Real Estate Information

                                                

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.  

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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.

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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.

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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.

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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'.

           

 

                                                

May 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.

 

APRIL LOCAL STATISTICS CONTINUE THE POSITIVE GROWTH TREND

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

PPAR released April statistics on Friday and I am thrilled to report that things are continuing to look very good for the Pikes Peak Region in the Residential real estate market. 

April was the ninth straight monthly increase in sales. Sales in Single-family/Patio Homes were up 11.4% over March, with the Average Sales Price up 2.5% and the Median Sales Price up 4.4%. New listings were up 12.8% over March.  In the Condo/Townhomes category, everything but sales were up from March; however, year-over-year sales were up 37.2% as you will see. 

These numbers continue to reflect stronger consumer confidence along with continued historically low interest rates that many Buyers feel will soon go up.  “Act now” appears to be the current norm.

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

In comparing April 2015 to April 2014 in PPAR:                       

                        Single Family/Patio Homes:

• New Listings are 1831 Up 6.5%
• Number of Sales are 1,124, Up 21.9%
• Average Sales Price is $265,800, Up 10.3%
• Median Sales Price is $235,000, Up 10.1%
• Total Active Listings are 2,694, Down 27.0%

                        Condo/Townhomes:

• New Listings are 246, Up 24.9%
• Number of Sales are 129, Up 37.2%
• Average Sales Price is $166,814, Up 8.6%
• Median Sales Price is $145,000, Up 6.2%
• Total Active Listings are 281, Down 27.0%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $390,000                              $442,863

Briargate                                  $297,750                              $325,855        

Central                                      $180,000                              $222,440

East                                           $198,750                              $221,314

Fountain Valley:                       $206,000                              $209,831

Manitou Springs:                     $376,500                              $313,214

Marksheffel:                             $248,000                              $262,784

Northeast:                                $218,500                              $240,295

Northgate:                                $411,000                              $432,810           

Northwest:                                $317,000                              $336,953

Old Colorado City:                   $265,000                              $251,367

Powers:                                     $224,950                              $232,483

Southwest:                                $288,000                              $360,391

Tri-Lakes:                                  $368,000                              $404,367

West:                                         $252,000                              $270,181

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

 

THREE QUESTIONS TO ASK YOURSELF BEFORE BUYING A HOME

Keeping current matters, 4.21.15

If you are thinking about purchasing a home right now, there’s a lot of advice out there.  Friends and family as well as internet sites may have a lot of information, but it’s important to be fully aware of your actual needs and local real estate trends in order to make an informed decision.

There are three questions you should ask yourself before purchasing a home in today’s market:

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

This is by far the most important question to answer.  A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:

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

What non-financial benefits will you and your family derive from owning a home?  The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed? 

Home Price Expectation Survey, published every quarter, can provide a fair assessment.  Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts and investment and market strategists about where prices are headed over the next five years.  They then average the projections of all 100+ experts into a single number.  Here’s what the most recent survey revealed:

• Home values will appreciate by 4.4% in 2015.
• The cumulative appreciation will be 19.3% by 2019
• Even the experts making up the most bearish quartile of the survey are still projecting a cumulative appreciation of over 11.7% by 2019

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than prices.  The “long term cost” of a home can be dramatically impacted by an increase in mortgage rates.  The Mortgage Bankers Association (MBA), the NAR and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage point over the next twelve months.

I would stress one more important factor when making a decision about whether it’s the right time for you to buy a home.  Make certain you contact a competent, professional real estate Professional.  When presented with all your wants, needs, and budget constraints a competent broker can give you the best advice concerning today’s market and can address all your concerns prior to beginning the search.  And, if it appears that now is NOT the right time for your individual situation, he or she will be able to tell you that also. 

There have been more than several times in the last year that I have advised clients that it just didn’t make sense for them to purchase a home based on the information they provided me. 

I do the homework, know the market, and can help you make your home buying decision based on actual facts.  If you or any family member or co-worker is thinking of buying a home, please call me at 598.3200 or email me at Harry@HarrySalzman.com and let me help determine if it’s the best decision at the present time. 

 

NATIONAL HOME SALES AT 18-MONTH HIGH

RealtorMag 4.23.15, RisMedia, 4.30.15

Spring residential home sales are strong all over the country, with existing-home sales surging to the highest rate since September 2013.  More homes also went on the market, thus relieving some inventory constraints we’ve had, according to the latest NAR report.

Some highlights from the report:

• Properties typically stayed on the market for a shorter time in March than in February.  Short sales were on the market the longest, with foreclosures and non-distressed homes selling in one-third the time of short sales.  Forty percent of homes sold in March were on the market for less than a month.
• All-cash sales represented 24 percent of transactions in March, down from 33 percent a year ago.  Individual investors, who account for many cash sales, purchased 14 percent of the homes in March, vs. 17 percent a year ago.
• Distressed sales accounted for 10 percent of sales in March, down from 14 percent a year ago.

According to Lawrence Yun, chief economist for NAR, contract signings picked up in March as more buyers than usual entered this year’s competitive spring market.  “Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year,” he says.  “While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing inventors paying in cash is even better news.  It indicates this year’s activity is being driven by more long-term homeowners.”

Yun expects a gradual improvement in home sales in the months ahead but says insufficient supply and accelerating prices could be a drawback to sales reaching their full potential.

He added, ”The modest rise in housing supply at the end of the month despite the strong growth in sales is a welcome sign.  For sales to build upon the current pace, homeowners will increasingly need to be confident in their ability to sell their home while having enough time and choices to upgrade or downsize.  More listings and new-home construction are still needed to tame price growth and provide more opportunity for first-time buyers to enter the market.”

Bottom Line?  With prices increasing, housing supply better but still low, and the inevitability of mortgage interest rate increase—if you’ve been waiting—Wait No More.  Enough said.

 

SEVEN EFFICIENT TIPS FOR DOWNSIZERS

RisMedia, 4.25.15

Retirement goals have changed for many since the recession, with one major asset hanging in the balance—housing.

Though many Baby Boomers intend to “age in place” in their current homes, more than half will downsize either by buying a smaller home or one of equal size but with reduced expenses, according to the Demand Institute’s recent Housing & Community Survey.

There is growing debt in households where the head of the family is over 55 according to the Employee Benefit Research Institute.  Much of that debt is tied to mortgages, so downsizing may not only be preferable but could possibly be a necessity for some.

If you or a parent are looking to downsize in the foreseeable future, here are seven ways to pare down possessions.  Cutting down clutter not only helps in the downsizing, but helps make the current home more presentable to potential buyers.

1. Plan backwards from moving day.  Start downsizing three months prior to a planned move.  It is much easier to tackle one room at a time, especially for homeowners who have stayed put for many years. 

 

2. Stick to the OHIO rule.  “Only handle it once”.  It is best to avoid “maybe” plies, particularly when helping a parent who may have a hard time letting go.  Ask yourself or your parent if they would replace the item if it disappeared—this will help make the process feel less like a trashing of beloved possessions.

 

3. Remember more isn’t always better.  We all have duplicate items around “just in case” the original breaks but is it really necessary to have multiple sets of mixing bowls?  Don’t be afraid of purging duplicates.  The same holds true for clothes—don’t hold on to ones that don’t fit, but “may” fit one day. 

 

4. Scale back collections.  Cutting back on a collection can be upsetting for anyone, downsizing or not.  Because it took years to grow it, approach the process as gently, and practically, as possible.  Decide which items are favored more than others or limit the amount based on available space.  A bookshelf can only hold so many books, for example.

 

5. Get cash for your castoffs.  Following the previous three-month rule, if you’re planning to sell an item, start early.  Some things may not sell as quickly as you’d like and you don’t want to be burdened with things you no longer want come moving day.  Sites like eBay charge a selling fee, and some items sell better than others on Craigslist.  Doing a little research will result in the best place for you to sell.

 

6. Contact an auction house.  If you or your parent have an assortment of valuable items, like antique furniture or artwork, you might consider enlisting an auction house rather than an antique dealer.  Dealers want the most bang for their buck—not yours.  It is best to compile a list so that the items can be appraised in one visit.  An Estate Sales Group can help facilitate the sale or auction of high-end belongings, too.

