Jan.9, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET


HOW ABOUT THEM BRONCOS !!!! WHAT A WAY TO START THE YEAR !!!


WHAT'S GOING TO HAPPEN WITH real estate IN COLORADO SPRINGS IN 2012?

Many of our friends and clients ask us for our prediction of where real estate is going this year. So, here's our take on what's going to happen.

First of all, Colorado Springs real estate has not felt the recession as badly as most other parts of the country. Add to that the fact that we are better poised for a recovery than most other cities. As we cited in previous issues, both Forbes and Kiplinger have listed Colorado Springs as one of the top ten places where recovery will be the fastest.

So, based upon the national picture, the local picture and my 39 years of experience in our local market, my opinion is that we should see a marked increase in home-values and home sales in 2012. As evidence that this increase will take place, just consider the following factors:

• Both National and local statistics indicate that we have reached bottom, where home-prices are concerned. NAR is projecting an increase in home values of 2% in 2012, 3% in 2013 and 4% in 2014. My prediction is that we will exceed those increases by at least another 1%.
• In Colorado Springs, there is an increasing demand for housing based upon an increase in our military population (with hundreds of troops returning from Iraq and Afghanistan) plus our typical population increase because of retirees (our city is one of the prime retirement cities in the country) and a slow but steady increase in businesses (as a result of our city council actively promoting our city nationally).
• There is a sizable pent-up demand for housing because of tight mortgage credit conditions which have been artificially holding back sales for several years….and the government is eagerly seeking to loosen up the requirements for borrowers (See “FED URGES ACTION ON EASING LENDING RESTRICTIONS”, below)

The bottom line is that the Colorado Springs real estate market looks very good in 2012, for Homeowners, Homebuyers, Homesellers and Investors alike.

Call us to discuss what these trends could mean for you. 598-3200, or, 800-677-6683(MOVE).


EXISTING HOME SALES CONTINUE TO CLIMB IN NOVEMBER

Realtor Magazine reports (12/21/2011) that existing home sales rose again in November and remain above a year ago, according to NAR.

Lawrence Yun, NAR chief economist said more people are taking advantage of the buyers' market. "Sales reached the highest mark in 10 months and are 34% above the cyclical low point in mid-2010 ....A genuine recovery appears to be developing. We've seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today's market for buyers with long-term plans".

This is all great news !!!

 

MORTGAGE RATES MATCH RECORD LOWS THIS WEEK

Daily real estate News reports (Jan. 6, 2012) that, for the fifth consecutive week, 30-year fixed-rate mortgages have averaged below 4%, which was unheard of until a few months ago.

30-year fixed-rate mortgages are averaging 3.91%, compared with 4.77% one year ago.
15-year fixed rate mortgages are averaging 3.23%, compared with 4.13% one year ago.

If you have not refinanced, you should seriously consider it. You could save hundreds of dollars a month.

Call us, if you would like to discuss this opportunity, at 598-3200,or 800 677-6683(MOVE).

 

COLORADO SPRINGS NUMBER OF FORECLOSURES FALLS AND BUILDING PERMITS PREDICTED TO RISE

The Gazette (Jan.4, 2012) reports that foreclosure filings in 2011 fell 25.4% in 2011, compared with 2010. This means that fewer homeowners were in trouble with their mortgages. Public Trustee Tom Mowle says he expects that trend to continue.

This reduction in foreclosures is accompanied by a forecast by the board president of the Housing and Building Association, John Cassiani, that there will be a 55 – 10% increase in building permits in 2012.

“It’s not going to be a rapid jump, but I think the uptick has started”, Mr. Cassiani said.

Considering both of these trends, things are looking very good for 2012 !!


AREA JOBLESS RATE DROPS TO LOWEST LEVEL IN 2 YEARS

The Gazette reports (Thursday, Jan. 5, 2012) that the Colorado Springs-area unemployment rate fell in November to its lowest level in more than two years. The area jobless rate fell to 9%, matching September 2009 as the lowest rate in the past 26 months.

At the Pikes Peak Workforce Center, a spokesman said that they are seeing a lot of recent hiring by call centers, a few high-tech companies and some seasonal jobs, such as landscaping. Sales and banking are also strong areas for hiring.


FED URGES ACTION ON EASING LENDING RESTRICTIONS

The Wall Street Journal (Thursday, Jan 5, 2012) reports that the Federal Reserve, in an unusual foray into housing policy, has called for more aggressive action from Congress to loosen mortgage-lending standards. The Fed stated that tight lending policies were holding back the recovery. They also urged more aggressive use of Fannie Mae and Freddie Mac to support a housing recovery.

The Fed's argument is that, although mortgage rates have been at record lows, there are many borrowers who have not been able to take advantage of the low rates because of blemishes on their credit histories, uneven incomes, or because their home values have left them with no, or very low equity.


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.

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

LATEST STATISTICS

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area. Note that these statistics are generated every month by the Pikes Peak Association of Realtors and they are one of the important tools that we use in assisting Buyers and Sellers to establish realistic listing/buying prices. Also note that the data is broken down into specific neighborhoods in the Pikes Peak area.

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

As you can see from the statistics, the local market, mortgage rates and trends are constantly changing, even within our local neighborhoods. That’s why you should seek help and advice from a reliable, professional Realtor.

If you are looking for a new home or an investment property, we can show you how to receive the most current listings sent directly to your computer
We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

JOKE OF THE WEEK


So, Brett Favre dies and goes to heaven. Because he was such a famous person, God himself shows him around. After showing Brett all of the sights, God shows Brett what his home will be for all eternity….. a beautiful cottage, with a Packers flag in the front yard.

Brett thanks God, but then notices the house next door, which is a huge mansion with a swimming pool, a four car garage, a heliport in back, several orange and blue banners hanging from the porch and a giant Broncos flag flying from a pole in the front yard.

Brett says, “Lord, I don’t want to seem ungrateful, but I played in the NFL for many years, was MVP for several seasons, I won several Super Bowls and still own many passing records. …and I end up with this little cottage in Heaven? Tim Tebow, on the other hand has only won one measly playoff game, and he gets that huge mansion? ..It just doesn’t seem fair. !!!

God replies, “Oh no, Brett. You don’t understand. That mansion isn’t for Tim Tebow …That’s my house “