Real Estate Information

HARRY'S COLUMN 

TWO GOOD REASONS FOR BUYING YOUR HOME RIGHT NOW

1. The Federal Tax Credit of $8000 for First Time Home Buyers ($6500 for Home Owners) is, essentially, a discount on the price of your new home. 

2. The El Paso County Bond Program which was announced last week offers 30 year, 4.625% fixed rate mortgages to qualified Buyers who do not need down-payment assistance. This is a below-market rate. These Bond Program loans are available for homes throughout El Paso County, including the City of Colorado Springs. This is a great opportunity to lock in a very attractive loan on your new home.

To be eligible for these Bond Program loans, Borrowers cannot have owned a home in the past 3 years, unless they are purchasing a home within a "Targeted Area". (Targeted Areas are census tracts designated by the IRS and will be specifically identified in the Agreement.) Note that Qualified Veterans are exempted from the First-time homebuyer requirements.

The maximum family incomes that qualify for these loans are:

For families of 2 or fewer, $71,000, if buying within Non-Targeted areas, or, $85,200, if buying in a Targeted area.

For families of 3 or more, $81,650, if buying within Non-Targeted areas, or, $99,400, if buying in Targeted areas.

To be eligible, a family home must have a maximum acquisition cost of $283,000 in Non-Targeted areas, or $ 347,000 in a Targeted area.

This program will be excellent for Veterans who do not need assistance with their down-payment and the seller can pay all closing costs and prepaids, allowing the Vets to buy with no cash out-of-pocket. It is also great program for FHA borrowers who have their own down payment or who can get a gift from relatives.

Families which need assistance with the down-payment are also eligible for this program, but the interest rate goes up to 5.125%. This is still a below-market rate.

If you have any questions about this new El Paso County Bond Program, or about the Federal Tax Credit for Homebuyers, please give me a call.

Who says there is no Santa Claus?

A TEN YEAR OVERVIEW OF YOUR INVESTMENTS ...WHAT'S THE BOTTOM LINE ??

Everyone has an investment strategy. Some people play the stock market, some people play the ponies, some keep their money in a shoe box under the bed. Over the past ten years, however, the best investment by far has turned out to be Residential real estate.

During the last ten years, if you kept your money in a shoe box, it would not have grown at all (in fact, with inflation, it would now be worth much less than it was when you put it under the bed). If you played the ponies, we'll bet you ten to one that you lost money. But, the really bad news is that, according to the Wall Street Journal (Jan. 4, 2010), if you played the stock market, you also lost money. In fact, according to their summary of the last ten years of stock market changes, the shoe-box strategy might even look good.

WSJ reports that, over the past ten years, the Dow Jones Industrial Average has gone down 9.3%. The Standard and Poor 500 has gone down 24.1% and the Nasdaq Composite has gone down 44.2%. What an unpleasant surprise !!! Just think about the hours you spent studying the market and talking to your Broker, the charts you have pored over and the sleep you have lost trying to increase the value of your investments. And it turns out you would have been money ahead if you had just bought a house in Colorado Springs.

During the past ten years, while their owners were knocking themselves out, trying to make a profit, their houses just sat there, increasing in value. In fact, during the past ten years, the average price of a house in the Pikes Peak area has increased $32,976 (18.21%) and the median price has increased $49,960 (35.69%). Whoda thunk it?

Don't let the next ten years pass you by. Buy your first Colorado Springs home now, or, trade up to your dream home today. It's your best investment !!!

NOW HERE'S THE WAY STIMULUS MONEY IS SUPPOSED TO WORK

Connecticut Governor M. Jodi Reil gets our award for putting Stimulus money to productive use. The Governor persuaded Starwood Hotels & Resorts Worldwide to relocate their corporate headquarters from New York to Connecticut. Starwood owns several hotel brands, including the Sheraton, the Westin and W hotels. Their headquarters employs 800 largely executive-level jobs.

Governor Reil used $35 million of federal stimulus money to pay for infrastructure improvements at the selected site and Starwood agreed to lease 250,000 square feet of office space. As part of the incentive package, Starwood was offered a $89.5 million package, which included a $9.5 million low-interest loan, $5 million in sales tax relief and as much as $75 million in tax credits. As a result of this forward-thinking proposal, the Governor has succeeded in creating hundreds of new businesses and new jobs. The 80 acre Starwood site will include a city park, the headquarters of Pitney-Bowes, a boardwalk and a marina, two hotels, three new office buildings and 400,000 square feet of retail space and is scheduled to open in 2012.

Despite a weak economy, Governor Reid has demonstrated that cities and states can attract good primary jobs by wisely investing stimulus money, incentives and tax credits.

Way to go, Governor Reil !!   Bill, please take note !!      

HARRY’S COLUMN

HAPPY NEW YEAR !!!!!

COLORADO NOW OFFERS INNOVATION INVESTMENT TAX CREDIT

The Colorado Innovation Investment Tax Credit provides a state income tax credit for qualified investors who make investments during calendar year 2010 in small, qualified Colorado businesses involved in research and development or manufacturing of new technologies, products or processes. This program is administered by the Colorado Office of Economic Development and International Trade (OEDIT). The program is aimed at stimulating investment in innovative small businesses. For more information, contact OEDIT in Denver.

COLORADO SPRINGS IS RECOVERING FROM THE RECESSION

The December 19 issue of The Gazette reports that “the unemployment rate in Colorado Springs fell to 7.4%, the lowest level of the year”. Compared to the national unemployment rate of 10.4%, this would indicate that our local economy is 30% better off than the rest of the country.

The Gazette article goes on to point out that “most of the indicators, unemployment, sales tax collections, housing construction and sales show that the steep decline the local economy has experienced since 2007 is over”.

Although the article goes on to caution us that it will be a couple of years before we see a complete recovery, this is great news for all of us.

NAR PREDICTS A RISE IN HOME PRICES

The National Association of Realtors is predicting that 2010 will see an increase in the average price of homes. In 2008, the average home price was $198,100, which represented a decline of 9.5% from the previous year. In 2009, the average price went down again, to $172,600, a decline of 12.9%. However, for 2010, NAR is predicting an average home price of $178,800, which will be an increase of 3.6% over 2009. As the economy continues to improve, this increase in home prices is inevitable. Combine this increase in home value with the inflation that all of the experts are predicting, and your real estate investment is obviously your best vehicle for preserving and growing the value of your estate. And don’t forget that the recently extended and expanded federal tax credit for home buyers represents another incentive for buying a home now. Call me !!!

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. 

FIRST ANNUAL SALZMAN OPINION SURVEY  

We read a lot about the various national polls that are supposed to tell us what people are thinking. Many times, it seems that these polls don’t reflect what our friends and business associates are saying. So….we are starting an annual poll of what the readers of this enewsletter are thinking. Please reply to the following question and we will publish the results in our next enewsletter.

1. What do you expect the economy to look like in 2010 ? 

            a. A lot better than 2009

            b. A little better than 2009

            c. About the same as 2009

            d. A little worse than 2009

            e. A lot worse than 2009

JOKE OF THE WEEK

A New Year Prayer for the Elderly

God, grant me the senility to forget the people I never liked anyway,
The good fortune to run into the ones that I do, … And the eyesight to tell the difference

Dieting - New Resolutions

2006: I will get my weight down below 180 pounds.
2007: I will follow my new diet religiously until I get below 200 pounds.
2008: I will develop a realistic attitude about my weight.
2009: I will work out 3 days a week.
2010: I will try to drive past a gym at least once a week.

New Year's Day Prayer for One and All

Dear Lord

So far this year I've done well.

I haven't gossiped, I haven't lost my temper. I haven't been greedy, grumpy, nasty, selfish, or overindulgent. I'm very proud of that.  But in a few minutes, Lord, I'm going to get out of bed for the first time in 2010, and from then on I'm probably going to need a lot more help.

Amen

HARRY’S COLUMN

WANT A HOT STOCK TIP?

If a friend recommends a stock to you, before you add it to your portfolio, the first thing you should do is to look at how the stock compares with other comparable stocks. What’s its history? What factors will affect its future performance? Does it represent a good value today and does it have a good potential for growth tomorrow?

O.K. Let’s pretend that your friend has recommended that you buy “stock” in Colorado Springs and let’s pretend that you are evaluating Colorado Springs as you would examine a publically-owned company as a potential investment. How does this community compare to the other cities that you might want to invest in? Here are some of the areas in which Colorado Springs stands out:

1. Our local unemployment rate is 7.2%, as opposed to the national rate of 10% …That’s 28% better than the rest of the country.

2. We are listed in all national surveys, such as Forbes and Money Magazine, as one of the top ten cities for quickest recovery from the recession.

3. According to the Consumer Price Index, we have a cost of living that is 5-8% lower than the national average.

4. The strong, military presence in our local economy provides a stable, reliable source of income and tax revenues. Furthermore, the scheduled addition of thousands of new troops into Fort Carson during the coming years will be a tremendous boost to our economy in the form of increased home sales, retail sales and tax revenues.

5. Our local workforce is skilled and well-educated (Our SAT and ACT scores are outstanding)

So, you would have to conclude that buying stock in Colorado Springs represents a great investment opportunity, right now and for the long haul.

And, to take this process one step further, if you are a potential Homeowner or a potential Investor, consider that home prices are now very attractive, interest rates are at an all-time low and the Federal Tax Credit which is now available to both First-Time and Repeat Home Buyers is just icing on the cake.

To sum it all up, considering all of the above, if this were a stock tip, you would be rushing to add it to your portfolio.

The moral of the story is: BETTER BUY NOW !!!

BROOKINGS SURVEY SHOWS COLORADO SPRINGS LOOKS GOOD    

The non-profit Brookings Institution, in partnership with the University of Nevada, has issued the Mountain Monitor, the first in a series of quarterly reports on the economic recovery in Colorado, Arizona, Idaho, Nevada, New Mexico and Utah. According to the report, “Colorado Springs weathered the downturn better than the average U.S metro”.

 Some of the highlights of the report are:

 Between Sept. 2008 and Sept. 2009, Colorado Springs jobless rate rose only 1.6%, the fifth-best nationally.

Among the 10 largest metro areas, only Colorado Springs and Denver registered year-over-year increases in home prices by the end of the third quarter, primarily because they were not heavily involved in the excessive real estate speculation that caused the bursting of the housing bubble in some other cities.

The report goes on to state, “…Colorado Springs has weathered the recession significantly better than other Mountain metros on almost every measure” and our city “seems poised to renew its upward trajectory as the pace of recovery quickens”.

NEW MORTGAGE SECURITY GUIDELINES PROPOSED

The Federal Housing Administration is reportedly about to announce that the minimum down payment requirement for FHA loans will be raised from 3.5% to 5%. In addition, the monthly FHA mortgage insurance premium is scheduled to increase and the “FICO” score required for Borrowers’ credit worthiness will also increase. We will keep you advised about this issue, as more is announced.

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 Devil appears to a Congressman and says, “Look, I can make you rich and famous, guarantee your re-election and make you the darling of the media.”

“Well,” says the Congressman, “what do I have to do in return?”

The Devil smiles, “Well, of course you have to give me your soul,” he says, “but you also have to give me the souls of your children, the souls of your children’s children and, as a matter of fact, you have to give me the souls of all your constituents throughout eternity.”

“OK” the Congressman says cautiously, “What’s the catch?”

HARRY'S COLUMN

WE COULDN'T HAVE SAID IT ANY BETTER - BUSINESS WEEK SAYS, "BUY NOW" !!!

In a Business Week article of Dec. 8, 2009, Marc Roth, the founder and president of Home Warranty of America, dramatically made the following point. "If you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates."

As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That is the lowest the rate has been in nearly 40 years and should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.

A BRIEF OVERVIEW OF INTEREST RATE HISTORY

In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers. But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward. For more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home. Typically, for a $200,000 mortgage, if the homeowner were to keep the home for 30 years, each quarter-point move up in interest rates would cost that buyer $12,000.

Loan Costs

Stay with me now. We are at 5%. As the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.

Let's put that into perspective. You have a good stable job (yes, unemployment is at 10% nationally, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,000 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is "more stable" and it's safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes over the course of the loan, between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$600,000 home price range, and many people out there are, then you're borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

THE WALL STREET JOURNAL DEFINES THE AMERICAN DREAM 2:

DEFAULT ON MORTGAGE, THEN RENT

In the Dec. 10 issue of the Wall Street Journal, Mark Whitehouse describes the trend that is now becoming common throughout the country. Homeowners who face large mortgage payments for homes which are no longer worth what they paid for them, and whose income has been curtailed or eliminated by the recession, are walking away from their homes and are becoming renters. This creates a wonderful opportunity for prospective investors.

The article cites one homeowner whose monthly payments on his mortgage were $4,800. He short-sold his home and is now renting in the same neighborhood, for $2,200 a month. "I don't know if I'll buy another house again, because it's such a huge headache", he says.

Although this trend represents a very difficult adjustment for the homeowners and the lenders involved, it represents a wonderful opportunity for investors. These former home-owners are accustomed to living in good homes in good neighborhoods and have good renter profiles. Every one of them who walks away from their home puts another, well-maintained property on the market at a selling price that is very attractive to investors. Furthermore, these former-homeowners become the investor's next renters.

As a result of this trend, the pool of prospective renters has grown, thus creating an opportunity for smart investors to profit. Please call us, if you would like to discuss how investment property might help you attain your financial goals. We know the local market and are experts in investment property. We would be pleased to discuss this with you.

LATEST STATISTICS

Each week, we publish a link to our latest local Sales and Listing statistics. We should probably take a few minutes to discuss the relative strength of our local real estate market, based upon these statistics. The highlights of the latest statistics are:

                                         Nov. 2008         Nov.2009                    

Total Number of MLS Sales       499                   794                          

Average Sales  Price             $213,466              $214,062                                  

Median Sales Price                $187,000              $187,950                      

Note that the increase of 295 home sales from November of 2008 vs. November of 2009 represents an increase of +59.1% in MLS Sales. Also note that both the median price and the average price for homes in our area have stabilized; indicating that we have started to recover from the recession and real estate prices are on their way back up.

The statistics also list 28 statistical areas within the Pikes Peak area, plus Fremont, Lincoln, Park, Pueblo and Teller Counties.

Perhaps the most important numbers in the report are "SP/LP" (The relationship between the Selling Price and the Listing Price). This report shows that, as of November, 2009, the overall average of total sales prices were 97.4% of the list prices. This is a very strong relationship and a good indication that our local market is not as soft as the national market.

If you would like to discuss the local statistics in more detail, please give me a call.

POTPOURRI

COLORADO SPRINGS COST OF LIVING LOOKS GOOD

The latest statistics released by the Arlington-based Council for Community and Economic Research shows Colorado Springs's cost of living at 7.6% below the national average at the end of the third quarter of 2009. This is near the lowest level of the past 20 years. The index compares prices for 57 goods and services bought by households headed by middle managers.

According to Fred Crowley, senior economist for the Southern Colorado Economic Council, the latest figures indicate that the local economy has bottomed out and has begun to recover from the Recession.

Among other cities in the state, living costs in Boulder were 26.4% above the national average and Denver was 4.3% above the national average.

QUARTERLY UCCS STATISTICS ON LOCAL ECONOMY NOW AVAILABLE

The Quarterly Update on the El Paso County Economy as of September, 2009, issued by the College of Business and Administration at the University of Colorado at Colorado Springs has just been issued. Please give us a call and we will be happy to send a copy to you.

