Real Estate Information Archive

April 18, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer 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.

 

 

RATES ARE STILL HIGH, AVAILABLE HOMES ARE STILL SCARCE, BUT…

…it couldn’t be a better time to buy or sell. 

Yes, you read that right.  In my 52 years of selling Residential real estate in the local market, I’ve witnessed just about every type of “market cycle” and there is one thing I can tell you for certain—it’s always a good time to buy or sell.

And, more importantly, there are always those who want or need to buy or sell at most every moment for various personal reasons.

This much I know.  While interest rates are high, there is no guarantee that they will drop significantly, and they could go higher.  Even if they do drop, they are not likely to ever fall to the historic lows we saw several years ago.  And when they do drop, you can always refinance at the lower rate.  In fact, some lenders are even writing that option into their loan documents.

Another way to get around the higher mortgage rates is to get a “buy down” from a builder or seller.  This will essentially lower your rate.

So, if the higher rates are a problem, there are ways around them, and I’m your guy when it comes to finding those ways.  My long-time experience, coupled with my Investment Banking background, gives my clients a distinct advantage in so many areas.

Home appreciation is another factor to consider.  As you have seen from the statistics I publish monthly, home values are not depreciating.  In fact, while they are not rising as quickly as in the recent past, they are “normalizing”, and it is very unlikely you will see home depreciation in the Colorado Springs area, especially with so many companies expanding or wanting to relocate here.

Home appreciation begins when you buy your home, no matter what your interest rate may be.  That means you are growing what is often your most valuable asset and that can be a considerable amount over time.  

If you have been waiting for rates to drop, either to buy for the first time or to sell and trade up, there is no better time than the present to find out how your wants, needs and budget considerations can work to get you the home of your dreams.

Just give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s discuss how together we can make that dream come true.

 

And, if you’ve got one minute and 39 seconds, take a look at my newest podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

 https://youtu.be/rS4mFhcQCJM

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

HOUSEHOLDS MAY FINALLY BE ADJUSTING TO HIGHER MORTGAGE RATES

Fannie Mae, March 2024

A recent Fannie Mae Home Purchase Sentiment Index showed that the percentage of respondents who said it is a good time to buy a home increased from 19% to 21% while those that said it is a bad time to buy decreased from 81% to 79%.  As a result, the net share of those who say it is a good time to buy increased 4 percentage points month over month.

In the same survey, the percentage of respondents who say it is a good time to sell a home increased from 65% to 66%, while the percentage of those who said it is a bad time to sell decreased from 35% to 34%.  As a result, the net share of those who say it is a good time to sell increased 2 percentage points month over month.

This monthly Fannie Mae survey was launched in 2010 and polls the adult general population in the U.S. to assess their attitudes toward owning and renting a home, purchase and rental prices, household finances and overall confidence in the economy.

The March 2024 survey, while indicating that folks are still worried about the economy in general, still shows that households may finally be adjusting to higher mortgage rates and ready to again consider buying and selling.

So, once more, if you’ve been considering a move, get a leg up on the potential competition by starting now.

 

7 TYPES OF TAX-DEDUCTIBLE HOME IMPROVEMENTS

National Association of Realtors (NAR) 4.9.24

Many homeowners say they’re planning major renovations this year and some of these projects may be eligible for a tax deduction which could help alleviate some of the high costs of homeownership.

Here are a few types of tax-deductible home improvements.  

 

• Energy-Efficient Upgrades

 

• Clean Energy Upgrades

 

• Historic Home Upgrades

 

• Medically Necessary Upgrades

 

• Home Office Repairs and Improvements

 

• Rental Property Repairs

 

• Capital Improvements

 

As always, be sure to discuss this with your personal tax advisor to find out if they apply to your individual situation.

 

THE PERKS OF DOWNSIZING WHEN YOU RETIRE…AN INFOGRAPHIC

KeepingCurrentMatters, 4.12.24

 

Some Highlights:

 

• If you’re about to retire, or just did, downsizing can be a good way to try to cut down on some of your expenses.

 

• Smaller homes typically have lower energy and maintenance costs.  Plus, you may have enough equity built up to fuel your move.

 

• If you’re thinking about moving to a smaller home, call me to help go over your goals and look at all your options in the local market.

 

WHAT BUYERS, SELLERS WANT MOST FROM real estate AGENTS

NAR, 4.4.24

As most of you are aware, there has been a lot of news concerning real estate brokers, fees, and more.  Most of us in the industry are still digesting all the upcoming potential rules and regulation changes and I will keep you informed as I gather the information.

A recent article published by the National Association of Realtors (NAR) stated that the majority of home buyers and sellers—nearly 90% of them—rely on real estate agents or brokers, but a new study from NAR indicated that what they need could differ depending on age and experience in the market.

For example, home buyers don’t just want help with finding a home, but also with negotiating and with learning about the real estate process, according to NAR’s 2024 Home Buyers and Sellers Generational Trends Report.

The study reported that “While the internet is being utilized throughout the home search, agents remain the most-used information source in the home search, followed by mobile or tablet search devices”. 

“Sellers, as well, turned to professionals to price their homes to potential buyers, sell within a specific time frame, and find ways to fix up their homes to sell them for more,” the study reported.

 

Buyers want a “Guide and a Coach”.  

Younger home buyers are more likely to say that one of the most difficult steps in the homebuying process—behind finding a property and saving for a down payment—is understanding the real estate process and the steps they need to take, the study found.

Older adults, ages 44 and up, tend to feel more confident heading into the purchase process, generally having had previous experience buying a home.  Nearly a quarter of older adults cited “no difficult steps” in the homebuying process, the survey says.  But they still report struggling with finding the right property and with completing the paperwork in a transaction.

 

WHAT BUYERS WANT MOST FROM real estate AGENTS

 

 

As buyers reflected on their experience, they reported that the most commonly cited benefits provided by real estate agents and brokers during the home purchase process were:

 

• Helping buyer understand the process:  61%

 

• Negotiating better sales contract terms:  46%

 

• Providing better list of service providers (i.e. home inspectors):  46%

 

• Improving buyer’s knowledge of search areas:  45%

 

• Negotiating a better price:  33%

 

• Shortening a buyer’s home search:  23%

 

• Expanding buyer’s search area:  21%

 

When choosing an agent, buyers said their top criteria were the agent’s experience (21%), honesty and trustworthiness (19%), reputation (15%), and whether the agent was a friend or family member (12%).  An agent’s reputation tended to be slightly more important to older generations than to younger generations, the study showed.

Home buyers also said they valued constant communication from their real estate agent, identifying their top likes as agents who personally call them to inform them of activities (73%), those who send them property information and communicating via text message (71%) and those who send them postings as soon as a property is listed or when the price changes or the listing is under contract (70%).

 

And now to Sellers…

 

What Home Seller Want:  Make Their Home Stand Out

More than one-third of home sellers—across all age groups—relied on a referral from a friend, neighbor or relative to find their real estate agent, the survey found.  Only 5% relied on internet searches to find one.  

Sellers reported their top criteria for choosing their real estate agent was the agent’s reputation, their honesty and trustworthiness, and whether the agent was a friend or family member.

