Real Estate Information Archive

October 26, 2021

 

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.

 

 

 

IF A PICTURE IS WORTH 1,000 WORDS…. THE ONE ABOVE COULD MEAN HUNDREDS OF THOUSANDS (OF DOLLARS) TO YOU…

Home sales are picking up again and for many good reasons.  Interest rates have remained historically low, but the recent talk of possible increases, along with more available homes for sale, has been good incentive for some of my clients to sit down and discuss whether now is the time for action.

As I’ve said forever, I can’t begin to predict which way rates will go.  But I can tell you that these very low ones won’t be around forever.  The Fed has been discussing inflation and what can be done to curb it so today’s low interest rates could be a thing of the past sooner than later.  And with more and more folks choosing to work from home (WFH), their wants and needs are far different than prior to the pandemic.

Colorado Springs is also seeing quite a resurgence as a place that young professionals want to work and live due to our fabulous work/life balance and new companies are relocating here as well.  Downtown has “come back” and then some, with the addition of museums such as the U.S. Olympic and Paralympic Museum and various sports venues, as well as new restaurants, shops, apartments, and other living spaces.

We’re starting to feel like a “big” city, while fortunately retaining many of the things that may us proud and happy to call Colorado Springs our hometown.  I won’t talk about traffic since my friends who live elsewhere think we don’t have any, but…if you’ve lived here for any length of time you know what I mean.  

Amazon recently opened their largest distribution center in the four surrounding states near our airport and many of those employees (the non-robotic ones!) are looking for homes.  So are the ones choosing to relocate here with their companies.  Having more homes available for sale has been a blessing for those folks and as new homebuilding continues to ramp up, this has been the choice for many of them as well.

In fact, I’ve helped some relocatees purchase new home construction, often without them seeing a model home in person.  Lot and home elevation selections have been completed via video and I’ve been their “eyes” in making certain that the builders follow through with all the particulars.  My long-standing relationship with many local builders has made that process easier for my clients and this is a service I provide at no additional cost to the buyer.  

I’m starting to find myself as busy as ever, and if there were more existing homes for sale, I’d be even busier.  When homes get listed, my clients are ready to pounce, but unfortunately so are a number of other potential buyers.

This leads me to tell you that even though there are more homes for sale at present, we are still seeing multiple offers, many over listing price, and quick turnarounds.  Bidding wars apparently are here to stay for a while, so it’s as important as ever to know what you want, need, and can afford PRIOR to the search.  Once you find the home you want there is little time to “think it over”.  

If you’ve even considered a new home or neighborhood, let’s talk and see how together we can make your present home help you work toward that goal.  There’s no better time than now to make all your Residential real estate dreams come true.

And…the best move you can make at present is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get the ball rolling.  

I look forward to speaking with you.

 

HOME SALES AND PRICES JUMPED IN SEPTEMBER

The Wall Street Journal, 10.22.21

As depicted in the illustration above, U.S. home sales surged last month with their strongest showing since January, ending a months-long stretch when housing market activity slowed from its frenzied pace and high prices put the brakes on a number of buyers.

The dip in mortgage rates and activity at the high end of the market helped existing-home sales rise 7% in September nationally from the prior month to a seasonally adjusted annual rate of 6.29 million, according to the National Association of Realtors (NAR).  

While demand from buyers has exceeded supply for more than a year, economists said that last month was still a standout.

“This autumn season looks to be one of the best autumn home-sale seasons in 15 years,” said Lawrence Yun, NAR’s chief economist. 

And though prices remain near record highs, the pace of price growth is slowing, which will allow for a more “normal” appreciation.  

Again, what all this means is that NOW is the time to get off the fence if you’ve even considered a move.  The sooner you begin, the sooner you will be in a new home.  Don’t delay, call me today.  If there’s a way to get you where you want to be, I’m the guy who can get you there.

 

SALES TAX COLLECTIONS IN COLORADO SPRINGS JUMP

The Gazette, 10.23.21

Colorado Springs is continuing a robust recovery 1 ½ years after the onset of the COVID-19 pandemic.  The city saw another double-digit percentage gain in sales tax collections last month, a good sign for the Pike’s Peak region’s economy.

It’s evident that folks are busy spending on things such as cars, appliances, TVs, apparel and building materials, among other items—and the 2% sales tax levied on such generated nearly $19 million in revenue in September according to a report released last Friday by the Colorado Springs Finance Department.

That’s 22% higher than the same month a year ago and continues the double digit increases that began in March.

According to Tatiana Bailey, director of the University of Colorado at Colorado Springs Economic Forum, “It’s an overall indicator of continued economic growth.  We’ve regained all of our jobs in the region.  It’s all good news and great news for the mayor’s office and having the tax revenues we need.”

Since Colorado Springs’ sale tax is a critical revenue source and closely watched by city officials and local economists because it funds more than half of the Springs’ annual general fund budget, this is exceptionally good news all around.

Bravo to all of us for helping to boost the local economy.

 

ERA SHIELDS QUARTERLY “STAT PACK”

I want to share with you the quarterly “Residential Review” for El Paso County that is compiled by my company. The data provided is through the Third Quarter, 2021.   You can click here to read the report, along with charts, in its entirety.

The graph below compares the number of homes on the market (active) to the number of homes sold.  It determines how many months it would take to sell through the current listing inventory.  Most economists consider 6.0 months to be a “balanced” market:

 

 

 

And some quick facts you might find interesting:

 

• New Listings Input for the Quarter were up 472 units from 2020 (9%)

 

• Sales for the Quarter were down 7% (4490 vs 4854)

 

• Median Price for the Quarter is up to $445,667 (16%)

 

• Average Price for the Quarter went up to $500,433 (16%)

 

• Just 4% of sales in the Quarter were under $300k (in 2020 it was 15%, 2019 it was 37%)

 

• 50 homes sold for $1 million+ during the Quarter (21 sold during the same period last year)

 

• Single-Family building permits this year are up 356 units (9%)

 

• 30-year Fixed-Rate Mortgages are right at 3%

 

SHOULD YOU RENOVATE OR MOVE…THE BIG QUESTION

Keeping Current Matters, 10.13.21

 

As I’ve been mentioning a lot, the last 18 months have changed what many buyers are looking for in a home.  The American Institute of Architects recently released their AIA Home Design Trends 66667uSurvey, and it reveals the following:

 

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% or respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

 

If you are like any of these respondents and want to add any of the above, you have two options:  renovate your current home or buy a home that already has the spaces you desire.  The decision you make could be determined by factors such as:

 

1. A possible desire to relocate

 

2. The difference in the cost of a renovation versus a purchase

 

3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

 

In either case you will need access to the funds for either a renovation or the down payment your next home would require.  The great news is that the money you need probably already exists in the equity of your current home.

 

Home equity is skyrocketing due to the record-setting increases in home prices over the past two years.  The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:

 

 

The money you need to purchase the perfect home or renovate your current house may be right at your fingertips.  However, waiting to make your decision may increase the cost of tapping that equity.

 

If you decide to renovate, you’ll need to refinance or take out an equity loan to access the equity.  If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between your down payment and the cost of your new home.

 

Mortgage rates are forecast to increase over the next year, so waiting to leverage your equity will probably mean you’ll pay more to do so.  According to the latest data from the Federal Housing Finance Agency (FIFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below.  If you are one of those homeowners, you can keep your mortgage under 4% by doing it now.  If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

 

First Step:  Determine the Amount of Equity in Your Home

 

If you’re ready to either redesign your current home or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home.  To do that, you’ll need two things:

 

1. The current mortgage balance on your home

 

2. The current value of your home

 

You can more than likely find the mortgage balance on your monthly mortgage statement.  To discover the current market value of your house you can pay several hundred dollars for an appraisal, or you can contact me, and I will be able to give you a professional equity assessment report at no cost to you.

 

Bottom Line?  If you are one of the many who have refocused your thoughts on what you want from your home over the past 18 months, now may be the very best time to either renovate or make a move to the perfect home.

 

Any Questions?  Contact me and I will more than happy to give you answers.  And if I don’t have the answers, you can be sure I know how and where to get them for you.

 

HARRY’S HALLOWEEN JOKES OF THE DAY:  

 

 

 

 

 

 

 

October 7, 2021

 

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.

 

 

NOW THAT I’VE GOT YOUR ATTENTION…REPEAT AFTER ME…IT’S STILL A SELLERS’ MARKET

Things haven’t changed much in the last month which is continuing to make it difficult for those wanting to sell and trade up, relocate to another area, or purchase a home for the first time.

The infographic above is based on national figures and our local numbers are even better than those depicted, as you will see in the August statistics below.

It’s difficult for anyone to predict what will happen to interest rates with all the political discourse currently taking place and a number of buyers are rushing to take advantage of the current rates before they are gone.  

Supplies are still going for a premium if they are even available and that’s another problem both homebuilders and home renovators are facing.  

If this all sounds a bit pessimistic for a perennial optimist like me, well, not to worry.  I just want to tell it to you straight.  However, as you already know by now, I can always find a way around most obstacles. And when you’ve got me in your corner, the battle is half won before you even begin.

That’s not to say it’s easy when it comes to buying a home today, but after 48 plus years in local Residential real estate I’ve become known for my “can do” attitude and one way or another will help my clients find a way to realize their real estate dreams.

Selling is another story entirely.  It’s likely that your present home will sell fast, making it difficult if you have not yet decided where you want to move.  That’s one reason why it’s smart to know your wants, needs and budget BEFORE you even begin the process of selling to trade up or move to another neighborhood.  

My advice to you?  If you’ve even considered a move, NOW is the time to get started. Prices aren’t going down anytime soon, and as I mentioned, mortgage rates essentially have nowhere to go but up. 

The very best move you can make today is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  Together we can work to find the best options for your individual family situation.

I look forward to speaking with you soon.

 

SEPTEMBER 2021

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

Here are some highlights from the September 2021 PPAR report.  The format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a very low 10.  For condo/townhomes it was 9.  

Also in El Paso County, the sales price/list price for single family/patio homes was 102.3% and for condo/townhomes it was 102.7%.  

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 September 2021 to September 2020 for All Homes in PPAR:

                        

                     Single Family/Patio Homes:

·       New Listings were 1,829, Up 9.8%

·       Number of Sales were 1,758, Down 2.5%

·       Average Sales Price was $498,003, Up 15.5%

·       Median Sales Price was $440,000, Up 14.3%

·       Total Active Listings are 1,184, Up 18.9%

·       Months Supply is 0.7, Up 22.0%

 

Condo/Townhomes:

·       New Listings were 288, Up 12.9% 

·       Number of Sales were 302, Up 15.7%

·       Average Sales Price was $335,905, Up 13.8%

·       Median Sales Price was $318,500, Up 15.0%

·       Total Active Listings are 142, Up 6.0%

·       Months Supply is 0.5, Down 8.4%

 

Now a look at more statistics…

 

SEPTEMBER 2021 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 7.6%

 

• Median Sales Price for All Properties was Up 14.8%

 

• Active Listings on All Properties were Down 14.9%

 

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

 

And now some advice for BUYERS:

 

 

EARLY OCTOBER IS THE “SWEET SPOT” FOR BUYERS

KeepingCurrentMatters, 9.28.21

 

If you’re looking to buy a new home, here’s some better news for you.  Even though the housing market news has recently been focused on “sellers” and their perks while discussing the bidding wars and other obstacles for buyers, there are some clear signs that buyers may have more opportunities this fall and winter.

According to realtor.com, the sweet spot for buyers is right now.  A recent study looking at housing market trend data from the past several years and applying it to the current market found:

 

“Nationally, the best time to buy in 2021 is the week of October 3-9.  This week historically has shown the best balance of market conditions that favor buyers.”

 

So, if you’re looking to buy a home, the best time to start is TODAY.  And here are a few reasons why:

 

1. Increased Housing Supply.  The number of homes for sale should be increasing.  According to realtor.comyou can expect to see more new listings come to market this week.  The findings estimate we should see roughly 17.6% more homes available for sale nationally than we saw at the start of the year. This means more options from which to choose, which should be a welcome relief in this market with tight housing supply.

 

2. Fewer Bidding Wars.  With more homes available you should also see a slight decline in the number of bidding wars.  This means when you write an offer, you may have less competition and a better chance of being the top bid.  But remember, it’s still important to come in with a strong offer if you want that offer to be accepted.

 

3. Adjusted Home Prices.  Heading toward the end of the year, the findings from realtor.com note that this week may also be one of the peak weeks for price reductions in 2021.  Historically the data shows that an average of 7.0% of homes nationally have a price reduction this week.  Why?  When housing supply increases, sellers need to look for other ways to make their home stick out. So, while prices continue to increase overall, you may see some homes with price adjustments from eager sellers.  For sellers who want to close before year end, they may be more motivated this month.

 

Bottom Line:  If you’re in the market for a home, NOW is the time.  October may give you the long-awaited opportunity to find what you’ve been wanting.  Call me sooner than later and let’s see how we can make your dreams a reality.

 

IF YOU’RE A BUYER, IS OFFERING ASKING PRICE ENOUGH?

KeepingCurrentMatters, 9.27.21

 

As I’ve been saying for some time now, the “new normal” in writing an offer for a home shouldn’t include the expectation that you will be able to negotiate a lower than listing sales price.  In other times, buyers often tried to determine how much less than the asking price they could offer and still get the home.  From there, the buyer and seller would typically negotiate and agree on a price somewhere in the middle.

 

Things are different today. 

 

Today’s housing market is anything but normal.  According to the National Association of Realtors (NAR), on a national level, homes are receiving an average of 3.8 offers and selling in just 17 days.  Locally our average selling time is just 10 days!  

Selma Hepp, Deputy Chief Economist at CoreLogic explains how low supply and high demand can impact buyers:

“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months.  Now, almost 6 in 10 homes listed are selling for over the asking price.”  

In El Paso County the average sales to list price in September was 102.3% for single family and patio homes and 102.7% for condos and townhomes.  Once again, when it comes to market conditions, you must look at the LOCAL trends.  Colorado Springs has consistently performed better than the national average for some time now.

 

You may need to rethink how you look at a home’s asking price.

What this means is that if you’ve found your dream home, you need to be realistic about this “new normal” and how that impacts the offer you’ll make.  Offering below or even at a home’s asking price may not cut it.  In today’s market, somewhat like an auction, the highest bidder often wins the home.

Currently, the asking price is often the starting point in the negotiation rather than the ceiling.  If you really love a home, it may ultimately sell for more than the sellers are asking—in some cases, a lot more.  That’s important to remember when we sit down to craft your offer.

 

Understand that an appraisal gap could happen.

Appraisal gaps—the gap between the price of your contract and the appraisal of the home—are more frequent in today’s market due to home appreciation and the auction-like atmosphere in the selling process.

According to Corelogic:  “Beginning in January 2020, nationally, 7% of purchase transactions had a contract price above the appraisal, but by May 2021, the frequency had increased to 19% of purchase transactions.”

When this occurs, your lender won’t loan you more than the home’s appraised value, and the seller may ask you to make up the difference out of pocket.  Buyers today need to be prepared for this possibility.  It’s important to know your budget, know what you can afford, and we can write the offer in such a way to cover the possibility of an appraisal gap.

All of these things will come into play when you find the home you wish to buy.  This is just another reason why it’s important to have a seasoned real estate professional like me on your side as you tread the “new normal” of making an offer that not only excites the seller, but one that makes it to the closing table.

The 25^th Annual UCCS Economic Forum will be held virtually again this year on Thursday, October 14^th from 1-4 p.m.  It will be presented at NO COST to registrants; however, registration is required.

As you might be aware, I’ve been a sponsor of this event since its inception and the annual event is one that no Colorado Springs businessperson should ever miss.

For more information and to register please go to:

 http://uccseconomicforum.com/registration/