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HARRY'S BI-WEEKLY UPDATE 3.24.23

Friday, March 24, 2023

by Harry Salzman

March 24, 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.

HOMEOWNERSHIP IS A LONG-TERM INVESTMENT…AND OFTEN YOUR GREATEST ASSET

Several nights ago I had dinner with some long-time friends who also happen to be long-time real estate brokers. It was a social evening but naturally the talk eventually came around to the real estate market and how we and our clients are handling the “new normal”.

We discussed the higher mortgage loan interest rates and chuckled over the fact that we all had purchased first homes at rates considerably higher than they are today. I related that I was happy when rates fell from 9% to 8.5% prior to closing on my first new home.

Several of us remember the days of 12% VA loans and rates as high as 18%. So to us, 6% or 7% isn’t “high”. And maybe it was good that we started buying and selling homes when rates were so high so that we could appreciate the lower rates that eventually came to be.

However, as you might imagine, the prices of those first homes were as low as $25,000. And to us at that time, with the higher interest rates, our monthly payments were “high” in comparison to our income.

The one thing we all agreed on was that no matter what—homeownership contributed to our own personal wealth, and it continues to do so.

Residential real estate is a long-term investment and one that most always helps increase personal wealth. It provides tax benefits and is certainly far better than renting if at all possible for so many reasons.

The Pikes Peak Association of Realtors (PPAR) started keeping track of local sales in 1985 and I calculated the “average” sales price increase from 1985 to this month and it is 7%. When you consider how many various Residential real estate “cycles” this covers you can see what a fabulous long term investment homeownership is while at the same time providing you and your family a place to call “home”.

Another thing we discussed at dinner was how many different cycles we have seen over the years and how we’ve all found creative ways to help our clients succeed with their buying and selling wants and needs.

This just reinforced what I’ve been telling you forever. It’s so very important to have a seasoned, knowledgeable professional in your corner when you are buying or selling Residential real estate, either for the first time, to sell and trade up or for investment purposes.

Fortunately, you have me. My almost 51 years in the local arena, coupled with my Investment Banking background, give me a heads up on the competition. I spend the time to find out the individual wants, needs and budget requirements of each and every client. I do the homework to make sure you find the neighborhood that’s just right for you and your family.

That’s why I’m still working…and I don’t consider it work…I consider it a privilege …when I help past clients, their children and sometimes lately their grandchildren realize their Residential real estate dreams.

Yes, it’s a different market than it was a year ago and 50 years ago, but together we can navigate it and find the right fit for you.

And it all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .

I hope to hear from you soon.

HERE’S WHY THE housing market ISN’T GOING TO CRASH…AN INFOGRAPHIC

KeepingCurrentMatters, 3.22.23

I get asked time and again about the 2008 housing market crash and how it compares to today’s market. To begin with, Colorado Springs did not get hurt as badly as the rest of the country back then and I don’t expect it to experience any great market swings at present, either.

Yes, interest rates are higher and home prices are not appreciating as much as they did over the last several years, but that’s not necessarily a bad thing. It’s simply the market “normalizing”, as I kept telling you it would.

While I don’t expect we will see the 2% or 3% interest rates again, I do expect them to go down from today’s rate. Remember, this is the fastest time ever that rates accelerated but they couldn’t stay that low forever. The buying frenzy those low rates created was not fun for anyone looking for a home and today buyers are able to take a little more time to find the “right” home for them.

With today’s high inflation, it’s time to come to terms with the fact that higher rates are here for the foreseeable future. However, as I mentioned earlier, they’ve been a lot higher, and folks were still buying homes. There is always someone who needs to buy and someone who needs to sell, and there are ways to make it work for each.

The infographic below gives you greater detail about why things are different today than they were in 2008:

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HOME PRICES FELL IN FEBRUARY FOR THE FIRST TIME IN 11 YEARS

The Wall Street Journal, 3.21.23

And now some good news…

With the first year-over-year drop in home prices in more than a decade and a dip in the mortgage rates, the yearlong streak of declining monthly home sales has snapped, showing the effects of the Federal Reserve’s campaign to raise interest rates.

Nationally, sales of previously owned homes, which constitute most of the housing market, rose 14.5% in February from the prior month, but were down 22.6% from a year earlier, according to the National Association of Realtors (NAR). Sales had decreased for 12 consecutive months through January.

Buyers benefited from a slight improvement in affordability as home prices were slightly lower and interest rates eased from a 20-year high last fall.

If you’re wanting to step into the spring buying season to test the waters, give me a call sooner than later and let’s see how we can make all of this work for you.

