Real Estate Information

                                                            

April 14, 2014

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

             

                                                                               

HAPPY HOLIDAYS TO ALL WHO CELEBRATE

I’d like to take a moment to reflect on the significance of the two religious holidays that are happening this week.  Both remind us of the importance of FREEDOM, one of the basic principles upon which our great country was founded. 

It is my hope that everyone can appreciate the value of freedom and start working together and not against each other. Appreciation of our differences simply requires more understanding of what makes each of us unique. As this holiday season approaches...I wish you all peace and the freedom to be who you are and to have the freedom to practice whatever it is that makes you--you.

 

IS A HOUSING BUBBLE HERE ONCE AGAIN?

DSNews 4.1.14

When year over year price increases continue on a double-digit course despite recent slowdowns, the question of a housing “bubble” comes again to the forefront and it’s a question I’ve recently been asked by clients.

According to Jed Kolko, Trulia chief economist, the answer is both yes and no!  Kolko estimates that national home prices are still around 5 percent undervalued when examining long-term fundamentals like historical prices, incomes and rents.  While ongoing improvements in prices have brought the market close to a tipping point, he notes that it’s still a far cry from the 39 percent overvaluation in the first quarter of 2006.

“Even though recent double-digit price gains look unsustainable, current national price levels are not cause for alarm,” Kolko said in a blog post.  “Sharp price gains, like we’ve had in 2012 and 2013 are not the sign of a bubble unless price levels look high relative to fundamentals.”

He further added that “the slowdown in price gains make it less likely that we’re headed for another bubble.”

 

WHAT A GOOD real estate BROKER BRINGS TO THE TABLE

You want to sell your home and wonder why you need a reputable real estate Agent to help with this transaction?  I’m here to tell you how and why this can make a difference between heartbreak and success. 

When we need advice in a legal, medical, accounting or whatever situation, we go to the best lawyer, doctor, accountant, etc. that we can find.  Their professional help can save us time and money.  Oftentimes, we seek a second opinion and then make informed decisions based on the professional knowledge we received.

Well, your personal real estate situation is no different.  You need to seek the same level of professionalism in your Realtor that you would in any other professional.

Even forgetting the fact that there are so many “i’s” to dot and “t’s” to cross in negotiating your way through the real estate wars today, a reputable Real Estate Agent can make certain that you’ve done all you can to get your home in the best shape prior to listing.

One of the most important things to consider is pricing.  We all want to get the most money possible for our homes and oftentimes what we think our home is worth is not necessarily what the market will realistically sustain. 

Fixing up your home to put its best foot forward is important to do prior to listing.  The better your home shows, the better competitive advantage and the quicker it will sell. 

Let me share with you three recent success stories from the past three weeks.  All three home Sellers and their properties are in different price ranges and had different Buyer profiles but each Seller took the time to listen to my advice and went under contract in record time.

The listing prices of the three homes were $224,900, $400,000 and $659,900 and all three coincidentally were in the northwest area of Colorado Springs.

• Each of the three Sellers considered my thoughts as to who they might be looking for as Buyers of their respective homes. 
• Each Seller hired the appropriate “fix up” contractor for their price range.  Not all “fix up” contractors are best for all price ranges so knowing who to hire is important.
• All three homes had interior and exterior issues and I was able to help each Seller determine how much they needed to spend in order to receive a quick and reasonable sale.
• Each Seller took my suggestion for the listing price.  I provided each with market value analysis and comparables which they looked at and analyzed to come up with a price. 

One home was on the market 10 days, one for 4 days and one was on the market for less than 24 hours!

That, my friends, is why it’s important to list your home with a reputable real estate Agent.  The type of customer service I provide to each and every one of you is based on more than 40 years in the local Real Estate arena, along with my Investment Banking background.  I do the homework for you and try to make the process as stress-free as possible. 

While I’m talking about Selling a home here, as you know, I put the same detail and work into helping Buyers and Investors find what they want, too.  If you are in the market for any real estate transaction, call me today at 598.3200 or email me at Harry@HarrySalzman.com and let me show you how I can put my considerable knowledge to work for you.

 

COST OF LIVING IN COLORADO SPRINGS REMAINS BELOW NATIONAL AVERAGE

The Gazette

The cost of living in Colorado Springs just keeps getting better.  According to a survey from the Council for Community and Economic Research, last year it was 3.9 percent below the national average, which was slightly better than in 2012 when we were 3.7 percent below. 

The index for 2013 didn’t change much because half of the six components were lower and the other three were higher from a year earlier when compared with the national average.  Components measuring grocery items, transportation and miscellaneous goods and services were lower, while those measuring housing, utilities and health care were higher.

While the index does not measure inflation, it compares prices in more than 300 metro areas for 57 goods and services used or purchased by households where middle managers live.  It’s purpose is to help managers compare living costs when considering a move to another city.

 

A MILLION REASONS…OR POSSIBLY JUST A FEW HUNDRED THOUSAND…TO BUY LOCALLY

The Gazette

A report by Trulia, Inc. of the nation’s 100 largest metro areas ranked Colorado Springs seventh in terms of offering the most house for a $1 million price tag. 

You could fit four million-dollar homes from New York inside a million dollar property in Colorado Springs!  In the New York/New Jersey area a million dollars will get you just 1,489 square feet—the smallest in this survey.

While this is great news for Buyers interested in properties of this size and price range, what it means to the rest of us is that no matter what the price—homes in Colorado Springs are a relative bargain based on size in compared to many other metro areas.

 

DODD-FRANK REGULATIONS POSING A “SERIOUS CHALLENGE”

DSnews 4.9.14

Bankers are worried about lending and that fear is affecting who can qualify for mortgage loans based on the latest version of the Dodd-Frank mortgage regulations.

According to the results of the latest annual real estate Lending Survey by the American Bankers Association, loan officers are clearly showing signs of caution.  More than 80 percent of bankers surveyed believe that tightened Dodd-Frank rules will restrict credit, thereby narrowing the pool of candidates able to secure mortgages.

Regulation Z, which was implemented in January, prohibits lenders from making a higher-priced mortgage loan without regard to the consumer’s ability to repay.  This change led lenders to alter who they saw as viable mortgage loan candidates as they figure out how to do business within the confines of tighter controls.

Robert Davis, EVP of the American Bankers Association said, “The new mortgage rules are a serious challenge, especially in the near term, for mortgage lending.  The problem will last at least as long as bankers calibrate their compliance systems, and perhaps much longer.”

There are some Mortgage Winners and Losers because of this new regulation:

Mortgage Winners:

• Homeowners with solid income, lots of home equity, and excellent credit.  If you want to borrow much less than your home is worth and have great credit and plenty of income to pay your monthly bills, you’ll easily meet the new standards.
• First-time homebuyers.  Most FHA and many low downpayment loans will meet the new safe loan standards.  Those with marginal credit or other impairments that raise questions about their ability to repay a mortgage will likely face the same hurdles they faced before the rule.
• Homeowners whose lenders don’t treat them right.  If your servicer loses your payment, doesn’t answer when you write to ask questions, or forces you to buy expensive insurance you don’t need, things are looking up.  The new mortgage rules set standards for posting payments and answering your questions promptly, and stop mortgage lenders from forcing you to buy insurance you don’t need.
• Homeowners who don’t like to shop around.  In the past, lenders paid loan officers a bonus for pushing customers into higher-interest loans.  Now, lenders can’t do that anymore.  Plus, lenders who charge you more than 1.5% above the going interest rate will lose protection from lawsuits.

When you’re shopping, ask if you’re getting a “qualified mortgage”—that’s the official name for a loan that meets the new guidelines.  You’ll know that your loan is amongst the safest for you and within 1.5% of the rate most people with good credit are paying.

Added protections and tighter lending policies are presenting potential hardships for some people.  The new rule could restrict lending by at least 10% and higher in some regions, which can create difficulties in our economic recovery says Jeff Kibbey, primary legal counsel for Century Mortgage Company.

The future of homeownership depends on greater access to credit.  “Over the past 8 years, homeownership in the U.S. has decreased while many in the growing population have turned to renting instead of buying a home,” said NAR’s chief economist, Lawrence Yun.  “We need to ensure that good, creditworthy renters can someday have the appropriate access to credit so they can build equity through homeownership.”

Mortgage Losers:

• Minorities and modest-income Americans.  Credit continues to be so tight that responsible Buyers are having trouble attaining homeownership, Yun said.  Homeownership among African-Americans has fallen to just above 43%, down from just under 50% in 2004 and African-American net worth has been cut in half due to higher unemployment and the foreclosure crisis.
• Owners and buyers of higher-priced homes in high-cost areas.  If you’re Buying or Selling a higher-cost home, finding a mortgage can by costly if the home’s value is more than the FHA or Fannie Mae and Freddie Mac loan limits of $271,050 (FHA) to $414,000 (Fannie/Freddie) in lower-cost areas and $625,500 (for both) in the highest-cost areas.

If your mortgage is for more than the limits, you (or your home’s Buyers) will need a jumbo loan, which usually means a FICO mortgage credit score of 720 or better and putting as much as 20% down or buying private mortgage insurance.

More people than ever could be in this situation:  Buyers in more than 300 counties face FHA loan-limit reductions greater than 10% and in some markets, the biggest FHA loan size will be cut in half, Yun said.

• Middle-Income Americans who fall outside the new guidelines.  First-time homebuyers trying to purchase a $350,000 house aren’t going to have a lot of loan options if they can’t get an FHA or Fannie/Freddie guaranteed loan,predicts Bankrate.com senior financial analyst Greg McBride.

Those with bigger bank accounts, say a homebuyer purchasing a $900,000 home, won’t have the same difficulties.  That richer borrower is an appealing customer for related financial products so a bank is more likely to give him a loan that falls outside the new guidelines to land him as a customer.

• Single homebuyers.  Dual-income households tend to have higher credit scores because they have a second paycheck to fall back on in a financial crisis.  Restrictive mortgage lending standards favor higher credit scores.
• Mortgage borrowers with fluctuating income who have had a bad year, or two, including business owners, commissioned salespeople, or executives who didn’t get that big bonus.  There’s a new emphasis on ability to repay and that starts with proving you have steady income.
• Mortgage borrowers with lots of debt.  If your car payments, student loans, or other installment debt take up more then 43% of your income, and can’t qualify for an FHA or GSE loan, you won’t meet the new lending standards, so you may have a hard time finding a mortgage.

What does all this mean to you?  Well, it’s not getting any easier to obtain a mortgage, however; having me in your corner with my connections to qualified mortgage lenders, it’s easier to find out exactly what it’s going to take to make that homeownership dream a reality.  No matter which category you fall into, give me a call and let’s see how we can help you navigate through the mortgage lending wars and obtain a qualified mortgage.

 

ON A GOOD NOTE…LOWER MORTGAGE RATES HELP SPRING BUYING

DSNews 4.11.14

With the prime Buying season in full swing, a bit of good news for consumers is that mortgage rates fell a bit last week, according to reports from Freddie Mac and Bankrate.com.

In its weekly Primary Mortgage Market Survey, Freddie Mac reported the 30-year fixed-rate mortgage (FRM) averaging a rate of 4.34% for the week ending April 10, a decline from 4.41% the previous week. 

The 15-year FRM last week averaged 3.38%, down nearly a tenth of a percentage point from early April. 

So while home prices are continuing their upward trend which may cause a bit of “sticker shock” to Buyers, this decline in mortgage interest rates helps ease the shock a bit.  As always, though, if you are looking to Sell and Trade Up or Buy for first time or Investment purposes, NOW is a very good time.  Prices are not coming down, inventories are not growing and mortgages are certain to go up, so don’t sit on the fence if you are wanting to get what you are looking for in the real estate market.