 

WHAT SELLERS MOST WANT FROM real estate AGENTS, BY LEVEL OF SERVICE PROVIDED BY THE AGENT

 

 

I found this study to be very informative and I hope you did as well.  It makes me even more proud of my 52 years in this industry, to still be working with not only past clients, but also with children and even grandchildren of past clients.  I truly value your loyalty and work hard every day to continue to earn your trust. 

As I’ve said time and again, I’m not only in this only for a sale.  I’m also here to help my clients and their families find the place that will bring them the most personal happiness, and in the process, help earn them the added dividend of home appreciation.

 

 

HARRY’S JOKE OF THE DAY:   (HMMM…)

 

April 5, 2024

 

HARRY’S BI-WEEKLY UPDATE

       A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

SPRING BUYING AND SELLING SEASON IS ABOUT TO GET INTO FULL SWING…(I've still got Arizona Spring Baseball on the brain...full swing...get it?)...

And if you've even been thinking about buying or selling, sooner than later would be the best move (pun intended!)

Yes, mortgage rates are still considerably higher than two years ago, but home prices also continue to rise and don’t show any sign of stopping.  While they are rising much slower than several years ago, they are still rising as you will see from the statistics below.

What that means is that you are better off to buy now and refinance in a year or two when mortgage prices are lower.  Your home will likely appreciate during that time and of course, you will have the tax advantages that come with home ownership or buying as an investment.  

Of course, I’m not a tax advisor and can’t give you advice in that area, but it’s worth asking your investment and tax advisors to see how buying a home either for yourself or for investment can work for you.

There are even ways to negotiate mortgage rates and I can steer you in the right direction to see if that’s a possibility.

In fact, as most of you know, my help is invaluable.  The current market is not for the timid or inexperienced.  It takes a lot of advanced planning and knowledge of how to navigate these waters. 

And it’s important to take into consideration your individual wants, needs and budget requirements to come up with a viable plan.

April 1^st I began 52 years in local Residential real estate.  That, coupled with my Investment Banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And, if you’ve got one minute and 47 seconds, look at my newest podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/aBCEJgmi3FA

 

While you’re at it you might want to subscribe to my channel so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

MARCH 2024

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

Here are some highlights from the March 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 52.  For condo/townhomes it was 47.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.5% and for condo/townhomes it was 99.6%.  

 

In Teller County, the average days on the market for single family/patio homes was 77 and the sales/list price was 97.2%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing March 2024 to March 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,337, Down 5.4%

·       Number of Sales were 941, Down 12.5%

·       Average Sales Price was $527,629, Up 0.7%

·       Median Sales Price was $470,000, Up 2.2%

·       Total Active Listings are 1,868, Up 26.2%

·       Months Supply is 2.0, Down 2.1%

 

 

Condo/Townhomes:

·       New Listings were 220, Up 7.8% 

·       Number of Sales were 152, Down 6.2%

·       Average Sales Price was $366,100, Up 2.8%

·       Median Sales Price was $335,000, Down 1.5%

·       Total Active Listings are 364, Up 54.2%

·       Months Supply is 2.4, Down 8.8%

 

Now a look at more statistics…

 

MARCH 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Down 13.9%

 

• Median Sales Price for All Properties was Up 0.2%

 

• Active Listings on All Properties were Up 13.4%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

MARK YOUR CALENDARS…THE BEST TIME FOR SELLING A HOME IS ALMOST HERE

National Association of Realtors (NAR) 3.28.24

The week of April 14 could offer the perfect mix of market conditions for home sellers, according to a new realtor.com study.

The study, an analysis of trends in home sales, finds that sellers could potentially fetch as much as $34,000 more for their home if they list between April 14-20 when compared to the start of this year.  

Researchers are betting a powerful combination of high buyer demand, low seller competition and fewer price reductions that week—all of which work in a seller’s favor.

According to Danielle Hale, realtor.com’s chief economist, “Spring is generally the high season for home sales, and buyers tend to be more plentiful earlier in the year.”  

 “Because listing a home is a process, sellers should start preparing now so they can list their home at a time when conditions are likely to be most favorable, giving them the best chance of selling their home quickly and at a competitive price”, she added.  

Realtor.com’s analysis identified the “best time to list” by analyzing week-to-week listing metrics, including home prices, days on the market and number of listings, from 2018 to 2019 and 2021 to 2023 (the study excluded 2020 due to the Covid pandemic’s impact on the housing market).

 

What Makes April So Great for Sellers?

To begin with, housing inventory is down nearly 40% nationally compared to pre-pandemic levels, which offers opportunities for sellers this spring.  

But mortgage rates are higher--hovering  around 7%...and some home buyers have hit their affordability level and are leery of getting into the market now.

Still, researchers remain bullish that the week of April 14-20 is the right moment for sellers to make a move.  

Here’s why:

 

Higher home prices.  Historically, home prices during that week are typically 10.4% higher than the start of the year.  The study noted that “If 2024 follows last year’s seasonal trend, the national median listing price could be $7,400 higher than the average week, and $34,000 more than the start of the year”.

 

Increased buyer demand.  That same week also tends to offer 18.4% more online views per listing than the typical week.  In fact, realtor.com noted that in 2023, listing views surged even higher—up 22.8%--when compared to weekly averages during the rest of the year.  However, mortgage rates are still the wild card and falling rates will likely increase buyer demand while higher rates could make buyers more skittish.

 

Fast sales pace.  Homes tend to sell quicker during the week of April 14, selling about nine days faster than other weekly averages.  While housing inventory is rising but remaining historically low, buyers are forced to continue to compete for fewer properties.

 

Less competition from other sellers.  Typically, there are nearly 14% fewer homes on the market during that week comparted to other weekly averages.  Sellers stand to benefit from the least amount of competition from other sellers at that time.

 

Fewer price reductions.  Sellers tend to less frequently lower their asking prices in late winter and early spring, realtor.com’s data showed.  Historically, about 24% fewer homes had a price decrease during the week of April 14 compared to the average week of the year.

 

So, what are you waiting for?  It’s almost the week of April 14-20.  So if you have even thought of selling, give me a call and let’s get you the best price for your present home.

 

ERA SHIELDS QUARTERLY STAT PACK

Data through Quarter 1, 2024, ERA Shields

Here is data from my company’s quarterly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, March 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

I’ve reproduced the first page of the graphics below.  To access the report in its entirety, please click here.  If you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD 

Updated March 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr. Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy.

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

To read the monthly report, please click here.

March 28, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer 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.

 

 

I’VE BEEN IN ARIZONA FOR SPRING BASEBALL…HOWEVER…

I still wanted to touch base (pun intended) before next week’s eNewsletter.  Yes, the weather was great, the ball games were fun, and I ate too much good food.

But as those of you who know me are aware…I’m never far from my thoughts on Residential real estate.  In fact, I worked with a couple of my clients from afar and even managed to sell a home for one of them.

Which gets me to you, my clients and friends.  Spring buying and selling season is starting up and we should see more available homes for sale when the statistics for March come out next week.  

While activity has been relatively slow over the winter months due in part to the lack of available homes and high interest rates, I expect things to start picking up in the next month.

