Real Estate Information Archive

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

ANOTHER  REASON TO  BUY NOW !!! (OR, WOULD YOU RATHER BE A MULE?)

In previous issues, we have pointed out that when the looming Inflation hits, home prices will necessarily have to increase. Well, it doesn’t look like we will have to wait until the third or fourth quarter for the predicted inflation to begin. Last week, the Wall Street Journal’s Commodities Report noted that lumber prices have climbed 32% since January 1, 2010. This sudden climb in prices is the result of a shortage of lumber caused by the cut-backs of 45% in production at the lumber mills.

Between 2005 and 2009, lumber prices showed a consistent decline. However, as a result of the 2009 fall-off in residential construction, lumber mills laid off workers and decreased inventories. That kind of cut-back cannot be reversed overnight.  It will take time for mills to re-hire workers and return to full production, and that will happen only when the mill owners are convinced that there is a sustainable rebound in residential construction. The predictable result of this present lumber-shortage is that builders will now have to delay construction as they wait for deliveries and will have to pay more for lumber, when it becomes available. That cost increase will be passed along to home buyers.

This impending cost increase reflects two basic facts of life. First of all, as we all learned in Economics 101, Supply and Demand will always balance each other out. When a commodity is in short supply, it will cost more…and that includes two-by-fours. The second lesson may not be familiar to most present-day city dwellers. Old-time mule-skinners used to say that the first step in training a mule was to hit him between the eyes with a two-by-four. That got the mule’s attention and helped him concentrate on learning. Well, it seems that the mill-owners have just hit us between the eyes with a two-by-four. Will it help us to learn our lesson?? We remind all prospective home buyers that the home you buy today will definitely be worth more tomorrow.

CREDIT CARD CHARGES GOING UP

As of today, new federal regulations governing credit card companies will go into effect. As with all governmental regulations, these new regulations will increase the credit card companies’ cost of doing business and will be passed along to the users of credit cards (in other words, to everybody). Just another example of how inflation is creeping in.  

4TH-QUARTER STATS NOW AVAILABLE FROM SOUTHERN COLORADO ECONOMIC FORUM

The Southern Colorado Economic Forum of the University of Colorado at Colorado Springs has just published its 2009 fourth-quarter report. This comprehensive report contains invaluable information about our local economy and will assist you in making sound decisions about your real estate investments. It covers such topics as:

• The Business Conditions Index: An overall view of 10 separate activities of products and services
• Single-family permit trends
• Multi-family permits
• Year-to-date single-family home sales
• Monthly single-family home sales
• Average home-sale prices
• Median home-sale prices
• El Paso County foreclosure statistics
• Multi-family vacancy rates
• Emplanement trends at Colorado Springs Airport
• Colorado Springs sales-tax collections
• New car registration statistics

Please give us a call, if you would like us to forward a complete copy of this report. It will help you analyze our market and make good decisions about your home-buying and/or selling decisions.

ATTENTION !!! HOME BUYERS TAX CREDIT WILL EXPIRE ON APRIL 30, 2010

We urge you to take advantage of the Federal Tax Credit to Home-Buyers and BUY NOW !!!. This valuable tax-credit is a gift to you from Uncle Sam and may not be extended. If you would like to take advantage of this tax-credit, you must be under contract by April 30, 2010 and must close by June 30, 2010.

COLORADO SPRINGS CONSUMERS HAVE DECIDED TO START BUYING AGAIN

This past Wednesday, the city reported that city-sales-tax revenues in January, 2010 were 6.8% higher than in January 2009. While this gain was down 6.9% from the beginning of the Recession in January, 2005, it was still the largest percentage gain in two years. This is a good indication that local consumers are tired of waiting for someone to announce that the recession is over and they have decided that it’s time to start buying again. As the man said, “I heard there was a recession, but, I decided not to participate”.  It’s great news !!!

SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”

Salzman real estate Services can now provide clients with a 15% discount on all painting and decorating products, through the Sherwin Williams “Neighborhood Preferred Customer Program”. As a member of this money-saving program, we can now offer these discounts to our clients in every

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 37 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.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

EXISTING HOME SALES SURGE IN MOST STATES IN FOURTH QUARTER

The National Association of Realtors has just published the report on the median sales prices of single-family homes for the fourth quarter, ending December 31, 2009. The report includes statistics from the 151 largest metropolitan markets. Here are some of the highlights:

• Sales were up 27.2% in the last quarter of 2009, compared to the same period in 2008.
• That represents an increase of 13.9% in the number of sales over the previous quarter.
• Prices rose in 67 of the 151 markets covered, while prices dropped in the other 84
• The national median price of existing single-family home sales for the quarter fell to $171,900 (4.1%), representing the smallest decline in over 2 years.
• The surge in home sales was driven by two factors: The Federal Home Buyers tax credit and the record-low mortgage interest rates.
• Comparing the fourth quarter of 2009 with the fourth quarter of 2008, Colorado Springs showed a 1.5% increase in the median sales price of single-family homes.

These figures show an encouraging growth for the nation and for our local market.

HIGHER RATES AND INFLATION ARE BOTH ON THE HORIZON

Last week, Ben Bernanke, Chairman of the Federal Reserve, warned that the Fed will likely raise its rates to banks “at some point”. Based upon current market fragility and the history of past Fed actions, the increase will probably not take place immediately, but will probably take place in the second half of the year.

The Fed plans to end a $1.25 trillion mortgage-bond-purchase program that has helped keep mortgage interest rates near a record-low 5%. The Mortgage Bankers Association, an industry trade group, predicts the end of the Fed mortgage-bond-purchase program could push rates up by roughly 0.5%. For a $300,000 fixed-rate mortgage, that would increase the monthly payment by $125.

Coupled with this Fed-activated increase in the cost of mortgages will be the inevitable increases in the cost of everything that will result from inflation. The currently-proposed budget will definitely trigger some inflation and, if the proposed health-care and cap-and-trade bills, etc. are passed, the looming inflation will increase even more.

The good news is that you can now buy your home at an attractive price and at an excellent mortgage-interest rate. Furthermore, when inflation kicks in, the home you buy today will increase in value. The bad news is that, if you don’t act decisively now, the home you buy next year will have a higher price tag and a higher interest rate. Call me.  

COLORADO SPRINGS COST-OF-LIVING IS BELOW NATIONAL AVERAGE

According to the data released this week by the Council for Community and Economic Research, 2009 living costs in the Colorado Springs area dropped to the lowest level in 19 years. The survey, which studies 322 national metropolitan areas, shows our local cost-of-living in 2009 was 7.2% below the national average …the lowest level for any full year since 1990. From the workers’ perspective, this good news is balanced out by the fact that our average wages are 8% to 10% below the national average, so our lower cost of living does not necessarily result in a higher standard-of-living, but, from the perspective of outside companies looking to reduce their expenses, the lower costs of doing business in Colorado Springs could be a significant benefit to their bottom line. Considering the skyrocketing business-tax rates in many other parts of the country, our area looks better and better as the place to relocate businesses.  

SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”

Salzman real estate Services can now provide clients with a 15% discount on all painting and decorating products, through the Sherwin Williams “Neighborhood Preferred Customer Program”. As a member of this money-saving program, we can now offer these discounts to our clients in every part of the country, whether they are buying or selling their home. Please contact us for the details of this helpful service.

REALTOR MAGAZINE LISTS 4 REASONS TO SELL NOW

Selling a property in this tough market can seem like a challenge, but Realtor® Magazine lists 4 factors that make this a good time to sell.

• Sell low and Buy low. Because all property values are down, the loss on the property a home owner sells is really a paper loss, because the next property he buys will also be a bargain. If he buys smartly, when prices come back in a few years, he’ll be in better shape.
• Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
• Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.

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 37 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.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

In honor of Mardi Gras, the following check list will help you determine whether you are really a Louisiana native:

...When out of town, you stop and ask someone where there is a drive-thru daiquiri place, and they look at you like you have three heads. ... Every so often, you have waterfront property. ...You learned to drive a boat before you could drive a car. ... You can name all of your 3rd cousins. ...You can plan your wedding around hunting season & LSU football. ...Your burial plot is six feet over rather than six feet under. ...You're not afraid when someone wants to "ax you something". ...You don't worry when you see ships riding higher in the river than the top of your house. ...The smell of a crawfish boil turns you on more than HBO. ... You assume everyone has mosquito swarms in their backyard. ...You like your rice and politics dirty. ...You pronounce the largest city in the state as "Newawlins". ...You know those big roaches can fly, but you're able to sleep at night anyway. ...You can't think of anybody that can cook better than your momma. ...Your last name isn't pronounced the way it's spelled.

