Real Estate Information Archive

February 22, 2021

 

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.

 

 

IF YOU’VE EVEN CONSIDERED A MOVE…NOW IS THE TIME

As the infographic above indicates, mortgage rates are lower than they have been in years.  What it doesn’t show you is that rates reversed course this past week and the 30-year fixed-rate mortgage increased to its highest point since mid-November.  

This recent increase is due to the U.S. economy improving and supply chain shortages causing downstream inflation.  I can’t tell you what’s going to happen even next week, but Freddie Mac chief economist Sam Khater is predicting rates to remain in the low 3 percent range for the year.  

I can tell you that the price of lumber has increased 49% in three weeks to more than double what it was a year ago.  Cement, copper and aluminum are also on the rise.  These costs will be passed on to new construction homebuyers just as quickly, and will then trickle into resales as well.

If you’ve been following my eNewsletters for any length of time you are acutely aware that the Colorado Springs area is similar to the country in general when it comes to the shortage of existing homes for sale. As of yesterday, locally we have a total of 453 single-family homes for sale and a total of 81 others in the condo, patio home and townhome category —in all price categories.  Not an easy situation for potential buyers. 

This, of course is driving up home appreciation and is resulting in bidding wars and offers considerably over list price on most homes—sometimes just hours after a home comes on the market.

It certainly presents some difficulties—especially for first-time buyers.  However, it is just as taxing for those who want to sell and trade up.

Fortunately, you have me.  My almost 48 years in the local residential real estate arena, along with my investment banking background and negotiation expertise gives me an advantage over many other real estate professionals.  And today it is more important than ever to engage a seasoned, knowledgeable professional when are ready to even consider entering the home buying and selling market.

 

• Is this the right time for you?  
• What are your specific wants, needs and budget? 
• Do you want new construction or are you looking for an existing home?  
• Do you have a lender who can provide what you need for your specific financial situation?  

 

These questions and many more need to be answered prior to the start of a home search and I am more than qualified to help you in finding the right answers.  

What I can answer for you right now is this—if you’ve even considered a move, now is the time to begin.  If you currently own a home, it’s likely got more equity than you might imagine.  And even with the slight increase, mortgage interest rates are still historically low.  Therefore, even with the increased home price tags it’s possible your monthly output could be the same or not too much more than it is at present.

Of course, you can’t get any of those answers by simply reading this eNewsletter.  Please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s put our heads together and get started.  

If you are looking to sell and trade up, purchase new construction or an investment property, or a first-time buyer wanting a starter home, contacting me is the first step in making all your residential real estate dreams come true.

 

ALL U.S. METRO AREAS SAW HOME PRICES RISE DURING FOURTH QUARTER 2020

NAR, 2.11.21

Every metro area tracked by the National Association of Realtors (NAR) through the fourth quarter 2020 experienced home price growth from a year ago, according to the latest NAR quarterly report.

Eighty-eight percent (161 areas) of the metros followed by NAR saw double-digit growth.  For comparison, in the third quarter 2020 only 115 metro areas saw such growth.  

According to Lawrence Yun, chief economist for NAR, “The fourth quarter of 2020 presented circumstances ripe for home price increases.  Mortgage rates reached record lows, thereby driving up the demand.”

“At the same time, inventory levels also reached record lows, leading to grim inventory conditions of insufficient supply in the fourth quarter,” he added.  “Although tourism took a major hit throughout 2020, our data shows that vacation housing still did well in terms of sales.  Many people purchased in these areas because they found themselves with new work-from-home freedoms.”

As you might have guessed, Colorado Springs was right up there—with a 15.2% increase in median existing-home prices in the fourth quarter 2020 over fourth quarter 2019.  

In terms of median home prices, Colorado Springs placed 31 out of the 183 Metropolitan Statistical Areas (MSAs) surveyed.  Our prices will continue to rise due in part to the lack of available homes for sale, the bidding wars and offers considerably over list price that we have witnessed in the past year.

The pandemic and work-from-home (WFH) opportunities are also bringing more and more folks to our city because of our notorious outdoor activity opportunities, more suburban space, and cleaner air.  As a longtime resident, at times I wish we could slow this down a bit, but I am aware that progress in this area won’t be slowing down any time soon.  I couldn’t imagine living anywhere else, and more and more folks are finding they feel the same.

If you are interested in seeing the entire NAR Fourth Quarter 2020 report in numerical order, please click here.  For an alphabetical listing, please click here.  And, for the first time, NAR has also published the report by “Qualifying Income Based on Sales of Existing Single-Family Homes’ for these same areas.  To view that, please click here. 

As always, if you have any questions, please give me a call.

 

COLORADO SPRINGS IS NUMBER 17 ON MILKEN INSTITUTES BEST-PERFOMING CITIES LIST

The Gazette, 1.19.21

Coming in at number 17 on the Milken Institutes, annual Best-Performing Cities list, Colorado Springs jumped 19 spots over last year.  This ranking is the city’s highest-reaching in the 22 years since the California-based think tank has been publishing these rankings.

