Real Estate Information Archive

February 21, 2023

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer 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.

 

 

SPRING BUYING AND SELLING SEASON IS ALMOST HERE

The Wall Street Journal 2.16.23

As I was preparing to write this eNewsletter, The Wall Street Journal had an article with some great information about the same things I was going to tell you.  I’ll share that, and more, right here.

While the market frenzy of the past several years is now behind us, don’t expect the spring buying and selling season to be a “walk in the park” so to speak.

The affordability crunch, given the median single-family home prices and the mortgage interest rates, is working against some buyers, and most especially for first-timers.

However, potential buyers are entering an improved market where bidding wars are less common, and homes are staying on the market longer.  In January, homes nationwide were on the market a median 51 days, an increase of more than three weeks from a year ago, according to Redfin.  In Colorado Springs, it was essentially the same.

Seller and Buyers should both be prepared to make reasonable concessions to get to the closing table.  This could mean a Seller offering x-amount to the Buyer to use for whatever the Buyer may feel the home might need or the Buyer offering to let the Seller lease back the home for a specified time to facilitate a move to a new home.  

Whatever the concession, it’s worth considering to get an offer accepted.  According to Redfin, Buyers received concessions in 42% of home sales in the fourth quarter, up from 31% a year earlier.

And continuing a trend that began during the recent market frenzy, cash offers and strong financing continue to often win out over higher offer prices.  Buyers should aim for a down payment of 20%.

Problems with financing and home inspection are among the most common reasons for contracts falling through.

While a cash offer is “king” for a Buyer looking to play hardball, for many Buyers it isn’t an option.  Being fully pre-approved from a lender is the next best thing to help facilitate the sale rather than a simple pre-approval letter that hasn’t gone through the lender’s underwriting process yet.

Homes that have been on the market for several months this winter may offer discounts to Buyers who are now ready to make a deal.

What I’m saying is that NOW is a great time to get ready for the spring season.  Buyers will be looking, and Sellers are ready.  That’s a win-win situation when properly matched.

That’s why you’ve got me.  Not only am I the “real estate Therapist”, I’m also a great Matchmaker.  With my almost 51 years of experience in the local Real Estate arena, I’ve become an expert at putting together deals that work.  

Yes, interest rates are higher than they’ve been, and home prices are not getting cheaper, but there is almost always a way to find a home that can meet your wants, needs and budget requirements.  And my guess is that this spring is going to be a great time to make that happen.

But whether you’re buying or selling, it begins with a phone call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  Together we can make all your Residential real estate dreams come true.

 

AND, A LITTLE BIT OF BRAGGING…

Once again, I’m happy to report that I have achieved a top honor at ERA real estate.  As a member of the Circle of Honor I was recently honored for my “extraordinary efforts and commitment to success”.  

I don’t work for any reason other than to make certain I do the very best for my clients, but I must admit that it’s nice that my company also appreciates what I do.  So, when you see the decal below, you’ll know what it means!

 

COLORADO SPRINGS HOME PRICES ARE HIGHER IN FOURTH QUARTER…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 2.9.23 

Median prices of single-family homes across the nation rose for Quarter Four 2022 in 90% of the 186 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 4.0% to $378,700 from one year ago.

Home prices in Colorado Springs rose less than 1% for that same time period but was still ranked number 36 based on Median Sales Prices of the 186 cities surveyed.  The Median Sale Price here for the end of Quarter Four 2022 was $443,400.  Prices reflect detached, single-family and patio homes but not townhomes or condominiums.   

And once more, the good news is that while our home values are increasing, they are still less than those in the Denver, Boulder, and Ft. Collins areas, which makes our city more attractive to potential companies and others wanting to relocate here.

Qualifying income for local mortgages continues to rise.  However, increased home value in your present home can likely give you a larger down payment.   That could possibly keep your monthly output lower than you might expect, even in a more expensive new home. 

To see all 186 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.   To see the qualifying income necessary for mortgages, click here.  

And if you have any questions, you know where to reach me.

 

THE SPRING housing market CAN STILL BE A SWEET SPOT FOR SELLERS---AN INFOGRAPHIC

KeepingCurrentMatters, 2.17.23

 

Some Highlights:

• The biggest challenge in the housing market is how few houses there are for sale compared to the number of people who want to buy.

 

• The number of homes for sale is up from last year but below pre-pandemic numbers, and that means we’re still in a Seller’s market.

 

• The housing market needs more homes for sale to meet the demand of today’s buyers.  If you’ve thought about selling, now’s the time to contact me.

 

SHOULD YOU CONSIDER BUYING A NEWLY BUILT HOME?

KeepingCurrentMatters, 2.15.23

While you might be focusing on previously owned homes in your search for a new home, with so few choices today it might make sense to consider all options, which include a home that’s newly built.

Even though there are more homes for sale today than a year ago, there’s still an historically low number of available homes on the market.  One reason for that is years of underbuilding—meaning there haven’t been enough new homes built to keep up with the demand.

During the past 14 years, the number of new homes being built each year is on the rise and that’s good news for Buyers. According to Mark Fleming, chief economist at First American:

“While existing-home inventory remains limited, the silver lining for home buyers is that new-home inventory is on the rise, and a new home at the right price is a pretty good substitute.”

 

And, while there is a growing number of newly constructed homes for sale, builders are slowing the pace until they sell more of their current inventory.  According to Logan Mohtashami, Lead Analyst at HousingWire:

“The builders have to work off the backlog of homes, but instead of 3%-4% mortgage rates, they’re dealing with 6% plus mortgage rates, which means they have to provide many incentives to make sure those homes sell.”

 

Many builders are now offering incentives to help Buyers purchase these homes.  Fleming also explains:

“The National Association of Home Builders reported that nearly two-thirds of builders were offering incentives, including mortgage rate buydowns, paying points for Buyers and price reductions, which could entice home Buyers.”

 

A builder who is willing to pay to reduce your mortgage rate could be a game changer.  Ksenia Potapov, Economist at First American puts it this way:

“A one percentage-point decline in mortgage rates has the same impact on affordability as an 11 percent decline in house prices.”

 

Should you buy a brand-new home?  There are many things to consider, including location, and the only way to determine that is to meet with a knowledgeable real estate professional like me who can help you determine if that is the best way for you to go.

And did I mention that new home purchasing advice is one of the services I provide my clients at no additional charge to them?  

I have long time working relationships with a number of local builders, so if you are considering new home purchasing, just give me a call and let’s see if that fits into your long term Residential real estate plan.  It might be just the right decision for your individual situation.  

 

HARRY’S JOKE OF THE DAY: 

February 7, 2023

 

HARRY’S BI-WEEKLY UPDATE

       A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

WITH SPRING BUYING SEASON ALMOST UPON US, THE LOCAL housing market IS SHOWING SIGNS OF INCREASED ACTIVITY

It’s  been a long couple of months in the Residential real estate market, both locally and nationally, but things are starting to look up here just in time for the traditional busy time of year.

To begin with, mortgage interest rates have been falling and should go down a bit more in the coming months.  And, as you will see in the statistics below, there are more homes on the market now, and I would suspect that there will be even more in the next month or two.

Traditionally, folks wait to put their homes on the market after the holiday season and while we saw fewer new listings last month compared to a year ago, there are considerably more homes for sale than there were last year at this time.  Almost two hundred percent more single-family, townhomes were actively for sale in last month compared to last January!  

That is great because there are many folks looking to buy here for so many various reasons.  First, rental prices are still going through the roof and many renters are looking for ways to become homeowners.  Then we have new companies relocating here and their employees are also looking for to relocate and find housing. Folks who had waited too long to sell and trade up and found themselves in a bind due to the rising interest rates along with the greater home appreciation are now finding ways to make their dreams a reality.

Colorado Springs is as desirable a place to live as it’s ever been, and the city is still getting great press.  A recent article in Fortune Magazine entitled “Best Place to Travel in 2023” includes Colorado Springs among many foreign cities, as well as some others in the U.S.  And, as you well know, once you visit Colorado Springs, somehow you start thinking about relocation!  It’s happened to the best of us and I’ve no doubt it will continue for years to come.

Those who were thinking prices were going to fall are realizing that it’s just not going to happen.  Yes, the bidding wars and sales considerably over listing price may be gone now that there are more homes for sale, but don’t think you’re going to see a drop in home values here.

I’ve personally predicted an increase of 3%-5% for 2023.  I wouldn’t even be surprised if this is on the low side, but we will have to wait and see.  What I do predict is that home values here in general are not going to slide.

If you’ve even considered a move, to sell and trade up, move to a new neighborhood or for investment purposes, you might want to get a jump on the sure to be busy spring buying season.

Knowing what you want, need, and can afford is the first step.  The second step is to contact me.

My almost 51 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

If Residential real estate is among your hopes and dreams for 2023, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

JANUARY 2023

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

Here are some highlights from the January 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 50.  For condo/townhomes it was 37.  

Also in El Paso County, the sales price/list price for single family/patio homes was 98.4% and for condo/townhomes it was also 99.0%.  

In Teller County, the average days on the market for single family/patio homes was 56 and the sales/list price was 97.5%.

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 2023 to January 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 965, Down 18.2%

·       Number of Sales were 739, Down 30.2%

·       Average Sales Price was $525,254, Up 6.1%

·       Median Sales Price was $445,000, Even

·       Total Active Listings are 1,639, Up 198.5%

·       Months Supply is 2.2, Down 6.6%

 

Condo/Townhomes:

·       New Listings were 181, Down 11.7% 

·       Number of Sales were 90, Down 43.0%

·       Average Sales Price was $335,963, Down 1.9%

·       Median Sales Price was $337,250, Down 2.2%

·       Total Active Listings are 256, Up 224.1%

·       Months Supply is 2.8, Down 5.2%

 

JANUARY 2023 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 Down 33.2%

 

• Median Sales Price for All Properties was Even

 

• Active Listings on All Properties were Up 108.4%

 

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

housing market SHOWS SIGNS OF THAWING

The Wall Street Journal, 2.6.23

As I was writing this, I glanced online and saw an article saying pretty much what I had shared above.  So, here’s what it said:

“A decline in mortgage rates has more people interested in buying a home”

In response to signs that the Federal Reserve is nearly finished lifting rates, the average 30-year home loan rate has come down by just about a full percentage point from a 20-year high above 7% in November.

Mortgage applications are up by about a quarter since the end of last year and a measure of signed real estate contracts rose in December after six months of declines.  In addition, the number of people contacting real estate agents has rebounded from a November low, according to Redfin Corp’s internal data.

While rates are still considerably above the 3% range of a year ago, the fact that they are now a percent lower than November is a good sign and folks are pleasantly happy.

The housing market is a barometer of how the economy is responding to a loosening of financial conditions in recent weeks.  Stocks and bonds have both rebounded strongly to start the year on the premise that inflation is coming down without putting the U.S. into a deep recession.

The Fed is still indicating that it is committed to keeping rates high until inflation is lower and it is willing to risk a recession to do so.  Only time will tell how this will play out.

However, economists at Goldman Sachs Group have said this past month they expect the worst of the downturn has passed and housing is poised to exert less of a drag on economic growth going forward.

Execs at D.R. Horton, Inc., the largest U.S. homebuilder by volume, told analysts in January that they have seen heightened sales activity in the first few weeks of the year.  Nets sales, they said, are expected to increase significantly from the first quarter to the second, when the traditional spring selling season happens.  

As I have always said, it appears that folks “are less focused on the specific rate than they are on identifying a window of where they are comfortable with their monthly output”, according to a Redfin agent in Washington, D.C. also.

The Journal cited an example of an assistant superintendent in a Phoenix school district who started looking to buy a house with her boyfriend in the past few weeks.  After looking at about a half dozen houses, they made an offer that was accepted last week.

They decided to purchase knowing that rates might fall, and they could refinance their current mortgage later on. According to her, “I’m thinking this isn’t a forever thing.”  Exactly what I’ve been telling my clients.

Homebuilders have been offering incentives to sell their finished homes and some buyers are signing up for mortgages with rates that are temporarily lowered for the first few years.

Refinancing has fallen drastically from when homeowners were refinancing at rates that were around 3% or lower. Far fewer can save money at rates above 6%.

Pending home sales—a leading indicator for the housing market—rose 2.5% in December, led by gains in the South and the West, according to the National Association of Realtors (NAR).  

So, once again, if you’re even considering a move—the best first move would be to give me a call.  I’ve been through most all cycles imaginable over the last 51 years and can help you navigate the still somewhat stormy seas of home buying and selling.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, January 2023

As always, I like to share the wonderful economic data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report.

To read the report, please click here and if you have any questions, please give me a holler.