HARRY’S COLUMN

HOW DOES THE LOCAL real estate MARKET LOOK ?? --- VERY ENCOURAGING !!

The January, 2010 Sales and Listing statistics for the Colorado Springs area were just released and they look very encouraging for the local real estate market and for the local economy. The month of January 2010 showed sales of 464 homes, which represents an increase of 12.3% over January of 2009. The median price of homes sold in January, 2010 was $178,290, an increase of 3.1% over 2009. This was the eighth straight monthly gain in our local market. As a result, the inventory of available homes on our market went from 4925 in January of 2009, to 4120 in 2010, a reduction of 16.3%. All of these statistics indicate that the worst is behind us and our local market is improving.  

One of the factors that helped improve our local sales figures was the First-Time Home Buyers Tax credit of $8000, which was recently extended to April 30, 2010 and expanded to include a $6500 credit to existing homeowners.

When you look at the shrinking inventory of available homes (which will eventually result in higher prices), the excellent long-term mortgage interest rates which are now available (but, perhaps, not for long), plus, the looming inflation that will definitely follow the proposed increases in government spending, plus, the huge influx of new prospective Buyers and Renters now entering the market, the bottom line becomes ACT NOW.

As a prospective HomeBuyer or Investor, you cannot afford to be a Mugwump, (i.e. an indecisive bird who perches on the fence with his ‘mug’ on one side and his ’wump’ on the other.. ) This market will not stay this good for very long. Give me a call !!

THE PRICE OF HOMES IS GOING TO GO UP SOON …AND WE’RE NOT JUST CRYING, “WOLF”.

For the past year, we have been predicting an upcoming increase in the price of homes, caused by several factors. If you are a prospective HomeOwner or an Investor, keep in mind that the window on the great deals you can get in our current market is going to close in the latter part of this year…..probably in the third or fourth quarter. Just for the record, we would like to list some of the factors that we predict will result in this increase.

• Credit is about to tighten. The Wall Street Journal reports that the Chairman of the Federal Reserve, Ben Bernanke, is now in the process of laying out a blueprint for tightening credit. This will result in higher mortgage rates. We predict an increase of ½% in the third quarter of 2010 (Translated into pocketbook terms, that ½% increase will add about $100 per month to your monthly payments for a loan of $250,000.)
• Some banks are already beginning to tighten their loan standards for residential mortgages. According to WSJ, some 17% of banks said they were making mortgage approval standards tougher even for borrowers with high credit scores and well-documented credit histories.
• Inflation will begin to kick in during the latter part of this year and, if Congress passes even a portion of their proposed increases, (Health Care, Cap and Trade, etc.), inflation will force prices on everything to skyrocket. The Wall Street Journal, Feb.6, 2010, featured a cover article titled, “Protecting Yourself from the Giant New Deficit …How to Keep the Scary U.S. Debt From Eating Up Your Assets”. An excellent tool for protecting the value of your assets, according to the article, is to buy a home, or, trade-up from your existing home.
• The Federal process of creating “Mortgage Backed Securities” which are the foundation for funding Fannie Mae and Freddie Mac will expire on March 31, 2010 and will be replaced by a new process which will increase the cost of capital in financial markets.   
• The inventory of available homes is shrinking and, as supply goes down, prices will go up.

INVESTORS, TAKE NOTE.    AS HOME OWNERSHIP GOES DOWN, RENTALS GO UP

On February 2, 2010, the Commerce Department reported that, at the end of 2009, only 67.3% of all Americans owned their own homes. That number was the lowest since the second quarter of 2000. (The all-time highest rate of ownership was 69% in 2004, when liberal credit underwriting standards were bringing large numbers of traditionally-renting families into personal ownership).

