Real Estate Information Archive

Blog

Displaying blog entries 1-2 of 2

HARRY'S BI-WEEKLY UPDATE 11.23.15

by Harry Salzman

                                                            

November 23, 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.

IT’S THE TIME OF YEAR TO GIVE SPECIAL THANKS…AND LET ME START WITH YOU

Thanksgiving has always been a favorite time of year for me, and not just for the great food, celebrations and advent of ski season.  It has been a time of reflection when I consider the abundant blessings in my life. 

This year has been even more special than usual, as it’s been filled with so many professional changes and rewards.  I sold my building of 38 years at 538 Garden of the Gods Rd last spring and am now associated with ERA Shields, a group of incredible real estate professionals that I am happy to now call my associates, as well as friends.  If you haven’t been to my new office, located at 5475 Tech Center Drive, Suite 300, I would love to have you stop in and say hello.

For my participation in local community service, I received the “Spirit of the Springs” award from ex-Mayor Steve Bach and recently received a “Reward of Excellence” from the Colorado Springs Regional Business Alliance.  It’s always been my belief that giving back to the community where I live and work is something I not only need to do, but also something I truly enjoy doing.

All of this has been made possible because of my association with my friends and clients and for that I am the most thankful.  The relationships I’ve made over my 43 years in the local real estate arena mean so much to me. 

That I am now working with the children and family members of past and current clients is so rewarding and I do not take that lightly.  It is my goal to continue earning the trust you all have placed in me by all the referrals and continued support in giving me the opportunity to serve all your Residential real estate needs.

Again this year let me start the holiday season by giving thanks to YOU.  May you and yours have a very Happy Thanksgiving.

 

COLORADO SPRINGS’ MEDIAN HOME PRICES CONTINUE UPWARD TREND

National Association of REALTORS® 11.11.15

Home sales are up and supply is down and this has caused homes to steadily rise in most metro areas of the U.S.AAccording to recently published Median Sales Price of Existing Single-Family Home for Metropolitan Areas, Colorado Springs is right in the middle—a median price increase ranking of 5.0% vs. 5.5% nationally during the 3rd quarter 2015. 

As most of you are aware, I publish these results each quarter as soon as they become available from the National Association of REALTORS® (NAR) and there are 178 metropolitan statistical areas (MSAs) included in the survey, Colorado Springs among them.

While the last quarter’s local median sales price growth is a bit lower than nationally, I want to remind you that for the last two quarters we were considerably above the national average, and with a shortage of listings and our “selling season” winding down a bit, I was not surprised at this number.

This time last year I was concerned that Colorado Springs was not keeping up with the average of other surveyed metro areas, but that is no longer the case.  Our average median sales price for 3rd quarter 2014 was $231,500 and as of the end of 3rd quarter 2015 it is $243,100.  The national average median sales price was $229,000, up from $217,100, so while we were lower percentage-wise, our average median sales price is still 6.1% higher than the national number.

In general, the housing market had its best quarter in nearly a decade, according to Lawrence Yun, NAR chief economist.  “The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies,” he said.  “While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales.”  (Exactly why our slightly lower than average growth is GOOD news!)

Yun says sales had the potential to be even higher last quarter given the decline in mortgage rates and favorable economic conditions.  “Unfortunately, the lack of any meaningful gains in housing supply pushed prices in some areas above what some potential buyers—especially first-time buyers—are able to afford.”

NAR President Chris Polychron says the overall pool of potential buyers still outweighs what’s available for sale in several markets this fall.  REALTORS® are still reporting that many homes are going under contract more quickly than what’s typical this time of year,” he said.  “While this is certainly beneficial to homeowners looking to sell, some are still reluctant to list out of concerns they’ll have limited time and choices during their own home search.”

With rising home prices, despite an increase in the national family median income, comes a slightly decreased affordability in the 3rd quarter compared to the 3rd quarter last year.  To purchase a single-family home at the national median price, a buyer making a 5% down payment would need an income of $50,324, a 10% down payment would require an income of $47,675 and $42,378 would be needed for a 20% down payment.

To view the entire list of 178 metro areas, please click here.

Bottom Line:  This is good, albeit mixed, news for local homeowners.  More than likely the equity in your present home has increased, giving you the ability to sell and trade up or relocate to another neighborhood.  And while the new home you might be considering has also increased in price, interest rates are still historically low.  As you will read later on, it’s looking like the possibility of the Fed raising rates at their December meeting is no longer “just talk”.  This possible rate increase, the fast pace of homes getting to closing and home affordability for some is making for “interesting” times in the residential real estate arena.

