June 27, 2011

 

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

SPRINGS SLOWDOWN NOT SO BAD, STUDY FINDS

According to the Gazette, a growing military presence helped the Colorado Springs economy avoid the worst of the recession, but a lack of other economic drivers (translation: JOBS) has kept it from recovering significantly from the downturn, according to a study by the Brookings Institution.

The study found that both Colorado Springs and Denver ranked among the top 20 of the nation's 100 largest metropolitan areas in their economic performance since the start of the recession, as measured by changes in employment, unemployment rates, economic output, housing prices and rate of mortgage foreclosures.

On the bright side, the recent announcement of troop reductions in Afghanistan should add about 1500 additional troops to our area, which will also help boost our economy.

A spokesman for the study stated "The economy will not roar back, but Colorado Springs is at a much better starting point than its peers".

That's good news !!!

 

EXPERTS AGREE PRICES HAVE BOTTOMED OUT AND WILL STAY THERE

U.S. house prices rose slightly in April for the first month-to-month increase since last May, according to new numbers released today by the Federal Home Finance Agency, a branch of the Treasury Department.

Prices rose 0.8 percent on a seasonally adjusted basis from March to April, according to the FHFA's monthly House Price Index. For the 12 months ending in April, U.S. prices fell 5.7 percent.

A significant majority of the 108 economists and experts participating in MacroMarkets' June Price Home Expectations panelists believe that the bottom for home prices arrived in the first quarter or will arrive sometime before year-end.

The FHFA numbers echo similar data from FNC, Altos, ClearCapital, Move and other sources reporting an uptick in prices in April, following the double dip in prices during the first quarter.

However, expectations for the pace of recovery fell.  The group of 69 panelists who are currently forecasting a 2011 turning point predict less than two percent average annual growth in nominal home prices over the five-year period ending December 2015. The average expected cumulative home price change between Q4 2010 and Q4 2015 is just 5.71 percent, $1.2 trillion less in aggregate U.S. single-family housing wealth at the end of 2015 than projected just six months ago.

Looking at expected housing market performance through the five year period ending 2015, the most optimistic quartile of panelists projects 15.3 percent average price growth, while the most pessimistic quartile of panelists projects 6.0 price average price erosion from Q4 2010 levels. This spread is huge, representing almost $4 trillion in housing market value.

 

COLORADO GAINS 11,000 JOBS IN FIRST FIVE MONTHS OF 2011

Colorado's job market turned a corner from losses to gains during the first five months of 2011, which is good news for job seekers in the state who had little to celebrate in 2010.

Average employment in the state is up by about 11,000 so far this year over the same period last year, a 0.5 percent gain, compared with a loss of 25,000 jobs last year.

There are encouraging signs in the numbers, particularly in retail, professional services and manufacturing.

Retail employment, an indicator of consumer demand, has climbed 2.7 percent since the beginning of the year, adding 6,200 jobs.

Manufacturing has added 2,900 jobs, a 2.3 percent gain.

Leisure and hospitality is up slightly, with 700 new jobs.

Professional, scientific and technical services - which includes lawyers, accountants, architects, advertising reps and scientists - is up 4,500 jobs or 2.7 percent.

Even construction, the hardest-hit sector in the state and down 5.9 percent for the year, added 2,000 jobs in May, after seasonal adjustments.

The growth in manufacturing and professional services is encouraging because it's an indicator of underlying economic activity.

Overall, the private sector in Colorado has created jobs at an annual rate of about 0.8 percent so far this year, compared with a loss of 1.5 percent last year. That qualifies as a slow rebound.

It looks like we're over the hump.

 

WHERE HAVE ALL THE REALTORS GONE??

Some of our friends and clients have mentioned that there seem to be fewer Realtors active in our community, since the recession started. Well, their observations are correct. Many of our local Realtors have decided to cut back or retire, as a result of our lagging housing market. .

Fortunately, thanks to our loyal clientele, we have been able to weather the storm and are still very active in the market. What's the secret to succeeding in a down real estate market?

Actually, there is no secret. It's just a matter of earning client loyalty by being committed to advancing your interests and following a few effective rules for offering the best service available.

Some of our 'Rules' for dealing with our clients are: 

  • Listening carefully to make sure YOUR objectives are understood
  • Explaining the home selling process thoroughly
  • Pricing your home correctly
  • Helping you stage your home correctly
  • Implementing a proven marketing plan
  • Making every effort to sell your home promptly
  • Generating and following-up on leads
  • Communicating consistently, so you know what to expect
  • Networking with the entire broker population regarding your property
  • Diligently tracking the closing process on the sale of your home

It also helps that we have over 39 years of experience in our local market and have first-hand knowledge of every neighborhood in the Pikes Peak region. We also have good working relationships with every lender, appraiser and service provider in the area and, because of our background in the relocation industry, are able to assist our clients with any out-of-state questions and problems.