NEW HOME CONSTRUCTION COULD PROVIDE SOME INCENTIVES FOR BUYERS

The Wall Street Journal, 3.10.23

New home builders today are facing a number of challenges from high construction costs to rising interest rates and buyer concerns about job security and inflation. According to the National Association of Home Builders, (NAHB), sales of newly built single-family homes last December increased by 2.23% due largely to builder incentives and lower mortgage rates. But sales were still down 16.4% compared to December 2021.

To stimulate sales, 57% of builders offered some type of incentive in last month, from mortgage interest-rate buydowns to closing-cost credits to free upgrades and options, while 31% reduced home prices, according to NAHB.

What that means is that savvy buyers who know what to look for and what to ask can find deals, particularly ones willing to pay cash or close quickly.

Again, you fortunately have me in your corner when it comes to new home construction as well. I have great relationships with a number of local homebuilders and can help you navigate those waters as well—all at no additional cost to you.

If this is something you want to explore, give me a call and let’s see how to make it happen.

HARRY’S JOKE OF THE DAY:

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HARRY'S BI-WEEKLY UPDATE 3.6.23

Monday, March 6, 2023

by Harry Salzman

March 6, 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.

IT’S A TOUGH TIME FOR THE housing market BUT AS I’VE REPEATEDLY SAID…THERE ARE ALWAYS THOSE WHO HAVE TO SELL AND THOSE WHO HAVE TO BUY…

As we approach the spring buying season, things are quite different from a year ago. That said, Colorado Springs has almost always fared better than the rest of the nation during market downturns and I expect it to recover faster than most as well.

We’ve got many things in our favor. With a number of companies planning to relocate to the Springs you’ve got relocating employees. And local companies are adding to their staff as well. All you need to do is drive downtown or head southeast and northwest and you can see for yourself how quickly this City is expanding.

For better or worse, folks are discovering what we already know…Colorado Springs has a lot to offer besides a beautiful view of Pikes Peak. We have a fabulous work/life balance that workers today crave and that’s not easy to find in many other areas.

Why do I mention this? Well, if you follow the statistics I provide monthly you can see that our median home prices, while slightly lower than a year ago, have not fallen nearly as much as many other cities. Yes, we are not seeing the 15% year-over-year monthly gains of the recent past, but as I have said all along, those increases were not sustainable, nor were they realistic. They were the product of a lack of available homes for sale and historically low interest rates. Period.

We are now seeing the market “normalize”, and while homes are staying on the market longer and interest rates are considerably higher, I expect the pace of buying and selling to accelerate as soon as interest rates head down a bit.

It’s important to note that even at 7%, interest rates are nothing near the historical highs of the early 1980’s when rates were over 18 percent. Some of us can remember those days and yes, we WERE selling homes at those rates!

In fact, when I purchased my first home, which coincided with my first year in the real estate business, I felt lucky that the interest rates DROPPED to 8.5% by the time of closing!!

Here’s a snapshot of the rates of this decade for 30-year fixed rate loans:

Recent affordability was tough, especially for first-time buyers, even prior to the interest rate increase. Home prices were going higher and higher. Now, with home price appreciation stabilizing, there are several creative ways to purchase and finance a home, whether to sell and trade up, buy for the first time or buy for investment purposes.

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling. Fortunately, you’ve got 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.

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

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, 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…

FEBRUARY 2023

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

Here are some highlights from the February 2023 PPAR report.

In El Paso County, the average days on the market for single family/patio homes was a 53. For condo/townhomes it was 35.

Also in El Paso County, the sales price/list price for single family/patio homes was 98.7% and for condo/townhomes it was also 98.8%.

In Teller County, the average days on the market for single family/patio homes was 62 and the sales/list price was 97.4%.

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 February 2023 to February 2022 for All Homes in PPAR:

Single Family/Patio Homes:

· New Listings were 976, Down 17.7%

· Number of Sales were 778, Down 23.3%

· Average Sales Price was $500,483, Down 2.8%

· Median Sales Price was $440,000, Down 5.4%

· Total Active Listings are 1,443, Up 196.3%

· Months Supply is 1.9, Down 8.4%

Condo/Townhomes:

· New Listings were 162, Down 18.6%

· Number of Sales were 104, Down 35.0%

· Average Sales Price was $359,350, Up 1.6%

· Median Sales Price was $336,250, Down 7.2%

· Total Active Listings are 225, Up 257.1%

· Months Supply is 2.2, Down 7.3%

FEBRUARY 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 27.1%

Median Sales Price for All Properties was Down 5.2%

Active Listings on All Properties were Up 96.0%

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:

INFOGRAPHIC…A CHECKLIST FOR SELLING YOUR HOME THIS SPRING

KeepingCurrentMatters, 2.24.23

Note to Sellers: These are a few of the things you might consider to make your home as attractive as possible for potential buyers.

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, February 2023

As always, I like to share the 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 and I think you will all find it worthwhile reading.

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

HARRY’S JOKES OF THE DAY: