Real Estate Information

September 13, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LET'S TALK TURKEY ABOUT THE CURRENT real estate MARKET

It's easy for us to get so involved in presenting all of the details of our local real estate market  that we forget to put the facts and trends into a context that is easily absorbed. In other words, sometimes we make it so complicated that it's difficult for our readers to "see the forest for the trees".

So, even though Thanksgiving is still a couple of months away, maybe it's time for us to "talk turkey" about the current real estate market and lay out the options that face potential Buyers and Sellers.

Question: Is this a good time to sell?  

Answer : No.

The inventory of available homes for sale far outdistances the demand. And that inventory is growing as banks dump their foreclosed properties on the market. Government attempts to help people avoid foreclosure have not worked. (The Home Affordable Modification Program was supposed to help 3-4 million people. So far, less than 500,000 have applied.). Demand plunged this summer after the Tax credit expired and unsold homes are still piling up. Some experts are estimating that distressed homes could account for half of the market by year-end.

Adding to the problem of oversupply is the pesky problem of unemployment. When people don't have jobs, they don't buy homes. Unfortunately, the programs that have been introduced by the government don't seem to address the real problems of real people. As an example, we have a friend who has been unemployed for 16 months, after being "downsized" by a Fortune 500 company. During this period of unemployment, this individual continued to make regular house payments. When she applied for assistance under the Home Affordable Modification Program, she was told she didn't qualify for assistance because she had made all of her house payments. She would have to be 2 months behind in her payments, before the government could consider her request.

"But, we are being transferred and we have to get rid of this house". Well, if this were five years ago, we would point out that selling your home would depend on upgrading the exterior, repainting, staging, landscaping, etc., etc., etc.. Today, however, the cold, hard fact is that selling your home will depend primarily on aggressive pricing.   

So, where does that leave people who want to sell, but who don't want to "give their house away" by reducing their asking price?  The suggestion we have been making to credit-worthy people who can afford to buy another house is not to sell, but to rent out their present homes until the market can absorb the present glut of distressed properties. Even thought there is a shortage of Buyers out there, there are also growing numbers of potential renters. Almost everyone who has lost a house to foreclosure has now become a renter.

These new renters are quality people who are used to taking care of their homes and who are looking for high-quality places to raise their families. Considering the current low-interest rates, the benefits of home ownership, including income-tax tax-deductions, the pool of potential renters and the looming inflation, the present real estate crisis could turn out to be a blessing in disguise for would-be Sellers who decide to turn their homes into rental properties.

Question: Is this a good time to buy?

Answer: Yes ! Yes ! Yes !

For all of the reasons listed above, this is a great time to buy real estate, either for a personal residence, or as a rental. Inventories are high and interest rates are now starting to creep up (The Wall Street Journal reported on Monday, September 13, 2010, that Fannie Mae and Freddie Mac are now charging over 4%, wholesale. That's an increase of over ¼% from recent days).

Finally, to put all of this into historical perspective, let's compare our present market with what was going on in real estate in 1982.

1982 rates - 18%.    Appreciation rates - 10-12% annually.

Net cost of home ownership - negative 8%

2010 rates -  4.25%. Appreciation rates ­­-   5% annually.      

Net cost of home ownership - positive .75%

So, as you can see, although our present market looks grim, the cost of home ownership is actually way down from 1982 levels. And, in fact, Colorado Springs is currently doing much better than most other parts of the country. Our local Sellers are getting an average of 96.4% of their listed price, whereas, in many of major metropolitan areas of the country, Sellers are only getting 30%-55% of their listed prices. That's a good sign that our local market is starting to stabilize.

The bottom line is that, rather than being concerned about "Inflation" and "Deflation", perhaps it's time for you to concentrate on "Meflation", or, to put it another way, "What opportunities does our present real estate market offer to Me and to My retirement portfolio.

Give us a call and let's discuss it.

WRAP-UP

The Wall Street Journal (Monday, Sept. 13, 2010) contained a very succinct prescription for our present economy.

"The fastest cure for housing would be job creation because it would boost demand for homes while putting delinquent borrowers back on solid footing."

SALES TAX COLLECTIONS CONTINUE TO RISE

Sales tax collections in Colorado Springs rose 1.7% form August 2009. That represents the 10^th month iin a row that collections have risen. Our year-to-date rise over 2009 is 5.82%. These figures indicate that out local citizens are spending money and that is the key to returning to normalcy. Very few cities in the nation are showing that kind of increase.

BITS AND PIECES

FHA Debuts New Plan for Underwater Owners

The latest government program to help underwater borrowers debuted Tuesday.

Under the plan, FHA permits lenders to choose which borrowers will participate from among their clientele. The idea is that there are some borrowers that banks and investors want to get rid of because they are likely to default anyway.

To qualify, a borrower must be current on their mortgage and owe at least 15% more than their home's current value. Lenders must agree to forgive at least 10% of the debt.

The government estimates that between 500,000 and 1.5 million borrowers will be helped, but analysts at Barclays Capital say they doubt whether the program will reach 300,000 borrowers.

FDIC Head calls for Tighter Lending Standards

Banks seeking government guarantees for mortgage debt should be required to hold borrowers to tight and consistent standards, Federal Deposit Insurance Corp. Chair Sheila Bair said in a CNBC interview.

Bair said standards should include "very robust" income documentation, proof of a borrowers ability to repay standard loans and a significant down payment.

"Clearly, there is a strong correlation between the amount of skin in the game a borrower puts in up front and how that loan performs", Bair said. "Do you put 20% down? You're committed to that house. You walk away from that house, you're going to lose a lot of the money that you put up front".

Recipients of First Tax Credit to Begin Payback

Borrowers who took advantage of the original 2008 home buyer tax credit must begin paying the credit back this year. The Inspector General for Tax Administration (TIGTA) says 950,000 owe money.

The required payments are amortized over 15 years - $500 per year. If the property is sold, the credit must be paid at closing.

The TIGTA says the IRS has the incorrect purchase date in its database for some taxpayers who took the original credit. These people may never be identified as owing money, it admits.

Southern Colorado Economic Forum scheduled for October 1

Don't forget to register for the Southern Colorado Economic Forum which will take place on October 1, 2010. This event will present a comprehensive review of all aspects of our local economy and will include presentations from some of the most informed experts in our community.

LATEST STATISTICS

Please click here to see the latest Sales and Listing Statistics for the pPikes Peak area.

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

A very successful real estate Broker had a meeting with his new son-in-law. "I love my daughter, and now I welcome you into the family," said the man. "To show you how much we care for you, I'm making you a 50-50 partner in my Real Estate office. All you have to do is go to the office every day and learn the business."

The son-in-law interrupted, "I hate the office. I can't stand Agents."

"I see," replied the father-in-law. "Well, then you'll work in the office and take charge of some the paperwork."

"I hate paperwork," said the son-on-law. "I can't stand being stuck behind a desk all day."

"Wait a minute," said the father-in-law. "I just made you half-owner of my real estate office, but you don't like the office and won't work in an office. What am I going to do with you?"

"Easy," said the young man. "Buy me out."

September 7, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THE FORUM PUBLISHES THE LATEST "QUE" - AND WE'RE LOOKING GOOD !!

The Southern Colorado Economic Forum of the University of Colorado at Colorado Springs has just released the latest Quarterly Updates and Estimates on the El Paso County economy. .and the outlook for our area is encouraging.

Compared to the national averages, we look very good. For example, the National Association of Realtors reports that, as of July, 31, 2010, the national average price of a home showed an increase of 2.3% over July, 2009. On the other hand, the El Paso County figures for the same period show an increase of 5.9%. That's more than double the national average price increase.

A new feature of the QUE involves "Housing Affordability in the Region". This section of the report shows how an imbalance in supply and demand for single-family housing affects our local-market prices. (See page 7 of the report).

The QUE also contains a word of encouragement for prospective Homebuyers. Don't feel bad if you missed out on the now-expired federal tax credit for Homebuyers. With the low interest rates now available (currently 4.25%), you will more than make up for the lost tax credit in just 4-5 years.

For a complete copy of the QUE report, click here

Also, please note: The SCEF will present the Fourteenth Annual 2010 - 2011 Southern Colorado Economic Forum on Friday, October 1, 2010, 7:00am - 11:30am at the Antlers Hilton Hotel in Colorado Springs. This year's Business Symposium panel will discuss, "Innovation and the Future of the Pikes Peak Region".

We encourage our readers to make reservations to attend, as quickly as possible. All recent Forums have been "sold-out" events.

For complete information about this exciting event,CLICK HERE 

SALZMAN real estate SERVICES SPONSORS MME BUSINESS PANEL

We are honored to be the sponsor of the September 10, 2010 meeting of the Middle Market Entrepreneurs of the Peak Venture Group. The topic of this meeting, "Using the Open Innovation Engine to Propel Growth" will feature a panel consisting of Patrick Bultema, CEO of CodeBaby, Merideth Vaughn, President  of Vladimir Jones, John Street CEO of MS Biotech and Michael Larson, PhD, UCCS, El Pomar Chair of Engineering and Innovation. The event will be moderated by David Lee, Co-Chair of What IF! Festival of Innovation and Imagination and President of Strategic Perspectives, LLC.

The Middle Market Entrepreneur group contributes to the success of mid-size companies by engaging their executives in an exchange of relevant ideas. One of the reasons we were offered the opportunity to sponsor this event was our trademarked slogan, "The Power of relocation Innovation", which emphasizes our company's focus on Innovation as the key to future business success.

We will summarize the ideas discussed at this exciting MME meeting in future issues of our enewsletter.

HOW WILL OUR ELECTED OFFICIALS SOLVE THE UPCOMING BUDGET CRISIS??

As we approach another round of elections, we are reminded that the choices we make at the ballot box could either help us recover from the ongoing economic slump, or, could come back to haunt us. Using our local real estate market as just one indicator of the problems that our political leaders will face, let's examine the problem of upcoming budget shortfalls.

Here is an example of just one home which will show a reduction of approximately 20% in assessed value in 2011. This house, in 2010, was assessed by the county for $550,000. Just last week, that same house was listed for sale for $449,000. (Within one week, however, our competitive market forced the Owner to further reduce the asking price to $424,900).

In 2011, for tax purposes, the county will re-assess the value of all homes within the county, and property taxes will reflect that new assessment. At that point, this house will go from a taxable basis of $550,000 to a basis of $429,000 or less, depending upon the final sales price, a reduction of approximately 20%. This type of reduction, if widespread, could foretell a substantial reduction in market value and, therefore, to tax revenues to the county, within the space of just one year.

What will our elected decision-makers do to make up for this loss of income? Cut services?   Increase taxes?  Lure new businesses to our area in order to generate more tax income? How will our state and county budgets be adjusted?

Maybe we should ask all candidates what solutions they have in mind, before we cast our votes.

LATEST STATISTICS

This past week, the Pikes Peak Association of Realtors reported Listing and Sales activity for August, 2010. Some of the highlights in our monthly report were:

•  Number of sales - 688 (a decrease of 22.8% from August, 2009)
• Average sales price was $246,072 (an increase of 10.6% from August, 2009)
• Median sales price was $205,000 (an increase of 4.8% from August, 2009)
• Total inventory for sale was 5839 units (an increase of 15.9% from August, 2009)
• Average time on the market was 89 days (which, considering the market, is normal)
• Ratio of average sales price to listing price was 96.4%. This figure is significant, in that it demonstrates that Sellers who actually got to the closing table, had to compromise their listing prices downward to reflect the current market. We recognize that this is a painful reality. We understand that "My house is worth more than that", but, regardless of what Jimminy Cricket said, wishing will not make it so.

The bottom line is that, although there are Buyers out there, they are few and far between and they are looking at price, above all other considerations. The Sellers who recognize that fact are the ones who are closing.

To see a copy of the complete PPAR report, click here.

6 REASONS TO REDUCE YOUR HOME PRICE

The National Association of Realtors asks prospective Sellers to consider the following six reasons to reduce your asking price.

1.  You're drawing few lookers. If other houses in your area are drawing more attention than yours is, it may be a sign that potential Buyers consider it overpriced.
2. You're drawing lots of lookers but have no offers. That should tell you something. 
3. Your home has been on the market longer than similar homes. If the average number of days that it takes to sell a home in your market is 30, and your home has been on the market for 45 days, your price may be affecting Buyer interest. 
4. You have a deadline. If you must sell soon because of a job offer or transfer, it may be necessary to drop your price to generate Buyer interest. Remember, it's not how much money you need that determines the sale price of your home, it's how much money a Buyer is willing to spend. 
5. You can't make upgrades. If you can't afford to paint the walls, clean the carpets, etc., you will have to recognize that Buyers expct to pay less for a home that doesn't show as well as others.
6. The competition has changed. Check out the competition. Review the selling price of comparables. The market can change in a hurry.

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.

If you think no one cares you're alive, miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they won't pay.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

This country is great. It's the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage and call yourself a homeowner.

The trouble with owning a home is that no matter where you sit, you're looking at something you should be doing.

August 30, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THE BIG PICTURE

First time buyers deserted the market in July, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of real estate Market Conditions. In March and April, First-Time Buyers accounted for 48.2% of all Homebuyers, whereas in July, they accounted for only 39.1%, the lowest level in at least a year.

Thomas Popik, the research director for Campbell Surveys said that " We expect a further decline in first-time Buyers, perhaps as low as 30-35% by the fall months. The end of the tax credit for first-time Homebuyers clearly had an effect". Interestingly, first-time Homebuyers made up a healthy 46.4% of short sale purchasers last month.

The most frustrating aspect of short sales continues to be the timeframes required between offers and acceptance. Even though lenders have somewhat reduced the time required for acceptance (One major financial institution proudly announced that their timetable is now down to 4 months for approvals - down from 11-12 months), the process still takes too long. Prospective Buyers often tend to get frustrated with the delay and choose to buy elsewhere. This is obviously the reason that, as of July, foreclosed properties (REOs) averaged more offers than short sale properties.

VOICEAMERICA IS CALLING AGAIN

Speaking of short sales, we have been invited back to speak about this topic and about foreclosures on VoiceAmerica. The Host/Interviewer will again be Deborah Hoskins, JD, CFP, on her show, "The Wise and The Wary". The topic will be "The Realtor's Role in Assisting Clients with Foreclosures and Short Sales". Tune in on October 13, 2010 and listen to what promises to be an interesting show. We will give more details as we get closer to the air date. In the meantime, you can learn more about VoiceAmerica by clicking on this link.

WHERE ARE THE BUYERS??

In July, existing-home sales were sharply lower, but median home prices continued to rise, according to the National Association of Realtors. Sales showed a drop of 27% to the lowest figure in 15 years and represented the largest monthly drop on record, dating back to 1968.

On the other hand, mortgage interest rates also continued to drop. Last week, there were times when we could obtain 30 year, fixed-rate home mortgages for as low as 4.0%.

So, why aren't more people buying homes? One of the big reasons is that there aren't many Buyers out there right now and, the ones that eventually will buy are holding back, thinking that the market hasn't bottomed out yet. That looks like a risky gamble in today's market as statistics indicate median home prices are on the rise.

Unfortunately, inventories are also growing. One reason for that fact is that prospective buyers and realtors are both growing leery of dealing with short sale properties, because of the length of time required to obtain final approval from lenders. This problem has gotten so bad that many Realtors will not even show short sale properties. The result is that, as these properties are dumped into the market by lenders, they simply sit there and, along with new foreclosures, increase the size of the inventory of available homes. This creates even more pressure to lower prices. Conservative estimates indicate that these properties account for 20%-30% of the market.

The bottom line for Buyers is that, with large inventories of homes for sale (which pushes prices down), and with low mortgage rates (which pushes costs down) and with looming federal increases in fees on the horizon, there will probably never be a better time to buy. 

Call us.

WHERE WOULD YOU RATHER BE ??

The late comedian/actor W.C. Fields was famous for hating Philadelphia, PA. (probably because of the bad reviews he received there). His dislike for "The City of Brotherly Love" was so intense, that he selected the following epitaph for his tombstone. "All things considered, I'd rather be here than in Philadelphia".

Now, we don't share W.C. Field's dislike for Philadelphia, but the latest economic data about Colorado Springs leads us to feel that, "All things considered, we'd rather be here than anywhere else".

In a speech on August 25^th, Fred Crowley, PhD, chief economist for the Southern Colorado Economic Forum gave us a preview of the report on our local economy which he and Tom Zwirlein, PhD,, will present at the upcoming Southern Colorado Economic Forum. In a nutshell, Fred's summary of our local economy is that, "We've fared so much better than the national market that it's absolutely mind-boggling".

To cite a few of the encouraging facts from their upcoming presentation: 

• Our year-to-Date residential home sales are up 8%, compared with a 22% decline nationally
• Our average home price has increased 3% and the median price is up 5%
• Our foreclosures are 14%-15% lower than one year ago
• Our new car registrations have nearly doubled from June-July 2009
• The Business Condition Index for El Paso County is up in 6 of the 10 indicators

(The BCI is a measure of 10 economic indicators, including emplanements, city sales and use tax collections, local employment rate, etc.)

• Our BCI bottomed out in February, 2010 and has increased 20% since then
• Our initial unemployment claims are down 27.3%
• Taxable retail sales are up 8%

To hear more about this very interesting report and to attend great seminars by other national experts, we encourage you to attend the upcoming 2010-2011 Southern Colorado Economic Forum, on October 1, 2010, at the Antlers Hotel in downtown Colorado Springs. To register, visit the Southern Colorado Economic Forum website. This annual event has become a sellout, so put it on your calendar, today.

NEW FEDERAL REGULATIONS WILL MEAN HIGHER COSTS FOR HOMEBUYERS

Although there are no specific Rules and Regulations currently available from the 2300-page Dodd-Frank Financial Overhaul, we do know that there will be new fees created for federally-insured mortgage borrowers. (i.e. Fannie Mae, Freddie Mac, FHA and VA mortgages account for about 90% of all new home loans). We do know that, beginning in October, 2010, FHA will raise their annual insurance premiums to as high as .9% of the loan amount (up from .55%). At the same time, the up-front premiums due at closing will drop to 1% from the current 2.25%.

The Dodd-Frank recommendations are intended to increase the reserves of Fannie Mae and Freddie Mac, so that these agencies do not repeat their near-collapse caused by the recent housing crisis. Whatever final regulations are adopted, we can be sure that they will make it cost more to buy your new home after October 1, 2010.

This is just one more reason to buy today!! Call us  

TIDBITS FROM HERE AND THERE

The following two items from Daily real estate News, August 30, 2010, caught our attention.

5 Reasons Homeownership Trumps Renting

The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction. Here are five of them:

Be your own landlord. The bank can only kick you out if you don't pay; a landlord can be much less dependable - deciding to sell the property or choosing to live there themselves.

Paying the principal is forced savings. Yes, it's possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.

Fixed-rate mortgages never rise - and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.

Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.

Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned - not rented.

Administration Undecided about Another Tax Credit

Housing and Urban Development Secretary Shaun Donovan said Sunday on CNN's "State of the Union" that the administration would "do everything we can" to stabilize the U.S. housing market.

Whether it will resurrect the first-time home buyer tax credit is up in the air. Donovan said that the drop in home sales in July was worse than the administration expected.

Donovan also said that the Federal Housing Administration will launch an emergency loan program to help unemployed borrowers stay in their homes and a program to help underwater borrowers refinance.

LATEST STATISTICS

To see the most recent Sales and Listing statistics from the Pikes Peak area, Click here

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

A small-business operator, a tax accountant and a government economist apply for the same job.

The interviewer calls in the small business operator and asks "What do two plus two equal?" The small business operator replies "Four." The interviewer asks "Four, exactly?" The small business operator looks at the interviewer incredulously and says "Yes, four, exactly."

Then the interviewer calls in the tax accountant and asks the same question "What do two plus two equal?" The accountant says "On average, four - give or take ten percent, but on average, four."

Then the interviewer calls in the government economist and poses the same question "What do two plus two equal?" The economist gets up, locks the door, closes the shade, sits down next to the interviewer and says, "What do you want it to equal"?

August 23, 2010

 HARRY'S WEEKLY UPDATE

TODAY'S LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THE ECONOMY IS SHOWING VARYING SIGNS, ACCORDING TO NAR

The following excerpts are taken from an August 18, 2010 article by Lawrence Yun, chief economist for the National Association of Realtors:

"These past few months saw a "pause" in housing market activity following the rush of Buyers to qualify for the tax credit. This pause was anticipated and is still occurring. Whatever current or former Fed chairmen say, most observers and analysts of the housing market say the same thing: IT DEPENDS ON JOBS.

Gross Domestic Product (GDP), which measures total production in the economy, decelerated to 2.4% in the second quarter after growing 3.7% and 5% in the prior two quarters. Let's review what we know of each of the GDP components in real dollars above inflation:

• Consumer spending has been rising at a 2% rate, rather than a 4% growth rate prior to the recession.
• State and local government spending has been falling by 2% because of the need to balance their budgets.
• Federal government spending has been increasing by 6%-7% in the past two years.
• real estate construction spending has not experienced any meaningful growth lately.
• For a variety of reasons, do not expect any help to GDP growth from foreign trade.
• Business spending remains 23% below its peak. Businesses are not spending as they should

One thing is clear. Slow business spending will mean slow economic expansion and a slow pace of job creation. (Editors note: The government's response to all of these factors reminds me of the old cartoon's title, "The beatings will stop when productivity improves")

For home sales, the only hope to restart any momentum in the absence of robust job growth is low mortgage rates. Thankfully, we still have that.

Despite the low interest rates (which should encourage and abet borrowing), consumer prices could stop decelerating and start to move up. If that happens, watch out for what happen to interest rates.

The outlook for the economy remains unusually uncertain. However, if business spending comes back where it should be, then GDP could easily grow at a 5% rate. That would correspond to very healthy job gains of possibly 3 million in a single year. As we know, people with jobs, buy homes. That would, indeed, be a good sign for housing.

HOUSING PRICES ARE A DIRECT REFLECTION OF THE AVAILABILITY OF JOBS

One of the most difficult tasks that Realtors face today is telling prospective Sellers what their homes are worth in today's market. Most people are not aware of how drastically the economic downturn has affected the market value of their homes, until they decide to put them on the market. When we show them what the local market says their home is worth, they go through the classic steps of grief, i.e. disbelief, anger, negotiation and resignation.

But, keep in mind that "All real estate is local"  and, in some parts of the country, Real Estate values have held up quite well. What's the difference between the "Winners" and the "Losers"? In every case, the thing that makes the difference between sinking and rising Real Estate values is the local job market. Where there are opportunities for good, primary jobs, real estate values are up. Where there is a shortage of good, primary job opportunities, as there is now in Colorado Springs, home values have been strongly affected.

The fact is that real estate values, as well as all other aspects of any economy depend upon the health of the local job market. (In a healthy economy, Real Estate represents approximately 6% of the total economy.)

So, what can a community do to create more job opportunities? To seek an answer to that question, let's look at what some other creative groups have done to create jobs in their cities.

First, let's look at Huntsville, Alabama, a city that has shown remarkable economic growth in recent years. As the August 20, 2010 issue of the Colorado Springs Business Journal points out, the boom in Huntsville was the result of a coordinated effort by local government, jobs-creation groups, influential political allies, a long-standing commitment to building a diverse economy, generous local government incentives and a university that makes technology innovation a top priority. All of the efforts of all of these various groups were spearheaded and overseen by a single economic development force, namely, the Huntsville/Madison County Chamber of Commerce.

Bottom line: They created jobs. Huntsville, Alabama was just named by The Wall Street Journal (Aug. 21, 2010), as one of the best cities in the U.S. for real estate investment. Their housing prices are up. Their unemployment rate is 7% (vs. 8.9% in Colorado Springs and 9.5% nationally). Businesses are hiring and available retail and office space is at a premium.

Another dramatic example of jobs creation was the work done by Jodi Rell, Republican Governor of Connecticut. In a traditionally Democratic state, she organized all levels of state and federal government, together with commercial business leaders, into a dynamic marketing effort to persuade Starwood Hotels to relocate their headquarters from New York into Connecticut. Under her leadership, a new office park was created, anchored by Starwood, with over 800 new, high-level jobs, paying an average of $115,000 annually. Obviously, this type of job spins off many other service-type jobs within the park.

In every other example of successful jobs creation that we have investigated, there is one common denominator. The successful efforts all required strong, local political leadership .Leaders with a vision, with leadership and organizational skills, with the ability to work with local businesses and with a willingness to develop incentives that could attract new businesses into the area.  

Bottom line? The direction of our local economy, our quality of life and the market value of our homes will depend largely upon how many new jobs our elected leadership can create in Colorado Springs. So, we strongly suggest that, in the upcoming elections in April, we should ask every candidate for office, "What is your plan for creating new jobs in Colorado Springs?"  

FROM HERE AND THERE

Realtor Magazine gave us three interesting items, this week:

Americans still want to own a home

More than 72% of American adults say that home ownership is a part of their personal American dream, down from 77% six months ago, according to a survey from Trulia.com

About 23% said their attitude toward home ownership has grown more positive in the last six months, while 19% say theu feel more negatively.

Among those adults who are renting a home, 27% say they never intend to buy.

Of the renters who do plan to purchase eventually, 68% said it would be more than two years before they do.

The factors that would encourage them to buy now are:

• Able to save a down payment, 47%
• Land a new job, 28%
• Interest rates stay low or fall lower, 27%
• Some other factor that persuades them that buying makes financial sense, 24%
• Get a raise. 23%
• Local real estate market stabilizes. 9%

Three reasons to buy a home now

Stocks are up 50% from the March 2009 bottom. Some commodities have risen dramatically. The only asset class left in the cellar is real estate, says Michael Murphy, editor of the New World investor stock newsletter.

As a result, Murphy is advising investors to buy now for these three reasons:

1. Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.
2. Little competition: Because most people don't have what it takes to negotiate their way through the short sales and REOs, patient investors are winners.
3. Low rates: Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.

LATEST STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak region

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

So, this Realtor dies and goes to Heaven (OK, OK, It's just a joke, for goodness sakes). When he finishes the Grand Tour, he says, "Hey, St Peter, you have a great place here. We could really double your investment if we just built a few condos, did some strategic re-zoning, dedicated a couple of parks and marketed the whole development properly. What do you say?"

St. Peter says, "That sounds like a great idea, but we can't do it".

The Realtor says, "What do you mean, you can't do it. It's a slam dunk. Everybody's home values would go up and we'd all be on Easy Street.

St. Peter says, "You don't understand. It's a financing problem. We don't have any lenders up here".

Just then, there's a knock on the pearly gates. When St. Peter opens the door, the devil is standing there, looking embarrassed. He says, "Is it too late for me to change my mind? I think I would like to come back to Heaven".

St. Peter asks, "Why the change of heart?"

The devil replies, "I don't have anywhere else to live. My banker just foreclosed on Hell and evicted me".

August 16, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

INTERNET RADIO IS ALIVE AND DOING VERY WELL !!!

We received a lot of positive feedback from our 50-minute interview on www.VoiceAmerica.com. On the show, Deborah Hoskins, JD, CFP, the host of "The Wise and The Wary", asked me about some innovative, aggressive and creative marketing ideas for closing real estate deals in today's market.

The VoiceAmerica Talk Radio Network is the single largest producer of original Internet talk radio programming in the world. If you didn't hear the live interview and would like to hear it, please click here.  

Give us a call and let us know how you liked the interview.

LATEST LOCAL STATISTICS

The latest statistics from the Pikes Peak Association of Realtors confirm that the federal tax credit for Homebuyers was an inducement for some prospective Homebuyers to make their move by April 30, 2010, in order to qualify for the tax credit. Unfortunately, however, while the tax credit did create some Buyers and persuaded other prospective Buyers to buy in the Spring, rather than in the Summer, the bottom line was that the buying "spree" died along with the tax credit. As a result, July sales were slightly down.

As the July statistics also show, total residential sales in July, 2010 decreased to 713, a decrease of 21.9% from June, 2010 and a decrease of 24.6% from July, 2009.

The good news is that, although the median sales price in July, 2010 ($237,029) remained basically the same as June, 2010, it did show an increase of 5.1% over July, 2009.

Note that the total active listings amounted to 5955, which is .6% above June, 2010, and 16% above July, 2009.   

All of these figures demonstrate that we are in a Buyers' market. Prospective Buyers have their choice of houses at very competitive prices and Sellers are really in a squeeze. They must be willing to spend whatever is necessary to make their homes visually attractive and must be willing to price aggressively, to make their homes economically attractive.

