Real Estate Information Archive

August 6, 2018

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.

 

THIS COMES TO YOU FROM THE “MOST DESIREABLE PLACE TO LIVE IN THE USA”

The Gazette, 7.31.18, U.S. News and World Report, 7.18

Yes, you read that right. I’ve told you this all along and folks who live here already know…but our poorly kept secret is out---Colorado Springs was just declared “the most desirable place to live in the United States” by U.S. New and World Report.

Colorado Springs has grown at a rate of more than 12 percent between 2010 and 2017, according to U.S. Census Bureau estimates.  And it’s not just retirees and military personnel.  Even the Millennial population has increased by 14.7 percent from 2010 to 2015, according to a study from Brookings Institution’s Metropolitan Policy Program.  

In some ways this ranking should come as no surprise since Colorado Springs officials and volunteers have been positioning the City for this type of growth for the past several years and more.  

The City for Champions initiative is taking hold with the construction of the Olympic Museum, the Air Force Academy Visitor Center, UCCS Sports Medicine facility and a newly approved 10,000-seat multi-use stadium downtown, along with a 3,000-seat indoor arena for Colorado College’s men’s hockey team. 

Recent investment in the public infrastructure and the approval of resurrected stormwater fees are a testament to the public’s active investment in Colorado Springs.  

Yes, we have the magnificent views, Garden of the Gods, Pikes Peak, fabulous hiking and biking trails, a vibrant, growing downtown and so much more.  But in economic terms, the best news is the investment of companies and restaurants, along with relocated employees, who are now calling our City “home”. Again, our local government officials, along with the Chamber/EDC and the Visitors and Convention Bureau, have done a fabulous job of putting us forefront in the minds of companies and others who are looking to relocate.  

Of the top five most desirable cities listed in the survey, Colorado Springs has the smallest metropolitan population—listed as 688,643.  We also are the most affordable in terms of median home prices. When you add that to our relatively low cost of utilities and other peripheral expenses, it’s no wonder people are starting to realize that Colorado Springs is “the most desirable place to live”.

And speaking of the housing market…when I looked into my “crystal ball” prior to my annual presentation to the Colorado Springs City Council and El Paso County Commissioners in January, I predicted a 7-8% appreciation on single-family homes here.  As you will see in the July 2018 PPAR Report, my prediction has come to fruition.  Our average sales price year-over-year is up 7.5% and our median sales price year-over-year is up 8.8%! Great news for all homeowners and also for those looking to buy in our area.

I have also said that while prices will continue to escalate, albeit more slowly than the frenzy of the recent past, sales will be slightly down.  Some of this is due to the lack of available listings and some due to the price escalations.  In either scenario, it’s much better for the market because as home values rise a bit slower, more people can afford to still buy before increased interest rates keep them from homeownership or from trading up.

So, yes, this is a GREAT time to sell and trade up.  While listings are still slightly down, more folks are starting to see that it makes sense to “test the waters” in terms of selling their present home. I want to remind you that with most homes selling at listing price or over, it is especially important to have someone like me on your side when making an offer.  When my clients listen to my advice, accumulated over my 46 plus years in the business, they most often get what they want—or at least present an offer that gets good consideration.  

A few weeks ago, I had a client who wanted to offer, against my advice, considerably less than asking price of a home and sure enough—the seller did not even consider the offer.  I hate to see my clients disappointed and that’s why I offer the best advice available to try and prevent that from happening. In this particular case, my client unfortunately learned the hard way and hopefully will have better results with a more “realistic” offer next time!

The Colorado Springs area is still experiencing a boom in new home construction.  Single-family home permits are up 22 percent over 2017 through the first seven months of 2018, according to the Regional Building Department.  At this pace, new home construction here is looking to reach a 13-year high.  If new construction is something you’ve considered, I can help you in that area, too.  My long-term association with most local builders can provide you my expertise-–all at no additional cost to you.

If you’re even considering a move and wondering how to make it happen, simply give me a call today at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you.

And now for July statistics…

Homes are selling at 100.2% of listing price with the average days on the market at a very low 21.  

This continues to be great news for both buyers and sellers but with homes selling so fast it still necessitates knowing where you plan to move next prior to listing your present home.

The Monthly Summary shows that compared to a year ago, total active listings are up 0.8% for Single Family/Patio Homes and down 1.2% for Condo/Townhomes.  New listings are down 3.0% for Single Family/Patio Homes up 7.0% for Condo/Townhomes.  

Please see the next article for the just released local statistics and be sure to check out the next eNewletter which will provide the quarterly stats for the 174 top Metropolitan Statistical Areas. I am fairly certain that Colorado Springs’ median home prices will again be considerably higher than the U.S. average.

 

JULY 2018 WAS ANOTHER RECORD SETTING MONTH IN LOCAL RESIDENTIAL real estate

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

Here are some highlights from the July 2018 PPAR report. A look at the Median Sales Prices will show that prices have continued their record setting pace for the fifth straight month!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing July 2018 to July 2017 for All Homes in PPAR:                      

                        Single Family/Patio Homes:

·       New Listings are 1,884, Down 3.0%

·       Number of Sales are 1,592, Down 3.3%

·      Average Sales Price is $347,517, Up 7.5%

·      Median Sales Price is $310,000, Up 8.8 %

·       Total Active Listings are 2,385, Up 0.8%

·       Months Supply is 1.5

                        Condo/Townhomes:

·       New Listings are 245, Up 7.0%

·       Number of Sales are 235, Down 7.8%

·      Average Sales Price is $234,064, Up 16.1%

·      Median Sales Price is $218,000, Up 13.5%

·       Total Active Listings are 161, Down 1.2%

·       Months Supply is 0.6

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                        Median Sales Price               Median Sales Price

                                                     July 2018                                July 2017

Black Forest                             $557,000                              $480,000                     

Briargate                                   $409,950                              $390,500            

Central                                      $234,750                              $234,500

East                                           $265,000                              $240,000

Fountain Valley:                       $279,900                              $260,000

Manitou Springs:                     $445,500                              $380,000

Marksheffel:                              $320,628                             $323,000

Northeast:                                 $294,250                              $265,000

Northgate:                                 $450,000                              $446,928          

Northwest:                                $419,000                              $360,000            

Old Colorado City:                   $325,000                              $322,500          

Powers:                                     $299,900                              $275,000

Southeast:                                $232,000                              $207,000

Southwest:                               $357,000                              $333,500

Tri-Lakes:                                 $507,000                              $473,950

West:                                         $297,500                              $270,000

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

DESPITE RISING HOME PRICES ACROSS THE U.S.A., ECONOMISTS ARE SAYING WE ARE NOT HEADED TOWARD ANOTHER HOUSING BUBBLE

Keeping current matters, 7.26.18

While home prices are continuing their climb due to lack of inventory locally and nationwide, sales are slightly down for this very same reason.  Rising mortgage loan rates are also beginning to affect sales numbers too.  

Some might be concerned that we may be headed for another housing “boom & bust” but it is important to remember that today’s market is quite different than the bubble market of twelve years ago.

Here are four key metrics that will explain why:

1. Home Prices
2. Mortgage Standards
3. Foreclosure Rates
4. Housing Affordability

 

1.  Home Prices

There is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone. 

From the latest data available:

“The inflation-adjusted U.S. median sale price in June 2006 was $247,110 (or $199,899 in 2006 dollars), compared with $213,400 in March 2018”.

 

2. Mortgage Standards

Many are concerned that lending institutions are again easing standards to a level that helped create the last housing bubble.  However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.

The Urban Institute’s Housing Finance Policy Center issues a monthly index which: 

“Measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan.  A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”

Their July Housing Credit Availability Index revealed:

“Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market”.

 

3. Foreclosure Rates

A major cause of the housing crash last decade was the number of foreclosures that hit the market.  They not only increased the supply of homes for sale but were also being sold at 20-50% discounts.  The foreclosures helped drive down all home values.

Today, foreclosure numbers are lower than they were before the housing boom.  Here are the number of consumers with new foreclosures according to the Federal Reserve’s most recent Household Debt and Credit Report:

2003:  203,320 (earliest reported numbers)

2009:  566,180 (at the valley of the crash)

Today:  76,480

Foreclosures today are less than 40% of what they were in 2003.

 

4. Housing Affordability

Contrary to many headlines, home affordability is better now than it was prior to the last housing boom.  In the same article referenced in #1, Corelogic revealed that in the vast majority of markets, “the inflation-adjusted, principal-and-interest mortgage payments that homebuyers have committed to this year remain lower than their pre-crisis peaks.”

They explained further:

“The main reason the typical mortgage payment remains well below record levels in most of the country is that the average mortgage rate back in June 2006, when the U.S. typical mortgage payment peaked, was about 6.7 percent, compared with an average mortgage rate of about 4.4 percent in March 2018.”

The “price” of a home today may be higher, but the “cost” is still below historic norms.

Bottom Line:

Using these four metrics to compare today to last decade’s housing bust, we can see that the current market is not anything like that bubble market.

 

HOMEOWNER RATE INCHES UP

The Wall Street Journal, 7.27.18

Homeownership in the U.S. continues to climb, with more Americans benefiting from the sharp rise in home values in recent years.

However, homeownership still remains historically low—at 64.3%-- and has risen tepidly this year despite strong economic growth.  

While 64.3% indicates a small percentage growth, the rate remains well below the peak of 69.2% in late 2004 and a full percentage point below the 50-year average. 

More and more renters say they aren’t interested in buying a home due to financial concerns, according to a survey released by Freddie Mac.  

“Homeownership has bottomed out but is likely to go more or less sideways for the foreseeable future,” economist Mark Zandi of Moody’s Analytics said.  “Easing credit standards and a strong job market will support homeownership, but higher mortgage rates and the change in tax law weigh on it”.  

At present, homeownership among younger Americans is driving the rise in overall homeownership rates.  The rate among those under the age of 35 rose to 36.5% in the second quarter, up 1.2 percentage points from the previous year.  That was faster than the 0.6-point gain in overall homeownership.

 

July 24, 2018

 

HARRY’S BI-WEEKLY UPDATE

          A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.

RESIDENTIAL real estate IN COLORADO SPRINGS IS STILL BOOMING…

As I write this eNewsletter, I’m still amazed at the growth I’ve seen in the Springs in recent times. I’ve been a local Realtor for more than 46 years and during that time I’ve obviously seen the City grow—and the metro area population more than double in size—but I’ve just not ever seen the pace at which most homes are selling at present.

In the $300,000 and under range we are still having difficulty in finding available homes and when we do, they go quickly, most over listing price.  This is presenting difficulties for first-time buyers who are wanting to avail themselves of homeownership before interest rates rise.

We are starting to see a few more listings in all price categories, which is encouraging.  I’m guessing that folks who have been waiting to sell and trade up are getting on the bandwagon before they too are priced out of the market.

Interest rates have remained relatively flat for the moment, but the Federal Reserve has indicated they plan to raise rates several more times this year.  At some point, the mortgage interest rate will follow.  This will help prices to level out a bit but right now we are still seeing local median prices rising from 11-13 percent year-over-year.  Great for those who are already homeowners, not so great for those who are not.

Investors, too, are finding fewer bargains at a time when there is an abundance of renters who cannot afford, or do not wish to own, a home. 

This is most definitely still a Seller’s Market and will continue to be so until there are considerably more listings. If you have even thought about whether a move might be good for you and your family, NOW is the time to check out the possibilities.  

While the market is indeed tight, there are still homes available in MOST price ranges and neighborhoods and we can find one that fits your wants, needs and budget.  That’s where I come in.  My long-time experience is your biggest asset.  I know the “ins and outs” of negotiation, finding the right lender for your individual situation and always do my best to make certain that the first offer you make is one that will at least get attention, if not make it to closing.  

New construction can also be a possibility and I can help you in that area, too.  I have longstanding relationships with most of the local homebuilders and my expertise in this arena is yours at no additional cost to you.

So, there you go.  My advice? If you are even thinking of making a move, call me yesterday--you don’t have a minute to waste.  I can be reached at 593.1000 or email me at Harry@HarrySalzman.comtoday and let’s get the ball rolling to make your residential real estate dreams come true.

 

JUNE 2018 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR CONTINUING UPWARD TREND IN GREATER DETAIL

Pikes Peak REALTORS^®Services Corp., 

These reports contain much greater detail than the first-of-the-month reports I share and cover ALL residential areas in the Pikes Peak Region. 

In the recently published June 2018 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were down 2.7% for the single-family/patio homes and down 10.7% for condo/townhomes.  

     The “Activity Snapshot”shows the one-year change:

• Sold Listings for All Properties was down 5.7%
• Median Sales Price for All Properties was up 13.1%
• Active Listings on All Properties was down 16.4%.

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 34-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, Southwest, below to show you the type of information available for all local areas.

For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.

 

LOCAL SALES TAX MAKES BIG GAINS

The Gazette, 7.19.18

Sales tax collections in Colorado Springs for June, based on transactions in May, rose 6.3 percent to $14.2 million, the sixth consecutive monthly increase and the biggest gain since June 2017.

Nearly one-third of the June increase came from a 17.4 percent jump in miscellaneous retail, which includes sales from Amazon, to $1.87 million. Other big gains came from business services, commercial machines and building materials.  

According to Tom Binnings, senior economist for Summit Economics LLC, a local economic research and consulting firm, housing construction and business investment have been gaining strength nationwide since last year’s tax cut.  He said the City’s sales tax numbers are “pretty indicative of a continuing economic expansion”.

 

THE BENEFITS OF A LOCAL MORTGAGE LENDER

The Wall Street Journal, 4.27.18

I have always encouraged my clients to consider a local mortgage lender and was pleased to read this article which perfectly explains my reasons for that.

In tight housing markets like Colorado Springs where bidding wars are becoming commonplace, buyers who need financing can strengthen their offers by working with a locally based mortgage broker or loan officer, according to real estate agents and lenders.  

Agents tend to want to work with buyers whose lenders know the local market and have a record of getting deals done.  That reassures the listing agent and the seller that a sale will likely close.  Confidence that a sale will close can often separate a winning bid from the rest in a fast-moving market such as ours.

Online lenders can offer convenience and it is still useful for borrowers to shop around for the best rates and terms but lenders in a hot market caution that a small difference in rates isn’t the most decisive factor in choosing a lender.  The ability to close is even more important.

Reputation also matters.  Finding someone you can do business with and communicate with easily is also very important.  As is speed—often sellers fielding multiple offers will choose the buyer who can close quickly, making it difficult for buyers who need the typical 30 to 45 day window to get a loan.  Lenders in fast-paced markets are tuned to quicker closings.

Working with a mortgage professional who has an existing relationship with a buyer’s agent also tends to mean more personal contact and the ability to get questions answered promptly.  I’ve personally found that my relationship with a number of local lenders has made the difference between getting a contract accepted and not. These relationships, built over the years, makes for easy discourse between my buyers and the lenders.

Some other tips to consider:

• See Double.  Sometimes it is advisable to “double-app”—that is, to apply for a mortgage from the lender with the best rates and from the lender with the local relationships.  The latter provides the additional security of getting a loan quickly and may be able to match the other firm’s rates.

 

• Vet your cousin.  Just because your cousin does mortgage loans doesn’t mean that your cousin is a good loan officer.  If you want to work with someone you know personally, or someone from your bank, have them speak with your real estate agent first, and reassure them of their reputation and relevant experience.  Your agent can then communicate their bona fides to the listing agent.

 

• Home (town) appraisal.  Even if you work with a national firm, it is important to make sure the company uses local appraisers who know the difference in value between various neighborhood communities. That is especially true when a bidding war might mean the property sells for a significant premium over the asking price.

 

HOMEOWNERS ARE UNDERINSURED AS HURRICANE SEASON OR ANOTHER NATURAL DISASTER OCCURS

The Wall Street Journal, 7.19.18

Many U.S. homeowners are inadequately insured for natural catastrophic damage going into the height of the Atlantic hurricane season.  

And, while we don’t face hurricanes in the Colorado Springs area, we do have fires, flooding, tornadoes and the like and many homeowners here are underinsured, with policy limits too low to cover the full cost of repairing or rebuilding their properties.

Homeowners often fail to increase their policy limits if the expand or upgrade their homes and with the ever-increasing cost of building materials, the cost of rebuilding or replacing can escalate quickly.

My advice to you?  Have a yearly meeting with your home insurer to make certain that your home is adequately covered in case of catastrophic damage.  Hopefully you will never need it, but if you do, you’ll be glad you took that precaution.

July 9, 2018

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.

 

 

ACTUALLY, IT’S  BEYOND GREAT NEWS…

As most of you know, when it comes to most everything—I’m a very positive kind of guy.  But even I could not dream up a scenario that represents all the good things that are happening in the Colorado Springs area.  

And I’m not just referring to Residential real estate.  Good things are happening in so many areas for our City and I just couldn’t be happier and I can’t wait to share it.

To start with, things in Residential real estate are showing no signs of slowing down.  In just two days this past week I had offers either accepted for my buyers or my sellers on four different properties.  In one case, my seller had 6 offers in one day and the accepted offer was considerably over listing price.  That same seller then had to quickly find another home, and while it took several tries, we were able to get an offer accepted a few days later. Whew.  I know they are relieved to know there’s somewhere to go when their present home closes.  

It’s still a bit of a frenzy due to the low inventory which is keeping prices on the high side and creating all kinds of new scenarios for those who had their mind set in looking in just one neighborhood or had not considered new construction as an option. In today’s market, one has to consider ALL options—which oftentimes opens up a number of new things to pursue. 

In the under $300,000 range there are so few listings and so much competition that first-time buyers are quickly being priced out of the market at present.  As much of an advocate as I am of home ownership, I find this troubling to say the least.  

Part of the low inventory can be attributed to our continuation as one of the “hottest” real estate markets in the U.S.  Colorado Springs was ranked No. 9 in Realtor.com’s June “hotness index”,which identifies the nation’s top 20 metropolitan areas for single-family housing.  We moved up two spots from number 11 in May and our homes have seen record-setting prices in recent times.

When you add that to our burgeoning economy, low unemployment rate and the high number of available jobs in diverse fields, you can begin to understand the problem.  

Locally and across much of the U.S., it will continue to be a ‘Seller’s Market” until we have more available homes.  Even when it comes to new construction, which a number of my clients have considered of late, it can be tough.  Local homebuilding is on track to hit a 13-year high and the pace shows no signs of a slowdown. Lots are going quickly and prices are on the rise due to escalating lumber, aluminum and copper costs.  And the turnaround times are getting a bit longer than normal.  

However, if you have the time, new construction may be a perfect option for you.  With my longstanding relationship with most local builders, I can help you in this area at no additional cost to you. So if you’ve considered this, give me a call and we can address your particular situation. 

Clients continue to ask me if this is a good time to buy or sell.  My answer will always be the same—NOW is always a good time to buy….and to sell. There are many options to consider and my 46 years in the local real estate arena gives you a big boost when it comes to finding the solution for your wants, needs and budget. In an environment of multiple offers, many in cash and over list price, it takes my kind of experience to help you make an offer that warrants at least a second look and has a good chance of getting accepted by the seller.

And once again…if you’re even considering a move and wondering how all of the above applies to you,simply give me a call today at 593.1000 or email me at Harry@HarrySalzman.comand let’s see how I can put my special brand of customer service to work for you.

 

And now for June statistics…

Homes are selling at 100.6% of listing price with the average days on the market at a very low 18.  

This continues to be great news for both buyers and sellers but with homes selling so fast it still necessitates knowing where you plan to move next prior to listing your present home.

The Monthly Summary shows that compared to a year ago, total active listings are the same for Single Family/Patio Homes and down 12.4% for Condo/Townhomes.  New listings are down 10.0% for Single Family/Patio Homes and down 11.0% for Condo/Townhomes.  

For more stats, please see the following article.

 

JUNE 2018 WAS ANOTHER RECORD SETTING MONTH IN LOCAL RESIDENTIAL real estate

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

Here are some highlights from the June 2018 PPAR report. A look at the Median Sales Prices will show that prices have continued their record setting pace for the fourth straight month!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

 

In comparing June 2018 to June 2017 for All Homes in PPAR:                      

                         Single Family/Patio Homes:

·       New Listings are 2,051, Down 10.0%

·       Number of Sales are 1,737, Down 0.3%

·      Average Sales Price is $361,499, Up 10.8%

·      Median Sales Price is $324,750, Up 13.8 %

·       Total Active Listings are 2,162, Same as last year

·       Months Supply is 1.2

 

                        Condo/Townhomes:

·       New Listings are 268, Down 11.0%

·       Number of Sales are 202, Down 18.5%

·      Average Sales Price is $230,142, Up 15.6%

·      Median Sales Price is $216,500, Up 20.3%

·       Total Active Listings are 141, Down 12.4%

·       Months Supply is 0.7

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price               Median Sales Price

                                                    June 2018                               June 2017

Black Forest                             $518,500                              $571,000                        

Briargate                                  $412,500                              $386,000       

Central                                      $265,000                              $228,500

East                                           $268,750                              $236,250

Fountain Valley:                       $270,000                              $259,825

Manitou Springs:                    $285,000                              $397,500

Marksheffel:                             $331,750                             $316,750

Northeast:                                $309,950                              $270,000

Northgate:                               $466,406                              $472,455            

Northwest:                               $425,000                              $370,000           

Old Colorado City:                  $317,500                              $248,500           

Powers:                                    $305,500                              $272,000

Southeast:                                $230,000                              $208,000

Southwest:                               $399,750                              $421,000

Tri-Lakes:                                  $562,533                              $479,649

West:                                         $310,000                              $285,000

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

COLORADO’S ECONOMY EARNS “TOP 5” RANKING IN THE U.S.

The Gazette, 6.16.18

WalletHub, the personal finance website, rankedColorado as the nation’s fifth-best economy,trailing only Washington, Utah, Massachusetts and California.  

In the individual components, Colorado ranked second in the highest economic growth and lowest unemployment rate, fourth in most startup activity and fifth in highest median annual household income, but third lowest in fewest exports per capita. 

The state economies were ranked by WalletHub across three, equally-weighted categories—economic activity, economic health and innovation potential, using 28 different statistics.  Colorado ranked eighth in activity, third in health and fourth in potential.  

 

AND THIS FROM ELLIOT EISENBERG, THE BOWTIE ECONOMIST…

Good news on the unemployment front:

“May’s employment numbers were excellent.  The unemployment rate fell to 3.8%, a level last seen in 4/00!  The unemployment rate for African Americans declined to 5.9%, the lowest level since record keeping began in 1/72, and the unemployment rate for women was 3.6%, its lowest since 1953!  Lastly, the unemployment rate for those with less than a HS diploma hit 5.4%, a near record.”

Colorado Springs’ unemployment rate fell to 3.1% in May, the lowest level in a year—and as I mentioned earlier—just another reason why there are so few homes for sale!

 

UCCS ECONOMIC FORUM DASHBOARD

UCCS Economic Forum, 6.21,18

As a sponsor since its inception, I receive information from the UCCS Economic Forum which I regularly share with my readers.  For the most recent statistics, you can click here for a copy, both nationally and local, concerning labor force/unemployment, wages, demographics, real estate, tourism and more.

If you have any questions, please give me a call.

 

SKY SOX TICKETS ARE GOING FAST…

Just a reminder that I have four front row season tickets for the Colorado Springs Sky Sox, free for the asking on a first-come, first-served basis.  

The weather’s been great for baseball-watching and tickets for Friday fireworks and Sunday 50 cent hot dog afternoons go quickly so please call me to reserve yours for the date of your choice.

​

FEATURED LISTING:

***YOUR HOME CAN BE FEATURED HERE…..CALL ME AND LET’S DISCUSS!***

June 18, 2018

HARRY’S BI-WEEKLY UPDATE

          A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.

THE LOCAL RESIDENTIAL real estate MARKET FEELS LIKE A MERRY-GO-ROUND AT TIMES…

…one that just keeps moving and faster and faster these days.  Our tight local inventory is keeping everyone on their toes.  Not only does it allow fewer choices in the resale sector but multiple offers and those considerably over listing price are the new “normal”.

And with the prices of lumber, copper, aluminum and other building materials escalating daily, even the prices of new construction are rising faster than normal.  Turnaround times in new construction are getting longer too, as more folks are turning to that option than in the past few years.  

Interest rates, while fluctuating, are still historically low but with the Federal Reserve again raising rates this past week and having intentions to raise them several times more this year—we are beginning to see people concerned that they could get priced out of homeownership.

Colorado Springs is one the of “hottest” markets in the country and while that’s a good thing for those of us who live here, it’s making things a bit tough for first-time buyers and those wanting to sell and trade up.  Homes are selling at such a rapid pace that I advise anyone looking to trade up or relocate to a new neighborhood to know exactly where they plan to move PRIOR to listing their present home.  Closing times are getting shorter and if you don’t have your next move planned you could find yourself “homeless” so to speak.

It’s especially tough for folks looking to relocate to the Springs, and we are experiencing a lot of activity in that area at present.  Those relocating are usually here for a limited time on “buying trips” and unfortunately many of the homes they wish to see are sold even before they can consider them.  Several of my clients have bought homes without even seeing them because they don’t want to miss out on a chance to make an offer in person.  This is something many of us Realtors have not seen before, but unless there are more available homes it’s not going to change anytime soon.

This is most definitely still a Seller’s Market and will continue to be so until there are more listings. If you have even considered whether a move might be good for you and your family, NOW is the time to check out the possibilities. 

While the market is indeed tight, there are still homes available in MOST price ranges and neighborhoods and we can find one that fits your wants, needs and budget.  That’s where I come in.  My 46 plus years in local real estate is your biggest asset. I know the “ins and outs” of negotiation, finding the right lender for your individual situation and always do my best to make certain that the first offer you make is one that will at least get attention, if not make it to closing.  

New construction can also be a possibility and I can help you in that area, too.  I have longstanding relationships with most of the local homebuilders and my expertise in this arena is yours at no additional cost to you.

So, there you go.  My advice? If you are even thinking of making a move, call me yesterday--you don’t have a minute to waste.  I can be reached at 593.1000 or email me at Harry@HarrySalzman.comtoday and let’s get the ball rolling to make your residential real estate dreams come true.

 

MAY 2018 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR CONTINUING UPWARD TREND IN GREATER DETAIL

Pikes Peak REALTORS^®Services Corp., 

These reports contain much greater detail than the first of the month reports I share and cover ALL residential areas in the Pikes Peak Region. 

In the recently published May 2018 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were down 3.8% for the single-family/patio homes and down 16.4% for condo/townhomes.  

     The “Activity Snapshot” shows the one-year change:

• Sold Listings for All Properties was down 6.3%
• Median Sales Price for All Properties was up 13.0%
• Active Listings on All Properties was down 18.4%.

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 34-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, Old Colorado City, below to show you the type of information available for all local areas.

For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.

 

CONSUMER SENTIMENT BREAKS RECORD—AGAIN

RealtorMag, 6.11.18

Fannie Mae’s Home Purchase Sentiment Index reached an all-time survey high for the second straight month in May.  However, as home prices rise, consumer attitudes about buying and selling a home are diverging even more.

The net share of survey respondents who say now is a good time to sell rose to 46% and is now up 14 percentage points year-over-year. Conversely, the net share who say now is a good time to buy fell to 28% and has shown little improvement over the past year.

According to Doug Duncan, Fannie Mae’s chief economist (who will be leaving the organization in the near future), the Home Purchase Sentiment Index “edged up to another survey high in May, bolstered in part by a fresh record high in the net share of consumers who says it’s a good time to sell a home.”  

“However,” he continued, “the perception of high home prices that underlies this optimism cuts both ways, boosting not only the good-time-to-sell sentiment but also the view that it’s a bad time to buy, and presents a potential dilemma to repeat buyers.”

Here’s a look at other results from the May survey:

• 49%:  The net share of Americans who say home prices will rise in the next 12 months, which is unchanged from the month prior.

 

• 78%: The net share of Americans who say they are not concerned about losing their job, rising 2% month-over-month to reach a new survey high.

 

• 21%: The net share of Americans who say their household income is significantly higher than it was 12 months ago, up 3 percentage points month-over-month to reach a new survey high.

 

My take from the survey?  Once again, it’s a great time to both buy and sell.  The local economy and job market are both doing well. Interest rates are still relatively low and home prices are only going to continue to rise, however possibly not at such a rapid rate once there are more homes to sell.  If you’ve been waiting to put the home equity you’ve earned to work for you—call me and let’s see what we can do.

 

COLORADO SPRINGS JOB MARKET IS ONE OF THE BEST

The Gazette, 6.12.18

And speaking of our job market…a survey by staffing giant ManpowerGroup has said that it will be among the best in the nation—tied with three other cities as the nation’s fifth best—during the third quarter 2018.  This is a big move up from the second quarter where the Springs was ranked 14^th, tied with five other cities.

Manpower’s definition of the “best” is those with the biggest difference between the percentage of local employers planning to hire additional staff and those expecting cuts.  The survey includes more than 11,500 employers and Manpower does not disclose the number of participants in the local survey.

The “net employment outlook” for Colorado Springs is projected at 30 percent in the July-to-September quarter with 21 percent of employers surveyed anticipating additional hiring and just 1 percent forecasting cuts. The rest indicated they expect no change in staffing levels or were not sure of plans.

The Springs ranked ahead of Denver, the only other Colorado city in the survey, which was tied with five other cities at 19^thbest.

The local unemployment rate remained unchanged from March at 3.2 percent in April, or just 0.4 percentage points above the lowest rate since 1990 and slightly higher than the statewide rate of 2.9 percent.

According to Tatiana Bailey, director of the UCCS Economic Forum, “The number of openings listed by Pikes Peak Workforce Center exceeds the number of available workers by nearly 1,200 and that gap is again widening after narrowing for much of the past six months.”

“The labor market keeps getting tighter and tighter. Having an unemployment rate this low along with this many openings is an indicator of an expanding economy,” Bailey said.

The ManpowerGroup survey found job prospects strong in nearly every sector of the local economy with government the only sector expected to remain unchanged. 

Other details from the survey:

• The statewide and Denver area outlooks weren’t quite as strong as the local outlook at 28 percent and 25 percent, respectively.  Colorado ranked fourth, tied with Alabama and Alaska, after Indiana, Wisconsin and Montana.

 

• Our local outlook was stronger than the national average of 21 percent, or 18 percent after seasonal adjustments. The national outlook is slightly improved from 20 percent, or 17 percent after seasonal adjustments, during the same quarter last year.

 

• All industry sectors monitored by Manpower had outlooks in the third quarter of 13 percent or more, or 11 percent after seasonal adjustments.

 

TAX LAWS HAVE BUYERS ON THE MOVE

The Wall Street Journal, 6.8.18

The new tax rules that cap deductions of state and local taxes are having a disproportionate effect on taxpayers who live in states with high income taxes and property taxes.  While it’s still too early to quantify the impact of the Tax Cuts and Jobs Act, which became effective on January 1, some real estate professionals say they are starting to see early signs of an exodus to low-tax states.

Prior to the new rules, taxpayers who itemized could write off an unlimited amount of state and local taxes, unless disallowed under the alternative minimum tax.  Now the deductions are capped at $10,000.

The change most affects taxpayers in states with high income and property taxes.  If this is of concern to you, please discuss with your tax advisor or accountant to see if and how these new rules pertain to your individual situation.

However, before you consider moving for tax purposes, here are some things to consider:

• It isn’t about the taxes.  You need to consider your lifestyle as well.  It is great to save money but if you’re not a Florida person and you move there just to save taxes, you’re making a big mistake.

 

• Look at all the costs.  In deciding whether to move, and where—look at the other costs of ownership.  A state with low income taxes may make up for it with a higher sales tax.  Or you might end up paying substantially higher costs for homeowner’s insurance.  Therefore, you might ultimately save on income taxes by establishing residency elsewhere, but if the state you’re moving to has higher costs of ownership, it might turn out to be a wash.

 

• Keep up on the news.  Some states are trying to fight back against the federal limitations on the state and local tax deductions through workarounds that would allow residents to continue to benefit from the deductions.  There is no way of knowing, however, if these tactics will ultimately survive a challenge by the IRS.

 

 

June 4, 2018

 

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.

GOOD TIMES IN LOCAL RESIDENTIAL real estate FOR BOTH BUYERS AND SELLERS…

Opportunities abound at present and if you are either a potential buyer or seller you might want to consider some of the things I’m about to share.

Colorado Springs continues to be one of the “hottest” markets in the country---#11 in the May 2018 “Top Performing Markets” as ranked by realtor.com.  Home prices here are continuing to surge and nationally prices also reached an all-time high in May.  

And rising home prices are showing few signs of slowing.  Javier Vivas, director of economic research at realtor.com said, “Unfortunately for buyers, median list prices continue to show strong yearly growth and fail to hint that home values will stall any time soon.”  Despite this, the market is decelerating a bit as more homes are coming onto the market.

For the first time in ages, we are starting to see more people listing their homes in the Pikes Peak area. These are likely folks who have been sitting on the fence and realize that NOW is the time to make a move before interest rates or prices rise even more.  Whatever the reason, it’s a blessing for those who have been searching for days with so few listings from which to choose, along with the obstacles of multiple offers and offers over listing price.  But there is even more of an upside for localbuyers and sellers.

As you will read, nationally there is still a dearth of listings and that has resulted in the interest rates to drop by ½ a percentage point in the last week.  This makes sense as a shortage of homes translates into a shortage of applications for loans which translates into lower rates.

The good news for us is that while we are starting to have more listings, we still get the advantage of the lower interest rates.  What that means is that buyers are able to get more home for the same monthly payment and sellers are seeing more buyers who can qualify for loans at the lower percentage rate.  It’s a total win-win for all.

If you’re even considering a move and wondering how all of the above applies to your individual wants, needs and budget,simply give me a call today at 593.1000 or email me at Harry@HarrySalzman.comand let’s see how I can put my special brand of customer service to work for you.

 

And now for May statistics…

Homes are selling at 100.7% of listing price with the average days on the market at a very low 21.  

This continues to be great news for both buyers and sellers but with homes selling so fast it still necessitates knowing where you plan to move next prior to listing your present home.

The Monthly Summary shows that compared to a year ago, total active listings are up 1.4% for Single Family/Patio Homes and down 12.0% for Condo/Townhomes.  New listings are up 1.3% for Single Family/Patio Homes and down 9.1% for Condo/Townhomes.  

On a VERY positive note, Total Active Listings month over month from April 2018 to May 2018 were up 23.7% for Single Family/Patio Homes and up 18.3% for Condo/Townhomes.  This is indicative of what I mentioned above—folks are realizing that NOW is the time to sell….and to buy.  Waiting is going to cost you one way or another, so don’t delay.  Call me today if you’re ready to discover what this current real estate market can mean to you.  

For more stats, please see the following article.

 

MAY 2018 WAS ANOTHER OUTSTANDING MONTH IN LOCAL RESIDENTIAL real estate

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

Here are some highlights from the May 2018 PPAR report. A look at the Median Sales Prices should keep a big smile on many of your faces!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing May 2018 to May 2017 for All Homes in PPAR:                     

                      Single Family/Patio Homes:

·       New Listings are 2,080, Up 1.3%

·       Number of Sales are 1,568, Down 3.9%

·      Average Sales Price is $355,927, Up 11.2%

·      Median Sales Price is $317,250, Up 13.3 %

·       Total Active Listings are 1,885, Up 1.4%

·       Months Supply is 1.1

 

                        Condo/Townhomes:

·       New Listings are 240, Down 9.1%

·       Number of Sales are 19, Down 12.4%

·      Average Sales Price is $225,266, Up 18.6%

·      Median Sales Price is $210,000, Up 13.5%

·       Total Active Listings are 110, Down 12.0%

·       Months Supply is 0.6

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price               Median Sales Price

                                                     May 2018                                 May 2017

Black Forest                             $517,275                              $439,500                      

Briargate                                  $412,180                              $383,750            

Central                                      $269,000                              $221,500

East                                           $265,500                              $235,000

Fountain Valley:                       $269,450                              $245,000

Manitou Springs:                     $385,000                              $395,000

Marksheffel:                             $342,550                             $284,000

Northeast:                                $310,000                              $276,500

Northgate:                                $435,000                              $475,648          

Northwest:                                $413,750                              $437,000            

Old Colorado City:                   $340,000                             $296,500           

Powers:                                     $300,000                              $271,500 

Southwest:                               $380,700                              $342,450

Tri-Lakes:                                  $528,500                              $492,500

West:                                         $305,000                              $272,500

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

LOCAL HOMEBUILDING HEATS UP IN MAY

The Gazette, 6.2.18

The total of permits for single family homes in El Paso County last month surged nearly 29 percent over the same period last year.  Records show that the total of 443 permits was the largest number of single family permits for any month since August 2005.  

According to the Piles Peak Regional Building Department, year to date, single family permits totaled 1,778, up almost 24 percent over the same period in 2017.

There are a number of reasons for this, including local and national economic recovery, more jobs and lower mortgage rates even as they begin to rise.  Add that to the fact that there have been fewer existing homes for sale and you can see why many families are choosing new construction.  

This has been the option of several of my clients in recent months and in case you aren’t aware—I can assist you in the purchase of a newly constructed home.  Knowing the “ins and outs” of new home construction and how to get the most for your dollars is something I offer at no additional to you. I’ve got a good working relationship with most all of the local homebuilders and can help make the entire process as stress free as possible for you.

If new construction is something you’ve considered, just give me a call and let’s see what’s out there for you.

 

MORTGAGE RATES RETREAT FROM 7 YEAR HIGH

RealtorMag.com, 6.3.18

Mortgage rates eased a bit this week after climbing to their highest level in more than seven years.  According to Sam Khater, Freddie Mac’s chief economist, it was the first decline in four weeks.  The 30-year fixed-rate mortgage fell 10 basis points to 4.56 percent average this past week.

“The decline was driven by recent trade and geopolitical issues, which led to a sudden decrease in long-term Treasury yields,” Khater says.  “Meanwhile, confident American consumers shrugged off the market volatility, as purchase mortgage applications continue to trend higher than a year ago.”

However, even with higher rates this year, Khater believe demand from home buyers will stay elevated as long as job growth and other economic fundamentals stay strong.

“Extremely low inventory conditions in most markets are preventing sales from breaking out while also keeping price growth elevated,” Khater says.  “Even if rates climb closer to 5 percent, sales have room to grow more—but only if current supply levels start increasing more meaningfully.”

As I mentioned earlier, this is a win-win for us locally.  We are seeing more listings while the interest rate has dropped.  This should translate into more sales even with the continued escalating home prices here.

 

May 21, 2018

HARRY’S BI-WEEKLY UPDATE

                         A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.

 

THE MISSING PIECE OF THE real estate PUZZLE IS ONLY A PHONE CALL AWAY

The residential real estate market is still in quite a frenzy due to a lack of available homes, rising mortgage interest rates, multiple offers and bidding wars--just to name a few reasons.  Sometimes it reminds me of trying to work a jigsaw puzzle but with no one way to complete it.

It takes real ingenuity, extensive experience in both the real estate and money markets and a whole lot of tenacity and persistence to get a deal done these days.  And that’s why my clients tell me time and again that they are so glad to have me as their real estate advocate.

I’m the “missing piece” of the real estate buying and selling puzzle.  

My 46 plus years in local real estate combined with my investment banking background give me a “heads up” over most when it comes to making deals that have a good chance of making it to closing.  I hate seeing my clients disappointed and work with them until we can find a “happy ending” no matter how long it takes.  

These days of quick turnarounds and multiple offers makes it imperative to have someone like me on your side.  I know the “ins and outs” of deal making, have experience in competitive offer environments and will work on behalf of my clients to get the job done.  

Having just returned from a national relocation conference, I found my peers all around the country suffering the same problems we face in the Colorado Springs arena.  The lack of homes is driving up prices and with interest rates hitting a 7 year high this past week this translates into an even greater frenzy for buyers and keeps the current “seller’s market” going strong.  I’ll address the interest rate hike later in this eNewsletter.  

According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), consumer frustration is rising in hot markets like ours.  He said that “home shoppers are struggling to find affordable properties to buy, and the prevalence of multiple bids is pushing prices further out of reach”.

His solution?  “Homebuilders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability.”  

If you’re considering selling to trade up—NOW is the time.  You will more than likely get more for your present home than you might expect, but it will likely sell fast so you need to know in advance where your next move will be.  

And…if you’re looking to buy for the first time or for investment purposes, you don’t have any time to wait either.  Prices are continuing to climb, and interest rates are going up with them.  Each day you delay is going to cost you in terms of monthly payments and more.  

If new construction is something you’ve been considering, I’m your guy, too.  I’ve got a good working relationship with local builders, understand the entire process and can help you get the most for your money, at no additional cost to you.

So, there you go.  My advice? If you are even thinking of making a move, call me yesterday. I don’t say that factiously—you don’t have a minute to waste.  Just give me a call at 593.1000 or email me at Harry@HarrySalzman.com today and let’s get the ball rolling to make your residential real estate dreams come true.

 

MEDIAN HOME GROWTH IN COLORADO SPRINGS IS MORE THAN TWO TIMES THAT OF THE U.S.A. 

National Association of Realtors

NAR just released its latest quarterly report of “Median Sales Price of Existing Single-Family Homes for Metropolitan Areas”,which compares the top 178 metropolitan statistical areas (MSAs).  

Nationally, the median existing single-family home price for the first quarter 2018 was $245,500, which is up 5.7% from the first quarter 2017.  The median sales price for existing single-family homes in Colorado Springs was $296,600, for a year-over-year increase of 11.5%.  This is more than two times above the national average and is great news for local homeowners.  

It’s also great news for anyone looking to buy here as our home values have consistently increased in recent times and I predict they will continue to do so for the foreseeable future.

For the first time, NAR has released a survey ranking these same 178 MSAs by housing “costs”. Colorado Springs is ranked as number 27 when it comes to prices—again, excellent news for homeowners and those looking to buy in our local area.  

For a detailed look at these surveys, please click here for the alphabetical listing and click here for the ranked listing by housing costs.

