Real Estate Information

September 2, 2015

 

HARRY’S SPECIAL EDITION

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.

 

**EXTRA**EXTRA**EXTRA**

As promised in Monday’s eNewletter, here are the PPAR Monthly Statistics that were released yesterday afternoon.  You will see from the excellent continued upward trend why I wanted to share this good news with you as soon as it became available.

I hope you all have a safe, happy Labor Day Weekend.

 

AUGUST 2015 IS THE 13^TH STRAIGHT MONTH OF INCREASE IN LOCAL SALES

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

Here we go again.  I am thrilled to report that things are continuing to look very good 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 19.7 over the same period last year.  And Condo/Townhome sales are up 35.7% 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 August were up from the same period last year in both categories.

These numbers reflect continued strong consumer confidence and local job growth, along with low interest rates that many buyers feel will soon go higher.  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.

The Federal Reserve has indicated that rates could rise as early as this month, depending on job growth and economic conditions which have been good in recent months.

Increased new listings mean more choices for those looking to change neighborhoods or simply move around the block.  It continues to be 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 is often necessary these days 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 August 2015 PPAR report.  Please click here to view the detailed 13-pages, including charts for August 2015. If you have any questions, as always, just give me a call.

In comparing August 2015 to August 2014 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1,558, Up 9.6%
• Number of Sales are 1,383, Up 24.5%
• Average Sales Price is $273,381, Up 5.8%
• Median Sales Price is $241,468, Up 5.0%
• Total Active Listings are 3,378, Down 17.7%

                        Condo/Townhomes:

• New Listings are 215, Up 17.5%
• Number of Sales are 184, Up 12.2%
• Average Sales Price is $165,188, Down 12.6%
• Median Sales Price is $149,450, Down 1.4%
• Total Active Listings are 295, Down 26.8%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $472,500                              $500,241

Briargate                                  $316,300                              $322,295         

Central                                     $193,000                              $210,350

East                                          $198,475                              $212,569

Fountain Valley:                      $220,000                              $217,785

Manitou Springs:                    $316,500                              $311,785

Marksheffel:                             $254,900                             $266,891

Northeast:                                $220,000                              $231,891

Northgate:                                $395,000                              $399,393           

Northwest:                               $350,450                              $378,510

Old Colorado City:                  $183,900                              $210,829

Powers:                                    $231,000                              $240,060

Southwest:                              $333,500                               $465,981

Tri-Lakes:                                $377,000                               $414,367

West:                                        $243,900                              $321,932

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

 

                                                            

August 31, 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 MARKET UPDATE AND MONTHLY INDICATORS ARE UPBEAT AGAIN

Pikes Peak REALTORS Services Corp.,

I always like to share information with you, my readers, on a timely basis and give you absolute facts so that you can:

• See what’s actually happening in Residential real estate in the Pikes Peak area, and your neighborhood in particular
• Take time at your leisure to peruse the facts and understand what they mean to you personally
• Take action, when appropriate, to create a housing plan for you and your family

I believe that actual facts and statistics give you the ability to make competent choices while allowing you as a buyer and seller to have a positive experience when making a personal housing decision. Sometimes the facts are “good”, occasionally not so good, but in either case, if you are prepared beforehand, hopefully you won’t be faced with situations you might not have expected. 

Being “realistic” is a primary requirement for the home buying and selling experience in my book.  False promises and suppositions only add to what is a somewhat stressful experience to begin with.  This is just another reason for making certain you have a knowledgeable, competent real estate Professional, such as myself, on your team when you are ready for a move.

A report from PPAR released on August 25^th, providing data as of August 12^th,  provides detailed information on housing activity for El Paso and Teller Counties for the month of July.

Such positive news deserves a second look and these reports go into greater detail than the “PPAR Monthly Statistics” for July that I shared several weeks ago.

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

• Sold Listings for All Properties was up 13.8%
• Median Sales Price for All Properties was up 4.2%
• Active Listings on All Properties was down 33.6%.

This is continued great news for those who, despite low interest rates, couldn’t refinance or sell and trade up without bringing additional cash to closing.  Many people stayed in their homes and some were forced into short sales or foreclosures. 

With more equity, homeowners will have better options, such as the ability to sell their present home and have additional cash for a downpayment on a trade-up home. 

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, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com.

Please Note:  The “PPAR Monthly Statistics” for August will be published shortly and when received, I will send out a Special Edition of the eNewsletter so you can have them on a timely basis.

 

JOBS…JOBS…JOBS…EMPLOYMENT NEWS IS GOOD

UCCS 2^nd Quarter Report, The Wall Street Journal, 8.26.15,The  Gazette, 8.27.15

The job market is looking up, especially in El Paso County where it was the strongest in the first quarter than it has been since the middle of the past decade, according to data posted last week on the Colorado Department of Labor and Employment’s website. 

Tatiana Bailey, director of the Southern Colorado Economic Forum said, “This is really encouraging.  We’ve been in the sluggish recovery for several years and now we are finally seeing some really positive job growth numbers.  It is reflecting the improvement we’ve seen in other indicators.”

According to a new report from the economists at the Congressional Budget Office, “more Americans who left the workforce temporarily or who stayed out because of weak job prospects will return in the coming years as demand for labor builds in the economy.”

“We’re actually finding people who are returning to the labor force a little bit faster than we would have anticipated,” said CBO director Keith Hall.  “So it makes us think that the cyclical impact on the labor force is bigger than we thought before.”

Ms. Bailey, through UCCS and the Southern Colorado Economic Forum, published economic statistics that show the “Big Picture” in Labor, Housing, Tourism and more for El Paso County.  To view all of the charts included in the 4-page report, please click here.

The chart depicting “Colorado Springs MSA Job Openings” is below:

                            

I was so happy to receive this particular information because of its implication for the Colorado Springs housing market in general.  More jobs equal more people moving here.  Move people moving here means a greater demand for housing.  And, a greater demand for housing means that present home values will continue their upward climb.  This will allow those looking to sell and trade up a better opportunity to do so.  Those looking for investment properties will find more folks looking to rent as they enter the job force.  And sellers will find more prospective buyers for their homes. 

All in all it’s a win-win for not only homeowners, but for all of Colorado Springs.  Happy days are here again in the local job market.

 

HOUSING AND CONSUMER CONFIDENCE ARE BRIGHT SPOTS IN CURRENT ECONOMY

The Wall Street Journal, 8.26.15

The recent turmoil in the stock market, instability in China and other nations, and concerns about the intent of the Federal Reserve to raise interest rates might have foretold worries for us all.  However, a steadily rising housing market and growing consumer confidence, along with nearly five years of steady job creation, suggests that the U.S. is resilient enough to weather all of this.

According to Joel Naroff, chief economist of Naroff Economic Advisors, “It’s hard to make the case that the stock market mess has anything to do with the U.S. economy as the data are all pointing to solid growth.” 

U. S. consumer confidence rose in August to its highest level since January, reflecting optimism about an improving labor market.  New-home sales picked up pace in July, rising 21% from a year earlier.  And homebuilder sentiment is at its highest level since November 2005.

“It’s sunshine and blue skies, notwithstanding what’s happening on Wall Street,” said Brian Johnson of Mattamy Group Corp., which is based in Canada and builds homes in five American states.  They sold 155 homes in the U.S. in July, doubling its year-earlier output, with an average price of $300,000.

He added, “There’s a lot of headline news going on in places like China, but the U.S. is a more internally focused economy than others in the world.

 

FANNIE MAE HELPING LOW-INCOME BORROWERS

The Wall Street Journal, 8.26.15

Making it easier for working-class and multigenerational households to get a mortgage is on the mind of Fannie Mae. 

The mortgage-finance company said last week that it intends to roll out a program this year that lets lenders include income from non-borrowers within a household, such as extended-family members, toward qualifying for a loan.

This move is intended to open up homeownership to that segment of the population that doesn’t fit the “typical” family structure, ones in which it is common for extended-family members to contribute towards the cost of housing.

The new program will be only open to low-income borrowers or those living in low-income or minority-dominated areas and will also in some cases let borrowers who don’t live in the home, such as parents, contribute income.  Families with boarders will also be allowed to count that rent toward qualifying. 

There are a number of critics of this program but it is a step towards helping those who might not have been able to obtain a mortgage in the past now qualify.

Over the past several years, Fannie, Freddie Mac and lenders have loosened some of the restrictions on down payment and credit-score requirements.  Earlier this year, for example, Fannie and Freddie reintroduced programs that allow down payments of as little as 3%, down from the previous 5%.  These are programs I’ve written about in several past eNewsletters. 