PAUL SAMUELSON DIES

Paul Samuelson, whose analytical work laid the foundation for modern economics, died Sunday in Belmont MA, after a brief illness. He was 94. His textbook, "Economics" which was published in 1948 and which was the most widely used college textbook on any topic, is still in use. Anyone, like me, who has suffered through Economics 101 has been influenced by that text. Mr. Samuelson's nephew, Lawrence Summers, currently runs President Obama's National Economic Council.

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.

HARRY’S COLUMN

HARRY’S PREDICTION FOR 2010 – (NOSTRADAMUS, LOOK OUT !!)

Like politics, all real estate is local. That’s why our annual prediction emphasizes the Colorado Springs economy, not the national picture. With that in mind, let’s review some of the factors that will affect our local Real Estate during the coming year:

1.       According to the Southern Colorado Economic Forum, the Colorado Springs unemployment rate is now 7.2%, as opposed to the national unemployment rate of 10%. Those figures demonstrate that the Colorado Springs area is now 28% better off than the rest of the country.

2.       Our local real estate Market is outperforming the national market.  Just last week, the Pikes Peak Association of Realtors (PPAR) announced that single-family home sales in November, 2009 totaled 794 (compared to 497 in November, 2008).  It was the biggest percentage gain in monthly home sales in the 15 years since PPAR began to keep records.

3.       Another, very significant NAR statistic from November of 2009 is that the median price for sold- homes in Colorado Springs was $187,950. The comparable number from 2008 was $187,000.This is a very persuasive indication that our local market has ‘bottomed-out’ and we are looking at a growing market in 2010. 

4.       With the extension and expansion of the First-Time-Home-Buyers’ tax credit, the government gives up to $8000 to first-time Buyers and up to $6500 to repeat Buyers, if they go under contract by April 30, 2010 and close by June 30, 2010. This is one of the reasons our local housing industry is poised to show growth in 2010. Call us to discuss the details of how the Home Buyers’ tax credit might help you.

5.       We are communicating with several hundred prospective buyers who are waiting for “Something to happen” to give them a more secure feeling about buying a home. In addition, Gen Y families (born 1977-94) are now at their peak time for buying their first home. This huge group of young adults is marrying and having children. In fact, many of these prospective home buyers are just waiting for the ‘trigger’ that will nudge them buy (e.g. finding a new job, having  a ‘trailing spouse’ find a job, waiting for their present house to sell or close, choosing the best school for their children, etc.) As these prospective homeowners begin to make their move, our local market is poised to really prosper.

6.       The present low interest rates for 30 year fixed-rate mortgages can’t stay low too much longer. When the looming inflation begins to raise these very favorable rates, the mortgage you get today will look like gold. An interest rate increase of even 1% takes many prospective Buyers out of the market.

7.       Building permits are up. Elected officials who are worried about declining revenues should keep in mind that every new home built generates between $6000 and $10,000 of sales tax revenue.

8.       Our inventory of homes for sale is declining. In November of 2008, there were 5547 homes for sale. In November of 2009, there 4301 homes for sale, a decline of 22.5%.

Add all of these factors together and it leads me to my prediction for 2010. !!

NOW IS THE TIME TO BUY !!

FHA CONSIDERING TIGHTER REGULATIONS

If you needed another reason to buy now, consider that the Federal Housing Authority is about to make buying a home more difficult. Because FHA reserves are dwindling, that agency is considering implementing the following ‘improvements’ to the present regulations:

1. Increasing the annual mortgage insurance premium that borrowers have

     to pay.

2. Increasing minimum down payment for FHA loans.

3. Setting a minimum credit score for all borrowers

4. Reducing amount that sellers can provide towards buyers’ closing costs from

    6% to 3%

For prospective homebuyers, the two rays of hope relating to these proposed changes are that they haven’t been approved yet and, if approved, it will take some time to implement them. 

KEEP TRACK OF YOUR MILEAGE – THE RULES HAVE CHANGED

The IRS has announced new standard mileage rates for use of an automobile in business or moving beginning January 1, 2010. According to the IRS, these new, reduced rates are based upon the fact that the costs for operating a vehicle have gone down since last year. The new rates are 50. per mile (down from .55 per mile) for business and 16.5 per mile for relocation (down from 24 per mile  ..This is the lowest rate since 2005).

JOKE OF THE MONTH

As he’s driving through the woods, a guy has a flat tire. He stops, jacks up the car, takes off the wheel lug nuts, puts them in the hubcap and is getting the spare out of the trunk, when another car speeds by, hits the hubcap and scatters the lug nuts into the woods.  

After an hour of unsuccessful searching, the guy decides he might as well start walking the ten miles to town to buy some new lug nuts.  As he starts walking, he hears a voice say, “Hey, why don’t you just take one nut from each of the other three wheels, attach the spare tire with them and then drive to town?”

The guy looks around to see who is talking and sees a man looking at him through a chain link fence. A sign on the fence reads,” State Institution for the Insane”.

The guy says, “Hey, that’s a great idea. How did a smart man like you end up in there?”

The man behind the fence says, “Hey, I’m crazy, but I’m not stupid”.

And the moral for our times is ???????

HARRY'S COLUMN

10 QUESTIONS ON THE VOLATILE housing market

Between January 2000 and April 2006, the national average home price nearly doubled. Since then, the average has fallen about 30%. (In Las Vegas, the average has fallen 53% and in Miami, about 39%, where almost ¼ of mortgage holders are delinquent in their payments or are in foreclosure). As the Wall Street Journal points out (Nov. 17, 2009), the value of your home might be determined more by whether your neighbors keep their jobs than by whether your house has ample closet space. The Journal goes on to list ten points you should consider if you are thinking of selling your home:

1. Is the housing market getting better?

High-end houses are a glut on the market. Fewer jobs and more foreclosures could keep all home prices low for a while.

2. When will housing bottom out?

It depends upon where you live. In the Virginia suburbs near Washington D.C., prices are already going up. In Florida, unsold condos will probably take years to sell.

3. What signals should I look for to determine whether my local market is improving?

One way is to measure the inventory of homes for sale. Over six months of inventory usually means prices are still going down. Give us a call and we will be happy to discuss inventories, prices in various neighborhoods and what your best course of action might be.

4. How can I figure out the value of my home?

 Call us.

5. Does it matter whether I am "under water"?

About 20% of owners of single-family homes with mortgages owe more than their homes will sell for on today's market. Your options: Stay put until the market comes back (You won't be able to get refinancing).Sell at a loss ..Walk away and take the consequences. Again, call us.

6. If I lose my home to foreclosure, how long will it take to repair my credit record?

It will be on your record for seven years, but you might be able to get another mortgage in three to five years.

7. If I'm renting, is now a good time to buy a house?

Rents are low now and should stay that way for a while, however, this is a great time to buy your home. Low mortgage-interest rates, low house prices and government tax credits are all good arguments to make your move. Give us a call and we can review your options.

8. Can I get a tax credit if I buy now?

You can, if you sign a contract by April 30, 2010 and close by June 30 and meet the requirements of the new tax credit. Give us a call and we can verify if you are eligible and we will walk you through the process.

9. Can I get a mortgage on attractive terms?

Maybe. Give us a call, answer a few questions and we will be able to give you a good idea of what you qualify for.

10. Should I invest in foreclosed homes?

Probably not. To quote the Journal, "This is a pursuit best left to people with a lot of time, nerve, cash and knowledge of the local market."

We are fortunate to live in the Pikes Peak area, where our unemployment rate is around 2% better then the national average. As a result, our housing market is much better than it is in most other areas of the country.

HOW ARE WE DOING? LOOK AT SALES TAX REVENUES

According to the Gazette, Colorado Springs sales-tax collections in October were the highest since January and saw the smallest year-to-year percentage decline since May of 2008. It's encouraging that September sales tax revenue was down only 0.82% from 2008. To give some examples of how consumer spending is going, here are some significant sales tax figures from October, 2009:

Some increases:

Clothing                           +30.5%

Groceries                         +13.0%

Department stores            +  8.0%

Some decreases             

Furniture, appliances        -27.8%

Building materials             -15.4%

Fred Crowley, Chief Economist for the Southern Colorado Economic Forum, said the numbers are exactly what would be expected as the region begins to emerge from the recession and consumers stop postponing purchases and start breaking out their wallets. "These are the things that come out of it first - the essentials. At some point, everything wears out. All of the economic indicators say that we're at the bottom and we're on the slow path toward recovery"

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. 

HARRY’S COLUMN

THE COMING YEAR LOOKS GOOD FOR COLORADO SPRINGS real estate

 As we have mentioned in previous issues, the August issue of Forbes Magazine named Colorado Springs as one of the top three cities in the nation for housing recovery. As evidence that Forbes’ prediction is accurate, at the recent Southern Colorado Economic Forum, the University of Colorado in Colorado Springs School of Business analyzed 58 distinct local economic indicators, all of which pointed to the fact that our local economy is well on the road to recovery from the recession.

At the national level, Lawrence Yun, Chief Economist for NAR, speaking at the recent NAR Convention, indicated that home prices should show modest growth in 2010, after the worst downturn since the Great Depression. Prices should climb about 4% in 2010, compared to a projected decline of 13% during 2009.

Mr. Yun also predicted a 38% increase in new home sales in 2010. This should be very encouraging news to city planners, since every new home sold generates a significant amount of sales tax revenue. In Colorado Springs, for example, every new home sold contributes approximately $8000 in sales tax revenue. The recent Southern Colorado Economic Forum predicts an increase of 250 single-family home permits in Colorado Springs in 2010. This translates into additional sales tax revenues of $2 million and doesn’t even include the additional revenues from commercial and multi-family permits.

During the coming year, NAR also predicted that mortgage interest rates in 2010 will rise by .75% - 1% (Today, we can still obtain 30 year fixed rates of 5%) and that foreclosures should peak in the first half of 2010. To put all this into perspective, it means that the $250,000 home you are considering buying today will probably cost you $260,000 next year. And, considering the predicted .75% rise in interest rates, the monthly payment on that home will be approximately $165 more per month next year than it would be today.

 And finally, to add just one more incentive to buy now, remember that, if you delay signing a contract on that new home beyond May 1, 2010, you will lose out on the tax credit that Congress has just extended and expanded (See the article on the Homebuyers Tax Credit, below).

Bottom line ……Call me !!!

 By the way, if you are located out of this area and are considering moving into the Pikes Peak region, but are in need of some assistance in selling your present home, please remember that we specialize in relocation assistance, including the marketing of your present home. We would be happy to assist you with all of the various tasks involved in relocating.   

HOME BUYERS’ TAX CREDIT EXTENDED AND EXPANDED

 The big news this week is that Congress has extended the First-time Home Buyers tax credit and has also expanded the program to include repeat buyers. Click here to see the details of this very significant government program. It might be just the ticket to get you into that new home.

THIRD QUARTER STATISTICS ON HOME PRICES NOW AVAILABLE

 The National Association of Realtors has just released the sales price statistics for the third quarter of 2009. The report shows that the median sales price of existing single-family homes in the 153 metropolitan areas represented in the survey declined 11.2%, compared to the third quarter of 2008. The good news is that, in Colorado Springs, the decline was only 6.2% over the same period. This is another indication that our local economy has turned the corner and we are well on our way back to recovery. If you would like to discuss the specific numbers for your city, please give us a call.    

GET MAXIMUM EXPOSURE FOR YOUR LISTING ON LISTHUB

We are pleased with the response from our Sellers to our recent affiliation with ListHub. This new relationship enables us to promote our listings on a wide variety of real estate websites and give maximum internet exposure to our clients’ listings. To see the various sites on which our listings will now appear, 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. 

Finally, if you would like any of your business associates to receive these newsletters, please send us their email addresses and we will add them to our subscriber list. Thank you.

JOKE OF THE WEEK

 The Three Sons and the Parrot

Three sons left home, went out on their own and prospered. Getting back together, they discussed the gifts they were able to give their elderly Mother.

The first said, "I built a big house for our Mother."

The second said, "I sent her a Mercedes with a driver."

The third smiled and said, "I've got you both beat. You remember how Mom enjoyed reading the Bible? And you know she can't see very well any more. I sent her a remarkable parrot that recites the entire Bible. It took Elders in the church 12 years to teach him. He's one of a kind. Mama just has to name the chapter and verse, and the parrot recites it."

Soon thereafter, Mom sent out her letters of thanks:

"Milton," she wrote one son, "the house you built is so huge. I live in only one room, but I have to clean the whole house."

"Gerald," she wrote to another, "I am too old to travel any more. My eyesight isn't what it used to be. I stay most of the time at home, so I rarely use the Mercedes. And the driver is so rude!"

"Dearest Donald," she wrote to her third son, "you have the good sense to know what your Mother likes. The chicken was delicious!"

The third son replied. “Mama, how could you have eaten that valuable parrot? He knew how to recite the entire bible.”

His mother replied, “Well, if he was that smart, he should have said something”

HARRY'S COLUMN

THIS IS THE FIRST ANNUAL "GOOD NEWS - BAD NEWS" ISSUE

FIRST, THE GOOD NEWS -

HOME SALES RISE

The National Association of Realtors has announced that pending home sales rose again in September, marking eight consecutive monthly gains - the longest streak since measurement began in 2001.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in September 2009, rose 6.1% to 110.1 from a reading of 103.8 in August, and is 21.2% higher than September 2008 when it stood at 90.9%. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.

Lawrence Yun, NAR chief economist, said the momentum us understandable. "What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax-credit at the end of the month", he said. "Home values will stabilize sooner rather then over-correcting. That, in turn will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery".

Yun added that strong near-term reports should not be overstated. "We're clearly not out of the woods because an excess of homes remains on the market despite recent improvements", he said. "Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this incoming inventory".

NO SOONER SAID THAN DONE - HOMEBUYER TAX CREDIT EXTENSION AND EXPANSION IS ENACTED

Congress has just extended the tax credit for first-time homebuyers into 2010. In order for the first-time homebuyer to obtain the $8000 tax credit, the property must be under contract by April 30, 2010 and must close by June 30, 2010.

In addition, Move-up buyers can now receive an income tax credit of $6500. This should stimulate home sales and motivate Buyers to "buy-now" and protect themselves against the inevitable inflation that looms ahead.

There is a maximum qualifying price of $800,000. Single individual purchasers can earn up to $125,000 and couples can earn up to $225,000, to qualify for the tax credit.

Robert E. Story Jr., chairman of the Mortgage Bankers Association said in a statement about the extension, "At a time when we are finally starting to see some signs of life in the housing and mortgage markets, extending and expanding the homebuyer tax credit is a critical step to keeping the momentum".

SPRINGS UTILITY BILLS LOWEST IN THE STATE

Colorado Springs homeowners have the lowest utility bills in the state.   

The third quarter 2009 ACCRA Cost of Living Index shows that typical combined electric and natural gas bills in Colorado Springs average $125.20 a month compared to $155.84 for all other Colorado cities. (Denver is highest, with $200.52). Energy bills nationwide average $179.38.

Bill amounts are determined by typical energy consumption in each city and rates in effect in the third quarter of 2009.

The ACCRA Cost of Living Index is produced by the Council for Community and Economic Research, a nonprofit research group.

ARE YOU READY FOR THE COMING INFLATION ?

How can you protect yourself from the inflation that will result from the excessive spending that is occurring at the state and national level? Your best bet is to invest in real estate. The value of your investment will rise right along with inflation, and, considering the low-interest rate mortgage money currently available, buying a home right now is the best way to protect yourself from the inevitable falling value of the dollar. Give me a call and we can discuss our current market.

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. 

NOW FOR THE BAD NEWS !!!

If you own a home, you should be aware of the proposed Bill, H.R. 2454: American Clean Energy and Security Act of 2009  This Act, sometimes referred to as "Cap and Trade", has already been passed by the House of Representatives and will soon be considered by the Senate.

Beginning 1 year after enactment of the Act, you won't be able to sell your home unless you retrofit it to comply with the energy and water efficiency standards of this Act. The CBO estimates that, in just a few years, the average cost to every family of four will be $6,800 per year.

To get permission to sell your home, you will have to have your home inspected by the EPA Administrator (estimated cost for the annual inspection - $200) and retrofit your home to meet whichever standards are not met. (This requirement will apply to mobile homes, as well). There are automatic standards upgrades written into the bill, and, in addition, the Administrator is authorized to upgrade standards as he/she sees fit.

Within five years, 90% of all homes must be measured and "labeled" Unless a current label is affixed to your home in a conspicuous location, you will not be able to sell it.  

True, the Act allows the government to give grants to comply with the retrofit program requirements, but the state can set standards on who qualifies for such grants. Thus, the price of your home and/or your income will probably determine whether you are eligible for such grants. As always, middle class homeowners will have to pay for the retrofits out of their own pockets, as well as subsidizing all those who are exempted from paying.

Regardless of which state you live in, this bill will affect you. We urge you to contact your congressman and senator and urge them to vote "NO" on this proposed bill.

(It would seem that this bill should more appropriately be titled American Clean Energy and Security Act of 1984 !!)

JOKE OF THE WEEK

Doctor: Well, I have good news and bad news.

Patient: Go with the good news first.

Doctor: You have 24 hours to live.

Patient: What?! How about the bad news?

Doctor: I forgot to call you yesterday.

HARRY'S COLUMN

COLORADO SPRINGS IS BOUNCING BACK

This past week, the Colorado Department of Labor and Employment reported that the unemployment rate in Colorado Springs in September had fallen to 7.4%. This is the lowest level of unemployment in 2009 (and for some time). As the experts at the upcoming Southern Colorado Economic Forum are observing, our local economy has bottomed out and the statistics indicate we are starting to recover from the recession.

On October 23, the National Association of Realtors reported that single-family home sales increased 9.4% within the last month. The Gazette put that national data into local context. They pointed out that the 9.4% increase was the largest in 26 years and that current local home resales are up nearly 24% from the national bottom of January, 2009.

Additionally, NAR reported that the national current inventory of unsold homes fell to almost 8%, our lowest level since March of 2007. That 8% represents an 8 month supply of homes for sale nationally.

To explain this inventory figure in more detail, the "Market Absorption Factor" is defined as "the number of months needed to sell current supply, based upon average monthly sales for the past 12 months". In Colorado Springs, the number of listings (4835) divided by the average monthly sales (823) gives us a Market Absorption Factor of 5.87 months. That's significantly better than the national figure of 8 months. In fact, of the 28 major national real estate markets charted by The Wall Street Journal on October 22, 2009, only 6 of the 28 major cities surveyed come close to that figure.   

As always, between the time when a recession is officially "over" and the time when employment returns to normal, businesses have the opportunity to review their investments, repair and remodel their plants, restock their inventory and prepare for the good times. And, because labor and material costs always lag behind a recovery (There are still 22,000 unemployed in the Colorado Springs area), these projects will be less expensive today than they will be next year. How strongly do we feel that recovery is just around the corner? Well, you may have noticed the major exterior remodeling of our office building that was just completed. In other words, we're getting ready for a busy 2010.

Forecasters are predicting a slow recovery, but, we can all start looking forward to better times ahead.

real estate STILL LEADS THE WAY TO RECOVERY

It's an established fact that real estate leads the economy into either good or bad times. In recent months, the First-Time Home Buyers' tax credit has helped lead us out of the recession by stimulating home sales. Experts attribute much of our recovery to the First-Time-Home Buyer tax credit. In recognition of that fact, and in an effort to continue this recovery, the National Association of Home Builders and the National Association of Realtors have joined forces to urge Congress to extend and expand this important tax credit. In full-page ads in the Wall Street Journal, these two organizations point out that, by renewing this soon-to-be-phased-out tax credit, Congress can create 350,000 new jobs, inject more than $28 Billion into the U.S. Economy and generate $12 Billion in additional Tax Revenue. Let's hope the efforts of the NAHB and the NAR are successful and that Congress helps "Put America Back to Work" by renewing this very popular tax credit.

SOUTHERN COLORADO ECONOMIC FORUM

Just another reminder, this Friday, from 7am to 12pm, the Thirteenth Annual Economic Forum will be held at the Antlers Hilton Hotel in downtown Colorado Springs. The keynote speaker will be Eugenio Aleman, Ph.D., Senior Economist of Wells Fargo. Please call us ASAP, or, click on www.SouthernColoradoEconomicForum.com, to reserve your place at this very informative event.

SALZMAN real estate SERVICES GETS INVOLVED IN HEALTH CARE

 While in Chicago attending the ERC conference, we were interviewed by MD Preferred real estate Provider, an internet based physician resource center which matches professional service providers in Real Estate, relocation, Insurance, Legal and Financial Advisory Services with physicians on the move. We have since been notified that Salzman Real Estate Services, Ltd. has been awarded membership in MD Preferred and will serve as their exclusive agent in El Paso and Teller Counties. We will provide relocation services to doctors involved with individual practices, groups, hospitals and clinics. This distinction, awarded to less than 100 national firms by MD Preferred Services, is based upon Salzman's "experience and commitment to serving the unique needs and demands of today's busy physician". We are excited and honored to be selected for this appointment.

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

And God said to Adam,"It is not good for you to be alone, so I will create woman to be a helpmate to you. She will support you in all you do. She will always be cheerful and pleasant. She will laugh at all your jokes, no matter how often you tell them. She will be understanding when you play golf on weekends and when you have too much to drink. She will happily clean your house, cook your meals and pick up after you. And her name will be 'Eve'".

And Adam said, "That sounds great, Lord. But, how much will that cost me ?"

And God replied, "Creating is not cheap. It will cost you an arm and a leg".

And Adam pondered for a while and then asked, "Well, what could I get for, say, a rib?"

HARRY'S COLUMN

SORRY ABOUT THE CANCELLATION

We apologize for the cancellation of our first "Open House with Style" that we announced last week. Due to circumstances beyond our control, we had to call off the event, which had been scheduled for October 24th .But we will be scheduling another one in the near future. Stay tuned !!

CONFIDENCE IN HOUSING VALUES JUMPS

A new Rasmussen Report indicates that Americans are more confident than they have been all year that housing values are going up and are also more likely to say their home is worth more than they owe on it..but they still don't think it's a good time to be selling.

The new national telephone survey report finds that 27% of homeowners say the value of their home is likely to go up over the next year. That's an eight-point jump from August and the highest level of confidence measured this year.

Just 19% say the value of their home is likely to go down in the next year, an eight-point drop from the previous survey. Unchanged is the 49% who expect their home's value to stay about the same.

In the same report, Voters remain closely divided on their opinions of President Obama when it comes to economic issues. While 40% say he is doing a good or excellent job handling those issues, 40% say he is doing a poor job. Still, 55% say the nation's current economic problems are due to the recession that began under President Bush. 37% blame the policies Obama has put in place since taking office. These findings have remained relatively stable since May.

Sixty-two percent (62%) of Voters oppose the passage of another economic stimulus package this year (the effects of which would be felt immediately before the elections of 2010). Sixty-seven percent (67%) are against a national sales tax on all goods and services as a new revenue source for the federal government.

For the first time this year though, Voters are almost evenly divided when asked if the environment can be protected without hurting the nation's economic growth.

CITY INITIATIVE 2C - PPAR SPEAKS OUT

On the upcoming November ballot, City Initiative 2c proposes to raise Colorado Springs' mill levy by 6 mills this year and 1 mill for each of the following four years. The Board of Directors of the Pikes Peak Association of Realtors (PPAR) has issued the following statement regarding this proposed Initiative:

"The Board of Directors of PPAR does not support Initiative 2C. The current economic downturn has undeniably affected all sectors of the economy, including revenue shortfalls for our local governments. While the City of Colorado Springs boasts having some of the lowest property taxes in the Front Range region, the heaviest burden of taxation currently inappropriately impacts our business/commercial sector. The PPAR leadership believes that a property tax increase as currently submitted to the voters of Colorado Springs continues to promote an imbalance of taxation between our residential and commercial sectors."

We have to agree with the Board of Directors of PPAR and we feel that Initiative 2C would create a burden on all the taxpayers in Colorado Springs.

MORE OBSERVATIONS FROM THE WORLDWIDE ERC CONFERENCE

After having had a chance to digest all of the information gleaned from the presentations at the recent relocation Conference in Chicago, it's obvious to me that there was a consensus on several key points:

Corporate relocation activity is down approximately 30%, undoubtedly as a result of the worldwide economic downturn.

Considering the fact that the stock market typically leads the business cycle by 2 quarters, the recent upturn in the market should be a signal to investors to take action in their local real estate markets. There will be an inevitable recovery from this, our worst recession since the Great Depression and the investors who take advantage of the current, low mortgage money, will prosper (Ben Bernacke has put us all on notice that these rates will not last much longer). Today's Real Estate investor should realize an excellent return over the next several years.

Investors who have concentrated exclusively on stocks and bonds would be well served to add real estate to their portfolios.

In general, there was an optimistic view of the real estate market in the near future and I was very glad I attended the conference.

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

For those of you who are parents of grown children, the following might make an interesting email to send to your offsprings:

Dear Son (Daughter):

Here's an easy test to find out who your Role Model is:

1)  Pick your favorite number between 1-9

2)  Multiply by 3

3) Add 3, then multiply again by 3

4) You'll get a 2 or 3 digit number ..

5) Add the digits together

Now, using that number, see who your ROLE MODEL is from the list below:

 1. Einstein

 2. Nelson Mandela

 3. John Wayne

 4. Helen Keller

 5. Bill Gates

 6. Mother Theresa

 7. George Clooney

 8. Thomas Edison

 9. Your Mom (or Dad)

10. Kermit the Frog

I know... I just have that effect on people ... one day you too can be like me...

Mom (or Dad)

P.S. Stop picking different numbers. I am your idol -- just deal with it!