 

HARRY’S PHILOSOPHY OF THE DAY

 

 

 

 

 

March 31, 2014

 

HARRY’S BI-WEEKLY UPDATE

                            A Current Look at the Colorado Springs Residential real estate Market

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

                                           

SPRING HAS SPRUNG...SORT OF

More like a trampoline than straight up, but Spring is certainly trying its best to arrive.  However, the Spring real estate Buying and Selling season started early this year for my clients.  I’m not certain if it’s due to light inventory, rising home values or fear of increased mortgage interest rates but we’ve seen a sort of frenzy in the last month that appears to be fueled by at least some of these reasons.

Spring is the traditional selling seasons for lots of reasons, prime among them the fact that families like to relocate after the finish of a current school year and prior to the start of a new one.  I’m finding that many of my Buyers and Sellers are among that group and lower inventories are pushing them to start a bit earlier this year. 

Some things I’ve recently read:

“We had ongoing unusual weather disruptions across much of the country last month, along with the continuing frictions of constrained inventory, restrictive mortgage lending standards, and housing affordability less favorable than a year ago,” says Lawrence Yun, NAR’s chief economist.  “Some transactions are simply being delayed, so there should be some improvement in the months ahead.  With an expected pickup in job creation, home sales should trend up modestly over the course of the year.”

Housing starts were mostly flat in February, due in part to inclement weather.  However, according to Doug Duncan, Fannie Mae’s chief economist, the housing market is expected to show a relatively strong performance beginning with this Spring season.

Inventories of homes for sale have increased 10 percent year-over-year which signals Seller optimism according to realtor.com’s latest National Housing Trend Report, which tracks 146 markets. 

Colorado Springs is number 72 in the cities tracked by this report—almost dead center.  Some important things to remember include the fact that our home prices did not fall as sharply or as low as many other cities so we did not have as much equity to recover.  We also did not have the large number of foreclosures that many other cities experienced. 

The good news for us from that report is that the median home price in the Colorado Springs area is up 6.7 percent year over year and 2.2 percent month over month (yes, even with bad weather!)  Our local inventory is down 12.4 percent year over year and 15.9 percent month over month.  The median age of inventory is 89 days, up 17.1 percent year over year, but down 6.3 percent month over month.

Some important things to consider if you’ve wanted to Buy or Sell or simply on the fence:

• Start early and be sure to interview “competent” lenders and get a “pre-approval” letter.  That “lender approval letter” should be included with the offer to purchase a home.  A recent listing of mine had an offer that included such an unprofessional “pre-qualified” letter from the lender that after I explained it to my client, the offer was rejected.
• Be realistic in pricing your home.  This will help it sell faster and avoid back and forth counter offers. 
• Be open to buying in neighborhoods you might not have considered.  With low inventory, sometimes it pays to look in areas you had not previously considered.  You never know what you might find there.
• Mortgage rates are going up.   It’s going to happen, so if you’re thinking about it, now’s the time to save on your house payment.  Also—be prepared to provide more documentation to your mortgage lender than in the past due to the new regulations that went into effect in January.
• Local inventory is lower and the “best” priced homes go quickly depending on price range and location.  You might sell your home quickly and if you are looking to Trade Up, know what you want, need and can afford so that you can find your next home while there are more choices available.

Home Buying and Selling is not quite as simple as it once was, and that’s where it’s extremely important that you choose a competent real estate Agent to help you navigate through the home Buying and Selling “wars”.

If you’re reading this, you’re one of the lucky ones because you’ve got ME.  With my investment banking background and forty plus years in the local real estate arena, I’ve got the credentials and experience to help you make the right decision for your family.  Whether you want to downsize or upsize or simply move to a new neighborhood, I’ve got the knowledge to provide expert advice that will make the process as stress-free as possible.  Call me today at 598.3200 or email me at Harry@HarrySalzman.com and let’s talk.  Spring is here and it’s best to get ahead of the “frenzy” if you can.

 

SOUTHERN COLORADO ECONOMIC FORUM’S QUARTERLY UPDATES & ESTIMATES

Southern Colorado Economic Forum February 2014

The latest update on the El Paso County Economy, including housing trends, was published on March 27, 2014 and you can click here to read the 10-page report in full.  Here are some of the highlights I thought you would find interesting:

• Single-family permit activity, while slower than February 2013, was still strong--up approximately 21.4% (475 units).  The year 2014 is expected to have a more modest gain of about 10 percent.
• The trend in home sales continues its upward trend and through December 2013 there were 1,648 (18.2%) more homes sold than in 2012.  While not setting records, this is a considerable gain over the weak sales trends of the previous five years.  Rising mortgage rates, low job growth and declining real income in El Paso County will be the challenge for 2014 homes sales to grow more than 5-10 percent.
• The home supply grew by 3.3 percent while sales increased 18.3 percent, suggesting that demand exceeded supply.  The net effect was average prices increased by 7.1 percent in 2013.
• Foreclosures were well below the Forum’s projections and additional declines are expected in 2014.

The next several sections of the report include:

• Colorado Springs Airport Trends
• Colorado Springs Sales Taxes
• New Car Registration Trends
• Employment Trends and Wages
• Personal Thoughts about our Employment Base

It is with pleasure that Salzman real estate Services, a supporter since the Southern Colorado Economic Forum was created by the UCCS College of Business in 1996, is able to share these types of statistics and forecasts with you as soon as they become available, each and every quarter.  I would be happy to answer any questions you might have concerning the detailed reports and how they might affect you personally or any question you might have concerning Real Estate in general.

 

BUYING V. RENTING?

Keeping Current Matters 3.23.14 

A report released by Trulia last week explained that homeownership remains cheaper than renting in all of the 100 largest metro areas by an average of 38%.

Other interesting findings:

• Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting.
• Some markets might tip in favor of renting this year as prices continue to rise faster than rents and if—as most economists expect—mortgage rates rise, due both to the strengthening economy and Fed tapering.
• Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying—and rates haven’t been that high since 1989.

What’s this mean to you?  Buying a home NOW makes sense.  If you rent, your housing expense will only continue to rise (good news for Investment Buyers, though).  Locking in a mortgage rate at today’s prices will save you money as rates are not going to get any lower. 

It’s tougher for first time buyers in today’s market, but it’s NOT impossible.  Give me a call and let’s see what we can do to help make homeownership a reality.

 

3 MAJOR THINGS YOU NEED TO KNOW ABOUT THE 2014 NATIONAL housing market

HousingWire 3.23.14

Veteran housing economist, David Berson, gave his opinion on the near-term future of the housing markets:

Number 1:  2014 should prove to be the strongest year for housing activity since before the Great Recession:

• 2014 should be the year when activity reaches the highest level since 2006/2007.
• An improved job market, with employment growth accelerating and unemployment rates declining is propelling this market.
• People buy homes when their job and income prospects improve—even if it’s more expensive to do so—rather than buy when it is inexpensive to do so but they’re worried about keeping jobs.

Number 2:  Demographics should start to favor housing activity:

• The demographic most affecting the housing market is household formations.  These formations are affected by the job market as people “double up” when worried about the job and income-earning prospects.   Since the Great Recession, many young adults are still living with their parents.
• With the increasing job market, there is a pent-up demand for households.  Both parents and those young adults living at home look forward to seeing themselves in their own households.
• There is a current shortage of about three million households and beginning in 2014 the pace of household formations should accelerate to above-trend pace for several years, pushing up housing demand.

Number 3:  Mortgage availability shouldn’t worsen and may improve.

• While mortgage credit isn’t as easy to get as it was during the housing boom, mortgage availability has increased slightly in comparison to recent years.
• The government or government-sponsored share of mortgage lending has climbed to more than 90 percent in recent years and while that in an untenable situation in the long run, it is unlikely to change much this year.
• Qualified Mortgage lending rules from the Consumer Financial Protection Bureau exempt home mortgages that qualify for purchase or securitization from Fannie and Freddie.  As a result, mortgage lenders won’t have to tighten their mortgage-underwriting requirements in response to QM as long as they sell their loans to the GSEs.

Just some things to consider when deciding whether 2014 is the right time for you to Sell and Trade Up or Buy for the first time or for Investment purposes.  There’s a lot of information coming from a lot of different sources, but most of them are saying that this year is still a great time to jump in the real estate market.

 

FANNIE MAE AND FREDDIE MAC ARE WINDING DOWN

RisMedia 3.20.14

As I’m sure many of you are aware, there is a bipartisan proposal that seeks to wind down mortgage giants Fannie Mae and Freddie Mac and completely overhaul the nation’s mortgage system. 

According to Don Frommeyer, President of NAMB (The Association of Mortgage Professionals), “A change in the mortgage system will be a welcomed change across the board as long as this function does not increase the cost to the consumer.  In the past 5 years, the cost to the consumer has increased largely due to the changes that have been made in the mortgage market.  We need to help consumers going forward.”

“With the proposed changes, Fannie and Freddie would be replaced with a federally insured mortgage system.  Investors will pay a fee to ensure insurance for mortgage securities they buy and potential homeowners will have the assurance that their mortgages are backed by strong capitol,” Frommeyer added.

The bill, proposed by Senators Tim Johnson and Mike Crapo, is still a long ways off from being passed or implemented but many feel this is necessary to prevent another housing crisis or mortgage fiasco. 

I’ll keep you abreast of this proposed legislation and the implications it could have on you.

 

COLORADO SPRINGS WATER EFFECIENCY REBATES AVAILABLE

I received an email from Frank Kinder, Sr. Water Conservation Specialist for Colorado Springs Utilities who wanted me to remind our local readers that they can save water indoors by installing  WaterSense approved toilets and can get rebates of $75 for up to 4 fixtures per home.  They will even recycle the old fixtures for you.

CSU also offers irrigation rebates for controllers, heads and nozzles.  So if you’re ready to remodel or just want to save some cash, check with CSU to see how you can “make every drop count.”

 

HARRY’S PHILOSOPHY OF THE DAY

ONE CHOICE

You’re always One Choice away from changing your life

One…

One tree can start a forest,

One smile can start a friendship,

One hand can life a soul,

One word can frame the goal,

One candle can wipe out darkness,

One laugh can conquer gloom,

One hope can raise our spirits.

And...one choice can change your life.

Think about that.  One choice, just one, can change

your life forever.  Simply put, your life today is what

your choices have made it, but with new choices, you

can change directions this very moment.

Something to think about as you begin a new week.

 

 

 

 

 

 

 

March 17, 2014

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.

             

                                              

 

YOU DON’T NEED LUCK WITH ME AS YOUR REALTOR

Buying and Selling real estate can sometimes be a matter of luck.  Finding the right property, setting the right price and navigating your way through all the paperwork required just to get a property listed can be tricky. That doesn’t even take into consideration obtaining the best mortgage lender for your needs and getting to closing. 

On St. Patrick’s Day, let me assure you of one important thing—you don’t need any more luck--you’re already multiple steps ahead of the game because you have me as your advocate when it comes to all your real estate needs. 

With my Investment Banking background and 40+ years in the local real estate arena, I will always provide each and every one of you with the quality customer service for which I’ve become known. No matter whether you are Selling and Trading Up, Buying for the first time or for Investment purposes, I will always take the time to help you decide what’s best for your individual needs, wants and budget. 

So while you MAY need luck when it comes to winning the Powerball or Lottery, when it comes to one of the biggest financial decisions you’ll ever make—you’ve got all the luck you need because you have me.