Bottom line?  It doesn’t matter what segment of the market you fall into, there can be a home and home mortgage that can fit your wants, needs and budget.  Just give me a call today and let’s see what we can do to help make your dreams a reality.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

 

HARRY’S JOKE OF THE DAY (maybe not such a joke?)

 

 

                                                            

August 17, 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.

                                     

LATEST QUARTERLY NATIONAL COMPARISON SHOWS LOCAL MEDIAN HOME PRICES ARE WAY UP

National Association of REALTORS, 8.11.15

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.  While this is good news for almost all areas of the country, it’s even better news for Colorado Springs as our median sales price is 20% better than the average median sales price of the 176 areas that are tracked by NAR.

As most of you are aware, I publish these results each quarter as soon as they become available and for a little while Colorado Springs did not seem to be keeping up with the average of other surveyed metro areas.  That changed significantly this past quarter and local median sales prices increased by 10% over the previous quarter to $244,800.  The percentage change for the total measured areas total was 8.2% for an average median sales price of $229,400.  I actually can’t remember when our statistics were that much better than the average median sales price nationally so this is exciting news for us all.

To view the entire list of 176 metro areas, please click here.

Lawrence Yun, NAR chief economist, says the housing market has shifted into a higher gear in recent months.  “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” he said.  “While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”

 “With home prices and rents continuing to rise and wages showing only modest growth, declining affordability remains a hurdle for renters considering homeownership—especially in higher-priced markets.,’ he added.

This is great news for homeowners, especially those who found themselves “underwater” during the recent recession and couldn’t act sooner.   “The ongoing rise in home values in recent years has greatly benefited homeowners by increasing their household wealth,” says Yun.  “In the meantime, inequality is growing in America because the downward trend in homeownership rate means these equity gains are going to fewer households.”

My personal experience in recent months has been that fewer homes on the market has resulted in quicker sales and a very high sales to list price ratio. Yes, folks, as I’ve been saying--it’s no longer a Buyer’s Market.  Some Sellers are finding themselves with multiple offers and are receiving pretty close to asking price these days.  In some cases, Sellers are getting more than asking price. 

What does this mean to you?  Well, 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.  This also means the home you might be considering has also increased in price.  The good news at the moment is that mortgage loan interest rates are still low and this could be the last time we see this for a very long time.  Even with the shortage of available homes, I’ve found that most Buyers can find something in almost every neighborhood of their choosing. 

If you’ve been considering a move or waiting for the “right” time..NOW is probably the best time to consider all your options.  Prices are continuing to rise and pretty soon interest rates will also be on the upswing. 

With escalating rental rates, investment properties are still a good option for those in the market, but I wouldn’t advise waiting too long as home prices are rising steadily and there are not as many “bargains” as in the recent past.

Why not give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see what we can come up with that works for your wants, needs and budget?

 

‘JUMBO’ LOAN TERMS EASED

The Wall Street Journal,, 8.5.15, Housing Wire, 8.6.15

The “big” guys, such as J.P. Morgan Chase & Co., as well as Bank of American Corp and Wells Fargo & Co. have set the pace for easing terms on ‘Jumbo’ loans—those mortgage loans that exceed $417,000 in most parts of the country and $625,500 in pricier markets. 

These financial institutions have lowered the FICO credit score requirements, to as low as a minimum of 680 for as little as 15% down payment requirement, depending on the lender.

The jumbo market has recovered as much or more than any other sector of the mortgage market because lenders have more flexibility to change criteria since they generally hold these loans on their own books rather than sell them.  Smaller home loans are often sold to Fannie Mae and Freddie Mac and have to conform to the criteria of those mortgage giants. 

Chase adjusted its jumbo loan requirements to make the homebuying process easier as part of a firm-wide simplification process and has also rolled out easy to understand guidelines for primary and second-home loans, as well as investment properties and cash-out finance loans.  This is so that “homebuyers can easily understand the benefits of financing with Chase”, according to Steve Hemperly, head of mortgage loan originations there.

As soon as these terms were made public, I notified several clients who had been looking at other financing for their ‘jumbo’ loans. Chase offered at least one of them a 30-year-fixed-rate loan for 3.75%.  That’s just part of the service I provide my clients.  With my eye on the financial markets at all times, my investment banking background has often come in handy when it comes to making certain that all my clients are getting the very best mortgage loan available for their individual situation. 

 

13 TIPS TO MAKE MOVING SLIGHTLY LESS HORRIBLE…or How To Escape With at Least a Shred of Dignity

citylab, 8.14.15

Moving anywhere is a hassle and often makes us wonder what we were thinking when we bought all those books, DVDs, or collections or anything.  And the proliferation of boxes, wrapping paper and tape, not to mention the wear and tear on bodies!

While it is NEVER fun, moving is a great time to start over and purge stuff you no longer need, as well as look forward to your new living environment, be it a first home, new home or rental.

Some experts have provided suggestions on how to prevent moving from becoming the worst day of your life.  For those who are moving pros, you might pick up a few pointers.  For those moving for the first time, this advice is invaluable.  Here goes:

Before You Start

1. Photograph your cords.  Take photos or make notes on how all of your media equipment is set up:  television, sound equipment, modems and computer equipment.  Keeping tabs on the cords will help you get connected quickly in your new place.

 

2. Change your address.  Doing this a week or two in advance will help ensure that you get important items, such as bills, and don’t have a lag in services that are tied to a mailing address associated with a credit card (like Netflix or Seamless).

 

3. Set up utilities.  You don’t have to wait until you’re settled in to make arrangements for the wi-fi or gas.  Once you know your move-in date, call ahead and schedule whatever you will need.

 

4. Make a plan for your pets.  Moving is stressful for animals, too.  Consider making arrangements to leave your pet with a friend or boarding service in order to keep them calm and prevent them from accidentally slipping out a propped-open door.

 

5. Schedule touch-up paint.  This is especially important for renters who might be responsible for a new paint job according to the terms of their lease.  Waiting for the last minute could be a logistical nightmare if you no longer have possession of the keys.

 

6. Ask for help.  If you’re not hiring a moving company, enlist friends for family and be sure to repay them with money or lots and lots of snacks.

Packing

7. Designate a “first night” box.  You can plan on being exhausted once you get moved in and putting all your essentials such as a toothbrush, change of clothes, medications, etc. in a separate box can make it much easier.

 

8. Start with the stuff you use least often.  This will help you in deciding whether or not those things are really “essential” or should be donated or thrown away.

 

9. Use suitcases wisely.  As long as they have to moved, you might as well fill them with stuff.  Large suitcases are great for lightweight, non-breakable items—such as clothes or bedding.

 

10. Separate cleaning supplies.  You will want to unload your things onto clean surfaces, so instead of tossing cleaners in with the rest of the bathroom or kitchen supplies, put them in a separate box so that you can wipe off any crud on the counters or shelves prior to unpacking.

 

11. Don’t stow your important documents.  Be sure to put your birth certificate, passport,    and other important papers in a separate folder and keep them with you. 

Unpacking

12. Put up a schematic for furniture.  Tape up photos or signs indicating where your couch, coffee table, and other big items should go.  This will help the movers figure out approximately where you want things positioned.

 

13. Save your receipts.  In some cases, moving expenses are deductible from federal income taxes.  If you’re moving due to a change in employment you may be able to claim this deduction even if you do not itemize.  To maximum these deductions, keep track of all costs incurred during the moving process and consult your tax attorney for advice.

 

HARRY’S JOKES OF THE DAY

 

Why don't real estate agents read novels?

Because the only numbers in them are page numbers.

 

Why do appraisers carry a wasp in their hand?

Value is in the eye of the bee holder.

 

What's the difference between a real estate agent and an accountant?

The accountant knows he is boring.

 

What is the study of real estate?

Homology

 

Why didn't the hipster real estate agent show the ocean-side mansion?

 It was too current.

 

What's a mortgage broker?

A real estate agent without the sense of humor.

 

What is the definition of a good real estate agent?

Someone who has a mortgage loophole named after him.

 

Salesman: This computer will cut your workload by 50%.

Property Manager: That's great, I'll take two of them.

 

 

 

 

                                                

August 4, 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.

                                                              

JULY LOCAL STATISTICS CONTINUE THE POSITIVE GROWTH TREND

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

PPAR released July statistics this morning and I waited to share what I anticipated to be more good news, thus the eNewsletter coming to you a day later than usual.

Once again, I am thrilled to report that things are looking very good for the Pikes Peak Region in the Residential real estate market. 

July was the twelfth straight monthly increase in sales.  In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 28.4% over the same period last year.

These numbers reflect strong consumer confidence along with low, but slowly rising, interest rates that many buyers feel will soon go higher.  “Act now” continues to be the current norm and “act quickly” is becoming the new norm.

With the Federal Reserve signaling that interest rate hikes are on the horizon, possibly sooner than later, many people are beginning to realize that this could be the end of historically low mortgage interest rates, most likely in our lifetime. 

Low listings are still limiting choices but I still find that most of my clients are able to sell and trade up as long as they are realistic about the current market conditions and are able to make a quick decision once they find the property they want to buy. 

If you’ve been thinking about using the current equity available in your present home in order to trade up or move to a new neighborhood, 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 your individual wants, needs and budget, 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 July 2015 PPAR report.  Please click here to view the detailed 10-pages. If you have any questions, as always, just give me a call.

In comparing July 2015 to July 2014 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1882 Up 14.3%
• Number of Sales are 1,367, Up 14.0%
• Average Sales Price is $275,417, Up 3.1%
• Median Sales Price is $243,000, Up 5.7%
• Total Active Listings are 3,409, Down 19.3%

                        Condo/Townhomes:

• New Listings are 214, Up 15.1%
• Number of Sales are 194, Up 22.8%
• Average Sales Price is $169,899, Up 3.7%
• Median Sales Price is $155,000, Up 4.5%
• Total Active Listings are 300, Down 25.2%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $412,450                              $434,160

Briargate                                  $328,150                              $336,068         

Central                                      $180,000                              $215,897

East                                          $197,000                              $208,028

Fountain Valley:                      $217,000                              $213,815

Manitou Springs:                    $310,000                              $354,200

Marksheffel:                             $255,000                              $261,953

Northeast:                                $255,000                              $247,663

Northgate:                                $397,500                              $420,704           

Northwest:                               $355,500                              $366,781

Old Colorado City:                  $245,450                              $248,718

Powers:                                    $229,500                              $234,596

Southwest:                              $282,500                              $358,062

Tri-Lakes:                                $440,000                              $446,678

West:                                         $276,950                              $371,757

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

 

HOME PRICES ACROSS THE U.S.A. VAULT TO RECORD HIGH

The Wall Street Journal, 7.23.15,  Associated Press, 7.23.15, The Gazette, 7.23.15

Prices of existing homes in June escalated to record highs, toppling the previous high mark set in June 2006, as sales increased at their strongest pace in more than eight years.

This suggests that the housing market is quickly gaining the ground lost during the recession and recent slow recovery. 

According to the National Association of Realtors (NAR) the median sales price for a previously owned home jumped 6.5% in June from the same month a year earlier to a high of $236,400.  The previous high of $230,400 was recorded in July 2006.

This chart illustrates the recent trend:

Economists say that the numbers reflect a brisk summer selling season combined with stronger employment numbers.  The jump in sales also reflects buyers who are anxious to get into the market prior to the inevitable interest rate hikes and further prices increases.

“Everyone feels the door closing on really low interest rates and I think this is going to be one of the last months where everyone is scrambling to get under contract,” said Glenn Kelman, chief executive of Redfin, a real estate brokerage. 

Home prices have increased 35% since 2011, which benefits current homeowners who may want the opportunity to trade up to better homes or cash out at a profit.  Higher prices are also good news for those who have long owed more on their mortgage than their home is worth, thus preventing them from selling without suffering a loss. 

As you saw from the July PPAR statistics, Colorado Springs and the Pikes Peak area are keeping up with the rest of the country in existing home sales and escalating prices.

 

IMPLEMENTATION OF “TRID” EXTENDED UNTIL OCTOBER 3rd

I’ve previously mentioned the new mortgage loan rule changes that were due to go into effect on August 1, 2015 and wanted to let you know that the implementation date has been pushed up to October 3. 

On that date, the Consumer Financial Protection Bureau’s (CFPB) Truth-in-Lending Act (TILA) and real estate Settlement Procedures Act (REVPA) Integrated Mortgage Disclosure (IMD) rule goes into effect.  Quite a mouthful—so you can see why it’s simply called “TRID”.  It’s also known as the “Know Before You Owe” mortgage disclosure rule. 

The changes are being made so that borrowers can see the true cost of a mortgage loan and more easily compare loan costs of various lenders.  The potential borrower provides only six things in order to have deemed to have completed an application:

1. Name
2. Income
3. Social Security Number
4. Property address of purchased property
5. Purchase price or estimated property value
6. Mortgage loan amount

After that, the cost of the credit report is the only thing a lender can charge before providing a Loan Estimate.  This will be a boon to those wanting to easily and inexpensively compare and know all costs associated with a mortgage loan prior to closing. 

 

HOMEOWNERSHIP RATE DROPS TO 48-YEAR LOW

Housingwire, 7.28.15

Record sales aside, the homeownership rate in the United States continues to decline and is now at 63.4%--the lowest it has been since 1967, according to data from the Department of Commerce’s Census Bureau.  The steady decline since 2009 is illustrated below:

Ed Stansfield, chief property economist at Capital Economics said,  “This suggest that home ownership has not kept pace with the cyclical rebound in household formation which is now underway, and gives weight to the idea that first-time buyers in particular are still struggling to gain a foothold in the market.

“However, foreclosure rates are declining steadily, employment and incomes are growing at a healthy pace and credit conditions are gradually loosening,” Stanfield said.  “What’s more, there is no evidence of a fundamental shift in home ownership aspirations.  Accordingly, we expect that the home ownership rate will soon find a floor.”

And, from Elliot Eisenberg, the “Bowtie Economist”:

“In 1965 the US home ownership was 63% and rose to 65.6% in 1980.  Home ownership then fell and held steady at about 64% from 1984 through 1994, when it began a meteoric rise and peaked at 69.4% in 2004.  It’s since collapsed and is now 63.5%, where it was last in 1967.  Demographics aside, home ownership is for, at most, 65.5% of the population.  Above that, a bubble.”

With rental rates soaring and rental vacancies declining, it’s most definitely a good time to consider purchasing rental property as a potential investment.  I can’t give you tax advice, however, if you think this might be an option for you, I suggest you talk to your tax advisor soon and then call me at 598.3200 or email me at Harry@HarrySalzman.com.  There are a number of properties available in most neighborhoods that are just right for investment purposes and as the numbers attest—there are lots of folks still looking to rent.

 

HARRY’S JOKE OF THE DAY 

 

                                                            

July 20, 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 MARKET UPDATE AND MONTHLY INDICATORS

Pikes Peak REALTORS Services Corp.,

I just received a report from PPAR that provides detailed information on housing activity for El Paso and Teller Counties for the month of June. Such positive news deserves a second look and these reports go into greater detail than the PPAR Monthly Statistics I shared last week.  I will make these available each month when I receive them.

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

• Sold Listings for All Properties was up 22.1%
• Median Sales Price for All Properties was up 5.1%
• Active Listings on All Properties was down 37.4%.

This is great news for those who, despite low interest rates, couldn’t refinance or sell and trade up without bringing additional cash to closing.  Many people stayed in their homes and some were forced into short sales or foreclosures. 

According to the NAR Economists’ Outlook Blog, as home prices rise, homeowners’ equity is growing at the fastest quarterly rate since 2013.  The blog indicated that “between 2011 and 2014, the homeowner equity picture has gradually changed.  Homes levels may likely return to 2005 levels by the end of this year or mid-2016.” 

With more equity, homeowners will have better options, such as the ability to sell their present home and have additional cash for a down-payment on a trade-up home. 

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, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com .

 

ASSESSED HOME VALUES UP 8% ON AVERAGE FOR LOCAL AREA HOMEOWNERS

I recently met with Steve Schleiker, El Paso County Assessor, and asked him about the results of the reappraisals for El Paso County.  Below is his emailed response:

“In the State of Colorado every odd year is considered a reappraisal year for all 64 county Assessors.  This year, overall, 91% of single-family homes increased in value, 6% stayed the same and 3% decreased in value in El Paso County.  On average, we have seen single-family residential values go up 8%; however, that differs around El Paso County, but the median throughout El Paso County was 8% increases in value for single-family residential properties.  real estate sales from July 1, 2012 through June 30, 2014 were used to determine the 2015 property values.

The real estate market in El Paso County is nowhere near what it is north of Monument; however, the increase in property values is a “good” thing.  I consider my home my most valuable investment and am definitely happy to see any kind of appreciation on my home that has not been seen since the real estate crash of 2008.2009.”

Thanks, Steve, for your insight.  You are just like the majority of Americans whose home is their most valuable investment.  It’s always good news to know that we are building equity at a better pace than in recent years, even though along with it will come slightly higher taxes to be paid!

So there you go—not only are we reading reports about home values appreciating, but we are seeing that the recorded assessed values are going up too.  It’s definitely “happy days” again for local homeowners.

 

FEWER LISTINGS AND QUICKER CLOSINGS = FASTER DECISION MAKING

It’s been happening for a while now and things don’t seem to be slowing down.  The threat of rising interest rates, along with rising home prices and a shortage of listings, is forcing buyers to make decisions more quickly. 

The best advice I can offer is to make certain you know what you want, decide what you can afford to spend, and get pre-approved prior to the home searching process.  Being realistic when you begin your search is especially important today when there are fewer homes on the market.

It’s important to work with a competent, experienced real estate Broker who can help you beforehand so you won’t be disappointed along the way.  We do the homework for you and help you find the right property based on a detailed determination of your wants, needs, and budget. 

Bidding wars are becoming more common and you don’t want to find yourself in a situation where you might “win” the battle but “lose” the war.  We can help you know when it’s best to walk away.  There’s always another home, maybe one that’s even better suited for your family.

And, while there are fewer homes for sale, I’ve found that if you broaden your search criteria just a bit, you’ll find there are homes available in most neighborhoods and in most price ranges. 

If you or any family member or co-worker are ready to make the move, please call me today and let’s get the process started.  A new home can be simply a quick phone call away and you can reach me at 598.3200.

 

YELLEN SIGNALS FED RATE MAP STILL POINTS UP FOR 2015

The Wall Street Journal, 7.11-12, 2015, The Gazette, 7.16.15

Federal Reserve Chairwoman Janet Yellen reaffirmed plans for the Fed to start raising short-term interest rates later this year and highlighted tentative signs that wages are rising as the labor market tightens. 

“I expect that it will be appropriate at some point later this year to take the first step to raise the federal-funds rate and thus begin normalizing monetary policy”, she said in remarks to the City Club of Cleveland. 

She emphasized that “the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate the first step.”

Bottom Line?  It could be sooner, it could be later, but it’s going to happen!  The historically low interest rates will be a thing of the past in the near future and now is the time to lock in rates that will mean lower monthly payments for you.  While a home may cost you a little more, you can still get more for your present home…BUT…lower interest rates are not going to hang around forever.  If you’ve been sitting on the fence, now’s the time to get moving.  There’s still time, but it soon may not be on your side! 

 

8 AVOIDABLE MISTAKES FIRST-TIME HOMEBUYERS KEEP MAKING

Housingwire, 7.2.15

Buying a home is one of the biggest financial decisions a person will make and all it takes is one bad or misinformed decision to mess up the whole process.  When it’s a first home, it’s even more important to pay attention to detail, because lack of experience can be a detriment.

If you or anyone you know are thinking about buying a first home, please take a minute to read these avoidable mistakes to help make the process as stress free as possible.

1. They don’t watch their finances before buying a home. 

This includes watching your credit, taking on too much debt right beforehand or making a big purchase right before closing.

Debt-to-income ratio is a huge deciding factor on credit scores and it’s one of the first things lenders look at when putting together a mortgage.  The more debt, the less of a loan you can get.  And lenders look again right before closing to make sure nothing has changed.  So hold off plans to make any big purchases.

2. They don’t take the time to get pre-approved before house hunting

It’s important to know what you can afford prior to looking.  Most real estate Brokers won’t show potential homes without a prequalification letter in hand, and some won’t do anything without the pre-approval. 

3. They take on more than they can handle financially.

Many first-time homebuyers assume that just because they can afford the house means they can afford to live there.  That’s not always so.  There are many costs associated with homeownership that often get overlooked by someone who has never owned a home before.

4. They get into a fixer upper they don’t have time or money to fix. 

While fixer uppers can often seem like a bargain, home renovations are not quite as simple as television shows make them appear.  The average person doesn’t have unlimited budgets and round-the-clock time to invest and the novelty can wear off quickly.  Fixer uppers can often become a drain in time and money.

5. They prioritize the home over the neighborhood.

When looking for the dream home in the dream neighborhood, many realize just how far outside their budgets that home can be, especially in big cities and affluent suburbs.  It can be tempting to look for that same dream home, but in a neighborhood that might not be the right one for their particular needs. 

6. They put all their eggs in the online basket

While the Internet can be an invaluable tool for potential homebuyers, it can never take the place of a reputable team of professionals who can physically meet with you to determine exactly what is necessary to get the process going from start to closing.

7. They spend all their money on the down payment.

Often first time homebuyers save and then spend every last dollar on the down payment, not leaving them anything for additional costs or emergency personal situations that may occur.

8. They skip the home inspection.

Skipping the home inspection might seem like an easy way to save money to some people because they feel that there is nothing that can be found to change their mind about buying the house.  That is until they move in and realize that there are major and very costly maintenance problems such as mold, termites, a leaking roof, or electrical or foundation problems. 

Please share these common avoidable mistakes with anyone you might know who is thinking of first time home buying.  And then please send them to me.  I can make certain that these mistakes are ones they will avoid on their way to becoming a responsible home owner and can make the entire process one that will make them excited rather than disappointed when it comes to one of life’s biggest decisions. 

 

HARRY’S JOKES OF THE DAY

 

 

 

                                                

July 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.

JUNE LOCAL STATISTICS CONTINUE THE POSITIVE GROWTH TREND

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

PPAR released June statistics last week and once again, I am thrilled to report that things are looking very good for the Pikes Peak Region in the Residential real estate market. 

June was the eleventh straight monthly increase in sales and the second straight month where prices climbed to record highs in the Colorado Springs area. The cumulative year-to-date sales in Single Family/Patio Homes was 20% over the same period last year and Condo/Townhomes cumulative sales were 45.3% over last year same period. 

New Single Family/Patio Home listings for the month of June 2015 were up 3.6 over June 2014 and listings on Condo/Townhomes were up 6.4% over the same month last year. 

The fastest moving segment of the local market appears to be homes priced at $350,000 and below, yet sales are picking up in the higher price ranges as well. 

This trend seems to be saying that homeowners are starting to realize that as the job market, economy and home prices stabilize, mortgage interest rates will rise, and with them will go the probably “once-in-our-lifetime” chance for historically low rates.  “Act now” is most definitely on most people’s minds.

As a matter of fact, in Saturday’s Wall Street Journal Janet Yellen, Federal Reserve Chairwoman reaffirmed the central bank’s intent to start raising the short-term U.S. interest rates later this year.  In remarks made to the City Club of Cleveland, she indicated that she expects that “it will be appropriate at some point later this year to take the first step… but the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate this first step.”  So, it could be sooner or it could be later, but it’s going to happen.

We are now seeing a few more listings than in recent months as folks look to sell and trade up or relocate to a new neighborhood.  With additional equity likely available, homes that were once underwater are now providing means to trade up. 

As rental rates rise, those looking for investment properties are looking at the possibility of higher rental incomes.  And first time buyers are starting to take advantage of the new options that make owning a home a good choice for them. 

With job announcements from Raytheon, a new medical complex in the works for Penrose-St. Francis Health Services and on-going expansion at UCCS, the Colorado Springs housing market is primed for solid growth. 

All in all it’s a good time for Residential real estate.  If you are in the market, there are homes available in most neighborhoods and in most price ranges.  Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how we can find just the right home to fit your wants, needs and budget. 

Here are some highlights from the June 2015 PPAR report.  Please click here to view the detailed 13-pages. The included charts will show you just how positive these statistics are. If you have any questions, as always, just give me a call.

In comparing June 2015 to June 2014 in PPAR:                       

                        Single Family/Patio Homes:

• New Listings are 1881, Up 3.6%
• Number of Sales are 1,401, Up 17.5%
• Average Sales Price is $279,241, Up 4.4%
• Median Sales Price is $250,000, Up 5.5%
• Total Active Listings are 3,173, Up 5.5%

 

                        Condo/Townhomes:

• New Listings are 217, Up 6.4%
• Number of Sales are 212, Up 45.2%
• Average Sales Price is $166,342, Down 4.2%
• Median Sales Price is $151,250, Down 2.5%
• Total Active Listings are 291, Down 32.2%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $418,000                              $437,054

Briargate                                  $342,400                             $358,994

Central                                     $217,000                              $225,721

East                                          $190,500                              $218,427

Fountain Valley:                      $217,500                              $216,490

Manitou Springs:                    $334,500                              $337,300

Marksheffel:                             $258,000                              $272,996

Northeast:                                $239,000                              $255,624

Northgate:                                $365,999                              $387,830         

Northwest:                               $336,500                              $359,462

Old Colorado City:                  $210,000                              $243,175

Powers:                                    $236,500                              $247,571

Southwest:                              $308,750                              $352,271

Tri-Lakes:                                $415,500                              $445,553

West:                                         $201,000                              $240,126

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

 

A REMINDER ABOUT SKY SOX TICKETS

We have 4 front row seats located directly behind the Sky Sox dugout that can be yours free for the asking.  Don’t forget to request tickets early so you can attend the game of your choice.  They are on a first-come, first-served basis so give me a call today to reserve yours. 

 

HARRY’S JOKE OF THE DAY

 

                                                            

June 29, 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.

                                                

BUYERS FLOCKING TO housing market

The Associate Press, 6.23.15, The Wall Street Journal, 6.22.15

Home sales across the U.S. are headed toward their best year since 2007.  Yes, folks, real estate is a hot commodity again and prices are reflecting that.  With a strong job market, still historically low interest rates and new incentives for first-time buyers, pressure is mounting for buyers to act fast or possibly miss out.

NAR reported last week that national sales of existing homes climbed 5.1 percent last month to a seasonally adjusted annual rate of 5.35 million.  And May was the third consecutive month of the sales rate exceeding 5 million homes.

Factors helping this buying surge include a lower unemployment rate and still affordable mortgage rates.  More Americans feel secure enough, or have recovered sufficiently from the housing bust, to consider a move. 

Listings are still not keeping up with sales, thus fueling higher price gains.  Nationally, the Median home price climbed 7.9 percent over the past year to $228,700, just $1,700 shy of the peak in July 2006. In the first quarter of 2015, 51 metro areas posted double-digit percentage price gains.

First timers, aided by the new regulations, made up 32 percent of homes sold last month nationally, compared to 27 percent a year ago.  This is promising, but still behind the historically average of first-time buyers composing 40 percent of the market.

Prices and property values in the Pikes Peak area have risen in 12 of the last 13 months in a year-over-year basis according to PPAR and the median price of a local single-family sold in May rose to a record high of $243,000. 

Our area’s unemployment rate remains at its lowest level since right before the 2008 financial crisis and this is contributing to the surge of home buying locally.

While mortgage rates are still low, they are beginning to rise as the Federal Reserve prepares for an interest rate hike for the first time in nearly a decade.  Many folks are realizing that if they don’t buy now, they face the possibility of not only paying more for their home, but also paying higher monthly payments.

For five years, mortgage rates have hovered around 50-year lows and most economists believe this will start to reverse if and when the Fed begins to raise rates.  While modest increases may knock some potential buyers out of the market, many economists feel that most home buyers will hang in there because the monthly cost of an average-size home remains relatively affordable when compared with average incomes.  Apartment rent increases will also keep those wishing to own their own home in the market.

As I’ve been advising you for months, if you are sitting on the fence, now is the time to act.  Prices are continuing to rise and interest rates aren’t going to get any lower, and the longer you wait, the less opportunity you have to take advantage of the present housing market. 

Those of you who have waited out the recession now have equity again building in your home, and with prices steadily increasing, have an excellent opportunity to trade up or make a move to a new neighborhood.  You can still take advantage of a low interest rate, probably one much better than what you currently have.  And while there aren’t as many homes to choose from, there are still homes available in most neighborhoods and more than likely one just right to fit your present wants, needs and budget. 

With rental prices on the upswing, investment properties are still a good option for those in the market, but I wouldn’t advise waiting too long as home prices are rising steadily and there are not as many “bargains” as in the recent past.

If you or any family member or co-worker is even considering a move, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see what we can do to help you achieve your home ownership goals.  I’d hate to see anyone miss out on this “once-in-our-lifetime” housing market that’s sure to be a “thing of the past” in months and years to come.

 

5 STATISTICS TO GAUGE THE housing market

REALTORMag 6.22.15

This is an overview from last week’s NAR report on U.S. housing:

1. Inventory:  Total housing inventory rose 3.2 percent to 2.29 million existing homes available for sale by the end of May.  That is 1.8 percent higher than a year ago.  Unsold inventory currently is at a 5.1-month supply at the current sales pace, down from 5.2 months in April.  

​​

2. Home Prices:  The median existing-home price for all housing types was $228,700 in May—nearly 8 percent above May 2014 homes prices.

​​

3. Days on the Market:  Properties typically stayed on the market for 40 days in May, up from 39 days in April.  Still, that marks the third shortest time since NAR began tracking days on the market in May 2011.  Forty-five percent of homes sold in May were on the market for less than a month.

​​

4. All-cash sales:  All-cash sales comprised 24 percent of transactions in May, down considerably from a year ago when they made up 32 percent of transactions.  Individual investors, who account for the bulk of cash sales, purchased 14 percent of homes last month, down from 16 percent a year ago.  Sixty-seven percent of investors paid cash in May.

​​

5. Distressed sales:  Foreclosures and short sales remained at 10 percent for the third consecutive month in May.  Distressed sales are below the 11 percent share a year ago.  Seven percent of May sales were foreclosures and 3 percent were short sales.  Foreclosures sold for an average discount of 15 percent below market value in May while short sales were also discounted 16 percent.

 

LOCAL MARKET UPDATE AND MONTHLY INDICATORS

Pikes Peak REALTORS Services Corp.,

I just received a report from PPAR that gives complete details on housing activity for El Paso and Teller Counties for the month of May.  It is all such positive news that I wanted to share it with you.  You can click here to read the16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 31-page Local Market Update.

If you have any questions concerning the report, or any other real estate concerns, please give me a call.

 

GOOD NEWS FOR HOMEOWNERS—90% OF PROPERTIES NOW HAVE EQUITY

REALTORMag, 6.17.15

During the first quarter of 2015, approximately 254,000 properties regained equity according to CoreLogic’s latest equity report.  This brings the total number of U.S. residential properties that have equity to about 44.9 million—or 90 percent—at the end of the first quarter.

According to Frank Nothaft, chief economist for CoreLogic, “About 90 percent of homeowners now have housing equity, and, as a result, have experienced an increase in wealth, which can spur additional consumption and investment expenditures.  The remaining 10 percent of owners with negative equity will find their home value rising while they continue to pay down principal on their amortizing mortgage loan.”

“Many homeowners are emerging from the negative equity trap, which bodes well for a continued recovery in the housing market,” says Anand Nallathambi, president and CEO of CoreLogic.  “With the economy improving and homeowners building equity, albeit slowly, the potential exists for an increase in housing stock available for sale, which would ease the current imbalance in supply and demand.  There are still about 5 million homeowners who are underwater and we estimate that a further appreciation in home values across the U.S. would reduce the number of owners with negative equity by about one million.”

The report indicates that the majority of positive equity properties are centered at the high end of the housing market, with 94 percent of homes valued at greater than $200,000 having equity, compared with 85 percent of homes valued at less than $200,000.

As I mentioned above, this is GREAT NEWS.  It gives those who couldn’t take advantage of the historically low interest rates an opportunity to sell and trade up and possibly lower their monthly payment in the process.  If you aren’t aware of the current value of your home and are thinking of selling, I would be happy to give you an estimate based on the home itself and the current comparables.  Again I would suggest you not wait too long as no one knows for certain when the interest rates will rise but we do know that they will.   

 

HARRY’S “NO JOKE” REMINDER…

“You Only Live Once”, AND…

 

HARRY’S JOKES OF THE DAY

 

 

 

 

 

 

 

                                                            

June 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.                          

                               

THE #1 REASON TO BUY RIGHT NOW...THE MONEY!!

Keeping current matters 6.9.15

Here we go again…I often feel like I’m repeating myself but my clients keep asking and I keep saying---if you’ve even been considering a residential home purchase, NOW is the time to start acting on that.  

Recent data backs me up:

• “The current tightness of supply conditions would normally be consistent with much faster price growth.  The continued steady growth in home sales that we expect this year will only add to this upward pressure on prices.” -- Ed Stansfield, chief property economist at Capital Economics

 

• “The S & P/Case Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a 4.1% annual gain in March 2015…with a 0.8% increase for the month.” -- Case Shiller Home Price Index

 

• “All signs are pointing toward continued price appreciation throughout 2015…Tight inventories, job growth and the impact of demographics and household formation are pushing price levels in many states toward record levels.”  -- Anand Nallathambi, CEO of CoreLogic

 

• “Even with further acceleration, the pace of price growth remains too high.  Strong buyer demand and low inventories coupled with relatively low new construction are helping to push prices up, keeping the housing market tipped in favor of sellers.”  -- Danielle Hale, Director of Housing Statistics at NAR

 

• “The first quarter saw strong and widespread home price growth throughout most of the country.  Home prices are now, on average, roughly 20% above where there were three years ago.  This run-up has been historically exceptional and is particularly notable in light of the limited household income growth and modest rate of overall inflation observed during that same time period.” -- FHFA Principal Economist Andrew Lerventis

Bottom Line:  Considering that a home makes up the greatest percentage of accumulated wealth in most families, waiting to buy probably doesn’t make much sense from a purely pricing standpoint.

If you, or any family member or co-worker has been waiting to sell and trade up, or buy for the first time or for investment purposes—don’t delay much longer.  Give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how we can start the process of letting your home put equity in your pocket.

 

housing market ON TRACK FOR BEST YEAR SINCE 2006…COLORADO REALTORS HAVE HIGHEST MEDIAN PRICE RISE EXPECTATIONS

RealtorMag, 6.9.15  &6 11.15

Now at its midpoint in 2015, the residential real estate market is on track for its best year since the peak of the housing bubble in 2006 according to Jonathan Smoke, chief economist for realtor.com.  The good news is that this time it’s NOT a housing bubble, Smoke noted.

With the median home prices rising 9% in April year-over-year, homeowners are seeing strong gains in equity lately.

In a survey conducted by the New York Federal Reserve Bank, both renters and homeowners expect prices to continue to increase in the coming year, but renters expect to face more price growth.

The Fed survey shows that, as prices grow, consumers’ attitudes toward housing as a financial investment remain positive.  More than 60% of renters and owners believe that buying a property in their ZIP code is a good investment, while only 10% consider it a bad investment.  Even better, the percentage of homeowners who believe housing is a good investment rose from 58.5% in the 2014 survey to 63.2% in this recent survey.

And the latest ‘REALTORS Confidence Index” indicates that Realtors are also growing more upbeat and expect prices to increase at a slightly faster pace in the next 12 months.  Those surveyed expect the median price growth in the next 12 months to be 3.9% nationwide. Of special note to you, my readers…Colorado Realtors reported the highest price expectations, with median growth expected at 6%.
 

The good news just keeps coming…

Fannie Mae’s May 2015 National Housing Survey indicates that Americans’ attitudes about the housing market are strengthening, which coincides with recent forecasts that predict a pickup in housing activity for the year.

The recent survey indicated more consumers reported an increase in household income, which is nearing an all-time-high for the survey.  The percentage of consumers surveyed that said their household income is “significantly higher” than 12 months ago grew six percentage points to 28% over the past two months.

According to the report, “as job growth appears to be driving meaningful income growth, the outlook for housing market growth also is improving”.

Notable, too, is that the share of consumers who say now is a good time to sell a home continues to rise, also reaching a survey all-time-high in May--49% of respondents.  And the number of consumers wanting to buy rather than rent on their next housing move rose three percentage points to 66%.

Doug Duncan, senior vice president and chief economist at Fannie Mae, notes that the survey high of those who say it’s a good time to sell, as well as the growing percentage of consumers who say their household income is significantly higher than last year, indicate “things are looking up for housing”.

“We have found that these two indicators—good time to sell and income growth—are key drivers for the performance of the housing market.  The increase in these indicators suggest our forecast of moderate improvement in the housing market in 2015 is on course and mirrors the near-term performance of other leading market data, including mortgage applications and pending home sales,” he added.

Lots of statistics, but all consistent in the fact that home ownership is a good investment and one that can provide substantial equity over time, especially during this “non-bubble” median housing price rise.

 

MORTGAGE RATES RISING

The Wall Street Journal, 6.12.15

With the good news of median home price increases and job growth comes the reality that the historically low interest rates we’ve seen in the past few years are most likely going to climb too.  The positive economic data you just read boosted the confidence among many traders that the Federal Reserve will raise short-term rates later this year for the first time since 2006.

This past week saw mortgage rates going above 4% for the first time this year.  The mortgage rate increase from 3.87% to 4.04% on 30-year, fixed-rate loans was the sharpest since 2013 and was similar to the one-week advance in May 2013 when then Fed Chairman Ben Bernake suggested the Fed would soon slow its bond-buying stimulus program.

However, according to Donald Frommeyer, CEO of the National Association of Mortgage Brokers, “rates are still pretty good.  I haven’t had anybody tell me that rates are too high now.” 

The National Association of Realtors said two weeks ago that its pending-home-sales index, which is based on contract signings for purchases of previously owned homes, increased 3.4% in April to its highest level in nine years. 

Many in the housing industry say that to the extent higher interest rates reflect a more robust economy and wage growth, they shouldn’t harm the housing market. 

Bottom Line:  While interest rates are rising and will likely continue to at a slow pace, they are still historically low and if you want to take advantage of this possibly “once-in-our-lifetime” mortgage rate scenario, don’t wait too long.  It won’t be here forever.

 

LOCAL HIRING OUTLOOK LOOKS GOOD

The Gazette, 6.9.15

With the best hiring outlook since second quarter 2007, the percentage of Colorado Springs employers planning to hire in the July-to-September quarter exceeds those planning cuts by 26 percentage points. 

According to a survey by staffing firm ManpowerGroup, 30 percent of local employers intend to add staff and only four percent anticipate reductions.  The remaining employers don’t expect any changes in staff levels. 

Another indicator of our improving job market comes from estimates released in May by the Colorado Department of Labor and Employment that showed a 3 percent growth year-over-year for March—the highest in almost nine years.

The survey placed Colorado Springs in a six-way tie for 15^th best among the nation’s 100 largest metropolitan areas—with Albuquerque, N.M; Greenville, S.C.; Minneapolis, MN; Oxnard, CA and Providence, R.I.

For four consecutive quarters the local hiring outlook has been more optimistic than the same quarter a year earlier. 

“This is good news, and it reflects the national numbers with much of the growth coming from construction,” said Tatiana Bailey, director of the Southern Colorado Economic Forum.  “We are seeing strong consumer sentiment—people are confident enough to buy houses and other big-ticket items.”

As you read earlier, more jobs translate into more home sales and that in turn helps increase home prices.  It’s a “Win-Win” all around and especially so for Colorado Springs homeowners.

 

U.S. HOUSEHOLD WEALTH HITS NEW HIGH

The Associate Press, 6.12.15

The Federal Reserve announced last week that the value of Americans’ stock holdings, real estate and other assets rose to a new high of $84.9 trillion from $83.3 trillion in the first quarter of 2015.

While the typical household isn’t necessarily benefitting since only 10% of the richest households own 80 percent of stocks, there are signs that Americans are continuing to repair their finances, which could help the economy in the long run.

In another win for the American Dream, rising home prices are helping to rebuild Americans’ ownership of their homes and home equity was equal to 55.6% of the value of U.S. housing in the first quarter, the highest ratio in more than eight years.  This is great news, especially since the majority of Americans consider a home to be their greatest financial asset. 

 

SKY SOX TICKETS GOING FAST

Another reminder—I still have tickets available to a number of Sky Sox games but they are going quickly now that the weather has improved.  There are four first row tickets behind the Sky Sox dugout available at no charge on a first-come, first served basis.  Just give me a call at 598.3200 and I’ll be happy to reserve them for you.

 

HARRY’S JOKE OF THE DAY

 

 

 

 

 

                                                

June 2, 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.

 

A” SHOUT-OUT” TO STEVE BACH AND JOHN SUTHERS…

I want to take a moment to thank Colorado Springs Mayor Steve Bach for his leadership as the first “strong” mayor in the City’s history and to wish incoming Mayor John Suthers much success in leading his “hometown”. 

Having worked with both of these men over the years, I have the utmost respect and admiration for the time and dedication they have given, and continue to give, to our City. 

So…Thank You, Steve for your service…and Best Wishes, John in making the transition to Mayor of Colorado Springs, effective today.

 

MAY LOCAL STATISTICS CONTINUE THE POSITIVE GROWTH TREND

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

PPAR released May statistics late yesterday afternoon and I waited to share what I anticipated to be more good news, thus the eNewsletter coming to you a day later than usual.

Once again, I am thrilled to report that things are looking very good for the Pikes Peak Region in the Residential real estate market. 

May was the tenth straight monthly increase in sales.  In comparing month over month, May 2015 to April 2015, the number of sales in Single-family/Patio Homes is up 24.3%, with the Average Sales Price up 4.2% and the Median Sales Price up 3.4%. New listings were up just slightly (0.4%) over April.  In the Condo/Townhomes category, everything but new listings is up from April. 

Also taking into consideration the very positive year-over-year statistics shown below, you can see that these numbers reflect strong consumer confidence along with low, but slowly rising, interest rates that many buyers feel will soon go higher.  “Act now” continues to be the current norm.

Listing numbers continue to drop, both locally and on the national level.  With rental rates rising and first-time buyers becoming more active, we are most definitely facing a Seller’s Market.  That doesn’t mean you won’t be able to find the home you might be looking for, but it does mean that you might have others who want the same property. 

I still find that most of my buyers are able to sell and trade up as long as they are realistic about the current market conditions and are able to make a quick decision once they find the property they want to buy. 

Here are some highlights from the May 2015 PPAR report.  Please click here to view the detailed 13-pages. The included charts will show you just how positive these statistics are. If you have any questions, as always, just give me a call at 598.3200.

In comparing May 2015 to May 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1839 Down 2.5%
• Number of Sales are 1,397, Up 24.3%
• Average Sales Price is $276,946, Up 13.9%
• Median Sales Price is $243,000, Up 12.4%
• Total Active Listings are 2,889, Down 27.9%

                        Condo/Townhomes:

• New Listings are 218, Up 3.8%
• Number of Sales are 207 Up 43.8%
• Average Sales Price is $172,126, Down 1.2%
• Median Sales Price is $156,000, Up 4.0%
• Total Active Listings are 286, Down 32.7%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $435,000                              $455,698

Briargate                                  $310,000                             $322,419        

Central                                      $201,500                              $228,074

East                                           $210,950                              $219,858

Fountain Valley:                       $208,000                              $207,255

Manitou Springs:                      $242,100                              $252,025

Marksheffel:                              $259,450                              $274,845

Northeast:                                 $231,750                              $258,919

Northgate:                                 $387,000                              $449,891          

Northwest:                                $339,375                              $368,894

Old Colorado City:                   $200,000                              $229,287

Powers:                                     $229,700                              $238,794

Southwest:                                $358,000                              $431,348

Tri-Lakes:                                  $417,000                              $440,483

West:                                         $224,500                              $252,084

*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, May 2015

The First Quarter 2015 Update on the El Paso County Economy, including housing trends, was published last week and you can click here to read the 9-page report in full.  Here are some of the highlights I thought you would find interesting:

• Single-family permit activity has trended upward over the past five years.
• The year-to-date-sales in the Pikes Peak Region are also continuing an upward trend.
• Active listings are lower than a year ago, but the average sales price of a home sold in March 2015 is 9.3% higher than March 2014.  This points to stability in the local real estate market, which is favorable.
• Foreclosures were 46.6% fewer than in the same period last year.

The next several sections of the report include:

• Colorado Springs Airport Trends
• Employment Trends and Wages
• Colorado Springs Sales Taxes
• New Car Registration Trends

It is with pleasure that Salzman real estate Services is able to share these types of statistics and forecasts with you as soon as they become available, each and every quarter.  We have been a supporter of the Southern Colorado Economic Forum since it was created by the UCCS College of Business in 1996.

This year the Forum is going to be held on Friday, October 23 and will be at The Broadmoor for the first time.  The program will feature an exciting keynote speaker and some new features that you won’t want to miss.  I’ll provide more details as they become available but you might want to mark your calendars now to save the date for this sure-to-be-sold-out event.

 

LOCAL COST OF LIVING AT 2-YEAR LOW, JOB MARKET BEST IN 9 YEARS

The Gazette, 5.28-29.15

The cost of living for Colorado Springs was 4.6% below the national average for the first quarter of 2015, according to a quarterly survey by the Council for Community and Economic Research.  Compared with 2.6% below for all of 2014, which was an 11-year high, this is great news.  Much of this is due to low gasoline and natural gas prices. 

Health care and miscellaneous goods and services were also lower, while first-quarter housing costs jumped from slightly below to slightly above the national average.

“This is confirmation that Colorado Springs is a very affordable place to live, work and own and operate a business,” said Dirk Draper, CEO of the Colorado Springs Regional Business Alliance.  “It also reflects a welcome slowdown in the trend of increasing costs.”

“It is a favorable reflection of our place among the other cities along the Front Range, particularly since our housing costs remain more affordable than other cities along the northern Front Range,” he added.

Not surprisingly, along with the lower cost of living comes the fastest job growth rate since 2006.  The latest estimates are from the Colorado Department of Labor and Employment and won’t be confirmed by the U.S. Bureau of Labor Statistics until its annual review process in March 2016, buy Alexandra Hall, the department’s chief economist expects the numbers to hold up.

“Colorado Springs, particularly over the past year or so, has seen a consistently strengthening economy,” Hall said.  “I don’t expect to see as much impact on the Colorado Springs economy from the slowing in the oil and gas industry that we will see in the rest of the state.”

Most of the job gains came from the health care and social assistance sector.  Other big gains came from tourism, construction and professional and technical services industries. 

 

MORTGAGE RATES NOW AT HIGHEST POINT THIS YEAR

Realtormag 5.29.15, The Wall Street Journal, 5.23-24.15

In its weekly mortgage market survey, Freddie Mac reported that fixed-rate mortgages moved to their highest point this year.  While still historically low, this is a fairly good indication of even higher rates to come. 

According to Janet Yellen, Federal Reserve Chairwoman, the central bank is on tract to raise interest rates this year but will likely do so cautiously as the job market hasn’t fully healed from the recession.  She indicated last Friday that it could take as long as several years before the Fed’s benchmark short-term rate is back to what the central bank considers “normal” in the long-run. 

However, the Labor Department reported signs that inflation is stabilizing, which should give the Fed more confidence when considering the rate raise. 

“I think it will be appropriate at some point this year to take the initial step to raise the federal-funds rate target and begin the process of normalizing monetary policy,” Ms. Yellen said last Friday.

What does this mean to you?  Well, rates ARE going up.  Maybe slowly for the time being, but as soon as the Fed feels confident the economy can handle it, they will go up even more.  For those waiting for lower rates, I would doubt that’s going to happen.  And while the rates are still low at present, again, that’s NOT going to last forever.  If you want to take advantage of what has been once-in-a-lifetime low mortgage interest rates, don’t delay. Enough said.

 

WHERE ARE PRICES HEADED IN THE NEXT 5 YEARS?

Keeping Current Matters, 5.26.15, pulseconomics, 5.15

Every quarter, Pulseonomics surveys a nationwide panel of more than one hundred economists, real estate experts and investment and market strategists about where prices are headed over the next five years.  Those are then averaged into a single number to get the results.  The latest survey of Quarter 2, 2015 shows the following:

• Home values will appreciate by 4.3% in 2015
• The cumulative appreciation will be 19.4% by 2019
• That means the average annual appreciation will be 3.6% over the next 5 years
• Even the experts making up the most bearish quartile of the survey are still projecting a cumulative appreciation of 11.8% by 2019

Here are a couple of graphs illustrating the survey results:

 

 

 

 

WAITING TO BUY A HOME COULD COST TENS OF THOUSANDS

Housingwire, 5.28.15

The first Opportunity Cost Report from realtor.com was released several days ago and it indicated that with interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today’s market have become quite steep.

Examining a wide range of factors, including the long-term impact of owning versus renting a home, the likely monetary gain renters forego in waiting to buy and the financial benefits of homeownership by market, the consensus was the time to buy is NOW.

“Current market conditions give buyers the opportunity to build substantial wealth in the long-term, compared with renters and later buyers, in advance of the projected increase in mortgage rates and continuing price appreciation,” said Jonathan Smoke, chief economist for reator.com.  “The problem is inventory is low, which has many would-be home buyers—especially first-timers—standing on the sidelines and missing out on potentially material financial gains.” 

Nationally, the estimated wealth an average buyer would accumulate over a 30-year period based on today’s dollars totals $217,726.

Bottom Line?  Once more, another good reason not to wait if you’ve been renting or considering a starter home.  If you or any family members are looking to be first-time homeowners, now is the time to make the move.  With new mortgage programs offering lower down payments and allowances for financial help from family members, now is an excellent time to get the process underway.  Give me a call at 598-3200 or email me at Harry@HarrySalzman.com and let’s see what we can do to help make your homeownership dreams a reality.

 

A REMINDER ABOUT SKY SOX TICKETS                                           

                           

Now that the rainy weather is gone, baseball games are back in full swing.  Don’t forget to get your request for tickets in early so you can attend the game of your choice.  We have 4 front row seats located directly behind the Sky Sox dugout that can be yours free for the asking.  They are on a first-come, first-served basis so give me a call today to reserve yours. 

 

HARRY’S JOKE OF THE DAY 

 

AND SOME THOUGHTS ON ATTITUDE I WANTED TO SHARE…

 

“Attitude is a little thing that makes a big difference.”  --Winston Churchill

 

“Ability is what you’re capable of doing. 

Motivation determines what you do.

Attitude determines how well you do it.”  --Lou Holtz

 

“Weakness of attitude becomes weakness of character.”  --Albert Einstein

 

 

 

Housing is on a steady path to recovery as I’ve just mentioned and home prices nationally have risen approximately 20% in the last three years, according to the Federal Housing Finance Agency (FHFA) and Standard & Poor’s (S & P) Case-Shiller house price indices—and both consumer and industry professionals expect this upward trend to continue through 2015.

The anticipated increase is the result of intersecting economic factors that make up the big picture that is today’s housing market.

What’s impacting prices now?

• Wages and inflation.  A recent study by RealtyTrac illustrates a disconnect between home price growth and wage growth, despite the improved economy.   Between 2012 and 2014 home prices increased by 17% while wages increased only 1.3%--a 13 to 1 disparity.  Also, home prices continue to outpace inflation rates according to S & P, growing twice as fast in 2014.

According to Nobel Laureate Robert Shiller, inflation rates likely affect home prices only indirectly.  Because pay increases often boost perceptions of buying power, inflation may have a greater impact on consumer confidence, which, in turn, could also boost housing activity.

 

• Interest Rates and Inventory.  Interest rates do tend to be influenced by inflation rates.  Mark Palim, Fannie Mae V.P., Economic & Strategic Research Group, says that while it’s reasonable to assume rising mortgage-interest rates equal falling house prices, there’s little evidence of a casual relationship between the two.  In fact, higher mortgage rates have a tendency to predicate a decrease in purchases rather than a dip in prices.

Interest rates DO play a role in overall affordability.  Today’s rates have significantly accelerated demand in many markets.

“The biggest factor in price gains has been the current low interest rates spurring demand,” says Gabe Sanders of BlueWater real estate in Stuart, FL.  “And our low inventory, which makes buyers willing to spend more, since they can’t find enough available in lower-priced properties.” 

In Sanders’ market, prices on the lower end have risen much more than those of mid-range, similar to those price increases in the Pikes Peak area.  This demonstrates what’s being experienced nationwide—escalating prices, due to a shortage of affordable listings—which have adversely tipped the scale, especially for first-time homebuyers.

The solution?  According to Lawrence Yun, new construction gains are essential to counter the lack of inventory and rise in prices.  He says that post-crash, single-family construction has been slow to pick up steam, primarily because of construction costs that fail to meet buyer expectations.

 

• Demographics.  Generational shifts have historically affected demand and caused price increases in the housing market.  Today this is due to baby boomers and millenials, although some of the latter have been priced out of the market due to statistically lower incomes and sluggish wage and job growth.  Too few first-time buyers are also hurting those seeking to sell and trade up or relocate. 

In some areas, such as Beverly Hills, international buyers are driving up prices to an all time high due to the area’s high-end status and temperate climate.  Hint to Pikes Peak area homeowners—let’s not tell them about all the wonderful reasons they might want to relocate here!

 

• Oil Prices.  Home prices in the near future could be affected by another distinct market trend.  With the decline in oil prices, markets with oil economies may see home prices drop at the end of the year into 2016, according to a report by Trulia.  On the other hand, non oil-producing markets, may see a boost in prices.  These findings are similar to oil and home price fluctuations since the 1980’s.

 

While many factors go into the home pricing scenario, these large-scale influencers play a predominant role.  Home prices in the Pikes Peak area are affected by decisions of the Department of Defense (DOD) and other factors that might not affect the country in general. 

As I’ve said time and again, there is a housing solution for most all who are looking.  That’s why it is so important to find a knowledgeable, competent real estate Professional to help you navigate through the home Buying and Selling waters.  

We do the homework, know the area and can help you price your current home right.  Too high won’t get potential buyers, and too low will leave money on the table—neither one a good option.  And most importantly, we work for you.  Your goals become ours and since we are not as emotionally involved, we can help keep you on track when you possibly find yourself in a bidding war when buying a home.  “Winning the battle but losing the war” is NOT the outcome a good real estate Professional advocates for you. 

 

FIVE MISTAKES PEOPLE MAKE WHEN SELLING A HOME

Cheatsheet.com 4.13.15, Realtor mag, 4.13.15

A survey by the NAR found that 83% of people view their home as a good financial investment.  Not only is it a good investment, but it’s also filled with tons of personal memories since the average homeowner has lived in his or her home for a decade or more.  Therefore, when it’s time to sell, no matter the reason, it’s easy to become more than a little emotional.  Another reason to consult a knowledgeable, competent real estate Professional.

Letting emotions, rather than knowledge, drive home selling decisions can make it difficult to find a buyer or force you into accepting a lower price than you might like.

The best news is that the market is tight and it’s a Seller’s Market at the moment.  That’s pushing up prices and the NAR says that “the typical seller receives 97% of his final asking price and the home was on the market for about a month.”

That doesn’t mean every home sells quickly or every seller gets the price they wanted, but the chances are much better if you avoid these five mistakes when listing your home.

1. Not being realistic about your home’s value.  What you think your home is worth and what you can actually sell it for are often two very different numbers.  Unfortunately nobody cares what you paid for it nor what you put into it.  All that matters is what you can realistically sell it for today. 

Even in a Seller’s Market you need to be careful to price your home realistically.  Properties that are overpriced at the outset tend to eventually sell at a lower price than they would if they had been appropriately priced in the first place.

Choose a price based on factors like comparables and appraised value.  If you’re not getting any interest, adjust your strategy.  According to an article by a Realtor in The Washington Post, “no offers within a 30-day period means the price is too high”.

 

2. Not making your home looks its best.  Simply from watching HGTV and the like, we now know that good staging and curb appeal help to sell homes.  “At a minimum, homeowners should conduct a thorough cleaning, haul out clutter, make sure the home is well-lit and fix any major aesthetic issues,” said Chris Polychron, President of NAR, in a statement about the value of home staging.  Simply repainting with neutral colors, sprucing up landscaping or purchasing new furniture can help.  According to the real estate Staging Association, “Overall, professionally staged homes can sell five to seven times faster than non-staged homes”.

 

3. Refusing to negotiate.  When setting a fair and reasonable price for your home you should build in some “wiggle room”, especially if you need to sell quickly.  Many buyers want to feel they are getting the best deal on what is probably the biggest purchase of their lives.  Therefore, most will make an offer considerably below your asking price, particularly if they think it’s a buyer’s market. 

You can make your buyers happy while also getting the price you need by being willing to accept slightly less than asking price for your home.  Alternately, you might agree to concessions like paying the closing costs, throwing in extra appliances or making certain repairs to the property in order to sweeten the deal.  An experienced Broker like me can help you negotiate the tricky dance of getting the price you want without scaring off a potential buyer. 

 

4. Hiding the truth about your home.  Trying to cover up or hide problems with the home from potential buyers is not a good idea.  Serious flaws, like foundation problems, leaky roofs, or mold, could come to haunt you later.  If you aren’t upfront about the problems at the start, the buyer will likely find them out during the home inspection.  This could result in the buyer withdrawing his offer or asking you to fix the problem.  If the issue is serious enough and isn’t discovered until after the sale, this could result in costly litigation.

Zillow, the real estate website, recommends being upfront with both your listing Broker and your buyer about any potential issues with your home.  You can then price the home accordingly and document the problems you’re aware of and have the buyer sign off on them to avoid legal issues later. 

 

5. Not having a backup plan.  In a perfect world, you sell your current home and buy a new one without any difficulty.  In reality, that’s not always the case, especially in a Seller’s Market.  Smart sellers have contingency plans in place to avoid either getting stuck with two mortgages at once or not having a place to live, or to protect them if a deal falls through.

You may want to be prepared to find temporary housing, like a rental or staying with family if your home sells too quickly.  If you must move before selling your current home, make sure you’ve budgeted enough to afford carrying the cost of the old home.  And lastly, if there are multiple people interested in your home, you may be able to accept backup offers, which involve agreeing to sell to a second buyer if the first one backs out.

 

Planning ahead can most certainly help when it comes to selling your home.  Today’s market, with faster turnaround times, makes it even more crucial that you have a good idea of your next move and be ready to carry though on it.  A little forethought can save you a lot of potential headaches down the stretch. 

 

SKY SOX TICKETS ARE YOURS FOR THE ASKING

Just a reminder that baseball season is in full swing and Salzman real estate Services has four first row seats, right behind the Sky Sox dugout.  These are available for free on a first-come, first served basis.  They go quickly, so please call 598.3200 and let me know what game you’d like tickets for and I will put them aside for you to pickup prior to the game.

 

HARRY’S JOKES OF THE DAY

A real-estate agent, had difficulty getting a listing from a customer whose theory was that "there is no substitute for experience." After he asked her a third time how many years she had been in the business, she told him: "Sir, 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!" She got the listing.

------------------------------------

A broker was dismayed when a brand new real estate office 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 broker panicked, until he got an idea. He put the biggest sign of all over his own real estate office. It read: 'MAIN ENTRANCE'.