As I’ve mentioned in the past, there are many new regulations and requirements available, especially for first time buyers.  This is a good thing, and one that can really help young people start earning equity for themselves rather than for the person from whom they are renting.  Potential first-time buyers should be looking at these new options sooner than later with the advent of rising mortgage rates. 

And, if you’ve been sitting on the fence, I’d suggest you at least consider getting off and quickly check out your options.  Prices don’t appear to be going down and interest rates will be on the upswing in the near future. 

For those looking for investment purposes, the continual rising rental rates are providing a good reason to think about that at present.  I wouldn’t wait a lot longer, though, because there are not as many “bargains” as in the past and home prices are escalating also.

I am available by phone at 598.3200 or email at Harry@HarrySalzman.com and would be happy to sit down and help you determine how to best handle your needs, wants and budget to make purchasing residential real estate a reality for you.

 

LOCAL MARKET UPDATE AND MONTHLY INDICATORS CONTINUE TO SHINE

Pikes Peak REALTORS® Services Corp.,

The recently published Monthly Indicators and Local Market Update for El Paso and Teller Counties gives you a complete report of what the local housing market is doing and breaks it down by neighborhood.

It provides greater detail than the monthly “PPAR Monthly Statistics” that I shared in the last eNewsletter.

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

  • Sold Listings for All Properties was up 11.0%
  • Median Sales Price for All Properties was up 4.5%
  • Active Listings on All Properties was down 37.4%.

Again, you can see that while prices continue to rise, available listings are way down.  There’s not much I can do but warn you again that if you’ve even “considered” a new home, NOW is the time. 

Enough said.

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update.

If you have any questions concerning the report, please contact me.

 

COLORADO SPRINGS RANKED AMONG TOP 10 CITIES IN WHICH TO OWN A HOME

The Gazette, 11.21.15,

A survey conducted this summer confirmed what most of us residents already know—Colorado Springs is one of the best places to own a home.

The home repair and renovations services website Porch.com and the national brokerage firm Redfin conducted the survey which was based on responses from close to 10,000 homeowners nationwide and results indicated that Colorado Springs finished eighth among 67 cities.

Ratings were based on weather, the economy, education, commutes, safety and taxes, among other quality-of-life factors.  Our city’s ranking was helped by the strong marks it received for climate, healthiness and safety.  Denver finished first in the survey, while Memphis, Tennessee ranked last.

Good new for Colorado in general—and another feather in our local hat.

 

HOME SALES OUTLOOK AND relocation TRENDS WEBINAR HAD POINTS WORTH SHARING

Last Thursday I attending a “Webinar” presentation conducted by Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research at the NAR.  If you recognize his name, it’s because I quote Yun quite often in my eNewsletters and have high regard for his extensive knowledge of the residential real estate market and national economy in general.

Here are some things I found memorable and wanted to share from the hour long Webinar that was given to Worldwide ERC members, of which I am one.

  • People under 35 years old have a historically low homeownership rate
  • Difficulty Facing First-time Buyers
  • Student loan debt is 41% and the typical amount is $25,000—even among successful first-time buyers
  • There is no affordable inventory—for 51% of these people, the hardest task is finding the right property
  • They face competition from vacation buyers and investors who are buying similar priced/sized homes and paying all cash
  • Student Loan debt is approaching $1.4 Trillion
  • H.O.M.E. SURVEY (Housing Opportunity and Market Experience) results:

 

  • Desire to own remains strong and is strengthening
  • 87% of Americans believe homeownership is part of their personal American Dream
  • 91% of 18-24 year olds believe this to be true
  • There are psychological reasons for this, but also financial ones
  • Americans want to own a place to raise a family and own a place of their own, but also a nest egg for retirement
  • Recent buyers bought a home not only to start a family but also because owning is cheaper than renting
  • 83% of Americans believe buying is a good financial decision

 

  • Homeownership rates will fall further but home sales will rise further

AND… WATCH FOR THIS FOLKS….YUN STATED…

  • “Fed Rate Hike in December

then again in March

then again in August

then again in…..”

  • Rents are rising at a 7-year high and Rental vacancies are at a 30-year low
  • Why would we expect Home Sales to rise?

 

  • Rising Mortgage Rates—Not Good for Sales
  • Too fast rising rates—Not Good for Sales
  • Housing Equity for Pent-up Sellers—GOOD for Sales
  • Return Boomerang Buyers—GOOD for Sales
  • Steadily increased supply—GOOD for Sales, and
  • Job  Creation—SUPER GOOD for Sales

Click here to see Yun’s concluding charts -- the Economic Forecast and Housing Forecast for 2016.

Good information from a great economist.  And speaking of that, I thought I’d put a face to the name.  Here’s a photo of me with Dr. Yun taken at a PPAR reception several years ago.  A little grainy, but you get the idea!

THE CHANGING FACE OF THE AMERICAN HOMEOWNER

RisMedia’s housecall, 11.11.15

One last thing you will find interesting is this “Infographic” on the Changing Face of the American Homeowner. 

Julián Castro, Secretary of the U.S. Department of Housing and Urban Development, at a recent speech during the 2015 convention of the Mortgage Bankers Association, quoted President Lyndon Johnson.  He stated that “ President Johnson once said that owning a home is more than just a cherished dream:  It represents achievement, something to be proud of—a place where a person can live with joy and pride, pleasure and dignity.”

As the homeownership rate dipped to a 50-year low mark in the second quarter of this year, homeownership “magic” feels to some like a cruel trick Castro said.  However, he managed to put a positive spin on this in saying, “A few years ago, we faced the greatest housing test of our lifetimes, but we made it through.  Not only are we still standing, we’re prospering and the economy is growing stronger.”

I thought you would enjoy seeing the Inforgraphic from LawnStarter which depicts homeownership data based on race, ethnicity, income, age and geography.  Click here for a look.

Any questions? You know where to find me!

 

WHAT EVERY SELLER SHOULD KNOW ABOUT COMPS

Rismedia 10.19.15

When you get ready to list your home, comps—or the most recent comparable sales—give real estate professionals and appraisers the information they need to price a home a “fair market value”.  While this is “business as usual” for those folks, it’s not as easy for sellers to understand the various tangibles and intangibles that are considerations in making the “listing price” decision.

This is evident from the gap between what homeowners “believe” their home is worth and what an appraiser’s opinion might be.  According to a recent Quicken Loans Home Price Perception Index report, homeowner estimates averaged 2 percent higher than those of appraisers—which is “a considerable margin in markets with ballooning home values’, says Quicken Loans Chief Economist Bob Walters.

“It may not seem significant…but it could make a huge difference in metro areas with higher average home values”, Walters explained.

However, this is not always the case, because in a market that is going up, there isn’t that much of a difference with seller opinions.  If the seller has the time, the market is moving in the direction they desire.  It is harder with sellers who are behind the market—the market moves, but they always think the market will be better tomorrow and it’s too early for them to sell now.

We all think our homes are worth “x” amount and oftentimes strongly disagree with the comps and appraised value.  In cases like this, it’s best to defer to your knowledgeable real estate professional who isn’t emotionally attached to your home and can give an objective opinion based on actual facts.

Some things taken into consideration when arriving at a listing price may include location, age, lot size, energy efficiency, square footage, number of bedrooms and bathrooms, and other “hidden gems” that give the property a “WOW’ factor that might increase the listing price. 

Sellers should bear in mind comparable data reflect the activities of both buyers and sellers, no matter which the market currently favors.  As Warren Buffet summed it up:

“Price is what you pay.  Value is what you get.”

 

HARRY’S JOKES OF THE DAY

                 

 

FEATURED LISTING

 

WOULDN’T YOU LIKE YOUR HOME TO BE THE ONE FEATURED HERE? 

 

Just give me a call and let’s see what we can do to help you Sell and Trade Up before the interest rates start their upward climb.

 

HARRY'S BI-WEEKLY UPDATE 11.9.15

by Harry Salzman

                                              

October 13, 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.

COLORADO SPRINGS REGIONAL BUSINESS ALLIANCE PRESENTED ME WITH A COMMUNITY SUPPORT “AWARD FOR EXCELLENCE”

Most of you know that a word I often use is “WOW” and Saturday night was a VERY big “WOW” for me.

At the Annual Colorado Springs Business Alliance’s Business and Industry Awards Dinner at The Broadmoor, I was totally surprised and overwhelmed when CEO Dirk Draper called me onto the stage and presented me with this award.

Having lived in Colorado Springs since 1972, I have always made it a priority to volunteer my time in serving the City of Colorado Springs, civically and in the corporate and non-profit sector.  This is something I believe important for any successful citizen.  Colorado Springs is my home, the place where I earn a living and the place where I take great pleasure in helping folks to relocate.  As I tell everyone I meet all over the country—this is the place where “America the Beautiful” was written and there’s a reason for that. 

I do what I do because it is my sincere belief that the only way to show my appreciation is to give back.  I am only one of many in this community who do the same—and we all do it with the hope that we are building a better future for the town that has given us so much.

We do what we do for the sake of doing it, but I found out Saturday evening just how gratifying it is to also get public recognition for it. 

I want to take a moment to thank the RBA, but even more I’d like to thank all of you, because without your confidence in me as your REALTOR® I would never have been in a position to accept this award.

Please excuse this bit of self-serving promotion, but of all the awards I’ve received over the years, this one is special due to its special significance to my life.

 Again…I thank you all.

 

AND SPEAKING OF “WOW”…

When is the last time YOU said “WOW” and really meant it?  Those of you who have been house hunting with me use it often and with good reason.  I do the homework to make certain that I can find the home that fits not only your needs and wants, but your budgetary concerns as well.

If you or anyone you know is in the Residential real estate market, why not find your own “WOW” by giving me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s discuss how we can make that happen.

 

RESIDENTIAL real estate SALES INCREASE FOR 15TH STRAIGHT MONTH

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

I am thrilled to report that things are continuing to look excellent for the Pikes Peak Region in the Residential real estate Market.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes are up 18.8% over the same period last year.  And Condo/Townhome sales are up 32.4% over the same period last year.  This is especially significant because we are approaching the time of year that home sales tend to slow down due to the holiday season.

While total active listings still remain down from the same period last year, new listings in October were up slightly in the Single Family/Patio Homes category and up 24.1% in the Condo/Townhome category in year over year comparison.

These numbers continue to reflect strong consumer confidence and local job growth.  Many people are taking advantage of increased home equity in order to sell and trade up while getting still historically low interest rates.

Increased new listings mean more choices for those looking to buy, but with homes selling quickly it’s important to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision can be necessary at times in order to get the home you want. 

Here are some highlights from the October 2015 PPAR report.    You will see below that I have changed the comparison on the Monthly Sales Analysis to better help you see the year-over-year increase in Median Sales Prices.  This really illustrates how the Pikes Peak Region has done during the Housing Recovery.  Please click here to view the detailed 13-pages, including charts for October 2015. If you have any questions, as always, I’m just a phone call away at 598.3200.

In comparing October 2015 to October 2014 in PPAR:                      

                        Single Family/Patio Homes:

  • New Listings are 1197, Up 0.8%
  • Number of Sales are 1,107, Up 13.9%
  • Average Sales Price is $263,584, Up 2.7%
  • Median Sales Price is $234,900, Up 4.4%
  • Total Active Listings are 2,936, Down 16.1%

                        Condo/Townhomes:

  • New Listings are 180 Up 24.1%
  • Number of Sales are 166, Up 23.9%
  • Average Sales Price is $169,350, Up 4.8%
  • Median Sales Price is $155,000, Up 5.4%
  • Total Active Listings are 253, Down 34.5%

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

Comparing Year-Over-Year Median Sales Prices

                                                Median Sales Price             Median Sales Price

                                                October 2015                                    October 2014

Black Forest                             $423,500                              $393,500

Briargate                                   $292,750                              $272,750         

Central                                      $204,150                              $176,500

East                                           $187,500                              $175,250

Fountain Valley:                       $199,900                              $190,950

Manitou Springs:                     $295,000                              $275,250

Marksheffel:                              $264,500                             $258,000

Northeast:                                 $233,000                             $220,000

Northgate:                                $398,450                              $350,000         

Northwest:                                $334,950                              $307,250

Old Colorado City:                   $242,000                             $174,450

Powers:                                     $230,000                             $222,000

Southwest:                                $276,000                             $240,500

Tri-Lakes:                                  $430,609                             $349,625

West:                                         $272,500                             $242,500

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

 

ON VETERAN’S DAY…IT’S TIME FOR THANKS

I’ve always been so Proud to be an American” as the song goes and with that I am aware of the many sacrifices that have been made in the past and continue to be made each and every day to ensure that we all can live in peace in the greatest country in the world

With Veteran’s Day this week I especially want to give a shout out to all who have served and those currently serving in our Armed Forces. 

Living in a city that has so much military presence and having worked with so many of these families in relocation, I am acutely aware of the hardships and personal sacrifices these folks make.  We all owe them a tremendous debt of gratitude, on Veterans Day and every day.

THANK YOU VETERANS -- ONE AND ALL.

 

FEDERAL RESERVE KEEPS SENDING MIXED MESSAGES

                           

I happened to see this illustration in The New York Times Sunday magazine a couple of weeks ago and thought it actually more “right on” than humorous and wanted to share it with you.

It’s been more than a year since I’ve been telling you that the historically low interest rates are going to rise and I’m still confident that is going to happen…I just no longer can begin to predict “when”.

Janet Yellen, Federal Reserve Chair, said this week that an interest rate hike in December would be a “live possibility” if the economy stays on track.  She has said that the U.S. economy is “performing well” at the moment, with solid growth in domestic spending.  However, she stressed that no decision has been made yet and a move in December will depend on how the economy performs up until that time. 

What is the bottom line here?  The thing I know about interest rates is that I don’t know when they will rise.  But what I DO know is that when the do, it will be the beginning of the end of historically low mortgage loans.  Will they go right back to 10 or 12 percent?  Absolutely not in the foreseeable future.  But even moving up a percentage point or two will make a difference in monthly payments and also affect some people’s ability to qualify for a mortgage. 

This is another “heads up” to those who have been sitting on the fence.  If you’ve even considered a move or buying for the first time, now is the time to consider all your options.  Just give me a call and let’s see if it’s a possibility at present.   

 

U.S. HOME SALES HEADED TO BEST YEAR SINCE 2007 BUT FIRST-TIME HOME BUYS ARE NEAR 1987 LEVEL

The Wall Street Journal, 10.23.15

September was a big month for home sales in the U.S. with existing-home sales climbing 4.7% to a seasonally adjusted 5.5 million--8.8% above a year ago at this time.  This puts the market on pace for its best year since before the recession.

Lawrence Yun, chief economist for the NAR, has said that better job growth, continued low mortgage rates and pent up demand are fueling this activity.  Home prices are rising much faster than income, though, and this is creating a problem for young buyers trying to save for a down payment. 

Prices have been driven up by an increase of college-educated professionals and a lack of new construction nationally.  The combination of rising prices and affordability constraints is beginning to weight on the market. 

Listings remain a problem and Yun said,  “Come spring of next year, based on the current trend, we find we could be facing really tight inventory once the spring buying season returns, unless home builders really ramp up production.”

In conjunction with this, first time home buys fell to 32% of all purchasers in 2015 from 33% last year, the third straight annual decline and the lowest percentage since 1987.  According to economists, the historically low share of younger buyers could pose long-term challenges.  Without these buyers, current owners have difficulty trading up or selling their homes when they retire. 

Most first time buyers have said their biggest challenge beside saving for a down payment was the money owed on student loans.  And with rental rates increasing steadily, it’s really tough for them to put money aside.  The new down payment and loan qualification regulations are helping some of these first timers but others will just have to wait. 

So…more mixed news…home sales are up, but along with them are higher prices and decreased affordability.  Again…the time to Buy is NOW.

 

HARRY’S JOKES OF THE DAY ( courtesy of the Internet and not such a joke when you think about it!)

 

 

Displaying blog entries 1-2 of 2

Syndication

Categories

Archives

Contact Information

Photo of Harry A Salzman Real Estate
Harry A Salzman
Salzman Real Estate Services
5475 Tech Center Drive, Suite 300
Colorado Springs CO 80919
719-593-1000 or Toll Free: 800-677-MOVE(6683)
Cell: 719-231-1285
Fax: 719-548-9357

Quick Search

Listing Alerts

Be the first to know what's coming up for sale in the Colorado Springs real estate market with our New Property Listing Alerts!

Just tell us what you're looking for and we'll email a daily update of all homes listed for sale since your last update. You can unsubscribe at any time.

Get Notifications

Contact Us

Our office is located at:
5475 Tech Center Drive, Suite 300
Colorado Springs, CO 80919

719-598-3200
719-598-4210
Harry@HarrySalzman.com

Contact Us Online