September 26, 2011


HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET


THANKSGIVING IS JUST AROUND THE CORNER ....SO, LET'S TALK TURKEY

The Internet is a marvelous invention. You can use it to find members of your high-school class, the parts list for a 1937 LaSalle, the first movie that Clark Gable ever made and almost anything else you can possibly want to know.
Unforthunately, this wonderful source of information can also produce a state of mental paralysis called 'information overload'.

As we speak with prospective real estate Buyers and/or Sellers, we find that many people who have used the Internet (and their neighbors) to advise them about their Real Estate decision are suffering from this confusing problem of 'information overload'. ...and who can blame them?

On any given day, various media sources tell them that "The real estate market is looking much better" and, on the same day, another media source
warns them that "The real estate market has never looked worse".

They read that "mortgage rates are very low", .......but that "the government will soon cause mortgage rates to rise".

They are told that "this is a terrific time to buy", but that "thousands of people are losing their homes".

They hear one of their neighbors tell them they sold their home in three weeks, while another neighbor has had their home on the market for 18 months.

As a result of all of this contradictory information and advice, it is not surprising that the most-asked question we hear from our clients today is, "What would you do?"

So, we thought it would be helpful if "talked turkey" about how we are advising our prospective clients in this confusing market.

First, keep in mind that our personal business philosophy puts the long-term improvement of our clients'  financial welfare at the top of our list. You can't be sucessful and respected for 39 years in this business, if your main goal is just to 'make a buck'.

Building a client base of loyal friends requires that we always tell clients what we think is best for them, even though that means that we sometimes have to recommend not buying that home they just fell in love with, or, to suggest delaying putting their home on the market until their personal finances improve.

Second, remember that all real estate is local. The fact that housing sales in Las Vegas are in the tank, doesn't mean that home sales in Colorado Springs are necesarily terrible. In fact, even within our small segment of the national market, our sales and listing statistics are usually much better than the national statistics.

Using national home price averages to figure out local price trends makes about as much sense as using a national weather forecast to make plans for a picnic in the park.

As a matter of fact, even within the Pikes Peak region, real estate prices and activity can vary greatly based upon such factors as the age of the neighborhood, price range, time of the year, size of the home, improvements, proximity to schools ...and even how the local schools are rated.

You will note that, because both of these elements (your long-term financial welfare and local pricing factors) are based upon your personal situation (financial status, credit rating, your job security, the ages of you and of your children, etc.), the Internet cannot be of much help to you as you try to make your real estate decisions.

That's why you need some impartial advice from someone who has the answers abour what's really happening in our local market.

OK, let's get specific. I am thinking of selling my house. Is this a good time to list it?

Well, let's talk about selling in today's market. You should be aware that the selling price for your home in today's market will probably be less that you would like. Keeping that in mind, however

  • If you are just moving to a comparable home closr to your work, remember that whatever financial "loss" you suffer when you sell, will be made up for when you buy your new home at a price that has also been reduced. So, you're not gaining anything by waiting to sell
     
  • If you are selling to reduce your monthly payments, consider re-financing your present home, instead of selling. At today's historically-low refinancing rates, you could stay in your home  and still end up with lower monthly payments.
     
  • If you are considering selling because you want to upgrade to a better home in a better part of town, you might consider buying your upgraded home and then, rather than selling, keeping your present home as a rental property. Occupancy rates are high, available inventory offers you a wide selection of properties and you will get a terrific mortgage rate on your new home. But there are drawbacks to becoming a landlord and you should discuss this option with us, to avoid some of the unwanted 'surprises' that this option sometimes involves
     
  • If you are selling because you are 'underwater' with your mortgage, I'm afraid there are no easy answers. Some of the variables that affect 'short-sale' properties are: Who holds the mortgage (Some lenders are reasonable to work with ...but some are not). How long can the prospective buyer wait to occupy the home (The short-sale process can take many months to complete) The bottom line here is, call us to discuss your specific situation.

As you can see, there is no easy answer to the question "Is this a good time to sell".
 
OK, Should I consider buying a house in today's market?

Absolutely !!!!! New homeowners and Investors alike are going to come out ahead, if they buy now. Low prices, Large inventories, Great mortgage rates (the lowest in history), Low Vacancy rates, a ballooning supply of new renters are all combining to offer a wonderful opportunity for Buyers. Call us to discuss the window of opportunity that is now open.

P.S. If you're on the fence about buying, call us to get the straight scoop on how much your payments would be on a new home. You might find that it would be cheaper than the rent you are now paying

One thing is for sure. The Internet can't give you the kind of advice you need when deciding to buy or sell a home.

Better give us a call at 598-3200 or 800-677 move (6683). We will be pleased to discuss the real estate options that are available to you.


LATEST SALES AND LISTING STATISTICS

Click here for the latest sales and listing statistics for the Pikes Peak area.

Our local sales reflected the national trend in August. Home sales jumped from a year ago by the biggest percentage in nearly 1 1/2 yearsSales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. According to NAR President Ron Phipps, the biggest factors keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers and appraised valuations below the negotiated price.
 

MORTGAGE RATES DIP AGAIN

Within the past few days, mortgage rates for a 30-year, fixed-rate mortgage dropped to 3 3/4%. Many other types of mortgages, like various adjustable loans went even lower. Call us to find out how this might affect your refinancing plans.


THE LATEST GOOD NEWS FOR COLORADO SPRINGS - FROM THE GAZETTE

Initial claims for unemployment were down 23.2%
Unemployment rate was down to 9.3%
New auto and truck registrations were up 42.4%
Taxable retail sales were up 11.9%
Hotel occupancy rate was up to 77.8%
Foreclosure filings were down 21.8%

But the best news of all is that, when you wake up every morning, you get to see the most beautiful sight in the world ...the sun shining on Pikes Peak. No wonder it inspired the song, "America the Beautiful"

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

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

Please allow me to implement my negotiating skills on your behalf.
 

Just click on the icon at the top of this email to listen to my podcast for this month …

JOKE OF THE WEEK

Two social engineers were discussing social policy and the first one says: "I believe in fairness. ...a share and share alike policy. We should all have an equal share of wealth."

"Well" replied the other social engineer "I'm not sure about that. What you mean is that if you have two yachts you'd give me one?"

"Of course" says the first.

The second social engineer continued: "and if you had two factories, you'd give me one of them too?"

"Absolutely"

"So" says the second social engineer, "if you had two cars then you'd give me one of them?"

"Ah, now hang on a minute" says the first, "That's not fair. You know I've got two cars!"