If you’ve been waiting for prices to come down you might be waiting a long time.  Folks still want to own if it’s at all possible and are finding creative ways to do so.  As I’ve mentioned in previous eNewsletters, just because the interest rates are higher than they have been in previous years, there are still ways to work with financial institutions and others to negotiate rates or get buydowns.

That’s where I come in.  

My almost 52 years in the local Residential real estate arena give me a heads up on most.  And when you add in my Investment Banking background, you will find I’m able to help in areas that other brokers can’t.  

It’s truly especially important in todays’ market to have a seasoned, knowledgeable professional in your corner.  So, what are you waiting for?

If you’ve even been thinking about selling to trade up or move to a new neighborhood, let’s get together and see how we can make your wants, needs and budget requirements work for you.

Just give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get started before the spring season is underway.

 

PS:  I’ll have more to say about the recent court rulings on real estate sales and commissions in next week’s eNewsletter.  Like most, I’m still trying to digest all the rulings and what they will mean to you and me.

 

JUST ANOTHER REASON TO BE A HOMEOWNER…

Bloomberg, 3.6.24

                          

According to new research from the Federal Reserve Bank of St. Louis, the wealth of the typical American senior climbed by about $91,000 during the pandemic years as home and stock values soared.

That was the median increase in net worth between 2019 and 2022 for households headed by someone 65 or older, according to data from the Fed’s Survey of Consumer Finances.  Households headed by someone 40 to 64 years old saw median gains of $57,800.

 

U.S. ECONOMIC, HOUSING AND MORTGAGE MARKET OUTLOOK—MARCH 2024

FreddieMac, 3.20.24

I just received this report from Freddie Mac and wanted to share some quick highlights with you:

 

• While the U.S. economy remains robust, inflation pressure continues, which could keep mortgage rates higher for longer.

 

• Homeowners’ insurance costs are growing but are a small fraction compared to the mortgatge principal and interest payments.

 

• Residential investment remained positive but slowed down from the 6.7% quarter-over-quarter increase in Q3 to 2.98% in Q4 2023.

 

• Home prices continue to exhibit strength.  The FHFA Purchase-Only Home Price Index for December 2023 rose 0.1% month-over-month compared to 0.4% in November 2023 and was up 6.6% year-over-year.  Despite the deceleration in December, house prices continue to outpace overall consumer prices. 

 

• Mortgage rates resumed their upward trajectory in February and averaged 6.8% for the month, as measured by Freddie Mac’s Primary Mortgage Market Survey.  This increase was mainly due to the stronger than expected inflation measures with markets pushing out the expectation of the Fed pivot to the second half of the year.

 

• The stability in rates brought back some activity into the housing market in January, with increases in existing and new home sales.  However, tight inventory is still a key barrier to home sale volumes.

 

• The U.S. economic outlook remains broadly positive.

 

• Freddie Mac expects the Federal Reserve to not cut rates until the summer at the earliest and potential upside surprises on inflation could push rate cuts out even further.

 

• They forecast mortgage rates to stay above 6.5% through this quarter and next.

 

• Assuming a scenario where inflation moves closer to target prompting the Federal Reserve to cut the federal funds rate, a modest recovery in home sales as mortgage rates drift down in the latter half of the year is expected.

 

ERA SHIELDS MONTHLY STAT PACK 

Data through February 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety. 

 

March 5, 2024

 

HARRY’S BI-WEEKLY UPDATE     

 A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

STILL A LOT OF QUESTIONS, BUT THE ANSWER?  NOW IS A GOOD A TIME TO BUY AND SELL

Interest rates are still fluctuating but I’m finding that folks are beginning to realize that a “normal” of somewhere in the 6% range is here to stay…at least for the foreseeable future.  In fact, while mortgage rates are currently higher than they have been in recent years, they are not abnormally high on a historical basis.  Look at this chart and you will see what I mean:

 

 

Yes, present conditions are still short of ideal, but “if you wait for ideal conditions, you may end up living in limbo instead of a new house” to quote an article I recently read in The Wall Street Journal.

What does that mean?  If you look at the local statistics from February, you will see that things are starting to look up in Residential real estate even before the traditional spring buying and selling season.  

Home prices continue to rise, and we are seeing more listings each month.  It appears that those who were waiting to see if prices would go down before they bought are realizing that each month they wait they are losing potential equity because prices are NOT going down.

And let’s not forget that that as mortgage rates fall, prices will continue to rise even faster, which means that there will be little improvement in affordability—another reason not to wait.

In fact, prices are continuing to rise.  Some of that has to do with the recent lack of available homes for sale but almost all 2024 forecasts from national and local economists indicate that home prices are going to continue to rise, just not at as quick as in the most recent past.  

According to the Home Price Expectation Survey by Fannie Mae, which includes projections from over one hundred economists, real estate experts and investment and market strategists, home prices are expected to see small but steady increases every year through 2028.

And it’s still a seller’s market now due to the low supply of available homes and that’s not likely to change real soon.

I’ve always said that no matter the state of the market there are always those who need or want to sell and those who need or want to buy.  That’s been the case for the more than 51 years I have worked in local Residential real estate, and I would guess it will continue to be so.

Millions of millennials are starting families and looking to buy homes.  Unemployment remains low amid strong economic growth.  Locally, several companies are expanding, and others are relocating here.  With them are employees who will be looking for homes to buy.

If you’ve been wanting to buy or sell but have waited for whatever the reason, now is a good time to consider your options.  You may be surprised to find that what you thought impossible might just be possible today.  The most important thing is to be mindful of what you want, need, and can afford.

And that’s where I come in.  The current market is not for the timid or inexperienced.  It takes a lot of advanced planning and knowledge of how to navigate these waters.  It’s crucial to take into consideration your individual wants, needs and budget requirements to come up with a viable plan.

My 51 plus years in Residential real estate, coupled with my Investment Banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And, if you’ve got one minute and 46 seconds, take a look at my newest podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

To watch, click here:

https://youtu.be/MBq1QkjgpqE?si=9WzhioEnVlSUYeLV

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

FEBRUARY 2024

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

Here are some highlights from the February 2024 PPAR report:

 

In El Paso County, the average days on the market for single family/patio homes was 52.  For condo/townhomes it was also 52.  

Also in El Paso County, the sales price/list price for single family/patio homes was 99.4% and for condo/townhomes it was 99.7%.  

In Teller County, the average days on the market for single family/patio homes was 67 and the sales/list price was 97.3%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing February 2024 to February 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,142, Up 17.0%

·       Number of Sales were 792, Up 1.8%

·       Average Sales Price was $511,272, Up 2.2%

·       Median Sales Price was $455,950, Up 3.6%

·       Total Active Listings are 1,830, Up 26.8%

·       Months Supply is 2.3, Up 14.9%

 

 

Condo/Townhomes:

·       New Listings were 187, Up 15.4% 

·       Number of Sales were 131, Up 26.0%

·       Average Sales Price was $365,720, Up 1.8%

·       Median Sales Price was $335,000, Down 0.4%

·       Total Active Listings are 351, Up 56.0%

·       Months Supply is 2.7, Up 2.2%

 

Now a look at more statistics…

 

FEBRUARY 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Up 7.0%
• Median Sales Price for All Properties was Up 3.8%
• Active Listings on All Properties were Up 9.9%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

COLORADO SPRINGS RANKS #88 IN THE Q4 2023 FHFA HOUSE PRICE INDEX

Federal Housing Finance Agency, 2.27.24

The Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a comprehensive collection of publicly available house price indexes that measure changes in single-family home values based on data that extend back to the mid-1970’s from all 50 states and over 400 American cities. 

The information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975.  

The FHFA HPI serves as a timely, accurate indicator of house price trends at various geographic levels.

I’ve shared the local statistics from this report each quarter for many years.

The recently published FHFA House Price Index for Q 4 2023 lists Colorado Springs as #88 out of the top 100 in house price changes during that quarter, up a couple of spots from #95 in the third quarter 2023.

While we are still in the top 100, we remain far below a year ago. Our lack of available homes for sale has kept us from ranking considerably higher and I am hopeful that things are beginning to turn around in that area.

The charts below illustrate the Colorado Springs changes both year-over-year and quarter-over-quarter.  If you have any questions, you know where to find me.

13 FEATURES NEW-HOME BUYERS SAY ARE ESSENTIAL AND DESIRABLE

National Association of Realtors (NAR) 3.1.24

New research is showing that house hunters are willing to accept a smaller property if it has some key amenities.

They appear willing to sacrifice property size to afford homeownership, and the newly constructed house has dropped to its lowest level in 13 years—2,479 square feet, according to new research from the National Association of Home Builders (NAHB).  In fact, 26% of builders say they plan to build even smaller in 2024, research shows.

But while buyers may accept a smaller home, they want it to be more personalized and want it to feel like it was made just for them and to be significantly different from their neighbors.

According to the NAHB survey called “What Home Buyers Really Want”, nearly 40% of home buyers say they’re willing to buy a home with a smaller lot while 35% say they’d buy a smaller house.  Respondents who would opt for a smaller home say they’d be most willing to shrink spaces like the home office (53%) and the dining room (52%).  But they’re not willing to sacrifice the size of the kitchen or closets.

Buyers are prioritizing other key features around the home.  Eighty percent or more of home buyers in NAHB’s survey rate the following property amenities as “essential” or “desirable”:

1. Laundry Room
2. Patio
3. Energy Star Windows
4. Exterior Lighting
5. Ceiling Fan
6. Garage Storage
7. Front Porch
8. Hardwood Flooring
9. Full Bath on the Main Level
10. Energy Star Appliances
11. Walk-in Pantry
12. Landscaping
13. Table Space in the Kitchen

 

Technology features are also gaining in popularity.  Over the last decade, the following home features have posted the most significant growth among home buyers, according to NAHB:

• Security Cameras
• Wired Home Security System
• Programmable Thermostat
• Multi-zone HVAC System
• Energy Management System
• Video Doorbell

 

Other home features showing significant growth over the past 10 years include:

• Quartz or Engineered Stone for Kitchen Countertops.
• Lighting Control System
• Outdoor Fireplace
• Outdoor Kitchen
• Built-in Seating in the Kitchen
• Exposed Beams

 

Also, with the growth of multigenerational living, more home buyers appear to prefer two primary bedroom suites rather than one.

Surveyed home builders say they are prioritizing many of these features that buyers want.  

If a new home purchase is something you are considering, I can help you here as well.  I have good working relationships with several local homebuilders and can assist you with site selection, elevation, and more.  I can also help direct you to mortgage lenders that are geared to your individual situation.  And did I mention that all of that is at no cost to you?  

If new home construction is something you want to consider, just give me a call and let’s see what we can find for you.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, February 2024

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

I’ve reproduced the first page of the graphics below.  To access the report in its entirety, please click here.  If you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD ANDS 2024 CITY COMPARISON REPORT

Updated February 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr. Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot”.  

I know several of you who enjoy statistics and use this information in your daily business life, and I will share it as always.  

To read the monthly updated report, please click here.

 

The UCCS Economic Forum also published a “2024 City Comparison Report” which compares Colorado Springs with Boise, Raleigh, Salt Lake City, San Antonio, Pueblo, and Denver in various capacities.  I know you will find this quite interesting.

To view the 2024 City Comparison Report, please click here.

 

February 20, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer 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.

 

 

TODAY’S RESIDENTIAL real estate MARKET CAN STILL BE SOMEWHAT PUZZLING

As I write this, I am right there with many of you…wondering how the pieces are going to come together during the upcoming spring buying and selling season.  I feel that it is going to be a busier time than we’ve seen in the last few years.

I have already had clients preparing their homes for sale and others who are considering their next move as well.

With the drop in mortgage interest rates combined with the increased equity due to higher home values, I’m finding folks getting ready to test the Residential real estate waters sooner than later.

I believe that there will be more homes on the market in the next few months and that will provide better choices and less frenzy than the recent past.  

My advice to those of you who have even considered a move?  Start your preparation now.  Consider your wants, needs and budget requirements and give me a call.  A move might be easier on your monthly budget than you think, but you won’t know until we put all the pieces together.

So, if you’ve even been thinking about a move, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get together and see how together we can make your Residential real estate dreams come true.

 

AND ANOTHER WORD FROM ME…

If you’ve got a minute and 47 seconds, I’ve got some additional news for you.  Click on the link below to hear my latest podcast:

 https://youtu.be/ZSco77QmK9o

Be sure to “subscribe” online to hear my “blurbs” when they become available.

 

COLORADO SPRINGS HOME PRICES ONCE AGAIN ROSE IN QUARTER FOUR…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 2.8.24 

Median prices of single-family homes across the nation rose for Fourth Quarter 2023 in 86% of the 221 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 3.5% to $391,700 from one year ago.

Home prices in Colorado Springs rose about the same—3.6%-- for that same time period and we were ranked number 47 based on Median Sales Prices of the 221 cities surveyed.  The Median Sale Price here at the end of Quarter Four 2023 was $459,300.  Prices reflect detached, single-family and patio homes but not townhomes or condominiums.   

And once more, the good news is that while our home values are increasing, they are still less than those in the Denver, Boulder, Ft. Collins and Greeley areas, which makes our city more attractive to potential companies and others wanting to relocate here.

Qualifying income for local mortgages continues to rise.  However, increased home value in your present home can likely give you a larger down payment.   That could possibly keep your monthly output lower than you might expect, even in a more expensive new home. 

To see all 221 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.   To see the qualifying income necessary for mortgages, click here.  

And if you have any questions, you know where to reach me.

 

LOWER RATES, MORE LISTINGS: WHAT LIES AHEAD FOR HOUSING THIS YEAR

Keeping Current Matters, 2.2024

As I wrote earlier, this has been a somewhat puzzling year for everyone when it comes to Residential real estate.  And that includes the economists who do the yearly forecasts.  While it’s normal for experts to re-forecast throughout the year, many of them are already being updated and for the better!  

We are finally seeing some relief as mortgage rates have been trending downward in the last few months.  You aren’t going to see the 2-3% range of 2020 and 2021—likely ever again.  However, we will see rates slowly come down.  Many experts are already saying that they expect rates to go into the low sixes and high fives as soon as the end of May. 

With prices being driven by supply and demand (good old Econ 101), it’s still going to be a seller’s market for a while.  

And, as mortgage rates drop, experts project that many of those hesitant homeowners could be more motivated to move.  

According to Selma Hepp, Chief Economist at CoreLogic, “With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023…Most markets will continue to reach new home price highs over the course of 2024.”

So, once again, with 2024 starting out on a better foot than last year, there’s tremendous opportunity for those who are ready to make a move.  Give me a call and let’s see if the time is right for you.

 

ERA SHIELDS MONTHLY STAT PACK 

Data through January 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety. 

 

COLORADO SPRINGS NAMED ONE OF BEST PERFORMING CITIES BY MILKEN INSTITUTE

The Gazette, 2.9.24, The Milken Institute

Colorado Springs was ranked number 15 out of 200 large metro areas nationwide in a report by the Milken Institute released several weeks ago which measures economic vitality.

The Springs had climbed to number 9 among large cities in 2022—it’s highest ranking ever in the report—but slid to number 37 last year before jumping back to number 15 this year.

The Milken Institute’s Best Performing Cities report, first published in 1999, uses 13 indicators to determine its rankings.  The indicators examine labor market conditions, high-tech impact and access to economic opportunities.  

Some highlights:

The Springs topped Denver-Aurora-Lakewood (#20), Fort Collins (#29), Boulder (#47) and Greeley (#93) in the large-city portion of the report.  

 

In the small cities section were Grand Junction (58) and Pueblo (#119).

 

This year the report showed three trends:

 

1. Cities’ performance is closely linked to job and wage growth, which is primarily driven by the expansion of high-tech industries.

 

2. While large cities tend to have a stronger presence of high-tech industries, the fastest growth in this sector was observed in top-ranked small cities.

 

3. With the resumption of travel and tourism throughout 2021, the leisure and hospitality industry played a crucial role in driving the highest improvements in this year’s rankings.

 

To view the information on Colorado Springs’ ranking, copy and paste this link into your browser:

https://public.tableau.com/shared/DX4TDCBN7?:display_count=n&:origin=viz_share_link&:embed=y

 

HARRY’S FACT OF THE DAY: 

 

 

February 7, 2024

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer 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.

 

 

TO PARAPHRASE WARREN BUFFET…

“IF YOU’RE NOT CONFUSED BY THIS MARKET, YOU’RE NOT PAYING ATTENTION”

 

Our old buddy Warren may have been speaking about the stock market, but he might as well have been referring to the Residential real estate market.

Things change so much day to day that it truly keeps even a seasoned professional broker like me on my toes.  

The good news is that interest rates are falling.  No, you’re not going to see them anywhere near the historic lows of several years ago…most likely ever again.  But they are considerably lower than the high of 8% of just last December and should settle in around 6% - 6.25% this year.

The bad news is that if you’re looking for a home, it’s not an easy task.  With so few available existing homes for sale at times it reminds me of the buying frenzy of two years ago.  Homes are selling at very close to or over listing price and we are seeing multiple offers for most.  

Last year was the worst year for existing home sales since 1995 due to elevated mortgage rates and low supply and home buying affordability in October fell to the lowest level since 1985, according to the National Association of Realtors (NAR).

Back to good news though.  We are soon entering the traditional spring buying and selling season and I predict that there will be more activity than in the most recent past.  Homeowners who wanted to sell last year but decided to wait for mortgage rates to fall might not be willing to wait any longer.

In fact, while January 2024 listings for single family/patio homes were about the same as January 2023, they were almost 70% higher than the previous month, December 2023.  That tells us that things are going to start moving a bit earlier this year, which bodes well for a busy spring Residential real estate season.

When you consider condo/townhomes as you will see below, listings were up more than 11% compared to last January and were up 72.6% over December 2023.  Obviously, the price point of these is considerably better for first time buyers so condo/townhomes are gaining in popularity.  The lack of new condo/townhome projects in Colorado Springs this past year has also added to the allure of these units.

And Residential real estate just keeps appreciating, in part due to the scarcity of existing homes for sale and also just because that’s what it traditionally will do.  

I don’t just sell homes; I believe in what I sell and have always invested my personal money in Residential real estate.  It’s proven time and again to be a great investment for me and for my clients.  Not only for their personal homes, but also for their investment properties.  

If you’ve waited for prices to fall, you might be waiting for a very long time.  And while you’re waiting, you are losing the equity that a new home could be providing.

My general philosophy is that no one can expect to buy at the lowest price point, nor sell at the highest.  It just isn’t possible and most anyone who thinks they can will likely lose in the long run.

While it may be more difficult today, it’s still possible for you to find what you need, want, and can afford in a home.

It’s important to note that with a lot of competition and so few existing homes for sale, if you are in the market you need to be prepared to know exactly what you want, need, and can afford PRIOR to beginning the search.

And, if you are wanting to sell you need to know where you want to move next because it’s likely your present home will sell faster than you might imagine.

That’s where I come in.  The current market is not for the timid or inexperienced.  It takes a lot of advanced planning and knowledge of how to navigate these waters.

My almost 52 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And, if you’ve got one minute and 35 seconds, look at my newest podcast on 2023 highlights and 2024 forecast. Simply click on the link below and you will be directed to my personal YouTube channel.

To watch, click here:

https://youtu.be/rtGM6vr_kRs

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

JANUARY 2024

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

Here are some highlights from the January 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 51.  For condo/townhomes it was 53.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.3% and for condo/townhomes it was 98.9%.  

 

In Teller County, the average days on the market for single family/patio homes was 66 and the sales/list price was 97.7%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing January 2024 to January 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 963, Down 0.2%

·       Number of Sales were 668, Down 9.6%

·       Average Sales Price was $522,379, Down 0.5%

·       Median Sales Price was $450,000, Up 1.1%

·       Total Active Listings are 1,749, Up 6.7%

·       Months Supply is 2.6, Down 0.7%

 

Condo/Townhomes:

·       New Listings were 202, Up 11.6% 

·       Number of Sales were 108, Up 20.0%

·       Average Sales Price was $371,929, Up 10.7%

·       Median Sales Price was $360,000, Up 6.7%

·       Total Active Listings are 333, Up 30.1%

·       Months Supply is 3.1, Up 1.5%

 

Now a look at more statistics…

 

JANUARY 2024 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 8.4%

 

• Median Sales Price for All Properties was Up 1.1%

 

• Active Listings on All Properties were Down 2.2%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

TIPS FOR GETTING A 6% MORTGAGE RATE

The Wall Street Journal, 2.1.24

As I just mentioned, falling mortgage rates could help home buyers in two ways this year:  house payments might become slightly more affordable, and we should finally see more available homes for sale.

While mortgages aren’t expected to drop below 6% this year, they are likely to decline gradually as the Federal Reserve begins making interest rate cuts.   Some economists are saying that cuts could begin this spring. 

And while the Feds moves don’t have a direct impact on mortgage rates, rate cuts usually lower the yield on the 10-year Treasury, which is an indicator lenders look to when setting mortgage rates.

However, home buyers don’t need to wait for the Fed to cut rates to get a 6% mortgage.  With rates at 6.63% as of last week according to Freddie Mac, that puts 6% within striking distance for some buyers, depending on credit score and other factors. 

There are also additional steps to take for further discounts on the rate.

Here is what buyers should consider doing when shopping for a mortgage this spring:

 

Boost your credit score.  Increasing your credit score even by a small amount can help reduce the cost of buying a home.  A difference of a few points can sometimes mean lower mortgage rates that save buyers thousands of dollars over time.

 

Use points.  Buyers can also use mortgage points to lower their interest rate if getting to 6% or lower is important to them.  Each point reflects 1% of the loan amount and might be paid up front to your lender.

 

Find a discount.  Many home buyers assume they have to accept the first mortgage rate offer they receive. My clients, however, are aware that there are options based on banking relationships and more as I can help direct them in their search for the best rate.  According to research done by Freddie Mac that examined purchases between 2010 and 2021, borrowers who applied with two different lenders cut their mortgage rate by an average of 0.10 percentage point.  

 

So, once again, my clients have an advantage with me.  I understand the wholesale mortgage market.  In fact, I look at rates daily and know where and how to get the best choices for my clients.  

If you have any questions, you know where to find me.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, January 2024

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

To access the report, please click here and if you have any questions, give me a call.

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD

Updated January 26, 2024 UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr. Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot”.  

I know several of you who enjoy statistics and use this information in your daily business life, and I will share it as always.  

Below I have reproduced a copy of the first page and to read the entire report, please click here.

January 23, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer 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 NEW YEAR IS STARTING MUCH LIKE 2023 ENDED IN RESIDENTIAL real estate…

I wish I could tell you I could wave a magic wand and bring back the interest rates of several years ago and the home availability of even further back than that.  But, alas, even I, with my almost 52 years in the local Residential real estate arena and my added bonus of a background in Investment Banking, can’t do that.

What I can do is try my best to help you understand today’s market and work with you to achieve your individual wants, needs and budget requirements whether it comes to buying to trade up or move to a new neighborhood or for investment purposes.  Whatever your reasons for wanting a home, I can assist.

As you might have seen, interest rates ARE lower than they have been (6.6% for a 30-year fixed rate as of last week) and I’m guessing they will settle in at around 6% for quite a while. That was the norm for many years, and I would predict it will be for some time to come.  

Borrowing rates on a 15-year fixed rate mortgage, which is becoming more popular with folks refinancing their home loans, also fell last week to 5.87% last week, according to Freddie Mac.

The biggest problem now is the lack of available homes for sale.  Some of that is due to homeowners with very low interest rates that have chosen to stay put.  Some are renovating and some are simply waiting.  

I’ve had a couple of homes listed for clients recently and almost like the frenzy of several years ago, I’ve had multiple offers, several all-cash.  With so few to choose from, it’s not an easy task to find a home.  

This is NOT just a Colorado Springs problem. High prices combined with high interest rates were a bad combination, period. Sales of previously owned homes across the country were the slowest in 30 years in 2023.  

The National Association of Realtors (NAR) said last week that existing home sales in 2023 were down 18.7% from 2022 making it the weakest year for home sales since 1995 and the biggest annual decline since 2007, the start of the housing slump of the late 2000’s.

Renters are still finding high rental rates, so with the lower interest rates we are seeing, those folks are wanting to move to ownership if possible.  That makes sense because monthly housing costs go to paying down someone’s mortgage…so why not make it your own?  

2024 should bring a brighter picture to the local Residential real estate market.  Lower interest rates will bring more buyers and sellers to the table, and we are still seeing some homebuilders offering “buydowns” that are also lowering buyers’ mortgage rates.  

Building more homes to make up for the lack of available ones for sale is not a simple thing, but housing does look like it could boost economic growth for this year.  The National Association of Home Builders (NAHB) said that their single-family home sales expectations over the next six months rose to its highest level in January since July.  And the Commerce Department reported that construction was started on a seasonally adjusted 1.09 million homes nationally in the fourth quarter of 2023—the most since the second quarter of 2022.

If new home construction is something you want to consider, that’s something I can help with as well.  I have a long-standing relationship with a number of local builders and can assist with site selection, elevation, financing and more. And did I mention that this comes at no additional cost to you?

It's important to also remember that home appreciation has continued, and experts are predicting a continued rise for years to come.  For those who were waiting for prices to fall, well…. you will be waiting a long, long time and while you’re waiting, you are losing home equity.

The ins and outs of Residential real estate can be puzzling but fortunately you have me in your corner and that’s worth a lot.  I’ve seen every cycle imaginable and have been able to help my clients find what they want and make money in the process.  

Yes, it’s going to take a bit longer in today’s market, but it’s not impossible.  As my clients always say, “Where there’s a will, there’s Harry!”  

If anyone can help you, your family, friends, or coworkers…it’s me.  I have the experience and knowledge to back that up and am here to help when needed.

So, if you’ve even been thinking about a move, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get together and see how together we can make your Residential real estate dreams come true.

 

 

My company just released a comprehensive look at Colorado Springs Residential real estate.  It’s a review of the past year as well as a look in our “crystal ball” for this year.

You can click here to read the report in its entirety.  It’s an easy read and full of useful information.

If you have any questions, just give me a holler.

 

HOME PRICES FORECAST TO KEEP CLIMBING…an Infographic

KeepingCurrentMatters, 1.12.24

Some Highlights:

 

• If you’re worried about home prices continuing to rise, you can see that the Home Price Expectation Survey (HPES) shows that experts are projecting they’ll continue to rise at least through 2028.  

 

• Based on that forecast, if you bought a $400,000 house this year, experts say it could gain over $72,000 in equity over the next five years.

 

• Many experts forecast that home prices will keep rising for years to come, and this is especially true in areas like Colorado Springs where companies keep relocating and folks keep wanting to retire here.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, December 2023

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

To access the report, please click here and if you have any questions, give me a call.

 

TRENDS IN SENIOR PURCHASING HABITS

The SRES Professional, Nov/Dec 2023

In case you don’t know, among my many professional designations I am a Senior Residential Professional (SRES) which has given me a lot of insight into the buying and selling trends of seniors.

I found this data about the trends in “senior” purchasing habits interesting and wanted to share.  

As you might expect, retirees move for a variety of reasons:  a desire to be closer to family, a more temperate climate, a new cultural experience, a different city, a community of other retirees, a smaller home, and the list goes on.  Others want a change of pace, easier access to medical care, or less traffic to manage now that they don’t have a daily commute.  

While there are many motivations behind post-workforce relocations, one compelling factor consistently tops the list of reasons why people make big moves in retirement:  the pursuit of financial benefits.

Recent data from Vanguard highlights a financial trend among seniors—approximately 80% of those aged 60 and above are homeowners, with almost half of their wealth invested in real estate.  Given that substantial investment in their property, it makes sense that many in this demographic opt to make changes to their real estate portfolio as they enter retirement.  Selling and relocating often provides them with a financial boost.

Retirees around the age of 60 tend to be the ones who relocate to less expensive housing markets.  They can reap the reward of their high home appreciation and put it to work in other ways.

This is one of the reasons we have seen “senior” folks from California and other far more expensive housing markets move to Colorado, and we are likely to consider seeing this trend for a long time to come.  It is also a reason why there are so many all-cash buyers entering our market.

And, when you add that to all the outdoor activities and more that we have to offer, I’d have to say I can’t blame them.

 

FEATURED LISTING:

Yours here?  It's going to get a lot of attention in today's market.  Give me a call.

January 5, 2024

 

HARRY’S BI-WEEKLY UPDATE

                       A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

HAPPY NEW YEAR…

As we begin 2024, I wish all of you a healthy, happy, and prosperous year.  

2023 was another year of trials and tribulations in the Residential real estate market, both nationally and here in Colorado Springs.

Higher interest rates and the lack of existing homes for sale created one of the slowest market years since 2011.  While rates are still considerably higher than they were just a couple of years ago, they are lower than several months ago and are expected to go down more as the year progresses.

The higher rates affect several things.  First off, folks who have the historically low rates of the recent past are hesitant to give up those rates even though they may want to sell and trade up or move to a new neighborhood.  

Secondly, many buyers don’t want to buy now due to the higher rates, either because they are hoping rates will go down or can’t qualify for today’s rates.

And thirdly, there just are not many existing affordable homes for sale.  There are a couple of reasons for that, including the fact I just mentioned-- folks with low interest rates are tending to stay put for now if it isn’t necessary for them to make a move.

New home construction is starting to ramp up a bit, and that will help.  We are also now starting to see home sales rising just a bit with the lowered interest rates—they moved up in November after five consecutive months of declines. 

I always start my new year by predicting how I personally see the Residential real estate market affecting not only the Colorado Springs area, but also how it will affect my clients in general.  

My predictions for 2024 include the expectation that things will continue to be slow in terms of time.  It will take a bit longer to sell, and pricing adjustments might be necessary, but home values will still rise by 3% to 5%.  Nothing is “black and white” anymore and anything is negotiable, even interest rates.

 

I also believe:

 

• Demand for existing homes will be strong due to lack of homes for sale.

 

• Interest rates on 30-year fixed-rate mortgages will drop down to the 6% to 6 ¼% range, which is great news since rates were as high as 8% in 2023.

 

• If homes are priced right, the probable number of days on the market will be around 30-45 days.

 

• Inventory will remain low, with the great majority of people “staying put” due to having bought or refinanced 1 to 2 years ago and had interest rates between 2 ¼% and 3 ½%.

 

• There will be an increase in remodeling since folks are staying in their present homes longer.

 

• Those who will sell are the ones with serious motivation—to relocate due to employment, family size, retirement, new home buying bonuses, etc.

 

• With only a little over 1100 existing single-family homes for sale at present locally, there will be a bit of a frenzy when it comes to making offers.  Time will again be of the essence and making a great “first offer” will be necessary.

 

• Renters are going to continue to be looking to buy, if possible, due to higher rental rates.

 

• Homes will continue to appreciate as they have in the past, although not as rapidly.  As I’ve said time and again, you can’t only look at the last quarter or even the last couple of years.  real estate is a long-term investment.  When you look at the value of home ownership compared to other investments, it’s still going to be extremely positive.

 

• For most, your home will likely continue to be your largest and fastest growing investment.

 

• And… with 2024 being an “election year”, no one yet knows how that could play out in the Residential real estate arena.  

 

I have always said that no one can expect to buy at the lowest price point, nor sell at the highest.  It just isn’t possible and most anyone who thinks they can will likely lose in the long run.

Yes, prices are holding steady and those who are waiting for them to drop before they buy will likely not see this happen. 

And, while it may be more difficult today, it’s still possible for you to find what you need, want, and can afford in a home.

With new companies relocating here or expanding their current business plans, we are seeing an influx of new folks moving here for jobs and they are needing places to live.  As recent as yesterday, there was an announcement of an additional 400 new jobs with high paying salaries. This is putting even more pressure on folks wanting to buy—either to sell and trade up, purchase a first home or even for investment purposes.

It’s important to note that with a lot of competition and so few existing homes for sale, if you are in the market you need to be prepared to know exactly what you want, need, and can afford PRIOR to beginning the search.

That’s where I come into the picture.  The current market is not for the timid or inexperienced.  It takes a lot of advanced planning and knowledge of how to navigate these waters.

My almost 52 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

A new year brings with it a lot of new hopes and dreams. If Residential real estate is among your hopes and dreams for 2024, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And, if you’ve got one minute and 54 seconds, take a look at my newest podcast on home appreciation and local listings. Simply click on the link below and you will be directed to my personal YouTube channel.

 

https://youtu.be/WMd127HiK4U

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

DECEMBER 2023

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

Here are some highlights from the December 2023 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 66.  For condo/townhomes it was 56.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.1% and for condo/townhomes it was 99.4%.  

 

In Teller County, the average days on the market for single family/patio homes was 56 and the sales/list price was 97.7%.

 

Since these are year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2023 to 2022.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing December 2023 to December 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 577, Down 12.4%

·       Number of Sales were 777, Down 8.7%

·       Average Sales Price was $519,961, Up 5.9%

·       Median Sales Price was $455,000, UP 3.2%

·       Total Active Listings are 1891, Down 0.9%

·       Months Supply is 2.4, Up 0.1%

 

 

Condo/Townhomes:

·       New Listings were 117, Up 0.9% 

·       Number of Sales were 114, Down 8.8%

·       Average Sales Price was $355,204, Down 3.7%

·       Median Sales Price was $329,950, Up 3.1%

·       Total Active Listings are 309, Up 26.6%

·       Months Supply is 2.7, Down 3.0%

 

The Cumulative YTD Summary: (comparing Jan-Dec 2023 to Jan-Dec 2022)

 

                        Single Family/Patio Homes:

• New Listings were 14,874, Down 22.5%
• Sales were 11,742, Down 23.0%
• Average Sales Price was $537,887, Up 0.5%
• Volume was $6,315,869,154, Down 22.7%

 

Condo/Townhomes:

• New Listings were 2,318, Down 10.7%
• Sales were 1,725, Down 25.2%
• Average Sales Price was $367,940, Down 0.1%
• Volume was $634,696,500, Down 25.2%

 

Now a look at more statistics…

 

DECEMBER 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 11.7%

 

• Median Sales Price for All Properties was Up 3.9%

 

• Active Listings on All Properties were Down 6.3%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

 

JUST 16% OF HOME LISTINGS WERE AFFORDABLE FOR THE TYPICAL HOUSEHOLD IN 2023

Redfin News 12.21.23  The New York Times, 1.4.23

However, that is likely the “bottom” for housing affordability…and things should improve from here.

According to Redfin News:

 

• 16% is the lowest share on record, down from 21% in 2022 and over 40% before the pandemic homebuying boom.

 

• White households had three times more affordable options than Black households this year.

 

• Housing affordability is expected to improve in 2024 as mortgage rates fall and more homes go up for sale.

 

To illustrate:

 

 

The number of affordable homes listed for sale also dropped to the lowest level on record:

 

 

The New York Times quoted Redfin in an article about fewer affordable homes and included this chart showing where the largest and smallest share of homes were affordable to median earners in 2023:

 

 

As you can see, Colorado Springs had the 13^th lowest share of affordable homes of the metropolitan areas surveyed.  

This is a somewhat mixed blessing for us.  What it means, of course, is that our homes are steadily increasing in value—which is great for current homeowners. 

For first-time homebuyers and those relocating it means that it’s not going to get a lot easier to afford a home here until interest rates go down more and we have additional existing homes for sale.  

The good news, according to Redfin’s senior economist Elijah de la Campa, “Mortgage rates are under 7% for the first time in months, home price growth is slowing as lower rates prompt more people to list their homes, and overall inflation continues to cool.  We’ll likely see a jump in home purchases in the new year as buyers take advantage of lower mortgage rates and more listings after the holidays.”

I am certainly in agreement with that and while I don’t see our home values decreasing, I do believe that sales will begin to pick up before too long for all the reasons listed above.

For those looking to buy, I again suggest you prepare early so that when you are ready to find the “right” home for your individual wants, needs and budget requirements, you can jump in as quickly as possible.  And I’ll be right here to help you.

 

December 27, 2023

 

 

HARRY’S NEW YEAR GREETING

        

 

 

 

 

December 8, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

   

 

MY MOST RECENT YOUTUBE VIDEO…UP FRONT AND PERSONAL…

If you’ve got one minute and 55 seconds, I wanted to give you a couple of statistics and to thank you for your business and referrals during this past year.  

https://youtu.be/ZFpV1buZ8p8

 

In fact, while you’re at it, you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

You will see below that local home sales this year are at an 8-year low.  For me personally, my sales have been great, but I know that’s because of your confidence in me and I never take that for granted.

As I’ve said time and again, there are always those who need or want to sell and those who need or want to buy.  In today’s market, it takes a Realtor with a lot of finesse, coupled with years of experience and knowledge to make that happen.  

I pride myself on looking at each individual situation and my job is to find the right fit for the client’s wants, needs and budget requirements when it comes to buyers. This is as tough a market as I’ve seen, due to the lack of available homes for sales and the current mortgage interest rates.  

And for sellers, I’ve been seeing that potential buyers are even pickier than usual, also often due to the high interest rates.

My job is to find the best fit possible and to make certain my clients don’t suffer undo stress.  Not always easy, but another slogan of mine has been “where there’s a will…there’s Harry”.  I’ll get the job done “one way or another” if it’s at all possible and in the best interest of my clients.

So once again, thank you for your support.  It means everything to me, and I will continue to work hard to earn it.

And…to repeat from my video…Happy First Day of Chanukah to all my friends and clients who celebrate.  

On that note, as always, if Residential real estate is among your current hopes and dreams for 2024 or beyond, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And now for statistics…

 

NOVEMBER 2023

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

Here are some highlights from the November 2023 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 37.  For condo/townhomes it was 28.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.0% and for condo/townhomes it was 98.8%.  

 

In Teller County, the average days on the market for single family/patio homes was 48 and the sales/list price was 132.0%.

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing November 2023 to November 2022 for All Homes in PPAR:

 

                        Single Family/Patio Homes:

• New Listings were 895, Down 6.1%
• Number of Sales were 715, Down 23.6%
• Average Sales Price was $554,784, Up 5.5%
• Median Sales Price was $466,535, Up 3.0%
• Total Active Listings are 2,397, Down 1.4%
• Months Supply is 3.4, Up 0.1

 

Condo/Townhomes:

• New Listings were 148, Up 3.5% 
• Number of Sales were 108,  Down 20.6%
• Average Sales Price was $375,948, Up 2.0%
• Median Sales Price was $335,800, Down 4.1%
• Total Active Listings are 373, Up 42.4%
• Months Supply is 3.5, Down 2.1

 

NOVEMBER 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Down 25.4%

 

• Median Sales Price for All Properties was Up 2.5%

 

• Active Listings on All Properties were Down 5.2%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

HOME PRICE INDEX RISES AS SUPPLY FALLS SHORT

The Wall Street Journal, 11.29.23

Home prices hit a record high in September because of a shortage of homes for sale, even as rising interest rates made home purchases less affordable.

The S&P CoreLogic Case-Shiller National Price Index, which measures home prices across the nation, rose 3.9% from a year earlier in September, compared with a 2.5% annual increase the prior month.  The September level was the highest since the Index began in 1987.

Home sales have slumped from a year ago because higher interest rates pushed buyers out of the market, but the decline in demand isn’t causing prices to fall, because inventory of homes on the market is unusually low.

Higher rates have prompted potential sellers to stay rather than give up their existing low mortgage interest rates.

The Case-Shiller Index, which measures repeat sales data, reports on a two-month delay and reflects a three-month moving average.  Homes usually go under contract a month or two before they close, so the September data is based on purchase decisions made earlier this year.

Mortgage rates have declined in recent weeks after hitting two-decades high in October.

 

NEW MAXIMUM LOAN LIMITS FOR 2024

The Federal Housing Finance Agency (FHFA) raised their conforming loan limit by 5.56% to a maximum amount of $766,550 in 2024.  In some geographical areas the limit is even higher. 

These limits will take effect in January 2024.

 

REALTOR.COM 2024 HOUSING FORECAST

PR Newswire, 12.2.23

Lower mortgage rates and easing prices will help spark the beginning of an affordability turnaround in 2024 according to the recently released Realtor.com 2024 Housing Forecast.

However, the supply of existing homes for sale will still be tight and renting remains a competitive option in most U.S. markets.  

This year’s forecast also includes price and sales predictions for the top 100 U.S. metro areas.

Overall in 2024, Realtor.com forecasts that buyers and sellers can expect:

 

• Average mortgage rates of 6.8% with rates edging down over the year to reach 6.5% by the end of the year.

 

• Home prices to ease slightly and drop by 1.7% after generally increasing since 2012.

 

• Rents to drop by 0.2%, making renting a more budget-friendly option than buying in most markets.

 

• A -14% year-over-year drop in inventory, as existing homeowners with low mortgage rates stay put.

 

• Home sales to hold steady, rising 0.1% year-over-year to 4.07 million.

 

Some key housing trends and wildcards:

 

• Affordability will officially turn around in 2024.  This will give a foothold for some buyers trying to break into the market.

 

• Even more sellers hang back, but they could get motivated if rates drop faster than forecasted.

 

• Sellers should be ready to compete with new construction and should look at that market in order to make sure prices and marketing of their home are competitive.

 

• Home sales will likely be driven by moves of necessity in 2024.  

 

• Geopolitics and inflation are among the wildcards in 2024.

 

Note that all surveys are based on national figures and when it comes to Residential real estate things need to be localized.  

Colorado Springs is in an enviable position in that we have so many folks who want to relocate here and we have several new employers moving into the area.  That’s not to say the above forecast isn’t meaningful to us because it is…it’s just that we often fare considerably better than the U.S. at large in terms of sales and pricing because of the desirability of our area.

Please call me if you have any questions. 

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, November 2023

As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

Below is a reproduction of the first page of statistics that I know you will find interesting and 

to access the report in its entirety, click here.  If you have any questions, please give me a holler.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD

Updated November 28, 2023, UCCS College of Business/Economic Forum

Here is the monthly report (with a new look!) from the UCCS College of Business Economic Forum.  I know several of you who enjoy statistics and use this information in your daily business life and I will share it as always.  

Below I have reproduced a copy of the first page and to read the entire report, please click here.

​

 

I just same across this…it has hung on the file cabinet in my office for the last 40 plus years and seemed appropriate for this time of year: