HARRY'S BI-WEEKLY UPDATE 10.26.15
October 26, 2015
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.
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SOMETHING TO SHARE FROM MY BOSTON relocation CONFERENCE
When the last issue was being published I had just returned from the relocation Directors Council (RDC) and Worldwide ERC Symposium in Boston. I would like to share an issue that we relocation professionals talk about each and every year. It’s importance to you as a buyer or seller cannot be overemphasized.
As many of you know, I am a relocation specialist and “relocation” can mean anything from relocating around the world to simply around the block. There are always many things to consider when making a move, and more especially when it involves moving to a new city or country. At this conference I have the pleasure of meeting with various people who are involved in residential relocation on a daily basis—the human resources people of national and international companies, relocation real estate professionals, lenders, moving companies, temporary housing specialists and many others who are crucial in helping folks make a move. This helps me know who, like me, is at the top of their field so that I can recommend them to my clients.
It was noted at one of my meetings that the most recent Transfer Volume and Cost Survey of Worldwide ERC reported that companies relocating employees saw a four percent increase in transfer volume among current employees and a seven percent increase among new hires in 2014 over 2013. The survey also indicated that about 80 percent of current employee relocations in the U.S. are interstate moves vs. intrastate moves and that since 2012 there has been an employee reluctance to relocate.
Some of the reasons for that are the short time frame given to accept the offer and short time to relocate. That’s where relocation experts provide the greatest help. We can provide information that can help an employee make a relocation decision in a short time period based on answers to questions concerning the new city, neighborhood demographics, housing possibilities and more.
If someone is moving to Colorado Springs from elsewhere and needs to sell their current home, I have a built-in network of relocation real estate brokers who I can recommend, resting assured they will do a good job for my clients on that end. This also works in reverse, as oftentimes I have local folks who are being transferred and don’t know where to start in looking for a new home in a new city. I can provide assistance simply by giving referrals to relocation specialists in other cities who I know will get the job done right.
relocation is About So Much More than real estate
It’s important for anyone planning a move to work with a Realtor such as I who can understand the “little things” that are not so little in the eyes of the ones making the move. It’s important for those of us involved in relocation to understand not only the culture of the company if the move is for business, but also to understand the family dynamics involved. Moving to a new neighborhood can be traumatic for ALL family members, and especially children who may be transferring to a new school and want kids the same age living in the neighborhood.
Lifestyle preferences, such as proximity to shopping, restaurants, and sports venues are other considerations that can be important to those making a move.
Understanding the demographics of all local neighborhoods is crucial to making certain that the needs and desires of the entire family are met. This may sound like a given, but oftentimes the adult family members hear from their well meaning co-workers-to-be and friends that “such and such” a neighborhood is fabulous—and it may well be. But if it is comprised of mostly “empty nesters” or “young singles”, it probably is not the best place for the young members of the family to find friends and schoolmates their age.
Why do I mention this? For the same reason that we keep discussing this at our meetings. It’s a reminder that no matter where you might be moving, the importance of working with a knowledgeable real estate Professional who understands the ins and outs of relocating people shouldn’t be overlooked —be it for a single person making a move to another city or a family moving locally to a new neighborhood. Each and every move is based on individual preferences, wants and needs and someone like myself can make certain that it’s as stress-free as possible for all those involved.
After discussions with my clients concerning their particular lifestyle and professional needs I can then begin to piece together what will be a master plan for that situation and begin the search for the best neighborhood and home for that criteria. After all, with more than 43 years in the real estate arena, I’ve proven time and again that my particular brand of customer service is essential in easing the road to closing.
If you, or any co-worker or family member are thinking of making a move—locally or out of the area—please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let me do what I do best—work to help relocate you or them to the “best fit” for all concerned.
LOCAL MONTHLY INDICATORS FOR SEPTEMBER PROVIDE GOOD NEWS ONCE AGAIN
Piles Peak REALTORS Services Corp. Current as of October 12, 2015
It’s always nice to publish good news and lately the Residential real estate news for El Paso and Teller Counties has been excellent. As promised, I will publish these Monthly Indicators when they are available to me.
The September 2015 “Activity Snapshot” indicates the one-year change:
- Sold listings for All Properties were up 16.9%
- Median Sales Price for All Properties was up 5.5%
- Active Listings in All Properties was down 30.0%
You will see all the activity presented in easy to read charts by clicking here. This is such good news both for present homeowners and those either looking to sell and trade up or buy for the first time.
Interest rates are remaining at historic lows for the present time and the increase in home prices is allowing those who were “underwater” with their mortgages to finally have the equity to pursue avenues that were unavailable to them before.
And, with the rental market exploding, those who have considered purchasing real estate for investment purposes are finding that now is a great time to proceed.
If you have any questions about this report or need help with any real estate concerns, please give me a call.
FANNIE MAE TO EASE THE LOAN PROCESS FOR POTENTIAL BORROWERS
Remember when you had to provide a pay stub to your mortgage lender along with your application? Well, those days will soon be gone once the changes announced by Fannie Mae catch on.
Lenders will be allowed to use employment and income information from a database maintained by credit bureau Equifax to verify borrowers’ ability to handle a loan, rather than relying on the traditional documentation process of collection physical copies of paystubs and tax data. This should make the mortgage process easier for both borrowers and lenders.
Fannie has also made other changes that could broaden mortgage access for some borrowers. The mortgage giant will ease the lender process for granting loans to borrowers who don’t have a credit score which is a key issue for certain minority groups that are less likely to have traditional credit histories. Fannie will also start requiring lenders to begin collecting “trended” credit data from Equifax and TransUnion, which includes longer-term borrower credit histories, starting in mid-2016.
Fannie Mae and Freddie Mac don’t make loans—they buy them from lenders and wrap them into securities and provide guarantees to make lenders whole if the loans default. Because of this, since the financial crisis mortgage lenders have relied on government-backed loans, making Fannie and Freddie’s requirements especially important in deciding what borrowers are able to get a mortgage. This has caused some borrowers to have a harder time obtaining a loan.
New programs rolled out in August let lenders count income from non-borrowers within a household, such as extended family members, toward qualifying for a loan. Also, for more than a year, industry groups have pushed for Fannie and Freddie to allow the lenders to use alternative credit-score models that take into account utility or rent payments. Fannie Mae officials recently announced that in 2016 they would begin to allow lenders to evaluate borrowers without a score provided by an automated process. Borrowers that have a traditional scored calculated by Fair Isaac will still need to meet the 620 minimum on a scale of 300 to 850.
Fannie isn’t yet saying what the trended credit data will be used for now; however, it will let Fannie see if borrowers, for example, are paying off their credit card bill every month instead making a minimum payment. In the future, a borrower making the full payment could be treated as a safer bet and could provide better rates for those folks.
Look for more information coming in the next few months, but everything I’ve read seems to indicate that Fannie Mae is looking at various options to help those with no or poor credit, or without personal down payment ability to still be able to qualify for a home mortgage. This is great news for first time buyers or those who lost homes due to the housing or other crisis. I’ll keep you posted.
5 TOP MOTIVATORS FOR BUYING NOW
REALTOR Mag, 10.1.15
A survey taken in June and July through the BDX Home Shopper Insights Panel identified the top reasons that trigger buyers to start thinking about a new home:
- I’m tired of my house. This was the number one reason. Homeowners have been in their homes longer than in the past, some due to “underwater” mortgages. With a four-year price appreciation and confidence in the market, they are ready to move.
- Interest rate are attractive. With interest rates continuing at historic lows, many who were stuck with higher rate mortgages due to “underwater” situations can now move and quite possibly spend less on a monthly payment, or can certainly buy more for the same money.
- Home prices are favorable. While the price motivation is decreasing in the last few years, it still remains one of the top triggers. Home prices today, while rising, are still about 20 percent lower than the peak at the height of the housing bubble.
- “I’ve got more money to spend.” Twenty-four percent of active homebuyers say an increase in income is their primary trigger for buying a home now. Several years post-recession, more households are financially better off. Of the 25-to-34-year-olds surveyed, having more money was cited as their No.1 motivator in buying.
- A change in family circumstance. With births rising last year and expecting to rise again this year, families are expanding and 18 percent of those surveyed said that a change in family circumstance or composition was their main reason for buying.
So there you have it. No matter what YOUR motivation might be for buying a new home, I’m here to help you in any way I can. With so many new regulations and qualifications, there are plenty of ways to help all who are looking to find a home. Give me a call and let’s see if we can make all this good news work for you and your family.
HARRY’S JOKES OF THE DAY
Job Well Done
Seller to Agent: You’ve done such a great job describing my house in your real estate listing that I’ve decided to keep it!
Ten Commandments
A real-estate agent, had difficulty getting a listing from a customer whose theory was that "there is no substitute for experience."
After she asked him a third time how many years he had been in the business, he told her: "Madam, there is a little-known historical fact that Moses brought three tablets down from the mountain--two were the Ten Commandments and the other was my real-estate license!" He got the listing!
And, one that’s probably more true than funny….
