Real Estate Information

Sept. 16, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

COLORADO IS ONE OF THE 5 STRONGEST PERFORMING HOUSING MARKETS IN THE USA
Daily real estate News | Tuesday, September 11, 2012

Several real estate markets are showing signs of recovery, with median home prices and sales rising. But which markets are showing some of the strongest signs of recovery?

24/7 Wall St. recently evaluated home price changes for the year ending in July, foreclosure data, the unemployment rate, and other factors to help determine which housing markets are performing the strongest.

The states that emerged on top of the list are:
1. Arizona
2. Idaho
3. Utah
4. South Dakota
5. Colorado - Home price change in the last year: +7.3%. Median home price: $240,000

And keep in mind that Colorado Springs historically beats the rest of the state in these areas !!!

TRULIA SAYS BUYING A HOME IN COLORADO SPRINGS IS CHEAPER THAN RENTING
TruliaTrends – Sept. 13, 2012

The most important housing decision that most consumers face is whether to rent or to buy. So to help them with this decision, Trulia took a look at the key market factors affecting the cost of homeownership. First off, asking home prices have risen by 2.3% year over year in August (3.8% excluding foreclosures); however, rents have risen more (4.7%). This means that prices are lower relative to rents than they were a year ago.

But more importantly, mortgage rates have fallen: the best rates this summer have been around 3.5%, while last summer rates were closer to 4.5%. Based on asking prices and rents during the summer of 2012, buying is now cheaper than renting in the 100 largest U.S. metros. There is no market where the financial decision is even close, so long as you plan to stay in the home for at least seven years, get 3.5% mortgage, and itemize your tax deductions.

As noted in the Trulia survey of the top 100 metro areas in the US, the monthly cost of homeownership in Colorado Springs is $741. The monthly cost of renting is $1,291. That’s a difference of 43%, or, $550 per month more in your pocket.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss what this could mean to your financial security.

FEWER HOMEOWNERS UPSIDE DOWN ON MORTGAGES
THE GAZETTE September 12, 2012 12:04 PM

The picture has brightened for local homeowners who had been underwater on their properties.
In Colorado Springs, 19.9 percent or 30,584 of all residential properties with a mortgage were in negative equity during the second quarter of this year, according to a report released Wednesday by California-based housing data firm CoreLogic.

Negative equity refers to owners who owe more on their properties than what they are worth — known as being underwater or upside down. A decline in home values, an increase in mortgage debt or a combination of the two contribute to negative equity, according to CoreLogic.

The latest Colorado Springs figure was an improvement from the first quarter, when 23.4 percent or 35,833 local properties were underwater, CoreLogic’s report shows. During the second quarter of 2011, the figures were 22.1 percent or 34,109 properties.

Colorado Springs’ figures mirror state and national trends:
• In Colorado, 18.2 percent of residential property owners were underwater in the second quarter, compared with 20.7 percent in the first quarter and 20.6 percent in the second quarter of 2011.
• Nationally, 22.3 percent of all residential properties with a mortgage were underwater in the second quarter, compared with 23.7 percent or in the first quarter and 22.5 percent in the second quarter of last year.
• Nevada had the highest percentage of mortgaged properties in negative equity — 59 percent, according to CoreLogic.

Soaring home prices during the spring and summer, lower inventory levels and declining numbers of bank-owned home sales all have contributed to the improvement in the numbers and percentages of upside down properties, Mark Fleming, CoreLogic’s chief economist, said in a news release.

It’s obviously time for Sellers to put their homes back on the market. Prices are rising and there is a shortage of “homes for sale”.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss listing your home.

GOOD NEWS FOR HOMEBUYERS - FED MOVES TO KEEP RATES LOW
Daily real estate News | Friday, September 14, 2012

The Federal Reserve announced Thursday that, in an effort to re-ignite economic recovery, it was taking aim at mortgage rates — a move that will likely take rates even lower from their current record lows.

The Federal Reserve announced it will purchase $40 billion of mortgage-backed securities that will help boost the recovery in the housing market. What’s more, the central bank said that it will continue with the purchase program until the economy shows greater improvement, particularly with unemployment.

"These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative," according to the Fed in a public statement.

As mortgage rates sink lower, home shoppers have been taking advantage. The Mortgage Bankers Association announced this week that mortgage applications for home purchases were up 8.1 percent for the week ending Sept. 7. Mortgage applications for purchases also were up 7 percent from year-ago levels, MBA said.

"While low interest rates impose some costs, Americans will ultimately benefit most from the healthy and growing economy that low interest rates promote," Fed Chairman Ben Bernanke said Thursday following the Fed committee’s meeting.

SURVEY: HOMES ARE SELLING FASTER
Daily real estate News | Friday, September 07, 2012

Sales are quickening their pace as the time to sell a home decreases and falls more in line with a “balanced” housing market, according to new research by the National Association of REALTORS®.

The median time a home listed for sale was on the market in July was 69 days, down from 98 days one year earlier. Broken down further, one-third of homes purchased in July were on the market for less than a month, and one in five of homes purchased in July were on the market for at least six months.

“As inventory has tightened homes have been selling more quickly,” says Lawrence Yen, Nar’s chief economist. “A notable shortening of time-on-market began this spring, and this has created a general balance between home buyers and sellers in much of the country. This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.”

By the end July, a 6.4-month supply of homes were on the market at the current sales pace. That is 31.2 percent below year-ago levels, when there was a 9.3-month supply.

With supplies of homes tighter, economists expect home prices to continue their trend upward.

“Our current forecast is for the median existing home price to rise 4.5 to 5 percent this year and about 5 percent in 2013, which is somewhat stronger than historic norms because of the inventory shortfall that is most pronounced in the low price ranges,” Yen says.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss how rising home prices might affect your decision to buy now !!

LATEST LOCAL STATISTICS FROM PPAR

Click here to see the most recent Sales and Listing information for the Pikes Peak area.
These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, or, 800 677-6683 (MOVE).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.

And last, but not least… to all of our Jewish friends and clients, Happy New Year – 5773.

JOKE

A local United Way office realized that the organization had never received a donation from the town's most well-entrenched politician. The person in charge of contributions called him to persuade him to contribute.

"Our research shows that out of a yearly income of at least $500,000, you give not a penny to charity. Wouldn't you like to give back to the community in some way?"

The politician mulled this over for a moment and replied, "First, did your research also show that my mother is dying after a long illness, and has medical bills that are several times her annual income?"

Embarrassed, the United Way rep mumbled, "Um ... no."

The politician interrupts, "or that my brother, a disabled veteran, is blind and confined to a wheelchair?"

The stricken United Way rep began to stammer out an apology, but was interrupted again.

"or that my sister's husband died in a traffic accident," the politician's voice rising in indignation, "leaving her penniless with three children?!"

The humiliated United Way rep, completely beaten, said simply, "I had no idea..."

On a roll, the politician cut him off once again, "So if I don't give any money to them, why should I give any to you?"

September 10, 2012

HURRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

IT’S “THANK YOU” TIME

Over the past 40 years of selling real estate in the Colorado Springs area, we have been fortunate enough to establish a large network of clients and friends. As a matter of fact, most of our sales are sent to us by this loyal group. As a result, we haven’t had to use traditional advertising very heavily. We appreciate the wonderful support that our network has given us. ....We couldn’t have done it without you !!!

However, as we celebrate our 40 years of history in the Colorado Springs area, we felt it was time to formally thank our many friends for their support and to get acquainted with newcomers to our area by taking out ads in both The Colorado Springs Business Journal and the Gazette. We hope you enjoy them.

We invite our readers to CLICK HERE to see our ad which appeared on Friday, Sept. 7 in the CSBJ. Our Gazette ad will appear within the next few weeks. (Please ...no comments about how I look older!!)

Thanks, everybody for your referrals and your support.

Harry

WHAT’S HAPPENING TO OUR LOCAL HOME PRICES ??

The outlook for our local real estate market is terrific. The latest statistics issued by the Pikes Peak Association of Realtors shows that our single-family home sales in August were 898. That’s up 7.9% over August 2011. In fact, our local home sales have increased in 12 of the last 14 months.

Our sales prices have also shown a healthy increase over August, 2011. Our average sales price of $235,711 is 6.5% over August, 2011 and our median sales price of $210,500 is 10.2% over August, 2011. To put this into perspective, keep in mind that the national increase in home prices over August, 2011 is only 3.8%. As usual, the Colorado Springs real estate market is the envy of the nation.

Can this healthy growth continue? It certainly can and will, especially considering that our inventory of homes for sale is decreasing. Our present inventory of 3863 is 13.8% lower than last year.

Not to keep repeating myself, but NOW IS THE TIME TO BUY !!!
If you would like to see a complete overview of our local real estate market, CLICK HERE for the complete monthly PPAR report.

MEDIAN DAYS ON MARKET SHRINKS TO 69
Inman news, Wednesday, September 5, 2012.

The National Association of Realtors announced today that the median days on the market for listed homes had shrunk to 69 days. In announcing this new metric of 69 median days on market. This indicates a dwindling inventory. In fact, NAR statistics show median days on market is down 29.6 percent from a year ago, from 98 days in July 2011 to 69 days in July 2012. This is good news for Sellers, but, for Buyers, it indicated that home prices will continue to rise and bidding wars for homes might be on the horizon.

From 1987 through 2011, time on market was typically 6.9 weeks, NAR said. During that time, NAR's data on existing-home sales showed the supply of inventory averaging seven months, indicating slightly less demand from sellers than in a balanced market.
In periods where for-sale inventory amounted to a six-month supply of homes, median selling time was just over six weeks.

When inventories dipped to an average of 4.3 months during the boom years of 2004 and 2005, median selling time dropped to four weeks. Time on market peaked at 10 weeks in 2009 when there was a 10-month supply of homes for sale.

Factoring out short sales -- which typically take three months or longer to sell -- the median time on market for traditional sellers currently "appears to be in the balanced range of six to seven weeks," said NAR Chief Economist Lawrence Yen.

Housing inventory and time on market correlates with rising and falling prices. If housing construction doesn't pick up to normal within two years, Yun said a shortage of listings could lead to "above average" price appreciation.

The bottom line for our readers: Better buy now !!! Tomorrow will cost you more!!!

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move.

Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 677-MOVE (6683).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision. …

FANNIE, FREDDIE TO HIKE LOAN FEES
Daily real estate News | Tuesday, September 04, 2012

The Federal Housing Finance Agency (FHFA) announced that mortgage giants Fannie Mae and Freddie Mac will increase — by an average of 10 basis points — the fees they charge lenders to guarantee loans.

The fee increases are expected to be passed along to borrowers, possibly with higher interest rates, Bloomberg reports. However, banking trade groups say any increases should be minimal and shouldn’t hurt mortgage lending.

For example, a rise of 10 basis points could potentially cost a borrower with a $200,000 mortgage about $4,000 over the term of a 30-year loan, Bloomberg reports.

“It’s obviously going to have a small impact on pricing, but given that mortgage rates are the lowest they’ve ever been, we think it’s probably the right time to do it,” Joseph Pigg, vice president at the American Bankers Association, told Bloomberg.

The purpose behind the fee increase was to increase the financial stability of the two mortgage giants as well as start decreasing their stake in the mortgage market, says Edward J. DeMarco, FHFA acting director.

Fannie Mae and Freddie Mac own or guarantee about 60 percent of all mortgages in the U.S.

JOKE OF THE WEEK

A tourist wanders into a back-alley antique shop somewhere in Washington DC. Picking through the objects on display he discovers a detailed, life-sized bronze sculpture of a rat. The sculpture is so interesting and unique that he picks it up and asks the shop owner what it costs. "Twelve dollars for the rat, sir," says the shop owner, "and a thousand dollars more for the story behind it." "You can keep the story, old man," he replies, "but I'll take the rat."

The transaction complete, the tourist leaves the store with the bronze rat under his arm. As he crosses the street in front of the store, two live rats emerge from a sewer drain and fall into step behind him. Nervously looking over his shoulder, he begins to walk faster, but every time he passes another sewer drain, more rats come out and follow him. By the time he's walked two blocks, at least a hundred rats are at his heels, and people begin to point and shout. He walks even faster, and soon breaks into a trot as multitudes of rats swarm from sewers, basements, vacant lots, and abandoned cars.

Rats by the thousands are at his heels, and as he sees the waterfront at the bottom of the hill, he panics and starts to run full tilt. No matter how fast he runs, the rats keep up, squealing hideously, now not just thousands but millions, so that by the time he comes rushing up to the water's edge a trail of rats twelve city blocks long is behind him.

Making a mighty leap, he jumps up onto a light post, grasping it with one arm while he hurls the bronze rat into the Potomac Tidal Basin with the other, as far as he can heave it. Pulling his legs up and clinging to the light post, he watches in amazement as the seething tide of rats surges over the breakwater into the Basin, where they drown.

Shaken and mumbling, he makes his way back to the antique shop."So, you've come back for the rest of the story," says the owner. "No," says the tourist, "I was wondering if you have a bronze congressman. "

September 4, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

WHAT’S HAPPENING IN THE SPRINGS ?

Click here to see the latest PPAR Sales and Listing statistics for July (August data will be published this week and will be in next week’s Enewsletter).They show that area home prices are on the rise.  In July, the median price of homes sold climbed to $212,000, a 6.6% increase over the same month last year. Year-over-year prices have now risen for five straight months.

Shrinking Inventory, rising prices, mortgage rates at an all-time low, buyers beginning to have to get into bidding wars for homes …… Isn’t it time for you to jump in and get that new home you have been considering …while “the iron is hot”?

Call at 598-3200, or, 800 677-6683 (MOVE), to discuss your new home.

JULY PENDING HOME SALES RISE NATIONWIDE

DSnews.com, RISMedia, Wall Street Journal, Daily real estate News, Wednesday, August 29, 2012

Pending home sales rose in July to the highest level in over two years and remain well above year-ago levels, according to the National Association of REALTORS® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.4 percent to 101.7 in July from 99.3 in June and is 12.4 percent above July 2011 when it was 90.5.

Lawrence Yun, NAR chief economist, said the index is at the highest level since April 2010, which was shortly before the closing deadline for the home buyer tax credit. “While the month-to-month movement has been uneven, more importantly we now have 15 consecutive months of year-over-year gains in contract activity,” Yun said.

Limited inventory is constraining market activity. “All regions saw monthly increases in home-buying activity except for the West, which is now experiencing an acute inventory shortage,” Yun added.

Existing-home sales are projected to rise 8 to 9 percent in 2012, followed by another 7 to 8 percent gain in 2013. Home prices are expected to increase 10 percent cumulatively over the next two years.

“Falling visible and shadow inventories point toward continuing price gains. Expected gains in housing starts of 25 to 30 percent this year, and nearly 50 percent in 2013, are insufficient to meet the growing housing demand,” Yun said.

Colorado Springs has been ahead of this curve all during 2011 and 2012. We are about 18 months ahead of the rest of the country, according to Fred Crowley, chief economist for the Southern Colorado Economic Forum.

AS PRICES RISE, HOMEBUYERS WORRIED THEY'RE LOSING BARGAINING POWER

Daily real estate News | Thursday, August 30, 2012

While home buyers have been holding a lot of bargaining power in the housing market the last few years, more of them say they are now feeling the market shift against them, according to a new survey.

Seven in 10 home buyers say they’ve faced competition on a home for at least one offer, according to a recent survey of 982 buyers in 19 markets conducted by Redfin. Of those surveyed, 46 percent say now is a good time to purchase a home. On the other hand, 32% now say it’s a good time to sell.

"Many buyers who emerged from hibernation this spring eager to take advantage of low rates and near-bottom prices now seem to have become demoralized by the intense competition for a limited selection of homes for sale," Redfin said in a public statement about the survey results.

The survey also found the number of buyers expecting home prices to rise drastically grew — 61% say prices will rise compared to 32 percent during the first quarter.

Give us a call to discuss our local market and let us help you find the best deals available.

Call at 598-3200, or, 800 677-6683 (MOVE).

HOUSING MAY BE WHAT DRIVES ECONOMIC RECOVERY 

Daily real estate News | Wednesday, August 29, 2012

As the economy struggles to find footing, many analysts are calling housing a bright spot, particularly during the second quarter.

Home sales for existing-homes over $100,000 have increased compared to one year ago basically in every region of the country, according to National Association of REALTORS® data. Meanwhile, inventory levels have dropped nearly 26 percent over the past year. Also, reports show home prices are stabilizing and even increasing in some markets.

“The housing market is clearly superior this year compared with the past four years,” says Lawrence Yun, NAR’s chief economist. “The latest increase in home contract signings marks 13 consecutive months of year-over-year gains.”

Columnist Kevin Mahn for Forbes writes that “an improving housing market is critical for consumer confidence, and the economic recovery overall, as home equity still accounts for over 16 percent of household net worth” (according to Federal Reserve data as of the end of the second quarter of 2010).

SURVEY: HOUSING IS STILL A BIG PART OF THE AMERICAN DREAM

Daily real estate News | Tuesday, August 28, 2012

Americans are getting more optimistic about their financial future, and they believe housing still plays an important part in that, according to a poll of 1,000 to 2,000 people conducted by FTI Strategic Communications.

Sixty-two percent of Americans say they expect the economy to improve within the next year. What’s more, 73 percent of those surveyed say home ownership is part of achieving the American Dream.

According to the survey, Americans believe they increasingly hold their financial fate, with 60 percent saying that they can be comfortable financially by working hard and being savvy with their investing.

What’s more, 44 percent say they believe they’ve had more opportunities than their parents.

AMERICANS: HOME OWNERSHIP STILL A GREAT INVESTMENT

Daily real estate News | Friday, June 03, 2011

Seventy-five percent of Americans say that “owning a home is the best long-term investment they can make” and is worth the risk of ups and downs in the housing market,” according to a new survey of 2,000 bipartisan voters by the National Association of Home Builders.

The survey found Americans to be optimistic about home ownership. Eighty-one percent of those who own their homes outright, 76 percent with mortgages, 67 percent of renters, and 65 percent who have underwater mortgages cited home ownership as the “best long-term investment.”

When survey respondents were asked whether they’d recommend buying a home to a friend or family member just starting out, 80 percent of Americans said “yes.” Even home owners currently underwater — those who owe more on their mortgage than their home is currently worth — overwhelmingly (78 percent) said they would recommend home ownership to family or friends starting out.

More buyers are coming up through the pipeline too. The survey found that 73 percent of those surveyed who do not own a home said their goal is eventually to buy one.

The NAHB survey also found:

▪ 58 percent of Americans oppose eliminating the mortgage-interest deduction and 63 percent oppose lowering it. What’s more, 57 percent of those surveyed say they are less likely to support a candidate for Congress who wanted to eliminate the mortgage-interest deduction.
▪ Respondents were split on about requiring a 20 percent down payment to purchase a home: 49 percent were in favor and 49 percent opposed it. However, mortgage holders and renters aged 18 to 54 were more opposed to it: 58 percent of younger mortgage holders and 59 percent of younger renters opposed adding a 20 percent down payment requirement.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.

JOKE OF THE WEEK

Here are a few of the most famous observations about elections:

If the World Series runs until election day, the networks will run the first one-half inning and project the winner. ~Lindsey Nelson

It's not the voting that counts; it's the counting. ~Tom Stoppard, Jumpers

Politicians and diapers should be changed frequently and all for the same reason. ~José Maria de Eça de Queiroz, translated from Portuguese

How come we choose from just two people to run for president and 50 for Miss America? ~Author Unknown

If we got one-tenth of what was promised to us in these acceptance speeches there wouldn't be any inducement to go to heaven. ~Will Rogers

If God wanted us to vote, he would have given us candidates. ~Jay Leno

The problem with political jokes is they get elected. ~Henry Cate, VII

Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

If con is the opposite of pro, is Congress the opposite of progress? ~Author Unknown

George Washington is the only president who didn't blame the previous administration for his troubles. ~Author Unknown

Every two years the American politics industry fills the airwaves with the most virulent, wall-to-wall character assassination of nearly every politician in the country - and then declares itself puzzled that America has lost trust in its politicians. ~Charles Krauthammer

I offer my opponents a bargain: if they will stop telling lies about us, I will stop telling the truth about them. ~Adlai Stevenson, campaign speech, 1952

During a campaign the air is full of speeches - and vice versa. ~Author Unknown

If voting changed anything, they'd make it illegal. ~Emma Goldman

A man that would expect to train lobsters to fly in a year is called a lunatic and is confined to an institution; but a man that thinks men can be improved by an election is called a reformer and is allowed to remain at large. ~Finley Peter Dunne, Mr. Dooley's Philosophy, 1900

The best argument against democracy is a five-minute conversation with the average voter. ~Winston Churchill

Ohio claims they are due a president as they haven't had one since Taft. Look at the United States, they have not had one since Lincoln. ~Will Rogers

August 27, 2012
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

US AND COLORADO SPRINGS NEW-HOME SALES RISE TO MATCH 2-YEAR HIGH
The Gazette - August 23, 2012 12:02 PM & The Wall Street Journal – August 22, 2012

Sales of new homes in the United States rose 3.6 percent in July to match a two-year high reached in May, the latest sign of a steady recovery in the housing market.

The Commerce Department said Thursday that new-home sales reached a seasonally adjusted annual rate of 372,000. That's the same as in May, which was the highest since April 2010. Local experts agree that the report indicates a durable housing recovery is underway.

In Colorado Springs, home prices and sales rose again in July from a year earlier, more signs of an improving single-family housing market. Year-over-year prices have risen for five straight months, and July’s median price ($223,950), was the highest for any month since July 2008, according to PPAR figures.

Local home sales also rose in July — totaling 973, or a 21.9 percent increase from the same month last year. (Some industry experts speculate July’s increase was inflated somewhat since home sales in late June probably weren’t recorded until the next month because the Waldo Canyon fire forced the temporary closing of the El Paso County Clerk and Recorder’s Office.)

Builders, meanwhile, are growing more confident because they're seeing more traffic from potential buyers. An index of builder confidence rose to its highest level in five years in August.

Local builders responded by applying for the largest number of building permits in nearly four years last month.

Each new home built creates an average of three jobs for a year and generates about $9,000 in tax revenue, according to statistics compiled by the National Association of Home Builders.

The housing market is making a recovery in part because homes are more affordable: Mortgage rates have fallen to near-record lows. Housing prices are about one-third lower than at the peak of the housing bubble in 2006. Those trends have helped lift sales of both new and previously occupied homes.

One factor holding back sales is that there aren't many newly built homes available. New-homes for sale dipped last month to 142,000, the lowest on records dating back to 1963. (A six-month supply is generally considered healthy by economists. At the current sales pace, it would take only 4.6 months to exhaust the July supply.)

In every aspect, Colorado Springs is showing a healthy increase in home-sales and home-prices. Most cities in the US envy our numbers.

Better call us now to discuss buying your new home, before prices and mortgage interest rates both start to rise even further.

Call at 598-3200, or, 800 677-6683 (MOVE).

FANNIE SAYS HOUSING SHOWS SIGNS OF 'DURABLE, LONG-TERM RECOVERY'
Daily real estate News | Wednesday, August 22, 2012

Housing is the one bright spot in our economic recovery, according to Fannie Mae’s August 2012 Economic Outlook.

Home sales are projected to be 9 percent above year ago levels, and home prices are expected to continue to rise, according to Fannie Mae economists. A shrinking inventory of for-sale homes on the market has also led to a gradual pickup in homebuilding in many housing markets across the market.

Still, Fannie economists caution that the pace of the real estate market recovery will likely stay modest, due to factors like tight credit standards and a high number of foreclosures that continue to plague many markets. Fortunately, our Colorado Springs foreclosure picture continues to look brighter than the national outlook.

Doug Duncan, Fannie Mae’s chief economist, said in a public statement, “We continue to see positive trends in the housing sector, which is showing signs of a durable, long-term recovery."

It will never be a better time to buy your new home. Give us a call at 598-3200, or, 800 677-6683 (MOVE).

BUYER DEMAND GROWS FOR NEW HOMES
Daily real estate News | Friday, August 24, 2012

While sales of newly built single-family homes is on the rise, buyers are finding fewer choices as inventory sinks to a new record low, the Commerce Department reported Thursday.

New-home sales rose 3.6 percent in July to 372,000-unit annual rate — matching a two-year high that was set in April. New-home sales are up 25.3 percent over year-ago levels. This is further evidence that consumers are becoming more confident in local housing markets as they look to take advantage of today's very favorable prices and interest rates.

Still, inventories remain low as builders have been leery of starting too many projects. The inventory of new-homes for sale reached a record low of 142,000 units last month.

“Unnecessarily tight credit conditions are keeping builders from being able to replenish supplies as consumer demand improves," says NAHB Chief Economist David Crowe.

MORTGAGE RATES ARE ON THE WAY UP
Daily real estate News | Friday, August 24, 2012

Following several positive reports this week of a housing market gaining momentum this week, fixed-rate mortgages inched higher, Freddie Mac reports in its weekly mortgage market survey. This is the fourth consecutive week that mortgage rates have inched higher after reaching all-time lows just a month ago.

Here’s a closer look at rates for the week ending Aug. 23:

• 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.7 point, rising from last week’s 3.62 percent average. A year ago, 30-year rates averaged 4.22 percent.
• 15-year fixed-rate mortgages: averaged 2.89 percent, with an average 0.7 point, rising slightly from last week’s 2.88 percent average. Last year at this time, 15-year rates averaged 3.44 percent.
• 5-year adjustable-rate mortgages: averaged 2.80 percent, with an average 0.6 point, increasing from last week’s 2.76 percent average. Last year at this time, 5-year ARMs averaged 3.07 percent.
• 1-year ARMs: averaged 2.66 percent, with an average 0.4 point, dropping from last week’s 2.69 percent average. A year ago, 1-year ARMs averaged 2.93 percent.

HOME PRICES POST STRONGEST GROWTH SINCE 2006
INMAN NEWS -Wednesday, August 22, 2012.

NAR states that July inventory is down 24 percent from a year ago. Demand for homes grew faster than the inventory of homes for sale in July, helping push the national median price of existing homes up for the fifth month in a row.

The National Association of Realtors said today that the national median price of existing homes was up 9.4 percent from a year ago in July, to $187,300 -- the strongest annual gain since January 2006. The last time the national median home price posted five consecutive months of annual gains was January to May of 2006.

Sales of existing homes -- resales of single-family homes, townhomes, condominiums and co-ops -- were up 2.3 percent from June to July, to a seasonally adjusted annual rate of 4.47 million. That's a 10.4 percent increase from a year ago.

"Mortgage interest rates have been at record lows this year while rents have been rising at faster rates," said NAR Chief Economist Lawrence Yun. "Combined, these factors are helping to unleash a pent-up demand."

Yun said sales "could easily be much stronger" -- in a more "normal" range of 5 million to 5.5 million per year -- if not for "abnormal frictions" such as tight lending standards and shrinking inventory.

Although the number of existing homes on the market was up 1.3 percent from June to July, to 2.4 million, that represents a 6.4-month supply of homes at July's faster pace of sales, down from 6.5 months of supply in June. And looking back a year, listing inventories were down 23.8 percent, when there was a 9.3-month supply of existing homes for sale.

Analysts generally consider a six-month supply of existing homes to be a healthy balance of supply and demand. More than that indicates that sellers significantly outnumber buyers, which puts downward pressure on prices.

Writing on the blog Calculated Risk, Bill McBride noted that while the annual rate of sales in July was slightly below expectations of 4.5 million, "those focusing on sales of existing homes, looking for a recovery for housing, are looking at the wrong number. For existing-home sales, the key number is inventory -- and the sharp year-over-year decline in inventory is a positive for housing."

THE DATE IS GROWING NEARER FOR THE 16th ANNUAL SCEF FORUM - CALL NOW FOR RESERVATIONS !
The College of Business and Administration and Graduate School of Business of the University of Colorado at Colorado Springs has scheduled the 16th Annual Southern Colorado Economic Forum for September 28, 2012 – 7:00am to 11:30am at the Antlers Hilton Heritage Ballroom, in downtown Colorado Springs.

This year will feature a detailed presentation on “Economics in the Pikes Pike Region and the Outlook for the next 12 Months” by Fred Crowley, Ph.D and Tom Zwirlein Ph.D, from UCCS.

Also featured will be a very timely 1 ½ hour roundtable on “The Changing Health Care Environment: Leveraging Economic Opportunities for the Pikes Peak Region”, including a Q&A session with the panelists. (You can check out the bios of the speakers at the forum’s website .)

Salzman real estate Services is proud to have been a pioneer sponsor of this annual event since its inception and we encourage our readers to attend this important gathering which is viewed by many area business leaders as the premier economic event of the year.

Please contact the Southern Colorado Economic Forum for complete details ..or just give us a call at 598-3200, or, 800 677-MOVE (6683).

LATEST LOCAL STATISTICS FROM PPAR

Click here to see the most recent Sales and Listing information for the Pikes Peak area.
These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, or, 800 677-6683 (MOVE).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.

JOKE

You think we got election problems here.? Here are some observations regarding the recent elections in Iraq.

It's amazing -- we invade a country, overthrow a dictator, and then boom, we have an election. Well, actually, more like, boom, boom, boom.

With the election only two weeks away, US troops are sealing Iraq's borders. (We can't even seal California's borders so how does that work?)

They did not release the names of the candidates until two days before the election, to protect the candidates. (Sounds like that might b a good idea for us.)

One expert noted that “There are four areas of Iraq where it will be very difficult for people to vote: The east, the west, the north, and the south." …And this guy gets paid for his expertise?

Iraqi politicians are telling voters that if they don't vote for them they will go to Hell. Imagine using religion to try and get votes. Thank God our people would not do that.

Ex-pat Iraqis will be voting in U.S. cities like Washington DC and Detroit. Strangely enough, there is more gunfire in those cities then in Fallujah and Baghdad.

After the election …

It was a strange sight to see Iraqi voters proudly waving their blue-stained index fingers as a sign they had voted. Oh well, different countrys ..different customs ..different fingers.

Voter turnout was lowest among Iraq's Sunni minority. Saddam Hussein was Sunni and many in the group resent the loss of power. They feel alienated by the current political climate and are unwilling to accept the election results, and may react with violence. (That’s only because they aren’t as sophisticated as we are…)

The turnout for the election was higher than expected with 60 percent of Iraqis casting a vote. American observers noted that “Once their democracy is as sophisticated as ours that number should drop to 40 percent."

August 20, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THANK YOU. THANK YOU. THANK YOU FOR 40 YEARS IN LOCAL real estate

As I begin celebrating a personal milestone….40 years selling real estate in the Pikes Peak Region….I must begin by thanking all of you for helping me reach this pinnacle.

I could not have accomplished this without so many of you whom I have had the privilege of working with over these many years. Your continued loyalty means more to me than I can express, but offering my sincere gratitude is a start.

You may be seeing ads commemorating this event in the local Colorado Springs Business Journal and The Gazette. And for those of you who are not ‘’locals”, I’ll be reproducing them in a future eNewsletter.

My “Rocky Mountain High” that began 40 years ago is still going strong thanks to your friendship and support.

16th ANNUAL SOUTHERN COLORADO ECONOMIC FORUM SCHEDULED

The College of Business and Administration and Graduate School of Business of the University of Colorado at Colorado Springs has scheduled the 16th Annual Southern Colorado Economic Forum for September 28, 2012 – 7:00a.m. to 11:30am at the Antlers Hilton Heritage Ballroom, in downtown Colorado Springs.

This year, the event will feature a timely roundtable on “The Changing Health Care Environment: Leveraging Economic Opportunities for the Pikes Peak Region. Debbie Chandler from Colorado Springs Partners will moderate a Town Hall format and question the panelists during the 1 ½ hour session. You may want to go to the forum’s website to review the bios of the speakers.

There will also be a detailed presentation on Economics in the Pikes Pike Region and the Outlook for the next 12 months by Fred Crowley, Ph.D and Tom Zwirlein Ph.D, from UCCS.

Salzman real estate Services is proud to have been a pioneer sponsor of this annual event since its inception and we encourage our readers to attend this important gathering which is viewed by many area business leaders as the premier economic event of the year.

Please contact the Southern Colorado Economic Forum for complete details ..or just give us a call at 598-3200, or, 800 677-MOVE (6683).

4 STRONG REASONS TO BUY A HOME NOW
Daily real estate News | Monday, August 13, 2012

“It’s hard to argue against buying a house now, assuming you can get a loan,” writes John Waggoner, a columnist with USA Today. Sure, Waggoner says that getting a credit check for approval of a mortgage can be a “only slightly less intrusive than a CIA background check,” but for those who are able to qualify, a lot of analysts say that now can be a good time to purchase a home.

1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900.

2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family.

3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.

4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.

And don’t forget that the recent NAR report for the Second Quarter of 2012 shows that, although home prices increased nationally by a healthy 7.3%, Colorado Springs prices increased 11.3% during the same period. That puts Colorado Springs in the top 14% of the top 147 major metro areas in the U.S. These numbers show that, as usual, our local area is better off than almost any other part of the country. It’s a great place to buy a home !!!

This news, combined with record-low interest rates, has created a flurry of contacts in our office from prospective buyers and sellers. So, better give us a call now to explore how this hot market can be used to your advantage. We will always have time to chat with our readers about the opportunities that are currently available.
Call us at 598-3200, or, 800 677-MOVE (6683).

END-OF-SUMMER CHECKLIST FOR HOME SELLERS
RISMedia Aug.13, 2012

As we near the end of summer, it’s time to look ahead and plan out home maintenance projects that have to be done before the cold weather strikes. real estate agents can help homebuyers understand which home fixes take priority if their new home isn’t quite new. Likewise, agents can help sellers prioritize their last warm weather fixes to increase a home’s curb appeal.

While the weather is warm and before the peak months of September and October, we encourage clients to walk around the exterior of their home and make a list of problematic areas. Some can be fixed by the current owners and others will require assistance from an expert. To help locate any issues and take care of them before winter arrives, we can help our clients by hiring a reliable, thorough home inspector to check around the exterior of the home. An inspector will be able to get to areas where a buyer may not want to venture, including the roof and under the home.

End-of-summer projects we might suggest to our home sellers include:

1. Outdoor painting. If the owners don’t have the time or the resources to do a full painting job, have them go around the outside of the house and touch up any areas that look rough. If they find peeling paint, the areas can be scraped and sanded, then primed and painted to maintain even texture.
2. Outdoor caulking and sealing. Windows should be checked inside and out for possible leaks or cracks. With cold weather just around the corner, leaks or cracks could mean higher heating bills. Have leaks and cracks sealed with caulk, then look at the trim around each window—if any pieces are pulling out, have the owners check for mold or rotting, then replace or reattach wood.
3. Concrete and asphalt patching. If the home features an asphalt driveway, it can be repaired with asphalt patching material. Asphalt should be sealed every other year. If the driveway or walkways are concrete, cracks or holes can be repaired with epoxy patching material.
4. Patio and deck maintenance. On wood decks, rotted boards should be replaced, painted or stained as needed, and critter nests and debris cleared. On brick patios, owners should replace missing bricks, level off areas where tree roots have pushed up the bricks and re-grout any areas where weeds or weather have degraded the hold between bricks.
5. Landscaping. Keep landscaping clean and attractive. Weeds should be pulled, dropped fruits and nuts removed from under trees to deter animals, and trees and bushes trimmed so they don’t scrape the side of the house. Many landscaping companies offer affordable fall clean-up packages for homeowners who don’t want to do the work themselves.

If the home is still on the market leading into the holidays, owners can spend the colder months doing interior cosmetic upgrades, such as replacing floor coverings, upgrading cabinet hardware and interior painting. With a prioritized list, homeowners will feel more confident in their ability to finish interior updates before the start of the 2013 real estate season.

LATEST LOCAL STATISTICS FROM PPAR

Click here to see the most recent Sales and Listing information for the Pikes Peak area.
These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.

JOKE OF THE WEEK

THE DEALMAKER

Two friends with radically different political views are on their way to the polls on election day. One guy turns to the other and says "You know, we've argued about this for months, and we're obviously going to vote for different candidates. Our votes will cancel each other out anyways, so why don't we just call it a draw and go home instead?"

The other guy agrees, they shake hands and part ways.

Another guy who overheard the conversation approaches the dealmaker and says with admiration, "That's a real sportsmanlike offer you just made!"

"Not really," guy says, "Just this afternoon I've already done this three times."

August 13, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

NATIONAL ASSOCIATION OF REALTOR QUARTERLY REPORT SHOWS COLORADO SPRINGS HOME PRICES RISING FASTER THAN MOST OF THE NATION
NAR - WASHINGTON (August 9, 2012)

The recent NAR report for the Second Quarter of 2012 shows that home sale prices increased nationally by a healthy 7.3%. However, the same report shows that Colorado Springs prices increased 11.3% during the same period. That’s great news for our local homeowners and sellers.

This puts Colorado Springs in the top 14% of the top 147 major metro areas in the U.S. Only 21 of the major metro areas had records better than 10% in the last quarter.

This news, combined with record-low interest rates, has created a flurry of contacts in our office from prospective buyers and sellers. So, better give us a call now to explore how this hot market can be used to your advantage. We will always have time to chat with our readers about the opportunities that are currently available.

The numbers show that, as usual, our local area is better off than almost any other part of the country. Hooray for us!!!

Some of the other interesting data from the NAR report are:

Median existing single-family home prices are rising in more metropolitan areas, but a lack of inventory – notably in lower price ranges – is limiting buyer choices in an increasing number of markets around the country.

In the first quarter of 2012 there were 74 areas showing price gains from a year earlier, as opposed to 2011, when only 41 metros were up.

Lawrence Yun, NAR chief economist, said home prices are set to rise in even more markets during upcoming quarters. “It’s most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners. Inventory has been trending down and home builders are still under-producing in relation to growing demand,” he said. “Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight.”

The national median existing single-family home price was $181,500 in the second quarter, up 7.3 percent from $169,100 in the second quarter of 2011. This is the strongest year-over-year increase since the first quarter of 2006 when the median price rose 9.4 percent (but even with the gain, the current price is 20.1 percent below the record set in 2006).

Total existing-home sales, including single-family and condo, were 8.6 percent above the 4.18 million pace during the second quarter of 2011.

At the end of the second quarter there were 2.39 million existing homes available for sale, which is 24.4 percent below the close of the second quarter of 2011 when there were 3.16 million homes on the market. There has been a steady downtrend since inventories set a record of 4.04 million in the summer of 2007.

NAR President Moe Veissi, said buying power is historically high. “Home buyers today can stay well within their means. Record low mortgage interest rates and an over-correction in home prices have opened the door to many potential buyers,” he said.

A breakout of incomes needed to purchase a median-priced existing single-family home by metro area shows the typical buyer has ample income. The national median family income was $61,000 in the second quarter. However, to purchase a home at the national median price, a buyer making a 5 percent down-payment would only need an income of $39,900. With a 10 percent down-payment the required income would be $37,800, while with 20 percent down the necessary income would only be $33,600.

“Because the income required to buy to a typical home is very manageable by historical standards, any further decline in mortgage interest rates will have little effect. Changes in underwriting guidelines would have a far greater impact,” Yun said.

Click here to see this very positive NAR Quarterly Report.

THE WALL STREET JOURNAL REPORTS HOME PRICES CLIMBING …. AS SUPPLIES DWINDLE
The Wall Street Journal – August 8, 2012

Home prices rose by their largest percentage in at least seven years during the second quarter, propelled by low inventories of properties for sale and high demand for bargain-priced foreclosures, according to two reports Tuesday.
Prices rose by 2.5% in June from a year ago, and by 6% from the previous quarter, said CoreLogic Inc., a Santa Ana, Calif., data firm. The quarterly jump was the largest since 2005.

Separately, Freddie Mac, which uses a different methodology, said home prices during the second quarter jumped by 4.8% from the previous quarter. That was the largest jump since 2004.

The main force behind the home-price gains appears to be a shortage of homes for sale. The number of properties on the market is sharply down from a year ago.. Meanwhile, demand is up, as mortgage rates have dropped to their lowest levels in at least 60 years. With every passing month, distressed homes are being absorbed at better and better prices.

Inventories are low for a number of reasons.
• Investors have been scooping up homes and converting them into rentals
• Banks have slowed their foreclosure processes
• New home construction has been at depressed levels for years
• Many traditional sellers are sitting on the sidelines because they are unwilling or unable to sell.

Meanwhile, as inventories have shrunk, demand has picked up. Many areas have gone to multiple offers. Price increases appear to be broad-based, with 71 of the nation’s top metropolitan areas showing rising prices on a year-over-year basis in May, compared with just 19 markets in December. This was the largest number of rising metro areas since November 2006, when area home prices began to decline.

8 SIGNS HOUSING IS ON THE MEND
Daily real estate News | Monday, August 06, 2012

Some Americans are still jittery over the housing market, but here are eight positive signs that should quell some of their fears.
1. Housing prices are on the rise across the country.
2. Foreclosures have slowed, so Buyers are being forced into higher-price properties.
3 Inventories of for-sale homes on the market are decreasing…down 24 percent from a year ago.
4. Mortgage rates are at ultra-record level lows, for those who can qualify.
5. Existing-home sales were up 4.5 percent higher in June compared to one year ago.
6. Home building stocks are on the rise and housing starts rose 6.9 percent in June.
7. For investors, rents are soaring. Rental prices are at a 10-year high.
8. Home affordability is at record highs, due to falling home values and super low mortgage rates.

In fact, a recent study found that it is cheaper to buy a home than rent in basically every major city in the U.S. For those who buy, you can save the cost of renting by owning the home for five years or less.

The Wall Street Journal concludes in a recent article that if you take into account all the positive signs lately in the housing market, “Housing presents an attractive long-term investment that should hold steady or even have upside surprise in the short term.”

BY THE WAY …DID YOU KNOW THIS??

In a report that was released by Bankrate.com on Aug 6, Colorado has the 3rd lowest “mortgage closing costs” in the USA.

On average it costs $ 3,199 to close on a mortgage in Colorado compared with the national average of $ 3,754.

Just one more reason to buy your Colorado Springs home, now !!!

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision. …

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200, or, 800 677-MOVE (6683).

SALES AND LISTING STATISTICS

Click here to see the most recent Sales and Listing information for the Pikes Peak area. These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).
 

JOKE OF THE WEEK

MY TRIP TO THE STORE

There was a bit of confusion at the store this morning. When I was ready to pay for my groceries, the cashier said, "Strip down facing me."

Making a mental note to complain to my congressman about Homeland Security running amok, I did just as she had instructed.

When the hysterical shrieking and alarms finally subsided, I found out that she was referring to my credit card.

I have been asked to shop elsewhere in the future.

They need to make their instructions to us seniors a little clearer!

August 6, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

OK, LET’S LOOK AT ANOTHER WAY OF THINKING OUTSIDE THE BOX …BY USING real estate TO SET UP YOUR FUTURE !!

Many home-owners feel trapped in today’s real estate market. They are treading water until prices go back up. However, if you are willing to think outside the box, there are several techniques you can use to make today’s market work to your advantage. Here’s one of them:

Let’s say you are a typical homeowner who bought your $250,000 home with a 30 year mortgage. You have an interest rate of 5.0% and have not recently re-financed your home, therefore, your existing monthly principal and interest payment is $1342.05.

So, do you have any options? ..Here’s one.

At our current mortgage rates, your Principal and Interest payment for a refinanced mortgage would be:

Mortgage term rate P&I monthly payment
30 year mortgage 3.5% $1,122.61
15 year mortgage 3.0% $1,726.45
10 year mortgage 2.75% $2,385.28

Sure, that 10 year mortgage payment of $2,385.28 is almost double your present payment of $1,342, but, after ten years, your home will be completely paid for, just in time to start paying for your children’s college costs, or, for your retirement in Hawaii.

Furthermore, there are a couple of other positive factors that might bolster your switch to a 10 year mortgage. First, although your refinanced P &I payment would be higher, your tax write-off would also be much higher, thus bringing your actual net home interest expense down to around just 2%. Second, home prices are now really rising. The home you buy today will be worth much more in ten years. ….This is the kind of investment you cannot come close to matching with today’s mutual funds.

If the thought of a ten year mortgage is just too steep for you, maybe a 15 year refinance might work for you.

Just a thought !!! Call us at 598-3200, or, 800 677-MOVE (6683) to discuss this idea !!!

HERE’S A BLAST FROM THE PAST
The other day, I found a copy of the paperwork from the first real estate sale I ever made, when I started out in Colorado Springs, 40 years ago. It was fun to compare the present real estate market with what it was back then.

The model home I sold is at the corner of Dublin and Turret. The original sale price in 1972 was $25,560. That same home, based upon current comparables, would sell for approximately $180,000, today.
The buyers didn’t have a checking account, so they paid the earnest money with $25 in cash, with the balance ($75) paid when they made their mortgage loan application.

The mortgage on the home was a 30 year fixed VA loan at 7%.
Several of my old friends always kid me about the fact that I have such a positive view of our local market, but I think the facts about this sale prove that my optimism is well grounded. If you look at the present market value of this sale, you see that, over the past 40 years, annual appreciation on this house has been 5.7% per year (from $25,560 to about $180,000)…and, in fact, the average appreciation of all homes in Colorado Springs has been between 5-6%.

That’s better than almost any mutual fund.

Call us at 598-3200, or, 800 677-MOVE (6683) to discuss this idea !!!

CURRENT MONTHLY STATISTICS SHOW GOOD GROWTH IN LOCAL real estate AS OF JULY 31, 2012

Highlights from this month’s PPAR sales and listing statistics:
• Number of Sales - Up 15% since last month and Up 21.% since July 2011
• Avg sales price $236,062 is up 5% since July 2011
• Median sales price $198,950 up 6.6% since July 2011
• So far in 2012, number of sales is up 6.9%
• Foreclosures - As of June 30, 2012, foreclosures are down 24.1% from June 30, 2011

These monthly reports show listings and sales in every neighborhood in our area and contains such information as average and median prices within those neighborhoods.

These reports are used by your real estate agent and by Buyers and Sellers alike as they determine the best deals available for their clients. Call us at 598-3200 to discuss the details of this valuable report.

Click here to see the complete report from the Pikes Peak Association of Realtors on your local real estate market.

HOME PRICES CONTINUE TO RISE
RISMedia –Aug1, 2012

Data through May 2012, released by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed that average home prices increased by 2.2 percent in May over April.

“With May’s data, we saw a continuing trend of rising home prices for the spring,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns.

“June data for existing home sales, new home sales, housing starts and mortgage default rates were better than their year-ago levels. The housing market seems to be stabilizing.

As of May 2012, average home prices across the United States are back to the levels where they were in spring 2003 for the 20-City Composite and to summer 2003 levels for the 10-City Composite.

IS THE REAL-ESTATE REBOUND FOR REAL?
HOTWIRE.com – August, 2012

For investors, "home" is no longer a four-letter word.

Standard & Poor's on Tuesday reported that home prices rose 0.9% in May from the prior month, and have risen 2.6% since bottoming in January.

Some of the world's smartest investors, including Warren Buffett, are taking notice, placing big bets on a continued recovery in the housing market.

What does Warren Buffett see that no one else does? He just made an outsize bid on ResCap loans, the latest example of his bet that the housing market represents a great investment opportunity.

Home valuations are almost as low as they were in the first quarter of 1998, well before the most recent real estate run-up began. That has caught the attention of many investors, including Mr. Buffett, who in February said he would buy "a couple hundred thousand" homes if it were practical.

Not only are single-family home prices steadily climbing, but the Joint Center for Housing Studies at Harvard University in a June report said inventories of new, single-family homes in March were at the lowest level in 49 years. The upshot: It would take less than six months to sell the current inventory, the traditional boundary between a strong and weak market, says Eric Belsky, managing director of the center.

Most economists say the odds are good that real estate will be stronger over the next few years than it has been in the past.

Smaller investors could benefit from the trend as well, experts say, by directly buying properties.

Banks are willing to lend for investment properties as long as the investor can make at least a 30% down payment on the home, says Bankrate.com senior financial analyst Greg McBride.

"There's great opportunity in actually buying residential homes directly for investors who have the capital," Mr. Luschini says. "Prices are clearly turning the corner, and housing affordability is the highest in a generation."

PEOPLE STILL WANT TO BUY HOMES: FANNIE MAE

An overwhelming 85% of Americans prefer homeownership over renting, Fannie Mae said in a new study.

Demographics such as income, age, marital status and employment status are still considered significant drivers in the decision of buying a home or renting, Fannie found that beliefs about housing help determine whether Americans intend to rent or buy their next residence.

Fannie produced the national housing survey based on feedback from 12,014 interviews that occurred in 2011.

When looking at feedback from Americans who already have a mortgage, 40% cited attitudes about finances—such as the ease of getting a mortgage, affordability, homeownership benefits and financial stressors—as drivers that will shape whether they buy or rent their next property. About 39% of homeowners in the same group cite attitudes about housing as influencing their next move, while 21% say demographics such as income, age, marital status, employment, race, etc., will be primary drivers of their next decision.

Thirty-three percent of current renters say demographics like employment, age, income and marital status also are important homeownership drivers, while only 25% cite financial attitudes as having an impact on their next housing.

What's keeping homeownership alive is the fact that it's not a stock or bond, but something desirable for individuals and families to live in even without a significant return on investment. "The nonfinancial benefits that people derive from the consumption of housing mitigate the negative financial experiences that many homeowners have had," said Deggendorf.

The good news is homeownership as a goal for Americans hasn't changed in the past six years.

"Our study shows that the negative housing events of the past few years have not discouraged people from wanting to own a home," the Fannie study concluded. "Exposure to mortgage default, perceived home value appreciation/depreciation, and self-reported underwater status are not significant factors in the models in predicting individuals’ intentions to own a home for their next move."

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200, or, 800 677-MOVE (6683).

JOKE OF THE WEEK

"Daddy," a little girl asked her father, "do all fairy tales begin with 'Once upon a time'? "

"No, sweetheart," he answered. "Some begin with 'If I am elected.'"

It was election time and a politician decided to go out to the local reservation and try to get the Native American vote. They were all assembled in the Council Hall to hear the speech. The politician had worked up to his finale, and the crowd was getting more and more excited. "I promise better education opportunities for Native Americans!"

The crowd went wild, shouting "Hoya! Hoya!" The politician was encouraged by their enthusiasm. "I promise gambling reforms to allow a Casino on the Reservation!"

"Hoya! Hoya!" cried the crowd, stomping their feet.

"I promise more social reforms and job opportunities for Native Americans!" The crowd reached a frenzied pitch shouting "Hoya! Hoya! Hoya!"

After the speech, the Politician was touring the Reservation, and saw a tremendous herd of cattle. Since he was raised on a ranch, and knew a bit about cattle, he asked the Chief if he could get closer to take a look at the cattle.

"Sure," the Chief said, "but be careful not to step in the hoya."

Saturday, June 21,2012 started out like any other day here in Colorado Springs--crisp and clear with gorgeous mountain views.

But 6.21.12 would soon become the day that my adopted hometown was forever changed.

As I witnessed the first plumes of smoke above the mountain ridge, little did I know that I would be witnessing the start of a fire that would soon become the worst in Colorado history.

Last Tuesday, as the changing winds forced 32,000 people, myself included, to evacuate their homes, I knew that many lives would never be the same.

Three hundred and forty-seven homes were destroyed and many more were damaged in the last week.  I was one of the lucky ones who returned to a basically unscathed home; however, my thoughts keep returning to those not so fortunate.

As a 39 year veteran of the Colorado Springs real estate and Community Services arena, I was either personally or professionally involved with many of the fire victims.  I sold the homes that were destroyed to a number of them.  To me, the fire not only destroyed the homes, it completely affected the lives of families I have come to view as friends.

The devastation many of them are experiencing has affected my life too as I contemplate the consequences these families are now facing.  My heart goes out to them all.

My thoughts are also focused on the leadership and amazing response of the City of Colorado Springs to the tragic events of the past week.

This is a city that has never had to deal with such devastation, yet each and every one from the Mayor's office and Fire Department to the local broadcast and print news and the U.S. Park Service all played a vital role in keeping the public safe and informed throughout this ordeal.

I am personally and professionally involved with many of these individuals also, and I want to publicly express my gratitude to them all.  They are living examples of the meaning of teamwork and I've never been prouder and more grateful to them than I am at this moment in time.

So, while I am not sending you my usual musings and advice, I thought it more appropriate that we all take a minute this week to be grateful for all we have in our lives and to reach out to those who may not be so fortunate.

June 25, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

OUR HEARTFELT THOUGHTS AND PRAYERS GO OUT TO OUR LOCAL FIRE VICTIMS

As we write this issue of the Update, the TV stations are all covering the terrible fires which are devastating our local area. We have heard from friends, neighbors, clients and businesses about the problems that these fires have caused …but, fortunately, so far, no homes have been lost.

Our hearts go out to those who have had to abandon their homes during this emergency and our hearts have also been filled with admiration for the firefighters who are working so hard and for such long hours to protect our homes.

Let’s hope that this fire season is almost over and that we can all return to normal.

Thanks, again, firefighters !!! You are really heroes !!!

LOCAL HOME SALES JUMP 13.5% IN MAY
The Gazette, Friday, June 22, 2012

Colorado Springs-area home prices jumped to a nearly four-year high in May, while sales rose to their highest level in almost three years.

The median price of homes sold in May rose to $210,000, a 13.5% increase over the same month last year, according to figures released early this month by the Pikes Peak Association of Realtors (See Statistics, below).

Home sales totaled 925 in May, a 15.8% year-over-year increase. The number of homes sold in May was the most for any month since 946 in July, 2009.

HOMEBUILDING RISES THIRD MONTH IN A ROW
The Gazette, Wednesday, June 20, 2012

U.S. builders started work on more single-family homes in May and requested the most permits to build homes and apartments in 3 ½ years, according the Commerce Department figures.

Locally, single-family homebuilding permits totaled 249 in May – nearly double the permit total during the same month last year and the highest monthly figure since 257 in April, 2007.

Through May, single-family building permits totaled 808 in the Springs and El Paso County for the year, a 47.7% increase over the same five-month period in 2011.

It’s time to Buy. Call us at 598-3200, or, 1-800-677-MOVE.

HOUSING STARTS JUMP 28.5 PERCENT IN MAY
By Inman News, Tuesday, June 19, 2012.

Privately owned housing starts saw a substantial year-over-year jump in May, following an even greater upwardly revised increase in April, according to a report by the U.S. Census Bureau and the Department of Housing and Urban Development.

Housing starts rose an estimated 28.5 percent on an annual basis in May, to a seasonally adjusted annual rate of 708,000. That's 4.8 percent below April's upwardly revised estimate of 744,000 when housing starts rose 34.8 percent compared to April 2011. The previous estimate was 717,000.

Housing starts have been rising on an annual basis since September 2011 and are now 48.1 percent above their trough in April 2009 -- 478,000 -- in census records dating back to January 1959.

Also in May, homebuilders broke ground on the highest number of new single-family homes so far this year: an estimated 516,000. That's a 26.2 percent increase in single-family housing starts compared to May 2011 and a 3.2 percent rise compared to April -- the third straight monthly increase.

Meanwhile, multifamily housing starts for buildings with five or more units rose 31.6 percent on an annual basis in May, to 179,000.

The West, including Colorado Springs, saw the biggest jump in single-family starts in May (37 percent), followed by the South (25.2 percent), the Midwest (20.8 percent), and the Northeast (18.4 percent).

The number of building permits issued in May rose 25 percent on an annual basis and 7.9 percent on a monthly basis in May, to an estimated seasonally adjusted annual rate of 780,000. Permits for single-family homes rose 4 percent from April and 19.9 percent from May 2011, to an estimated 494,000.

All of these figures indicate a strong improvement in the national housing picture and Colorado Springs is one of the leading cities in these improving numbers.

Better Buy now to take advantage of the low prices and low rates.

Call us at 598-3200, or, 1-800-677-MOVE.

WHAT TO DO THIS YEAR: RENT OR BUY A HOME?
RISMedia June 22, 2012

Today is a tempting time to Buy a home with interest rates and prices at their lowest levels in years. Deciding whether to buy or rent can be complicated, and potential homebuyers have a lot to consider this summer. As part of National Homeownership Month, the American Bankers Association came up with these key questions to help shoppers make wise financial choices when considering buying a home.

1. How much can you afford to put down? Can you afford the monthly payment? A mortgage down payment of 5 to 20 percent of the selling price is typical, but can vary depending on the situation. The size of the down payment will impact the monthly cost. Assess your financial health, determine how large of a down payment you can afford and consider if you can then afford the monthly cost.

2. What other debt do you have? Consider all of your current and expected financial obligations and ensure you are able to make all the payments. Aim to keep total rent or mortgage payments plus other credit obligations fewer than 35 to 40 percent of your monthly income. If you can’t keep payments below that, you may be better off renting for a while or searching for a more affordable home.

3. What is my credit score? Can I qualify for a good interest rate? A high credit score indicates strong creditworthiness, which qualifies you for better interest rates on a mortgage. Maxing out your credit lines and paying bills late will lower your credit score, and the impact of a credit score on interest rates can be significant. For instance, a borrower with a score of 760 could pay nearly 2 percentage points less in interest than someone with a score of 620. That equates to over $3,000 less in mortgage payments each year. If your credit score is low, you may want to delay buying a home and take steps to raise your score.

4. How much will taxes, monthly maintenance or other fees cost? Owning a home means you will have to pay real estate taxes and other costs like insurance and maintenance. However, owning a home can bring tax savings at the end of the year. Remember to factor in these costs and incentives. Renters have neither these costs, nor tax advantages.

5. How many years will I stay here? Generally, the longer you plan to live someplace, the more it makes sense to buy. Over time, you can build equity in your house where renters do not. Yet, renters have greater flexibility to move as they don’t have to worry about finding new tenants.

AS HOME PRICES RISE, INVENTORIES START TO SHRINK – IS IT TIME TO BUY?
USA Today, June 20, 2012

USA Today points out that there are several factors in play that will affect today’s homebuyer.

• First, prices are rising.
• Second, inventories are shrinking
• Third, cash-buyers and buyers with larger down payments are going after the bargains.
• Fourth, FHA Buyers tend to get shoved to the bottom of the pile because of appraisal issues, and because FHA borrowers tend to have more limited finances.

USA Today mentions Colorado Springs specifically as one of the top 7 US markets where there has been a drop of more than 50% in the number of homes for sale. This drop can be attributed to the facts that there are now fewer foreclosures coming to the market …. and many homeowners don’t want to sell right now because they don’t have enough equity in their homes, or because they are waiting for higher prices.

Another factor that is influencing the local real estate market is that it now costs more to rent than to own a home in 98 of the top 100 US metropolitan markets, according to real estate websiteTrulia, which tracks rents and home prices.

While all of these factors make our market very attractive to investors, …they really complicate the picture for the typical homebuyer.

In order to properly evaluate your homebuying decision in today’s market, you really need the input and advice of an experienced, helpful Realtor. Let us help you consider where you stand in our present market. ….Should you rent or buy? …How can you find the best deal? ….What does the future look like for the neighborhood you are considering?

Call us at 598-3200, or, 1-800-677-MOVE, to discuss these issues and to get some helpful advice about our local market.

SALES AND LISTING STATISTICS

Click here to see the most recent Sales and Listing information for the Pikes Peak area. These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision. …

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 677-MOVE (6683).

JOKE OF THE WEEK

This has been around before, still good.

An old prospector shuffled into the town of El Indio, Texas, leading a tired old mule. The old man headed straight for the only saloon in town, to clear his parched throat.

He walked up to the saloon and tied his old mule to the hitch rail. As he stood there, brushing some of the dust from his face and clothes, a young gunslinger stepped out of the saloon with a gun in one hand and a bottle of whiskey in the other.

The young gunslinger looked at the old man and laughed, saying, "Hey old man, can you dance?"

The old man looked up at the gunslinger and said, "No son, I don't dance... never really wanted to"

A crowd had gathered as the gunslinger grinned and said, "Well, you old fool, you're gonna dance now!" ...and started shooting at the old man's feet.

The old prospector, not wanting to get a toe blown off, started hopping around like a flea on a hot skillet.

Everybody standing around was laughing..

When his last bullet had been fired, the young gunslinger, still laughing, holstered his gun and turned around to go back into the saloon.

The old man turned to his pack mule, pulled out a double-barreled 12 gauge shotgun and cocked both hammers. The loud clicks carried clearly through the desert air.

The crowd stopped laughing immediately.

The young gunslinger heard the sounds too, and he turned around very slowly.

The silence was deafening. The crowd watched as the young gunman stared at the old timer and the large gaping holes of those twin 12 gauge barrels.

The barrels of the shotgun never wavered in the old man's hands, as he quietly said;

"Son, have you ever kissed a mule's ass?"

The gunslinger swallowed hard and said, "No sir... but.... I've always wanted to."

There are a few lessons for all of us here:

*Don't be arrogant.
*Don't waste ammunition.
*Whiskey makes you think you're smarter than you are.
*Always make sure you know who is in control...
*And finally,……… Don't screw around with old folks; they didn't get old by being stupid....

June 18, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

OK, HARRY, IS THE real estate MARKET REALLY AS POSITIVE AS YOUR ENEWSLETTER MAKES IT SEEM ??

Absolutely !!!! It’s hard not to get excited about the prospects for our local real estate market, when you read the stories coming out of the national press and our local media. Here are some recent examples:

• MORTGAGE APPLICATIONS SOAR TO HIGHEST LEVELS SINCE SPRING 2009 (Housingwire 6/13/2012)
• AMERICANS SEE BIGGEST HOME EQUITY JUMP IN 60 YEARS (Bloomberg 6/15/2012)
• FORECLOSURES DOWN FOR 20TH STRAIGHT MONTH (Housingwire 6/14/2012)
• INVENTORY OF FOR-SALE HOMES FALLS 20% FROM A YEAR AGO (Realtormag 6/13/2012)
• 30 YEAR MORTGAGE RATE DROPS TO A RECORD LOW (The Gazette 6/8/2012)
• LATE-SUMMER EMPLOYMENT OUTLOOK SUNNY IN SPRINGS (The Gazette 6/12/2012)

Furthermore, our local statistics show that our local market is doing even better than the national market. Comparing our recent May figures with one year ago, we see that our average sales prices are up 9.3%. our median sales prices are up 13.5% and the number of sales is up 15.8%. These numbers show a market that looks good in anybody’s book.

The only negative number for prospective buyers is that our inventory of available homes for sale has shrunk 24.2%.

Finally, we just received a copy of a study commissioned by PPAR which shows remarkable upward trends in our local market. The study by Fred Crowley, chief economist for the Southern Colorado Economic Forum, shows that:

• Local business conditions in general are improving
• Foreclosures are dropping
• New home building is rising
• Single-family home sales are rising
• Demand for homes is up
• Total listings under contract are up 21% in May
• Average days-on-the-market is down

PLEASE CLICK HERE for a copy of this report, and please note pages 9-15, which contain the data for our local real estate market.

The bottom line is that your dream home is now within your grasp …However, it may not be tomorrow, as prices and rates rise and as buyer competition for homes kicks in.

Call us to discuss your new home at 598-3200, or, 800 677-6683 (MOVE).

MARKETING PHILOSOPHY?? ….WHAT IS IT???

The other day, we had dinner with several friends to celebrate my upcoming 40th year of being in the real estate business in Colorado Springs. They asked me to explain how I have managed to build such a good reputation and a loyal following in such a competitive industry….in other words, what is my marketing philosophy.

It was a good question and I thought our readers might be interested my reply.

First of all, I don’t consider a sale to be successful just because it closes. I think my obligation to my clients requires that every transaction should add to their economic advancement. That means negotiating a fair price, a full discussion of all the factors that might affect the transaction (neighborhood history, economic trends in the area, etc.) an impartial look at the current inventory, a mortgage that will be sustainable and a reasonable expectation of an increase in the value of the home. Fortunately, because I have been gifted with a good understanding of real estate finance, I have been able to offer this kind of total real estate expertise to my clients.

Sometimes, this type of realistic approach ends up turning-off a sale, but that may be the best course of action for my client at that particular time. Most clients appreciate the opportunity to make an informed decision … and I don’t look at a closing as the end of my relationship with my client. I consider a closing as the beginning of a respectful friendship.

Does this marketing philosophy pay off? Well, I think that a 40 year track record and a sales history that is 50% higher than the typical Realtor would indicate that it does….and, for the record, I am not aware of any of my clients who have suffered foreclosure. What other Realtor do you know who can say that??

Give me a call at 598-3200, or, 800 677-6683 (MOVE), to talk about the local market.

INVENTORY OF FOR-SALE HOMES FALLS 20% FROM YEAR AGO
Daily real estate News | Wednesday, June 13, 2012

The number of homes on the market continues to become a shrinking pool. Inventory of for-sale single-family homes, condos, townhomes, and co-ops dropped 20 percent in May compared to year-ago levels, according to data from 146 local markets.

In April, the number of ‘for-sale’ homes was 2.5 million, which marked the lowest number for an April since 2006.

Inventories of “For Sale” homes in May declined even further in all but two of the 146 markets tracked by Realtor.com.

Our Colorado Springs inventories have shown an even sharper decline.

While inventories were on the decline, the median national list price was on the rise, inching up 3.17 percent in May compared to May 2011.

The Los Angeles Times discussed this topic (June 10, 2012) in an article titled, “Shortage of homes for sale creates fierce competition”. Some of the points in the article were:

• The newest problem for the slowly improving housing market isn't a shortage of serious buyers, it's a shortage of good homes.
• Would-be buyers are packing open houses and scrambling to make offers on properties before they are even listed. Bidding wars are erupting. And real estate agents are vying fiercely to represent the few sellers that do exist.
• Housing inventory has sunk to levels not seen since the bubble years. The number of American homes with a "for sale" sign hit 2.5 million in April, the lowest number for an April since 2006, according to the National Assn. of Realtors.
• The much-predicted foreclosure wave that was expected to dump more homes onto the market has not materialized. Fewer borrowers are entering default, and banks are better managing the properties they do have on their books.
• In addition, professional investors bankrolled by private equity firms and hedge funds are pouncing on bank-owned homes, often turning them into rentals…. So, you should think about making your move right now, before prices rise and inventories shrink even more.

This lack of available homes is maddening for those consumers who thought 2012 would be the year to buy, but now find themselves bidding against other prospective buyers. …So, Call us now to discuss your new home at 598-3200, 0r, 800 677-6683 (MOVE).

SALES AND LISTING STATISTICS

Click here to see the most recent Sales and Listing information for the Pikes Peak area. These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).

8 SCENARIOS THAT HURT MORTGAGE QUALIFICATION
By Jack Guttentag, nationally recognized real estate expert (Inmannews June 11, 2012)

• DO I JEOPARDIZE MY MORTGAGE APPLICATION BY CHANGING JOBS BEFORE THE LOAN CLOSES?

Yes. The underwriter approved your application based on your documented income covering two years or longer, from one source. At closing you must certify that all the information in your application continues to be true, which short of committing perjury you won't be able to do if you switch jobs. Your revised job history will be numbered in days rather than years, which could cause a rejection.

Back in the pre-crisis days, underwriters had discretion to use their judgment in such cases. If the borrower was moving up to a better position in the same field, for example, they would let it go. In today's market, however, underwriter discretion has been markedly reduced, and the likelihood of rejection is uncomfortably high. The prudent thing to do is to defer the job change until after the loan closes. Nobody will care what you do then.

• WILL THE RENTAL INCOME I RECEIVE FROM RENTING OUT MY HOUSE DURING PART OF THE YEAR HELP ME QUALIFY FOR THE MORTGAGE I NEED TO BUY THAT HOUSE?

No, anticipated rental income cannot be counted as qualifying income unless it is documented in the owner's tax return for at least two years. Further, only income net of expenses would be counted, and that number would be very small or zero if you expense everything you can in order to avoid taxes.

• CAN I QUALIFY USING MY INCOME AND MY SPOUSE'S CREDIT?

No. Good credit without the means to pay is of little value to lenders, and good income without the willingness to pay is not much better. Lenders require both capacity to pay and willingness to pay in the same person.

Before the financial crisis, married couples who had one spouse with the required income and the other with good credit often took "stated income" loans. Stated income was not verified by the lender. These loans were taken in the name of the spouse with good credit, who stated that the income of the other spouse was theirs. But stated-income loans no longer exist.

• HAVE PRE-APPROVALS BECOME MORE USEFUL TO HOMEBUYERS SINCE QUALIFICATION REQUIREMENTS BECAME MORE RESTRICTIVE?

Yes and no. The main purpose of preapprovals is to establish the bona fides of potential homebuyers to home sellers and their agents, who don't want to waste time dealing with wannabe buyers who can't qualify for a mortgage. With an increasing number of potential homebuyers unable to qualify, the value of reliable preapprovals has increased.

However, the same factors that make it more difficult to qualify for a mortgage today also make preapprovals less reliable. This is especially the case with self-employed buyers, who may be rejected despite having been preapproved. Preapprovals are always subject to conditions, the most important of which is a minimum appraised value. If an appraisal comes in below the minimum, the preapproval dies.

• AS A "NONPERMANENT RESIDENT ALIEN," CAN I QUALIFY FOR A MORTGAGE?

Yes, but the terms are a little stiffer because of the risk that you might be obliged to leave the country. Lenders will require a larger down payment and/or a higher interest rate. In contrast, a "permanent resident alien" suffers no penalty.

• CAN AN EXCESS IN APPRAISED VALUE OVER THE PURCHASE PRICE BE USED TO MEET A MINIMUM DOWN PAYMENT REQUIREMENT?

No, the down payment requirement is based on the lower of purchase price and appraised value. Any excess appraised value is ignored.

• WILL SIZABLE STUDENT DEBT PREVENT MY QUALIFYING FOR A MORTGAGE?

It may if you must begin repaying the debt within the first year of the mortgage, and if the amount is large relative to income. If the payments are deferred more than a year, it is a judgment call by the underwriter who will consider the size of the student debt, your credit and perhaps other factors.

• AS A DIVORCED SPOUSE WHO REMAINS LIABLE ON AN EXISTING MORTGAGE, CAN I QUALIFY FOR A NEW MORTGAGE?

Yes, if your income is large enough to afford the payment on two mortgages. If you can afford a new mortgage but not two mortgages, you must induce your ex-spouse to refinance the mortgage in her own name. Such a provision should have been part of a separation agreement.

The only other possibility is to convince the new lender that the ex-spouse remaining in the house is sufficiently creditworthy that there is negligible risk of your having to meet two payments. That will require documentation that your ex has been making the payments on her own for at least a year.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision. …

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 677-MOVE (6683).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision. …

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 677-MOVE (6683).

JOKE OF THE WEEK

A new guy in town walks into a bar and notices a large jar filled to the brim with $10 bills. The man approaches the bartender and asks, "What's up with the jar?"

"Well, you pay $10, and if you pass three tests, then you get all the money."

"What are the three tests?" asks the man

"Gotta pay first."

So the guy gives him the $10 bucks, and the bartender adds it to the jar.

"OK, here's what you have to do. First, you have to drink that whole bottle of pepper tequila -- the WHOLE thing at once -- and you can't make a face while doing it. Second, there's a pit bull chained up out back with a sore tooth. You have to remove the tooth with your bare hands. Third, that really ugly 90-year-old woman at the bar has never been kissed. You gotta give her a big kiss."

"Well, I've paid my $10 bucks," says the man, "so I’ll give this a try. Where’s that tequila".?.

He grabs the bottle of pepper tequila with both hands and downs it, gulp by gulp. Tears are streaming down his cheeks, but he doesn't make a face. Next, he staggers out back. Everyone in the bar hears a huge scuffle outside -- barking, yelping and growling, then silence.

Just when they think the man must be dead, he staggers back into the bar with his shirt ripped and gashes across his body.

"NOW," he says, "where’z at ol' lady with the sore tooth?"