March 4, 2020
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.
LOTS OF GOOD NEWS THAT WOULD BE EVEN BETTER IF WE HAD MORE HOMES FOR SALE!
It’s been a busy month for February and no surprise in some ways. This is usually a slower time of year but with so few existing homes available for sale, I’ve got buyers who are looking at every listing that even comes close to what they want, need and can afford.
Let’s start with the Federal Housing Finance Agency’s (FHFA) just released House Price Index for the 4th Quarter 2019. Colorado Springs was ranked number two of the “Top 100 Metropolitan Statistical Areas (MSAs) in the USA. Our house price index increased 11.0% from 2018 Q4 to 2019 Q4. And…it increased 4.2% from 2019 Q3 to 2019 Q4!
As I’ve been telling you, one of the reasons for such an increase is the lack of available homes for sale, which is creating even more of a seller’s market. We are still seeing bidding wars and offers that come in above listing price as the norm these days. And with more and more companies moving here and bringing with them relocated employees, it doesn’t appear that this will improve much until there are more homes for sale.
This isn’t just a local problem. With the spring buying season starting up, coupled with a strong labor market and a growing pool of millennials as would-be buyers, the competition all over the USA is going to be tough. Some U.S. economists are predicting that home sales will be down—or flat—in 2020. Considering that mortgage rates are still at historic lows, if there were more available homes, sales would be way up. And despite the low rates, those home price increases are also starting to price first-time buyers out of the market.
Locally, Amazon is planning to hire 1000 folks for their enormous distribution center being built near the Colorado Springs Airport and Progressive Insurance just announced plans to hire 500. All of these folks are going to be looking for homes and adding to the housing shortage, as well as causing rental rates to remain high.
Another interesting fact: In late February, “The Report: State of Luxury 2020” by Coldwell Banker, which provides an in-depth look of emerging luxury markets and buyers, ranked Colorado Springs as one of the top 5 luxury markets to watch. According to the report, the migration of new markets within the luxury sector are being driven by several factors including lifestyle preference, job opportunities, property value differentials, and a desire to reduce taxes. Sales-list-to-price ratios, days on the market, median list price and inventory were also used in determining the top five. Just another reason it’s tough to find a home here.
New homes are becoming more of an option than ever and the Colorado Springs area homebuilding is off to a great start in 2020. The Regional Building Department issued 312 permits in February for the construction of single-family homes in El Paso County. That’s nearly a 15% increase over the same period in 2019. Those permits were the most issued for a February since 356 permits were issued in 2006. And 2020 year to date, single-family building permits in El Paso County totaled 641—almost 49% higher than the 431 issued during the same period last year.
I’m finding a number of my clients are looking to new home construction and fortunately I have a good working relationship with a number of local builders. That comes into play when my clients need help with site and home selection, and very importantly when it comes to finding the right lender for their budgetary requirements. And…even more important—all of my advice and help comes at NO ADDITONAL COST to my client.
Is new home construction is something you have considered? If so, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help you determine the right move for your individual wants, needs and budget. You might be surprised to find out what your current home is worth and now is a great time to put that hard-earned equity to work for you. But don’t delay…the line to purchase either an existing or a new home is going to be a lot longer as the spring buying season gets in full swing.
If 2020 is your year to make a move, it’s not too early to meet with me to discuss your plans—new construction, looking to buy an existing home or investment property—the sooner you start the conversation, the sooner I can help you can fulfill your residential real estate dreams.
And now for statistics…
FEBRUARY 2020
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the February 2020 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 30. For condo/townhomes it was 17.
The sales price/list price for single family/patio homes was 99.8% and for condo/townhomes was 100.0%.
Please click here to view the detailed 9-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 February 2020 to February 2019 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,254, Up 3.2%
· Number of Sales were 985, Up 6.7%
· Average Sales Price was $386,749, Up 10.3%
· Median Sales Price was $341,000, Up 8.3%
· Total Active Listings are 1,085, Down 28.5%
· Months Supply is 1.1, Down 4.2%
Condo/Townhomes:
· New Listings were 214, Up 31.3%
· Number of Sales were 146, Up 9.8%
· Average Sales Price was $254,572, Up 9.6%
· Median Sales Price was $237,000, Up 10.2%
· Total Active Listings are 112, Down 20.0%
· Months Supply is 0.8, Down 2.0%
And a look at more statistics…
FEBRUARY 2020 LOCAL MARKET UPDATE AND MONTHLY INDICATORS 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.
It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.
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 4.5%
- Median Sales Price for All Properties were Up 10.3%
- Active Listings on All Properties were Down 33.5%
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:
“SENIOR real estate SPECIALIST” IS A NEW DESIGNATION FOR ME
I just successfully completed a certification course to become a “Senior real estate Specialist” from the National Association of Realtors, which doesn’t mean I’ve been in the business for a long time, but of course—47 years later—I have. It means that I am now even more educated in assisting those aged 50 plus in identifying their needs and how to make the best use of the home equity they have accumulated.
For most senior adults, a home represents their largest asset and accounts for most of their net worth. Understanding the distinct real estate goals, concerns and needs of seniors is vital in helping those folks determine their next steps in the housing arena. There are key differences in housing options, from age-restricted communities to age-in-place design to assisted living; applications of the Housing for Older Persons Act, the ins and outs of reverse mortgages,; the use of pensions, 401k accounts, and IRAs in real estate planning, reverse mortgage lenders, clutter and staging specialists and more.
While my extensive residential real estate experience, along with my investment banking background, make me more of an expert than many, this course presented new tools that I can use in helping the senior market. This is especially important when you consider that adults aged 50 and over represent more than 20% of the U.S. population.
If you fit into that category and have started considering what’s next—I’m your guy. I can assist in helping you determine the right move for you—and more importantly—if I don’t have the answers—I know where to get them. I’m here when you’re ready and look forward to helping you.
DON’T LEAVE TAX BREAKS ON THE TABLE WHEN SELLING YOUR HOME
Realtor Mag, 2.24.20
This is a reminder to ask your financial and tax advisors about the tax deductions you’re eligible for in a home sale. As long as the costs are directly tied to the sale of the home, they may qualify for tax breaks.
While 2018’s new tax code—aka the Tax Cuts and Jobs Act—changed some rules for homeowners, rest assured that if you sold your home last year (or are planning to in the future), your tax deductions when you file with the IRS can still amount to a sizable savings.
These include:
- Selling Costs
- Home Improvement and Repairs
- Property Taxes
- Mortgage Interest
- Capital Gains Tax for Sellers
You may be entitled to some or all of these deductions, so please be sure to check with your financial and tax advisors to determine how it applies to your individual situation.
FEATURED LISTING:
YOURS, HERE? IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.