 

FEBRUARY LOCAL STATISTICS STILL UNAVAILABLE

As I mentioned in my last eNewsletter, the local PPAR statistics for February were delayed due to a new MLS reporting system. Thanks for your inquiries—it’s nice to see this interest from my readers.  The stats are still unpublished and I will get them to you as soon as they are available to me.

 

A FEW OF MY THOUGHTS ABOUT “TIME”

I often get asked about the “right” time to deal with real estate and my standard answer is that there is NO standard answer.  When it comes to “time” it’s strictly an individualized thing.  So, I put together a list of things that you might want to consider and/or ask yourself when thinking about “time” when it comes to real estate.

• Is it “time” to take the new found equity in your current home and use it to trade up or move to a new neighborhood?
• Is it a good “time” to Buy but retain your current home as a Rental?
• Is it “time” to trade up for personal and family reasons to the home of your dreams while the mortgage rates are still relatively low?
• Is it “time” to change homes due to personal lifestyle changes, such as moving to a single story home from a multi-story, or downsizing or upsizing due to decreased or increased family size?

These are questions only you can answer.  Remember—there’s no right time or right answer—and there are always many questions when it comes to real estate investments.  That’s where I come in.  Once you’ve found out if it’s the right “time” for you, I can help make your answers a reality.  Sometimes it’s simply a matter of finding out whether or not it’s financially a good “time” for you.  Those are areas of my expertise and I’m simply a phone call or email away and will always have the “time” for you.

 

AMERICANS MORE CONFIDENT ABOUT BUYING

Keeping Current Matters

According to the Fannie Mae January 2014 National Housing Survey, two categories reported all-time survey highs:

• 52% of respondents thought it would be easy for them to get a home mortgage today
• 70% of respondents said they would buy if they were going to move

Doug Duncan, senior vice president and chief economist at Fannie Mae explained what this could mean to the real estate market moving forward:

“A majority of consumers now believe that it is getting easier to get a mortgage.  For the first time in the National Housing Survey’s three-and-a-half-year history, the share of respondents who said it is easy to get a mortgage surpassed the 50-percent mark.   The gradual upward trend in this indicator during the last few months bodes well for the housing recovery and may be contributing to this month’s (February’s) increase in consumers’ intention to buy rather than rent their next home.  The dip in overall home price expectations, though notable, is consistent with our view of moderating home price gains this year from a robust pace last year, while positive trends in perceptions about the economy and personal finances over the next year support our view of stronger growth in the broader economy.”

Consumer confidence at this point is good news considering the increasing home and mortgage interest rate pricing.  Hopefully this trend will continue in February’s stats as higher interest rates and new mortgage regulations start kicking in. 

The bottom line is still the same.  If you are looking to Sell and Trade Up or Buy for the first time or Investment purposes….don’t wait around for better prices.  While home values will rise slower than in the past few years, they WILL continue to rise and mortgage rates will definitely rise.  So while your present home continues to increase in equity, so will the next home you might want and with higher interest rates….you’re going to pay more.  And with inventory down, it’s best to start your search now so that you are not disappointed with availability in the neighborhood or price range you want. 

If you or any family member, friend or co-worker has been waiting for the “right” time, why not call me at 598.3200 or email me @ Harry@HarrySalzman.com and let’s see if it’s worth waiting or if it’s time to start the ball rolling.

 

HOUSING PREFERENCES DRIVEN BY GENERATIONAL DIFFERENCES

RealtorMag 3.12.14, RisMedia, 3.14.14

A 2014 NAR Home Buyer and Seller Generational Trend study indicates that younger home Buyers tend to view their home as a strong investment while older Buyers tend to view their homes as a match to their lifestyle. 

The survey provided an in-depth look at the generational differences of recent home Buyers and Sellers.

According to the survey, the largest group of recent Buyers is millennials, those under the age of 34, who comprised 31% of recent home purchases.  Gen X Buyers, born between 1965 and 1979, accounted for 30% of recent purchases and younger boomers, born between 1955 and 1964, accounted for 16%.

“Given that millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand,” says Lawrence Yun, NAR’s chief economist.  “Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people.  However, the challenges of tight credit, limited inventory, eroding affordability, and high debt loads have limited the capacity of young people to own.”

The NAR study showed the median age of millennial home Buyers as 29 and the median income as $73,600.  The typical purchase was an 1,800 square foot home costing around $180,000.

Gen X Buyers, in comparison, had a median age of 40 and a median income of $98,200 while their typical purchase was a 2,130 square foot home costing $250,000.

Multi-generational households, those consisting of adult siblings, adult children, parents and/or grandparents, represented 14% of all home purchases.  These households were largely concentrated among middle age Buyers, with 22% of Younger Boomers identified as a multi-generational household.

Reasons for multi-generational households included:

• Adult children moving back home
• Cost Savings
• Health or care-taking of aging parents
• Spending more time with aging parents

Other findings from the study include:

• 87% of Buyers age 33 and younger consider their home purchase a good financial investment compared to 74% of buyers 68 and older
• Millennials were more likely to buy in an urban or central city than older boomers
• Younger Buyers tended to place higher importance on commuting costs than older generations.  Older generations tended to place more emphasis on energy efficiency, landscaping, and community features
• Millennials plan to stay in the home for 10 years while the baby boom generation plan to stay for 20 years
• Younger Buyers tend to move to larger, higher-prices homes, but “there is a clear trend of downsizing to smaller homes among both younger and older baby boomers and the Silent Generation (those born between 1925 and 1945)”
• 79% of Older Boomers purchased an existing home, compared with 87% of Millennials

Prior to purchasing, 62% of Millennials rented an apartment or house and 20% lived with their parents, relatives or friends.  Younger Boomers and earlier generations mostly owned their previous residence, with older Buyers much more likely to have been homeowners.

As you can see, folks of all ages are now attempting to become homeowners.  With the current obstacles of low inventory, higher prices and mortgage interest rates, along with the new lending regulations, it’s going to get tougher for some to achieve their homeownership goals.  That’s why it is more important than ever to use a qualified real estate Agent for assistance. 

As YOUR Agent, I’m your “go-to” guy.  I do the homework to help make the process as stress- free as possible for first time Buyers as well as those wanting to Sell and trade up or Buy for Investment purposes.  Call me today and let me help you determine the best possible scenario for you.

For those looking to Buy for investment, as you can see, the need for rentals is going to grow along with the higher pricing on homes and interest rates.   In many cases, if it’s financially feasible and you are looking to Sell and trade up, you might consider keeping your current residence as a rental.  These are just some of the options we can discuss when you contact me.

 

FLOOD INSURANCE AFFORDABILITY BILL WILL HELP

NAR President Steve Brown issued the following statement on March 13:

“Realtors applaud the U.S. Senate for passing the Homeowner Flood Insurance Affordability Act, H.R. 3370, to curb flood insurance hikes for homes and commercial properties.

We appreciate the Senate’s swift action on the legislation, which is a responsible and balanced solution to the skyrocketing flood insurance premiums affecting residential and commercial properties that were unintentionally triggered by the Biggert-Waters reforms to the National Flood Insurance Program.”

He went on the praise the bill for the relief it will bring to businesses and homeowners nationwide who have experienced financial hardship due to extreme premium increases. 

Hopefully this Bill will help all of you who found yourselves with higher flood insurance premiums due to the floods of recent times, nationally and most especially here in the Colorado Springs area.

 

MORTGAGE RATES BUMPED UP LAST WEEK

For the week ending last Friday, Freddie Mac reports the following national mortgage rate averages:

• 30-year fixed-rate mortgages:  averaged 4.37%, with an average 0.6, rising from last week’s 4.28% average.  A year ago at this time, 30-year rates averaged 3.63%.
• 15-year fixed-rate mortgages:  averaged 3.38%, with an average 0.6 point, increasing from last week’s 3.3.2% average.  Last year at this time, 15-year rates averaged 2.79%.
• 5-year hybrid adjustable-rate mortgages:  averaged 3.09%, with an average 04 point, inching up from last week’s 3.03% average.  A year ago a this time, 5=year ARMs averaged 2.61%.
• 1-year ARMs:  averaged 2.48%, with an average 0.4 point, dropping from last week’s 2.52% average.  A year ago, 1-year ARMs averaged 2.64%.

So, with Spring buying already underway, it appears that increasing mortgage rates will be there to greet you.  It’s not likely to get better, and most economists are predicting at least 5% on 30-year fixed rate mortgages before the end of 2014.  If you’ve been waiting for the right time to Buy…it’s here. 

 

SOME INTERESTING FACTORS IN relocation

Mobility, March 2014

Several hundred relocation and human resource professionals were asked and answered:

“If you were being transferred, what would you consider the most important factor before accepting the new job assignment?

• 38% -- My spouse’s/family’s happiness while on assignment     
• 22% -- Pay raise/new responsibilities
• 22% -- Potential for career advancement
• 13% -- Location
•   5% -- Length of assignment

As a relocation specialist, a good part of my job entails helping make the move as easy as possible for the whole family, not just the person being relocated for job purposes.  This might mean a neighborhood that’s family friendly or a school district known for the specific needs or talents of the students in the family.  I pride myself on knowing that my success in working to make the whole family happy will make the job transfer a happy one for everyone involved.   And as we all know, a happy family situation makes for a happy employee. 

 

HARRY’S JOKE OF THE DAY (can you tell I just got back from Colorado Rockies Spring Training in Scottsdale, AZ?)

 

 

March 4, 2014

 

HARRY’S BI-WEEKLY UPDATE

                                 A Current Look at the Colorado Springs Residential real estate Market

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

             

                                             

SPRING IS IN THE AIR

It’s that time of year.  Colorado is still getting snow interspersed with some lovely temperate days and the Rockies are down in Scottsdale, AZ for Spring Training.  Always faithful and eternally hopeful, I look forward to another great baseball season with both the Colorado Springs Sky Sox and the Colorado Rockies.  Here’s to Baseball 2014, no matter whom you’re routing for.  May the best team win and may Derek Jeter have a fabulous final year with the Yankees.  He’ll be an inspiration to upcoming players for years to come. 

 

FEBRUARY STATS NOT YET AVAILABLE

After waiting an extra day to publish this in order to include local monthly statistics, I just found out that due to the new MLS reporting system they will not be available for a while.  As soon as they are available to me I will send them out to you—hopefully by the next eNewsletter.

 

NEW HOME CRUNCH SHOWS SIGNS OF EASING

Wall Street Journal 2.27.14

After a 14 year low in early 2013, bank lending for land development and construction appears to be heading up, a sign that the supply for new homes will ease in the coming months.

This will hopefully put a downward pressure on new home prices which have been rising rapidly over the last two years and weighing in on the housing recovery.  While the outstanding balance on land acquisition, development and construction rose only slightly in the fourth quarter of last year, “economists note that if the overall balance is growing it means that originations of new homes are rising even faster.” 

According to David Crowe, chief economist for the National Association of Home Builders, “While this is an encouraging signal, we still have a long way to go to get back to a normal flow of credit to builders.”

The rising prices are great news for Sellers, but the tight supply of homes has priced many would-be Buyers out of the market, depending on their price range or neighborhood. Once the added financing yields more housing supply, it will also benefit first-time buyers who have been looking for a new home. 

In the Pikes Peak area, there are still affordable homes available for most Buyers, but it’s best to move quickly if you’ve been considering a move in order to get more of what you want at a more affordable price and interest rate.

 

GDP REVISION PUT DAMPER ON EARLY 2014 GROWTH HOPE

Wall Street Journal, 3.1.14

Last Friday the Commerce Department reported that the gross domestic product (GDP), the broadest measure of goods and services produced across the economy, grew at a seasonally adjusted rate of 2.4% in the final quarter of 2013, down from an initial reading of 3.2%. 