 

7. Donate as much as you can.  When donating items to charitable organizations, parting with possessions is much more manageable.  Parents especially may feel less overwhelmed if they understand that their items are going to those in need.  In many areas, the Salvation Army or Goodwill can transport large items such as furniture or appliances.  Other household items or clothing can be donated to either of them or to a local charity of your or your parent’s choice.

 

HARRY’S JOKE OF THE DAY 

 

 

                                                            

April 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.

                                         

THE AMERICAN DREAM CAN BECOME A REALITY, EVEN WITH FINANCIAL SETBACKS OR LIMITED INCOME

The Wall Street Journal, 4.15

While Colorado Springs fared better than a lot of the country, a number of folks still found themselves forced into foreclosure or a short sale during the recession because of negative home equity or loss of income.  With the economy still in recovery, many people are finding that they can again qualify for a mortgage loan. 

Foreclosures and most negative credit events can stay on your credit report for as long as seven years.  Since the majority of the homes were lost to foreclosure between October 2007 and October 2008, many of those events will not show up on current credit reports.  As long as those affected have worked to keep their credit in good standing, borrowing for a home should become easier from here on. 

According to Mark Zandi, chief economist at Moody’s Analytics, “The dark shadow of the foreclosure crisis is finally beginning to fade.  That should be a positive for single-family housing and, by extension, for the broader economy.”

Some previously foreclosed homeowners have also been able to obtain new mortgages without waiting seven years.  The FHA allows borrowers who went through a full foreclosure and have repaired their credit to become eligible for an FHA-insured home loan just three years after a foreclosure is completed and even in as little as one year in rare circumstances.

Fannie Mae and Freddie Mac—which typically guarantee loans that have higher credit quality and lower costs for borrowers than those backed by the FHA—will back loans as little as two years after a short sale under certain circumstances such as a job loss.

The Wall Street Journal recently featured a column about a 30-year-old who is working to become a first-time homeowner.  Even thought he had a full-time position running the technology department of a Catholic high school and teaching classes there, he decided to get a second job at Starbucks in order to save faster for his family’s dream of homeownership.  While this is not an easy situation at present, he’s focused on knowing that eventually owning a home will be a vehicle to provide long-term equity.  It will also likely provide him with deductions that rent paying does not. 

I’ve told you about the new regulations now in effect for first-time homebuyers that require as little as 3% down and the allowance of down payments to come from family members.  These are other vehicles available to those who are finding the ability to move out of their parents’ homes for the first time.  With rents continuing an upward climb and vacancies down, it’s probably a good time to consider all the options available.

It appears that the Federal Reserve is not sold on raising rates in June, which is a plus for those who have not yet taken advantage of the historically low mortgage interest rates.  The raise WILL happen, but probably not quite as soon as we expected, more than likely in September according to predictions from Fannie Mae’s chief economist, Doug Duncan.     

Now is the time to act.  If you or any family member, co-worker or friend has shied away from homeownership due to a previous short sale or foreclosure, looking for a first-time buy, or simply looking for the “right” home to trade up or invest in, please call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s get together to see what we can do to help you realize your residential real estate dreams. 

 

NEW REGULATIONS FOR WATER HEATERS 

American Home Shield 4.15.15

New federal energy efficiency standards went into effect on 4.16.15 for the replacement and manufacturing of water heaters.  I attended a session explaining these regulations and feel it important to share them with you.

Key points of the new standards are:

• Gas, oil fired, electric, tabletop (low boy) and instant (tank-less) water heaters are included
• Existing functioning units do not require replacement
• Existing inventory can be sold and installed
• 55-gallon and larger gas units will implement condensing technology—impacting cost of unit, installation & new venting requirements.  This may require added electrical supply.  There is a required efficiency gain of about 30 percent.
• 55-gallon and larger electric units will implement heat pump technology—which will also impact costs.  Efficiency gains of 40 percent plus are required.
• “Standard” 40-50 gallon units will see moderate price increases.  Technology will remain the same in many instances.  Energy efficiency will largely be achieved through increased insulation.
• All water heaters are expected to be larger (1” x 3” for most, more for some).
• Structural modifications may be required for units located in small, tight spaces—crawl spaces, closets, under stairs, etc.

What does this mean to you? 

To begin, with, water heaters are one of the “big 3” when it comes to replacement so this could eventually result in higher costs for homeowners who have not “upgraded” any existing home warranties to provide for this possibility. Today’s 40-gallon water heater costs approximately $1500-$1600.  We have been told that to replace it, a new 40-gallon water heater could cost upwards of $4000.

It will also mean that when selling your home, or buying a new one, home inspectors will be looking at the water heater to specifically determine if it’s up to standards.

For those with a current home warranty, I would recommend you check with your warranty company to see if and how these new regulations affect you and your home.  Better to “be safe than sorry”.

If you are planning to Buy or Sell, I would suggest that you offer or ask for the “upgraded” level of Home Warranty coverage to help cover any unexpected events.  The additional cost, probably less than $50 for the higher coverage, will be a PLUS in both Buying and Selling a home.

 

BUYING V. RENTING?  A SMART DECISION IN MOST CASES

Realtor Mag, 4.13.15

Homeownership tends to be a smarter decision than renting for many Americans according to new research by Realty Trac.  This is particularly true when rental costs are skyrocketing and in many cases are higher than what a mortgage payment might be.

While homeownership is not for everyone, it makes good sense for many.

Lawrence Yun, NAR’s chief economist, says that families with homeownership tend to have a much higher net worth overall than renters.  Homeowners have the benefit from equity and long-term price appreciation.

NAR’s Economists’ Outlook Blog used the chart below to respond to Buyers’ concerns over “I can’t afford to Buy”.

                          

Over 30 years, a homeowner with a 30-year mortgage payment has a paid-off home while a renter has a stack of 360 rental receipts, analysts noted on the Blog.  The Blog also notes that the lifestyle and social benefits to homeownership show better education achievement by children and an increase in community involvement by homeowners. 

Think you or someone you know can’t afford to own a home?  Maybe you should think again, or at least check it out.  Give me a call and let me run the numbers to see if there is a way to turn a renter into a homeowner and help increase their net worth at the same time.

 

5 HOUSING TRENDS TO WATCH NOW

Ris Media, 4.18.15

While Spring tends to be the “perfect time” for Buying and Selling, don’t expect this year to be perfect--especially if you are a Buyer. 

Limited inventory of homes for sale is starting to increase competition among Buyers—with multiple offers on homes—even those in the high sales brackets. 

On the bright side, though, credit standards are looser than a year ago so you might find it a bit easier to obtain a mortgage.

Trending now:

1. Still Not Enough Homes.   Get ready to compete with other Buyers due to low inventories, which will likely continue.  The situation might worsen when interest rates finally go up, as homeowners may want to hold on to their lower interest rate mortgages. 

 

2. Possible Uptick in Mortgage Rates.  Probably not going to happen just yet, but Buyers and Sellers need to be prepared for this possibility by early Fall.

 

3. A Rise In Home Sales.  Home sales of previously owned homes are expected to rise about 8 percent this year, according to Jonathan Smoke, chief economist at realtor.com.  Home prices should also continue to increase, forecasted to go up 5 percent, Smoke added.  New homes should also rise, with the Mortgage Bankers Association (MBA) expecting a jump of 13 percent in sales in 2015.

 

4. An Increase In Credit Availability.  Credit availability is expected to continue to increase through the Spring, says Mike Fratantoni, chief economist for the MBA.  “I expect that credit availability will continue to slowly improve over the next couple of years….and another beneficial change is that FHA reduced mortgage insurance premiums in time for the Spring season,” he added. 

 

5. A Rise In High End Homes.  If you are looking for a vacation home or looking for a high end home, the market has heated up fast.  Sales of homes in the $750,000 to $1 million range grew 12.6 percent in February, compared with the previous February, according to NAR.  Baby Boomers and international Buyers are driving this surge, but the trend is also attributed to the threat of higher interest rates later this year.  Some lenders are saying that they tend to get a pickup in business when rates go up a bit because folks are worried they are about to lose the opportunity that’s been prevalent for while.

My advice?  There are still homes available in most price ranges and neighborhoods, although less than there were.  If you are in the market, don’t wait too long.  The above trends are proving realistic and things are sure to tighten up once the rates start rising.

 

MORE SPRING BUYING STRATEGIES

Realtor mag. 3.24.15

Just a few suggestions that will help in the Spring Buying Frenzy:

1. Step Away From The Computer.  Approximately 90% of home Buyers start their search on the computer, but Buyers should also consider going outside and canvassing their desired neighborhoods.  In today’s situation of low inventory, if you waste too much time the home you want may no longer be on the market.  You will need to be in a position to make a decision quickly.

 

2. Get To Know The Current housing market.  Every market and neighborhood is different so it’s important to do research on the area where you are thinking of buying.  Knowing market values is important so you will know when the right situation presents itself.  The more educated you are, the better you can make an informed decision.

 

3. Grab Those Low Mortgage Rate—Before It’s Too Late.  Mortgage rates are still hovering below 4% but it’s not realistic to assume they will stay that way as I mentioned several times earlier.  These low rates can make a difference in the home price-range you desire, so do not delay as time may not be on your side.

 

4. Create A Dynamic Team.  I cannot over-emphasize making certain you have a competent, knowledgeable real estate Professional by your side.  Before considering any move, it’s important to ensure you have someone working for you who can help you 1) do the necessary research, 2) get you pre-approved for the mortgage lending best for you and 3) who works with a competent home inspector.  With all of this in place, you are ready to make a move the minute you’ve found the “right” property. 

 

5. Be Prepared For Bidding Wars.  As mentioned earlier, this is a distinct possibility.  With a good team on your side, you will be more aware of the pros and cons of getting into a bidding war.  It’s often possible to “win the battle, but lose the war”, so to speak.  Having a competent real estate Professional on your team can make a big difference in these circumstances, especially when common sense oftentimes give way to desire for what you want.  It’s important to consider all options and your Real Estate Professional can be more objective than you might be in this situation.

What can I add?  Again, while it’s not the “Perfect Spring” for Buyers, having someone like me there for you will make all the difference and help alleviate a lot of the stress. 

 

HARRY’S JOKE OF THE DAY  

 

April 6, 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.

 

THANK YOU.  I’M HUMBLED BY THE MANY RESPONSES I RECEIVED

I’ve been writing this eNewsletter for around 12 years and often get responses for each issue and I try to respond to each.  That being said, the number of responses and emails I received this past week just blew me away.  I heard from clients and friends, some of whom I haven’t heard from since I sold them a home more than 20 years ago.  It was heartwarming to know that not only did you take the time to write me, but that you also take the time to read the eNewsletter. 

With the move and all that it entailed, I was not able to respond to the hundreds of emails I received so I want to take a minute now to thank you for all your good wishes.  As you might imagine, this was not an easy decision, and knowing that my clients and friends “have my back” and took the time to let me know, made it so much easier. 

I look forward to welcoming you all to my new office and to working with you again in all your Residential real estate needs.  For those of you who missed the article concerning my move last week in The Gazette, you can click here to read it. 

Again, thank you.  And now enough of me, let’s get on with the “news”:

                                                      

SPRING IS HERE…AND THE BALL IS IN YOUR COURT…LITERALLY

Baseball season begins this Thursday and as most of you are aware, Salzman real estate Services has four front row season tickets for all Colorado Springs Sky Sox home games.  These are available on a first-come, first-served basis so simply give me a call at 598.3200 or email me at Harry@HarrySalzman.com and get your requests in early.  Most Friday night games are followed by a fireworks display, so it’s a great family evening, compliments of me.

Big changes came with this season.  After 20 plus years of affiliation with the Colorado Rockies, the Sky Sox are now the AAA team affiliated with the Milwaukee Brewers.  This appears to be a great association and we look forward to another record setting season, especially in terms of game attendance.

Spring is also a time of “Residential real estate Frenzy” and this year seems to be starting early as those who have been waiting for either higher prices for their current homes or lower interest rates are finally waking up from hibernation and realizing that this could be the last chance for a great deal. 

I’ve been telling you about the predictions of higher interest rates and it appears that the Federal Reserve is finally going to be addressing this at their June meeting.  No one can predict the outcome.  However, I can predict that historically low interest rates won’t be around by this time next year or maybe even by the summer’s end. 

If you’ve been waiting for the “right” time, I’d suggest you wait no longer.  With fewer listings, it’s a great time to put your present home on the market.  While you won’t have as many choices as last year at this time, we can still help you find the home of your dreams that will fit your needs, wants and budget. 

An added advantage for first time homebuyers with good credit is the 3% down mortgage loans available through Fannie Mae and Freddie Mac.  Parents can also help out with down payments on most of these special loans so potential borrowers don’t have to show large savings deposits. 

I’ve given you my “pitch” and the “ball is in your court”.  Give me a call and let’s see what we can do to make your dreams a reality.  Time is no longer on your side and I’d like to see you take advantage of interest rates that we are not likely to see again for a long time, if ever. 

 

MARCH LOCAL STATISTICS CONTINUE TO SHOW POSITIVE RESULTS IN HOUSING

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

According to these statistics it does appear that the Spring Buying season began early again this year. The number of sales are up, the prices are up and homes are being listed, but not in the numbers of several years ago.  Some of that is due to foreclosures going steadily down and the recovery of equity that has helped some people keep their homes or borrow against it for home improvements.

March was the eighth straight monthly increase in sales.  With sales from January through March totaling 2,362, this was the best quarter for any year since 2006.  These numbers reflect stronger consumer confidence along with continued historically low interest rates that many Buyers feel will soon go up and don’t want to miss out on.

Here are some highlights from the monthly PPAR report.  Please click here to view the detailed 13-page report.  If you have any questions, please give me a call.

In comparing March 2015 to March 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1623, Up 1.8%
• Number of Sales are 1,009, Up 21.3%
• Average Sales Price is $259,352, Up 9.3%
• Median Sales Price is $225,000, Up 7.1%
• Total Active Listings are 2,538**

                        Condo/Townhomes:

• New Listings are 176, Down 4.3%
• Number of Sales are 151, Up 64.1%
• Average Sales Price is $153,200 , Up 2.4%
• Median Sales Price is $143,000, Up 10.5%
• Total Active Listings are 262**

**The Active numbers are real time only.  Due to the Matrixc conversion it is not possible to determine those figures for March 2014.

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $389,950                              $472,645

Briargate                                  $317,500                             $329,913        

Central                                     $163,000                              $184,024

East                                          $180,000                              $194,499

Fountain Valley:                      $189,900                              $200,860

Manitou Springs:                    $277,000                              $291,666

Marksheffel:                             $268,000                              $271,489

Northeast:                                $215,500                              $236,495

Northgate:                                $354,790                              $391,934          

Northwest:                               $335,000                              $362,496

Old Colorado City:                  $205,000                              $204,503

Powers:                                    $219,950                              $225,854

Southwest:                              $269,500                              $396,468

Tri-Lakes:                                $420,000                              $453,879

West:                                        $214,650                              $233,914

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

 

U.S. HOME PRICES CONTINUE TO CLIMB, TIGHT SUPPLY HINDERS SALES

Realtor Mag 3.26.15, The Gazette, 4.1.15

Existing-home sales continued to improve slightly in February but remain constrained by low inventories of homes-for-sale that are pushing price growth to the fastest pace in a year, according to the NAR.

The median U.S. existing-home price for all housing types was $202,600 in February—up 7.5% from a year ago.

“Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsustainable levels,” says Lawrence Yun, NAR’s chief economist.  “Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before (mortgage) rates rise.”

While mortgage rates still hover near historical lows, this is not forever.  “With all indications pointing to a rate increase from the Federal Reserve this year—perhaps as early as this summer—affordability concerns could heighten as home prices and rents both continue to exceed wages,” says Yun. 

An NAR study in March found a widening gap between rent and income growth across the country, which is making it more difficult for renters to become homeowners.

According to David Blitzer, chairman of the index committee for Standard and Poor Dow Jones Indices, “Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback.”

Bottom Line?  Once more I’m going to say it.  If you’ve been waiting...wait no more.  While home prices are higher than they were, interest rates are still low.  You will get more for your present home, probably pay more for your “trade up” home than you might have last year, but hopefully the interest rates will stay low for a bit longer and the increased equity from your present home will help offset the difference.  If you are in the market, give me a call and let’s see how we can turn your dreams into reality when it comes to Residential real estate.

 

FOR HOMEOWNERS, SEVEN TIPS FOR TAX TIME

USA Today, 3.19.15

Homeownership is still one of the best tax “deductions” available to most Americans and with a little knowledge and the right documents to back you up, tax time can quickly move from being a “chore” to being a satisfying benefit thanks to deductions on your annual return.

Here are seven important items for homeowners to note so they can take advantage of the biggest possible return on their home ownership.  As always, I encourage each of you to consult with a tax professional to make certain you get the best advice for your individual situation.

1. PMI Deduction Survives:  In 2014, it was an open question on whether Congress would extend tax provisions including a deduction for personal mortgage insurance, or PMI.  Thankfully for homeowners, legislators passed a package in December to extend a number of tax breaks—including one for PMI.
2. Mortgage Interest:  A report from Congress’ Joint Committee on Taxation estimates about $70 billion in mortgage interest deductions annually among American taxpayers.  Make certain your get your fair share—not just because mortgage interest can be substantial, but this tax break alone opens the door for many taxpayers to itemize other smaller breaks instead of settling for the standard deduction.  Simply use Form 1098 if you have paid more then $600 in mortgage interest in the tax year.
3. Local real estate Taxes:  Many taxpayers overlook the fact that homeowners can deduct local, state and even foreign real estate taxes on their federal returns.  There also may be special property tax benefits for lower-income homeowners based on your state or municipality of residence, so be sure to check into that.
4. Losses By Weather, Fire or Theft:  Form 4684 is designed to specifically help you in the event of casualties and thefts.  While no one is looking for damage or theft, the IRS grants a break to any property or casualty loss that is more than 10% of your gross income and is not reimbursed by insurance.  Documentation is key to prove both value and the circumstances of what was lost.
5. Renovations Cut Taxes at Sale Time:  While most renovations you make on your home are not tax-deductible, you might still want to hold on to receipts and documents—most particularly if you are in a hot real estate market or have an expensive property.  That’s because the IRS allows sellers “only” a tax-free profit of $250,000 on a primary residence—but—if you’re above the threshold, you can reduce the tax burden on those real estate gains by proving your investment in the property via renovations and other work.  In simple terms, if you spent $30,000 fixing up a kitchen, then you can make $280,00 from your primary residence and not pay any taxes on that profit.
6. Selling Costs Count, too:  The commission paid to a real estate Agent, as well as any legal fess and closing costs, is tax deductible.
7. Don’t Forget Moving Expenses:  If you moved more than 50 miles for a new job and started that job less than one year prior to purchasing a home, you might be able to deduct moving expenses.  Refer to IRS publication 521 for more specifics.

 

NEW ROADBLOCKS TO HOMEBUYING DUE IN AUGUST

Inman.com, 4.4.15

On Aug. 1, 2015, a shift is coming to wreak havoc at the closing table for both real estate Agents and clients alike.

On that date, the new TRID (TILA-RESPA Integrated Disclosure) forms replace the HUD-1 Settlement and Good Faith Estimate. The Consumer Financial Protection Bureau’s mission is to rebuild the mortgage banking landscape so that the industry will avoid the type of conditions that led to the Great Recession. The CFPB replaces the Department of Housing and Urban Development for oversight because HUD did not provide specific consumer protection.

While increasing consumer protection is a desirable goal, the unforeseen ripple effects of these changes could seriously disrupt how the closing process is conducted.

The new rules will require a new three-day waiting period when there are any changes in the TRID forms.  It is recommended that an extra 15 days are allowed to close transactions.  In other words, 30-day contracts will now require 45 days and 60-day contracts will require 75 days.

While in most cases these issues are resolved and the transaction closes the next day, there could be instances where multiple properties are involved and the delay on one’s home closing could delay others from closing, too.

Many other things can be affected, such as a moving van ready to move things in or an interest rate lock that could possible expire.  These are just some of the possibilities and just another good reason why I always suggest you hire an experienced, knowledgeable real estate Professional to help you with your sale. 

We do the homework and can help you avoid the aforementioned situations before they can arise.  As regulations get tougher and tougher, this becomes more and more important.  I keep abreast of all new regulations and do my best to make your home Buying and Selling experience as stress-free as possible.

 

HARRY’S JOKE OF THE DAY  (In the spirit of Easter and Passover)