These recently-displaced families are some of the almost-4-million Americans who have lost their homes through foreclosure or short-sales. Just because they have recently lost their homes, they have not just dropped off the edge of the earth. Rather, they have become the “New Renters”, a class of families which features a different ‘renters profile’ then we have seen in the past. These “New Renters” have demonstrated a respect for their personal property and a willingness to maintain the quality of their residences. In many cases, they even have a history of making their monthly payments on time.

If you are an Investor, these “New Renters” represent a great opportunity to purchase rental property. Please give me a  call to discuss this new opportunity in more detail.

WHAT DO BUYERS WANT ??

The February issue of REALTOR® Magazine contained a list of the things that today’s Buyers are looking for as they consider purchasing a new home. This list is the result of a survey of home Designers and Builders and should be very helpful to homeowners who are considering any remodeling projects. It allows you to spend your remodeling money where it will be most likely to show a good return on your investment, when you sell your home:

1. Large kitchens and islands
2. Energy efficiency, including energy-efficient appliances, super insulation and high-efficiency windows
3. Home offices
4. Main-floor master suites
5. Outdoor living space
6. Ceiling fans
7. Soaking tubs in the master suite and/or an oversized shower with a seating area
8. Stone and brick exteriors, rather than stucco or vinyl
9. Community walking paths and playgrounds

  10.  Two-car garages, but three-car garages are even more desirable

Now, get busy !!!

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 37 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.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

In honor of the Super Bowl, Here is the story of the Cajun in Hell

A Cajun who died went to hell. The devil assigned him the usual punishment....put him in the mass pit where the heat was melting others. The devil came back sometime later surprised to find the Cajun just sitting around, not even misting, much less sweating. "How come you're not so much as sweating here where everyone else is screaming for relief from the heat?"

The Cajun laughed and said, "Man, I was raised in the bayous of Sout Looziana. Dis ain't nothin' but May in Morgan City to me!"

The devil decided to really put the Cajun through it. He put him in a sealed off cave in the pit with open blazes and four extra furnaces blasting. When he came back, days later, the Cajun was sitting pretty, had barely begun to bead up with sweat. The devil was outraged.
"How is this possible? You should be melted to a shrieking puddle in these conditions!."

The Cajun laughed even harder than before."Hey, man! I done tole you. I was raised in Sout Looziana. You tink dis is heat?! Dis ain't nothin' but August in Cow Island !"

So the devil thought, 'Alright, a little reverse ought to do the trick.' He put the Cajun into a corner of hell where no heat ever reached. It was freezing and to add to the Cajun's misery, he added massive icebergs and blasting frozen air. When he returned, the Cajun was shivering, ice hung from every part of him but he was grinning like it was Christmas.

Exasperated, the devil asked "HOW? How is it possible?!You're impervious to heat and here you sit in conditions you can't be used to...freezing cold and yet you're happier than if you were in heaven. WHY?!"

The Cajun kept grinning and said, "Hey, man! Since dis is Hell, it must mean de Saints won da Super Bowl?"

HARRY’S COLUMN

BUYING OR SELLING ?  LOOK FOR THE AGENT WHO CAN OFFER INCENTIVES

In today’s economy, most consumers are looking for “deals”. As a result, smart businesses are offering incentives to their customers. Restaurants are offering “$20 dinner for two” deals. Grocery stores are featuring their own discounted brands. Smart consumers are taking advantage of these offers.

As for incentives in the housing market, some builders are now offering lower-cost, smaller houses to retirees. One builder stated, “The 1200 square foot house used to be built only on an odd lot where we could build little else. Now, it could be more of a mainstream product”. Other builder incentives feature such things as bargain-basement prices on upscale cabinets and spas. These ‘extras’ often make the difference between making or losing a sale.

If real estate Buyers and Sellers want to cash in on this trend, they should look for a Real Estate agent who offers the kind of incentives that will enable them to buy or sell their homes more efficiently and more profitably. For Sellers, this means an agent who can make potential Buyers feel more comfortable with their decision to purchase …for example, our Interstate Job Loss Protection Program reassures the Buyer that, if he loses his job, his mortgage payments (up to $1800 a month), will be made for up to 6 months, while he is looking for another job. Another example of an incentive that works for both Buyers and Sellers is our CyberHomes Complete Market Analysis of a property. This program enables both parties to get a realistic analysis of the home’s true market value.