This year the institute added factors in the ranking for housing affordability and household broadband access, which it said was “an effort to more effectively reflect the inclusiveness of local economies”.  The index also measures jobs, wages and high-tech growth.

Colorado Springs has continued to move up in the rankings—to 36^th last year from 58^th in 2018, and 90^th in 2017.

 

 

IT’S A SELLER’S MARKET AND BUYERS ARE SNATCHING UP NEW LISTINGS AS QUICKLY AS THEY’RE AVAILABLE

RealtorMag, 2.19.21

As I’ve been saying for over a year now, it’s going to stay a seller’s market until we have more homes for sale.  NAR chief economist Lawrence Yun recently said, “Home sales could easily be 20% higher if more homes were for sale”.

He added that “Home sales continued to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market”.  

I can attest to this and it’s one of the reasons I’ve suggested that if you have even thought about selling your home, NOW is the time.  You will get the best price ever and likely more than you might imagine.  It is certainly worth your time to give me a call and see how together we can find a way to upgrade your current living situation to fit your present needs and wants—and at these low interest rates your monthly output might not increase by as much as you think.

Here is a look at the key indicators from NAR’s national existing-home sales report, reflecting January sales data:  (for local information, please give me a call)

 

Home Prices:  The median existing-home price for all housing types in January was $303,900--a 14% jump over a year ago.

 

Inventory:  Total housing inventory at the end of January was 1.04 million units, down nearly 26% from a year ago.  Unsold inventory sits at a 1.9-month supply at the current sales pace.

 

Days on the Market:  Properties typically remained on the market for 21 days in January, down from 43 days a year prior.

 

First-time Buyers:  First-time buyers comprised 33% of sales in January, up slightly from 32% a year earlier.

 

As you might imagine, our local numbers are higher in the median price category and are mostly selling for over list price.  Again, please give me a call for further explanation.

 

 

 

February 7, 2021

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 SUPERBOWL SUNDAY…

…and I thought I’d start your day with a “Super” eNewsletter from your “Super Realtor”—me!  In fact, I was again named to the National ERA 2020 “Leader’s Circle”, having demonstrated my super abilities in working with clients.  Please enjoy this eNewsletter…and then enjoy the SuperBowl later today.  Go Chiefs!  Go Bucs! (you didn’t think I’d show a preference for anyone but the Broncos, did you?)

 

 

 

THE SEARCH FOR HOMES CONTINUE…BUT YOU’VE GOT A SECRET WEAPON…AND I NEVER GIVE UP

You heard that one right!  It’s a tough out there in the residential real estate world but lucky for you, I’ve been wading through these home wars for almost 48 years and know the ins and outs of most all cycles. That, combined with my Investment Banking background, gives me a considerable heads up on the competition and helps me provide possible solutions that others may not know exist.  

Quite honestly, this cycle is unlike any we’ve historically seen, so working with a knowledgeable, professional and trustworthy real estate broker like myself is of utmost importance in making any and all of your residential real estate decisions.

As you will see in the statistics below, there is a record low of existing homes for sale in our area, and according to Lawrence Yun, chief economist for the National Association of REALTORS (NAR), things are not likely to change much in the coming year.  He is forecasting for the USA in general, and things here in Colorado Springs will not only mirror the rest of the country but will likely be even tighter as so many folks are wanting to relocate here. Like most things, it’s a matter of supply and demand and in this case, existing homes for sale cannot meet buyer demand.  It looks to be a seller’s market for some time to come.

With so few available homes for sale, when one comes on the market it often is under contract that same day, after bidding wars and at a cost considerably over list price.  I’ve seen as many as 43 offers on lower priced homes. Crazy world we live in and one that can make it hard to make a move for you and your family.  It’s especially hard for millennials and first-time buyers who don’t have the down payment or the credit history to qualify for those higher priced homes.

What to do?  Knowing what you want, need and can afford is the best place to start.  The fast-paced decision making today requires you to do some homework so you can move quickly when you find the “one” you want.  And oftentimes in today’s low interest environment, you can possible afford a higher priced home than you might imagine since the monthly payments at these low mortgage interest rates are keeping monthly costs in check while providing folks with more home for the money.  

Mortgages for home purchases across the country have reached record highs, but if you are a buyer in most any price range, don’t get too hung up on the price of a home—look at look at the actual out of pocket monthly costs to determine what you can afford.  

Colorado Springs-area homebuilding is the hottest it’s been since 2005 and this year is already off to a fast start.  A number of my clients have looked in that direction lately and I’ve been able to provide them with assistance in home and site selection as well as directed them to a lender that suits their individual situation.  These homes continue to rise in price as well due to the price of lumber and other materials. 

The importance of matching the right lender to the buyer cannot be over-emphasized.  Recently I had a client who I helped with the purchase of a newly constructed home.  The lender was specified by the builder and this created a number of problems for the buyer due to the lack of due diligence on the part of the lender.  This particular lender didn’t honor the performance dates in the sales contract, and it caused additional stress for my buyer, something I work hard to avoid whenever possible. 

And when it comes to new construction, I’ve been finding that there are a number of choices in most price ranges that can provide families just what they are looking to buy.  I’ve even had some investment clients purchase newly constructed home as rentals, because with low interest rates they are able to find renters who would much rather have a home than an apartment for the same amount of money and this can provide positive cash-flow in the right situation.

Any and all of these options are out there, and it can be tough to figure out the way to go.  That’s why you’ve got me.  Bring me all of your wishes, dreams, wants and needs, along with your budget requirements and let’s get to work.  Together we will get it done…and done right…for you and your family.

And it all starts with a simple phone call to 593.1000 or an email to Harry@HarrySalzman.com to get the ball rolling.  Please call me even if you are considering a move…because you won’t know until you talk it through and see it on paper if this is the right time or right decision for your personal situation.  

I look forward to seeing you soon.

And now for statistics…

 

JANUARY 2021

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

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

In El Paso County, the average days on the market for single family/patio homes was a very low 15.  For condo/townhomes it was 8.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.7% and for condo/townhomes it was 101.8%.  

Since this is also year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2020 to 2019.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing January 2021 to January 2020 for All Homes in PPAR:

                       

                        Single Family/Patio Homes:

·       New Listings were 1,112, Down 16.6%

·       Number of Sales were 971, Up 6.0%

·       Average Sales Price was $433,581, Up 15.5%

·       Median Sales Price was $385,000, Up 14.3%

·       Total Active Listings are 460, Down 61.3%

·       Months Supply is 0.5, Down 10.2%

 

Condo/Townhomes:

·       New Listings were 160, Down 20.0% 

·       Number of Sales were 155, Up 14.0%

·       Average Sales Price was $285,746, Up 6.3%

·       Median Sales Price was $279,282, Up 15.2%

·       Total Active Listings are 64, Down 49.2%

·       Months Supply is 0.4, Down 3.5 %

Now a look at more statistics…

 

JANUARY 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 7.4%

 

• Median Sales Price for All Properties was Up 13.8%

 

• Active Listings on All Properties were Down 58.6%

 

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

real estate IN 2020:  PLENTY OF REASONS FOR OPTIMISM

Realtormag, Jan-Feb 2021

I recently read an article by Lawrence Yun, chief economist for NAR, which I found to be enlightening as well and encouraging, so I wanted to share some insights with you.  I will quote some excerpts below:

“The housing market was a spectacular surprise in 2020—and the positive trend will continue this year.  Home sales in 2021 are expected to rise by around 10%.  Home prices will also climb, but I expect more moderate increases than we’ve seen, a break for first-time buyers.  Mortgage rates will continue to be favorable, staying at or near historic lows of 3% on average.  The labor market will strengthen, expecially as vaccines become widely available and life moves toward normal…

…Low mortgage rates have been the key reason for the housing market’s strong performance in the midst of the pandemic and high unemployment…. And while mortgage rates are highly influential, they’re not the only factor affecting home sales.  Given the substantial commitment and financial dollars at stake, consumer confidence and life-cycle events such as marriage, changes to family size, and retirement all play a role…

…Owners who were content with their home before the pandemic are thinking about the benefits of another bedroom to use as a dedicated home office or are considering relocating to the countryside, knowing that commuting to downtown offices every day has become a thing of the past.”

Mr. Yun shared a graph of his forecasts:

I’ve been acquainted with Mr. Yun and have found him to be “right on” when it comes to predicting real estate trends and forecasts.  I, too, believe that 2021 has the potential to be a wonderful year for residential real estate…as long as we get more homes on the market and get some of the pandemic restrictions behind us.  

 

UCCS ECONOMIC FORUM DASHBOARD

UCCS College of Business, updated 1.29.21

I just received the most recent economic report from the UCCS Economic Forum and wanted to share the statistics with you, as always.  It presents both the big picture of the US as well as our local economic trends.  trends.  Please click here to see the report and if you have any questions, please give me a call.

 

BUYERS MUST BE READY TO ACT QUICKLY

RealtorMag, 2.4.21

Once again, a reminder that in this fiercely competitive market with low inventories and escalating prices, it is essential to have answered all your questions concerning wants, needs and budget requirements.  Pre-approval as always, is imperative.  And tenacity is equally important.  It may take a while, but with me by your side you can know I will do my very best to keep the search as stress less as possible.  

Just remember—keep all your options open—and when you find what you want—there’s no time to “think about it”.  It’s most definitely one of those “if you snooze, you lose” kind of things.  I wish I could tell you differently, but please be forewarned.  

And don’t despair…we WILL find you what you want…it just might take a bit longer…or a few detours…to get there!

 

ON A SWEET ENDING NOTE…