Any questions…you know where to find me!

 

APRIL 2018 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR CONTINUING UPWARD TREND IN GREATER DETAIL

Pikes Peak REALTORS^®Services Corp., 

These reports contain much greater detail than the first of the month reports I share and cover ALL residential areas in the Pikes Peak Region. 

The local median sales price increase year-over-year in all properties was 11.3%.

In the recently published April 2018 Monthly Indicators andLocal Market Updatefor El Paso and Teller Counties, new listings year-over-year were up 3.5% for the single-family/patio homes and down 23.6% for condo/townhomes.  

 

     The “Activity Snapshot”shows the one-year change:

• Sold Listings for All Properties was down 2.0%
• Median Sales Price for All Properties was up 11.3%
• Active Listings on All Properties was down 23.2%.

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 34-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, Briargate, below to show you the type of information available for all local areas.

 

For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.

 

ERA OF ULTRACHEAP MORTGAGES ENDS AS RATES HIT 7-YEAR HIGH

The Wall Street Journal, 5.19.18

Mortgage rates last week reached their highest level since 2011, signaling a shift of loans from a period of historic lows to a higher-rate environment.  

The average rate for a 30-year fixed-rate mortgage rose to 4.61% this past week from 4.55% the week prior, according to data released last Thursday by Freddie Mac and the increase has come faster than many economists predicted. A surging economy, the prospect of wage gains and a steep rise in prices for commodities such as lumber and gasoline have stoked inflation worries.

As rates approach 5%, the risk of the phenomenon known as “rate lock” grows, economists said.

A one-percentage point increase in rates can lead to a deduction in home sales of 7% to 8%, and the recent increases in home prices and mortgage rates could especially hurt first-time and moderate-income borrowers, according to Lawrence Yun.

What this can mean in real dollars, for example:

A $300,000 home last month at a 4.25% interest rate on a 30-year fixed rate loan would translate to a monthly payment of $1475.82.

At the present rate of 4.75% that monthly payment would be $1564.94, or a monthly increase of $89.12.

At the predicted 5% before the end of 2018, the monthly payment would be $1610.46—up $134.64 a month.

What’s more, the Federal Reserve, which raised rates in March, has said it expects to raise short-term rates two to three more times this year and three times next year.

This should come as no surprise to those of you who read my eNewsletters as I’ve been telling you to expect this for some time now.  So what I will repeat again—if you’ve been sitting on the fence—time to get off of it.  

Give me a call today and let’s see how we can put your residential wants, needs and budget to work before rates and prices get any higher.

 

 

May 3, 2018

 

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.

 

***EXTRA***EXTRA***EXTRA***

 

As I’m having breakfast and reading “The Wall Street Journal” and our Colorado Springs “Gazette” I took a double take and wanted to share it with you.

When you see the headlines below you can begin to understand my frustration in wanting to keep you informed of what’s happening with interest rates in a timely manner.  

Interest rates going up?  Interest rates remaining unchanged?  You can decide for yourself but I’m going to stick my neck out and say they are most definitely going up.  In any case, I thought I’d send you another “Joke of the Day”.

 

HAPPY THURSDAY TO ALL.

May 3, 2018

 

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.

Another crazy month in the life of your “real estate Therapist”.  Some days I find it difficult to believe just how nuts the residential real estate market has become here in Colorado Springs.  I’ve been telling you for a while about the lack of existing homes here for sale and that trend continues in full force.  

Spring home sales locally and in much of the country are slowing due to tight inventory at the lower end of the market, while lack of inventory in all price ranges is driving prices up, which is keeping sales activity below year ago levels according to the National Association of Realtors (NAR).

Lawrence Yun, chief economist for NAR, says “The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford.”

“Realtors throughout the country are seeing the seasonal ramp-up in buyer demand this spring but without the commensurate increase in new listings coming onto the market,” said Yun. “As a result, competition is swift, and homes are going under contract in roughly a month, which is four days faster than last year and a remarkable 17 days faster than March 2016.”

“Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets—especially those out West,” he added.  

And, according to surveys by NAR, Colorado remains one of the “hottest markets” in the country.  As I told you last month, Colorado Springs is an even “hotter” market than Denver – at number 6 in the survey--so this only adds to the frenzy I’ve been experiencing.  

For example locally, in the $300,000 or under range there are so few homes to be had that they are sometimes sold without even a showing.  

Several weeks ago I started working with a young couple who were recently transferred here.  Since this would be their “starter” home I thought I knew exactly what they would need.  While I was correct in their needs, I had no idea how difficult it would be to find them a home.  

Almost every home that came on the market in their price range was sold before we could even see it as there was a “revolving door” of agents and buyers in line for each home my clients wanted to see. Scheduling visits to prospective homes around the work schedule of my clients was a necessity of course, and I soon realized that looking for a home in this price range was going to become a full-time job for this couple.  

On one home we offered $20,000 over listing price and with 11 offers we still did not get the home. I advised my clients that going more than that over listing price and getting in a bidding war would be the wrong thing to do as they probably would need to live in the home longer to get their money out of it with reasonable appreciation when it came time to sell and trade up.

This process was repeated several times during the following week and then finally my clients got their home—without ever having walked into it!  Yes, you read that right.  We made the offer at the moment the home was listed without even seeing the home in person because we did not want to face disappointment again.  Having me as their agent helped as I wrote the offer in such a way that it would be difficult to get turned down and fortunately, it didn’t.  As I’ve said time and again, when it comes to helping my clients achieve their residential real estate goals—“one way or another”—I find a way to make it happen.

This is only one of the “home war” stories I’ve lived in the past year and things don’t seem to be letting up.  Folks are realizing that interest rates really are going up and aren’t likely to be this low again for quite some time, if ever.  For those of us who were around for the 15% and higher rates of the 1970’s and ‘80’s, a 5 percent, 30-year fixed-rate mortgage doesn’t seem high. But for the millennials who have never seen rates higher than 3-4 percent—each increase is astounding.  

My advice to those of you who have been sitting on the fence for whatever reason—this could be your last chance for a while to sell your present home at a great price and put the equity to work by trading up while interest rates, while not historically low, are still low in comparison to days of yore.

If you’re even considering a move and wondering how all of the above applies to your individual wants, needs and budget,simply give me a call today at 593.1000 or email me at Harry@HarrySalzman.comand let’s see how I can put my special brand of customer service to work for you.

 

And now for April statistics…

Homes are selling at 100.7% of listing price with the average days on the market at a very low 24.  

This continues to be great news for both buyers and sellers, despite the fact that interest rates are rising.  However, as I just mentioned, it does foster the necessity for fast decisions, so be forewarned.

As you will see in the Cumulative Year to Date Summary total sales numbers year over year in Single Family/Patio Homes are up 3.2% and down 1.3% for Condo/Townhomes. As you might imagine, this number would have been much higher had there been more homes for sale. 

The Monthly Summary shows that compared to a year ago, total active listings are down 2.9% for Single Family/Patio Homes and down 16.2% for Condo/Townhomes. New listings are up 8.5% for Single Family/Patio Homes and down 21.7% for Condo/Townhomes.  

I’m hoping the increase in new listings for single family/patio homes means that folks are finally seeing that this is a great time to sell and trade up. However, the reality is that total active listings are at a record low and remain a factor in the median price escalation.  

For more details, please see the following article.

 

APRIL 2018 WAS ANOTHER OUTSTANDING MONTH IN LOCAL RESIDENTIAL real estate

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

Here are some highlights from the April 2018 PPAR report.  A look at the Median Sales Prices should keep a big smile on many of your faces!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing April 2018 to April 2017 for All Homes in PPAR:

                        

                         Single Family/Patio Homes:

·       New Listings are 1,972 Up 8.5%

·       Number of Sales are 1,286, Down 1.8%

·      Average Sales Price is $348,527, Up 11.8%

·      Median Sales Price is $305,000, Up 10.9 %

·       Total Active Listings are 1,524, Down 2.9%

·       Months Supply is 1.2

 

                        Condo/Townhomes:

·       New Listings are 209, Down 21.7%

·       Number of Sales are 210, Up 1.4%

·      Average Sales Price is $236,915, Up 18.7%

·      Median Sales Price is $212,500 Up 11.8%

·       Total Active Listings are 93, Down 16.2%

·       Months Supply is 0.4

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price               Median Sales Price

                                                        April 2018                               April 2017

Black Forest                             $575,000                              $529,500                        

Briargate                                   $428,696                              $390,000            

Central                                     $240,115                              $244,945

East                                           $272,000                              $244,500

Fountain Valley:                      $275,000                              $242,000

Manitou Springs:                    $355,000                              $386,500

Marksheffel:                             $304,751                             $296,500

Northeast:                                $300,000                              $275,000

Northgate:                               $448,700                              $439,950            

Northwest:                               $470,000                              $397,500            

Old Colorado City:                  $352,000                              $252,450

Powers:                                    $289,000                              $255,000

Southwest:                              $419,250                              $290,000

Tri-Lakes:                                 $544,482                              $450,000

West:                                        $285,000                              $245,500

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

JUST TO COMPARE OUR NUMBERS TO THE U.S. HOUSING SNAPSHOT FOR MARCH…

This will give you an idea of just how well our residential real estate market is doing in comparison to the national average in March:

 

MORE AMERICANS ARE HOMEOWNERS IN 2018

RealtorMag, 4.27.18

More Americans became homeowners over the last year as the number of renters continued to decrease.  Homeownership rate in the first quarter 2018 was unchanged at 64.2 percent, higher than last year’s 63.6 percent, the U.S. Census Department reported last week.  This is also the fifth consecutive quarter of yearly increases in the ownership rate.

Since hitting a 50-year low in 2016, the homeownership rate has been gradually climbing back.  The rate peaked in 2004 at 69.2 percent, but despite recent climbs, it still remains below the 25-year average of 66.3 percent.  Meanwhile, the number of renters has dropped.

More young Americans are buying homes with the ownership rate for those under age 35 at 35.3 percent in the first quarter, which is a full percentage point higher than a year ago.

The homeowner vacancy rate dropped to 1.5 percent in the first quarter—the lowest vacancy rate since 2001, the Census Department reported.

 

 

MORTGAGE LOAN RATES ARE THE HIGHEST SINCE 2013

The Gazette, 4.27.18

Long-term mortgage rates continued to climb last week, reaching their highest level in more than four years.  It was the third straight week of increases for long-term mortgage rates with Freddie Mac saying that the average rate on 30-year, fixed-rate mortgages jumped to 4.58 percent from 4.47 percent two weeks ago.  By contrast, the benchmark rate averaged 4.03 percent a year ago.

The average rate on 15-year fixed rate loans rose to 4.02 percent from 3.94 percent for that same time period.  

This should not come as a surprise to you as I’ve been telling you to be prepared for this inevitability for quite some time now. 

What it means to you now is that you can no longer afford to wait if a move is in your near future.  If you do, it’s going to cost you—not only in the higher cost of a home, but also in the higher monthly payments.

So one more time—if you’re ready—I’m willing and able to help you achieve any and all of your residential real estate goals. But don’t delay—time is no longer on your side.  Give me a call at your earliest convenience and let’s see how we can make a move happen for you.

 

 

April 18, 2018

 

HARRY’S BI-WEEKLY UPDATE

                         A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.

 

GREETINGS FROM THE 2018 “NUMBER TWO BEST PLACE TO LIVE IN THE USA”…

The Gazette & U.S. News & World Report, 4.10.18

That’s according to the recently published U.S. News and World Report’s list.  If they had asked me or anyone living here we would tell them “It’s Number ONE”!  But, hey, we will be happy to be Number Two, because that means, like AVIS, “we try harder”.  

Quite honestly, it’s quite an honor and one the City has worked hard to earn.  While Austin, TX  has been number one for two years in a row—Colorado Springs has jumped up nine places from 11^thin 2017 while Denver fell one place in the rankings to number three.

The rankings are based on affordability, job prospects and quality of life, using data from the U.S. Census Bureau, the Gallup-Healthways Well-Being Index, the Bureau of Labor Statistics, the FBI Uniform Crime Report and other U.S. News rankings such as best high schools and hospitals.  

“While the job market certainly plays a major role in the decision”, according to Devon Thorsby, U.S. News & World Report real estate editor, “but so does the affordability of the area, the quality of education, commute time and growth of the area, signifying the metro area’s long-term success, among other factors.”

Quality of life is the most heavily weighted factor at 30 percent, followed by affordability at 25 percent.

And the Colorado Spring job market?  We added 3,600 people to the labor force in February, the biggest one-month gain in more than 19 years according to the U.S. Bureau of Labor Statistics. However, our jobless rate in February edged down to 3.4% from 3.5% in January.  That’s because even as the labor force grew, the number of people with jobs increased even faster.  

Colorado Springs Mayor, John Suthers said last week, “There are rankings and there are rankings.  TheU.S. News and World Reportranking is very prestigious and compares Colorado Springs against some of the nation’s most dynamic and prosperous cities, including Austin, Raleigh-Durham and Denver.”

“To be the second-best city is a remarkable transformation over the past several years.  We wouldn’t have been able to do it without citizens’ investment in roads and stormwater (projects), plus all of the private investment that has been made in the last few years.”

What Mayor Suthers left out was the significant role he has played in turning the City around.  His leadership has made believers out of corporate, airline and defense leaders , among others, who are investing in Colorado Springs at a rapid pace.  PlanCOS, of which I am a member, is working behind the scenes at the Mayor’s request to come up with a 20-year plan for land use in the City, while other committees are looking into other areas of continued improvement.  

We are most fortunate to have John Suthers as our Mayor and I am equally fortunate to call him a friend.

 

BY THE WAY..

The reason for this edition coming out a few days late is due to the fact that I was waiting for the detailed Local Market Updateand Monthly Indicatorsthat I like to share with you in the middle of the month.  Since they are not yet ready, I decided to send this without them.  If you are interested in seeing them after they are published, just give me a call.

 

THE RESIDENTIAL real estate MARKET HERE CONTINUES TO BE HOT…HOT…HOT…

Let me tell you once again about working in one of the “hottest real estate markets in the U.S.”. It’s quite a challenge these days.  There just are so few homes available for sale, most especially in the $350,00 or less market.  By the time a home is listed it’s already got a waiting list for showings and oftentimes there’s an offer before the day’s end.  Crazy times in residential real estate for sure.

This is great news, particularly for sellers who have their next move mapped out.  If you’ve been thinking of listing your home, there’s no better time than NOW. However, let me reemphasize that you need to know where you will be going next because there probably won’t be a lot of time to think about that after the sale.  

I wish I could report otherwise, but this is “life in the fast lane” for buyers and sellers of residential real estate.  Once there’s an offer, both you and I need to be available to get it done as best we can. Time isABSOLUTELY of the essence.  And when it comes to moving, you need to be open to neighborhoods you might not have looked at before or consider new construction as an option. I’ve assisted a number of clients in new construction purchases lately but a consideration there is the time frame in getting the home built.  If you need to move immediately, new construction is probably not for you.  

What I’m saying once more is that you need to consider everything BEFORE beginning your search.

That’s where my special brand of customer service is a blessing.  I can help you determine the best choices based on your individual situation and we can proceed from there.  As impossible as this might seem, I can always find a silver lining for you if it’s there.   

My advice?  If you are even thinking of making a move, call me yesterday. I don’t say that factiously—you don’t have a minute to waste.  Just give me a call at 593.1000 or email me at Harry@HarrySalzman.comtoday and let’s get the ball rolling to make your residential real estate dreams come true.

Note to potential investors: With increasing home values and interest rates, some potential buyers are going to find it difficult to qualify and will be looking for places to rent.  While you might pay more in terms of price and interest rates, this will be offset with the increased rental prices.

 

AS HOUSE PRICES RISE, STRAINS EMERGE

The Wall Street Journal, 4.6.18 & 4.11.18

Homeownership is becoming a bit more difficult for a number of potential buyers as more and more Americans are stretching to buy homes before they are priced out of the market.

According to data from mortgage data tracker, Core-Logic, Inc., roughly one in five conventional mortgage loans made this winter went to borrowers spending more than 45% of their monthly incomes on their mortgage payment and other debts—the highest proportion since the housing crisis.

Economists are saying that rising debt levels are a symptom of a market in which home prices are rising sharply in relation to incomes, driven in part by an historic lack of supply which is forcing prices higher.

Consumers are becoming more optimistic about the economy and their personal financial prospects but less hopeful that now is the right time to buy a home according to a recent survey by NAR.  

Mortgage rates, while still very low, are continuing to rise, and that puts even more strain on potential buyers.  The average monthly mortgage payment is up nearly 13% nationally, according to an analysis released by Realtor.com last month.  That’s an increase of $168 per month.  For luxury homes—the top 10% of the market—owners are paying an average of $241 more per month.

Sensitivity to mortgage rate fluctuations could also vary by generation.  Millennials came of age when interest rates were at historic lows, so even a minor upswing may seem significant.  But older borrowers may recall the days when rates reached double digits—as high as 18.45% in October 1981 according to Freddie Mac—so they may perceive rates as low even if they rise by a percentage point or two.

Rates are forecast to increase through at least the end of the year, so there’s no time like the present to get off the fence if you’ve been waiting.  Yes, you may get more for your home than you expect, but you can expect to pay more for the next one, too.  And interest rate hikes are not waiting for anyone—they are coming.  

So once again—if a move is in your near future, start the process NOW.  Just give me a call today and let’s see how we can best serve your needs, wants and budget. A word to the wise.

 

BASEBALL TIME IS HERE AGAIN…

The Sky Sox are playing here for their last season as a Triple A division of the Milwaukee Brewers and they are doing very well so far.

As you know, I have four front row tickets available on a first-come, first-served basis.  Just give me a call at 593.1000 and I will be happy to set tickets aside for you for any home game this season.  

The Friday night fireworks and 50 cent hot dog Sundays go fast, so give me a call when you know you might want to take the family to the game.

 

HARRY’S JOKE OF THE DAY:  

A real estate agent had just closed his first deal. To his horror though, he then discovered that the piece of land he'd sold was completely submerged under water.

"The customer's going to come back here pretty mad," he said to his boss. "Should I give him his money back?"

His boss roared at him, "Money back? What kind of salesman are you? Get out there and sell him a houseboat."

 

 

 

April 3, 2018

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.

As I was sitting in the Pikes Peak Center last week watching the production of “Let It Be”, I couldn’t help feel nostalgic—most especially with the rendition of John Lennon’s “Imagine.”  It reminded me of other times, different times, and yes, in some ways, easier times.

When the March 2018 PPAR statistics arrived in my email yesterday, I sang quietly to myself….”You may say I’m a dreamer….”

That’s exactly how I feel when I look at the current numbers and am just simply amazed at how far the Pikes Peak Residential real estate market has come since I began my career here in 1972.

The past few years have been nothing short of phenomenal for both buyers and sellers.  However, the still historically low interest rates, while slowly rising, are quite a change from the 1970’s, too and are helping first time and move up buyers get into homes of their dreams.  Investors are also seeing great returns as the rental market has picked up exponentially too.

Despite the shortage of listings, both here and across most of the U.S., Colorado Springs has climbed to number 3 on the Realtor.com “Hot List” which reflects the metro areas garnering the most listing views on their site, as well as where homes spend the fewest days on the market.

According to Javier Vivas, director of economic research at realtor.com, “Never in history have there been more eyes on fewer homes than today.  The price gains observed in the last days of March tell us the market is on pace to see half of the homes listed above $300,000 this summer.  This means buyers are not just having to pay more for the same home—they’re also seeing the mix of what’s available change more rapidly.”

And, according to the U.S. Census Bureau, El Paso County is seeing the largest gain in population among the other fast-growing counties along Colorado’s Front Range.  Our population increased by 12,526, the most in 2017, followed by Weld County and then Denver. 

While Denver remains the Colorado county with the highest population—704,621 people—El Paso County is close behind with 699,232 people.

State population forecasts show that El Paso County could initially surpass Denver in population in 2020.  They are expected to run neck-in-neck until 2035, when El Paso County is expected to take the lead for good. 

Local experts are attributing this to our high quality of life, low property taxes and utilities and increased economy and job growth. The county also attracts veterans, military retirees and young families. Spillover from the Denver area is also a factor according to Steve Schleiker, El Paso County Assessor. 

If you’re considering a move and wondering how all of the above applies to your individual wants, needs and budget, simply give me a call today at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you.

 

And now for a few AMAZING statistics…

Homes are selling at 100.3% of listing price with the average days on the market at a low 25. 

This continues to be great news for both buyers and sellers, despite the fact that interest rates are beginning to rise.  However, as I just mentioned, it does foster the necessity for fast decisions, so “a word to the wise”…

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 3.8% and 0.5% respectively for year-over-year.  As you might imagine, this number would have been much higher had there been more homes for sale. 

The Monthly Summary shows that compared to a year ago, total active listings are down 5.7% for Single Family/Patio Homes and down 30.2% for Condo/Townhomes, continuing a downward trend that tends to favor sellers.  New listings are down 0.1% for Single Family/Patio Homes and up 20.5% for Condo/Townhomes.  The reality is that total active listings are at a record low and remain a factor in the median price escalation. 

For more details, please see the following article.

 

MARCH 2018 WAS ANOTHER OUTSTANDING MONTH IN LOCAL RESIDENTIAL real estate

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

Here are some highlights from the March 2018 PPAR report.  A look at the Median Sales Prices should put a big smile on many of your faces!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing March 2018 to March 2017 for All Homes in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1,758, Down 0.1%
• Number of Sales are 1,231, Down 1.3%
• Average Sales Price is $340,594, Up 15.1%
• Median Sales Price is $300,000, Up 11.9 %
• Total Active Listings are 1,371, Down 5.7%
• Months Supply is 1.1

                        Condo/Townhomes:

• New Listings are 270, Up 20.5%
• Number of Sales are 175, Down 17.8%
• Average Sales Price is $211,378, Up 16.4%
• Median Sales Price is $208,546, Up 20.5%
• Total Active Listings are 97, Down 30.2%
• Months Supply is 0.6

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Median Sales Price

                                                  March 2018                            March 2017

Black Forest                            $552,500                              $465,000                      

Briargate                                  $385,000                              $380,000           

Central                                     $250,000                              $225,000

East                                          $260,000                              $242,500

Fountain Valley:                      $267,000                              $230,000

Manitou Springs:                    $290,000                              $341,225

Marksheffel:                             $319,000                             $295,000

Northeast:                                $292,500                              $267,750

Northgate:                                $469,000                              $430,000           

Northwest:                               $389,500                              $397,500           

Old Colorado City:                  $230,000                              $250.500

Powers:                                    $295,635                              $260,000

Southwest:                              $300,000                              $282,450

Tri-Lakes:                                $482,000                              $425,000

West:                                        $343,000                              $290,000

 

MARKET CHALLENGES DAMPEN HOPES BUT BUYERS MAY LOSE IF THEY DON’T ACT NOW

RealtorMag, 3/22 & 3/26.18

Although consumers are optimistic about the economy, job market and their own personal finances, more and more are expressing anxiety about their ability to buy a home, save for a down payment and qualify for a mortgage, according to the NAR’s Housing Opportunities and Market Experience survey for the first quarter of 2018.

The top barriers to homeownership is perceived to be saving for a down payment and qualifying for a mortgage, stemming from concerns about future incomes, student loan debt and having a low credit score, according to the survey.

As might be expected, current homeowners, older consumers and those living in more affordable housing markets express the most optimism about buying.  “The critical shortage of listings in most markets continues to spark a hike in home prices that is not easy for many buyers—especially first time buyers—to overcome,” says NAR Chief Economist Lawrence Yun.  “Adding more fuel to the affordability fire is the fact that mortgage rates have shot up to a four year high in just a few months.”

On the other hand, the share of homeowners who say now is a good time to sell has increased in the latest survey.  “There’s no question that a majority of homeowners have amassed considerable equity gains since the downturn,” Yun says.  “Home prices have grown a cumulative 48 percent since 2011 and are up 5.9 percent (nationally) through the first two months of this year.  Supply conditions would improve measurably—and ultimately lead to more sales—if a growing number of homeowners finally decide that this spring is the time to list their home for sale.”

Accordingly, buyers may want to speed up their home search this spring, as interest rates are forecasted to move higher in the coming months.  Forty-four percent of home buyers say rate increases will likely force them to settle for a smaller, less expensive home that requires a longer commute to their jobs, according to a realtor.com survey.  First time buyers may be most affected by rising costs, as increasing home prices and interest rates price some out of the market.

For the bulk of buyers, it’s not going to kill their decision to purchase a home and if anything, it should get them off the fence by creating a sense of urgency.  Higher rates are a “kick in the pants” for folks to start getting serious about buying now.

Rate increases—even minor ones—can add up over time.  Realtor.com offers this example:  On a $300,000 house with a 30-year-fixed-rate mortgage and 20 percent down payment, the difference between a 4 percent and a 5 percent mortgage rate is $142 a month.

I’ve been telling you for some time now that if you’re in the market—THERE’S NO LONGER TIME TO WAIT.  Folks who thought they could wait are now getting concerned about rising home prices and interest rates.  They are starting to realize that if they are going to buy, they probably should buy NOW.

Don’t wait any longer—give me a call today and let’s do what we can to make all your residential real estate dreams come true.