Real Estate Information

January 25, 2022

 

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.

 

 

LOW INTEREST RATES ARE ON THE RISE AND SO IS HOME APPRECIATION.  THE TIME TO JUMP IN IS NOW…BUT TIME IS NOT ON YOUR SIDE FOR MUCH LONGER.

I rarely begin my eNewsletter on a less than positive note, but I hope this headline got your attention.

I’ve been saying for a while now that while home appreciation is continuing its upward trend, the low mortgage interest rates of yesterday are soon to be history.  And recently, the Federal Reserve has indicated that they intend to raise their rates for banks four times this year to help curb inflation. Mortgage interest rates are sure to follow, and in fact have been rising for the last month.  It’s doubtful we will see the historically low rates again in our lifetime, if ever. 

Today’s rates are still a bargain compared to rates of even five or six years ago, so if you have even considered a buying a home, there’s not any time to waste. Here are some of my thoughts to consider if you are thinking of getting into the market:

 

• As of Sunday, there were 308 home listings for existing homes in Colorado Springs and another 111 in the other areas of El Paso County.   That’s a total of 419 single family detached homes for sale—a less than two-week supply!

 

• Interest rates are slowly rising—the 30-year fixed-rate ones are currently the highest they’ve been in two years--and will continue to rise until inflation is curbed.

 

• Rental rates are higher than ever and will continue to rise with demand.  It’s proven to be cheaper to be a homeowner than a renter if possible and sometimes that means modifying your expectations in order to purchase a home now.  Home appreciation like that we have been experiencing will likely provide the equity you will need when you are ready to upgrade or trade up.

 

• I believe that we will continue to experience home appreciation in Colorado Springs of between 12-14% in 2022 and this presents a great opportunity for investors to consider buying rental properties.  If you’ve looked at the volatility of the stock market in recent days you can understand the prudence of this.  The huge drop this past week, although with a quick recovery of sorts yesterday, illustrates this point.

 

• Costs of new construction materials such as lumber, cement, copper, aluminum, cotton and more continue to rise and with them the price of new homes.  Locking in a home now, if that is the direction you wish to go, is essential.  Some builders are not even quoting exact prices, but the sooner you begin the search the sooner you will at least be on the list for a new home.

 

• Single family/patio homes in Colorado Springs and El Paso County sold for 103.2% of their listing price for all of 2021.  In Teller County that number was 101.3% of list price.  Your present home will likely sell quickly and for more than you might expect.

 

• Colorado Springs is going to continue to be a favored place for companies and individuals when it comes to relocation.  I see no end to this trend and expect it to continue more than ever due to the work-from-home situations that allow folks to work from wherever they choose.  Many are choosing and will continue to choose Colorado Springs.

 

Let’s discuss interest rates.  Yes, they are going up.  However, they are still low and when you consider the appreciation, you will make back the difference faster than any ever.  A home represents one of the biggest investments most families ever make, and today’s home appreciation will likely provide a far better return than day trading or short-term investments.  

A home is a long-term investment which will provide you and your family personal enjoyment.  Or it can be a rental home for investment purposes which will provide not only monthly income but an appreciation considerably better than the stock market.  In fact, a number of my investment buying clients are supplementing their retirement income with the income from their rentals, while that home is gaining appreciation year after year.

Read further in this eNewsletter to see more highlights of what’s happening now and is predicted to happen in Residential real estate as 2022 progresses.

And, if you’re ready or even thinking of being ready, pick up the phone and give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s discuss any and all possibilities for making your Residential real estate dreams come true.

 

AMERICANS CHOOSE real estate AS THE BEST INVESTMENT

Keeping Current Matters, 1.21.22

As I mentioned earlier, more and more Americans are choosing real estate as “The Best Investment”.  This infographic illustrates it well:

 

Some highlights:

• According to a Gallup poll, real estate has been rated the best long-term investment for eight years in a row.

 

• real estate tops the list because you’re not just buying a place to call home—you’re investing in your future.  Real estate is typically considered a stable and secure asset that can grow in value over time.

 

• If you’re ready to invest in your family’s future, give me a call sooner than later and let’s get started!

 

WHAT 2022 MEANS FOR HOMEBUYERS

Associated Press, 1.23.22

(Excerpted from an interview with Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):

 

How do you see the housing market’s trajectory shaping up this year?

 

Mortgage rates will definitely be higher, which means that people who were barely able to qualify last year will not be able to do so this year.  Combine that with some increase in supply. Builders have the profit motive.  Lumber prices and other materials costs are rising, but they’re simply tacking on those additional costs to consumers, who are willing to buy.  Price growth (nationally) will be something around 5% in 2022, which will be a very normal rate of increase.

 

Fair to say homeowners who are selling will still have an edge on buyers nationally?

 

We’re in a housing shortage of roughly 3 or 4 million.  And given that homebuilders can probably at the maximum put up maybe 2 million homes, more likely 1.7 or 1.8 million homes (a year), this housing shortage will persist this year and probably linger on somewhat next year.  Hence, the market in 2022 will still favor sellers.

 

How high do you see mortgage rates going this year?

 

My best guess at the moment is about 3.7%.  It could be a little lower or a little higher, but it’s going to certainly be higher than the 3% people enjoyed last year.

 

To what degree will higher rates dampen home sales?

 

Rising home prices have hindered affordability, but now rising interest rates are another thing that will begin to shave off some of the demand potential from first-time buyers.  My official forecast for home sales this year is they will come down about 2% from last year.

 

Has the pandemic led to any enduring changes to the way Americans buy and sell homes?

 

The pandemic will come to an end.  Hopefully, the sooner the better.  But the work-from-home situation, that development is here to stay.  That will be the key factor driving the housing market preference and demand.

 

What’s the biggest worry you have about the housing market now?

 

The concern is really first-time buyers.  If we don’t increase supply sufficiently, we will have a situation where the country becomes more divided.  Homeowners are feeling very wealthy.  Renters are feeling very frustrated, beginning to see accelerating rents.  So, we need to ensure that housing supply continues to increase.

