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January 14, 2013

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

A NEW YEAR…SOME PREDICTIONS…AND SOME CHANGES

I’d like to share some of my predictions for this new year…something I’ve liked to do over my forty, yes, FORTY, years in the Pikes Peak real estate arena.  My forecast, after researching various industry publications is this:

• Current low mortgage interest rates will continue to attract homebuyers
• Credit worthiness as defined by lenders will be on the conservative side for borrowers
• December’s Median and Average Home prices are unbelievable—up an average of 14% in one month—this is an exciting trend that is likely to continue

So, in essence….if you are thinking of buying a home, either for yourself or for investment purposes, you might want to push up your timetable a bit…especially when you read further on about the changes in lending rules that will soon be in effect.

As for changes, here’s a surprise for you, my readers.  After publishing this eNewsletter on a weekly basis for many years, I’ve decided to give you a break in reading and I will now publish and email it to you on a bi-weekly basis.  There are several reasons for this, but mostly, with the market on the upswing, I find myself very busy helping and advising you, my clients, and feel that my time is best spent doing more of that.  Some issues might be longer than others because of this change and I will continue to provide you with whatever real estate news that I feel might have an impact on your home ownership decisions.  As always, I am available every day to provide you with my personal brand of customer service and can be reached at 598.3200 or 800.677.MOVE or emailed to Harry@Harry Salzman.com.

On that note, I wish to take a minute to thank you for all the listings, sales and additional success I’ve achieved in 2012.  I have reached my goals through your continued support and referrals and I thank you again for allowing me to assist you in achieving your own personal home ownership goals---buying, selling or investing.  As I like to say around here—it’s given me a real Rocky Mountain High to be your personal Realtor and I look forward to much more of the same in 2013 and beyond.

HOME LENDERS TO SEE SWEEPING CHANGES TO MORTGAGE RULES

RealtorMag 1.11.13

As mentioned earlier, within the next year, homebuyers are going to see numerous changes when it comes to home financing.  Last Thursday, the Consumer Financial Protection Bureau unveiled new mortgage rules and all companies that issue mortgages will be required to follow the new guidelines in order to receive protection from lawsuits filed by buyers of mortgage-backed bonds or troubled borrowers.  Interest-only mortgages and loans on which the principal balance rises over time, as well as a few others, will be excluded from these rules.  Loans that meet the agency’s new lending criteria will now be called a “qualified mortgage” and will consist of the following:

• Lenders must prove that income and assets are sufficient to repay the loan (this applies to jumbo loans as well)
• Borrowers must be able to document their jobs
• Credit scores will have to meet a minimum standard
• Borrowers will have to be able to show that they can still afford other debts associated with the home, such as home equity loans as well as property taxes
• Lenders will consider borrower’s other debts before issuing a mortgage too, such as student loans, car loans, and credit card debt
• Monthly payments must be affordable to the borrower

All of the rules have not been spelled out in full yet, but by the time this takes effect in a year one thing is for certain—it’s going to be much harder to get financing—especially for first time borrowers or those with borderline criteria.  And you can certainly expect closing costs to rise along with all of this. Whatever it costs the lenders to implement these rules will surely be passed on to borrowers, as always.

Bottom Line---again—if you are looking to buy, sell or invest—this is the year to do it.   And as always—I’m here to advise and help in any way I can.  Just give me a call at 598.3200 and let’s discuss your options before they go away.

PRICES CONTINUE TO RISE WITH HOUSING RECOVERY

Most every article I’ve recently read has been very optimistic about the housing “recovery” and it’s effect on the economy in general, including the job market.  Housing prices continue to rise and that’s great news for those who might have been affected by the downturn in the market, but it’s not so great for those who have put off buying in hopes that prices might go lower still. 

I’ve been telling you for some time to expect this and now the time has come.  With rising prices, low inventories, new regulations on our doorstep and at the moment still low interest rates….it’s now or never for some folks.  If you are one of those…there’s still time…but the clock is ticking and you don’t have long.  Or you do, but it will cost you more in sales price and possibly mortgage rates to do so. Call me today and find out how we can make your home ownership goals a reality.

PERSONAL HOUSING NEEDS CHANGE OVER TIME

If you are like many of my clients, your home ownership needs change over the years.  With your first home purchase you are likely to need less in a home that you do when you start a family and later in life you may again want to downsize when you have an “empty nest”.  There are many reasons why folks sell their present home and look for another.  It could be that a two story home is no longer practical for health reasons or you just want to downsize because you are spending more time traveling and less time at home. 

Or, you might want to move into a larger home because you are now caring for a parent or other family member or your kids need more room.  Whatever the reason, moving into a different home often is something you need to consider and along with it, the costs and considerations involved.  I’ve moved many of you into multiple homes over the years and if you are in need of another change, for whatever the reason, I’m here to help in any way I can.