It just goes to prove that, "The harder your work, the luckier you get". 

Give us a call at 598-3200, or, 800 677-MOVE (6683) and we'll show you what we mean.

 

THE COLORADO SPRINGS BUSINESS JOURNAL

MAKES A GREAT PITCH FOR OUR CITY

The Colorado Springs Business Journal, in partnership with the Colorado Springs Regional Economic Development Corporation, the Colorado Springs Chamber of Commerce and the Colorado Springs Convention and Visitors Bureau, has just published a beautiful business development and relocation guide for Colorado Springs.

The 91 page guide features articles about our local attractions, events and statistics about the region. It covers such topics as History, Socioeconomic, Government, Top 100 Primary Employers, Fortune 500 Companies, Business Resources, Sports, Housing and a broad variety of data about our city.

From time-to-time, we will publish some of the fascinating information that is contained in the guide. For example:

             Population of El Paso County in 1995                469,693

            Population of El Paso County in 2010                622,263

             Median Household Income in Colorado Springs  $53,359

            Median Household Income in El Paso County     $56,570

To obtain your copy of this fact-filled guide, contact the Colorado Springs Business Journal at 719 634-5905, or, on the web at www.csbj.com.

 

NAR URGES YOU TO HELP PROTECT YOUR ACCESS TO AFFORDABLE MORTGAGES

On Thursday, June 23, 2011, we received notification from the National Association of Realtors that, effective September 30, 2011, the Federal Housing Administration will significantly decrease its loan limits. This change will make mortgages more expensive for households nationwide.

The problem with this change is that private investors have not yet returned to the housing market and FHA and GSE mortgages together continue to constitute the vast majority of home financing available today, which makes it particularly crucial to maintain the current limits. Lowering the loan limits at this critical stage in our recovery will leave credit-worthy borrowers without access to affordable financing and will prolong our housing crisis.

Nationally, the decrease in loan limits will cost homebuyers more than $68,000 and will apply to over 669 counties in 49 states. This reduction in loan limits will negatively affect Buyers, Sellers and Lenders and will drastically reduce the number of homes sold.

In El Paso County, Colorado, for example, this change means that the FHA limit on loans will drop from $325,000 to $271,050, a decrease of $53,950.

Considering the fragile state of our current housing market and the importance of the housing market in leading the entire economy of the country, it does not make sense to make the purchase of housing even more expensive than it currently is.

To avoid the disastrous effects of this change by FHA, H.R. 1754 has been introduced in the House of Representatives by Reps. Miller (R-CA) and Sherman (D-CA) to make our current loan limits permanent. NAR is urging all citizens to contact their congressional representatives and express their support for this Bill.

We believe that this change by FHA will make it more difficult to buy and sell homes, and we support NAR in their efforts to encourage public support for H.R 1754.

Click here to learn more about this change in loan limits

Click here to see how this change will affect you

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

 

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area.

 

JOKE OF THE WEEK

FROM YOUR I.T. DEPARTMENT

How to Make your I.T. Department Happy

01. When you call us to have your computer moved, be sure to leave it buried under half a ton of postcards, baby pictures, stuffed animals, dried flowers, bowling trophies and children's art. We don't have a life, and we find it deeply moving to catch a fleeting glimpse of yours.

02. Don't write anything down. Ever. We can play back the error messages from here.

03. When an I.T. person says he's coming right over, go for coffee. That way you won't be there when we need your password. It's nothing for us to remember 700 screen saver passwords.

04. When you call the help desk, state what you want, not what's keeping you from getting it. We don't need to know that you can't get into your mail because your computer won't power on at all.

05. When I.T. support sends you an E-Mail with high importance, delete it at once. We're just testing.

06. Send urgent email all in uppercase. The mail server picks it up and flags it as a rush delivery.

07. When the photocopier doesn't work, call computer support. There's electronics in it.

08. When something's wrong with your home PC, dump it on an I.T. person's chair with no name, no phone number and no description of the problem. We love a puzzle.

09. When an I.T. person tells you that he'll be there shortly, reply in a scathing tone of voice: "And just how many weeks do you mean by shortly?" That motivates us.

10. When the printer won't print, re-send the job at least 20 times. Print jobs frequently get sucked into black holes.

11. When the printer still won't print after 20 tries, send the job to all 68 printers in the company. One of them is bound to work.

12. Don't learn the proper term for anything technical. We know exactly what you mean by "My thingy blew up".

13. Don't use on-line help. On-line help is for wimps.