 

ERA SHIELDS “2021 ANNUAL REVIEW OF COLORADO SPRINGS RESIDENTIAL real estate AND 2022 FORECAST

I want to share with you the “2021 Annual Review and 2022 Forecast” compiled by my company.  

Some interesting facts taken from the report:

 

 “Fun Facts from 2021 (El Paso County):

• Most expensive sale—an amazing home near The Broadmoor sold for $8,000,000
• Largest home sold—The $8,000,000 home was also the largest at 16,594 square feet
• Cheapest home sold—A single-wide in Ramah on a foundation sold for $52,000
• Smallest home sold—In old-town Fountain, a 400 square foot home

 

“Quick Hits from 2021 (El Paso County)

• Number of units sold was an all-time high at 14,803 (up 1%)
• Average sales prices for the year were $487,876 (up 18%)
• Median sales price was $431,250 (up 18%)
• Inventory levels for the year averaged just 2 weeks
• New home permits hit 2862 for Colorado Springs (down 3%)
• 391 homes sold for $1,000,000 or more (just 38 in 2015)
• 73 homes sold for under $200,000 (3,736 in 2015)
• Mortgage rates hit an all-time low of 2.65% in January, and peaked in April at 3.18%

You can click here to read the 12-page report, along with charts, in its entirety.  If you have any questions, please give me a holler.  

 

January 7, 2022

 

HARRY’S BI-WEEKLY UPDATE

         A Current Look at the Colorado Springs Residential real estate Market

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

 

 

HAPPY NEW YEAR…AND WELCOME TO 2022

As we bid adieu to a another unprecedented but better to handle year, here’s wishing you a very Happy, Healthy 2022.  While we are not yet, and maybe will never, return to what we used to consider “normal”, at the very least most of us are learning to navigate in this “new normal” as best we can.

Two years ago, I wrote about my “2020 Vision” and predicted that local home appreciation would remain high, new construction would become a viable choice for many, and interest rates appeared likely to remain low for the foreseeable future.  

All of this has remained true for the last two years…and for many of the reasons I mentioned.  Those included the historically low inventory of existing homes for sale, the influx of new businesses and their relocated employees, and the high rental rates which would drive more folks to homeownership.  And millennials are now aging into their prime home-buying years as well. 

More than 18,100 homes were sold in the Colorado Springs area in 2021—the largest number ever and almost double the 9,146 sold in 2012.  And home prices in the area have more than doubled over the last decade as well.  The year-end median home price in 2012 was $209,700.  In 2021 the year-end median home price was $450,000.  And we have consistently done considerably better than the U.S. housing market in general.

The housing market has been strong thanks to rock-bottom mortgage rates, a limited supply of homes on the market and pent-up demand from consumers locked in last year due to the pandemic. 

In 2021 Americans borrowed more than ever to buy homes.  Lenders issued $1.6 trillion in purchase loans last year according to estimates by the Mortgage Bankers Association.  That’s up slightly from $1.48 trillion in 2020 and above the previous record of $1.51 trillion in 2005.  

The mortgage boom is another reflection of the low interest rates, as well as the desire for bigger homes due to the pandemic.  Also, many folks were able to build up savings during the pandemic and a lot of that went into housing.

However, as the saying goes, “all good things must come to an end”, and while home prices are predicted to keep rising, interest rates will soon be joining them.

I’ve been telling you for some time now that I couldn’t predict “when” interest rates would rise, but that they weren’t going to stay at the historical lows forever.  Well, Wednesday was a wakeup call when the Federal Reserve announced that interest rates would be rising as soon as April of this year.  And within minutes the Dow Jones Index dropped more than 650 points!  While they didn’t mention “mortgage” interest rates, the National Association of Realtors (NAR) has forecasted that mortgage interest rates will also rise.

What does that mean for you?  For most, your home will likely continue to be your largest and fastest growing investment.  That’s great news for homeowners who have low interest rates and are happy with their present living situation.  

For others who have waited for various reasons but still have the desire to sell and trade up or purchase for the first time or for investment purposes, this news might not be so welcome.

As a result of the pandemic, many are still working from home (WFH) and home schooling. Both have changed what folks are looking for in their living situations and has driven a lot of home renovation and ideas of what is not only needed, but wanted, in a new home.  As you might imagine, larger kitchens, home offices, private spaces and outdoor entertainment areas continue to be popular.

And with WFH becoming so prevalent even after companies have started to return to offices, there has been an exodus from the bigger cities toward places with access to “the great outdoors”.  As most of you can attest, Colorado Springs most certainly has that…and so much more.  We have had a number of new companies relocate here this year and there are more to come.

As I mentioned earlier, folks coming here all need housing, either home purchases or rentals, and this is adding to the home shortage we’ve experienced for the last several years.  Those moving from states with very high home prices are coming in and paying cash and participating in bidding wars to get what they want.  This makes it more difficult for locals looking to move, but it’s still possible to find what you want, need, and can afford. 

It just takes more advanced planning and faster decision making. And of course, a professional, seasoned, and knowledgeable real estate agent like me on your side.  It’s easy to see why companies such as Zillow have gotten out of the “selling” aspect of real estate.  In today’s market it’s not for the timid or inexperienced.  

My almost 50 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.

Historically low interest rates will be going, going, gone and with today’s inflation it’s doubtful we will see those rates again, if ever.  If you’re in the market, or even considering your options, time is no longer on your side if you delay.

If you’ve even considered selling your present home, now is the time.  You’ve probably got more equity than you might imagine and when coupled with the “current” low interest rates—it might just make sense for you to make a move now--and most likely you can ‘trade up”.  It’s the monthly payments that you need to consider, not the price of the new home.  At today’s interest rates it’s possible that you can get “more” on a different home for not much more than you currently pay.  

If you are curious as to what your present home might be worth today, simply call me for an appointment to view your home and provide you with comparables.

A new year brings with it a lot of new hopes and dreams. If Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

DECEMBER 2021

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

Here are some highlights from the December 2021 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 13.  For condo/townhomes it was 16.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.4% and for condo/townhomes it was also 101.4%.  

Since these are year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2021 to 2020.  

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 December 2021 to December 2020 for All Homes in PPAR:                      

                        Single Family/Patio Homes:

·       New Listings were 995, Up 6.0%

·       Number of Sales were 1,443 Up 4.9%

·       Average Sales Price was $505,852, Up 15.7%

·       Median Sales Price was $450,000, Up 18.4%

·       Total Active Listings are 659, Up 24.3%

·       Months Supply is 0.5, Up 5.0%

 

Condo/Townhomes:

·       New Listings were 140, Down 13.0% 

·       Number of Sales were 219, Down 1.4%

·       Average Sales Price was $351,825, Up 19.2%

·       Median Sales Price was $335,000, Up 15.5%

·       Total Active Listings are 89, Up 30.9%

·       Months Supply is 0.4, Down 22.9%

 

The Cumulative YTD Summary: (comparing Jan-Dec 2021 to Jan-Dec 2020)

                        Single Family/Patio Homes:

• New Listings were 19,654, Up 4.8%
• Sales were 18,159, Up 4.7 %
• Average Sales Price was $491,768, Up 18.4%
• Volume was $8,930,015,112, Up 22.4%

 

Condo/Townhomes:

• New Listings were 2,795, Up 2.8%
• Sales were 2,688, Up 6.8%
• Average Sales Price was $327,364, Up 19.7%
• Volume was $879,954,432, Up 27.9%

 

Now a look at more statistics…

 

DECEMBER 2021 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 Up 3.2%

 

• Median Sales Price for All Properties was Up 18.6%

 

• Active Listings on All Properties were Down 6.8%

 

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 FORECAST FOR 2022

Keeping current matters, 12.17.21, CNN, 12.27.21 

 

Experts are saying:

 

• No more record low mortgage rates.  Lawrence Yun, chief economist for NAR expects the 30-year fixed mortgage rate to increase to 3.7% by the end of next year, but he noted that this will still be lower than the pre-pandemic rate of around 4%.

 

• Inventory will remain tight.  Even as more properties became available as the spring buying season heated up this year, there were also more people looking to buy, creating fierce competition and pushing prices skyward.  While the inventory picture is expected to improve in 2022, it will remain limited and grow only 0.3% this year, according to a Realtor.com forecast.

 

• Prices will keep rising.  Home prices rose nearly everywhere in 2021 and while existing homes were up 13.9% nationally (ours were considerably higher), new construction prices nationally were about 19% higher than a year ago.  That was another record.

A group of 20 top economic and housing experts brought together by NAR projected that median home prices nationally will increase by 5.7% in 2022.  (I feel that Colorado Springs will be double that number.) The NAR survey participants said they expect the housing market and broader economy to normalize this year as the Fed tries to tame inflation.

 

• First-time buyers will continue to face challenges.  The prevalence of all-cash offers, few available homes and skyrocketing prices pushed many first-time buyers out of the market last year.  By the end of November, the share of first-time buyers had fallen to 26% from 32% a year before, the lowest level since NAR began tracking in 2008.

“We are creating a divided society”, said Yun.  “People don’t feel like they are participating in what they consider to be American life through homeownership.  All their work to build up savings can feel less meaningful in the face of rising prices.”

 

So, once more with feeling... if you’ve even thought about a new home, there’s no time to waste.  Time is money, as we all know, and waiting to make a move is most definitely going to hit you in the wallet.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 12.23.21

As always, I'm providing you with the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

Please click here to read the report in its entirety and if you have any questions, please give me a call.

 

December 22, 2021

 

HARRY’S HOLIDAY HUMOR

(The way houses are selling here it’s almost not funny, but I couldn’t resist!)

 

 

       

December 21, 2021

 

HARRY’S HOLIDAY GREETING

 

 

December 6, 2021

 

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.

 

 

JUST LIKE CHESS…BUYING AND SELLING A HOME TODAY REQUIRES SOME STRATEGIC MOVES

While it’s always been important to have a strategy for your individual situation when you want to buy, sell, or purchase for investment, today’s Residential real estate market requires strategic moves that even a master chess player might find interesting.

This is normally a “quiet” time in the housing market with the holiday season already underway.  However, nothing in the past couple of years has been “normal” and with home prices continuing their upward climb, and mortgage rates likely due to increase soon, folks who might have waited in the past are on the move or getting ready to do so.  

There continues to be a shortage of existing homes for sale even though there are more than a year ago.  New home construction is booming, but prices keep escalating due to lumber increases once again, as well as a shortage of materials.  Demand is so high that builders are “taking names” and the fortunate buyers-to -be have no more than half an hour to make a decision in some cases.  

Needless to say, stress levels are high for both buyers and sellers and that is not likely to change any time soon.  

As you will see later in this eNewsletter, Colorado Springs has gone from # 20 to #14 in the top 100 of the Federal Housing Finance Agency’s third quarter report of “Metro House Price” changes.  

That just tells us what we already know—Colorado Springs and its fabulous work/life balance options is no longer our “little” hometown.  We are growing steadily, and the end is nowhere in sight.  Good for the city’s economy, good for all the new and exciting times to come, but not so good for finding a home at a low price point.  And that hits first time buyers even harder than most.

The good news for current homeowners is that your present home is more than likely worth a lot more than you might imagine.  Therefore, your equity will help considerably with the down payment on a new place.  So even though you will be paying more for the next home, at today’s still low interest rates it’s possible that your monthly output will not increase by much.

The bright side in all of this?

Me, of course.  

With my 48+ years in the local Residential real estate arena, coupled with my Investment Banking background, I’ve mastered the “strategic moves” necessary to wade through the current “battleground” per se. 

I’ve experienced more than most and can help make the buying and selling process a bit less painful, if possible.  I used to say I could make it fairly “stressless”, but unfortunately that’s no longer a given.  I continue, however, to do my best to make purchasing what is often your most valuable investment as pleasant an experience as I am able.  

They say the “early bird gets the worm” and those who are starting now rather than waiting for the traditional “spring buying season” will have a head start in making their Residential real estate dreams come true.

To get the ball rolling early, just give me a call and together we can devise the best plan for your individual family situation. 

I can be reached at 719.593.1000 or by email at Harry@HarrySalzman.com  and I look forward to putting my special brand of customer service to work for YOU.

 

NOVEMBER 2021

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

Here are some highlights from the November 2021 PPAR report.  The format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was 11.  For condo/townhomes it was 13.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.8% and for condo/townhomes it was 102.2%.  

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 November 2021 to November 2020 for All Homes in PPAR:

                        

                       Single Family/Patio Homes:

·       New Listings were 1,201, Up 9.0%

·       Number of Sales were 1,466, Down 1.1%

·       Average Sales Price was $507,507, Up 18.3%

·       Median Sales Price was $450,000, Up 18.4%

·       Total Active Listings are 855, Up 26.7%

·       Months Supply is 0.6, Down 24.7%

 

Condo/Townhomes:

·       New Listings were 198, Up 19.3% 

·       Number of Sales were 229, Down 3.8%

·       Average Sales Price was $336,208, Up 22.1%

·       Median Sales Price was $325,000, Up 23.5%

·       Total Active Listings are 115, Up 49.4%

·       Months Supply is 0.5, Down 13.1%

 

Now a look at more statistics…

 

NOVEMBER 2021 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 9.3%

 

• Median Sales Price for All Properties was Up 17.6%

 

• Active Listings on All Properties were Down 3.4%

 

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

 

COLORADO SPRINGS RANKS EVEN HIGHER IN THE Q3 FHFA HOUSE PRICE INDEX

FHFA, 11.30.21

The recently published FHFA House Price Index for third quarter 2021 lists Colorado Springs as #14 out of the top 100 in house price changes during that quarter.  We moved up from #20 in the Q2 report and I would expect us to keep moving up in the future.   

House prices in all 50 states and the District of Columbia rose between the second and third quarter.  Of the nine census divisions, the Mountain region, home of Colorado Springs, recorded the strongest four-quarter appreciation.  

Here is a copy of the Colorado Springs changes:

If you are interested in seeing the entire list of 100 cities in ranking order, please click here.  And, if you have any questions, you know who to call.

 

LOAN LIMIT INCREASES FOR 2022

The new conforming/jumbo cut-off on mortgage loans is $647,200.  This was a surprise since most lenders expected it to be $625,000, so good news for buyers.

VA loan cutoffs will be at $647,200 as well.

FHA loans in El Paso and Teller counties will be $460,000, while Pueblo will be $420,680.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 11.29.21

As always, I’ve included the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the National and Colorado Springs levels.  

You can click here to read the entire report and if you have any questions, please give me a call.

 

IS THIS A GOOD TIME TO BUY OR SELL A HOUSE?

UBS, 11.2.21, Keeping current matters, 11.18.21

These are questions I’m asked a lot.  My answer is always the same—if you are wanting to move and the numbers can work for you, it’s always a good time to buy and or sell.  In most cases, the decision to purchase a home is one of the most emotional, difficult and financially impactful investments one can make.  

And while I strongly believe each client’s specific needs, wants and budget contribute to the overall answer, it’s still important to consider timing when possible.

The information from several articles I recently read can help answer these questions as well.

 

Is this a good time to buy a house?

Here are five questions that UBS asks clients to consider:

• Is the house being purchased for shelter, a long-term investment, or for a fix and flip?
• What is the anticipated time horizon for living in the house?
• What are the individual’s near-term, medium-term, and long-term liquidity needs?
• Will purchasing the house significantly change one’s lifestyle?
• Should the house suffer a significant decline in value—say 20%--will that change one’s lifestyle?

While there are no right or wrong answers to those questions, answering them tends to remove a substantial emotional component of the purchase decision.  For example, someone who is buying a house for shelter purposes, anticipates owning it for an extended period of time and has the liquidity profile to own the home and maintain their lifestyle, can be less focused on what is the “exact right time to buy”.

On the other hand, someone who is considering a fix and flip, is more liquidity constrained and risks a lifestyle impairment should they not be able to sell the house in a timely manner, might want to reconsider the purchase option.

In addition, it’s also crucial that a house be factored into one’s overall asset and liability profile.  It is very important to include a primary residence in all of your long-term financial planning scenarios.

In short, again, there is no simple answer about the “right” time to buy a house.  Working closely with your financial advisors and a seasoned professional like myself will help you get the answers for your personal situation.

 

Is this a good time to sell a house?

Putting your home on the market now will get you one step ahead of your neighbors who might be waiting for the traditional “spring buying season”.  If you want to stand out from the crowd, this holiday season is the best time to make sure your house is available for buyers.  

The number of existing homes for sale is still historically low and putting your home on the market now will give you the best chance to be in front of buyers competing for these homes.  

As mortgage rates begin to increase next year, more folks will be entering the selling market before the current frenzy ends.  By selling now, your home will get the most exposure and you will be ahead of the game.

Even though it’s the holiday season, don’t think there aren’t a number of potential buyers who are out looking every day.  Today’s buyers are still dealing with a limited number of homes for sale and are competing with each other for their dream home.  When that happens, if your house is one of the few on the market, you may find your home in a bidding war and possibly going for over the asking price.

Creative offers are coming in for most homes these days and chances are you might get one that will waive contingencies and will pay the difference, if any, over the home appraisal.  Making your move to list your home today will get you in ahead of those who are waiting until after the holidays.

 

These are just some of the things to consider when wondering about a good time to buy or sell.  And once again, the best answer I can give you is that if, after all considerations, the time is right for YOU, then most ANY time can be the right time.

November 24, 2021

 

HARRY’S BLACK FRIDAY SPECIAL

 

 

 

November 23, 2021

 

        

November 22, 2021

 

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.

 

 

SOME DAYS THERE SEEMS TO BE MORE QUESTIONS THAN ANSWERS…

You know, after 48+ years in local Residential real estate, along with my Investment Banking background, I’ve become somewhat of an expert in these arenas.  Some days I wish I had a crystal ball because oftentimes there is no definitive answer to a lot of the questions I’m asked.  

It’s easy for me to understand why Zillow ended its iBuying department.  Buying and selling Residential real estate is not for the timid…or for those with limited experience.

Are prices going to continue to climb?  Are interest rates going to go up as well?  Is it a good time to purchase a home for investment purposes?  Am I better off looking at new construction because of the lack of existing homes for sale? Is this the best time to sell my present home and trade up?

Those are just a few of the questions I field daily.  If I knew all the answers to those inquiries, it sure would make life easier for not only me, but for my clients as well.   

However, I do have some answers that have remained true for as long as I’ve been working in Residential real estate.  

All answers need to first be based on LOCAL statistics.  When you see on national news that home prices are going up or down—always remember they are talking about the U.S.A. in general.  As I’ve been saying for quite some time now, Colorado Springs as a city is seeing spectacular growth.  When the housing crisis enfolded in 2007-8, we were not hit nearly as hard as the rest of the country and thus were able to recover at a faster pace.  

During the recent pandemic as folks were leaving big cities or starting to work from home (WFH), Colorado Springs was the choice of many.  

As more and more companies are moving here and relocating employees with them, those folks are needing places to live as well. 

When you add that to our excellent work/life balance…well, I think you get the picture.

While looking at the local picture is important, the primary place to look is at your individual situation.  

When I’m asked, “Is now good time to buy or sell?”, I always answer the same way.  “If it’s right for YOU, then it’s a good time to buy or sell.”  There’s no standard formula for buying and selling a home and that’s why I spend time with each client to determine what is best for their situation.  

It’s important to find out what someone is looking for and determine why they want to buy, sell, or invest in a home as everyone has different wants, needs and budgets. Those type of questions need to be addressed upfront and we can proceed from there.

Yes, it’s not easy out there in Residential real estate territory these days, but when you’ve got me on your team, you’ll win in the end.  It may take longer than usual to find exactly what you want, but if there’s any way possible, I will work to make it happen for you and your family.

And the best move you can make at present is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered. If I don’t have the answer, I sure do know where to get it, and that’s as important as “knowing it all”.

I look forward to speaking with you.

 

COLORADO SPRINGS HOME PRICES JUMP HIGHER IN THIRD QUARTER 2021…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 11.10.21 

Median prices of single-family homes across the nation rose double-digits for Quarter Three 2021 in 99% of the 183 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 16.0% to $363.700.

Colorado Springs surpassed that, with the median price of single-family homes jumping 18.6% to $441,200 during the third quarter of the year.  Prices reflect detached, single-family and patio homes but not townhomes or condominiums. 

The median price in the Springs ranked 29^th highest of the cities surveyed.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver and Boulder 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 183 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.

 

ERA SHIELDS “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW

ERAShields, 10.31.21

As always, I am pleased to provide you with the most current local information.  This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.  

Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety.  

HOMES SELLING IN ONE WEEK, FORCING BUYERS TO TAKE RISKS

The Wall Street Journal, 11.12.21

This recent article wasn’t news to me, as I’ve been encountering similar situations for over a year now, but it’s interesting to see that buyers all over the country are also having difficulty in purchasing existing homes for sale in this seller’s market.

According to a survey by the National Association of Realtors, “Homes sales between July 2020 and June 2021 sat on the market for a median period of one week before going under contract.”  That is down from three weeks a year earlier and marks a record low in data going back to 1989.

This rapid turnover helps explain how the number of homes sold rose to multiyear highs during the Covid-19 pandemic, even as the inventory of homes for sale remained so low.

The pandemic sparked the biggest housing boom in more than a decade…for many of the reasons I mentioned before.  

Supply is still constrained, and buyers are having to pounce quickly once they find what they are looking for.  As I’ve told you in previous articles, many buyers have waived their rights to terminate a contract because of a low appraisal or unfavorable inspection.  In fact, several my buyers have bought homes without ever seeing them in person.  

This has been especially true of new construction where there are only so many lots released at a time and buyers must get in line to purchase.  I’ve gone to those sites for my clients and selected lots and home elevations, and we have communicated through Zoom calls so the clients can make a quick decision based on my input.  This is a service I provide at no additional cost to the buyer and can make a difference, especially when time is of the essence.  

One of my recent clients did not get their first choice due to not committing to the lot immediately.  They were able to get their second choice, but the homebuilder required a commitment on the phone with a signed contract emailed immediately thereafter. 

Fortunately, I have good working relationships with most local builders but even that doesn’t always get me to the front of the line.  Lately it’s been via a lottery type of situation and buyers only have x amount of time to commit.  

Whether it’s new construction or purchasing an existing home, the most important thing is knowing your wants, needs and budget before even starting to look.  

After you make those decisions, the next best one is to call me and get the ball rolling.  It’s going to take longer than you might expect and the sooner we start, the sooner you can be living in the home of your dreams.

 

HARRY’S JOKE OF THE DAY:   

 

 

Even though it’s a “corny” joke, there’s a double meaning in here.  

As we approach the Thanksgiving holiday, I always start by giving thanks for my family and you, my clients and friends.  

Have a safe and happy Thanksgiving.

November 4, 2021

 

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.

 

 

I HAD INTENDED TO INCLUDE THIS WITH MY “JOKES OF THE DAY” BUT…

…unfortunately this crazy Residential real estate market is in no way a joke.  Every time I think we have reached our “new normal” it keeps changing.

I was hoping that when we started to have a few more existing homes for sale that most of those bidding wars and winning bids over list price would settle down a bit.  But I was wrong.  Let me give you a recent example.

Last Thursday I listed a home for $540,000.  When the showings began that day, I received a call from a broker who wanted to make an offer, sight unseen, for their buyer.  I let that broker know that the seller was not going to accept any offer immediately.  He said that was fine and that his buyer would put in a purchase price increase clause that would allow his bid to go $3,000 higher than the highest bid--to a high of $605,000.

