The "QUE" says Colorado Springs' Economy is the strongest in two years
February 20, 2012
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET
THE “QUE” SAYS COLORADO SPRINGS ECONOMY IS THE STRONGEST IN TWO YEARS
The College of Business of the University of Colorado at Colorado Springs has just released its quarterly Update and Estimates for our local economy. This quarterly report, commonly referred to as the “QUE”, has become the authoritative source for information about how our local economy is doing and where it is headed. The following comments about the recent QUE are extracted from the article in the Colorado Springs Business Journal, which reviewed the latest report.
Fred Crowley, chief economist for the Southern Colorado Economic Forum, says, “There are signs that people are ready to spend. The El Paso County economy showed its strongest growth in two years and it did so without artificial efforts like home-buying incentives programs or reinvestment job act money. This time, the economy showed improvement all on its own.”
The report shows strong increases in single-family home sales, car sales and wages. “All of these are really strong indicators”, emphasized Crowley.
“First and foremost, single-family home sales are up 30%. This is a huge number. Single-family permit activity was higher in 10 of the last 12 months and home prices are heading up, while foreclosures continue to head downward. These figures all indicate that the housing market is on its way to becoming stable. …something that did not exist in the last two years.” Crowley stated.
And, there’s good news for the city, too. .In December, sales tax revenues were up 7.1% from a year earlier, to a record $13.4 million. Overall, sales tax collections for the year were up almost 4%.
Crowley summarized, “The local economy is much stronger than I thought it would be. Overall, the news is very positive”.
It looks like our local economy is headed back up….That’s great news !!!
If you would like to see the complete quarterly report (The Que), CLICK HERE.
COLORADO SPRINGS NAMED IN TOP TEN FOR DATA CENTER relocation
The Boyd Company, a New Jersey-based firm that’s established itself as an industry authority for corporate relocations and expansion, places Colorado Springs in the top 10 cities for data security – an industry that’s booming thanks to new banking rules, a digitized health-care industry and high-profile cases of hackers who steal information.
“Colorado Springs has a number of the qualities that match what data companies are looking for, including low operating costs, a strong telecommunications infrastructure and a well-trained workforce” said John Boyd, the firm’s principal.
“The geographical location of Colorado Springs keeps it safe from natural disasters such as earthquakes and hurricanes and data centers would be a good financial partner for the Springs”, Boyd said “because they bring in millions in construction work, offer jobs that pay about $80,000 a year and contribute to the tax base”.
“The government is going to want to get out of the high-cost areas like Washington D.C., New York City and the Bay Area and head inland in favor of more affordable land and operations costs”, Boyd Said.
As for location, Boyd noted, “Colorado Springs is 52% more likely to attract data centers than any other city. And companies looking to build data centers may look favorably because of the number of data centers that already are located here. (Federal Express, Hewlett-Packard, Quantum, Wal-Mart, etc.).”
“We do have quite a few data center projects in the pipeline and, in our judgment, over the course of the next year or so, you will see expansion happening here”, Boyd concluded.
That’s great news for our area.
IS THE NATIONAL ECONOMY RISING? THE STOCK MARKET SAYS, “YES”
On Friday, Feb. 17, 2012, the Wall Street Journal featured an article titled, “Dow Ends Near 4-Year High”. The WSJ credited the rise to signs of an accelerating economic recovery and glimmers of hope on the Greek debt crisis.
If traditional wisdom is correct, the stock market usually indicates what the state of the economy will be for the next 2 quarters. If that’s correct, we can expect the national economy to rise through September of 2012.
That’s good news for the nation and it coincides with the predictions about our local economy that were published in the most recent quarterly report from the UCCS College of Business, (See Above)
HOUSING AFFORDABILITY REACHES NEW RECORD HIGH
Housing affordability rose to a record high during the fourth quarter of 2011, which means that a home buyer’s purchasing power is greater than it has ever been before, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
The Index showed that 75.9% of all new and existing homes sold in the fourth quarter were affordable to families earning the national median income of $64,200. This marks the highest percentage recorded in the index’s 20-year history.
Considering today’s low prices, low mortgage-interest rates and high inventories of available homes, it’s obvious that now is the time to buy your new home, or to acquire that rental property.
Call us at 598-3200, or, 800-677-6683, to discuss this opportunity.
INVESTORS, TAKE NOTE !!! NEW TAX ON SOME INVESTMENT INCOME BEGINS JANUARY 1, 2013
New tax legislation will affect some real estate income, beginning January 1, 2013. This new tax will affect some, but not all real estate transactions and holdings. Because this is a complicated tax, you should consult with your CPA about its possible effects upon you and your holdings.
Bottom line: If you are planning to sell any investment property, this new tax might affect your decision regarding the timing of the sale. NAR has developed a complete analysis of how the new law might affect you. To see a copy of this informative analysis, CLICK HERE.
WHEN THE BOOMERS BAIL – A COMMUNITY ECONOMIC SURVIVAL GUIDE –
The Senior Resource Council, the Greater Colorado Springs Chamber of Commerce and the EDC are combining to present this month’s Business of Aging Summihas t luncheon. The featured speaker will be Mark Lautman, an economics expert and author of “When the Boomers Bail”, a book which addresses the issue of what communities can do to attract and keep entrepreneurs and young professionals.
Lautman’s approach to the problem of attracting and retaining workers in a labor-starved market is to analyse exit interviews, and then figure out “What things can be fixed and what”.
The luncheon will be held at the Crowne Plaza Hotel, 2886 S. Circle Drive on February 23, 2012.
To register, go to www.coloradospringschamber.org and click on Calendar of Events.
SALES AND LISTING STATISTICS
Click here to see the latest PPAR statistics regarding area sales and listings And be sure to give us a call, if you have any questions, or would like to discuss these statistics in more detail.
Call us at 598-3200, or, 800 677-6683.
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. Call us at 598-3200,or, 800 877-MOVE (6683).
JOKE OF THE WEEK
* The problem with political jokes is they get elected. ~Henry Cate, VII
* We hang the petty thieves and appoint the great ones to public office. ~Aesop
* If we got one-tenth of what was promised to us in these speeches, there wouldn't be any inducement to go to heaven. ~Will Rogers
* Those who are too smart to engage in politics are punished by being governed by those who are dumber. ~Plato
* Politicians are the same all over. They promise to build a bridge even where there is no river. ~Nikita Khrushchev
* When I was a boy I was told that anybody could become President; I'm beginning to believe it. ~Clarence Darrow
* Why pay money to have your family tree traced; go into politics and your opponents will do it for you. ~Author Unknown
* If God wanted us to vote, he would have given us candidates. ~Jay Leno
* Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel. ~John Quinton
* Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer
* The Democrats are the party that says government will make you smarter, taller, and remove the crabgrass on your lawn, fix all your problems, just give us your money. The Republicans are the party that says government doesn't work and then they get elected and prove it. ~P. J. O'Rourke
* I offer my opponents a bargain: If they will stop telling lies about us, I will stop telling the truth about them. ~Adlai Stevenson, campaign speech, 1952
* A politician is a fellow who will lay down your life for his country. ~Texas Guinan
* Any American who is prepared to run for president should automatically, by definition, be disqualified from ever doing so. ~Gore Vidal
* I have come to the conclusion that politics is too serious a matter to be left to the politicians. ~Charles de Gaulle
* Instead of giving a politician the keys to the city, it might be better to change the locks. ~Doug Larson
* There ought to be one day - just one - when there is open season on senators. ~Will Rogers