It is assumed that the lower rate was in response to consumer and business constraint due to the economy’s momentum slipping, bad weather across the U.S. and overseas volatility.  These factors will more than likely diminish hopes for an early 2014 breakout in growth.

“Other recent economic gauges, alongside the downgraded GDP growth, have flashed warning signs.  Measure of consumer spending, job creation, factory output and the housing market have come in well below expectations.”

It should be noted that existing home prices continue to grow while sales continue to slow down.  Lawrence Yun, NAR chief economist said unusual weather is playing a big role.  “Disruptive and prolonged winter weather patterns across the county are impacting a wide range of economic activity and housing is no exception,” he said.  “Some housing activity will be delayed until spring.  At the same time, we can’t ignore the ongoing headwinds of tight credit, limited inventory, higher prices and higher mortgage interest rates.  These issues will hinder home sales activity until the positive factors of job growth and new supply from higher housing starts begin to make an impact.”

While this is a national measure, some of the same issues have plagued the local housing market—namely bad weather and in our case, Sellers sitting on the fence in hopes of higher prices on their homes. 

Just a reminder—while home prices will continue to rise, thus providing more home equity for homeowners, if you are looking for to Sell and Trade Up or to Buy for the first time or investment purposes—the home you are looking for will also be increasing in price.  And with mortgage rates due to rise slowly, but steadily, this year—now is a better time than later if you are sitting on the fence. 

Something to consider—with more people being put in a position to rent rather than buy at present—you might want to think about keeping your present home as an investment and leasing it out while moving on to your next home.  These are issues I can discuss with you to help you determine if this is the right direction for your personal financial goals.

If you’re wanting to Sell, I’d again like to remind you of the importance in making certain you price your home right, get it good condition, and be realistic in your expectations.  All these factors will make it much easier to make certain that your home is the one that gets to closing.

If you are sitting on the fence or just beginning to think about a move, why not give me a call and let me help you determine what’s in your best interest?  Sometimes it’s good to wait, and sometimes not, but if you’re in the market or about to be, I am here to help you make an informed decision.  Just give me a call at 598-3200 or email me at Harry@HarrySalzman.com and let’s start the conversation rolling.

 

LOCAL FORECAST IS BRIGHT

The Gazette, 2.27.14, Colorado Springs Business Journal, 2.28.14

Great news was delivered at the Vectra Bank Economic Forecast Update I attended last week.

According to the presentation by a University of Colorado economics and finance professor, job growth in Colorado this year will be the strongest since 2000 and will be especially strong in Southern Colorado.

Rich Wobbekind, executive director of the school’s Business Research Division, indicated that Colorado is expected to rank in the top six states in job growth, with a rate of more then 2 percent this year.

And next year he said Colorado will rank in the top three with a job growth of nearly 3 percent.  The strongest growth will come in construction and technology, he said. 

“I expect stronger growth this year in Colorado Springs as the state continues to recover, especially along the Front Range, and I expect that growth will be much more pervasive and moving south,” Wobbekind said.

“Regionally, with ongoing net migration, Colorado is ‘probably the strongest-growing state in the West’ and one of the fastest-growing states in the country, with 83 percent of the population in 12 Front Range counties, including El Paso County.”

Wobbekind also said he expects the GDP to grow by 3 to 3.5 percent this year.

“Stability in the federal budget will be helpful to the Colorado Springs economy, which will reduce uncertainty, because it depends so heavily on defense spending,” he said.  But he added that cuts to the Army are coming that could affect the area.

Local foreclosure sales have “gone down significantly year over year” as I’ve pointed out many times and considering we’ve had fewer filings than many areas, this is one more positive for the Pikes Peak area. 

Wobbekind said the slower job growth in our area has been linked to military and federal government spending which has declined in the past two years.  His forecast indicates the economy growing at a rate of 3 to 3.5 percent this year and will produce an average of 200,000 jobs a month, with unemployment falling below 6 percent by year-end. 

Recent college graduates and those over 55 have had difficulty in finding jobs so consumer confidence remains somewhat weak and considerably below pre-recession levels.  However, according to Wobbekind, “it is not unusual for the recovery to gain strength in the sixth or seventh year after a recession” so the positive outlook for Colorado Springs is right on track.

 

REALTORS OPPOSE TAX PLAN TO LIMIT MORTGAGE INTEREST DEDUCTION

National Association of Realtors, 2.27.14

Last Wednesday the following statement was issued by NAR:

“NAR supports reforms that promote economic growth, but we strongly oppose severely altering the rules that govern ownership and investment in real estate.  Real Estate powers almost one-fifth of the U.S. economy, employes more than 17 million Americans, and contributes a quarter of all federal and state tax revenue and as much as 70 percent of local taxes.

“We are extremely disappointed with several of the provisions contained in U.S. House Ways and Means Chairman Dave Camp’s tax reform draft released today (2.26.14), namely proposed limits on the mortgage interest deduction and capital gains, and the repeal of deductions for state and local property taxes.”

These proposed changes to the taxation of real estate will impact every single American, either directly or indirectly.  If this passes, it will take away an essential reason many Americans choose to own their own home—namely tax deductions that make home ownership possible and affordable for many. 

You might want to take time to write your Representatives and let them know you are opposed to any bill that will impact or limit your mortgage, capital gains and state and local property tax deductions.

NAR intends to carefully analyze the details of the Chairman’s plan in order to educate the public and Congress on long term implications and I will keep you abreast of news as it becomes available to me.

 

HOT HOME PRICES DUE TO COOL DOWN

Wall Street Journal, 2.26.14, RealtorMag, & RISMedia, multiple dates, Kiplinger Letter

Even though home prices rose to their largest annual gain since 2005, signs keep pointing to a leveling off this year.  Rising home prices are good for consumers who were once under water and now can see some home equity.  However, higher prices along with rising interest rates are reducing affordability, which has curbed sales. 

The most significant reason stated was interest rates which are predicted to rise to 5% or more for 30-year fixed-rate loans by year-end.

Another factor will be more homes going up for sale as price hikes have pulled homeowners out from mortgages that are underwater, making them more willing to sell.  This will loosen inventory a bit.

The Kiplinger Letter recently forecasted a modest 4 to 4.5 percent gain in home values for 2014 vs. an 11 percent gain in 2013. 

“More moderate growth this year is not necessarily bad news, it signals a more sustainable, long-term growth trajectory that will help quell fears that another bubble is arising,” says Gillian White, Kiplinger Letter’s associate editor.  “Rising rates will also be helpful in some cases, cooling overly hot markets, where cheap rates and high demand sparked outsized price hikes.”

 

HOW THE QUALIFIED MORTGATE (QM) IS IMPACTING LENDING SO FAR

RealtorMag, 2.18.14

A recent NAR survey of a sample of lenders to determine the effect of the QM lending rules showed the following:

• 55 percent of survey respondents say the QM rule would impact 2.6 percent to 20 percent of the mortgage originations.
• 60 percent of lenders indicate they were most concerned about the impact of the 3 percent cap on points and fees.
• 45 percent of lenders say they would not originate non-QM mortgages, while a majority said they would defer to investors’ preferences on how to treat non-QM loans.
• About a fifth of lenders surveyed say they did not know whether they would charge non-QM borrowers higher rates.  However, the most frequently cited change for prime and near-prime borrowers was a rise of 50 to 75 basis points and 150 basic points for subprime.

According to Ken Fears, manager of Regional Economics and Housing Finance Policy for NAR’s Economists’ Outlook Blog, “Consumers should expect to have to document their income, employment and resources.  If someone has a high debt-to-income ratio, the FHA, as well as Fannie Mae and Freddie Mac, will be more lenient than private financers.”

 

GOOD NEWS FOR “BOOMERANG BUYERS”

RealtorMag, 2.26.14

Former homeowners who lost their homes to a short sale or foreclosure are now re-entering the housing market.  After spending a few years rebuilding credit, they are ready to begin again.

At three years past the peak of the foreclosures, it’s the time when most people would qualify for another loan according to Daren Blomquist, spokesman for Realty Trac.  “The market really needs these boomerang borrowers to maintain the current recovery,” he added. 

Some boomerang borrowers may find they need to put as much as 20% down in order to qualify, while others are finding opportunities to put down as little as 3.5 or 5 percent. 

While wait times for loan qualification may vary for former homeowners, the typical wait times are:

• Seven year wait for homeowners with a previous foreclosure before they can qualify for a new mortgage through mortgage giants Fannie Mae and Freddie Mac.  If the foreclosure was included in a bankruptcy, the borrower has to wait only four years.
• Two year wait for homeowners who underwent a short sale before they are eligible for another Freddie Mac and Fannie Mae loan.
• Three year wait for homeowners seeking an FHA loan after a foreclosure or short sale.  Some homeowners who underwent a foreclosure because of at least a 20 percent cut in their pay may be able to qualify for a new mortgage after just a year through FHAs Back to Work program.

If you, a family member, co-worker or friend was in the unfortunate situation of having to give up their home, now might be the time for getting back in the game.  Please call me and let’s see whether or not the time is right to again qualify while mortgage rates are still considerably low and homes are still affordable for most income brackets.  I will do my part to help Boomerang Borrowers to once again fulfill the “American Dream” of home ownership.

 

HARRY’S THOUGHT OF THE DAY  (hint, hint—send me your referrals, please)

 

 

February 18, 2014

 

HARRY’S BI-WEEKLY UPDATE

                            A Current Look at the Colorado Springs Residential real estate Market

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

             

                                          

COLORADO SPRINGS VOTED MOST ROMANTIC CITY

Well, now it’s official.  The Wall Street Journal’s article on Thursday titled “The Best Places to Find Love” told us what we already knew.  Not only can we claim breathtaking mountain views, home to the U.S. Olympic Committee and the U.S. Air Force Academy and the birthplace of the song “America the Beautiful”, but we are now the “Most Romantic City in the U.S.”.

“According to data gathered by researchers at Facebook, Inc., Colorado Springs residents couple up in committed relationships at a higher rate than in other major cities.”  Some of the reasons cited were strong military and religious communities along with being a college town and an outdoor sports hub attracting more men than women. 

The article says that “it’s a place where people keep fit, active and social, and the growing downtown bar scene probably doesn’t hurt”.

So, if you’re looking for romance, or just looking to keep romance alive, this is the place to be.

 

NAR PUBLISHES FOURTH QUARTER HOUSING STATS…PIKES PEAK AREA STILL DOING WELL IN COMPARISON

The Wall Street Journal, 2.12.14 and NAR

In a report of the164 largest metropolitan areas by the National Association of Realtors (NAR), many of the hottest real estate markets started to cool in last year’s fourth quarter and suggests that higher interest rates and “sticker shock” pushed some Buyers to the sidelines at year-end.    

Released last week, the report includes every MLS sale in these cities over the past four quarters, as well as the past four years.

The median price of an existing home was $196,900, a 10.1% increase overall from a year earlier, compared to the third quarter 2013 which had shown a median price gain year over year of 12.5%. 

“The largest gains continue to be in the markets that were hard hit by the real estate bust and have seen a frenzy of investor interest during the past year.  Many of those markets, however, have cooled a bit, which real-estate agents contend is a good thing because the price run-up had started to scare off Buyers.”

Lawrence Yun, NAR chief economist, said there are two ways of looking at the price gains.  “The vast majority of homeowners have seen significant gains in equity over the past two years, which is helping the economy through increased consumer spending,” he said.  “At the same time, home prices have been rising faster than incomes, while mortgage interest rates are above the record lows of a year ago.  This is beginning to hamper housing affordability.”

“Added housing supply will help moderate price growth this year, and should help to stem erosion in affordability, but mortgage interest rates are projected to rise above 5 percent by the end of the year,” Yun said.

NAR President Steve Brown said consumers need to keep in mind that all real estate is local.  “The national figures provide useful background, but it really gets down to supply and demand in a given neighborhood,” he said.  “Metropolitan area figures are an excellent gauge of local housing markets, but there can be widely ranging conditions within a metro area.  This is why it’s best to consult with a Realtor who has additional resources and can provide much greater detail on specific locations.”

Colorado Springs showed a 4.5% growth over the same quarter last year; however, the median sales price in our area was $217,600—10% higher than the median price of the top 164 cities.

This higher local appreciation is due to Colorado Springs having lower foreclosure percentages than many other areas in recent years and the home values here didn’t dip as low as they had in other cities.

We are forecasting the increase in housing values for the Colorado Springs area to be in the 3-5% range in 2014.  

For a look at all 164 markets included in the data base, please click here.  As always, I’ll be happy to answer any questions you may have regarding this survey or any real estate situation.

 

MORTGAGE RATES SLIDE AGAIN

Wall Street Journal, 2.6.14 and Main St by Brian O’Connell, 2.12.14

Mortgage rates fell to their lowest level since mid-November due to unease over economic growth in the U.S. and market turmoil abroad drove investors to load up on government bonds, thus pushing down long-term interest rates.

While this hasn’t triggered any meaningful gain in home-loan refinancing, it is causing potential Buyers and Sellers to wonder if they can afford to wait much longer before taking action. 

With most real estate industry observers saying mortgage rates will rise significantly in 2014, to roughly 5% for a 30-year fixed-rate mortgage, many fence-sitting Buyers (and Sellers who want to sell and trade-up) could pay a steep price for waiting.

As I write this, the current interest rate of a 30-year, fixed-rate mortgage is 4.0%.

 

SPRING SALES RUSH STARTING EARLIER THIS YEAR

Bloomberg 2.7.14  and  Keeping Current Matters, 2.11.14

Despite harsh weather across most of the country, the spring selling rush may already be underway as some homeowners appear to be listing their properties to take advantage of the rebounding home prices and improved equity. 

Sellers appear to be somewhat worried about what the spring will bring in terms of higher interest rates and the possibility of too much available inventory or even a possible housing crunch.  

Last year inventory shortages persisted when supply was at a 12-year low leading into spring and the shortage helped boost home prices and sparked bidding wars in some areas.  With new home construction now at a third of its 2006 peak, inventories will likely still be tight this spring.  However, economists are saying that improved home prices will likely convince more Sellers to sell this year, and that should relieve the inventory crunch.

“Rising inventory is the primary reason that we expect the pace of price gains to drop back,” says Paul Diggle, property economist for Capital Economics Ltd.  “Prices are expected to rise only 4 percent nationally this year, compared to an 11 percent gain in 2013.”

How does this affect you?  Well, if you’ve been considering selling to trade up or buying for investment purposes, now is the time to start the ball rolling.  With home values up, most people are seeing gains in their home equity, thus allowing them to move forward on plans to upgrade, or downgrade, depending on their needs. 

Here are Five Reasons to Buy a Home Now Instead of Waiting:

• Supply Is Shrinking—finding the home of your dreams may be more difficult going forward with no longer a large assortment to choose from.  Homes in the best locations sell first so you don’t want to miss out.
• Price Increases Are on the Horizon—prices are projected to appreciate by over 25% from now to 2018.  First time Buyers will likely pay more in interest rates and price if they wait until spring.  Even if you want to Sell and Trade Up, it will likely cost you more in net dollars as the home you will buy will appreciate at approximately the same rate as the home you now own.
• Owning a Home Helps Create Family Wealth—in a recent Fed study it was revealed that the net worth of the average home owner is 30 times greater than that of a renter.  Whether you own or rent, you are paying someone’s mortgage.  Why not let it be yours?
• Interest Rates are Projected to Rise—the Mortgage Bankers Association, the NAR, Freddie Mac and Fannie Mae are all projecting that the 30-year mortgage interest rate will rise to over 5% by this time next year.
• Buy Low, Sell High—real estate today is “low” in comparison to where it’s projected to go, so if you’re looking to Buy—again, don’t wait too long.

Interest rates are still low but not likely to remain that way and available options are not what they were, but there are still enough choices to satisfy most consumers.  But—if you’re thinking about it—don’t wait too long.  Call me today at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if this is the right time for you.  I can help you make an informed decision based on your personal needs, wants and budget.

 

STEVE WOZNIAK WAS KEYNOTE AT CSBJ’S CELEBRATE TECHNOLOGY EVENT

I attended the  “Celebrate Technology” event sponsored by the Colorado Springs Business Journal on February 7, 2014 and was enlightened by keynote speaker, Steve Wozniak, “The Woz”, who co-founded Apple Computer with Steve Jobs. 

His insight into technology, education, product delivery and company management was refreshing and insightful.  Hearing about the beginnings of Apple Computer “straight from the horse’s mouth” was also a treat.  Below is a picture of me with “the Woz”. 

I want to take a moment here to congratulate all of the companies and individuals honored at the “Technology Celebration” and to commend the CSBJ on putting on such a terrific event.  I look forward to more speakers of the caliber of Steve Wozniak.

                                      

                                      Me with Steve Wozniak at “Celebrate Technology”

 

HARRY’S INTERESTING TIDBIT OF THE DAY

Since the first Winter Olympic games in 1924 through the Vancouver games of 2010, Norway, with a population of five million, has won more gold and total medals (303) than any other nation.  The U.S. is second in gold and total medals (254) but has a population of 314 million, 63 times that of Norway.  This year these nations will again fight it out for spot number one.  

                                                          

February 3, 2014

 

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.

             

                                                    

WINTER WONDERLAND

Now that football season is thankfully over (not going to talk about it, so don’t ask) it’s time to take advantage of this unusually snowy season and head to the mountains.  That’s one of the things I love best about Colorado Springs—give us two hours or less and we can be found skiing, snowboarding or simply taking in the sights.  Just two weeks ago I was up in Breckinridge for the Budweiser International Snow Sculpture contest and it was truly awe-inspiring.  Below are a couple of pictures taken there.  For those of you relocating to Colorado and for those who live here, it’s so fabulous that we can find such diverse things to do in such close proximity.  Enjoy them all.

    

 

LOCAL MONTHLY STATISTICS--HOT OFF THE PRESS                                                          

Statistics provided by the Pikes Peak REALTORS Service Corp, or its PPMLS

On Saturday I received the Listing and Sales results for the Pikes Peak area and January’s statistics were much as I expected they would be.  As I predicted, the new mortgage lending regulations, which took effect on January 10, 2014, are starting to slow down the market.

This was affirmed at the Annual meeting I attended last week of the Institute of real estate Management/Southern Colorado Chapter.  During his presentation, keynote speaker Fred Crowley, Ph.D., Senior Instructor in the College of Business at UCCS, indicated that he anticipated the number of home sales in the Pikes Peak Region to remain flat when compared to 2013. 

Interest rates have dropped about ¼ of 1% in the past two weeks, most likely due to fewer mortgage applicants.  Housing prices are up and appreciation of local home values in 2014 are estimated to be 3-5%, which is certainly acceptable but the number of sales will likely continue to remain flat in comparison to last year. 

Properties last month, exclusively in El Paso County, show that homes sold brought in 98.2% of the List Price.   Single Family/Patio Home inventory as of January 31, 2014 is up 10.2% compared to a year ago and average days on the market is 81.

Here are some highlights of the latest report, comparing January 2014 to January 2013:                     

                        Single Family/Patio Homes:

• New Listings are 1,214, Up 0.7%
• Number of Sales are 596, Down 9.7%
• Average Sales Price is $234,580, Up 3.1%
• Median Sales Price is $211,000, Up 3.4%
• Total Active Listings are 3,228, Up 10.2%

                        Condo/Townhomes:

• New Listings are 141, Down 19.0%
• Number of Sales are 76, Up 4.1%
• Average Sales Price is $171,767, Up 19.6%
• Median Sales Price is $133,000, Up 4.9%
• Total Active Listings are 352, Up 5.1%
•  

COLORADO SPRINGS AREA MONTHLY SALES ANALYSIS*

                                                Median Sales Price               Average Sales Price

Black Forest                             $315,000                              $341,108

Briargate                                   $329,900                             $327,257                    

Central                                      $145,000                              $153,570

East                                           $170,000                               $174,258

Fountain Valley:                       $175,250                              $190,428

Manitou Springs:                     $207,500                               $228,375

Marksheffel:                             $237,125                              $238,217

Northeast:                                 $211,000                               $227,471

Northgate:                                $322,750                               $335,017

Northwest:                                $332,000                               $389,405

Old Colorado City:                  $212,000                               $210,254

Powers:                                     $217,000                              $228,570

Southwest:                               $213,000                              $295,740

Tri-Lakes:                                 $377,500                              $403,958

West:                                         $206,000                               $251,000

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

To view the 12-page report in its entirety, please click here.  If you have any questions, I’ll be happy to discuss them with you.

For those wanting to Sell and Trade Up, it’s still a good time due to the still low mortgage rates and increased equity in your present home.  It is my recommendation that those looking to sell should price their homes realistically and be creative and innovative in order to get more interest from prospective Buyers and to get it to closing.

Rents are continuing their upward climb, so those looking for Investment Properties should consider Buying sooner than later.

As for first time buyers, it’s going to be tougher to get approval, but if you are prepared for the new regulation requirements and have a decent credit rating, the process should be somewhat smoother. 

These are areas where my 40-year plus experience can be invaluable.  I understand the market and all the new regulations and am here to help you make the right financial decision for you and your family. My relationship with experienced, reputable mortgage lenders is especially important in today’s environment.  Call me at 598.3200 or email me at Harry@HarrySalzman.com today and let’s see how I can put this to use for YOU, your family members, friends or co-workers.

 

2013 HOME SALES ROSE TO STRONGEST LEVEL IN 7 YEARS

RealtorMag,, NAR, 1.24.14

With existing home sales across the USA edging up again in December, sales for all of 2013 were the highest since 2006, and median home prices also maintained strong growth, according to the National Association of Realtors (NAR).

Lawrence Yun, NAR chief economist, said housing has experienced a healthy recovery over the past two years.  “Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market,” he said.  “We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended up with a year that was close to normal given the size of our population.”

NAR President Steve Brown says that with job growth expected this year, home sales should hold despite rising home prices and higher mortgage rates.

“The only factors holding us back from a stronger recovery are the ongoing issues of restrictive mortgage credit and constrained inventory,” Brown says.  “With strict new mortgage rules in place, we will be monitoring the lending environment to ensure that financially qualified buyers can access the credit they need to purchase a home.”

 

IT’S 2014—WHY AREN’T MORTGAGE RATES HIGHER YET?

Lots of reasons, but mainly due to the fact that the Fed’s tapering of it’s $85 billion-per-month-buying program (which helped keep rates historically low) hasn’t yet affected the current rates. 

BUT—be assured that analysts are still predicting a rise in mortgage interest rates this year.  CNBC reports “Interest rates will rise because interest rates always increase with an improving economy and a strong stock market, which appears to be the current trajectory, though they likely will rise more slowly than some have predicted”.

Again—if you are currently in the market for a new home and are concerned about interest rates—now is the time to act.  They won’t stay where they are forever and all signs keep pointing to somewhere between 4 and 5 percent by years end.

 

HIGH HOPES MAINTAINED BY HOMEOWNERS, BUYERS FOR 2014

In a survey conducted by LendingTree, 69% of respondents have a positive outlook on housing this year and 63% hold a similar view for the economy at large, which may will translate to a more active market than previously predicted. 

These hopes led 71% of respondents to say they are considering selling their home in 2014.

“As home values continue to improve across the country, sellers who have been sidelined due to low property values will start to take action in the market,” said Doug Lebda, founder and CEO of LendingTree.  “Although it’s unlikely that 70 percent of current homeowners will sell this year, it’s a positive sign for the housing market that more homeowners are considering the possibility of moving.”

In the survey, 72% said home prices in their area increased throughout 2013 while 20% said values were down and 8% said they were flat.

Prices rose an average of 10.2% in areas where home values we said to have increased and among those who said the values fell, the average decrease was thought to be 9.2%.

According to the most recent Case-Shiller home price data, prices in the nation’s 20 biggest markets were up an average of 13.6% year-over-year as of October 2013.

These kinds of gains are important to sellers—of the 71% of homeowners who said they are thinking about selling this year, 47% said they plan to sell if they see an increase in their home value.  Only 24% said they would sell regardless. 

These are the gains that are helping my clients Sell and Trade Up—home equity is back and growing as prices increase—so one more time—if you are in the market—NOW is the time to get the conversation started.  With consumer confidence, prices are rising and interest rates won’t be too far behind.  Call me today and let’s get the ball rolling.

 

NAR PROFILE OF BUYERS, SELLERS

RisMedia

A report issued by NAR provided some interesting statistics in comparing Buyers and Sellers who choose to use a real estate Agent vs. those who don’t.

In polling consumers about their home Selling experience, NAR learned:

• Almost half of Sellers traded up to a larger size and higher priced home and 59% purchased a newer home.
• The typical Seller lived in their home for nine years.  In 2007, the typical tenure was only six years.
• 88% of Sellers were assisted by a real estate Agent when selling their home.
• Recent Sellers typically sold their homes for 97% of the listing price, and 47% reported they reduced the asking price at least once.
• 13% had to delay or stall selling their home because the value of the home was worth less than their mortgage.
• 36% of Sellers offered incentives to Buyers, most often assistance with closing costs and home warranty policies.

The NAR’s feedback from For-Sale-By-Owner (FSBO) Sellers indicates:

• The share of Sellers who sold their home without the assistance of a real estate Agent was 9%.  40% of those knew their Buyer prior to the home purchase.
• The primary reason Sellers chose to sell their home to a Buyer they did not know without the aid of a real estate Agent was that they did not want to pay a fee or commission. (46%)
• Approximately one-third of the FSBO Sellers did nothing to market their home and 64% did not offer any incentives to Buyers.

• The typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.

In the home search process, the NAR report revealed these points about Buyers questioned about their home search process:

• The first step in the process for 42% of Home Buyers was looking on-line for properties and 14% of Home Buyers also first looked on-line for information about the home buying process in general.
• The use of the Internet in the home search rose slightly to 92%.
• 87% of Buyers viewed real estate Agents as a useful information source by those who used an Agent while looking for a home.
• The typical Home Buyer searched for 12 weeks and viewed 10 homes.
• Finding the “right” home was the most difficult step in the home buying process for more than half the Buyers.
• Approximately nine in ten Buyers were at least somewhat satisfied with the home buying process.

In today’s market, there is a lot of considerations when it comes to Buying and Selling.  One of the most important financial decisions a family ever makes is the purchase of a home.  That’s where a reputable real estate Agent can be invaluable.  He or she can make the process far easier for you and can make certain that all the “i’s” are dotted and all the “t’s” crossed. 

We at Salzman real estate Services, Ltd take pride in our knowledge of not only the local market, but in our experience in getting the best possible results for all our clients.  We look at each Buyer and Seller’s individual situation and help them determine the right direction for their particular wants, needs and budget.  We strive to be your partner every step of the way and want to make your home Buying or Selling experience as stress-free as possible for you.

 

HARRY’S JOKES OF THE DAY

 

Visit Website December 2, 2013   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 SURVEY POINTS TO OPTIMISM WHEN COMPARED WITH FOUR YEARS AGO The Gazette11.23.13, Colorado Springs Business Journal 11.29.13 A new survey conducted by Summit Economics of Colorado Springs indicates that a growing number of local area business people are saying that economic conditions are improving, especially when compared to the height of the recessions four years ago.  Well, so is the rest of the country, but as I’ve been showing you, we appear to be ahead of most other similar sized cities in growth, economic recovery and quality of life.  I was one of the business people selected to complete the survey questionnaire.  In referencing the respondents, Tom Binnings, the survey’s primary author said, “They’re certainly feeling better about the economy…and they’re certainly creating jobs, from all we see in the data.  All that’s very positive.  And it’s good that their expectations are growing.”  Ralph Routon, CSBJ editor, said that “on the bright side, respondents from 275 area firms reported that they had added 2,147 net jobs since 2011. In this survey, nearly 73 percent of 393 respondents answered either ‘much better’ (2.5%), ‘better’ (31.6%) or ‘about the same’ (38.7%).  Those three numbers had totaled only 23 percent in 2009 and 57.6 percent in 2011.  Those who view the local economy as worse or much worse total 27 percent, but that’s down from 39 percent in 2011 and a whopping 77 percent in 2009.” Routon, along with a number of business owners, managers and others, point out that a “dissatisfaction with the current state of the overall business climate is also on the rise”—indicating that there is still much work to be done. The survey indicated that the biggest perceived problem to business owners was the ability to hire quality workers.  “Nearly 56 percent of respondents said they wanted local government to fund more economic development initiatives.”  This was the highest percentage of any answer on the survey.  The Pikes Peak Region 2013 Business Climate Survey Section Topics are: Focus and Methodology Respondent Demographics Satisfaction with the Pikes Peak Region Business Climate World Class Business Climate Infrastructure Finance Regulations Entrepreneurial Culture Work Force Young Talent Preferences and Recommendations The survey is 41 pages (or computer screens).  You see a copy of it by going to www.summiteconomics.com and click on “Publications” and then “Free Reports.”   Highlights include: How would you rate your satisfactions with the overall business climate in the Pikes Peak region?  40.4 percent of respondents said “not very satisfied” compared with 38 percent in October 2011 and 35.5 percent in April 2009. How would you rate the local business climate in the Pikes Peak region compared to two years ago? 34.1 percent said the climate was better or much better than two years ago, compared with 17.7 percent in October 2011.  27.3 percent of this year’s respondents said the business climate was worse or much worse than two years earlier, down from 39.2 percent in 2011.  38.7 percent said the business climate was about the same as two years ago, down from 39.9 percent in 2011. In your opinion, what are top problems/barriers your organization faces in doing business from an El Paso County or Teller County location? A little more than 10 percent of respondents cited workforce issues, the highest percentage for any problem listed by respondents.  Government issues were the second-biggest problem, cited by about 10 percent of respondents, and about 7.5 percent of respondents cited transportation issues.  A little less than 7.5 percent of respondents cited political issues; two years ago, political concerns were listed by only about 1 percent.   THIRD QUARTER ACROSS AMERICA FINDS HOME VALUES STRENGTHENING BUT AFFORDABILITY SLIDING Rismedia.com 11.18.13, WSJ 11.27.13, The Gazette 11.26.13 Just as the housing market is showing signs of stabilization, weaker consumer confidence and the possibility of higher mortgage rates could result in a bit of turbulence in the sector. “Prices in most major U.S. cities rose in September, though more slowly than in prior months, according to the Standard and Poor’s/Case-Shiller home-price index.  ‘The market’s clearly getting better,’ said Jed Kolko, chief economist at Trulia, Inc.  ‘The housing recovery has not stopped or gone into reverse.’” According to Nick Sargen, chief investment officer at Fort Washington Investment Advisors, which has about $45 billion in assets under management, “This shows the housing sector is still moving along in the right direction and not rolling over.  The sector is critical to the overall recovery story, so it is good to see some positive news.” It’s not just the looming mortgage rate increases that are affecting affordability.  National Association of Home Builders (NAHB) Chairman Rick Judson has said “with markets across the country recovering, home values are strengthening at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor.”  In October, single-family permits rose modestly and reversed some of their summer decline.  This is the segment considered to be a steadier gauge of the underlying health of the housing market.  Stronger permits can signal builder optimism.  What does this mean to you?  Well, if you are in the market to buy and trade up, sell to relocate or looking for investment property, NOW is the time.  Mortgage rates are forecasted to increase very soon and availability of homes is remaining steady at the moment.  Your turn-around time now to have a mortgage processed will definitely be shorter than after new regulations take effect in January 2014. What I do know, as already mentioned by reputable lenders, is that the new laws are going to affect all homebuyers trying to obtain a mortgage.   One thing is certain—it’s not going to make things easier for anyone.  As I’ve mentioned before, mortgage lenders are going to be held responsible to a much greater degree than in the past for all their loans, thus making it more difficult, especially for first-time Buyers. Give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s take a look at what you can do before the year-end, if possible.    BUYERS IN IT FOR THE LONG HAUL According to most of the reports I’ve recently read, many of today’s Buyers are looking to hold on to their housing investment for the foreseeable future.  The reasons for this are many: Historically low interest rates that more than likely will not be seen again in our lifetime basically allow Buyers to get “double the house” compared to what they could get several years ago. ? ??The possibility of refinancing in the future probably won’t be an issue as doing so would more than likely increase mortgage payments.  ??Buyers today want to plant roots in their communities, according to research from the NAR.? ??While home prices won’t likely appreciate like they did during the housing boom, the slow appreciation will allow homeowners to see their home as building equity for a future “nest egg”. Here’s where I can help.  The hard part of buying for the long haul is the ability to see “into the future”—anticipating what you might need in various stages of your life and the life of your family.  That can involve many things, including school districts, location to public transportation or shopping and much more.  With my forty plus years experience, I’ve seen it all.  I can help answer questions you might have about most local areas and help you determine what’s exactly right for you and your lifestyle and/or family situation.  This can be invaluable whether or not you are looking to move to another neighborhood or looking for investment property.  It is even more invaluable for first time buyers, because as I mentioned earlier, it’s going to be tougher for those folks to begin with.  My expert knowledge can help guide them in the right direction.  So if you, or any family member or co-worker are wanting my advice, please call or email me today.  Home buying is one of the biggest purchases anyone will make and I pride myself on being able to help in any way possible to make your real estate dreams come true.   JOKE OF THE DAY   (Thanksgiving at the Salzman’s) FEATURED LISTING         1237 Timber Run HT Price: $180,000 Beds: 3 Baths: 3 Sq Ft: 1625 Beautiful 2-story end unit townhome, half brick* Attached two car oversized garage* Views from the second story of the Front Range & historic Air Force Academy Chapel* UL 3 large BR, 2 1/2 BA* Master bedroom with vaulted ceiling* Twin vanities in bo... View this property >>   Harry A. Salzman. CRS, CRP, CNE e-Pro Internet Certified Broker/Owner email: Harry@HarrySalzman.com Serving: Colorado Springs, Monument. Air Force Academy, Fountain, Security, Woodland Park, Black Forest, Manitou Springs

Visit Website November 20, 2013     HARRY’S BI-WEEKLY UPDATE             A Current Look at the Colorado Springs Residential real estate Market     As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.                     IT’S TIME AGAIN TO GIVE THANKS….   …and I start with you, my readers, clients and friends.  My relationship with you, whether on a personal, professional or combination level of both is reason for me to give thanks every day—not just once a year.  In my 40 plus years in the real estate business, I’ve been so fortunate to have met so many families whose lives I’ve helped enhance through home purchases or investments.  You have trusted and allowed me to help you make some of the biggest monetary decisions of your lives and I in return have had the pleasure of seeing your families grow and prosper.  In fact, today I find myself working with children and grandchildren of some original clients.  And I continue to help relocate those same original clients to either homes more suitable to their “empty nest” situations or to other cities to be closer to family or friends.    For your confidence, your referrals and most importantly your friendship, THANK YOU…THANK YOU…THANK YOU.   I wish you all a very special holiday and to all my Jewish clients, I want to add a “Happy Chanukah” since these two holidays coincide this year for a once in our lifetime event!     LATEST QUARTERLY METRO AREA REPORT SHOWS STRONG GROWTH CONTINUING Realtor.org 11.7.13   The majority of metropolitan areas represented in the recently released quarterly report from the National Association of Realtors continue to show robust year-over-year price gains.    “The median existing single-family home price increased in 88 percent of measured markets, with 144 out of 163 metropolitan statistical areas (MSAs) showing gains based on closings in the third quarter compared with the third quarter of 2012.   Lawrence Yun, NAR chief economist, said market momentum is changing. ‘Rising prices and higher interest rates have taken a bit out of housing affordability,’ he said.  ‘However, we have the ongoing situation of more buyers than sellers in the market, so lower sales will help to take the pressure off home price growth and allow them to rise slowly at a single-digit growth rate in 2014.’   The national median existing single-family home price was $207,300 in the third quarter, up 12.5 percent from $184,300 in the second third of 2012, which is the strongest year-over-year increase since the fourth quarter of 2005 when it jumped 13.6%.”   Colorado Springs had a strong quarter with sales prices increasing 7.8% over the same period last year.  It is important to note that while our area has had a consistent 5.8% annual sales price growth over the years, we were not as badly affected by the downturn as many cities.  The last four quarters were 2% greater than our long term appreciation.    For a detailed look at the full three page report from NAR, please click here.  If you have any questions concerning this report please don’t hesitate to call me at 598.3200.     TOP LENDERS FORECAST housing market GAINS DESPITE NEW ABILITY-TO-REPAY RULES Realtor.org 11.11.13   As I’ve been telling you, the “Qualified Mortgage”, or ability-to-repay rule, goes into effect in January 2014.  While this more than likely means longer turn-around times and heavy documentation requirements, Realtors were told to expect continued market growth in 2014 by some of the biggest names in mortgage lending.   The new rules will likely affect first time Buyers the most and lenders are preparing new learning tools to help these consumers be ready even before they find the house they want to purchase.   Doing your homework is going to be more and more important in this new environment where significant documentation will be required of Buyers and lenders will face strict penalties if a loan is made outside of the specific criteria.   That’s where I come in.  My relationship with lenders has always been a plus for my Buyers and Investors and it will certainly pay off in this “new’ environment.  It is going to be a common goal for me, you, and the lenders to find the way to make home buying and selling as stress free as possible while complying with new regulations.    Let me point out that there is still a little time left in 2013 to take advantage of not only the continuing low interest rates but also to slide in under the need for more documentation and longer closing times.    If you or any family member or co-worker is in the market today, don’t waste another minute.  Give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the dialog moving.     FORECLOSURES SLOW IN THIRD QUARTER   Colorado Springs has continued its slow foreclosure activity due to an improved economy as well as a price rebound that has helped property owners avoid foreclosure.    While we have had fewer foreclosures than many markets in the U.S., those homeowners who were at one time underwater are now seeing their home values increasing and allowing them to have enough equity to sell or refinance.      JOKE OF THE DAY  (Doc-Doc Joke)   A man is sitting at home one evening when the doorbell rings.  He answers the door to find a six-foot-tall cockroach standing there.  The cockroach immediately punches him between the eyes and runs off.  The next evening, the man is sitting at home again when the doorbell rings.  He answers the door, and the same cockroach is outside.  This time, it punches him, kicks him and karate-chops him before running away.  The injured man manages to crawl to the phone and call an ambulance.  He is rushed to the hospital where the doctors save his life.  The next morning, a doctor asks him what happened.  The man explains the attacks by the six-foot-tall cockroach.  The doctor thinks for a moment and says, “Yes, I hear there’s a nasty bug going around.”     FEATURED LISTING          10859 Huron Peak PL Price: $360,000 Beds: 5 Baths: 4 Sq Ft: 4290 Fabulous Home, 2-story, Dynasty Model with finished Basement* Stunning and spacious with all your wants and wishes* Dazzling Pikes Peak Views* All stucco exterior* 5BD, 4BA, 3 Car Garage* Central Air* Crown molding* Ceiling Fans* Home has hardwood f... View this property >>   Harry A. Salzman. CRS, CRP, CNE e-Pro Internet Certified Broker/Owner email: Harry@HarrySalzman.com Serving: Colorado Springs, Monument. Air Force Academy, Fountain, Security, Woodland Park, Black Forest, Manitou Springs

Visit Website November 4, 2013     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. EVERYDAY IS VETERAN’S DAY…   November 11th is the day we officially celebrate Veteran’s Day.  However, there isn’t a day that I’m not grateful for the many sacrifices made by the men and women in our military, both past and present.  Living in Colorado Springs with all its military population, there is a constant reminder of just how many families are affected by the service these people provide.  I go to bed each night secure in the knowledge that the life I have been allowed to live is due in great part to the sacrifices made, both today and in the past.  Let’s all take a minute today to appreciate and recognize the Veterans in our lives and communities.     AND NOW FOR OCTOBER’S GOOD HOUSING NEWS Statistics provided by the Pikes Peak REALTORS Service Corp, or its PPMLS   October is historically a slower month in real estate, but this October didn’t follow that trend.  If you look at the numbers below, you can see that things are still moving in a positive way for El Paso and Teller Counties.  It’s interesting to note that 75% of the total sales in these counties are for homes sold for $300,000 or lower.    Some highlights of the latest report, comparing October 2013 to October 2012 in PPAR include:                                               Single Family/Patio Homes:   New Listings are 1,172, Up 6.0% Number of Sales are 929, Up 17.0% Average Sales Price is $247,712, Up 3.2% Median Sales Price is $218,000, Up 3.0% Total Active Listings are 3,913, Up 11.4%                           Condo/Townhomes:   New Listings are 135, Up 13.4% Number of Sales are 133, Up 23.1% Average Sales Price is $151,209, Down 2.5% Median Sales Price is $129,900, Down 3.6% Total Active Listings are 438, Up 16.5%   In El Paso County, the Median Sales Price was $219,900 and the Average Sale price was $250,509.  Homes sold for 97.8% of the listing price.  You can look at the chart below to see where your neighborhood was trending in October.   COLORADO SPRINGS AREA MONTHLY SALES ANALYSIS*                                                   Median Sales Price               Average Sales Price Black Forest                             $369,000                               $380,144 Briargate                                   $301,500                               $309,363                    Central                                      $159,950                               $175,361 East                                           $165,000                               $191,931 Fountain Valley:                       $190,000                               $198,096 Manitou Springs:                     $400,000                               $400,380 Marksheffel:                             $220,000                               $250,299 Northeast:                                $220,000                               $239,110 Northgate:                                $245,000                               $390,465 Northwest:                               $307,500                               $341,558 Old Colorado City:                  $263,500                               $266,538 Powers:                                    $215,000                               $228,944 Southwest:                               $247,000                               $288,246 Tri-Lakes:                                 $391,884                               $416,863 West:                                         $216,250                               $285,555 *Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.   To view the complete breakdown on any area listed here or to read the entire 12-page monthly report, please click here.    More on this later, but as you can see, folks are beginning to understand that NOW is the time to sell and trade up, buy rather than rent or buy for investment purposes.  Housing prices are going up and new laws are soon going into effect that could prevent or prolong prospective buyers from obtaining financing.  And, with most houses still selling quickly, choices are becoming more and more limited.  Also, it’s worth noting that foreclosures in the Colorado Springs area have dropped to a ten-year low.  Considering we had fewer than most areas to start with, it appears the improved housing market has helped us in this area too.  However, that also means there are very few “bargains” to be found by Buyers or Investors.    As a Seller if you want to take advantage of today’s market, it’s very important to price your home realistically and be creative and innovative in order to get it to closing before year’s end.  That’s where my 40 year plus experience can be invaluable.  I understand the market and am here to help you make the right financial decision for you and your family.   Call me at 598.3200 or email me at Harry@HarrySalzman.com today and let’s start talking.  Time is running out and if you’ve been waiting, either for better rates or higher prices for your present home, wait no more.  I can guarantee that after January 1 it’s going to be tougher for everyone due to the changes in the law, which I explained in detail in my last eNewsletter.     MORTGAGE RATES FALL AGAIN   According to Freddie Mac, October 31 saw the following national average in mortgage rates—the lowest levels since this past June.   30-year fixed-rate mortgages averaged 4.125% 15-year fixed-rate mortgages averaged 3.25% 5-year hybrid adjustable-rate mortgages averaged 2.75%   That’s a big WOW and certainly a great incentive to those wanting to act now.  These rates won’t be around for long and all signs point to rates moving up at least one percentage point by this time next year.  And that’s even if you can get the financing, due to the new regulations.  I can’t reemphasize enough that this is the time to act.  None of us know exactly how the new law will effect rates and the ease of obtaining financing but we do know that it’s going to cost more and that credit worthiness will not translate to mortgage loan availability.      BUYING CHEAPER THAN RENTING   In the 100 largest metro areas, buying a home is 35% cheaper than renting according to Trulia economist Jed Kolko.  This is one of the reasons that home prices are still going up, although at a slower pace than earlier in the year.    “Home value appreciation is better when it’s boring,” says Stan Humphries, Zillow economist.  “It’s good to see the pace of home value appreciation moderate, allowing the market to get back into a more sustainable balance and not topple over.”   What does this mean to you?  If you are a renter, now is the time to start considering a starter home.  If you wait until after the first of the year, things are sure to be tougher in terms of interest rates and/or getting loan approval.  Call me soon so we can see if there’s a way to move you from a Renter to an Owner and put some extra money in your pocket at the same time.      BUILDERS ARE TARGETING HIGHER END   According to an article in last week’s Wall Street Journal, “newly built homes in the U.S. are getting pricier as better-heeled buyers have rebounded more quickly from the recession than entry-level buyers, spurring home builders to go upscale to match the shift.”   This is the case in the Colorado Springs area, too.  However, don’t despair.  There ARE some homebuilders who are still providing more affordable homes for first-time buyers.  The biggest problem now is going to be the financing available as I mentioned earlier.  If you are in the market for a home now, it’s probably going to be in your best interest to consider a previously owned home as a starter because you will more than likely be able to get in sooner and not be affected by the new lending regulations.  This is a personal decision and one I will be happy to discuss with you in order to help you make a sound financial decision.      real estate MARKET PREDICTIONS FOR 2014—HOUSING FORECAST, OUTLOOK AND TRENDS homebuyinginstitute.com 10.26.13   Some interesting thoughts from an article I recently read:   Eight Housing and real estate Market Predictions for 2014   Home prices will continue to rise in most U.S. cities—various sources have predicted gains of 4%-5% in 2014.    The hottest markets of 2013 will cool in 2014—places like San Francisco, Las Vegas and Phoenix—those that saw the biggest drops in housing values   Local economics will drive housing trends in 2014, as they have since the market crashed   Florida’s housing market will be one of the big stories of 2014—inventory there is finally dropping due to job gains and other economic improvements   Investors will back off, leaving more room for “regular” Buyers—as prices rise there will be less “flipping” and investment buying due to fewer type of “deals” they seek   Market conditions in most cities will continue to favor Sellers over Buyers—fewer available homes will increase competition and “realistic” selling prices will continue to benefit Sellers   The QM (Qualifying Mortgage) rule will define the mortgage market—this is significant to Buyers and refers to the Dodd-Frank Act that I previously mentioned,  which takes effect on January 10, 2014.  The purpose of the Act is to make loans less risky, but in doing so, it’s going to be tougher and tougher to get loan approval, even with great credit.  Again—if you have been waiting—better ACT NOW.   Mortgage rates will rise above 5% sometime in 2014—nothing new here.  We’ve been predicting this for awhile now.  The Housing Stimulus Program is expected to taper off later this year or in early 2014 and with it will go the historic rates we see now.   Obviously these predictions are based on current conditions in the housing market and such conditions are subject to change.  They are the equivalent of an educated guess, but I’ve always felt it better to be “safe than sorry”.  And for the final reminder in this eNewsletter—if you are on the fence—time to jump—or at least to call me and discuss the possibilities.  The more regulation—the more complicated it is going to be.  Let me help take you over whatever hurdles necessary while there is still time.     JOKE OF THE DAY  (ode to the end of another Baseball Season)   Two 90-year old men, Moe and Sam, have been friends all their lives.  Sam is dying, so Moe comes to visit him.  “Sam,” says Moe, “you know how we both loved watching Sky Sox baseball all our lives?  Sam, you have to do my one favor.  When you go, somehow you ‘ve got to tell me if there’s Sky Sox baseball in heaven.”   Sam looks up at Moe from his deathbed and says, “Moe, you’ve been my friend for many years.  I’ll do that for you.”  And with that, he passes on.   It is midnight a couple of nights later.  Moe is sound asleep when a distant voice calls out to him, “Moe…Moe…”.   “Who is it?” says Moe, sitting up suddenly.  “Who is it?”   “Moe, it’s Sam.”   “Come on.  You’re not Sam.  Sam died.”   “I’m telling you,” insists the voice.  “It’s me, Sam!”   “Sam?  Is that you?  Where are you?”   “I’m in heaven,” says Sam, “and I’ve got to tell you, I’ve got some good news and some bad news.”   “Tell me the good news first,” says Moe.   “The good news,” says Sam, “is that there is Sky Sox baseball in heaven.”   “Really?” says Moe.  “That’s wonderful.  What’s the bad news?”   “You’re pitching Tuesday!”     FEATURED LISTING        1237 Timber Run HT Price: $180,000 Beds: 3 Baths: 3 Sq Ft: 1625 Beautiful 2-story end unit townhome, half brick* Attached two car oversized garage* Views from the second story of the Front Range & historic Air Force Academy Chapel* UL 3 large BR, 2 1/2 BA* Master bedroom with vaulted ceiling* Twin vanities in bo... View this property >>   Harry A. Salzman. CRS, CRP, CNE e-Pro Internet Certified Broker/Owner email: Harry@HarrySalzman.com Serving: Colorado Springs, Monument. Air Force Academy, Fountain, Security, Woodland Park, Black Forest, Manitou Springs

Visit Website October 21, 2013     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.               HOMES FOR SALE---EXTRAS INCLUDED   As I’m negotiating to purchase a home on your behalf, I always look for financial “carrots” to help offset some of the buying costs.  And, on the other hand, for many years my listing presentations have had some choice incentives that a Seller might offer to help attract a Buyer.   When working as a Buyer’s Broker, I believe it is my duty to see that the Buyer is aware that they have received a good to a possibly “great” deal.    An article in last Monday’s Wall Street Journal addressed this practice in talking about the “Freebies” that are now being offered to help boost home sales.  They indicated that “home builders have boosted cash incentives and upgrades to lure Buyers…due to rising prices and higher mortgage rates.”   In a booming market, these incentives practically go away, but the “increasing use of incentives underscores the fickle nature of the housing market, which has been gaining steam over the past two years but remains well below the pre-crash peak and often is buffeted by economic shift.”   I am of the opinion that incentives almost always help make everyone feel good about either buying or selling.  Obviously, the types of incentives vary based on the current market.  However, some type of bonus is definitely worth considering, whether you are looking to either buy a new or resale home or looking to sell your present home.   These motivations can include incentives for extras such as wooden floors rather than standard carpeting or an offer to split or pay closing costs.  These “extras” are what I look for when working with my clients.  In today’s market I’m finding those same “extras” are what it might take to get to a closing table.   So if you are looking to sell and trade up, or buy for the first time or for investment purposes, now is a great time to be in the Residential Market here in Colorado Springs.  Along with low interest rates at the present time, you might see some of these “freebies” come your way, too.  Call me at 598.3200 or email me at Harry@HarrySalzman.com so we can discuss your personal situation and see if any of this can work for you.     HOMEOWNERSHIP STILL THE AMERICAN DREAM keepingcurrentmatters.com, 10.18.13   The big question facing the real estate community over the last few years has been how the housing crisis might impact the American public’s belief that homeownership is part of  “The American Dream”.   A recent study at Harvard University’s Joint Center for Housing Studies addressed this in a paper titled “Reexamining the Social Benefits of Homeownership after the Housing Crisis.”  Some of the findings revealed:   Homeownership Still Preferred Over Renting   “Even after the dramatic loss of equity and the high foreclosure rates, the early evidence suggests that people seem to believe that, over the long run, owning is still preferable to renting.  The long term cultural preference for owning seems to have weathered the recent housing crisis.”   Americans Still Expect to be Homeowners   “The research on home-buying expectations supports the conclusion that very large percentages of Americans still expect to buy a home at some time in the future.”   Younger Americans More Desirous of Homeownership   “Moreover, the finding that younger renters and owners are more likely than their older counterparts to expect to own bodes well for the future of the housing market.”   So, “even after one of the most difficult decades in this country’s real estate history, the belief that homeownership is a part of the American Dream still lives on.”    This has been my philosophy forever—I have always believed that there is “never” a bad time to buy real estate as long as it’s considered a personal investment.  In the long run, it will appreciate and as I’ve shown you many times in past eNewsletters, you’ll most often get a better run for your money in real estate than in the stock market or mutual funds over time.      NOTE TO BUYERS:  YOUR WINDOW OF OPPORTUNITY IS STILL OPEN   I have been forecasting the potential 5% mortgage rate for 2014 since this past summer and we heard these same forecasts at the Southern Colorado Economic Forum on September 26, 2013.    While The Fed recently announced that they would continue their current bond purchasing pace until the economy gets stronger, mortgage rates actually went back down.  This was great news for any Buyer who is in the process of purchasing a home.  However, this window of opportunity is expected to close in the very near future, as Ben Bernanke, Chairman of the Fed suggested that the Fed could still scale back the stimulus this year.   The Mortgage Bankers Association, Fannie Mae and Freddie Mac and the NAR have all projected what I’ve been saying—the 30 year fixed rate mortgage will be in excess of 5% by this time next year.  The average of their projections is 5.3%.    “The payment difference in a $250,000 mortgage today and next year figuring 4.37% today and 5.3% next year would be $140.78 a month.  And today’s rates are often lower than that and next year could be even higher than projected AND home prices will more than likely be higher next year than now, so…the savings by buying today are definitely worth it to you.”     ANOTHER BIG REASON TO BUY NOW… Inman.com, 10.17.13   Effective January 1, 2014, a new provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act goes into effect and the “qualified residential mortgage” (QRM) will possibly have far reaching effects that might ultimately lower the number of people who can obtain mortgage loans.   An article on inman.com explained briefly that “QRM was designed to set the bar for residential mortgages and to minimize the risk that borrowers may default.  It requires that debt ratios be limited to 43 percent and loan fees limited to 3 percent, and interest-only loans and negative amortization are not allowed in most cases.   The Dodd-Frank bill also requires the lender to retain 5 percent of any mortgages they make.  In other words, if they make a $100,000 loan they must retain $5,000 to secure the loan.”   For the first time in history, lending decisions after January 1, 2014 will be based on compliance issues rather than Buyer credit issues.    Imagine that a mistake was made on a purchase agreement.  The Buyer and Seller want to change the agreement to correct the mistake, except the law prohibits you from doing so.   “If a lender makes a mistake with any part of the compliance, here’s what will happen:   The lender now has to pay all of the borrower’s closing costs. Even if the mortgage agent made the mistake, the mortgage agent must be paid. The lender cannot deduct any costs or losses resulting from the mistake. The lender still has to close the loan.   What this means for agents, brokers and you, my clients:   There will be fewer loan choices as community banks and credit unions are squeezed out of the market, making it even harder for many borrowers to qualify. The loan process will also probably take longer due to the increased compliance. It will probably be much more difficult and costly to obtain a loan in the future.”   This is already having an effect on mortgage lenders all over the country.  Wells Fargo just this week announced a significant layoff of mortgage lending employees due to lower volume and fewer qualified buyers forecast in the months to come.   So, BOTTOM LINE…if you are sitting on the fence about either Buying or Selling, it’s time to make a move before the end of the year.   No one knows, not even me, what will happen after January 1, 2014 but it doesn’t appear to be in anyone’s best interest to keep sitting on the fence.     AND NOW A WORD FOR THE SELLERS…   My last eNewsletter showed how in the past 12 months our local Colorado Springs market has had a 9.8% gain in Median Sales Price as of September 30, 2013.  Hopefully you now have an additional amount of equity available in your home—maybe even more than you think.    Here are some excellent reasons why you might consider selling your home now:   Demand Is High—There are a lot of buyers out there and they are serious about purchasing right now. Supply is Beginning to Increase—Selling now while demand is high and before supply increases may get you your best price. New Construction is Coming Back—Homebuilders are jumping back into the market, often giving you competition in the Seller’s market. Interest Rates Will Again Rise—Whether you are moving up or down, your housing expense still be more a year from now if a mortgage is necessary to purchase your next home. It’s Time To Move On with Your Live—Sometimes letting the possibility of a few extra dollars can get in the way of the importance of being with family, health, or having the freedom to live your life as you really want.  You can remedy this by putting your home on the market today and get on with your life.   Let’s get together soon to discuss some or all of these things so I can assist you in making the decisions that make the most sense for you financially and personally.  As you have been reading here, it isn’t going to pay to wait, and it probably will end up costing you to do so.      PHILOSOPHY OF THE DAY   ---Karl Eller, April 1999, Eller College of Business, The University of Arizona    “When you are looking at the characteristics on how to build your personal life, first comes integrity; second, motivation; third, capacity; fourth, understanding; fifth, knowledge; and last and least, experience.   Without integrity, motivation is dangerous; without motivation, capacity is impotent; without capacity, understanding is limited; without understanding, knowledge is meaningless; without knowledge, experience is blind.  Experience is easy to provide and quickly put to good use by people with all other qualities.   Make absolute integrity the compass that guides you in everything you do.  And surround yourself only with people of flawless integrity.”     FEATURED LISTING        10859 Huron Peak PL Price: $360,000 Beds: 5 Baths: 4 Sq Ft: 4290 Mega Price Reduction with Excellent Incentives* Fabulous Home, 2-story, Dynasty Model with finished Basement* Stunning and spacious with all your wants and wishes* Dazzling Pikes Peak Views* All stucco exterior* 5BD, 4BA, 3 Car Garage* Central Air* ... View this property >>   Harry A. Salzman. CRS, CRP, CNE e-Pro Internet Certified Broker/Owner email: Harry@HarrySalzman.com Serving: Colorado Springs, Monument. Air Force Academy, Fountain, Security, Woodland Park, Black Forest, Manitou Springs