As the day progressed and showings began, we received a number of offers.  And then the bidding war began.  Since the first offer had indicated they were willing to bid $3,000 over the highest bid, that offer was accepted on that same day one!  Selling price?  $598,000. 

Yes, you read that right.  The home sold for $58,000 more than the asking price in one day—that’s 10% OVER the listing price.  And the best news for my seller was that the buyer was putting down more than 50% cash, thus negating the need for an appraisal which possibly could have come in at under the selling price!

And the moral of this story?  

If you’ve even considered the possibility of selling to trade up or move to a new neighborhood, NOW is the time for more reasons than the above.

Mortgage interest rates which have been staying at historical lows are projected to rise.  I can’t tell you when that might happen, but most economists are saying the rates can’t stay this low.  

Home prices are continuing to rise which means two things if you are looking to move.  First of all, your present home is more than likely worth more than you might imagine, thus providing you extra equity to put into your next one.  

Therefore, even though your next home will also likely cost more, the size of your down payment could possibly help keep your monthly output close or not too much more than what it is currently.

The downside at the moment is still the shortage of existing homes for sale.  So you really do need to know where you intend to move prior to listing your present home.  It’s possible to request to lease your home back from the buyer for a certain period of time, but that is not always an option.

I wish I could tell you that new home construction is the answer and in a number of cases it is, but I’ve lately seen the implementation of “lotteries” in order to deal with only so many available lots and oh, so many potential buyers.  

Homebuilders are working as fast as they can to rectify this, but at the moment it’s a bit hard to navigate through those “wars” as well.  And if new home construction is what you are seeking, I can help you there as well, without any additional cost to you.

The one bright side in all of this?

Me, of course.  

With my 48+ years in the local Residential real estate arena, coupled with my Investment Banking background, I’ve experienced a lot and can help make the buying and selling process a bit less painful, if possible.  I used to say I could make it fairly “stressless”, but unfortunately that’s not the case at present.  I continue, however, to do my best to make purchasing what is often your most valuable investment as pleasant an experience as I am able.  

So, if you’re ready…I’m willing and able to help you make your Residential real estate dreams come true.

The very best move you can make right now is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  

I look forward to speaking with you.

 

OCTOBER 2021

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

Here are some highlights from the October 2021 PPAR report.  The format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 11.  For condo/townhomes it was 8.  

Also in El Paso County, the sales price/list price for single family/patio homes was 102.0% and for condo/townhomes it was 101.9%.  

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 October 2021 to October 2020 for All Homes in PPAR:

 

                        Single Family/Patio Homes:

·       New Listings were 1,596, Up 2.4%

·       Number of Sales were 1,641, Down 5.3%

·       Average Sales Price was $510,180, Up 18.0%

·       Median Sales Price was $446,000, Up 16.3%

·       Total Active Listings are 1,048, Up 19.0%

·       Months Supply is 0.6, Down 3.6%

 

Condo/Townhomes:

·       New Listings were 248, Up 7.8% 

·       Number of Sales were 250, Down 3.8%

·       Average Sales Price was $326,622, Up 18.3%

·       Median Sales Price was $326,272, Up 24.5%

·       Total Active Listings are 129, Up 27.7%

·       Months Supply is 0.5, Down 7.2%

 

Now a look at more statistics…

 

OCTOBER 2021 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 7.0%

 

• Median Sales Price for All Properties was Up 16.8%

 

• Active Listings on All Properties were Down 9.1%

 

You can click here to read the 15-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update.  I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area in general:

 

NATIONAL housing market PREDICTIONS FOR 2021 & 2022 

Keeping Current Matters, 10.26.21

Despite all the ups and downs this past year, one thing we know for sure is that the real estate market in 2021 not only met expert predictions, it surpassed them and broke records along the way.

That, of course, brings up the future.  Will the 2022 housing market continue to follow that same trajectory, or are we facing a possible downturn?

The following is a deep dive into what leading real estate experts are projecting for the final quarter of 2021 and what to expect in 2022 so you, as a potential buyer and/or seller have the knowledge and confidence you need to be successful.

As always, please remember that these predictions are generalized on the national level, and when I write about trends it is more localized.  For example, when you read about unemployment further down, remember that Colorado Springs was not hit nearly as hard as a lot of the country, and we have rebounded at a faster pace.  Our home prices have risen at a pace higher than much of the USA and due to the desirability of working and living here, we will undoubtedly continue to outpace a good portion of the country in the coming year and more.

 

housing market FORCAST:

 

• Interest rates are rising but projected to stay low.  This is good news because affordability reached one of the highest levels in 30 years due to the low rates.  And as I mentioned earlier, although prices continue to rise, homes are still affordable to purchase, although slightly less so than earlier this year.

 

• Home sales are slowing but still strong.  While the last two years have been some of the craziest I’ve seen during my 48+ years in the business and home sales are slightly slowing, that definitely doesn’t mean the market is slow.  It’s simply returning to a more balanced one than we have been witnessing these last few years.

 

• Home prices are appreciating slower too.  The constant battle between high buyer demand and low inventory this year led to a surge in home values that left a number of folks scared we were headed for another housing bubble.  And while this year’s price escalation has been a bit excessive, it was just a result of Econ 101—high buyer demand coupled with extremely low supply.  As inventory starts to rise, experts anticipate price appreciate will slow.

• Foreclosures will happen—but won’t lead to price declines.  The massive wave of unemployment caused by the pandemic led many homeowners across the country to enter mortgage forbearance.  While unemployment is slowly but surely declining ahead of expectations, it will be awhile for much of the country to reach the pre-COVID levels.  This will cause foreclosures to rise.  Experts don’t anticipate this will lead to anything resembling the foreclosure crisis of 2008 and they don’t expect it to lead to the major home value depreciation that followed.  (remember that I’m reporting “national” news and that Colorado unemployment rate is again quite low).

​

IS THE housing market GOING TO CRASH BEFORE 2021 ENDS?

 

The answer, according to top real estate experts, is a big NO.  While memories of the housing crash of 2008 still linger on the minds of many buyers and sellers, today’s market conditions resemble nothing close to what caused it.

Home price appreciation may be high but again, it’s a result of supply and demand.  The foreclosure situation should be balanced out by the large amount of equity homeowners currently have which means they can choose to sell rather than foreclose.

Plus, while affordability may be decreasing, historically speaking it’s still high compared to most other years.

 

WHAT DOES THIS MEAN FOR BUYERS AND SELLERS FOR THE REST OF 2021?

 

There is still a lot of motivation for both buyers and sellers in today’s market and that’s not expected to change in the next couple of months.  

With both inventory and mortgage rates remaining low, both sides of the real estate transaction stand to benefit from making a move before the end of the year.

real estate is still strong and waiting until next year could mean losing out on a less competitive market and better affordability—the two big factors positively impacting buyers and sellers today.

 

2022 housing market PREDICTIONS

 

Here’s what industry experts are saying about what they anticipate for the 2022 housing market:

 

HOME PRICES

 

It is important to remember again that the 2021 market was anything but normal, and that escalating home values were a direct result of the record-low inventory.  Experts predict that the inventory situation should improve in the coming year, stabilizing price appreciation across the nation.

But will home prices depreciate in 2022?  More than 100 industry experts don’t think so.  Instead, they are projecting a more modest appreciation of 5.82% nationally in the next 12 months compared to the 11.74% rise seen nationally on average in 2021. 

 

MORTGAGE RATES

 

In case I haven’t mentioned it enough, the past year saw the lowest mortgage rates in the history of real estate.  So, if you are waiting for those rates to come back down or go down more, you may be waiting a very long time.

While homes right now may be less affordable than they were a year ago, they’re still extremely affordable.  

If you look at the 30-year mortgage rate chronicled by Freddie Mac, you can see the average rates by decade:

 

• 1970’s:  8.86%
• 1980’s:  12.7%
• 1990’s:  8.12%
• 2000’s:  6.29%
• 2010’s:  4.09%

 

While experts don’t project that mortgage rates will rise a huge amount, any increase would mean an increase in monthly mortgage payments.  A couple of decimal points may not seem like a lot to most, but it could make or break a buyer’s budget.

If you play the waiting game, a rise in mortgage rates coupled with the continued home price appreciation means just one thing—paying more for the same house you could buy now. 

 

HOUSING INVENTORY

 

Inventory has been the biggest player in the anything but ordinary real estate market of the past two years.  

With the bidding wars and such going on you might be wondering if housing inventory will increase in 2022.  The good news is that there are many factors that lead industry experts to anticipate a rise in homes for sale.

Here’s why:

 

• Homeowners may be more confident putting their homes on the market as COVID numbers continue to drop and more people become vaccinated.

 

• Many of the obstacles halting or slowing new construction start to fade and those homes come on the market, adding new inventory and meeting the needs of population growth.

 

• As forbearance comes to a close, experts predict a wave of new homes coming on the market.  However, they don’t anticipate the majority of those to be foreclosures.  Instead, because of built-up equity, homeowners in this position will have the opportunity to sell instead.

 

BOTTOM LINE

If I’ve taught you anything in these eNewsletters it should be that while the future can be projected, it can’t be predicted.

While industry experts don’t expect the 2022 housing market to be as crazy as 2020 or 2021, it’s important to keep reading my eNewsletters to get current information on our local residential real estate status.

Better yet, give me a call and we can discuss your individual situation and how to best take advantage of making your wants, needs and budgetary requirements get you into the home of your dreams.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 10.28.21

As always, I’ve included the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the National and Colorado Springs levels.  

I’ve reproduced just one of the charts below.  You can click here to read the entire report and if you have any questions, please give me a call.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 26, 2021

 

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.

 

 

 

IF A PICTURE IS WORTH 1,000 WORDS…. THE ONE ABOVE COULD MEAN HUNDREDS OF THOUSANDS (OF DOLLARS) TO YOU…

Home sales are picking up again and for many good reasons.  Interest rates have remained historically low, but the recent talk of possible increases, along with more available homes for sale, has been good incentive for some of my clients to sit down and discuss whether now is the time for action.

As I’ve said forever, I can’t begin to predict which way rates will go.  But I can tell you that these very low ones won’t be around forever.  The Fed has been discussing inflation and what can be done to curb it so today’s low interest rates could be a thing of the past sooner than later.  And with more and more folks choosing to work from home (WFH), their wants and needs are far different than prior to the pandemic.

Colorado Springs is also seeing quite a resurgence as a place that young professionals want to work and live due to our fabulous work/life balance and new companies are relocating here as well.  Downtown has “come back” and then some, with the addition of museums such as the U.S. Olympic and Paralympic Museum and various sports venues, as well as new restaurants, shops, apartments, and other living spaces.

We’re starting to feel like a “big” city, while fortunately retaining many of the things that may us proud and happy to call Colorado Springs our hometown.  I won’t talk about traffic since my friends who live elsewhere think we don’t have any, but…if you’ve lived here for any length of time you know what I mean.  

Amazon recently opened their largest distribution center in the four surrounding states near our airport and many of those employees (the non-robotic ones!) are looking for homes.  So are the ones choosing to relocate here with their companies.  Having more homes available for sale has been a blessing for those folks and as new homebuilding continues to ramp up, this has been the choice for many of them as well.

In fact, I’ve helped some relocatees purchase new home construction, often without them seeing a model home in person.  Lot and home elevation selections have been completed via video and I’ve been their “eyes” in making certain that the builders follow through with all the particulars.  My long-standing relationship with many local builders has made that process easier for my clients and this is a service I provide at no additional cost to the buyer.  

I’m starting to find myself as busy as ever, and if there were more existing homes for sale, I’d be even busier.  When homes get listed, my clients are ready to pounce, but unfortunately so are a number of other potential buyers.