The result of this "squeeze" on Sellers is that we meet prospective Sellers every day who are holding their homes off the market "until the market improves". Normally, that decision makes sense. However, considering the current large inventory of available homes (which will delay any significant increase in home prices in the immediate future) and the availability of extremely low interest rates (which will not last forever), we are encouraging prospective Buyers to consider listing their homes at a competitive price RIGHT NOW.

Consider these scenarios:

• Seller #1 has to reduce his selling price, in order to make the sale. He then becomes a prospective Buyer. Thus, the money he "loses" when he sells, he makes up for by buying his next home at the low prices and low interest rates that are now available. He has, essentially, taken money out of one pocket and put it back into another

.and he ends up with very low mortgage payments for the next 30 years.

• Seller #2 holds his home off the market until the market "comes back". When prices eventually go up, he will get a higher price for his house, but will pay more for his next house when he buys. The money he has "made" by waiting, he "loses" when he buys his next home. He has simply put money into one pocket and taken it out of another.

.and he ends up with higher mortgage payments for the next 30 years.  

 Bottom line ?  Let us help you sell your home right now. Call us.

COLORADO SPRINGS SALES TAX COLLECTIONS MAINTAIN UPWARD SWING

Sales tax collections in July rose 8% from July 2009, according to the Gazette (August 11, 2010). That makes 9 months in a row that sales tax collections have increased, compared to a year earlier. Much of the increase was because of the increase in auto sales. (Just one more reason we should thank our returning troops).

Fred Crowley, Chief Economist at the University of Colorado at Colorado Springs, explained, "We're at that re-buying stage right now. It's a classic inventory-recovery, post-recession period"

WHAT DOES THE NATIONAL MARKET LOOK LIKE?

On August 11, 2010, the National Association of Realtors released its quarterly performance report on the 155 largest metropolitan statistical areas in the nation (MSAs). The survey includes all MLS sales. The report shows that, compared with the same period in 2009, the second quarter of 2010 showed higher median prices for existing family homes in 100 of the 155 MSAs.

(Note: "Median Price" represents the exact middle of the price range i.e. half of the homes sold for more and half sold for less than the median price). The median price is considered to be the most accurate housing price index.

At the end of June, the national median price for existing, single-family homes was $176,900, up 1.5% from the same period one year ago. In Colorado Springs, however, the median price went up 4.1%. That's almost three times more than the national median price increase. Hooray for us !!

In spite of that piece of good news, it's still apparent that sales are lagging both nationally and locally and Realtors nationwide report that the federal tax credit was just a temporary fix for the problem.  

LET US "TAKE YOU OUT TO THE BALLGAME"

We are one of the original supporters of the Colorado Springs Sky Sox, the AAA Affiliate of the Colorado Rockies Baseball Club. So, as part of the Sky Sox Sponsor-Appreciation Nights, we have been given 50 free tickets to the Sky Sox games on Tuesday, August 24 (featuring the always-popular $2 Coors and $2 parking), Wednesday, August 25 (featuring the annual Bark in the Park. All dogs admitted free) and Thursday, August 26 (with live entertainment and Wing Fest 2010. Sample the Best Wings in Colorado Springs for free). Game times are 6:05pm. These are reserved-seat tickets and we will give them out to our enewsletter subscribers on a first-come, first-served basis (Maximum 4 tickets per person).

If you would like to see some exciting baseball, just drop by our office and pick up your free tickets. .and we won't even ask you to buy us some peanuts and CrackerJacks.  

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

QUESTION OF THE WEEK

Please choose whichever one of the following statements makes more sense to you:

a. The government will give $3 billion to unemployed homeowners who are delinquent in their mortgage payments, so they can delay eventual foreclosure.

Or

b. The government will spend $3 billion to assist small businesses which will hire unemployed homeowners, thus helping them catch up on their delinquent mortgage payments.

Maybe it's just us, but it seems to be an example of the ancient saying, "Give a man a fish and he will eat for a day, but, teach a man to fish and he will be able to feed himself for the rest of his life".

Duh !!!

JOKE OF THE WEEK

Short real estate Jokes

My buyer told me that he lived in the same house for 10 years. When I checked, I found out he'd still be there today if the Governor hadn't pardoned him.

The sellers told me their house was near the water. It was in the basement.

How much are they asking for your rent now? Oh, about twice a day.

I have a temporary mortgage. What do you mean temporary? Until they foreclose.

Realtor: first you folks tell me what you can afford, then we'll have a good laugh and go on from there.

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.

There is no longer a need for the neutron bomb. We already have something that destroys people and leaves buildings intact. It's called a mortgage.

If you think no one cares you're alive, miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they won't pay.

I listed a maintenance free house. In the last 25 years there hasn't been any maintenance.

Did you hear about Robin Hood's house? It has a little John.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

Houses today don't have enough closet space. Sure they do. They're just called guest bedrooms.

"A lot of homes have been spoiled by inferior desecrators".--Frank Lloyd Wright

The house is only 5 minutes from shopping . . .if you've got an airplane.

This country is great. It's the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage.. and call yourself a homeowner.

A man's home is his castle. That's how it seems when he pays taxes on it.

The trouble with owning a home is that no matter where you sit, you're looking at something you should be doing.

This house has an all-electric home. Everything in it is charged.

My buyers want a new home on the outskirts---of their income, that is.

By the time you pay for a home in the suburbs, it isn't.

August 10, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

VOICEAMERICA IS CALLING

No matter where you are in the nation, if you listen to VoiceAmerica.com this Wednesday at 2pm MST, you can hear my interview with Deborah L. Hoskins, JD, CFP. Deborah is host of the show, "The Wise and The Wary". She has been an attorney for 26 years, specializing in estate planning, disability planning and elder law. In addition to her duties as Talkshow host, she is a public speaker and writer on elder law issues and financial planning for women and retirees.

Deborah's press release describes our upcoming interview as follows:

"How to Close a real estate Deal

In today's real estate market, traditional Realtor strategies simply aren't good enough. You need the right people and the right tools to get you to the closing table. Your agent needs to be creative and aggressive, and needs to have the expertise to negotiate the best deal for you. Listen in as Deb interviews Harry Salzman, CRS, CRP, a national expert on innovative negotiation strategies for the real estate market, as he explains common seller mistakes and suggests effective remedies. "

VoiceAmerica is the single largest producer of original Internet talk radio programming in the world. Since 1999, the VoiceAmerica Talk Radio Network has been streaming live Internet talk radio programs, featuring more than 200 hosts broadcasting on seven genre-based channels:

• VoiceAmericaT Variety Channel,
• VoiceAmericaT Health & Wellness Channel,
• VoiceAmericaT Business Channel,
• VoiceAmerica Sports,
• 7th Wave Network,
• The Green Talk Network
• Power Up Motorsports Channel.

We are honored to have been asked to address Deborah's listeners. Give us a call and let us know how you liked the interview.

COLORADO SPRINGS RANKS HIGH IN SURPLUS OF HIGHLY SKILLED WORKERS IN RELATION TO DEMAND

Colorado Springs MSA ranked 51 of 366 metros in surplus of highly skilled workers relative to demand according to Chmura Economics & Analytics. More Information

CALIFORNIA COMPANIES RELOCATING TO COLORADO SPRINGS

Why are California companies fleeing to Colorado? Joseph Vranich, The Business relocation Coach, says high taxes, undue regulation, excessive fines and fees, high workers' comp costs, a legal environment stacked against businesses, and lengthy permitting requirements are why companies are relocating out of California.  More Information


Did You Know:  

• Colorado ranked 3rd best state in the country for doing business, according to CNBC. (07/10). They cite the strength, health and diversity of the state's economy More Information
• Colorado Springs ranked 7th "Best Mid-Size City" by Portfolio.com. The study was ranked on healthy economies, moderate living costs, light traffic and strong educational systems. Portfolio.com compared 109 medium-sized markets with populations between 250,000 and 750,000. More Information
• Colorado continues to have the lowest percentage of obese adults at 18.9 percent according to Trust for America's Health. More Information
• Colorado Springs ranked 19th "Best City for Families" according to Parenting.com. Cities were ranked based on health, safety, education, economy and recreation.
  More Information
• Colorado Springs has 5 high schools listed on Newsweek's annual America's Best High Schools list. The ranking is based on how hard their staffs work to challenge students with advanced-placement courses and tests.
  More Information
• Colorado Springs was listed in RelocateAmerica.com's "Top 100 Places to Live in America for 2010". The list focused on communities poised for recovery and future growth. The editorial team discovered communities with strong local leadership, employment opportunities, thriving community commitment, improving real estate markets, growing green initiatives, plentiful recreational options and an overall high quality of life. More Information

NOTICE TO ABSENTEE HOMEOWNERS - VACANT HOMES POSE INSURANCE RISKS

RISMEDIA, August 4, 2010--As the U.S. housing market struggles to rebound, many homeowners are stuck with hard-to-sell properties longer than expected. Some frustrated home sellers who must relocate for a new job opportunity, want to downsize or simply want to buy a new place have left homes empty. Vacant or unoccupied homes can leave the homeowner exposed to loss and liability that may not be covered by their insurance, according to the National Association of Insurance Commissioners (NAIC).

The Pending Home Sales Index, released today by the National Association of Realtors, dropped 2.6 percent to 75.7 based on contracts signed in June from 77.7 in May, and is 18.6 percent below June 2009 - another sign of the stagnant housing market.

"In many cases, people who have been trying to sell their homes for awhile have moved forward with their plans regardless, leaving a vacant home on the market," said NAIC President and West Virginia Insurance Commissioner Jane L. Cline. "Having an unoccupied home can create several insurance implications that typically are not covered under a standard homeowners policy."

The Added Risks of Vacant Homes

Homeowners policies are meant to insure homes that are occupied, so they generally include exclusions for neglect or property abandonment on a home left vacant or unoccupied for a specified number of consecutive days.

In insurance terms, a vacant home is one the resident has moved out of and taken his/her belongings with him/her. An unoccupied home is one where the resident is not staying at the home, but the furniture and other belongings remain.

Because vacant and unoccupied homes pose a higher risk for damage than occupied homes, insurance companies insure these properties differently and usually at a higher price. These risks include:

-- Break-ins: When a home has been unoccupied for awhile, it can show signs that nobody is around - unkempt lawn, full mailbox, no lights on - that can tip off burglars to an easy target.

-- No emergency response: Without anyone home to call 911 or respond to emergencies, a manageable problem - such as a small electrical fire - can turn into a much larger, more costly disaster.

-- Property liability: There is no one present to prevent others from entering the property or to supervise activity, which could increase the likeliness of an accident on the premises or property damage when the owner is not there.

Keeping A Vacant Home Properly Insured

The definition of vacancy and unoccupancy can vary from policy to policy. Some insurers may not pay claims if a home is vacant for 60 days or more. Some policies might automatically shift to a different amount of coverage (e.g. liability insurance only) after a specific number of days unoccupied.

Many homeowners policies have a "vacancy clause" that can be triggered if the homeowner is gone for an extended period of time. If this happens, the homeowner could violate the terms of their contract and some or all of their coverage may not apply in the event of a loss.

"Before you decide to leave a home vacant or unoccupied for a long period of time, talk to your insurance agent or company to learn how they define vacancy and unoccupancy, and whether the company will pay claims if a house is unoccupied," said Cline. "Be honest about your situation, because while an extra policy might cost more, it could save you money down the road should there be an accident or damage to the home."

Many insurance companies offer an endorsement that will provide coverage for a dwelling that is unoccupied for an extended period of time. Vacancy policies can also be purchased for different term lengths to cover a few months to a year, depending on the need.

The cost of vacancy coverage depends on the company and state in which the property is located, but costs usually are higher than a typical homeowners policy due to the overall increase in risk.

Better talk with your insurance agent today !!!

STRATEGIES FOR A SIDEWAYS MARKET

If you're not sure this is the time to buy, consider the following:

Mortgage interest rates are at an all-time record low. (This past week, we found 30-year, fixed rate mortgages for 4.25% - 4.375%, without loan origination fees or discount points).

The good news is that foreclosures are down, down, down. New foreclosure filings in Colorado are at their lowest point in over a year. (2010 second quarter filings were down 15.7% from 2009. Locally, El Paso County filings were down 12.5%.)

Bloomberg News reports that service industries expanded faster than forecasted in July, and might even increase employment in the second half of 2010. They report, "Record low mortgage rates may prevent housing from slumping much more. July's rebound in stock prices, the biggest in a year, will probably help underpin consumer confidence".

The Non-Manufacturing Employment Gauge of The Institute for Supply Management (ISM), climbed to the highest level since the recession began in December, 2007. The survey covers such services as utilities, retailing, health care, housing and finance.

Locally, single-family homebuilding permits for the first seven months of 2010 were 43% over the same period in 2009.

All of these factors indicate a great opportunity for Buyers to make their move. Call us.

THINKING OF SELLING YOUR HOME?

In "The Old Days", Sellers could list their house at their "hoped-for" price, engage in some price dickering with the prospective Buyer, offer some minor price reductions for deferred maintenance issues, and then close the deal. However, in today's competitive market, Sellers should be aware that their house must be aggressively priced right from the start, or, they won't even see any prospective Buyers. That's why it's important to engage the services of an experienced Realtor for advice about a proper listing price. There are also incentives that your Realtor can explain to you that will serve as an inducement for prospective Buyers. Call us.

Furthermore, considering that many of the homes on today's market are in "like-new" condition, it is extremely important that, in order to be competitive, the Seller's house must be in terrific condition. Make those needed repairs before you list.

Finally, be sure to discuss the house's appearance with your Realtor. You may have to do some landscaping and painting on the outside and some 'staging' on the inside. Gone are the days when Buyers would overlook overgrown yards, peeling paint, toys on the floor, family pictures on the wall and rooms full of moving boxes.

However, the 'up' side of this market for Sellers is that, although you might have to take less for your home than you wished, your replacement home will cost much less than it would have three years ago and your new mortgage will be a big improvement over your present mortgage.

It's a whole new ball game out there and we can help you win it. 

WHAT IS YOUR WASHING MACHINE SAYING TO YOU?

How's this for a novel idea to improve customer service? On August 4, 2010, Sears announced Kenmore Connect, a technology developed with LG Electronics to speed up appliance repairs. The way it works is that the owner of the ailing Kenmore appliance calls customer service and holds his cellphone up to the machine. The company representative identifies the problem by reviewing screens of data generated by the washing machine via a toll-free phone line.

This new technology is expected to streamline repair service to customers, and the savings to Sears could be staggering. Kenmore presently maintains the nation's largest repair fleet of more than 10,000 trucks and handles 12 million service calls annually. This new program will be able to identify problems that could be resolved with a minor adjustment, thus eliminating the need for a visit from the repairman. (This type of problem accounts for about 60% of present repair calls) Betsy Owens, Vice-President of Kenmore, estimates that Kenmore could eventually reduce its truck runs by half.

Kenmore Connect will come with appliances priced from $799 to $1,499.

By the way, we can guarantee you that, if your home has one of these appliances, it will make it much easier for us to sell.

2010 PARADE OF HOMES IS NOW OPEN 

LATEST STATISTICS

At press time, the statistics for July were not yet available, but, Click here to see the real estate sales and listing statistics for the Pikes Peak area for June, 2010.

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

Part of rebuilding New Orleans caused residents often to be challenged with the task of tracing home titles back potentially hundreds of years. With a community rich with history stretching back over two centuries, houses have been passed along through generations of family, sometimes making it quite difficult to establish ownership. Here's a great letter an attorney wrote to the FHA on behalf of a client: 

You have to love this lawyer........

A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down. After sending the information to the FHA, he received the following reply.

(Actual reply from FHA):

"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin." 

Annoyed, the lawyer responded as follows: 
(Actual response):

"Your letter regarding title in Case No.189156 has been received. I note that you wish to have title extended further than the 206 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased by the United States from France in 1803, the year of origin identified in our application. For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain.

The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus 's expedition. 

Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana. God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA. I hope you find God's original claim to be satisfactory. Now, may we have our damn loan?"

The loan was immediately approved.

(These are the same geniuses charged with the Government mortgage bailout.)

August 2, 2010 

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

WAITING FOR MORTGAGE RATES TO GO DOWN ??   GOOD LUCK !!!

In our 38 years of experience, we have never seen mortgage interest rates as low as they are today.  As an example, last Friday we placed a 30-year, fixed-rate mortgage at 4.25%, with no origination fees or discount points. (This rate required that the loan close within 30 days. A 60 day closing would increase the rate slightly and a 15 year mortgage would result in a slight decrease to 3.875% - 4%.). Today, in the Wall Street Journal, we were shocked to see that wholesale rates had gone down even further.

We don't see how it can get much better than this.

Better buy now !!

NAR TO THE RESCUE

As a part of their efforts to protect the private property rights of Homeowners, the National Association of Realtors recently joined forces with the American Land Title Association to ask U.S.Treasury Secretary Timothy Geitner to use the consumer-protection agency created by the recent financial-reform legislation to outlaw "capital recovery fees".

These proposed fees, also known as "re-conveyance fees" and "transfer taxes" are inserted by developers into covenants governing newly-built subdivisions and commercial real estate developments. They require Sellers of a property to pay a percentage, often 1% of the selling price, to the developer of the property every time it changes hands, for up to 99 years.

Thanks to the efforts of the NAR-led coalition, these fees have been outlawed and the "Wall Street Home Resale Fees" are now a thing of the past.

We can't help but imagine the fade-out to this story: The Homeowner watches as the man on the white horse rides away. "Who was that masked man who just saved my home?" he murmers. The announcer replies, "That was NAR, the loan arranger".

Thanks, NAR.

5 REASONS WHY YOU SHOULD BUY A HOME TODAY

A good friend of ours ran the following article in Keeping Current Matters. We thought was an excellent summary of what we have been telling our clients for the past several months and we are reprinting it here:

This might be the best time to buy a home in American real estate history.

Owning a home makes more sense than not owning a home for the vast majority of families in this country. Let me give you five reasons why.

1. real estate is a Great Long Term Investment

Don't take my word on this. This is what Mike Mandel, former chief economist at BusinessWeek and current Senior Fellow at Wharton's Mack Center for Technological Innovation, had to say

"We've just had the biggest boom and bust in real estate in recent history. Nevertheless, real estate has still greatly outperformed the stock market over the past ten years."

Click here to see his chart which shows the actual difference between historical real estate growth and the stock market history.

2. A Home Is a Better Place to Raise a Family

Don't take my word on this. When Fannie Mae asked current renters for the major reason to buy a house in their  National Housing Survey 2010, these were the answers renters gave (they could pick multiple answers):

• 78% said it was a good place to raise children
• 75% said because they would feel safe
• 70% said because you have control of your own space

3. A Home Creates a Sense of Community

Don't take my word on this. The Federal Reserve Bank of New York just published a paper The Homeownership Gap. The paper explained:

Because owners have a financial interest in their property, they have incentives to take measures that will maintain or increase the value of that property. Some of these measures-such as fixing a leaky roof-are closely related to the house itself. Others, such as investing resources in the betterment of the neighborhood and the community, have broader beneficial effects on the local area, creating what economists call "positive externalities."

4. It's Cheaper to Own Than Rent in Many Parts of the Country

Don't take my word on this. Housing Wire just reported on a Credit Suisse study:

While a segment of the renting population continues to rent, many are looking to dip their toes in the homeownership waters. Credit Suisse said the percentage of median household income needed to pay the mortgage on a median priced home is at a 30-year low. Low mortgage rates and property values makes homeownership more attractive than renting for many. In many markets - including Washington DC, California's Inland Empire, Las Vegas and Phoenix - paying for a mortgage is less expensive than renting.

5. The People Who Do Buy a Home Don't Regret It

Don't take my word on this. Probably the best people to ask if buying a home makes sense are the people who currently own homes. A recent national poll commissioned by Bankrate.com found:

Ninety percent of homeowners say they don't regret buying their home despite a nationwide tsunami of foreclosures, short sales and loan modifications.

It's a great long term investment. It's a great place to raise a family. It gives you a greater sense of community. It's less expensive than renting. People who currently own have no regrets.

Buying a home seems like a "no brainer to me".

NEWS FLASH - ALL BUYERS ARE NOT THE SAME

The expiration of the federal tax credit for Homebuyers has motivated Sellers to re-examine their strategy for selling their homes. We are advising our clients that there is no "One-size-fits-all" strategy that will be the most effective. In general, we have found that the price of the listing is a great indicator of which strategy will be most effective.  

Buyers of homes under $200,000 are most interested in price. They are usually in jobs which are highly dependent on the local economy and can best be motivated to buy with a very competitive price and "reassuring" incentives, such as our Job Loss Protection Program. Call us to learn more about this very effective incentive.

Buyers of homes over $300,000 often have very specific requirements for their homes and, although competitive pricing is essential, they can also be influenced by such incentives as home warranties, life insurance and "discounts with deadlines", which are, essentially, price reductions.

The bottom line, however, is that there are some 'tried and true' incentives which are still the best methods for triggering sales

Here's what works best:

-Price it right. Buyers have access to lots of data, and they'll know if your house is too expensive.

-Offer to pay some of the buyer's closing costs.

-Maximize exposure. Saturate the Internet and all forms of social media with your listing.

-Use great photos, not just good ones. Make sure your house makes a great first impression.

-Make it sing. Listing information must be complete and well-written.

-Curb appeal matters. Spend a little money on flowers, new plants and fresh paint.

-Inside, your house should look fresh, so make sure the paint, carpeting, light fixtures and appliances are updated and clean. Get rid of the family pictures.

-De-clutter. Eliminate one-third to two-thirds of your stuff; hire a stager.

-Network. Sales come together because brains understand homes better than computers.

-Be patient. Statistics say that it takes 21 showings, not including open-house traffic, to sell a house.

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

The North Carolina Department of Labor claimed a small Monroe, NC farmer was not paying proper wages to his help and sent an agent out to investigate him.

 Department of Labor employee:  I need a list of your employees and how much you pay them.

Farmer:  Well, there's my farm hand who's been with me for 3 years.  I pay him $200 a week plus free room and board.  

Then there's the mentally challenged worker.  He works about 18 hours every day and does about 90% of all the work around here.  He makes about $10 per week, pays his own room and board, and I buy him a bottle of bourbon every Saturday night so he can cope with life.  He also sleeps with my wife occasionally.

NCDL employee:  That's the guy I want to talk to...the mentally challenged one.

Farmer:  That would be me.

July 26, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THE NEWS AIN'T ALL BAD

Locally, initial claims for unemployment are down 28.6%. The unemployment rate is down to 9.1%. New auto and truck sales are up 7.2%. Taxable retail sales are up 7.2%. The hotel occupancy rate is up 77.7% and foreclosure filings are down 7.9%.

SO, WHY DO I HAVE THIS UNEASY FEELING?

Because local Realtors report that telephone requests for information about listings have dried up and appointments for showings by other Realtors have almost disappeared.

and

Because local Lenders are reporting a big reduction in calls from "Rate Shoppers". Calls from individuals who need mortgage money have dried up and the only calls that are coming in are from people who want to refinance.

and

Because the chief Economist for NAR is predicting an increase in interest rates as a result of the recent overhaul of the financial industry. The $18-$29 billion predicted annual administrative cost of that legislation will increase lenders' costs and will be passed along to consumers. (You remember consumers, don't you?. They are the ones that the law was passed to protect).

The positive side of all of this s that Homeowners are taking their money out of the stock market and using it to remodel their homes or buy investment property.  That's why the story that appears, below, should interest you.

BIG SUPPLY PLUS LOW DEMAND = OPPORTUNITY

Although Colorado Springs has a lot going for it and is better off than most other parts of the country, the local real estate market outlook does, necessarily, reflect the national Real Estate market outlook....and that's not a very happy picture. The Wall Street Journal summed up the problems facing the national market in two recent articles, "housing market Stumbles" (July 21, 2010) and "Home Inventory Rises as Sales Fall" (July 24, 2010).

Some of the various reasons for the current grim National outlook are:

• Tremendous decrease in housing starts (Locally, single-family home permits are down 12.3%. Builders are uneasy about the future.)
• Weak job growth (Locally, wage and salary jobs are down 1.7%)
• Elimination of the federal tax credit for home buyers, which resulted in:
• A decrease in real estate sales (Buyers chose to close before June 30, 2010, in order to take advantage of the federal tax credit.

One result of these negative pressures is an increase in the inventories of new and resale home inventories.

To what extent does our local market reflect this growth in inventories? Well, in Colorado Springs, the month of June showed an increase of 6.6% in listings over May, 2010 and an increase of 15.4% over June, 2009. These increases translate into a growth of inventory of available homes to a level that cannot be absorbed within a reasonable time frame.

What accounts for this sudden growth in inventory? Well, keep in mind that, basically, there are three types of Sellers with homes for sale. First, there are those individuals who have to move out of their homes. They have changed employment or lost their jobs .They are worried about foreclosure..A personal crisis requires them to move closer to some member of their family, etc., etc... The bad economy has contributed to an unusual increase in this type of listing.

Then, there are those Sellers who don't have to move, but would like to cash in on the value of their homes and move up into bigger, better homes. These individuals, misled by the recent, artificial upsurge in sales created by the deadline for the federal tax credit, have concluded that the time is now ripe for them to place their homes back on the market. Because they don't really have to sell, they are not very aggressive in their pricing and are not that interested in negotiating.

(This type of Seller puts the Realtor in an awkward position. Because the Seller's asking price does not reflect realistic market pricing, the house does not attract prospective Buyers. Furthermore, Lenders' appraisals will come in far below the asking price, thus killing the sale. In such instances, everyone is unhappy. The Buyer doesn't see any activity. The prospective Buyer and his Realtor waste a lot of time and the entire deal falls through. For these reasons, responsible Realtors tend to refuse this type of listing).

 Finally, there are the foreclosures and short-sales that Lenders are now listing. Unfortunately, these listings are slow to sell, primarily because of unrealistic pricing by the lenders and slow response time to offers (Almost every Realtor has horror stories about losing sales because a lender would not respond to their offer in a timely manner).

Right now, all three types of Sellers have placed homes on the market and our inventories have grown accordingly.

The bottom line for Sellers is: If you really want to sell, work with your Realtor to establish a realistic listing price and be ready to negotiate.

The bottom line for Buyers is:  Low mortgage interest rates and an oversupply of homes for sale make this a great time to buy your new home.

The bottom line for investors is: CALL ME. The following story shows how our present market offers a once-in-a-lifetime opportunity for investors.     

A BEDTIME STORY FOR PROSPECTIVE INVESTORS

Here's a true story that should make prospective Investors sit up and take notice.

On July 23, 2010, we negotiated a sale for a Buyer, on a home that sold for $313,500. (A comparable home in a similar neighborhood sold for $346,000 on July 2, 2010). Our Buyer paid 25% down and we obtained a 30 year, fixed-rate mortgage @ 4.75%. We required the Seller to pay all Buyer's closing costs, including prepaids.

The PITI monthly payment will be $1530 and the home will rent for between $1800-$1850.

Based upon just these factors, here's how our Investor will realize a minimum 9.4% annual rate of return on his investment:

• Loan amount = $235.125
• Buyer will receive income tax deductions of $11,090 for interest paid and $2,737 for property taxes paid
• At a tax bracket of 28%, the income tax savings to the Investor will be $3,872/year, or, $323/month.
• That makes the monthly cost approximately $1,200 ($1,530 - $323)
• Minimum rental income should be $1800

Bottom line: The Investor will put about $600 per month into his pocket. That's $7,200 annual income.

Considering the original investment of $78,375, that income of $7,200 represents a rate of return of at least 9.4% ($78,375 divided by $7,200).

Additional factors that will benefit the Investor are:

• Depreciation write-offs of $9,580 annually ($313,500 minus $50,000 for land, divided by 27.5 years)
• All fixed expense write-offs
• Local rentals are projected to rise
• A conservative estimate of just 3% appreciation will increase the home's value by $9,000 - $10,000/year.
• Inflation will add even more value to the home

Considering all of these benefits, our Investor should realize a total annual rate of return of 20%-25% annually, on his original investment.

If all of this sounds too good to be true, consider the following:

• We currently have access to all-time-low mortgage interest rates
• Because of the large number of foreclosures and short sales, there is now a high level of demand for high-quality rentals from the people who have had to move out of their "formally-owned" homes
• Rental vacancy rates are near record lows, because of increased demand
• There is a Buyer's market because of the high inventory of available homes
• And, perhaps an even more persuasive factor: INFLATION IS COMING

Call me and let's discuss this opportunity !!!

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

real estate AD EUPHEMISMS


Starter home - run down 

Needs TLC - Major structural damage.

Spacious - average size

Charming - small

Comfortable - very small

Cozy - very, very small 

Low maintenance - no lawn 

Easily maintained - Requires at least two gardeners and live-in maid.

Convenient - Located on freeway entrance ramp.

Walk to stores - nowhere to park your car

Close to lakes - Impossible to park from April to October.

Natural setting - forget about planting, the deer will eat everything

Secluded setting - far, far away 

Park-like setting - there's a tree down the block

Executive neighborhood - high taxes

Sophisticated City living - Next to a noisy bar.

Old World charm - Has some woodwork, needs cleaning.

Contemporary feeling - Has no woodwork, needs cleaning.

Security system - Neighbor has a dog.

Neutral decor - brown walls.

Unique city home - Used to be a warehouse.

Daring design - Still a warehouse.

Sophisticated - Black walls and no windows.

Prestigious - expensive

Bright and sunny - Venetian blinds not included 

Useful outbuildings - No inside toilet. 

Motivated Seller - Has been on the market for 14 years.

Much potential - Grim. 

One-of-a-kind - Ugly as sin.

MUST SEE TO BELIEVE - An absolutely accurate statement.

July 19, 2019

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

IF YOU HAVE EVER CONSIDERED BUYING INVESTMENT PROPERTY, NOW IS THE TIME TO DO IT

IF YOU HAVE NEVER CONSIDERED BUYING INVESTMENT PROPERTY, NOW IS THE TIME TO GIVE IT SOME SERIOUS THOUGHT

All of us are interested in making good investments. The good news is that today's real estate market is offering investors the chance to make some terrific investments in residential investment property. Just look at the facts and examine why this opportunity now exists:

• Lenders are reporting an excess of available money and a low demand for loans. As a result, in an attempt to encourage borrowing, lenders have lowered their mortgage rates to all-time lows.
• Foreclosures and short sales are adding to the inventory of available homes for sale, thus driving selling prices down.

Bottom line:    Home prices and mortgage interest rates are both at record lows

• The families which have lost their homes to foreclosures and short-sales are now in the market for high-quality rentals.

Bottom line:      Investors are currently renting their newly-acquired properties almost immediately. (We recently closed on two separate rental properties which were leased on the same day they closed.)

• Out-of-control government spending will definitely create inflation, which will increase both the future value of the home you buy today, and the mortgage rate you will have to pay, if you don't buy now.  

Bottom line:      The great deal you can make on Investment Residential real estate today will probably turn out to be one of the best investments you ever made. Call us and let's talk about the possibilities. The timing will never be better.

HUD RELEASES 2009 AMERICAN HOUSING SURVEY

HUD's 2009 American Housing Survey (AHS) provides one of the most thorough views inside the homes of millions of Americans and reveals everything from the square footage of the unit to how many homes have front porches, garages or even usable fireplaces. First conducted in 1973, the survey's long-term design allows analysts to trace the characteristics of U.S. housing units and their occupants. For example, the 2009 survey reveals that significantly more American homes are larger and have more bedrooms and bathrooms than homes 37 years ago. In addition, homes of 1973 were significantly less likely to have central air conditioning and other amenities considered commonplace today.

Here are just some of the findings of a comprehensive national sample of the more than 130 million residential housing units released recently by the U.S. Department of Housing and Urban Development.

There are 130,112,000 residential housing units in the U.S.; 86% of these are occupied. The median age of 'the American home' is 36 years, though the survey finds that homes newly constructed since the 2007 AHS are generally larger, more expensive, have more bedrooms and bathrooms and are more likely to include amenities such as central air conditioning. Some of the other key findings of the 2009 AHS include: 68% of U.S. homes are owner-occupied; 51% are located in suburban areas; 29% in central cities; and 20% outside metropolitan areas; and 18% are located in the Northeast; 23% in the Midwest; 37% in the South; and 22% in the West.

Unit size
-The median size of an occupied home is 1,800 square feet (compared to 1,610 in 1985, the earliest year this information was collected), with owner-occupied units being larger than renter-occupied ones. Newer Homes are also usually larger, with a median size of 2,300 square feet.
-Median lot size for single-family homes, including mobile homes, is 0.27 acres (compared to 0.36 acres in 1973) with owner-occupied units generally having more land than renter-occupied ones.

Rooms
-Most homes (53%) have six or more rooms, with owner-occupied units generally having more rooms than renter-occupied ones. In 1973, only 39% of homes had six or more rooms. Newly constructed homes generally have more rooms - 65% have six or more rooms.
-Most homes have three or more bedrooms (64% compared to just 48% in 1973). -New homes generally have more bedrooms - 80% of them have three or more bedrooms.
-More than half of U.S. homes (51%) have two or more bathrooms compared to just 19% in 1973. Again new units have more bathrooms, with 89% of them having two or more bathrooms.

Equipment
-All units have a refrigerator and kitchen sink and almost all homes (99%) have a cooking stove or range. Overall, 98% of units have a full kitchen.
-The most commonly used cooking fuel is electricity (60%) followed by piped gas (35%).
-Two-thirds of the homes (66%) have a dishwasher, 51% have a disposal in the kitchen sink and 3% have a trash compactor. New units are more likely to have these amenities.
-More than eight in ten homes have a washing machine (84%) and clothes dryer (81%).
-About two-thirds of U.S. homes (65%) have central air-conditioning and another 21% have window units - new units are more likely to have central air-conditioning (89%). By contrast, only 17% of U.S. homes had central A/C in 1973 although 30% contained window units.
-About nine in 10 homes (93%) reported a smoke detector while 36% reported having a working carbon monoxide detector.

Amenities
-Most homes have a telephone (98%), porch, deck, balcony or patio (85%) and a garage or carport (66%).
-About half (48%) have a separate dining room and three in ten units (30%) report two or more living rooms or recreation rooms.
-About one-third (35%) have a usable fireplace.
-New construction is more likely to have all these amenities.

To see the complete HUD report, click here.

BET YOU CAN'T ANSWER THIS ONE

Which real estate network dominates the Real Estate market???  

Salzman real estate Services, LTD is proud to be an affiliate of Leading Real Estate Companies of the World, the network that is 27% ahead of its closest competitor in sales volume, with nearly one million sales in 2009. Leading RE had 27% of the total home sales market among the top 500 U.S. real estate firms. To see more about Leading RE, click here

If you already knew this, you deserve a reward, so, I will buy you a cup of coffee the next time you stop by the office.

SALES TAX REVENUES ARE UP. THAT'S A GOOD SIGN

The latest figures show city sales tax revenues were up for the eighth month in a row. In their July 16^th report, the city of Colorado Springs reported an increase of 7.16% in sales tax revenues, the second largest increase in 2 ½ years. They also reported that revenues for June 2010 were up 5.65% over June 2009.

The increase in sales tax revenues were attributed to an increase in consumer confidence and spending and the arrival of an additional 3500 troops from Afghanistan at Fort Carson.

The Sales tax revenues help fund our police department, fire department and parks, so the increase will benefit all of us.

WEIGHTS ARE DOWN, THAT'S ALSO A GOOD SIGN

Yesterday, the CBS Sunday Morning Show discussed the problem of obesity in America, and Colorado Springs was boosted in a segment entitled, "Welcome to Thin City".

Colorado was cited as the least obese state in the U.S. and Colorado Springs residents were said to be "the most fit", and more involved in outdoor activities. I do feel guilty, however, that, as I was watching this wonderful story about Colorado fitness, I was sitting on my couch.

To see more about this great PR coverage of our city, click here. If you don't already live here, after you see this story, you'll wish you did.

HERE'S THE TOP 6 PROPERTY VALUE RAISING PROJECTS

Most homeowners enjoy the every project that they have made in their home. They like to add, improve and make changes all over the house for them to live comfortable and pretty satisfied of what they are seeing around. But it isn't all about that because everything that we do in our home can add to its real estate property value.  And when the time comes that you'll be decided to sell your home you will gain get more money out of these projects that you've done.  According to BrokerAgentSocial, here are some of the projects that will help to raise your home value.

Basement Improvements - This is one of the most important remodeling works that you can do in your home. You can improve your basement by finishing, adding flooring, insulation, drywall and lighting. Furthermore, you can transform this into a usable place in a way of adding a living space. A living space will cost you less than adding a whole new room.

Gutters improvement and repairs - If you want your home to be more appealing in its outside looks, gutters should be the first exterior features that you must consider to work on. Gutters repairs and maintenance will protect the rest of the home exterior from water damage. Maintain gutters regularly by patching holes, cleaning of debris that stop water from flowing and making sure that it is always in place and secure. 

A major lawn makeover - the lawn appearance effect the overall value of home that simply means irregular appearance of lawn detracts from the property overall appearance. Getting the lawn in shape is the first step in lawn total makeover. Test the soil to know if what chemicals will help the grass grows healthy and reseed bad areas.

Adding fence around - fence can give you privacy, security, protection and enhance the outside look of your home.  But before you start this outdoor home project of yours make sure to check the home owner's association rules if it's allowed. Some neighborhoods don't allow some fencing materials, and rules on how high should be the fence.

Update bathroom fixtures and hardware - Like any other parts of the house, little changes go a long way when it comes to bathroom updates. You can make the bathroom look stylish by just simply replacing the old hardware and fixture. If you are not contented enough of how the way it looks you can replace and upgrade your sink the trendy and modern one.

Replace outdated kitchen appliances with new ones - Many real estate professionals believe that this part of the house should be focused more when it comes to renovation and upgrades.  They believe that simple upgrade to this room will bring back a enormous investment in return. One way of improving your kitchen that could entirely change the overall looks is by upgrading the appliances.

BITS AND PIECES

HOME OWNERS STILL LOVE THEIR HOUSES

Daily real estate News, quoting from a news release from Bankrate.com, tells us that, despite declining home prices, 90 percent of Americans don't regret buying their current home.

Among the 9% who do regret the purchase, most say they are unhappy that they can't sell their home and move elsewhere, or, they can't afford their monthly mortgage payment.

Some 79% of those polled say they have a fixed-rate mortgage. Among those making over $75,000 per year, 90% say they have a fixed-rate mortgage. 

HOME PRICES CONTINUE GAINS OVER 2009

CoreLogic, in its monthly index, states that U.S. home prices, including distressed sales, increased by 2.9% compared to the same month last year.

May was the fourth straight month prices showed a year-over-year increase.

"Home price appreciation stabilized as home buyer tax credit sales peaked in late spring", says Mark Fleming, chief economist for CoreLogic. "But, given that the labor market and income growth remain tepid, we expect prices to moderate and possibly decline the rest of the 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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

She spent the first day packing her belongings into boxes, crates and suitcases.

On the second day, she had the movers come and collect her things.

On the third day, she sat down for the last time at their beautiful
dining room table by candlelight, put on some soft background music, and
feasted on pound of shrimp, a jar of caviar, and a bottle of Chardonnay.

When she had finished, she went into each and every room and deposited
a few half-eaten shrimp shells, dipped in caviar, into the hollow of the
curtain rods. She then cleaned up the kitchen and left.

When the husband returned with his new girlfriend, all was bliss for the first few days. Then slowly, the house began to smell. They tried everything; cleaning and mopping and airing the place out. Vents were checked for dead rodents, and carpets were steam cleaned. Air fresheners were hung everywhere.

Exterminators were brought in to set off gas canisters, during which they had to move out for a few days, and in the end they even paid to replace the expensive wool carpeting.

Nothing worked. People stopped coming over to visit... Repairmen refused to work in the house....The maid quit...

Finally, they could not take the stench any longer and decided to move.

A month later, even though they had cut their price in half, they could not find a buyer for their stinky house. Word got out, and eventually, even the local Realtors refused to return their calls.

Finally, they had to borrow a huge sum of money from the bank to purchase a new place.

The ex-wife called the man, and told him that she missed her old home terribly, and would be willing to reduce her divorce settlement in exchange for getting the house back...

Knowing his ex-wife had no idea about the bad smell problem, he offered to sell the house to her for about 1/10th of what the house had been worth .. but only if she would sign the papers that very day. She agreed, and within the hour, his lawyers delivered the paperwork.

A week later, the man and his new girlfriend stood smirking as they watched the moving company pack everything to take to their new home.......

including the curtain rods!!! 

July 12, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LOCALLY, HERE'S SOME GOOD NEWS, FOR A CHANGE

On July 11, 2010, the Gazette reported the following items: 

• The local unemployment rate has dropped to 8.3% (That's a drop of 21.7%)
• Single-family home permits are up 25%
• New car and truck registrations are up 38.3%
• Taxable retail sales are up 10.2%
• Hotel occupancy rate is up to 68.1%
• Foreclosure filings are down 18.4%

The Gazette also listed some local employers who have announced job openings 

• Everest University Online plans to hire 400 employees during the next 10-24 months
• USAA to add 237 jobs this year
• Affiliated Computer Services to hire 150 employees this year
• PRC to hire 150 sales reps at their local call-center
• Pikes Peak Behavioral Health Group has 38 open positions
• Intelligent Software Solutions to hire up to 30 software engineers
• CareCore National will hire 20 people, in addition to the 51 already hired
• Firstsource Solutions will hire 15 collection representatives
• Braxton Technologies has added 25 people this year and will hire 12 more software engineers
• Infinity Systems Engineering has some openings
• Ace Hardware Retail Support Center has openings
• Comcast has 20 openings at their local call-center

The bottom line is that 4,500 more area residents were employed in May than in January and 1,000 more job openings are scheduled for the coming months. All of these facts indicate that the Colorado Springs area is coming out of the recession and that companies are viewing our area as the place to move and expand.

NATIONALLY, NEWS IS ALSO GETTING BETTER

Realtor Magazine cites a recent survey by relocation.com which indicates that only 1% of their respondents said they were moving because of foreclosure. This compares to their February survey which found that 5% were moving because of foreclosure.

In February, the relocation.com survey found 13% of respondents were moving because of job loss, but in June, only 4% moved for that reason.

In the June survey, 4% said they planned to purchase a first home when they moved, while 10% said they planned to move to a better home in a nicer neighborhood.

Some 18% of June movers were previous homeowners who moved and were purchasing a new home, up from 12% in February, while 12 % were former renters who planned to purchase a home in the new locale.

All of these numbers demonstrate that the country is recovering from the recession.

GLOBAL INTEREST IN U.S. HOMEOWNERSHIP GROWS

International home buyers are increasingly attracted to property in the U.S., according to the National Association of Realtors. International buyers are coming from 53 different countries around the world, with the top 4 being Canada, Mexico, the U.K. and China/Hong Kong. International buyers were reported in 39 states in 2010, but a slight majority of the total buyers were concentrated in Florida, California, Arizona and Texas. These four states accounted for 53% of purchases and have remained the top destinations for the past three years, with Florida and California remaining the top two destinations.

The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009's median price of $247,100. However, the median price paid by foreign buyers was significantly higher than the overall median price, which was $172,500 in 2009. On average, foreign buyers tend to purchase closer to the upper end of the market; 16% of the total international purchases were for homes priced at more than $500,000.

55% of foreign buyers paid all cash, because of the difficulty in establishing credit in the U.S. Over 34% of potential foreign buyers were unable to complete transactions because of the problem of acquiring financing.

During the past 12 months, foreign buyers are estimated to have purchased $66 billion of U.S. residential property, or 7% of the residential market.

Realtors report that the changes in the value of the U.S. dollar and the perception that purchasing a home in the U.S. is more affordable are the two top reasons for the increased foreign interest. U.S. homes are also seen as holding their value better.

LATEST LOCAL STATISTICS LOOK GREAT !!!

Local home sales in June were 913, an increase of 4.6% over June of 2009. This represents a consistent year-over-year increase for 13 straight months. The median price of $205,000 showed a gain of 5.4% over last June and rose above $200,000 for the first time in 2 years. How many other cities can show that kind of growth?

Unfortunately, these very healthy figures will probably produce a temporary decline in prices in the months ahead. Sellers, encouraged by the increases in sales and prices, are putting their homes back on the market and many other Homeowners, for a variety of reasons, must relocate during the summer months. Both of these groups will add to the available inventory and this will predictably trigger a short-term price decline. The result will be that Sellers will be required to be very aggressive with the pricing of their homes. This means more flexibility in their pricing and more incentives to Buyers.

That's just one more piece of good news for Buyers. Combine record-low interest rates, the growing inventory of homes for sale, the artificial reduction of prices caused by foreclosures and short-sales and Buyers will have the opportunity of a lifetime to buy their new home or their investment property. You can hear more about this topic on our podcast, which has a link at the top of this email.2 

Click here to see the most recent real estate sales and listing statistics for the Pikes Peak area.

WOULD YOU BE BETTER OFF BY REFINANCING AND REINVESTING?

Considering the present cost of money and the fact that inflation is definitely coming, many Homeowners are considering borrowing against the equity in their homes and investing the money in residential real estate. Obviously, each person's financial situation and goals are different, but, looming inflation, current interest rates and your own specific tax bracket could combine to present a once-in-a-lifetime opportunity to increase the value of your portfolio with free money.

Let's take one example of how present conditions could work together to benefit an individual. Assuming a new, fixed-rate, 30-year mortgage at 4.375% and a tax bracket of 28%, the Homebuyer's tax deduction of 28% off of the 4.375% interest payments would bring the actual interest expense down to 3.15% (4.375 X .28 = 1.225% savings). Therefore, when (Note: That's not "if") inflation hits 3.15%, the investor's interest expense would be cancelled out by the appreciation in the value of the property. From then on, it's "free" money.

By the way, inflation is currently running at less than 1%. When the impact of congressional spending increases begins to hit the economy, inflation is bound to skyrocket (Can you say, "Jimmy Carter"?)

Can this investment plan apply to you? Well, the first thing you should do is to ask your accountant or tax advisor how this process would affect your investment portfolio. If he/she agrees that you could profit from this opportunity, call us. We would be happy to go over the numbers with you in more detail and we can show you some great properties.

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 37 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, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

On her recent visit to the United States, the Queen of England was riding in a taxicab in New York City. The cab was stopped in a traffic jam, so the driver, in an attempt to keep the Queen from being bored, said, "Your Highness, would you like to hear a riddle?"

The Queen answered, "That would be very pleasant, young man. Tell me the riddle"

Cabdriver:         "Here's the riddle, Ma'am.  'It's not my Sister. It's not my Brother. And yet, it's the child of my father and mother. Who is it??"

The Queen:       "My word, that's really a puzzler. I can't figure it out. It's not your brother or sister, but it's the child of your parents. Who is it, young man?"

Cabdriver:         "It's Me, Your Highness"

The Queen laughed out loud and slapped her knee. "That's really very clever, young man", she said. "I must remember to tell that one when I get back home"

The Queen returned to England and, that evening, was sitting in the Royal palace. She remembered the riddle and thought she would see if the Prince could figure it out.

The Queen:       "I say, Phillip. Those colonials are so clever. One of them told me this riddle and it's really quite amusing.

The Prince:        Fire away, Mum

The Queen:       "Here's the riddle, Poopsie.

 'It's not my Sister. It's not my Brother. And yet, it's the child of my father and mother. Who is it??"

The Prince thought for a while and finally said, "Well, that's really very confusing. I can't understand who it could be. Who is it?"

The Queen laughed and slapped her knee and replied, "It's a cabdriver in New York City"