything from relocating around the world to simply around the block.  There are always many things to consider when making a move, and more especially when it involves moving to a new city or country.  At this conference I have the pleasure of meeting with various people who are involved in residential relocation on a daily basis—the human resources people of national and international companies, relocation real estate professionals, lenders, moving companies, temporary housing specialists and many others who are crucial in helping folks make a move.  This helps me know who, like me, is at the top of their field so that I can recommend them to my clients. 

It was noted at one of my meetings that the most recent Transfer Volume and Cost Survey of Worldwide ERC reported that companies relocating employees saw a four percent increase in transfer volume among current employees and a seven percent increase among new hires in 2014 over 2013.  The survey also indicated that about 80 percent of current employee relocations in the U.S. are interstate moves vs. intrastate moves and that since 2012 there has been an employee reluctance to relocate. 

Some of the reasons for that are the short time frame given to accept the offer and short time to relocate.  That’s where relocation experts provide the greatest help.  We can provide information that can help an employee make a relocation decision in a short time period based on answers to questions concerning the new city, neighborhood demographics, housing possibilities and more.

If someone is moving to Colorado Springs from elsewhere and needs to sell their current home, I have a built-in network of relocation real estate brokers who I can recommend, resting assured they will do a good job for my clients on that end. This also works in reverse, as oftentimes I have local folks who are being transferred and don’t know where to start in looking for a new home in a new city.  I can provide assistance simply by giving referrals to relocation specialists in other cities who I know will get the job done right. 

relocation is About So Much More than real estate

It’s important for anyone planning a move to work with a Realtor such as I who can understand the “little things” that are not so little in the eyes of the ones making the move. It’s important for those of us involved in relocation to understand not only the culture of the company if the move is for business, but also to understand the family dynamics involved.  Moving to a new neighborhood can be traumatic for ALL family members, and especially children who may be transferring to a new school and want kids the same age living in the neighborhood.   

Lifestyle preferences, such as proximity to shopping, restaurants, and sports venues are other considerations that can be important to those making a move.

Understanding the demographics of all local neighborhoods is crucial to making certain that the needs and desires of the entire family are met.  This may sound like a given, but oftentimes the adult family members hear from their well meaning co-workers-to-be and friends that “such and such” a neighborhood is fabulous—and it may well be.  But if it is comprised of mostly “empty nesters” or “young singles”, it probably is not the best place for the young members of the family to find friends and schoolmates their age. 

Why do I mention this?  For the same reason that we keep discussing this at our meetings. It’s a reminder that no matter where you might be moving, the importance of working with a knowledgeable real estate Professional who understands the ins and outs of relocating people shouldn’t be overlooked —be it for a single person making a move to another city or a family moving locally to a new neighborhood.  Each and every move is based on individual preferences, wants and needs and someone like myself can make certain that it’s as stress-free as possible for all those involved. 

After discussions with my clients concerning their particular lifestyle and professional needs I can then begin to piece together what will be a master plan for that situation and begin the search for the best neighborhood and home for that criteria.  After all, with more than 43 years in the real estate arena, I’ve proven time and again that my particular brand of customer service is essential in easing the road to closing.

If you, or any co-worker or family member are thinking of making a move—locally or out of the area—please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let me do what I do best—work to help relocate you or them to the “best fit” for all concerned.

 

LOCAL MONTHLY INDICATORS FOR SEPTEMBER PROVIDE GOOD NEWS ONCE AGAIN

Piles Peak REALTORS Services Corp.  Current as of October 12, 2015

It’s always nice to publish good news and lately the Residential real estate news for El Paso and Teller Counties has been excellent.  As promised, I will publish these Monthly Indicators when they are available to me. 

The September 2015 “Activity Snapshot” indicates the one-year change:

• Sold listings for All Properties were up 16.9%
• Median Sales Price for All Properties was up 5.5%
• Active Listings in All Properties was down 30.0%

You will see all the activity presented in easy to read charts by clicking here.  This is such good news both for present homeowners and those either looking to sell and trade up or buy for the first time. 

Interest rates are remaining at historic lows for the present time and the increase in home prices is allowing those who were “underwater” with their mortgages to finally have the equity to pursue avenues that were unavailable to them before. 

And, with the rental market exploding, those who have considered purchasing real estate for investment purposes are finding that now is a great time to proceed. 

If you have any questions about this report or need help with any real estate concerns, please give me a call.

 

FANNIE MAE TO EASE THE LOAN PROCESS FOR POTENTIAL BORROWERS

Remember when you had to provide a pay stub to your mortgage lender along with your application?  Well, those days will soon be gone once the changes announced by Fannie Mae catch on.

Lenders will be allowed to use employment and income information from a database maintained by credit bureau Equifax to verify borrowers’ ability to handle a loan, rather than relying on the traditional documentation process of collection physical copies of paystubs and tax data.  This should make the mortgage process easier for both borrowers and lenders.

Fannie has also made other changes that could broaden mortgage access for some borrowers.  The mortgage giant will ease the lender process for granting loans to borrowers who don’t have a credit score which is a key issue for certain minority groups that are less likely to have traditional credit histories.  Fannie will also start requiring lenders to begin collecting “trended” credit data from Equifax and TransUnion, which includes longer-term borrower credit histories, starting in mid-2016.

Fannie Mae and Freddie Mac don’t make loans—they buy them from lenders and wrap them into securities and provide guarantees to make lenders whole if the loans default.  Because of this, since the financial crisis mortgage lenders have relied on government-backed loans, making Fannie and Freddie’s requirements especially important in deciding what borrowers are able to get a mortgage.  This has caused some borrowers to have a harder time obtaining a loan.

New programs rolled out in August let lenders count income from non-borrowers within a household, such as extended family members, toward qualifying for a loan.  Also, for more than a year, industry groups have pushed for Fannie and Freddie to allow the lenders to use alternative credit-score models that take into account utility or rent payments. Fannie Mae officials recently announced that in 2016 they would begin to allow lenders to evaluate borrowers without a score provided by an automated process.  Borrowers that have a traditional scored calculated by Fair Isaac will still need to meet the 620 minimum on a scale of 300 to 850.

Fannie isn’t yet saying what the trended credit data will be used for now; however, it will let Fannie see if borrowers, for example, are paying off their credit card bill every month instead making a minimum payment.  In the future, a borrower making the full payment could be treated as a safer bet and could provide better rates for those folks.

Look for more information coming in the next few months, but everything I’ve read seems to indicate that Fannie Mae is looking at various options to help those with no or poor credit, or without personal down payment ability to still be able to qualify for a home mortgage.  This is great news for first time buyers or those who lost homes due to the housing or other crisis.  I’ll keep you posted. 

 

5 TOP MOTIVATORS FOR BUYING NOW

REALTOR Mag, 10.1.15

A survey taken in June and July through the BDX Home Shopper Insights Panel  identified the top reasons that trigger buyers to start thinking about a new home:

1. I’m tired of my house.  This was the number one reason.  Homeowners have been in their homes longer than in the past, some due to “underwater” mortgages. With a four-year price appreciation and confidence in the market, they are ready to move.
2. Interest rate are attractive.  With interest rates continuing at historic lows, many who were stuck with higher rate mortgages due to “underwater” situations can now move and quite possibly spend less on a monthly payment, or can certainly buy more for the same money.
3. Home prices are favorable.  While the price motivation is decreasing in the last few years, it still remains one of the top triggers.  Home prices today, while rising, are still about 20 percent lower than the peak at the height of the housing bubble.
4. “I’ve got more money to spend.”  Twenty-four percent of active homebuyers say an increase in income is their primary trigger for buying a home now.   Several years post-recession, more households are financially better off.  Of the 25-to-34-year-olds surveyed, having more money was cited as their No.1 motivator in buying. 
5. A change in family circumstance.  With births rising last year and expecting to rise again this year, families are expanding and 18 percent of those surveyed said that a change in family circumstance or composition was their main reason for buying.

So there you have it.  No matter what YOUR motivation might be for buying a new home, I’m here to help you in any way I can.  With so many new regulations and qualifications, there are plenty of ways to help all who are looking to find a home.  Give me a call and let’s see if we can make all this good news work for you and your family. 

 

HARRY’S JOKES 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!

 

Ten Commandments

A real-estate agent, had difficulty getting a listing from a customer whose theory was that "there is no substitute for experience."

After she asked him a third time how many years he had been in the business, he told her: "Madam, there is a little-known historical fact that Moses brought three tablets down from the mountain--two were the Ten Commandments and the other was my real-estate license!" He got the listing!

 

And, one that’s probably more true than funny….

 

                       

October 13, 2015

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.

                                     

 INTERNATIONAL relocation CONFERENCE WAS QUITE EDUCATIONAL

As many of you know, I spent last week in Boston attending the semi-annual Worldwide ERC Global Workforce Symposium.  Once again, I was the only Residential Realtor from Colorado Springs in attendance.  I attend these conferences in order to keep current on all the nuances involved in helping to make relocation as stress-free as possible for my clients. 

Meeting with HR Directors of International and U.S. companies and with representatives of actual movers, banks, and other entities who are involved with relocating folks from all over the world as well as simply around the block, helps me provide my clients with the best services available.

I also participate in sessions of the relocation Directors Council (RDC), an organization of which I am a Past President and Life Member. The organization is composed of 250 relocation Directors and Executives, many of who are Certified Relocation Professionals as well as Global Mobility Specialists.  We represent 5,000 real estate Offices and 215,000 Sales Associates.   This is a network of individuals I’ve known and worked with for many years.  I know when I have a client relocating to or from another city I can refer one of my clients to them and they will provide the same kind of excellent customer service that you’ve come to expect from me. 

Of course, Boston wasn’t all work and no play.  We had a great look at history in our visits, among others, to the John F. Kennedy Library and the Boston Public Library with it’s current exhibit of “We Are One, Mapping America’s Road from Revolution to Independence”.

And of course, no trip to Boston would be complete without a walk along “The Freedom Trail”, where the above photo was taken at the Old State House.  I couldn’t help but email a copy of it to my friend Vencat Reddy, Dean of the UCCS School of Business, as I knew he’d agree and it most certainly mirrors my personal philosophy. 

That’s one of the primary reasons I take the time to publish my eNewsletter—I know that the more my clients understand about what’s happening in the real estate arena, the better prepared they can be when it’s time to buy, sell, trade up or invest. 

Having just returned, I will go through the myriad materials I accumulated there and hope to share some of this knowledge with you in the next issue.

 

SEPTEMBER 2015 IS THE 14^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

This is beginning to sound like a broken record—but there we go again!  I am happy to report that things are continuing to look excellent 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 19.3% over the same period last year.  And Condo/Townhome sales are up 33.5% over the same period last year.

You will also see that while total active listings still remain down from the same period last year, new listings in September were up 7.2% in the Single Family/Patio Homes category from the same period last year.

These numbers continue to reflect strong consumer confidence and local job growth, along with low interest rates that many feel won’t be around much longer.  More and more folks are taking advantage of increased home equity in order to sell and trade up while getting still historically low interest rates.

Increased new listings mean more choices for those looking to buy. It is still somewhat of a Sellers market, so it’s important to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary at times in order to get the home you want. 

If you’ve been thinking about using the current equity available in your present home for a down payment on a new home, don’t wait any longer if you want to take advantage of the still low interest rates.  “Wait and see” is no longer an option in most cases.

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 September 2015  PPAR report.  Please click here to view the detailed 13-pages, including charts for September 2015. If you have any questions, as always, just give me a holler.

In comparing September 2015 to September 2014 in PPAR:                       

                        Single Family/Patio Homes:

• New Listings are 1,339, Up 7.2%
• Number of Sales are 1,191, Up 16.1%
• Average Sales Price is $267,612, Up 5.7%
• Median Sales Price is $240,000, Up 6.7%
• Total Active Listings are 3,215, Down 16.1%

                        Condo/Townhomes:

• New Listings are 165, Down 4.1%
• Number of Sales are 183, Up 19.6%
• Average Sales Price is $178,978, Up 10.2%
• Median Sales Price is $160,000, Up 6.7%
• Total Active Listings are 277, Down 31.6%

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $411,250                              $409,695

Briargate                                  $293,500                              $319,079         

Central                                     $193,300                              $211,233

East                                          $191,000                              $209,223

Fountain Valley:                      $205,900                              $210,987

Manitou Springs:                    $365,000                              $378,957

Marksheffel:                            $248,000                             $253,153

Northeast:                               $235,000                             $252,751

Northgate:                              $370,500                              $413,682    

Northwest:                              $355,000                              $354,643

Old Colorado City:                 $227,500                             $245,026

Powers:                                   $225,000                             $236,423

Southwest:                             $270,000                             $305,693

Tri-Lakes:                               $392,500                             $428,458

West:                                       $243,000                             $320,011

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

 

NEW MORTGAGE LOAN DOCUMENTS DESIGNED TO HELP BORROWERS

RealtorMag, 10.2.15, Wall Street Journal, 10.2.15

Mortgage borrowers are now finding it easier to compare different loan products and understand the total cost of their loan under new rules that took effect on October 3, 2015.  These changes are part of the Consumer Financial Protection Bureau’s (CFPB) “know before you owe” initiative.  They aim to provide consumers with more time to review total costs of their mortgage prior to closing. 

Here’s the breakdown of the changes:

Four previous documents are now reduced to two. 

1. The “Loan Estimate”, provided by the lender at the time of mortgage approval, will replace two of the documents, The Good Faith Estimate and the initial Truth-in-Lending Statement.
2. The  “Closing Disclosure”, provided by the lender just before closing, will replace the HUD-1 Settlement Statement and the final Truth-in-Lending Statement.

There is no way to even compare the Good Faith Estimate with the new Loan Estimate according to many lenders.  The document has changed dramatically, but the changes are now very consumer-friendly.

Consumers can now easily check to see whether the loan amount, interest rate, monthly payment, escrow sum and the amount that a borrower needs to bring to the closing (a new feature) have changed from the lender’s initial estimate.  The Loan Estimate also itemizes all closing costs and indicates which services a borrower can shop for, such as the title-search company and pest inspector.

Also included is information to help the borrower better understand the long-term costs of the loan, and shows what a borrower will have paid in principal, interest, mortgage insurance and other loan costs at the five-year mark. 

In order to help with comparison-shopping, the Loan Estimate will detail the annual percentage rate (APR) so a borrower can put documents side by side and easily compare overall costs between different loan products such as a 15-year and 30-year mortgage.  The APR factors in mortgage-broker fees and closing costs along with the interest rate. 

Now also shown is the total loan interest percentage—the total amount of interest that a borrower will pay over the term as a percentage of the loan amount.

The Closing Disclosure also is more consumer-friendly than the documents it replaces and now shows what portion of the payment goes toward homeowner’s insurance, mortgage insurance, interest and taxes.

With the forms much less confusing and more concise, mortgage borrowers are going to get a much better picture of what they will owe at closing and throughout the lifetime of the loan. 

There is one rule change that is of concern to some lenders but should not affect most borrowers.  That rule mandates three business days for hard copies of the Closing Disclosure to be received by mail and reviewed for any issues or errors by the borrower.  If no issues arise, closing can take place three days later.  This applies even if the document is hand delivered or electronically sent.

If there are late changes in the loan terms, such as switching from a fixed-rate loan to an adjustable-rate, a new Closing Disclosure form may be required which could delay closing.  This could hurt in a highly competitive market where multiple offers and bidding wars with cash offers are possible. 

However, the CFPB emphasized that the disclosure form and waiting period were designed to help borrowers pick the best loan option for their individual situation and that this could even take away some stress because borrowers will know a week in advance if they are going to close.

 

LOCAL CONSTRUCTION PACE CLIMBS

The Gazette, 10.2.15

For the eighth straight month in year-over-year comparison, homebuilders in El Paso County increased the number of permits issued to builders and individuals.  The 233 total for September was almost a 30% increase over last September, and brought the year to date total to 2,135—a 14% jump over the same period last year. 

Factors for this are similar to those in local existing-home sales—low interest rates, increased consumer confidence and increased equity which allows homeowners to sell and trade up to a new home.

Area statistics are mirroring those across the county, where construction spending in August increased 0.7% to the highest level since May 2008. 

 

RATE INCREASES ARE STILL A POSSIBILITY THIS YEAR

While inflation is remaining flat and the Federal Reserve did not increase interest rates at their September meeting, there are signs that an increase is still possible before the year’s end.

Stock market volatility in the U.S. as well as in foreign markets is thought to be a side effect of those waiting to see what the Fed does in terms of rate increases and there are those that want the Fed to either raise the rates or stop talking about it.

I certainly don’t want to predict what will happen, but at some point we know the rates WILL go up, and with them, the end of historically low mortgage lending rates.  Rising rates can make a significant difference in monthly mortgage payments so if you’ve been even considering whether it’s the time to make a move—it’s worth checking it out soon. 

A word to the wise can never hurt!

 

HARRY’S PHILOSOPHY OF THE DAY

Two real estate agents decided to start a new career to sell shoes. The agents go to Africa to open up new markets.

Three days after arriving, one real estate agent said, "I’m returning on the next flight. Can’t sell shoes here. Everybody goes barefoot."

At the same time the other real estate agent sent an email to the factory saying, "The prospects are unlimited. Nobody wears shoes here!"

Guess which agent I am?  Happy Wednesday.

 

FEATURED LISTING

                                                            

September 28, 2015

HARRY’S BI-WEEKLY UPDATE

                                  A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

                                       

LOCAL HOUSING STATISTICAL REPORTS SHOW CONTINUED POSITIVE TREND

Pikes Peak REALTORS Services Corp.,

PPAR recently released the August 2015 “Monthly Indicators” and “Local Market Update” for El Paso and Teller Counties with data current as of September 11, 2015.  These reports go into more detail than the August “PPAR Monthly Statistics “I published several weeks ago and I know you will be as happy as I was to see this continued upward trend in local Residential real estate. 

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

• Sold Listings for All Properties were up 23.9%
• Median Sales Price for All Properties was up 2.7%
• Active Listings on All Properties were down 31.4%.

This is great news for us all.  Those who have wanted to sell and trade up but found themselves “upside down” equity-wise in recent years are now seeing increased equity that could enable them to make a move while interest rates are still historically low. 

With the easing of loan, credit and down payment qualifications, the time is possibly right for first-time buyers to enter the housing market.  This is especially important with rental prices going sky high nationwide as well as locally.

You can click here for the entire 16-page “Monthly Indicators” report.  I’d like to share a couple of pages from that report that I feel will make you smile.

The average sales price on Single Family/Patio Homes is up 7.5% year-to-date, and while the Townhome/Condo market is still fluctuating, it is remaining relatively stable.  Inventory in both categories is down, which is contributing to the price increases but also making it a bit harder for those looking to buy.  I still contend that there is a home out there for anyone looking; however, sometimes you might need to re-think your wants and needs or look at a neighborhood that you might have missed in your search.

The “Total Market Overview” is very positive and I thought you might like to peruse it even before you read the report in its entirety.

      

 

      

 

      

 

Below I’ve highlighted just one area so that you can see the type of information available for the specific neighborhoods included in the 33-page “Local Market Update”.  To see data on all areas, please click here.

            

As you can see, there is valuable information here that can help you in making your personal housing decisions.  There are a lot of variables to consider in each particular neighborhood and that’s why I encourage you again and again to use a competent, knowledgeable real estate Broker when it comes to your individual housing needs.  We know the market, we know the neighborhoods, and most importantly, we get to know YOU.  Each transaction is different, based on the wants, needs and budget of a particular family and understanding those factors are an intricate part of whether or not a home can get to closing.

If you have any questions concerning these reports, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com.  I’m ready to help make all your Residential real estate dreams come true and the time to start acting on them is NOW.

 

NOTE TO INVESTORS AND WANNA BE’S--RENTAL MARKET TO REMAIN STRONG FOR YEARS TO COME

Relator Mag, 9.21.15, The Gazette, 9.15

If you’re currently an investor or simply looking into investment property—now is a great time to expand your Residential real estate portfolio.

According to Frank Nothaft, chief economist for CoreLogic and former chief economist at Freddie Mac, the single-family rental market will continue to stay strong for years to come. 

“Since the great recession began, household formation has been anemic,” Nothaft noted in a column for HousingWire.  “But this year household formation will be at its highest point in 10 years—close to 1.7 million new households—many of which will be renters.”

Of the more than 5.8 million homeowners who lost their homes due to foreclosure during the housing crisis of the last seven years many have become renters, which has boosted growth of the single-family detached rental stock. 

Approximately 35 percent of all rental stock are single-family rentals and these are the ones that tend to have the lowest vacancy rate—less than 3 percent compared to 8 percent or more among larger apartment buildings, Nothaft notes.

Demand is pushing up rental rates, and “no matter how you crunch the numbers, the outlook for rentals looks strong for the foreseeable future,” indicated Nothaft.

On the local scene it was mentioned this week that at least five Colorado Springs-area aging apartment buildings have been sold in recent weeks, indicating that buyers are interested in multi-family properties regardless of their age.

The area’s vacancy rate fell to 4.6 percent in the second quarter of 2015, down almost a full percentage point from the same time last year according to the Colorado Division of Housing. This can be attributed to young people who don’t want or can’t qualify for a mortgage or retirees who are looking to downsize and seeking maintenance-free living. 

With interest rates still low, and the region’s economy steadily improving, buyers for both multi-family and single-family investment properties are pouncing while there’s time.

If you’ve considered single-family investment property, the time is ripe.  Just give me a call at 598.3200 and let’s discuss how you can make this a part of your investment portfolio today.

 

INCREASED LOCAL TAX COLLECTIONS INDICATE CONSUMER CONFIDENCE

The Gazette, 9.22.15

Sales tax collections in Colorado Springs rose last month to their biggest percentage gain in almost a year and tax revenues have increased for six straight months on a year-over-year basis. 

This is signification since the city relies on the tax to fund more than half its general fund budget that pays for many basic local services.  The sales tax report is another vehicle used by economists, businesses and others to keep tabs on the health of the city’s economy. 

According to Doug Price, CEO of the Colorado Springs Convention and Visitors Bureau, the Pikes Peak region has had a strong tourist season in 2015, which was boosted by the visitors who came for the Broadmoor Pikes Peak International Hill Climb, the Pikes Peak or Bust Rodeo and the Rocky Mountain State Games.    

He also said that lower gas prices encouraged more people to travel and explore tourist attractions. 

I’m always happy to share good news about our local economy, because let’s face it, when the city does well, the citizens do well and when the citizens do well, they invest in real estate, which in turn continues to earn equity as home prices increase.  Another “win-win” for us all.

 

STRONG ECONOMY TO ATTRACT MORE BUYERS

Realtor Mag, 9.17.15

Due to positive consumer spending and job growth, Fannie Mae researchers are predicting a strong economic gain in the second half of 2015, which will likely offset recent market volatility and heightened anxiety on Wall Street.

With full-time employment now surpassing its pre-recession peak and average hourly earning posting recent gains, we can look for increased consumer spending in the months to come according to Fannie Mae’s Economic & Strategic Research Group.

Doug Duncan, Fannie Mae’s chief economist, says “Continued strong performance of year-to-date home sales and modestly weakening leading indicators confirm that our prior forecast of existing home sales this year remains valid.” 

“Sub-par single-family new home constructions, however, has been somewhat disappointing, and as a result, we have lowered our projected single-family starts projections for 2016.  We anticipate total mortgage originations to increase approximately 25 percent for all of 2015, and total productions volume to decrease somewhere in the area of 18 percent in 2016, with the refinance share falling about 15 percentage points,” he added.

Overall, Fannie Mae is projecting economic growth of 2.4 percent for 2015—up slightly from 2.1 in its prior forecast.  “Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices,” Duncan says.

Bottom Line?  It’s a great time to own Residential real estate.  With price increases, low interest rates and fewer new construction starts, your home is earning equity as I write.  If you’re looking to sell and trade up, now’s a great time.  If you’re looking to buy for the first time or for investment purposes, it’s a good time as well. 

The Federal Reserve hasn’t raised rates yet, but Janet Yellen, chairperson for the Fed, has indicated that it is still her intent to raise rates before the end of this year.  At present though, with the easing of mortgage loan, credit and down payment requirements in a number of categories, now is looking like a great time to check out all the possibilities.  Just give me a call and let’s get the ball rolling.

 

HARRY’S JOKE OF THE DAY

       

 

                                                            

September 15, 2015

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.

                                

As most of you are aware, I’ve always advocated the importance of home ownership in a person’s financial portfolio.  My background in Investment Banking and 43 years in the real estate arena has consistently shown this to be a correct position in most situations.  For example, the average long- term appreciation during my 43 years in the Colorado Springs market has been 5.7%. You will see that this is even better than the national long-term appreciation projected in the article below. 

There have been a number of articles in recent days highlighting reasons to buy a home, either for personal use or for investment purposes and I’d like to share some of this knowledge with you in this issue. 

With the Federal Reserve scheduled this week to discuss the possibility of the first rate increase in nine years, it bodes well to keep this in mind when making housing decisions.  We’ve seen historically low interest rates for quite some time now but it’s likely they will slowly start to rise in the near future. 

Lenders are now easing their qualifications for obtaining mortgage financing and Fannie and Freddie are making it considerably easier for first time buyers to obtain a loan, by lowering and/or changing down payment and credit requirements.

If you or any family members have been waiting to make a home buying and/or selling decision, it would behoove you to wait no longer.  Based on your individual wants, needs and budget, I can help steer you in the right direction when it comes to all your real estate transactions and refer you to competent lenders that can best handle your mortgage needs. 

Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com today and let’s see what we can do for you.

 

THINKING OF BUYING A HOME?  HERE’S 3 QUESTIONS FOR YOU.

Keeping Current Matters, 9.10.15

Friends and family are often full of great advice when it comes to home ownership, but in reality they may not be fully aware of your individual needs or know what’s going on in the local real estate market.  That’s why it’s essential to use a competent, knowledgeable Real Estate Broker in any housing transaction to be assured of an honest assessment of your personal situation.

Here are three great questions to ask yourself when considering purchasing a new home.

1. Why am I buying a home in the first place?

This is by far the most important question.  Forgetting finances, why did you begin to consider purchasing a new home?  A study by the “Joint Center for Housing Studies” at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of that space

The non-financial benefits of buying a home should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

The “Home Price Expectation Survey,” published quarterly by Pulsenomics, surveys a nationwide panel of over 100 economists, real estate experts and investment and market strategists about where prices are headed over the next five years.  Those projections are then averaged into a single number.

Here are the projections from the recent 3^rd Quarter 2015 Survey:

• Home values will appreciate by 4.1% in 2015.
• The cumulative appreciation will be 18.1% by 2019.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 10.5% by 2019.

The chart below was made using these predictions:

                   

Assuming the experts are right, if you were to purchase a home by January 2016 for $250,000, that home would appreciate by over $34,000 over the next four years. 

As I’ve told you time and again, homeownership is one of the best ways to help build your family’s wealth and this is a perfect illustration of that.

3. Where are the mortgage interest rates headed?

As a buyer, you must be concerned about more than just home prices.  The “long term” cost of a home can be highly impacted by an increase in mortgage rates.

The Mortgage Bankers Association , the National Association of Realtors (NAR) and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage point over the next 12 months, as illustrated in the chart below:

               

Bottom line?

Once you and your family have decided for certain that it’s time to buy or sell and trade up, answering these questions will be of great help. 

Any further questions you may have in consideration of your particular situation, please call me and I’ll be happy to provide you with the best answers available.

 

AND IN THE SAME VEIN…HOMEOWNERSHIP IS THE BEST WAY TO BUILD WEALTH

Keeping Current Matters, 8.31.15

Along with the strong recovery in sales and prices, the housing market has increased in the confidence of consumers and experts as an investment, as was also illustrated in the previous charts.  A New York Times editorial entitled “Homeownership and Wealth Creation” explains:        

“Homeownership long as been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”

Facts in this editorial were right on track with the research done by the Federal Reserve in their Survey of Consumer Finances.  That study found that the average net worth of a homeowner ($194,500) is 36x greater than that of a renter ($5,400).

The NAR expanded on that research and projected that by the end of 2015 the average homeowner will have nearly 41x the net worth of a renter.  Their findings are shown here:

                         

It has been suggested that one reason for this large discrepancy in net worth is the “forced savings” created by having a mortgage payment.  The Times explained it as follows:

“Homeownership require potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.”

“Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment.  It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”

“As a means to building wealth, there is no practical substitute for homeownership.”

 

HOWEVER...YOUNG BUYERS ARE BEING SQUEEZED OUT OF THE MARKET

The Wall Street Journal, 9.14.15, RealtorMag, 9.10.15

Even with credit and down payment qualifications easing, first-time buyers are having a difficult time in getting into homeownership.

Student loan debt is at an all time high and delinquencies are common.  Yesterday’s Wall Street Journal reported that according to Federal data released last week, “more than half of students at 347 colleges and vocational schools defaulted on their loans or failed to pay down even a single dollar of their debt after seven years.”

That burden, along with increasing home prices, find young potential buyers being kept out of the housing market and forced to rent or live at home with their families. 

According to Lawrence Yun, chief economist for NAR, “One can say that we are having a nationwide housing cost problem” as housing’s affordability remains a barrier for first-time buyers wanting to enter the market.

The latest “Existing Homes Sales Report” shows that the share of first-time buyers was 28 percent in July, down from 30 percent in June. 

“Home prices are rising anywhere from 3-4 times as fast as people’s income,” says Yun.  “Rents are double the income growth rate.  This is unhealthy, unsustainable.  The only way to tame the housing costs is to have more supply.  So, maybe relaxing the regulations on small-size banks so they can lend to homebuilders is an answer.  We have a mismatch, a dramatic shortage, of owner-occupant homes that are available for sale.”

Locally, I am finding that with new down payment and mortgage qualification requirements along with a slight increase in listings, there are definite possibilities for first-time buyers.  Rental rates are going sky high and you have to pay a mortgage whether or not it’s yours or someone else’s.  It’s certainly worth exploring whether the possibility of homeownership exists for first-time buyers.  Why not give me a call at 598.3200 and let’s see if we can make that happen. 

As an aside to those looking for investment property—there are a lot of folks who are in the rental market due to situations like those mentioned above.  Rental rates are rising sharply and the equity in your investment home will continue to increase over time.  It’s a “win-win” for those with interest in this area and now is a great time to get into the market.

 

SOUTHERN COLORADO ECONOMIC FORUM SET FOR OCTOBER 23^RD

                                            

The 19^th Annual Southern Colorado Economic Forum is being held at The Broadmoor next month and it’s sure to be another sell-out event. 

The Keynote Speaker is Brian Beaulieu, CEO of ITR Economics & Chief Economist for Vistage International.  Following his speech, Tatiana Bailey, Forum Director, will address the” Economic Conditions and Outlook for the Pikes Peak Region”.  There will be an audience question and answer with the economists.

A Panel Discussion concerning “Workforce and the Skills Gap” will also be followed by questions and answers of the panelists.

This is a “must” event for anyone in the business community in the Pikes Peak region and Salzman real estate Services, LTD is proud to have been a sponsor since the Forum’s inception.  

For more information and/or to register, please go to:  www.SouthernColoradoEconomicForum.com

I hope to see you there.

 

HAPPY NEW YEAR…

The Jewish Year 5776 is just starting and I’d like to take a moment to wish all my Jewish readers a heartfelt “L’Shana Tova” (Happy New Year). 

To all my readers, Jewish or not, I wish you a year filled with much good health, happiness, success, love and most importantly...Peace. 

 

HARRY’S JOKES OF THE DAY