This leads me to tell you that even though there are more homes for sale at present, we are still seeing multiple offers, many over listing price, and quick turnarounds.  Bidding wars apparently are here to stay for a while, so it’s as important as ever to know what you want, need, and can afford PRIOR to the search.  Once you find the home you want there is little time to “think it over”.  

If you’ve even considered a new home or neighborhood, let’s talk and see how together we can make your present home help you work toward that goal.  There’s no better time than now to make all your Residential real estate dreams come true.

And…the best move you can make at present is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get the ball rolling.  

I look forward to speaking with you.

 

HOME SALES AND PRICES JUMPED IN SEPTEMBER

The Wall Street Journal, 10.22.21

As depicted in the illustration above, U.S. home sales surged last month with their strongest showing since January, ending a months-long stretch when housing market activity slowed from its frenzied pace and high prices put the brakes on a number of buyers.

The dip in mortgage rates and activity at the high end of the market helped existing-home sales rise 7% in September nationally from the prior month to a seasonally adjusted annual rate of 6.29 million, according to the National Association of Realtors (NAR).  

While demand from buyers has exceeded supply for more than a year, economists said that last month was still a standout.

“This autumn season looks to be one of the best autumn home-sale seasons in 15 years,” said Lawrence Yun, NAR’s chief economist. 

And though prices remain near record highs, the pace of price growth is slowing, which will allow for a more “normal” appreciation.  

Again, what all this means is that NOW is the time to get off the fence if you’ve even considered a move.  The sooner you begin, the sooner you will be in a new home.  Don’t delay, call me today.  If there’s a way to get you where you want to be, I’m the guy who can get you there.

 

SALES TAX COLLECTIONS IN COLORADO SPRINGS JUMP

The Gazette, 10.23.21

Colorado Springs is continuing a robust recovery 1 ½ years after the onset of the COVID-19 pandemic.  The city saw another double-digit percentage gain in sales tax collections last month, a good sign for the Pike’s Peak region’s economy.

It’s evident that folks are busy spending on things such as cars, appliances, TVs, apparel and building materials, among other items—and the 2% sales tax levied on such generated nearly $19 million in revenue in September according to a report released last Friday by the Colorado Springs Finance Department.

That’s 22% higher than the same month a year ago and continues the double digit increases that began in March.

According to Tatiana Bailey, director of the University of Colorado at Colorado Springs Economic Forum, “It’s an overall indicator of continued economic growth.  We’ve regained all of our jobs in the region.  It’s all good news and great news for the mayor’s office and having the tax revenues we need.”

Since Colorado Springs’ sale tax is a critical revenue source and closely watched by city officials and local economists because it funds more than half of the Springs’ annual general fund budget, this is exceptionally good news all around.

Bravo to all of us for helping to boost the local economy.

 

ERA SHIELDS QUARTERLY “STAT PACK”

I want to share with you the quarterly “Residential Review” for El Paso County that is compiled by my company. The data provided is through the Third Quarter, 2021.   You can click here to read the report, along with charts, in its entirety.

The graph below compares the number of homes on the market (active) to the number of homes sold.  It determines how many months it would take to sell through the current listing inventory.  Most economists consider 6.0 months to be a “balanced” market:

 

 

 

And some quick facts you might find interesting:

 

• New Listings Input for the Quarter were up 472 units from 2020 (9%)

 

• Sales for the Quarter were down 7% (4490 vs 4854)

 

• Median Price for the Quarter is up to $445,667 (16%)

 

• Average Price for the Quarter went up to $500,433 (16%)

 

• Just 4% of sales in the Quarter were under $300k (in 2020 it was 15%, 2019 it was 37%)

 

• 50 homes sold for $1 million+ during the Quarter (21 sold during the same period last year)

 

• Single-Family building permits this year are up 356 units (9%)

 

• 30-year Fixed-Rate Mortgages are right at 3%

 

SHOULD YOU RENOVATE OR MOVE…THE BIG QUESTION

Keeping Current Matters, 10.13.21

 

As I’ve been mentioning a lot, the last 18 months have changed what many buyers are looking for in a home.  The American Institute of Architects recently released their AIA Home Design Trends 66667uSurvey, and it reveals the following:

 

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% or respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

 

If you are like any of these respondents and want to add any of the above, you have two options:  renovate your current home or buy a home that already has the spaces you desire.  The decision you make could be determined by factors such as:

 

1. A possible desire to relocate

 

2. The difference in the cost of a renovation versus a purchase

 

3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

 

In either case you will need access to the funds for either a renovation or the down payment your next home would require.  The great news is that the money you need probably already exists in the equity of your current home.

 

Home equity is skyrocketing due to the record-setting increases in home prices over the past two years.  The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:

 

 

The money you need to purchase the perfect home or renovate your current house may be right at your fingertips.  However, waiting to make your decision may increase the cost of tapping that equity.

 

If you decide to renovate, you’ll need to refinance or take out an equity loan to access the equity.  If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between your down payment and the cost of your new home.

 

Mortgage rates are forecast to increase over the next year, so waiting to leverage your equity will probably mean you’ll pay more to do so.  According to the latest data from the Federal Housing Finance Agency (FIFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below.  If you are one of those homeowners, you can keep your mortgage under 4% by doing it now.  If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

 

First Step:  Determine the Amount of Equity in Your Home

 

If you’re ready to either redesign your current home or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home.  To do that, you’ll need two things:

 

1. The current mortgage balance on your home

 

2. The current value of your home

 

You can more than likely find the mortgage balance on your monthly mortgage statement.  To discover the current market value of your house you can pay several hundred dollars for an appraisal, or you can contact me, and I will be able to give you a professional equity assessment report at no cost to you.

 

Bottom Line?  If you are one of the many who have refocused your thoughts on what you want from your home over the past 18 months, now may be the very best time to either renovate or make a move to the perfect home.

 

Any Questions?  Contact me and I will more than happy to give you answers.  And if I don’t have the answers, you can be sure I know how and where to get them for you.

 

HARRY’S HALLOWEEN JOKES OF THE DAY: