Real Estate Information Archive

October 29, 2012

 

HARRY’S WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

 

 

NEW HOME SALES SURGE IN SEPTEMBER WHILE PENDING HOME SALES ALSO IMPROVE

Daily real estate News/October 25, 2012

 

The Census Bureau reported last week that new home sales posted their largest gain in over two years, rising 5.7% in September over August and 27.1% higher year over year. Median prices of new homes also rose 11.2% in August, the largest one-month increase ever recorded.   And existing home sales are up 11% in September compared to the same time last year.   

 

Economists are attributing this gain as a sign that the fundamentals of the economy are improving as unemployment rates improve and consumers become more confident.

 

When this is combined with reported increased housing starts, building permits and prices in recent months, it appears that there is a steady housing recovery underway.  According to Barry Rutenberg, chairman of the National Association of Home Builders, “Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase, assuming they can qualify for a good mortgage under today’s exceedingly stringent guidelines.”

 

Home prices are inching up, foreclosure sales are falling and record mortgage rates are creating a greater urgency for those who are looking to buy.  However, while the housing recovery is steadily increasing, there are still challenges—a number of underwater homeowners still waiting for prices to climb so they can have equity in their current homes before they move on and of course, access to credit remains tight.

 

No surprises here.  We’ve been keeping you up to date on a weekly basis concerning the Colorado Springs market and want to remind you that if you are looking….the time is NOW.  There are going to be fewer choices in the coming months and prices are sure to be higher.  If you are looking to buy, sell, trade up, or simply looking for investment property, give us at call at 598-3200 and we will get right on it for you. 

 

 

INTEREST RATES LOOK TO STAY LOW FOR THE FORESEEABLE FUTURE

 

During the recent Conference and Expo of the Mortgage Banker’s Association in Chicago, economists from that group predicted a similar forecast for housing and interest rates.

 

They concur that unemployment will be down, with home purchases loan originations going up and mortgage rates remaining low for now.  

 

The big question in everyone’s minds is exactly how long rates will stay this low and how the increase in home prices will affect buyers.  Again, let me remind you that there is no better time than NOW to make your move if that’s something you’ve been thinking about.

 

According to HousingWire, the U.S. added 4.8 million renters in the past six years due to the financial meltdown.  What does this mean?  We believe it’s a great opportunity in several areas.  With mortgage rates at an all time low, hopefully some of these renters will become owners.  For those that need to continue to rent for whatever the reason, there is a need for rental property and those of you who have waited might consider this a good time to start looking.  We can help both of these groups and look forward to working with you.  Just give us a call at 598.3200.

 

 

OPTIMISTIC HOUSING OUTLOOK—RISING HOME PRICES HELP ROAD TO RECOVERY

RISMedia/October 22, 2012

 

According to NAHB Chief Economist David Crowe, “we’re seeing a more robust housing sector than many other parts of the economy.  One of the reasons is we have finally begun to see on a national scale that house prices are picking up again.”

 

He stated some of the factors that are carrying the housing momentum forward.  Those include:

 

• Pent-up household formations
• Rising consumer confidence
• Increasing builder confidence in all three legs of the economy:  remodeling, multifamily and single-family construction
• Growing rental demand

 

Colorado Springs is one of the metro areas included in the forward momentum and you don’t want to miss out on the opportunities out here.  This won’t remain stagnant and all forward movement will inevitably include higher prices and increased mortgage rates. 

 

 

NOTE TO POTENTIAL SELLERS:  FIVE REASONS TO SELL NOW

Adapted from Keeping Current Matters/Nov 2012

 

1.  Only Serious Buyers Are Out

At this time of year, only those serious about buying home will be looking.  You won’t be bothered and inconvenienced by mere “lookers”.  The lookers are out holiday shopping.

 

2.  There Is Far Less Competition

The number of houses on the market shrinks dramatically this time of year.  With fewer houses on the market in general, this will make your home more likely to sell. Waiting until Spring could be a mistake for those who seriously want to sell.

 

3.  The Process Will Be Quicker

Both of this year’s biggest challenges—length of time it takes from contract to closing and lenders being inundated with purchase and refinancing loan requests—will not be in play here.  Both will be slow in the winter, thus cutting timelines and frustration that these delays cause both buyers and sellers.

 

4.  There Will Never Be a Better Time to Move-Up

If you’re looking to move up to a larger, more expensive home, you should consider doing it NOW.  Prices are projected to appreciate more than 15% from the present to 2016.  If you wait, it will cost more in raw dollars--both in down payment and mortgage payment.

 

5.  It’s Time to Move On With Your Life

If you have already decided to sell, there is no reason to wait.  The sooner you make the decision to sell, you can move on to whatever it is you want….a larger or smaller home, more time with family, retirement, or whatever it is you truly want to do with your life.  That’s what’s really important in the long run.

 

 

IF YOU ENJOY READING OUR WEEKLY eNEWSLETTER….

 

Please consider forwarding it to any of your family, friends or co-workers who may benefit from it.  They can then go to our Website and sign up to receive it themselves.  Better still, send us their e-mail addresses and we will add them to our weekly mailing list.  They will thank you for it and so will we.

 

 

LATEST LOCAL STATISTICS FROM PPAR

 

Click here to see the most recent Sales and Listing information for the Pikes Peak area. 

 

These statistics are published by the Pikes Peak Association of Realtors and can be helpful in evaluating and comparing current listings in various neighborhoods in our area.  If you have any questions about this data (or any real estate questions), please give us a call at 598-3200 or 800-677-6683 (MOVE).

 

And please remember, I would be honored to serve as your Broker for all your residential real estate needs.  It is my goal to help you make the most prudent and accurate Real Estate decisions.

 

And if you know of anyone who wishes to buy or sell local real estate, or who is planning a move to the Pikes Peak region, remember—I’ve got more then 40 years of experience in providing relocation and Real Estate services to clients throughout the world.  I am uniquely qualified to assist them in making the best decision for their individual wants and needs and always take that into consideration when negotiating on their behalf. 

 

 

AND LAST, BUT NOT LEAST….

 

We want to welcome Stuart M.Vestal to the Salzman real estate Services team as our newest Broker/Associate.  Stuart comes to us with vast experience in the home remodeling business in the Pikes Peak area for the last 12 years. 

 

He previously lived in Florida where he assisted with staging for “Better Homes and Gardens” magazine as well as owned a home remodeling business there.

 

And also, we welcome a new assistant who is here to help you with any questions or needs.  Sue Delano has replaced Anne Ganley, who recently retired.  We wish Anne the very best and want to thank her for her 12 years of service to us and many of you.

 

Please join us in welcoming Stuart and Sue into the fold, and when you’re in the neighborhood, stop by and meet them and say his to us all.

FEATURED LISTING

 

5062 Farris Creek CT Price: $347,900 Beds: 5 Baths: 3 Sq Ft: 3338 Beautiful Ranch Home with Finished Basement* Main Level Master Bedroom Suite* 5BD, 3BA, Media/Office, 2 Car Garage* Located on quiet cul-de-sac with numerous upgrades: hardwood flooring, ceiling fans, granite counter tops in kitchen* ML: LR/ Great R... View this property >>

 

 

And Here's Your Morning Coffee!

 

 

 

 

 

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs

email: harry@harrysalzman.com

 

 

Visit Website October 22, 2012   HARRY’S WEEKLY UPDATE A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET     JUST BACK FROM VACATION….   After taking a week off from work for the first time, I was actually going to ask you readers what’s been going on during my absence but when I got home last night I was inundated with all kinds of financial news that I thought I ought to share with you.  So briefly, here’s what I’ve got….     THIRD QUARTER INDICATORS LOOKING STRONG   Things are looking up in the local real estate market.  In a nutshell, sold listings are up 7.9%, active listings are down 6.9% and the one year change in Median Sales Price is up 8.7%.   And on top of that, Freddie Mac’s average fixed rate mortgage is at an all time low of 3.4%.  Need I say more?  If you’re looking to buy for yourself or for investment purposes, the time is NOW.  With fewer homes on the market, more people are looking rent and rental prices are inching up accordingly.  On the other side, if you are looking for a home to live in, mortgage rates aren’t going to stay this low forever, and as you can see, median home prices are on the rise.  It’s never been a better time for first time homebuyers or those that are looking to upgrade to a larger residence or different neighborhood.     HERE ARE SOME 3rd QTR. YEAR OVER YEAR STATISTICS FOR THE PIKES PEAK AREA*     Black Forest:        Median Sales Price Up 9.0%         Avg. Sales Price Up 5.7%   Briargate:              Median Sales Price Up 5.2%         Avg. Sales Price Up 2.3%   Central:                 Median Sales Price Up 18.4%       Avg. Sales Price Up 17.3%   Divide:                   Median Sales Price Up 25.7%       Avg. Sales Price Up 32.1%   East:                      Median Sales Price Up 3.3%         Avg. Sales Price Up 5.2%   Falcon North:       Median Sales Price Up 6.9%         Avg. Sales Price Up 5.3%   Florissant:            Median Sales Price Up 3.3%         Avg. Sales Price Up 15.4%   Fountain Valley:   Median Sales Price Up 15.2%      Avg. Sales Price Up 11.2%   Manitou Springs: Median Sales Price Up 31.7%       Avg. Sales Price Up 27.3%   Northeast:            Median Sales Price Up 4.4%         Avg. Sales Price Up 8.4%   Northgate:            Median Sales Price Down 4.8%    Avg. Sales Price Up 1.5%   Northwest:           Median Sales Price Same             Avg. Sales Price Down 3.4%   Old Colo.City:      Median Sales Price Up 25.4%      Avg. Sales Price Up 23.2%   Powers:                Median Sales Price Up 6.3%         Avg. Sales Price Up 1.5%   Southeast:           Median Sales Price Down 6.8%     Avg. Sales Price Down 2.2% Southwest:         Median Sales Price Up 17.7%         Avg. Sales Price Down 0.6%   Tri-Lakes:           Median Sales Price Up 5.2%           Avg. Sales Price Up 7.2%   West:                  Median Sales Price Down 1.7%       Avg. Sales Price Down 3.4%   Woodland Pk:    Median Sales Price Up 12.7%         Avg. Sales Price Up 16.9%   *Statistics from the Pikes Peak MLS, provided by the Colorado Assoc. of REALTORS.       DESPITE  SLIGHT MONTHLY DECLINE IN U.S. SALES, PRICES CONTINUE UPWARD   According to Lawrence Yun, chief economist for the National Association of Realtors, “Despite occasional month-to-month setbacks, we’re experiencing a genuine recovery.  More people are attempting to buy homes than are able to qualify for mortgages and recent price increases are not deterring buyer interest.  Rather, inventory shortages are limiting sales, notably in parts of the West.”    That’s us he’s talking about folks.  So as I’ve been telling you for some time now….if you’re in the market…give me a call and let’s get serious before the inventory gets too low and the prices and mortgage rates start rising again.     HOME SALES CONTINUE TO RISE FOR 15TH STRAIGHT MONTH   Saturday’s Wall Street Journal emphasized the current trend, stating that “rising rents and improving consumer confidence has created urgency.  Again, this is due to rising prices and median sales prices and consumer demand due to mortgage rates falling to their lowest levels on record.      AS ALWAYS, I’M HERE TO HELP….   Please call me at 719.598.3200 for help with any and all of your real estate needs. Whether you’re looking to buy or sell, or simply looking for investment property, let me put my 40 plus years in the local Real Estate arena work for you.     Harry A. Salzman. CRS, CRP, CNE e-Pro Internet Certified Broker/Owner email: Harry@HarrySalzman.com Serving: Colorado Springs, Monument. Air Force Academy, Fountain, Security, Woodland Park, Black Forest, Manitou Springs

Harry Salzman, Salzman real estate Services, Ltd
538 Garden of the Gods Road, Colorado Springs CO 80907
719-598-3200 or Toll Free: 800-677-MOVE(6683)


Visit http://www.SalzmanRealEstateServices.com

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Weekly Update	Featured Listing For Sale: $347,900 More Information
Existing-Home Sales Climb Higher Affordable housing conditions have lead to another increase in existing-home sales, according to a recent report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops, are on pace to reach 4.82 million units sold for 2012, an increase of 9.3 percent Continue Reading... Find The Right Coverage When purchasing a home, you will need to acquire homeowners insurance. In fact, all lenders will require a policy be in force prior to funding the loan. Make sure you have enough coverage, should anything happen. Policies refer to "replacement costs" that may not cover everything. You should ask your insurance agent a lot of "what if" questions. Continue Reading... Seller Opportunities Selling your home in today's market requires strategy and execution. Here are three tips to help sellers reduce their time on market: Make it shine. Buyers are attracted to attractive homes. Make your home stand out by mowing the lawn, raking the leaves, washing windows, and cleaning the carpets. These are small things that will make a big Continue Reading...
Harry A Salzman, Salzman real estate Services, Ltd 538 Garden of the Gods Road, Colorado Springs CO 80907 719-598-3200 or Toll Free: 800-677-MOVE(6683) Visit http://www.salzmanrealestateservices.com Change your email preferences here.

 

October 8, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

LATEST STATISTICS FROM PPAR SHOW A VERY STRONG LOCAL MARKET

This month, the highlights from the PPAR statistics show that the total local sales of single-family homes in September, 2012 was 773, compared with 672 in 2011. That’s a 15% improvement in sales over last year.

In September, 2012, the average sale price for local, single-family homes was $223,497, compared to $218,526 in September of 2011. That’s a jump of 2.3%.

In September. 2012, the median sale price for local, single-family homes was $194,000, compared to 187,250 in September of 2011. That’s a jump of 3.6%

13 of the past 15 months have shown positive growth in both sales and prices.

Prospective Buyers should also note that our inventory of single-family homes and patio homes-for-sale (Listings) has shrunk from 3,722 to 4,196 over the past year. That’s a reduction of 11.3%.

As always, as supply shrinks, prices go up. So, the bottom line to all of these numbers is that NOW IS THE TIME TO BUY !!

Call us at 598-3200, or, 800 677-6683 (MOVE), to discuss how this upward trend in prices and downward trend in inventory can be a great opportunity for you to enhance your future economic status.

Click here to see the most recent Sales and Listing statistics for the Pikes Peak area. These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call.

 

WANT TO BE LIKE WARREN BUFFET? HERE’S YOUR CHANCE !

The Wall Street Journal - October 3, 2012

Warren Buffet’s Blackstone Group has become the biggest U.S. investor in single-family rental homes by spending more than $1 billion since the start of 2012 to acquire more than 6,500 foreclosed houses in eight metropolitan areas. The firm also is also finalizing a loan for at least $300 million from Deutsche Bank to support this business.

Blackstone paid an average of about $140,000 for each home and is planning to fix up the homes, rent them and eventually sell them after the market rebounds.

Blackstone has said it expects to achieve initial yields of 6% to 7% on the rental income.

What does Warren Buffett see that no one else does? He is betting that the rental-housing market represents a great investment opportunity.

The Federal Reserve has expressed support for this strategy as a way to clear the backlog of foreclosures that has weighed down the market.

Other private-equity firms and other investors have raised $6 billion to $8 billion to invest in this sector, as they try to take advantage of today’s low home prices. These investors could buy 40,000 to 80,000 properties, according to a recent report from Keefe Bruyette & Woods.

If you would like to cash in on this investment opportunity in our local market, call us at 598-3200, or, 800 677-6683 (MOVE).

You could be the next Warren Buffet !!

 

MAYOR BACH PROPOSES A FORWARD LOOKING CITY BUDGET

The Gazette Update - October 4, 2012

Colorado Springs elected a tough mayor who isn’t known for diplomatic sensitivity. Instead, he is known for crafting a city government that can perform its fundamental duties with the money taxpayers have afforded it.

Mayor Steve Bach’s proposed 2013 budget of $232 million includes:

• 25 additional cops, which will bring the department to its authorized strength of 635 officers by August of 2013.
• an additional fire station, which would be paid for in part by a $2 million federal grant. The proposed budget allocates money to hire 15 new firefighters to staff the additional station.
• Restoration of evening bus service.
• establishing neighborhood health clinics, which will help residents more easily monitor blood pressure and other health indicators.
• Authorizing funds for an exhibit to commemorate the anniversary of the Waldo Canyon fire.
• conversion of parking meters to accept credit cards
• increasing money for street maintenance.
• reducing from six weeks to four the review process for business, developer and homeowner construction plans. creating 6,000 jobs each year by making our city the “most business-friendly city of our size in the nation.”

In less than two years, thanks to Mayor Bach, city government has become an agent of public service that looks to do more with less.

Congratulations, Mr. Mayor.

 

LOCAL SINGLE-FAMILY HOME PERMITS ON THE RISE

The Gazette – October 2, 2012

It’s been a good year for the homebuilding industry in the Pikes Peak region – and the year isn’t over yet.

Single-family building permits, which measure the pace of local home construction, totaled 1,671 in the Pikes Peak area during the first three quarters of 2012, which already surpasses permits during each of the previous four years, according to a report from the Pikes Peak Regional Building Department.

For September, single-family permits totaled 194, a 56.5 increase over the same month last year. Permits have increased in 12 of the past 13 months. This augurs well for local sales tax revenues.

Meanwhile, local foreclosures slowed in September. New foreclosure filings totaled 258 in September, down nearly 24% from August and down 14% from September 2011.

With prices and mortgage rates still low, and all the indicators pointing to a coming rise in prices, it’s time for you to consider buying that new home you have been wanting.

Give us a call at 598-3200, or, 800 677-6683 (MOVE) to discuss why now is the time to buy !!

 

IF YOU PLAN TO SELL YOUR HOME, HERE ARE 4 BIG TURN-OFFS OF HOME BUYERS

REALTOR® Magazine Oct. 2012

Certain dated design features in a home can really make some home buyers cringe. Could your listing have one of them?

A recent article at AOL real estate spotlights a few pet peeves of home buyers when touring homes today. Among the items making their list:

1. Popcorn ceilings: The speckled ceilings can attract dirt and be impossible to paint. Plus, if the home was built prior to 1980, the ceiling may contain asbestos and need to be tested by an inspector. Fix it: Unfortunately, there’s no quick fix for removing popcorn ceilings; it can get messy. It’ll have to be scraped off and the ceiling then will need to be repaired. Plus, you’ll want to have it tested for asbestos before scraping. Home owners will likely want to consider hiring a professional to do this.

2. Carpeting everywhere: Many home buyers today have a fondness for hardwoods over wall-to-wall carpeting. Carpeting can show spots and dirt, which can serve as a quick turn-off to potential buyers who prefer the more polished look of hardwoods. Fix it: Have the carpet professionally cleaned if your seller can’t afford to swap out the carpet for hardwoods. Make sure the carpet is spot-free and looking new. If sellers are willing to spend some money, they might consider installing hardwoods on just the first floor or in just the dining room (pre-finished laminate can cost less). This allows the home to be marketed as having hardwoods, which could possibly draw in more potential buyers who won’t consider a home without.

3. Brass fixtures: Shiny brass fixtures are viewed as out-of-date by most people’s standards nowadays. More on trend is satin-nickel or oil-rubbed bronze finishes. Fix it: Big-box retailers offer plenty of affordable lighting options nowadays to make this an easier, more budget friendly do-it-yourself project with big impact.

4. Vanity lighting strips: The Hollywood-style strip with a line of bulbs of rounded lights hanging over your bathroom mirrors can also quickly date a home. Fix it: Find a lighting fixture that has shades for each bulb in a finish that matches your faucet. It’ll make the bathroom look more contemporary

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

 

JOKE OF THE WEEK

A woman whose husband often came home drunk decided to cure him of the habit.

One Halloween night, she put on a devil suit and hid behind a tree to intercept him on the way home.
When her husband came by, she jumped out and stood before him with her red horns, long tail, and pitchfork.

"Who are you?" he asked.

"I'm the Devil!" she responded.

"Well, come on home with me," he said, "I married your sister!"

October 1, 2012

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

 

THE SOUTHERN COLORADO ECONOMIC FORUM WAS A GREAT SUCCESS

The 16^th annual SCEF at the Antlers Hilton Hotel on Sept. 28, 2012 was a “SOLD OUT” success. Over 600 people, representing local businesses and organizations, heard a variety of presentations by experts in the field of market predictions. The overall mood at the forum was very positive about our local economic picture over the next few years, but was tempered by some concerns about the effects of cut-backs in our local military presence and possible looming tax increases, either of which could weaken our recovery. We think the keynote speaker summarized the big picture very well, and we are reprinting some of his comments, below.

 

SPEAKER AT FORUM SEES ECONOMIC RECOVERY PICKING UP SPEED

The Gazette, September 28, 2012 – Wayne Heilman

At the Southern Colorado Economic Forum which took place on Friday, Sept. 28, 2012, the keynote speaker painted a very optimistic economic picture of the coming year. The following comments are excerpted from Wayne Heilman’s Gazette article which reviewed Mr. Paulsen’s presentation.

The U.S. economy is already gearing up to a faster growth rate as evidenced by a wide variety of economic indictors ranging from accelerating housing construction to increased bank lending, economist and top Wells Capital Management executive, Jim Paulsen, said Friday in Colorado Springs.

“The growth of the national economy is not enough to please everyone, but this recovery is very similar to the recoveries of the last 25 years,” said Jim Paulsen, chief investment strategist for Wells Capital Management, a unit of Wells Fargo & Co., and keynote speaker at the Southern Colorado Economic Forum. Economic growth, he said, starts to “gear up when confidence finally starts to grow. That is happening now. If you want consumer confidence to grow, get the unemployment rate down — and it is down a full percentage point in the past year.”

Paulsen pointed to declining unemployment, rising consumer confidence, higher household net worth and lower debt, increasing housing construction and prices, more bank lending, gains in state tax collections and exports and reduced financial market volatility as indicators that the U.S. economic recovery is gaining strength. He predicted that U.S. economic growth would accelerate next year to 3 percent from the current 1.3 percent and that the nation’s unemployment rate would fall from 8.1 percent now to near 7 percent by the end of next year.

“I’m not saying that growth will explode, but it will feel a lot better — it will feel like a recovery,” Paulsen told more than 600 business and civic leaders attending the half-day event at the Antlers Hilton hotel.

“If the job market is so dead, than why are consumer confidence, housing construction and auto sales all growing right now? While unemployment is still way too high, the combined message of all these indicators are that the economy is getting better. I see a lot of evidence that economic growth is starting to gear up.”

Paulsen, who has now been the forum’s keynote speaker for three consecutive years, predicted at last year’s forum that the recovery from the 2007-08 recession would gain strength in the next year and “gear up” late this year. He noted both Friday and last year that recoveries since 1985 have taken longer to gain strength, but tend to last longer as a result of the slowing growth of the U.S. labor force. That slowdown is a product of baby boomers producing fewer children to fuel labor force growth, which is a key ingredient for economic growth.

The biggest threat to the recovery is the Chinese economy falling into a recession, which would end the U.S. recovery and throw the nation’s economy back into a recession, Paulsen said. His overall message, though, was more optimistic than the forum’s forecast for the Colorado Springs economy; the forum sees the local economy remaining flat at best, and it could be pushed into a recession if Congress and the president don’t avoid both the so-called “fiscal cliff” i.e.— automatic cuts to the Department of Defense budget scheduled to take effect in January and the expiration of a variety of tax cuts at year’s end.

These predictions should encourage our local Buyers and Sellers of homes, homebuilders, retailers, contractors, appliance stores and clothing stores which are now beginning to experience a surge in purchasing that has resulted from the Waldo Canyon fire.

 

PACE OF LOCAL HOMEBUILDING EXPECTED TO KEEP ACCELERATING

The Gazette – September 26, 2012- Rich Laden

The pace of homebuilding has rebounded nicely this year in the Colorado Springs area and should continue to gain steam in 2013 — and would grow even faster if the local economy added significant numbers of jobs, according to an analysis by a national housing research firm.

Pent-up demand on the part of homebuyers, combined with current homeowners who have seen their property values improve and are now seeking to move up, have propelled homebuilding, John Covert, Colorado/New Mexico director of Houston-based Metrostudy told about 25 members of the Housing and Building Association of Colorado Springs on Wednesday.

“Rates are still at historic lows, the existing home market is in better shape than it’s been in the last several years. Listings are way down, pricing stability has occurred and actually some pricing power has returned to the re-sale market,” Covert said. “That’s letting people get out of those homes to go buy a new home.”

If the local economy were to add more jobs, especially positions in which employees come to the Springs from elsewhere, the homebuilding industry could see even stronger demand. However, it does take a while for those newcomers to actually buy a house, Covert said.

In the shorter term, pent-up demand will continue to drive the market in the next year or so and homebuilding activity should increase in 2013 over 2012, he said.

Single-family building permits through August of this year totaled 1,476, already topping the 1,399 for all of 2011, according to the latest Pikes Peak Regional Building Department figures.

The pace of home construction has improved so much that the Colorado Springs market is beginning to run low on new home sites, Covert said. Local builders now have a 33-month supply of lots upon which to build, about one-third the inventory they had four to five years ago, he said. The city of Fountain and the Briargate development on the Springs’ north side, popular housing areas, each have only an 18-month supply of lots.

The good news for homebuilders means some of them have added workers and are reinvesting in their companies, Covert said.

For homebuyers, however, the improvement in homebuilding means higher prices ahead. Builders’ labor and material costs are rising, Covert said, and the scarcity of lots means land prices will be going up — increases that would be passed on to buyers.

Our next Enewsletter on October 8, will have all local housing statistics as of September 30, 2012 and the first three quarters of this year.

 

housing market DISPLAYS NEW VIGOR AS PRICES RISE

The Wall Street Journal – September 27, 2012

Home prices notched their strongest year-to-date gains since 2005, climbing 5.9% through July and signaling the housing market's steady trudge toward recovery.

"Housing is no longer a negative. It is turning positive and we see the data reflecting that," said Ivy Zelman, chief executive at research firm Zelman & Associates.

Home prices typically are strongest in the summer, the busiest season for home sales, before declining later in the year. But the 5.9% rise far surpasses the 0.4% gain seen through the same period last year and the 2% gain in 2010.

Construction of single-family housing in August reached its highest level in more than two years, the Commerce Department said last week.

But rising demand, especially at the low end, is putting upward pressure on prices as traditional buyers—as opposed to investors—feel more confident about jumping into the market. In some cities, diminished supply has given rise to bidding wars—and headaches for would-be buyers.

The bottom line: Better Buy Now !! It will cost you more tomorrow !!

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss what this could mean to your financial security.

 

HOW HIGH WILL HOUSING PRICES BE IN 2016?

Daily real estate News | Monday, September 24, 2012

A quarterly survey of more than 100 economists shows growing optimism for the real estate market when it comes to housing prices. The majority of the economists surveyed say they expect home prices to steadily increase for the next four years.

The economists surveyed expect home prices to rise 2.3 percent this year over the fourth-quarter of 2011, according to the survey conducted on behalf of Zillow. In 2013, they expect prices to rise 4.7 percent; 8 percent in 2014; 11.4 percent in 2015; and 15.2 percent in 2016.

"This is further evidence that we're seeing a true recovery in the housing market," says Stan Humphries, Zillow's chief economist. "Not since mid-2010—in the midst of the homebuyer tax credits—have we seen this group so bullish on housing. It's refreshing to see this optimism at a time when the market seems to be making an organic recovery, in the absence of an artificial stimulant like the tax credits."

Not to be repetitious, but the bottom line is: Better Buy Now !! It will cost you more tomorrow !!

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss your new home

 

LATEST LOCAL STATISTICS FROM PPAR

Click here to see the most recent Sales and Listing information for the Pikes Peak area.

These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, or, 800 677-6683 (MOVE).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

 

JOKE OF THE WEEK

Football Rules from Around the World

SOCIALIST FOOTBALL: After you score, the state takes half your points and redistributes them to the opposing team.

COMMUNIST FOOTBALL: After you score, the state takes away all your points and gives you back what the Central Bureau of Points designates as appropriate (according to your needs).

FASCIST FOOTBALL: After you score, the state takes away all your points and sells them back to you.

NORTH KOREAN FOOTBALL: After you score, the state takes away all your points and shoots your team.

BUREAUCRATIC FOOTBALL: After you score, a tax of 80% will be imposed on the points. 10% of your points will be given to the scoring disadvantaged, 10% of the points will be given to the opposing team as an incentive "not to score," while 60% of the points will be used by the state for administration.

NFL FOOTBALL: Nobody but a replacement referee can take away your points.