Real Estate Information

 June 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

HOUSING HAS BEEN AND WILL CONTINUE TO BE THE GREATEST FINANCIAL ASSET OF MOST FAMILIES

I’ve been getting a lot of questions as of late as to my thoughts on the Residential real estate market, both nationally and in Colorado Springs.

Those questions most likely stemmed from folks wondering whether home values were going to stay strong and how I figured the mortgage interest rates would affect the same.

My answers to those type of questions have never wavered…no matter the home price or mortgage interest rates.  There are always going to be folks who need to buy and those who need to sell, no matter the current prices or rates. 

Period.

That has not changed in my 51 years of selling Residential real estate and I doubt it ever will.

Yes, home prices have remained high despite all those rumors of a “housing crash”, and I would expect to see them keep rising.  As I’ve written before, the problems in 2008-2011 are not likely to arise again because lenders and the federal government have taken measures to correct what caused the crash back then.  

Our recent statistics below show that local home prices have only dipped slightly year-over-year and prices are UP from the previous month.  New listings year-over-year are down 27.7%, and sales are down around the same.  However, both of those areas are also UP compared to one month ago and I would expect that trend to continue.

I can tell you not only from the statistics, but also from my recent client experiences, that homes here are continuing to sell at listing price or a bit over once again and the number of days on the market are shortening.  If you’re thinking of a move, now might be the time to begin your search before we start to see some of the frenzy we witnessed in the past several years.

There are some who are wanting to hold on to their historically low interest rates despite new needs and wants in their housing situations.  I will tell you, as I’ve told them, this should not always be a determining factor. 

The reason for this is that if you finance your home at a somewhat higher interest rate now you will likely be able to refinance when rates are lower in a couple of years and at that time you will also likely have equity in your home to make things even easier. 

For first-time buyers, if it’s at all possible, the time to buy is always NOW.  Rental prices keep escalating and it’s likely that a monthly mortgage payment would be less than rent.   When you rent, you are paying a mortgage payment---although it’s your landlord’s---not your own.  Why not earn that equity for yourself if there’s any way you can?  Just a thought.

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling, no matter the reason.  And fortunately, you’ve got me.  

My long-time experience, coupled with my investment banking background, gives me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Knowing what you want, need, and can afford is an important first step.  The second step is to contact me.

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And now for statistics…

 

MAY 2023

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

Here are some highlights from the May 2023 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was a 28.  For condo/townhomes it was 25.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 100.0% and for condo/townhomes it was 99.7%.  

 

In Teller County, the average days on the market for single family/patio homes was 32 and the sales/list price was 99.7%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing May 2023 to May 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,590, Down 27.7%

·       Number of Sales were 1243, Down 26.4%

·       Average Sales Price was $536,478, Down 3.2%

·       Median Sales Price was $475,000, Down 2.5%

·       Total Active Listings are 1,750, Up 28.2%

·       Months Supply is 1.4, Down 1.1%

 

 

Condo/Townhomes:

·       New Listings were 242, Down 3.6% 

·       Number of Sales were 186, Down 10.6%

·       Average Sales Price was $363,170, Down 1.8%

·       Median Sales Price was $340,000, Down 6.8%

·       Total Active Listings are 263, Up 132.7%

·       Months Supply is 1.4, Down 12.6%

 

 

MAY 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Down 25.3%

 

• Median Sales Price for All Properties was Down 3.7%

 

• Active Listings on All Properties were Up 121.6%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

COLORADO SPRINGS RANKS #81 IN THE Q2 FHFA HOUSE PRICE INDEX

Federal Housing Finance Agency, 5.30.23

The recently published FHFA House Price Index for first quarter 2023 lists Colorado Springs as #81 out of the top 100 in house price changes during that quarter. 

While we are still in the top 100, we fell 50 places from last year.  Our lack of available homes for sale has kept us from ranking considerably higher and I am hopeful that things are beginning to turn around in that area.

It should be noted that we are still ranked higher than Denver!  A definite plus and assuredly not lost on companies looking to relocate to Colorado.

Here is a copy of the Colorado Springs changes:

 

Here is the list of 100 measured cities in ranking order:

And, if you have any questions, you know who to call.

 

ERA SHIELDS MONTHLY STAT PACK 

Data through May 2023, ERA Shields real estate

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page and you can click here to get the report in its entirety.  

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, May 2023

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

To access the report, please click here and if you have any questions, please give me a holler.

May 24, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

SPRING BUYING AND SELLING SEASON STILL GOING STRONG

When I mentioned two weeks ago that April had been my busiest April in many years, I had no idea that May would be even busier.  And yet it’s true.  I know that the rest of the country is just starting to see a bit more Residential real estate activity, but here in the Colorado Springs area it appears we are moving steadily ahead.

There are several reasons for this, including a number of folks relocating here either for work or to be near family, new employers relocating to the Springs and bringing along their employees, and simply those who no longer want to put their plans on hold when it comes to selling to trade up or move to a new neighborhood.  

I’ve also run into situations recently where there have been multiple bids on properties my clients have wanted as well as offers over list price.  

A recent study by Bank of America shows that “U.S. homebuyers are still committed to their plans to buy a property despite rising interest rates, high inflation and slowing growth”.  The study also showed that “Gen Z and Millennials are showing extreme resilience even though the market is more competitive” and that “the dream of home ownership is alive and well despite the challenges”.  

More than half of those surveyed by BofA said they were looking to buy a house because they were tired of renting and the rent increases, as well as having the desire to start building equity in a home of their own.

This came as no surprise to me.  Having just celebrated my 51^st  year in the local Residential real estate arena, I’ve witnessed most every cycle imaginable and have seen mortgage rates as high as 21%.  And, as I have always maintained—there are always those who need or want to sell, and those who need or want to buy.  And my investment clients are constantly on the lookout for properties that will be good rentals for those who cannot, or chose not, to own.

I’ve found that price and interest rates are not a determent to those who have the wants, needs and budgets to invest in home ownership, either for themselves or to rent to others.

At one time folks from other, more expensive parts of the country were moving here and finding they could get a lot more home for their money, and for some that is still the case.  However, as more and more people locate here, and home prices continue to rise even though more realistically than in the most recent past, this is not always the case.

Colorado Springs is still in the top 10 of U.S. New and World Report’s “Best Place to Live” rankings of 150 metro areas, but we’ve dropped a few spots to number nine in part due to housing affordability and typical costs of goods and services.  We’ve simply become too popular for our own good so to speak. While those of us who already live here know how much our city has so much to offer…like it or not, once others discover that-- they want it too! 

I hope I’m getting across the point that if you have even considered or been waiting for the “right” time to sell and trade up or move to a new location or to buy for the first-time or for investment purposes, there’s no better time than NOW to start the process.  

Let’s sit down together to find what you are looking for.  I can help figure out how to put your individual wants, needs and budget requirements to the best use in finding what you and your family want and deserve. 

It all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  I look forward to talking with you soon.

 

THE BEST TIME TO SELL YOUR HOUSE IS WHEN OTHER’S AREN’T SELLING

Keeping Current Matters, 5.11.23

Keeping in mind that these statistics are national and as I just mentioned home sales here are picking up, there are still fewer homes for sale than are needed and it’s always a good idea to put your present home on the market when it’s favoring sellers.

Some folks are still waiting for rates to go down before listing their homes and while this “wait and see approach” is right for some, it also creates an opening for more eager sellers to jump in now.

If your present home doesn’t meet your current needs and you’re ready to move, NOW is a great opportunity for your home to stand out.  More buyers will be looking at your home and you could be one of the ones who get multiple offers like the ones I’ve recently seen—especially if you price your home right. 

As Lawrence Yun, chief economist for the National Association of Realtors (NAR) recently said: “Inventory levels are still at historic lows…Consequently, multiple offers are returning on a good number of properties.”

A word to the wise…getting your home noticed is far easier when there are fewer homes for sale, so this is something to consider if you’re wanting to get top dollar now.

  

THE WORST PRICE DECLINES ARE BEHIND US…. AN INFOGRAPHIC

Keeping Current Matters, 5.12.23

 

As I’ve mentioned again and again, ALL things Residential real estate are LOCAL…and while prices may have dropped significantly in various parts of the country during the last year, Colorado Springs did not see very much of that.  

And now, as I mentioned earlier, we are beginning to see multiple offers once again even and some of those over list price.

So, if you have put your plans to move on hold waiting to see what would happen with home prices, NOW is the time to act.  Not only are local prices NOT going down, they also appear to continue their upward trend.

To discuss whether this is the right time for your individual situation, please give me a call sooner than later.

 

U.S. HOMEBUILDER SENTIMENT ROSE TO A 10-MONTH HIGH IN APRIL…

Reuters, 5.17.23

With the shortage of available existing homes for sale, both here and nationally, new home construction is once again becoming a choice for buyers.  

According to the National Association of Home Builders Chairman Alicia Huey, “New home construction is taking on an increased role in the marketplace because many homeowners with loans well below current mortgage rates are electing to stay put, and this is keeping the supply of existing homes at a very low level”.  

Huey said that despite the rising optimism, builders are continuing to face challenges, including shortages of various building materials, to meet the growing demand for new homes.

While I personally have seen over the last year some various incentives from local home builders, including price reductions, this trend seems to be changing as more and more folks are choosing new construction.

In fact, several of my investment clients have chosen new construction for reasons such as the knowledge that a new home will likely require less maintenance and will attract more long-term, better qualified tenants than might an existing home for sale.

If new construction is something you are considering, you might be surprised that I can assist you in that as well.  I have long-term working relationships with various local builders and help you in site selection as well and most everything else to do with a new home.  Even more important, I can direct you to several lenders who can offer you terms best suited for your individual situation. 

And did I mention?  This is comes at no additional cost to you.  Just one of the many services I provide my clients.  

 

ERA SHIELDS MONTHLY STAT PACK 

Data through April 2023, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page and you can click here to get the report in its entirety.  

May 5, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

SPRING BUYING AND SELLING SEASON HAS HEATED UP EARLY… WITH NO SIGNS OF SLOWING DOWN

At the end of last year, I would never have predicted that the first quarter of 2023 would be so busy…but it was.  I had more closings during this first quarter than in the first quarter of the previous three years and it appears that things are just beginning to heat up.

There are numerous reasons for this, including a ramp up of corporate relocation, greater interest from my investor clients and several family members of friends and clients who are wanting to relocate here to be closer to them.

Whatever the reason, it has kept me as busy as ever and given me the opportunity to do the thing I most enjoy…helping families find just the “right” match for their wants, needs and budget requirements.  A house, as it’s said, is a “castle” or “safe haven”, and it gives me so much pleasure to see my clients happily ensconced in their new home.

As you will see from the statistics below, homes in the Colorado Springs area are holding their value much better than in some other areas of the country and I would expect them to do even better as the year moves on. 

Sales, while not as brisk as a year ago due to the quick rise in interest rates, are starting to increase and total active listings are up 64% over a year ago.  New listings are starting to rise as well, month over month, and I would expect that trend to continue.  And of most importance to sellers, homes are selling at just about their listing price and with fewer days on the market.  

Lenders have been lowering their mortgage interest rates, and apparently folks are taking advantage.  

And, as I have always said, there are always those wanting to sell and those wanting to buy…all for various individual reasons.  If you have even considered a move, either to sell and trade up, buy for investment purposes or for the first-time, now is the time to start considering your options.  

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling.  Fortunately, you’ve got me.  

My long-time experience, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Knowing what you want, need, and can afford is an important first step.  The second step is to contact me.

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

APRIL 2023

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

Here are some highlights from the April 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 36.  For condo/townhomes it was 27.  

Also in El Paso County, the sales price/list price for single family/patio homes was 99.8% and for condo/townhomes it was 99.4%.  

In Teller County, the average days on the market for single family/patio homes was 56 and the sales/list price was 97.9%.

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing April 2023 to April 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,495, Down 32.7%

·       Number of Sales were 1,090, Down 26.8%

·       Average Sales Price was $532,254, Down 5.3%

·       Median Sales Price was $459,000, Down 5.3%

·       Total Active Listings are 1,590, Up 64.1%

·       Months Supply is 1.5, Down 2.4%

 

Condo/Townhomes:

·       New Listings were 209, Down 15.7% 

·       Number of Sales were 140, Down 38.3%

·       Average Sales Price was $364,637, Down 6.0%

·       Median Sales Price was $350,000, Down 4.1%

·       Total Active Listings are 241, Up 205.1%

·       Months Supply is 1.7, Down 5.4%

 

APRIL 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 31.5%

 

• Median Sales Price for All Properties was Down 5.3%

 

• Active Listings on All Properties were Up 31.7%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

BUYER ACTIVITY IS UP DESPITE HIGHER MORTGAGE RATES

Keeping Current Matters, 5.3.23

As I mentioned earlier, buyer activity is picking up speed even with higher mortgage interest rates.  So, if you have wondered if this is a good time to sell your home this is great news.

Data from the latest Showing Time Showing Index, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below):

 

As you can see, the first two months of this year saw a noticeable increase in buyer traffic.  That’s likely due to the limited number of homes for sale keeping buyers looking for homes even during the colder months.

To see why this is significant, let’s compare this February with each February for the last six years (see graph below).  It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory!

 

During the last six years we saw the most February buyer traffic in 2021 and 2011 as you can see in green above, but those were highly unusual years for the housing market.  Therefore, if you compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.

This is even more noteworthy considering the increase in mortgage rates this past February.  The Freddie Mac 30-year fixed mortgage rate rose from 6.09% during the week of February 2^nd to 6.50% in the week of February 23^rd.  So, even with higher rates, more buyers were looking for a home.

Jeff Tucker, senior economist at Zillow, says the increased buyer activity could continue: 

 “More buyers will keep coming out of the woodwork.  We always see a seasonal uptick in home shoppers in March and April…”

So, if you’re looking to sell, this upward trend in active buyers should be very encouraging.  The sooner you meet with me to discuss how this can work for you, the sooner you can get your present home on the market.  

I look forward to discussing how we can make this busy spring buying season one that can work for you.

 

REASONS TO SELL YOUR HOUSE IN TODAY’S MARKET…INFOGRAPHIC.

KeepingCurrentMatters, 5.5.23

With spring buying season underway, there’s no better time than now to get started if you’ve even considered a move.  Inventory, while improved from a year ago, is still low and that’s why the number of offers on recently sold homes is on the rise.  

Call me sooner than later so we can discuss whether a move at this time makes the most sense for you and your family.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, April 2023

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

To access the report, please click here and if you have any questions, please give me a holler.

April 26, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

SPRING BUYING AND SELLING SEASON IS GEARING UP AND APPEARS TO BE BUSIER THAN PREDICTED

Yes, the year did start off a bit slow in terms of Residential real estate but the national housing “crash” that some predicted doesn’t look anything like a “crash”.  In fact, the last two months have been business as usual in our neck of the woods and it doesn’t appear to be slowing down as we enter what is traditionally the busiest time of the year.

David Auld, chief executive of home builder D.R. Horton, reported during the home builder’s earning call last week that “The spring selling season is off to an encouraging start” and that cancellation rates had fallen sharply since the prior quarter, and they expected to close sales on far more homes in the fiscal year than what analysts had predicted.  

Part of what is happening is that homes have become a bit more affordable…or rather a bit less unaffordable!  With mortgage rates lower than the November 2022 high of 7.08%, and home prices moderating as well, folks who have waited are now beginning their home search once again.

While the lack of existing home inventory is still a problem, the number of new homes coming on the market seems to have improved.  Realtor.com reported for the week ending April 15 that the number of homes listed for sale was 49% above that of the year earlier level.  

Many new home builders are offering incentives to lower buyers’ mortgage payments and various other incentives as well.  In fact, I recently helped one of my relocation clients purchase a newly built home and the home builder did indeed offer them an incentive to lower their mortgage payment, along with some other enticements.  It was an excellent opportunity for my client and since the home was close to being finished, it afforded them the opportunity to move in sooner than if the home had to be built from scratch.

Some economists are beginning to say that starting with this current quarter, housing could even begin providing a modest tailwind for the economy, in a small way helping to at least temporarily keep the recession so many expect at bay.  Time will tell, but that certainly is good for those of us in the Residential real estate market to hear. 

None of this means that this spring buying and selling season is likely to be as strong as last year’s, much less the blowout of 2021.  However, housing is not likely to be the drag on the overall economy that it has been in recent quarters.

From my personal perspective, April has been as busy as almost any April. I’ve sold homes to several relocation clients and even sold one to clients that saw the home in person for the first time when they moved in!  Yes, you read that right.  My client could not take the time to come house shopping in person so when they looked at some listings that I had sent, they asked me to go to the homes and FaceTime them while showing them the home.

Knowing what my clients were looking for provided me with the ability to find a home that I knew would meet their needs, wants and budget requirements.  I’m happy to report they and their fur baby are happily ensconced in their new home and my client is already back at work on her relocated job in the Springs.  Just another day in the Residential real estate relocation business and I sure do like those “happy” endings.  

After all, that’s why I do what I do.  I am not called “The real estate Therapist” for nothing.  It’s a title I earned through my more than 51 years working in the local real estate arena.  I spend all the time necessary to find out about my clients and their families so that when I pair that with their wants, need and budget requirements I know exactly where to being the search for what I believe will check all those boxes.

I guess you could also call me a “matchmaker” of sorts in that I try my best to match the right home to the right buyer. Over the years I’ve learned that more important than making a “sale”—it’s far more important to make a “friend”. I’m happy to say that at this stage of my career it’s giving me great pleasure to be helping the children and sometimes even grandchildren of original clients in purchasing their homes.

If you’ve been waiting for the “right” time to sell and trade up or move to a new location or to buy for the first-time or for investment purposes, there’s no better time than NOW to start the process.  Together we can find exactly what you are looking for.

And it all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  

I hope to hear from you soon.

 

THINK TWICE BEFORE WAITING FOR LOWER HOME PRICES

KeepingCurrentMatters, 4.17.23

As I just told you, the “crash” on the horizon that kept some potential buyers away from the market just didn’t materialize.  In fact, a recent survey from Zonda showed “53% of millennials are still renting right now because they’re waiting for home prices to come down”.

But here’s the thing.  The most recent data shows that home prices appear to have bottomed out and are now on the rise again.  Selma Hepp, chief economist at CoreLogic reports: “U.S. home prices rose by 0.8% in February…indicating that prices in most markets have already bottomed out.”

The graph below compares home price trends in November 2022 to those in February 2023:

 

 

So, once again, if you are asking yourself if you should keep waiting until prices come down you might find yourself waiting a very long time.  Data shows that prices are increasing, not decreasing, in much of the country, and more especially in places like Colorado Springs where so many want to relocate.  

The latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023.  

Bottom Line?  Better to call me sooner than later if you’ve been waiting for prices to drop.  You’ll be that much ahead of the game if you buy now before prices begin to rise even more over the next year.

 

HOME INSPECTIONS FOR SELLERS….AN INFOGRAPHIC

Keeping Current Matters 4.14.23

 

Bottom Line:

Inspections are a major part of the home selling process.  During the frenzy of the past several years, many buyers used to waive inspections to be more competitive with the offer, but in recent times home inspections are becoming popular once again.

I can help you determine what repairs and updates need to be made prior to listing your home to make the whole process go smoothly.

 

HARRY’S JOKES OF THE DAY: 

 

 

April 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

   A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

FIRST…LET ME WISH ALL WHO CELEBRATE A VERY...

THE COLORADO SPRINGS housing market IS SHOWING SIGNS OF IMPROVEMENT…A TESTAMENT TO THE STABILITY OF OUR MARKET AND EXCELLENT ECONOMIC OUTLOOK

When you look at the statistics below you don’t really see the “true” picture.  Yes, home prices are just slightly down from a year ago and sales were down year-over-year, but…sales were UP over the previous month and were the most recorded since last October.

It’s important to remember what’s driving the prices and number of sales and that’s the mortgage interest rate.  The interest rate rose faster than ever before and created problems for both buyers and sellers.  With rates stabilizing (or “normalizing” as I prefer to say), folks are beginning to adopt creative ways to both buy and sell.

It’s the spring buying season…something we didn’t see for several years when homes were selling at a record pace all year round, with bidding wars and multiple offers on day one of a listing.  That was not only unrealistic, but it also created a frenzy that I had never seen before and hope to never see again.

I’ve been in Colorado Springs Residential real estate for 51 years this week and one of the pleasures of my job is getting to know my clients well.  The more I know about their wants, needs and budget requirements, the better I can help to find the property that fits them and their family best.  

After all, when a home is often a family’s largest financial asset, it’s essential to find the right fit.  And, of course, a home is a family’s “safe haven”, and it needs to satisfy the needs of all family members if possible.

During the last several years when interest rates were historically low and available home for sale were at an all-time low, buyers were at a distinct disadvantage and the actual process was not enjoyable.  Oftentimes buyers had to settle for less than they wanted just to get a home.  That turned what should be a happy time into one that at times was a little less so.

That’s why I celebrate today’s market.  Yes, rates are higher than the last several years, but in reality, they are almost “normal”.  As I’ve mentioned before, my first home had a mortgage interest rate of 8.5%.  And I’ve seen them as high as 19%.  They are going down slowly, and in fact went down for the fourth straight week yesterday to 6.28% per Fannie Mae.  Considering it was a two decade high of 7.08% last fall, seeing the rate decrease is good news.  

With several large companies looking to relocate to the Springs and others expanding, I expect to see our home values to continue to hold their own and slowly increase and as more homes come on the market. I also expect sales to continue to rise.

There are always those wanting to sell and those wanting to buy…all for various individual reasons.  If you have even considered a move, either to sell and trade up, buy for investment purposes or for the first-time, now is the time to start considering your options.  

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling.  Fortunately, you’ve got me.  

My long time experience, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Knowing what you want, need, and can afford is an important first step.  The second step is to contact me.

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

MARCH 2023

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

Here are some highlights from the March 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 45.  For condo/townhomes it was 32.  

Also in El Paso County, the sales price/list price for single family/patio homes was 99.3% and for condo/townhomes it was 99.6%.  

In Teller County, the average days on the market for single family/patio homes was 84 and the sales/list price was 98.2%.

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing March 2023 to March 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,414, Down 22.9%

·       Number of Sales were 1,075, Down 21.0%

·       Average Sales Price was $523,972, Down 2.9%

·       Median Sales Price was $460,000, Down 3.2%

·       Total Active Listings are 1,480, Up 109.9%

·       Months Supply is 1.4, Down 5.2%

 

 

Condo/Townhomes:

·       New Listings were 204, Down 12.8% 

·       Number of Sales were 162, Down 34.9%

·       Average Sales Price was $356,192, Down 6.7%

·       Median Sales Price was $340,000, Down 6.8%

·       Total Active Listings are 236, Up 218.9%

·       Months Supply is 1.5, Down 6.3%

 

MARCH 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 24.1%

 

• Median Sales Price for All Properties was Down 2.4%

 

• Active Listings on All Properties were Up 64.3%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

THE KEY ADVANTAGE OF INVESTING IN A HOME…INFOGRAPHIC

KeepingCurrentMatters, 4.7.23

 

THE BEST TIME TO LIST YOUR HOUSE IS ALMOST HERE

KeepingCurrentMatters, 3.27.23

If you’re thinking of selling this spring, it’s time to get rolling…. the best week to list your house is quickly approaching.

Experts at realtor.com considered trends from recent years (excluding 2020 as an odd year due to the pandemic) and determined the ideal week to list a house this year:

“Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2023 is fast approaching.  The week of April 16-22 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”

So, if you’ve even considered selling, now is your best opportunity.  However, before you put your home on the market you need to get it ready.  If you haven’t started that process yet, you will need to move quickly.  

First, give me a call so I can make suggestions that will help you determine what needs to be done in order to put your home in the best light.

In February, realtor.com asked more than 1,200 recent or potential home sellers what updates they ended up making to their home prior to listing it. The graph below shows their answers:

 

As you can see, the most common updates included landscaping and painting.  

Bottom Line?  If selling your home this spring is a consideration, please contact me sooner than later so we can get your home ready to sell during prime buying and selling season.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, March 2023

As always, I like to share the wonderful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners, however, I think you will all find it worthwhile reading.

To access the report, please click here and if you have any questions, please give me a holler.

 

HARRY’S JOKE OF THE DAY:

 

March 24, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

HOMEOWNERSHIP IS A LONG-TERM INVESTMENT…AND OFTEN YOUR GREATEST ASSET

Several nights ago I had dinner with some long-time friends who also happen to be long-time real estate brokers.  It was a social evening but naturally the talk eventually came around to the real estate market and how we and our clients are handling the “new normal”.

We discussed the higher mortgage loan interest rates and chuckled over the fact that we all had purchased first homes at rates considerably higher than they are today.  I related that I was happy when rates fell from 9% to 8.5% prior to closing on my first new home. 

Several of us remember the days of 12% VA loans and rates as high as 18%.  So to us, 6% or 7% isn’t “high”.  And maybe it was good that we started buying and selling homes when rates were so high so that we could appreciate the lower rates that eventually came to be.

However, as you might imagine, the prices of those first homes were as low as $25,000.  And to us at that time, with the higher interest rates, our monthly payments were “high” in comparison to our income.

The one thing we all agreed on was that no matter what—homeownership contributed to our own personal wealth, and it continues to do so.

Residential real estate is a long-term investment and one that most always helps increase personal wealth.  It provides tax benefits and is certainly far better than renting if at all possible for so many reasons.

The Pikes Peak Association of Realtors (PPAR) started keeping track of local sales in 1985 and I calculated the “average” sales price increase from 1985 to this month and it is 7%.  When you consider how many various Residential real estate “cycles” this covers you can see what a fabulous long term investment homeownership is while at the same time providing you and your family a place to call “home”.  

Another thing we discussed at dinner was how many different cycles we have seen over the years and how we’ve all found creative ways to help our clients succeed with their buying and selling wants and needs.

This just reinforced what I’ve been telling you forever.  It’s so very important to have a seasoned, knowledgeable professional in your corner when you are buying or selling Residential real estate, either for the first time, to sell and trade up or for investment purposes.  

Fortunately, you have me.  My almost 51 years in the local arena, coupled with my Investment Banking background, give me a heads up on the competition.  I spend the time to find out the individual wants, needs and budget requirements of each and every client.  I do the homework to make sure you find the neighborhood that’s just right for you and your family.

That’s why I’m still working…and I don’t consider it work…I consider it a privilege …when I help past clients, their children and sometimes lately their grandchildren realize their Residential real estate dreams.

Yes, it’s a different market than it was a year ago and 50 years ago, but together we can navigate it and find the right fit for you.

And it all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  

I hope to hear from you soon.

 

HERE’S WHY THE housing market ISN’T GOING TO CRASH…AN INFOGRAPHIC

KeepingCurrentMatters, 3.22.23

I get asked time and again about the 2008 housing market crash and how it compares to today’s market.  To begin with, Colorado Springs did not get hurt as badly as the rest of the country back then and I don’t expect it to experience any great market swings at present, either.  

Yes, interest rates are higher and home prices are not appreciating as much as they did over the last several years, but that’s not necessarily a bad thing.  It’s simply the market “normalizing”, as I kept telling you it would. 

While I don’t expect we will see the 2% or 3% interest rates again, I do expect them to go down from today’s rate.  Remember, this is the fastest time ever that rates accelerated but they couldn’t stay that low forever.  The buying frenzy those low rates created was not fun for anyone looking for a home and today buyers are able to take a little more time to find the “right” home for them.  

With today’s high inflation, it’s time to come to terms with the fact that higher rates are here for the foreseeable future. However, as I mentioned earlier, they’ve been a lot higher, and folks were still buying homes.  There is always someone who needs to buy and someone who needs to sell, and there are ways to make it work for each.

The infographic below gives you greater detail about why things are different today than they were in 2008:

 

 

HOME PRICES FELL IN FEBRUARY FOR THE FIRST TIME IN 11 YEARS

The Wall Street Journal, 3.21.23

And now some good news…

With the first year-over-year drop in home prices in more than a decade and a dip in the mortgage rates, the yearlong streak of declining monthly home sales has snapped, showing the effects of the Federal Reserve’s campaign to raise interest rates.

Nationally, sales of previously owned homes, which constitute most of the housing market, rose 14.5% in February from the prior month, but were down 22.6% from a year earlier, according to the National Association of Realtors (NAR).  Sales had decreased for 12 consecutive months through January.

Buyers benefited from a slight improvement in affordability as home prices were slightly lower and interest rates eased from a 20-year high last fall.

If you’re wanting to step into the spring buying season to test the waters, give me a call sooner than later and let’s see how we can make all of this work for you.

 

NEW HOME CONSTRUCTION COULD PROVIDE SOME INCENTIVES FOR BUYERS

The Wall Street Journal, 3.10.23

New home builders today are facing a number of challenges from high construction costs to rising interest rates and buyer concerns about job security and inflation.  According to the National Association of Home Builders, (NAHB), sales of newly built single-family homes last December increased by 2.23% due largely to builder incentives and lower mortgage rates.  But sales were still down 16.4% compared to December 2021.

To stimulate sales, 57% of builders offered some type of incentive in last month, from mortgage interest-rate buydowns to closing-cost credits to free upgrades and options, while 31% reduced home prices, according to NAHB.

What that means is that savvy buyers who know what to look for and what to ask can find deals, particularly ones willing to pay cash or close quickly.

Again, you fortunately have me in your corner when it comes to new home construction as well.  I have great relationships with a number of local homebuilders and can help you navigate those waters as well—all at no additional cost to you.

If this is something you want to explore, give me a call and let’s see how to make it happen.

 

HARRY’S JOKE OF THE DAY:

March 6, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

IT’S A TOUGH TIME FOR THE housing market BUT AS I’VE REPEATEDLY SAID…THERE ARE ALWAYS THOSE WHO HAVE TO SELL AND THOSE WHO HAVE TO BUY…

As we approach the spring buying season, things are quite different from a year ago.  That said, Colorado Springs has almost always fared better than the rest of the nation during market downturns and I expect it to recover faster than most as well.

We’ve got many things in our favor.  With a number of companies planning to relocate to the Springs you’ve got relocating employees.  And local companies are adding to their staff as well.  All you need to do is drive downtown or head southeast and northwest and you can see for yourself how quickly this City is expanding.  

For better or worse, folks are discovering what we already know…Colorado Springs has a lot to offer besides a beautiful view of Pikes Peak.  We have a fabulous work/life balance that workers today crave and that’s not easy to find in many other areas.  

Why do I mention this?  Well, if you follow the statistics I provide monthly you can see that our median home prices, while slightly lower than a year ago, have not fallen nearly as much as many other cities.  Yes, we are not seeing the 15% year-over-year monthly gains of the recent past, but as I have said all along, those increases were not sustainable, nor were they realistic.  They were the product of a lack of available homes for sale and historically low interest rates.  Period. 

We are now seeing the market “normalize”, and while homes are staying on the market longer and interest rates are considerably higher, I expect the pace of buying and selling to accelerate as soon as interest rates head down a bit.

It’s important to note that even at 7%, interest rates are nothing near the historical highs of the early 1980’s when rates were over 18 percent.  Some of us can remember those days and yes, we WERE selling homes at those rates!

In fact, when I purchased my first home, which coincided with my first year in the real estate business, I felt lucky that the interest rates DROPPED to 8.5% by the time of closing!!  

Here’s a snapshot of the rates of this decade for 30-year fixed rate loans:

Recent affordability was tough, especially for first-time buyers, even prior to the interest rate increase.  Home prices were going higher and higher.  Now, with home price appreciation stabilizing, there are several creative ways to purchase and finance a home, whether to sell and trade up, buy for the first time or buy for investment purposes.

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling.  Fortunately, you’ve got me.  

My almost 51 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Knowing what you want, need, and can afford is an important first step.  The second step is to contact me.

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And now for statistics…

 

FEBRUARY 2023

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

Here are some highlights from the February 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 53.  For condo/townhomes it was 35.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 98.7% and for condo/townhomes it was also 98.8%.  

 

In Teller County, the average days on the market for single family/patio homes was 62 and the sales/list price was 97.4%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing February 2023 to February 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 976, Down 17.7%

·       Number of Sales were 778, Down 23.3%

·       Average Sales Price was $500,483, Down 2.8%

·       Median Sales Price was $440,000, Down 5.4%

·       Total Active Listings are 1,443, Up 196.3%

·       Months Supply is 1.9, Down 8.4%

 

Condo/Townhomes:

·       New Listings were 162, Down 18.6% 

·       Number of Sales were 104, Down 35.0%

·       Average Sales Price was $359,350, Up 1.6%

·       Median Sales Price was $336,250, Down 7.2%

·       Total Active Listings are 225, Up 257.1%

·       Months Supply is 2.2, Down 7.3%

 

FEBRUARY 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 27.1%

 

• Median Sales Price for All Properties was Down 5.2%

 

• Active Listings on All Properties were Up 96.0%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

INFOGRAPHIC…A CHECKLIST FOR SELLING YOUR HOME THIS SPRING

KeepingCurrentMatters, 2.24.23

Note to Sellers:  These are a few of the things you might consider to make your home as attractive as possible for potential buyers.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, February 2023

As always, I like to share the economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners and I think you will all find it worthwhile reading.

To access the report, please click here and if you have any questions, please give me a holler.

 

HARRY’S JOKES OF THE DAY:

 

 

 

February 21, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

SPRING BUYING AND SELLING SEASON IS ALMOST HERE

The Wall Street Journal 2.16.23

As I was preparing to write this eNewsletter, The Wall Street Journal had an article with some great information about the same things I was going to tell you.  I’ll share that, and more, right here.

While the market frenzy of the past several years is now behind us, don’t expect the spring buying and selling season to be a “walk in the park” so to speak.

The affordability crunch, given the median single-family home prices and the mortgage interest rates, is working against some buyers, and most especially for first-timers.

However, potential buyers are entering an improved market where bidding wars are less common, and homes are staying on the market longer.  In January, homes nationwide were on the market a median 51 days, an increase of more than three weeks from a year ago, according to Redfin.  In Colorado Springs, it was essentially the same.

Seller and Buyers should both be prepared to make reasonable concessions to get to the closing table.  This could mean a Seller offering x-amount to the Buyer to use for whatever the Buyer may feel the home might need or the Buyer offering to let the Seller lease back the home for a specified time to facilitate a move to a new home.  

Whatever the concession, it’s worth considering to get an offer accepted.  According to Redfin, Buyers received concessions in 42% of home sales in the fourth quarter, up from 31% a year earlier.

And continuing a trend that began during the recent market frenzy, cash offers and strong financing continue to often win out over higher offer prices.  Buyers should aim for a down payment of 20%.

Problems with financing and home inspection are among the most common reasons for contracts falling through.

While a cash offer is “king” for a Buyer looking to play hardball, for many Buyers it isn’t an option.  Being fully pre-approved from a lender is the next best thing to help facilitate the sale rather than a simple pre-approval letter that hasn’t gone through the lender’s underwriting process yet.

Homes that have been on the market for several months this winter may offer discounts to Buyers who are now ready to make a deal.

What I’m saying is that NOW is a great time to get ready for the spring season.  Buyers will be looking, and Sellers are ready.  That’s a win-win situation when properly matched.

That’s why you’ve got me.  Not only am I the “real estate Therapist”, I’m also a great Matchmaker.  With my almost 51 years of experience in the local Real Estate arena, I’ve become an expert at putting together deals that work.  

Yes, interest rates are higher than they’ve been, and home prices are not getting cheaper, but there is almost always a way to find a home that can meet your wants, needs and budget requirements.  And my guess is that this spring is going to be a great time to make that happen.

But whether you’re buying or selling, it begins with a phone call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  Together we can make all your Residential real estate dreams come true.

 

AND, A LITTLE BIT OF BRAGGING…

Once again, I’m happy to report that I have achieved a top honor at ERA real estate.  As a member of the Circle of Honor I was recently honored for my “extraordinary efforts and commitment to success”.  

I don’t work for any reason other than to make certain I do the very best for my clients, but I must admit that it’s nice that my company also appreciates what I do.  So, when you see the decal below, you’ll know what it means!

 

COLORADO SPRINGS HOME PRICES ARE HIGHER IN FOURTH QUARTER…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 2.9.23 

Median prices of single-family homes across the nation rose for Quarter Four 2022 in 90% of the 186 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 4.0% to $378,700 from one year ago.

Home prices in Colorado Springs rose less than 1% for that same time period but was still ranked number 36 based on Median Sales Prices of the 186 cities surveyed.  The Median Sale Price here for the end of Quarter Four 2022 was $443,400.  Prices reflect detached, single-family and patio homes but not townhomes or condominiums.   

And once more, the good news is that while our home values are increasing, they are still less than those in the Denver, Boulder, and Ft. Collins areas, which makes our city more attractive to potential companies and others wanting to relocate here.

Qualifying income for local mortgages continues to rise.  However, increased home value in your present home can likely give you a larger down payment.   That could possibly keep your monthly output lower than you might expect, even in a more expensive new home. 

To see all 186 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.   To see the qualifying income necessary for mortgages, click here.  

And if you have any questions, you know where to reach me.

 

THE SPRING housing market CAN STILL BE A SWEET SPOT FOR SELLERS---AN INFOGRAPHIC

KeepingCurrentMatters, 2.17.23

 

Some Highlights:

• The biggest challenge in the housing market is how few houses there are for sale compared to the number of people who want to buy.

 

• The number of homes for sale is up from last year but below pre-pandemic numbers, and that means we’re still in a Seller’s market.

 

• The housing market needs more homes for sale to meet the demand of today’s buyers.  If you’ve thought about selling, now’s the time to contact me.

 

SHOULD YOU CONSIDER BUYING A NEWLY BUILT HOME?

KeepingCurrentMatters, 2.15.23

While you might be focusing on previously owned homes in your search for a new home, with so few choices today it might make sense to consider all options, which include a home that’s newly built.

Even though there are more homes for sale today than a year ago, there’s still an historically low number of available homes on the market.  One reason for that is years of underbuilding—meaning there haven’t been enough new homes built to keep up with the demand.

During the past 14 years, the number of new homes being built each year is on the rise and that’s good news for Buyers. According to Mark Fleming, chief economist at First American:

“While existing-home inventory remains limited, the silver lining for home buyers is that new-home inventory is on the rise, and a new home at the right price is a pretty good substitute.”

 

And, while there is a growing number of newly constructed homes for sale, builders are slowing the pace until they sell more of their current inventory.  According to Logan Mohtashami, Lead Analyst at HousingWire:

“The builders have to work off the backlog of homes, but instead of 3%-4% mortgage rates, they’re dealing with 6% plus mortgage rates, which means they have to provide many incentives to make sure those homes sell.”

 

Many builders are now offering incentives to help Buyers purchase these homes.  Fleming also explains:

“The National Association of Home Builders reported that nearly two-thirds of builders were offering incentives, including mortgage rate buydowns, paying points for Buyers and price reductions, which could entice home Buyers.”

 

A builder who is willing to pay to reduce your mortgage rate could be a game changer.  Ksenia Potapov, Economist at First American puts it this way:

“A one percentage-point decline in mortgage rates has the same impact on affordability as an 11 percent decline in house prices.”

 

Should you buy a brand-new home?  There are many things to consider, including location, and the only way to determine that is to meet with a knowledgeable real estate professional like me who can help you determine if that is the best way for you to go.

And did I mention that new home purchasing advice is one of the services I provide my clients at no additional charge to them?  

I have long time working relationships with a number of local builders, so if you are considering new home purchasing, just give me a call and let’s see if that fits into your long term Residential real estate plan.  It might be just the right decision for your individual situation.  

 

HARRY’S JOKE OF THE DAY: 

February 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

       A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

WITH SPRING BUYING SEASON ALMOST UPON US, THE LOCAL housing market IS SHOWING SIGNS OF INCREASED ACTIVITY

It’s  been a long couple of months in the Residential real estate market, both locally and nationally, but things are starting to look up here just in time for the traditional busy time of year.

To begin with, mortgage interest rates have been falling and should go down a bit more in the coming months.  And, as you will see in the statistics below, there are more homes on the market now, and I would suspect that there will be even more in the next month or two.

Traditionally, folks wait to put their homes on the market after the holiday season and while we saw fewer new listings last month compared to a year ago, there are considerably more homes for sale than there were last year at this time.  Almost two hundred percent more single-family, townhomes were actively for sale in last month compared to last January!  

That is great because there are many folks looking to buy here for so many various reasons.  First, rental prices are still going through the roof and many renters are looking for ways to become homeowners.  Then we have new companies relocating here and their employees are also looking for to relocate and find housing. Folks who had waited too long to sell and trade up and found themselves in a bind due to the rising interest rates along with the greater home appreciation are now finding ways to make their dreams a reality.

Colorado Springs is as desirable a place to live as it’s ever been, and the city is still getting great press.  A recent article in Fortune Magazine entitled “Best Place to Travel in 2023” includes Colorado Springs among many foreign cities, as well as some others in the U.S.  And, as you well know, once you visit Colorado Springs, somehow you start thinking about relocation!  It’s happened to the best of us and I’ve no doubt it will continue for years to come.

Those who were thinking prices were going to fall are realizing that it’s just not going to happen.  Yes, the bidding wars and sales considerably over listing price may be gone now that there are more homes for sale, but don’t think you’re going to see a drop in home values here.

I’ve personally predicted an increase of 3%-5% for 2023.  I wouldn’t even be surprised if this is on the low side, but we will have to wait and see.  What I do predict is that home values here in general are not going to slide.

If you’ve even considered a move, to sell and trade up, move to a new neighborhood or for investment purposes, you might want to get a jump on the sure to be busy spring buying season.

Knowing what you want, need, and can afford is the first step.  The second step is to contact me.

My almost 51 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

If Residential real estate is among your hopes and dreams for 2023, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

JANUARY 2023

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

Here are some highlights from the January 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 50.  For condo/townhomes it was 37.  

Also in El Paso County, the sales price/list price for single family/patio homes was 98.4% and for condo/townhomes it was also 99.0%.  

In Teller County, the average days on the market for single family/patio homes was 56 and the sales/list price was 97.5%.

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing January 2023 to January 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 965, Down 18.2%

·       Number of Sales were 739, Down 30.2%

·       Average Sales Price was $525,254, Up 6.1%

·       Median Sales Price was $445,000, Even

·       Total Active Listings are 1,639, Up 198.5%

·       Months Supply is 2.2, Down 6.6%

 

Condo/Townhomes:

·       New Listings were 181, Down 11.7% 

·       Number of Sales were 90, Down 43.0%

·       Average Sales Price was $335,963, Down 1.9%

·       Median Sales Price was $337,250, Down 2.2%

·       Total Active Listings are 256, Up 224.1%

·       Months Supply is 2.8, Down 5.2%

 

JANUARY 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 33.2%

 

• Median Sales Price for All Properties was Even

 

• Active Listings on All Properties were Up 108.4%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

housing market SHOWS SIGNS OF THAWING

The Wall Street Journal, 2.6.23

As I was writing this, I glanced online and saw an article saying pretty much what I had shared above.  So, here’s what it said:

“A decline in mortgage rates has more people interested in buying a home”

In response to signs that the Federal Reserve is nearly finished lifting rates, the average 30-year home loan rate has come down by just about a full percentage point from a 20-year high above 7% in November.

Mortgage applications are up by about a quarter since the end of last year and a measure of signed real estate contracts rose in December after six months of declines.  In addition, the number of people contacting real estate agents has rebounded from a November low, according to Redfin Corp’s internal data.

While rates are still considerably above the 3% range of a year ago, the fact that they are now a percent lower than November is a good sign and folks are pleasantly happy.

The housing market is a barometer of how the economy is responding to a loosening of financial conditions in recent weeks.  Stocks and bonds have both rebounded strongly to start the year on the premise that inflation is coming down without putting the U.S. into a deep recession.

The Fed is still indicating that it is committed to keeping rates high until inflation is lower and it is willing to risk a recession to do so.  Only time will tell how this will play out.

However, economists at Goldman Sachs Group have said this past month they expect the worst of the downturn has passed and housing is poised to exert less of a drag on economic growth going forward.

Execs at D.R. Horton, Inc., the largest U.S. homebuilder by volume, told analysts in January that they have seen heightened sales activity in the first few weeks of the year.  Nets sales, they said, are expected to increase significantly from the first quarter to the second, when the traditional spring selling season happens.  

As I have always said, it appears that folks “are less focused on the specific rate than they are on identifying a window of where they are comfortable with their monthly output”, according to a Redfin agent in Washington, D.C. also.

The Journal cited an example of an assistant superintendent in a Phoenix school district who started looking to buy a house with her boyfriend in the past few weeks.  After looking at about a half dozen houses, they made an offer that was accepted last week.

They decided to purchase knowing that rates might fall, and they could refinance their current mortgage later on. According to her, “I’m thinking this isn’t a forever thing.”  Exactly what I’ve been telling my clients.

Homebuilders have been offering incentives to sell their finished homes and some buyers are signing up for mortgages with rates that are temporarily lowered for the first few years.

Refinancing has fallen drastically from when homeowners were refinancing at rates that were around 3% or lower. Far fewer can save money at rates above 6%.

Pending home sales—a leading indicator for the housing market—rose 2.5% in December, led by gains in the South and the West, according to the National Association of Realtors (NAR).  

So, once again, if you’re even considering a move—the best first move would be to give me a call.  I’ve been through most all cycles imaginable over the last 51 years and can help you navigate the still somewhat stormy seas of home buying and selling.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, January 2023

As always, I like to share the wonderful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report.

To read the report, please click here and if you have any questions, please give me a holler.

January 24, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

WHETHER IT’S YOUR PERSONAL HOME, OR A HOME YOU PURCHASE FOR SPECIFIC INVESTMENT PURPOSES, ALL real estate IS AN INVESTMENT

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As you know by now, I don’t just sell Residential real estate, I totally believe in it, and most especially as a means of investment.  It can be the home you live in or the home you buy to rent out to others, ALL Residential real estate is an investment.  And like any investment, it’s not going to appreciate overnight.  While Residential Real Estate has traditionally outperformed the stock and bond market over the long haul, the key to that is “time”, or the “long haul”. 

I may be celebrating almost 51 years in the local residential real estate arena, but prior to that I was a Finance major at Arizona State University. After graduation I moved to Denver, associated with a Wall Street type firm, and began my professional career for three years as an Investment Banker.

Wanting to move to a smaller community, I relocated to Colorado Springs and decided that with my finance background, and knowledge about the mortgage market, selling Residential real estate might be a good fit.  That way I was able to help others invest in themselves by purchasing real estate and I could assist clients in finding the best mortgages and more. The rest, as they say, is history. 

I still start each morning reading The Wall Street Journal, with particular emphasis on the numbers—the prices of lumber, steel, aluminum, and more since they affect new home construction prices. Then I look at all different types of current mortgage rates which are the average of 4800 mortgage companies.  From that I can determine the best mortgage products for my clients for either purchasing a personal residence or investment properties.

Why is this of importance to you?  If you haven’t figured it out by now, my experience, in Residential real estate as well as financial matters concerning same, is why I’ve consistently been one of the top agents in the Springs.  I would have retired by now except that it’s still a pleasure for me to help people on their road to financial success in real estate, and I have enjoyed working with not only the children, but recently some grandchildren, of clients and friends.  I don’t call it work, although at times the recent market swings did require a lot of finagling for sure.  The satisfaction I get from helping folks is what keeps me going, and I’m always learning new ways in which to help.

Some folks have been timid about jumping into today’s market due to the higher mortgage rates coupled with higher prices on homes.  I’ve been around long enough to see rates as high at 20% so when I look at the 6%+ of today I don’t think “high”.  I also know that once inflation settles down, rates will go back down a bit as well.  

Will they go back to the 3% of several years ago?  I seriously doubt it.  That was unrealistic and created a Sellers’ market like none I had ever experienced.  It also created unrealistic home value appreciation that could never be sustained.  We are now experiencing a more normal appreciation and that is a boon for both Buyers and Sellers.

Since I am a “numbers” guy, and one who totally believes in Residential real estate as an investment in all areas, I decided to look at the type of home appreciation that we saw over the last 15 years.  I put it in chart form, and it is reproduced below.

Basically, what you will see is that even through the mortgage crisis of 2007, as well as the ups and downs of the past several years, Residential real estate as an investment has held its own very well.

I have compared the realized gains of both the average and median single-family home prices in Colorado Springs over the past 15 years and the chart will show you the 5-year, 10-year and 15-year gains to homeowners.  

Those numbers and more are why I totally believe in Residential real estate as an investment.  After all, in most cases, your home is your greatest asset.  And over the long haul, it’s likely to provide you an excellent return on your investment, as well as providing you with tax benefits not available to renters.

Any questions regarding my chart, please give me a holler.

And if you are wanting to move but think now isn’t the “right” time, you owe yourself a call to me.  There are a number of ways to make buying a home, either for yourself or for investment purposes, a reality but you won’t know unless we sit down and look at all the numbers.

I can be reached at 719.593.1000 or emailed at Harry@HarrySalzman.com and I look forward to talking with you soon.

 

WHY INVESTING IN real estate IN 2023 COULD BE A GOOD DECISION

Transactly 12.30.22

Here are some valid reasons from other professionals on real estate investment property purchases in 2023:

 

Strong rental demand

One of the most compelling reasons to invest in real estate is the potential for steady rental income.  With so many people opting to rent rather than buy, the demand for rental properties is strong, which often leads to higher occupancy rates and higher rent prices.  This trend is likely to continue in the coming years, as rising housing prices and tighter lending standards make it hard for many to become homeowners.

 

Potential for long-term appreciation

While it’s not possible to predict exactly how much a property will appreciate over time, real estate has a history of increasing in value over the long term, as I portrayed in the chart above. This is due to a number of factors, including inflation, population growth, and economic expansion.  By holding onto a  property for a number of years, you may be able to sell it for a significantly higher price than you paid for it.

 

Diversification of your investment portfolio

Investing in real estate can help diversify your investment portfolio.  While stocks and bonds are often a significant part of any investment strategy, adding real estate to the mix can help reduce risk and increase potential returns.  This is because the performance of real estate tends to be less correlated with other asset classes, meaning it can provide a buffer against market volatility such as we’ve seen in recent times.

 

Potential tax benefits

Owning rental properties can also offer a number of tax benefits.  For example, you may be able to deduct certain expenses related to your rental property, such as mortgage interest, property taxes and repairs.  As always, I would advise you to contact your investment and tax advisors to see how owning a rental property can provide you with these type of benefits.

 

Opportunity for passive income

Investing in real estate can also provide a source of passive income, which can be especially attractive for those who are looking to supplement their retirement income or simply want to generate additional income without having to work full-time.  By hiring a property manager to handle the day-to-day responsibilities of the property, you can potentially earn rental income without having to put in a lot of time or effort.

 

Ability to leverage your investment

Another advantage of investing in real estate is that it can be done with leverage, meaning you can borrow money to make a larger investment than you could afford to make with your own cash.  This can allow you to acquire more property or invest in more expensive properties, which can lead to higher returns.  However, it’s important to be mindful of the risks associated with leverage, such as the possibility of defaulting on your loan or losing your investment if the value of the property decreases.

 

Overall, investing in real estate in 2023 has the potential to be a good decision for those who are looking for a long-term investment with the potential for steady rental income, appreciation, and tax benefits.  While it’s important to carefully consider the risks and do your due diligence before making any investment, real estate can be a valuable addition to a well-diversified portfolio.

 

 

HOME SALES NUMBERS NATIONALLY IN 2022 WERE THE WORST SINCE 2014

The Wall Street Journal, 1.21-22. 2023, The Gazette, 1.21.2023

Home sales nationally last year were the lowest in nearly a decade according to a recent report from the National Association of Realtors (NAR).  This was the biggest annual decline since 2008, during the housing crisis of the late 2000’s.  

According to NAR, the median national home price for last year jumped 10.2% to $386,300 and it’s up 42% from 2019 before the ultralow interest rates and pandemic-fueled demand sent the market into a frenzy. That translates to a median $114,000 increase in housing wealth in three years.

“So, homeowners have done well during this housing (market) from 2019 through Covid until now,” said Lawrence Yun, chief economist for NAR.  “The one big negative for home sales is home prices, which have risen dramatically, much faster than peoples’ income.”

Mortgage rates more than doubled in 2022, climbing to a two-decade high of 7.08% in the fall with the Federal Reserve continuing to boost its key lending rate in a quest to cool the economy and tame inflation.  

Home sales slowed from the fast pace at the start of 2022 as the surge in borrowing costs limited the buying power of home hunters.

While rates have come down since the high of late last year, they are still significantly higher than the beginning of 2022.  

According to Yun, “Mortgage rates have fallen in the recent past weeks, so I’m very hopeful that the worst in home sales is probably coming to an end.  Maybe this latest monthly figure (from December) will be the cyclical low point.”

Homebuilders and sellers are offering incentives to potential buyers and cutting prices in response to the low demand.  And a measure of U.S. home-builder confidence rose this month, ending a 12-month streak of declines, according to the National Association of Home Builders.

Home sales typically lag during the winter months and pick up during the spring buying season.  While this was not the case in the last several years during the frenzy, getting back to “normal” seasonal based buying could see more homes on the market and more sales during that period this year.

Pricing and incentives are going to be very important in homes sales this spring and having a seasoned, knowledgeable real estate professional on your side will make the difference between a sale and disappointment.

That’s where I come in.  Having someone like me on your side can make the difference whether you are looking buy or sell.  Spring buying season will be here before you know it, so if you’re looking to buy or sell, give me a call and let’s map out your strategy early.  Knowing in advance your individual needs, wants and budget will make you more prepared as a buyer and understanding the true value of your present home will make you equally prepared as a seller.  I can help with both.  

Give me a call sooner than later and let’s see how we can make your Residential real estate wants and needs a reality.

 

AVERAGE LONG-TERM U.S. MORTGAGE RATE IS LOWEST SINCE SEPTEMBER

The Gazette, 1.20.2023

As I mentioned earlier, mortgage rates are down from their high in the fall of last year and are now at their lowest since September.  

This is a significant plus for the spring buying season and while home prices are still high, some sellers are lowering sales prices in order to attract potential buyers. 

Colorado Springs has been like the rest of the nation with low sales numbers but with interest rates hopefully on their way down, we are likely to see sales numbers go up. 

Important to note is that over the next few years Colorado Springs is getting some relocating companies that are bringing with them very high paid employees.  These folks will be looking for homes and will be able to afford them.  This is one of the reasons that while we’ve had a slow selling of homes for six months during the latter part of 2022, things are likely to pick up over the next year and into the foreseeable future.

 

COLORADO SPRINGS RESIDENTIAL real estate ANNUAL REVIEW OF 2022 AND 2023 FORECAST

ERAShields real estate, 1.2023

It is my pleasure to share with you some local data compiled by my company.  It provides you with a look back at 2022 and a forecast for 2023.  

I am reproducing one page below and to read the report in its entirety, click here.

If you have any questions, please ask. 

FYI….

Conventional and VA new loan limits for El Paso County are now $726,200.

And VA can exceed that when a buyer doesn’t own property with the VA, with no down payment required.

 

FHA loan limits:

El Paso and Teller Counties:  $517,500

Pueblo and Fremont Counties:  $472,030

Denver areas:  $787,750