Real Estate Information Archive

February 20, 2024

 

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.

 

 

TODAY’S RESIDENTIAL real estate MARKET CAN STILL BE SOMEWHAT PUZZLING

As I write this, I am right there with many of you…wondering how the pieces are going to come together during the upcoming spring buying and selling season.  I feel that it is going to be a busier time than we’ve seen in the last few years.

I have already had clients preparing their homes for sale and others who are considering their next move as well.

With the drop in mortgage interest rates combined with the increased equity due to higher home values, I’m finding folks getting ready to test the Residential real estate waters sooner than later.

I believe that there will be more homes on the market in the next few months and that will provide better choices and less frenzy than the recent past.  

My advice to those of you who have even considered a move?  Start your preparation now.  Consider your wants, needs and budget requirements and give me a call.  A move might be easier on your monthly budget than you think, but you won’t know until we put all the pieces together.

So, if you’ve even been thinking about a move, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s get together and see how together we can make your Residential real estate dreams come true.

 

AND ANOTHER WORD FROM ME…

If you’ve got a minute and 47 seconds, I’ve got some additional news for you.  Click on the link below to hear my latest podcast:

 https://youtu.be/ZSco77QmK9o

Be sure to “subscribe” online to hear my “blurbs” when they become available.

 

COLORADO SPRINGS HOME PRICES ONCE AGAIN ROSE IN QUARTER FOUR…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 2.8.24 

Median prices of single-family homes across the nation rose for Fourth Quarter 2023 in 86% of the 221 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 3.5% to $391,700 from one year ago.

Home prices in Colorado Springs rose about the same—3.6%-- for that same time period and we were ranked number 47 based on Median Sales Prices of the 221 cities surveyed.  The Median Sale Price here at the end of Quarter Four 2023 was $459,300.  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, Ft. Collins and Greeley 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 221 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.

 

LOWER RATES, MORE LISTINGS: WHAT LIES AHEAD FOR HOUSING THIS YEAR

Keeping Current Matters, 2.2024

As I wrote earlier, this has been a somewhat puzzling year for everyone when it comes to Residential real estate.  And that includes the economists who do the yearly forecasts.  While it’s normal for experts to re-forecast throughout the year, many of them are already being updated and for the better!  

We are finally seeing some relief as mortgage rates have been trending downward in the last few months.  You aren’t going to see the 2-3% range of 2020 and 2021—likely ever again.  However, we will see rates slowly come down.  Many experts are already saying that they expect rates to go into the low sixes and high fives as soon as the end of May. 

With prices being driven by supply and demand (good old Econ 101), it’s still going to be a seller’s market for a while.  

And, as mortgage rates drop, experts project that many of those hesitant homeowners could be more motivated to move.  

According to Selma Hepp, Chief Economist at CoreLogic, “With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023…Most markets will continue to reach new home price highs over the course of 2024.”

So, once again, with 2024 starting out on a better foot than last year, there’s tremendous opportunity for those who are ready to make a move.  Give me a call and let’s see if the time is right for you.

 

ERA SHIELDS MONTHLY STAT PACK 

Data through January 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety. 

 

COLORADO SPRINGS NAMED ONE OF BEST PERFORMING CITIES BY MILKEN INSTITUTE

The Gazette, 2.9.24, The Milken Institute

Colorado Springs was ranked number 15 out of 200 large metro areas nationwide in a report by the Milken Institute released several weeks ago which measures economic vitality.

The Springs had climbed to number 9 among large cities in 2022—it’s highest ranking ever in the report—but slid to number 37 last year before jumping back to number 15 this year.

The Milken Institute’s Best Performing Cities report, first published in 1999, uses 13 indicators to determine its rankings.  The indicators examine labor market conditions, high-tech impact and access to economic opportunities.  

Some highlights:

The Springs topped Denver-Aurora-Lakewood (#20), Fort Collins (#29), Boulder (#47) and Greeley (#93) in the large-city portion of the report.  

 

In the small cities section were Grand Junction (58) and Pueblo (#119).

 

This year the report showed three trends:

 

1. Cities’ performance is closely linked to job and wage growth, which is primarily driven by the expansion of high-tech industries.

 

2. While large cities tend to have a stronger presence of high-tech industries, the fastest growth in this sector was observed in top-ranked small cities.

 

3. With the resumption of travel and tourism throughout 2021, the leisure and hospitality industry played a crucial role in driving the highest improvements in this year’s rankings.

 

To view the information on Colorado Springs’ ranking, copy and paste this link into your browser:

https://public.tableau.com/shared/DX4TDCBN7?:display_count=n&:origin=viz_share_link&:embed=y

 

HARRY’S FACT OF THE DAY: 

 

 

February 7, 2024

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.

 

 

TO PARAPHRASE WARREN BUFFET…

“IF YOU’RE NOT CONFUSED BY THIS MARKET, YOU’RE NOT PAYING ATTENTION”

 

Our old buddy Warren may have been speaking about the stock market, but he might as well have been referring to the Residential real estate market.

Things change so much day to day that it truly keeps even a seasoned professional broker like me on my toes.  

The good news is that interest rates are falling.  No, you’re not going to see them anywhere near the historic lows of several years ago…most likely ever again.  But they are considerably lower than the high of 8% of just last December and should settle in around 6% - 6.25% this year.

The bad news is that if you’re looking for a home, it’s not an easy task.  With so few available existing homes for sale at times it reminds me of the buying frenzy of two years ago.  Homes are selling at very close to or over listing price and we are seeing multiple offers for most.  

Last year was the worst year for existing home sales since 1995 due to elevated mortgage rates and low supply and home buying affordability in October fell to the lowest level since 1985, according to the National Association of Realtors (NAR).

Back to good news though.  We are soon entering the traditional spring buying and selling season and I predict that there will be more activity than in the most recent past.  Homeowners who wanted to sell last year but decided to wait for mortgage rates to fall might not be willing to wait any longer.

In fact, while January 2024 listings for single family/patio homes were about the same as January 2023, they were almost 70% higher than the previous month, December 2023.  That tells us that things are going to start moving a bit earlier this year, which bodes well for a busy spring Residential real estate season.

When you consider condo/townhomes as you will see below, listings were up more than 11% compared to last January and were up 72.6% over December 2023.  Obviously, the price point of these is considerably better for first time buyers so condo/townhomes are gaining in popularity.  The lack of new condo/townhome projects in Colorado Springs this past year has also added to the allure of these units.

And Residential real estate just keeps appreciating, in part due to the scarcity of existing homes for sale and also just because that’s what it traditionally will do.  

I don’t just sell homes; I believe in what I sell and have always invested my personal money in Residential real estate.  It’s proven time and again to be a great investment for me and for my clients.  Not only for their personal homes, but also for their investment properties.  

If you’ve waited for prices to fall, you might be waiting for a very long time.  And while you’re waiting, you are losing the equity that a new home could be providing.

My general philosophy is that no one can expect to buy at the lowest price point, nor sell at the highest.  It just isn’t possible and most anyone who thinks they can will likely lose in the long run.

While it may be more difficult today, it’s still possible for you to find what you need, want, and can afford in a home.

It’s important to note that with a lot of competition and so few existing homes for sale, if you are in the market you need to be prepared to know exactly what you want, need, and can afford PRIOR to beginning the search.

And, if you are wanting to sell you need to know where you want to move next because it’s likely your present home will sell faster than you might imagine.

That’s where I come in.  The current market is not for the timid or inexperienced.  It takes a lot of advanced planning and knowledge of how to navigate these waters.

My almost 52 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 2024, 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, if you’ve got one minute and 35 seconds, look at my newest podcast on 2023 highlights and 2024 forecast. Simply click on the link below and you will be directed to my personal YouTube channel.

To watch, click here:

https://youtu.be/rtGM6vr_kRs

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

JANUARY 2024

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

Here are some highlights from the January 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 51.  For condo/townhomes it was 53.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.3% and for condo/townhomes it was 98.9%.  

 

In Teller County, the average days on the market for single family/patio homes was 66 and the sales/list price was 97.7%.

 

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 2024 to January 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 963, Down 0.2%

·       Number of Sales were 668, Down 9.6%

·       Average Sales Price was $522,379, Down 0.5%

·       Median Sales Price was $450,000, Up 1.1%

·       Total Active Listings are 1,749, Up 6.7%

·       Months Supply is 2.6, Down 0.7%

 

Condo/Townhomes:

·       New Listings were 202, Up 11.6% 

·       Number of Sales were 108, Up 20.0%

·       Average Sales Price was $371,929, Up 10.7%

·       Median Sales Price was $360,000, Up 6.7%

·       Total Active Listings are 333, Up 30.1%

·       Months Supply is 3.1, Up 1.5%

 

Now a look at more statistics…

 

JANUARY 2024 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 8.4%

 

• Median Sales Price for All Properties was Up 1.1%

 

• Active Listings on All Properties were Down 2.2%

 

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:

 

TIPS FOR GETTING A 6% MORTGAGE RATE

The Wall Street Journal, 2.1.24

As I just mentioned, falling mortgage rates could help home buyers in two ways this year:  house payments might become slightly more affordable, and we should finally see more available homes for sale.

While mortgages aren’t expected to drop below 6% this year, they are likely to decline gradually as the Federal Reserve begins making interest rate cuts.   Some economists are saying that cuts could begin this spring. 

And while the Feds moves don’t have a direct impact on mortgage rates, rate cuts usually lower the yield on the 10-year Treasury, which is an indicator lenders look to when setting mortgage rates.

However, home buyers don’t need to wait for the Fed to cut rates to get a 6% mortgage.  With rates at 6.63% as of last week according to Freddie Mac, that puts 6% within striking distance for some buyers, depending on credit score and other factors. 

There are also additional steps to take for further discounts on the rate.

Here is what buyers should consider doing when shopping for a mortgage this spring:

 

Boost your credit score.  Increasing your credit score even by a small amount can help reduce the cost of buying a home.  A difference of a few points can sometimes mean lower mortgage rates that save buyers thousands of dollars over time.

 

Use points.  Buyers can also use mortgage points to lower their interest rate if getting to 6% or lower is important to them.  Each point reflects 1% of the loan amount and might be paid up front to your lender.

 

Find a discount.  Many home buyers assume they have to accept the first mortgage rate offer they receive. My clients, however, are aware that there are options based on banking relationships and more as I can help direct them in their search for the best rate.  According to research done by Freddie Mac that examined purchases between 2010 and 2021, borrowers who applied with two different lenders cut their mortgage rate by an average of 0.10 percentage point.  

 

So, once again, my clients have an advantage with me.  I understand the wholesale mortgage market.  In fact, I look at rates daily and know where and how to get the best choices for my clients.  

If you have any questions, you know where to find me.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, January 2024

As always, I like to share the useful 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. 

This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.

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

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD

Updated January 26, 2024 UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr. Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot”.  

I know several of you who enjoy statistics and use this information in your daily business life, and I will share it as always.  

Below I have reproduced a copy of the first page and to read the entire report, please click here.