But, perhaps even more important in today’s tight market, we offer a very effective package of valuable incentives to our clients who are in the process of buying or selling a home. As long-time specialists in relocation, we have developed close, working relationships with local lenders, banks, service providers, mortgage brokers, moving companies, staging companies, remodeling companies, etc. Furthermore, because we are affiliated with a network of relocation specialists in all parts of the country, we can offer assistance with these services to our clients nationwide. In addition, we can assist with arranging for temporary housing, trailing spouse re-employment, auto rentals and purchasing, discounts on furniture, information about the various neighborhoods and school districts and a variety of other specialized services that are extremely helpful to our clients as they go through the confusing process of relocating their families.

Putting a “For Sale” sign in your front yard is easy. Getting the best price possible for a Buyer or a Seller is the goal of any real estate agent who is worth his salt…. but using incentives to generate an additional $10,000 in our client’s pocket is our goal. Give us a call.

BUSINESS WEEK HIGHLIGHTS BLACK FOREST

On January 30, 2010, Business Week published a list of the fastest-growing cities in every state in the U.S. This year, they selected Black Forest as the fastest-growing “city” in Colorado. Here are some of the facts that led them to this decision:

Number of households – 13,072 (This represents an increase of 106% since 2000 and an increase of 6% since 2009

Average household income - $107,436 (This represents an increase of 13% since 2000)

Yes, yes, we know that Black Forest is not a city, but rather, it’s an area within the city of Colorado Springs, and Business Week’s accompanying explanation covers that fact, but the point is that Black Forest has shown a tremendous growth, in spite of the troubled economy.

There are some very attractive listings in the Black Forest and we would be happy to show them to you. Give us a call.

GOOD NEWS..BAD NEWS.  IT’S A BALANCING ACT

On January 31, 2010, the Gazette reported that our local economy has seen the bottom of the recession. Four of the local monthly economic indicators for December, 2009 show good news but four other indicators show that we have still not reached full recovery.

            The Good News:

                         Initial claims for unemployment are down 19.9%

                        Single-family home permits are up 104.7%

                        New auto and truck registrations are up 20.4%

                        Taxable retail sales are up 2.5%

             The Bad News:

                         Wage and salary jobs are down 3.7%

                        Unemployment rate is up to 7.9% (but that’s better than the national rate of 10%)

                        Hotel occupancy rate is down 33.6%

                        Foreclosure filings are up 32.4%

The article points out that, although the indicators all look promising, full recovery might take a couple of years. In the meantime, there are some terrific deals available in our local real estate market.

HAVE YOU LISTENED TO MY LATEST PODCAST?

Every month, we are interviewed about local and national trends in real estate, topics of interest in our city, the latest news about tax credits, FHA rule changes, current sales and listing statistics, the status of our local market as it compares with the national picture, and a variety of topics that you might find helpful in planning your next Real Estate investment. To hear my most recent interview, just click on the podcast link at the top of this email.

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 37 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.

And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

There has been a lot of speculation recently about the direction our country is taking. In order to illustrate the various terms used to explain our options, we offer the following examples:

SOCIALISM: You have two cows. The state takes one and gives it to someone else.
COMMUNISM: You have two cows. The State takes both of them and gives you the milk.
FASCISM: You have two cows. The State takes both of them and sells you the milk.
MILITARY DICTATORSHIP: You have two cows. The State takes both of them and shoots you.
BUREAUCRACY: You have two cows. The state takes both of them, accidentally kills one and spills the milk in the sewer.
CAPITALISM: You have two cows. You sell one and buy a bull.
PURE DEMOCRACY: You have two cows. Your neighbors decide who gets the milk. REPRESENTATIVE DEMOCRACY: You have two cows. Your neighbors pick someone to decide who gets the milk.

AMERICAN DEMOCRACY: The government promises to give you two cows if you vote for it. After the election, the president is impeached for speculating in cow futures. The press dubs the affair "Cowgate".

ANARCHY: You have two cows. Either you sell the milk at a fair price or your neighbors kill you and take the cows.