 NO JOKE OF THE WEEK THIS WEEK…IN MEMORY OF JIM KRACK WHO STARTED THE “JOKE OF THE WEEK”

It is with a very sad and heavy heart that I write about the passing of Jim Krack this past week.  Jim was the editor of our eNewsletter practically from its inception until his untimely illness in June of this year and it was he who started publishing the “Joke of the Week” that our readers like so much.  But more than just an editor, Jim was my special friend. 

We first met in the 1970’s when we both worked out at Lynmar Tennis and Racquetball Club on Vickers Drive.  We were there 4-5 days a week and our friendship began in the locker room where we talked as we got ready to go to about our day.  In those days, he and his wife, Donna, owned the Sunrise Kennel, which they later sold but never gave up their love of animals.

In fact, their love of animals was the reason I sold their 5-acre home in Black Forest—it wasn’t large enough for all their pets.  They implemented my suggestions to sell that house and recent life has been on 40 plus acres for Jim, Donna and lots and lots of animals. 

Jim worked as Executive Director for a non-profit pet organization for over 20 years and communication with potential kennel owners was his specialty.  There wasn’t anyone who met Jim that didn’t like him.

I was thrilled when Jim decided to become the editor of my eNewsletter.  Our weekly meetings to discuss current real estate, as well as “personal”, news, was something I looked forward to and Jim always found a way to make me laugh. 

I miss these meetings and I miss Jim.  Mondays just aren’t the same without him.

FEATURED LISTING

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

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

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January 28, 2013

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

relocation IS ON THE UPSWING WITH THE MARKET UPTURN

I’ve been quite busy lately…not only with my local clients, but also helping a number of new folks relocate from their present locales to new places all over the globe.  One is leaving France for Fort Lauderdale; another from Jacksonville, FL to Scottsdale while another is going from Chicago to Detroit.  These folks represent just a small portion of those that I helped in their relocation process during the past week.   And how do I do this you may wonder?  Well, as a long time member of the Relocation Directors Council I have made contacts with Realtors all over the country….and the world…and because of that I am able to be assured that those who are relocating somewhere other than the Colorado Springs area will receive the same brand of personal service that I provide to my clients. 

If you or anyone you know is considering a move anywhere….please give me a call and I will make certain that you are in capable hands wherever the move might be.  I can be reached at 719.598.3200 or emailed at Harry@HarrySalzman.com.

As an aside, as I speak with Realtors all around the country I’ve found that while a lot of the USA is just starting their housing turnaround….we in the Colorado Springs area are way ahead.  Part of that is because we never fell quite as low as many areas, but in any event, our recovery is proceeding well above the US norm I’m happy to report.

FOURTH QUARTER 2012 WAS VERY ACTIVE AND INDICATORS ARE ENCOURAGING

Data provided by the Pikes Peak Realtor Services Corp, from Pikes Peak MLS

Where you are a current home owner and curious about the current value of your home or someone who is thinking about buying….Hear Ye!  Hear Ye!

Here are the just published local real estate statistics for homes in the Pikes Peak Area.

Things are continuing to look up in the local real estate market.  In a nutshell:

New Listings                            +6.4%,

Sold Listings                            +10.4%,

Median Sales  Price                +11.1%.

Average Sales Price               +8.9%

% of Sold to List Price              +.5%

Days on Market                      -17.9%

Active Listings                         -6.1%

Months Supply                        -13.5%

For a complete overview of the entire 2012 year quarter to quarter, please click here.

You will be happy to see where you are today as compared to a year ago.  I’ve been telling you all year that this was going to happen and here with real market worthiness.  If you already own a home, this should bring a smile to your face.  On the other hand, if you have been thinking about buying your first home or trading up to your next home, market conditions represented in this report will justify that now is the time to buy a home.

Along with all this general information, also included are statistics for each individual area of  the Pikes Peak region.  Now you can compare different areas in our community to any other, if you desire, or simply satisfy your curiosity as to how your specific area is doing.

HERE ARE SOME 4th QTR. YEAR OVER YEAR STATISTICS FOR THE PIKES PEAK AREA*

                                                Median Sales Price               Average Sales Price

Black Forest:                         +16.7%                                    +19.1%

Briargate:                               +11.4%                                     +7.1%

Central:                                  +10.8%                                     +3.6%

Divide:                                    +61.4%                                    +46.1%

East:                                      +14.3%                                    +19.7%

Falcon North:                         +9.1%                                      +4.5%

Florissant:                             +14.0%                                     -2.8%

Fountain Valley:                     +4.7%                                      +7.4%

Manitou Springs:                  +38.9%                                    +23.0%

Marksheffel:                            +2.4%                                       -4.5%

Northeast:                                +4.3%                                      +5.7%

Northgate:                               +5.9%                                      +2.0%

Northwest:                                -1.8%                                       -5.1%

Old Colo.City:                         +3.4%                                       +7.3%

Powers:                                   +12.3%                                    +12.2%

Southeast:                                 -0.9%                                       -0.7%

Southwest:                               +6.4%                                       +2.2%

Tri-Lakes:                                 +8.8%                                       +2.9%

West:                                      +25.4%                                      +5.4%

Woodland Pk:                          +6.5%                                    +14.9%

*Statistics from the Pikes Peak MLS, provided by the Colorado Assoc. of REALTORS.

As you can see, things are starting to move rather quickly and the housing recovery in our area is already on its way.  To see the complete breakdown on any area listed, click here.  As always, I am here to answer any questions you may have about these reports or any real estate concerns you may have.

And, as I mentioned earlier, if you’re in the market for a new home, NOW is the time.  With a very limited inventory and percent of days on the market quickly going down, I’m finding multiple buyers for homes I have listed in record times.  To be certain you can get exactly what you are looking for at a price that fits your budget, call me today at 719.598.3200 and let’s start talking. 

A NOTE TO STRUGGLING HOME OWNERS

As reported in last week’s Wall Street Journal, US Banks are going to have to do more to help struggling mortgage borrowers keep their homes under final rules released last week by the Consumer Financial Protection Bureau. 

If you or anyone you know is having a problem with keeping your mortgage current, be sure to contact your service provider and find out what type of relief can be provided. 

ALL SIGNS POINT TO HOME PRICE SURGES—HOME SALES ROSE TO 5 YEAR HIGH IN ‘12

There’s good news in most all real estate and general publications I’ve read lately concerning the housing recovery and home prices being on the rise.  In fact, USA Today headlined that “Housing set to give economy a boost in ‘13”  and went on to quote Moody’s Analytics chief economist, Mark Zandi as saying that he “expects housing to contribute a fifth of the economy’s growth this year, while in 2009 it subtracted more than 1 percentage point from the GDP growth”.

While several publications reported a dip in home sales in December, they were not referring to the Colorado Springs market in which homes sales increased 7.8% over the same month a year earlier.  In fact, according to the report by Pikes Peak Association of Realtors,  Colorado Springs area homes sales totaled 9,146 in 2012—the most since 2007. 

WITH RISING PRICES, INVENTORIES FALLING

As I mentioned earlier, along with the good new of rising prices comes the reality of low inventories and fast turnaround times with multiple offers. 

The lower inventories can be attributed to several factors including home owners being hesitant to sell if they are not in a position to make a profit or if they don’t have enough equity to trade up.  Another factor is that investors are continuing to snatch up properties.  In the past, they may have fixed up the home for resale, but now many are choosing to hold on to and rent them instead.  And, while home building is up, it still has not rebounded as quickly as hoped.

This should come as no surprise to most of you as I’ve been telling you for some time to expect this and now the time has come.  With rising prices, low inventories, new regulations on our doorstep and at the moment still low interest rates….it’s now or never for some folks.  If you are one of those…there’s still time…but the clock is ticking and you don’t have long.  Or you do, but it will cost you more in sales price and possibly mortgage rates to do so. Call me today at 719.598.3200 and find out how we can make your home ownership goals a reality.

AND FINALLY…..A HONOR FOR ME AND A THANK YOU TO YOU

Once again in 2012  I was honored to be selected to the Peak Producers Club as one of the Pikes Peak Top 10% of real estate Agents.  This is something I owe to all of you, my friends and clients, whom it has been my pleasure to serve as your Real Estate Broker.  The long time relationships I share with so many of you make it such a pleasure for me to work with you and obviously make is easier for me to know just what your individual needs and wants might be. 

If any of you, or any of your relatives, co-workers or friends are looking to buy, sell, or invest in real estate, I’d be honored to help make these dreams a reality.  Please call me at 719.598.3200 with any of your needs or refer me via phone or email at Harry@HarrySalzman.com.     

JOKE OF THE WEEK

A Little Christian Humor (from a “nice Jewish guy”)

Jesus and Satan were having an on-going argument about who was better on the computer.  They had been going at it for days, and frankly God was tired of hearing all the bickering.  Finally fed up, God said, 'THAT'S IT!  I have had enough. I am going to set up a test that will run for two hours, and from those results, I will judge who does the better job. So Satan and Jesus sat down at the keyboards and typed away.

They moused.

They faxed.

They e-mailed.

They e-mailed with attachments..

They downloaded.

They did spreadsheets.

They wrote reports.

They created labels and cards.

They created charts and graphs.

They did some genealogy reports.

They did every job known to man.

Jesus worked with heavenly efficiency and Satan was faster than hell.

Then, ten minutes before their time was up, lightning suddenly flashed across the sky, thunder rolled, rain poured, and, of course, the power went off.

Satan stared at his blank screen and screamed every curse word known in the underworld.

Jesus just sighed.

Finally, the electricity came back on, and each of them restarted their computers.  Satan started searching frantically, screaming: 'It's gone!  It's all GONE!  'I lost everything when the power went out!' 

Meanwhile, Jesus quietly started printing out all of his files from the past two hours of work.

Satan observed this and became irate.

'Wait!' he screamed.  That's not fair!  He cheated!  How come he has all his work and I don't have any?  'God just shrugged and said,

“JESUS SAVES “

FEATURED LISTING

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

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