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HARRY'S BI-WEEKLY UPDATE 2.21.17

by Harry Salzman

                                                            

February 21, 2017

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.

LOCAL real estate NUMBERS REMAIN EXTREMELY POSITIVE

I am happy to report that things have NOT slowed down and the local real estate market—as well as that nationally—continues it’s rapid pace.

As I’ve mentioned in the past few months, this is definitely a Seller’s Market and will likely remain so until the number of active listings increase.  This is especially true in the below $300,000 range where I’ve been seeing multiple offers on most properties—and many OVER the asking price. 

While interest rates have gone up slightly but not yet significantly—that, and the increased equity most folks are seeing in their present homes—are driving this current market.  The Federal Reserve is talking about raising rates at their March meeting due to the improved economy nationwide, so that’s another reason folks are pressing on at present.

If you’ve been waiting for a sign—well here it is.  NOW is the time to make your move.  Home prices are continuing their upward climb and interest rates may soon be joining them.  While a new home may cost you more than it might have a year ago, the value of your present home has most likely also increased.  The biggest determination for most folks is the monthly mortgage payment and the lower the interest rate, the lower the monthly payment.  Even a nominal fluctuation can mean a higher monthly cost, so if you’re seeking an historically low interest rate I wouldn’t suggest waiting much longer. 

Along that same note, when you decide to start your search for any type of real estate—either as a primary, secondary or investment property—it’s imperative to get pre-approved by your lender and know beforehand exactly what you want, need and can afford.

I find that the best-written offer is often the one that my clients want to accept and that’s where my almost 45 years in the local real estate arena becomes a boon for you.  My investment banking background, along with my many years of experience, allows me to write a contract that has an excellent chance of being accepted. 

In today’s market of multiple offers and quick acceptance, it’s especially crucial to put your best foot forward so to speak.  I do that and more.  My sellers can wade through multiple offers and discover why some are much better than others depending on the timing, financing, and other factors due to my extensive experience. This is just part of my special brand of customer service.

My advice?  I’ll say it again.  If you’ve even considered wading into the real estate market as either a buyer, seller or both—now’s the time to jump in with both feet.  Many folks don’t know the current market value (CMA) of their home so aren’t aware of the avenues open to them in today’s market. 

So if you’ve got the questions, I’ve got the answers.  Just give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how you can best make all this positivity work for you.

 

JANUARY 2017 LOCAL MARKET UPDATE AND MONTHLY INDICATORS PROVIDE RESULTS IN GREATER DETAIL

Pikes Peak REALTORS® Services Corp.,

In the recently published January 2017 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were down 15.4% for the single-family/patio homes and up 21.4% for condo/townhomes.  

The median sales price increase year-over-year in all properties was up 9.3%, which is a good sign that the housing market is continuing to appreciate.  If there were more listings, more people would be moving—either selling to trade up or buying for the first time.

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

  • Sold Listings for All Properties was up 11.6%
  • Median Sales Price for All Properties was up 9.3%
  • Active Listings on All Properties was down 33.4%.

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. These reports provide greater detail than the monthly “PPAR Monthly Statistics” that I share in the first eNewletter of each month.

While the spring buying season hasn’t yet begun, you can see why now is a great time to list your home.  The only drawback, as I’ve mentioned time and again, is that you need to have an idea of where you want to go because your home will likely sell much quicker than it might have in the recent past.

If you have any questions about either of these reports just give me a holler.  

 

**HERE IS MORE TERRIFIC NEWS ABOUT OUR housing market**

COLORADO SPRINGS MEDIAN HOME PRICES RISE CONSIDERABLY MORE THAN U.S. AVERAGE DURING 4TH QUARTER 2016

NAR 2.17

In the 4th Quarter 2016, metro home appreciation picked up speed, prompting the majority of metro areas to soar to new record highs with some home prices, according to the latest survey results of the top 178 metropolitan statistical areas (MSAs) by the National Association of Realtors®.

Colorado Springs showed a median sales growth quarter-over-quarter of 8.5%, which was 49% greater than the U.S. average of 5.7% for those surveyed.  This is such good news for us and is indicative of the increased job market and continued consumer confidence locally. 

“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs edging the job market closer to full employment,” says Lawrence Yun, NAR’s chief economist.  “At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.”

Nationwide, a boost in home prices and mortgage rates at the end of the year slightly weakened affordability, compared to a year ago.  That came despite a solid uptick in the national family median income. 

According to Yun, “Even a pick-up in wage growth may be insufficient to compensate the impact of higher mortgage rates and home prices and increased homebuilding will be crucial to alleviate supply shortages and stave off the affordability hit.”

Fortunately, our local numbers are still great and our new homebuilding starts are at a 10-year high.  I might add that if a “new” home is what you are seeking, I would be very happy to show you what we have available in the Pikes Peak area.  It doesn’t cost you anything to have a professional like myself available to take you around to various homebuilders and we know the “essential” questions you might need answered if this is something you are considering. 

To view the entire 4th Quarter Survey of all 178 MSAs, please click here.  You might find it interesting to check out other cities where you have family or where you have lived in the past to see just how terrific our growth really is.  And…if you are currently considering a move here, this will help you see just how great an idea that will prove to be.

 

SOMETHING TO CONSIDER…THE REAL COST OF RENTING V. BUYING

Keeping Current Matters, 2.17.17

I am asked almost daily about the “value” of owning a home v. renting. While there are many factors at play in both situations, I’ve come to learn that what’s obvious to me can be totally foreign to someone else.  For that reason, I like to provide as much information in that area as I can. 

This Infographic provides some current data:

Some Highlights:

  • Historically, the choice between renting or buying a home has been a close decision.
  • Looking at the percentage of income needed to rent a median-priced home today (30%), vs. the percentage needed to buy a median-priced home (15%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you could use your housing costs to own a home of your own!

I’d also add that there are many reasons why some folks need to rent at any given time in their lives.  That’s why I have so many clients who have been buying one or more investment homes to rent.  If you have considered becoming a landlord by adding real estate to your investment portfolio, please give your financial and/or tax advisor a call and then call me.  I can share the ins and outs of being a landlord as this is something I’ve done for years.  And if this is something that’s right for you—I can lead you in the right direction to find an investment property.

 

HOME PRICE INSIGHTS REPORT

CoreLogic 2.7.17

I thought you might find this report from CoreLogic entitled Home Price Insights Report from December 2016 very interesting. The highlights include:

  • Home prices nationally increased 7.2% year-over-year
  • CoreLogic projects an increase of 4.7% year-over-year in 2017
  • Colorado was one of 15 states and the District of Columbia that reached new highs in home appreciation in 2016

You can read the report in its entirely by clicking here.  

 

ANOTHER FEATHER IN OUR CAP…SPRINGS COST OF LIVING IS LOWEST IN 5 YEARS

The Gazette, 2.10.17

In 2016, the cost of living in Colorado Springs was just 94% of the U.S. average, according to an annual survey by the Council for Community and Economic Research. This was down from 95.3 percent in 2015 and the lowest since costs in the Springs were 92.5 percent of the national average in 2011.

Local housing costs were 97 percent of the national average last year compared with 99.4 percent of the average the previous year.  Utility costs here were 72.5 percent of the national average in 2016, down from 84.3 percent of the average in 2015.  The index measuring miscellaneous goods and services also fell, while components measuring groceries, transportation and health care all were higher, but make up just 27.2 percent of the overall index.

Housing moved downward because the average local principal and interest payment fell 2.3 percent last year, while it remained unchanged nationwide.  Utilities in the Springs declined sharply because the average local home energy cost fell 9.1 percent, or nearly three times the 3.4 percent nationwide drop during 2016. 

Costs in Denver and Pueblo moved higher.  Denver costs were 110.4 percent of the national average in 2016, up from 109.6 in 2015 while Pueblo costs were 86.4 percent of the national average in 2016, up from 85.6 percent in 2015.

So, once again, another good reason to celebrate living in Colorado Springs.

 

I’M SPEAKING BEFORE THE COUNTY COMMISSIONERS ON THURSDAY

If you’re in town and want to hear me live and in person when I give my State of real estate in Colorado Springs Report to the El Paso County Commissioners, come on down on Thursday morning at 9:30 to 202 South Cascade.  It is an open meeting and I will be presenting an updated version of the material that I shared with you several weeks ago from my report to the Colorado Springs City Council.

 

HARRY’S THOUGHTS OF THE DAY

 

 

Happy Valentine's Day

by Harry Salzman

February 14, 2017

 

HARRY’S VALENTINE’S GREETING

As part of my Personal Service, it is my desire to wish all of you a very sweet

Valentine’s Day!

Home is Where the Heart is…

…and I am thrilled to be able to play such an important part in helping to give your heart a home.

 

HARRY'S BI-WEEKLY UPDATE 2.6.17

by Harry Salzman

February 6, 2017

 

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.

THE LOCAL housing market JUST KEEPS ON ESCALATING…IN SALES AND PRICES

Wow.  Let me say it once again...WOW. 

I’m just astounded at the pace of the local real estate market in terms of both sales and appreciation.  In my almost 45 years of selling real estate in the Pikes Peak area I’ve never seen anything like what we are now experiencing.  And this is January we are talking about—a normally slow time as folks gear up for the spring buying season.  I’m now convinced that conventional wisdom about the “best” time to buy and sell are no longer part of the equation.  In past years, researchers have found that in general, January and February were the top months for those looking to get a bargain. 

However, this year is gearing up to be different.  According to Jonathan Smoke, realtor.com’s chief economist, buyer demand has remained high throughout the fall and home prices did not take their usual dip this January.

I’ll give you a very recent example.  Last Monday afternoon I listed a home and within hours we had seven offers and stopped accepting them at 6 pm that same day.  Most were for over the asking price and with significant down payments.  The following morning the seller accepted one of the offers.  Yes, folks, this is becoming the “new normal” and I’ve been telling you this was going to happen for quite a while now.  It’s most definitely a “sellers market” and likely to remain so for some time. 

With interest rates on the rise but still historically low, many folks are finally realizing that if they want to take advantage—NOW is the time.  Waiting will only cost you.  Not only in interest rates, buy also in the price of the replacement home.  Yes, you will get more for your home, but the next one will also cost you more and that will directly affect your monthly payments. 

My suggestion?  If you’ve even considered selling to trade up or move to a new neighborhood, don’t delay.  And again—know in advance what your wants, needs and budget requirements are so that you can make an offer when you find “the one”.  There just isn’t an option of “let me think about it” any longer.  Loan pre-approval from your lender of choice is most definitely a requisite before making an offer.

I am available to help you in determining all of these things.  As many of you have experienced, when it comes to making an offer that will stand out and likely be accepted—I’m a pro at this.  Having someone like me on your team makes the entire home buying and selling experience one that will be as stress-free as possible.  Simply give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let me put my special brand of customer service to work for you.

Something else to consider in this rapidly escalating market—it’s important to know the approximate Current Market Value (CMA) of your present home or your rental properties.  With home values going up so quickly, it’s quite possible your Homeowners Insurance isn’t what it should be and might need to be increased.  Give me a call and I’ll be happy to give you a good idea of what your home is worth in today’s market.  Then give your insurance agent a call to make sure you’ve got the right amount of coverage based on the current value of your home.

January PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and we now have 30 consequent months of year-over-year increased local Residential real estate sales. 

Homes are selling at 99.3% of listing price with the average days on the market at 43.  This continues to be great news for both buyers and sellers, despite the fact that interest rates have started to rise.

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 6.9% and 21.5% respectively for year-over-year.

The Monthly Summary shows that compared to a year ago, total active listings are down 30.8% for Single Family/Patio Homes and 17.0% for Condo/Townhomes, continuing a downward trend that tends to favor sellers.  New listings are down 13.0% for Single Family/Patio Homes and up 38.6% for Condo/Townhomes.

For more details, please see the following article.

 

JANUARY 2017 WAS THE 30TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

Here are some highlights from the January 2017 PPAR report.  A look at the Median Sales Prices should put a big smile on many of your faces!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing January 2017 to January 2016 in PPAR:                      

                        Single Family/Patio Homes:

  • New Listings are 968, Down 13.0%
  • Number of Sales are 908 Up 6.9%
  • Average Sales Price is $298,774 Up 13.3%
  • Median Sales Price is $265,000 Up 11.8%
  • Total Active Listings are 1,331, Down 30.8%

                        Condo/Townhomes:

  • New Listings are 183, Up 38.6%
  • Number of Sales are 130, Up 21.5%
  • Average Sales Price is $198,784 Up 17.3%
  • Median Sales Price is $177,500 Up 8.6%
  • Total Active Listings are 122, Down 17.0%

 

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

                                                Median Sales Price             Median Sales Price

                                                  January 2017                          January 2016

Black Forest                            $470,000                              $468,000                      

Briargate                                  $389,900                              $341,500          

Central                                     $200,000                              $226,750

East                                          $229,000                              $186,000

Fountain Valley:                      $239,000                              $219,000

Manitou Springs:                    $368,000                              $284,000

Marksheffel:                            $302,500                             $258,750

Northeast:                               $251,000                              $223,000

Northgate:                               $443,686                              $419,202          

Northwest:                              $326,818                              $303,500           

Old Colorado City:                 $229,000                              $216,500

Powers:                                   $269,900                              $229,000

Southwest:                             $345,000                              $252,000

Tri-Lakes:                               $437,225                              $427,000

West:                                       $232,500                              $218,000

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

 

COLORADO SPRINGS IS ON A ROLL…

Our unemployment rate is the lowest since 2001.  

Homebuilding starts continue to rise, following their 10-year high in 2016. 

Foreclosures are the lowest they’ve been in 15 years.  

All of this is reflected in the fabulous health of our real estate market. 

I’d like to give a big shout-out to Mayor John Suthers, the City Council, the Convention and Visitors Bureau and the Chamber/EDC for an outstanding job of promoting our city and working together to achieve such stellar results.  Bravo to all.

 

MILLIONAIRE TO MILLENNIALS:  BUY A HOME

Keeping Current Matters, 1.5.17

In January, CNBC ran an article quoting self-made millionaire David Bach explaining that not purchasing a home is the “single biggest mistake millennials are making” because buying real estate is “an escalator to wealth”.

Bach added:

If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.  The average homeowner to this day is 38 times wealthier than a renter.”

In his bestselling book, “The Automatic Millionaire,” he does the math:

“As a renter, you can easily spend half a million dollars or more on rent over the years ($1500 a month for 30 years comes to $540,000) and in the end wind up just where you started—owning nothing.  Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning our own home free and clear!”

These ideas aren’t new—but millennials today are set to be the first generation that aren’t as well off as the previous generation and some of that has to do with homeownership.  My advice?  If you are the parent of a millennial and are able, do what you can to find a way to help in this area.  Lenders now allow down payments to come from family members and their lending requirements have changed for first-time home buyers to make it easier to obtain approval. 

If you have any questions about this or how to go about getting more information, please give me a call and I’ll do my best to help.

 

AND TO THOSE INTERESTED IN RENTAL PROPERTIES…

As you can see from the above articles, the time couldn’t be better to buy a home or two for investment purposes.  Rentals are just like any other home—they continue to escalate in value while providing the owners with increasing monthly income to help defray the cost of owning the home. 

And as I’ve said before, being a landlord is not for everyone.  However, in today’s market, if you’ve ever considered this option as an addition to your investment portfolio, maybe it’s time for us to visit and discuss whether or not it could work for you.  Give me a call at 598.3200 and let’s chat.

 

HARRY’S THOUGHTS OF THE DAY:  (I read several of these in high school and followed the advice personally prior to even getting into the real estate business!)

 

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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

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