Real Estate Information Archive

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

DOES THE HOMEBUYERS’ TAX CREDIT ‘COST’ THE GOVERNMENT TOO MUCH ???

As we approach the end of the federal tax credit for Homebuyers (April 30 will be the deadline for signing a contract under this program), the explanation given by the government for not extending the program is, “Continuing this program would cost us too much money.”

This glib explanation sounds reasonable to people who don’t understand how the free market economy works. i.e. people who don’t understand who pays taxes and where they get the money to pay them. Let’s look at some of the various types of benefits to the government that are generated by the sale of a home:

1.  Federal income taxes
2. State income taxes
3. Capital gains taxes
4. Local Sales taxes
5. And, last, but certainly not least, JOBS, JOBS, JOBS

The following is a partial list of individuals and companies that typically receive income (and thus become liable for additional tax revenues) whenever someone buys a home:

• The Seller of the home
• The companies that the Seller hires to prepare the home for resale. E.g. the decorator, the stager, the remodeler, the landscaper, etc.
• The companies from whom the people named above purchase their supplies
• The Moving company
• The appliance stores
• The providers of services that the Buyer will hire. E.g. internet, TV, alarm services, etc.
• The Mortgage broker
• The Lender
• The Accountant
• The Realtor.
• Etc., etc., etc.

In other words, because this program produces more tax revenues to local, state and federal governments than it ‘costs’ , the Homebuyers’ tax-credit program should not be looked at as a “loss” to the government, rather, it should be viewed as a method for ‘priming the pump’  for additional tax revenues for all levels of government.

If this way of evaluating the benefits of the Homebuyers’ tax credit seems revolutionary, consider that the state of California has now passed similar tax-credit legislation that offers $10,000 to Homebuyers. Their legislature has recognized that the best way to increase tax revenues is to offer incentives to taxpayers. (Golly. It almost seems like Reagan was right. ..The best way to increase income to the government is to lower taxes. Whooda thunk it ?!!! )

Colorado, take note.   

HERE’S ANOTHER EXAMPLE OF HOW GOVERNMENT CAN STIMULATE THE ECONOMY

During the first week of the Governor’s Energy Office’s new rebate program, more than 22,000 Coloradans signed up to receive energy rebates. The office’s phone lines were overwhelmed on April 19, when the program launched and there are now waiting lists for rebates for dishwashers, refrigerators and tankless water heaters.

The rebates are available for energy-efficient appliances and energy-efficient improvements, such as insulation. Here’s a sample of the available rebates:

• Clothes washer              $75
• Furnaces                       $500
• Hot Water heaters          $200-$300
• Insulation and sealing    Up to $400
• Duct sealing                  Up to $75
• Energy audit                 Up to $100

We encourage our readers to take advantage of these rebates for several reasons. First of all, the result of these home improvements will be that your utilities bills will go down. Secondly, the energy-efficient upgrades to your home will improve the eventual marketability of your home. Prospective Buyers are often persuaded to buy because of low utility bills or a shiny new refrigerator. Keep in mind, however, that, if you are interested in applying for these rebates, be sure you register with the program before you make the purchase. They are not retroactive.

Again, the benefits of this type of program to the state of Colorado in terms of increased tax revenues and jobs are similar to the benefits from the Homebuyers’ tax credit program discussed above. This program was funded by $18 million from the American Recovery and Reinvestment Act

Let’s hope that our legislators are learning the lesson that when they let us have more of our money, their revenues go up.

THE COLORADO SPRINGS ECONOMY, LIKE THE ANNUAL HOT-AIR BALLOON FESTIVAL, IS SINGING, “UP, UP AND AWAY”

On Sunday, April 25, 2010, the Gazette reported the following encouraging data about our local economy:

• Hotel occupancy moved up to 51.7%
• Initial unemployment claims were down 43.3%
• Single-family home permits were up 111.3%
• Taxable retail sales were up 3.4%
• Foreclosure filings were down by 33%.

It’s good news like this that keeps our spirits up as we dig ourselves out from under our annual April blizzards. But, look at it this way. At least the chiropractors are getting rich.

NEW HIRING INCENTIVE SIGNED INTO LAW

Under the Hiring Incentives to Restore Employment Act of 2010 which was signed into law on March 17, 2010, employers that hire new workers after February 3, 2010, and any time during the rest of 2010, will be exempted from the employer’s 6.2% share of FICA for those workers, provided the workers were unemployed for the 60 days before starting work or worked less that full time (40 hours per week) for someone else during that period.

The IRS will be providing necessary forms and instructions within the next few weeks but, in the meantime, employers should obtain from each new employee a statement indicating that he/she meets the requirements of the Act.  

To learn more about this new law, visit the Government Relations section of the Worldwide ERC® website.

YOU ONLY HAVE UNTIL APRIL 30^TH TO SIGN YOUR CONTRACT TO BUY

If you want to take advantage of the Federal tax Homebuyer’s tax credit, you must be under contract by April 30, 2010. Give us a call today, or you will miss out on this terrific opportunity to put money in your pocket !!!

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

The difference between the short and long income tax forms is simple. If you use the short form, the government gets your money. If you use the long form, your accountant gets your money.

A fine is a tax for doing something wrong.
A tax is a fine for doing something right.

A couple of weeks after hearing a sermon on Psalms 51:2-4 [knowing my own hidden secrets] and Psalm 52:3-4 [lies and deceit], a man wrote the following letter to the IRS:

'I have been unable to sleep, knowing that I have cheated on my income tax. I understated my taxable income, and have enclosed a check for $150.
If I still can't sleep, I will send the rest.'

Making sausage and making tax laws have much in common. They both involve bloody processes, they both require that an innocent animal be slaughtered, and those of a squeamish disposition should not get involved in the making of either. Anonymous

The avoidance of taxes is the only intellectual pursuit that carries any reward. John Maynard Keynes

My problem lies in reconciling my gross habits with my net income.  Errol Flynn

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

IT’S MY ANNIVERSARY, SO PLEASE PARDON MY NOSTALGIA

Last week marked my 38^th year of selling real estate in Colorado Springs, and I couldn’t help but think back on what our local market looked like in those prehistoric times.

In 1972, I started selling model homes for American Builders, the developers of Southborough and Eastborough. The price range for these homes was $18,000-$19,000. (We also had resale homes for sale at slightly lower prices for those people who could not afford the new models). Mortgage interest rates for a 30 year, fixed-rate mortgage were running at 8%. (ARMs didn’t even exist yet).

At our first sales meeting in 1973, we were all dismayed to hear that our available inventory of $18,000-$19,000 homes was sold out and the builder was announcing a price increase. From that point on, $20,000 would be our minimum price for homes in the development. I remember thinking, “Where in the world will we find people who can afford to spend $20,000 for a home?”….

Flash forward to the present … Yesterday, I was driving on Academy Boulevard and spotted one  of the first homes I sold, back in 1972. The home recently sold for $145,000. What a dramatic example of the benefits of investing in real estate. That home, which the original owner bought for a $500-$1000 down payment, has shown a 600% increase in value since 1972. That’s an average annual rate of return (or appreciation) of approximately 16%. That doesn’t even take into consideration such other benefits as tax deductions, etc.

But the dramatic growth in the value of that house doesn’t even tell the whole story. Let’s look at what “leverage” does for a homeowner. If the original buyer of that home put $1000 down and lived in the home for 7 years (That’s the average length of homeownership, according to NAR statistics), the selling price (using the 16% appreciation figure) would have been approximately $42,210, or 110.5% over the original purchase price. Or, to look at it another way, in seven years, the home realized a gain of just over 22 times the original investment of a $500- $1000 down payment. Eat your heart out, Warren Buffett !!

It’s also obvious that, even if you do not plan to move out of your family home, you should seriously consider purchasing rental property. Our present economic crisis has dramatically expanded the pool of high-quality, potential renters. Combine that with the fact that interest rates are as low as they are going to get and the result is that Investors may never see such great investment opportunities again.   

The bottom line is, now is the time for you to do yourself a favor. Take advantage of today’s low interest rates of 5 – 5.25% for a 30 year fixed-rate loan and make the best investment you will ever make. Call us, right now, and let us help you buy your new home.

DON’T BE LEFT ON THE DOCK, WATCHING THE BOAT LEAVE WITHOUT YOU !!!

The federal tax credit for Homebuyers is just about to expire. If you wait until May 1, 2010 to sign a contract to buy your new home, you will have missed out on the Federal Tax Credit for Homebuyers. That will mean that, if you are a potential first-time Homebuyer, you just threw away $8000. (or, $6500, if this would be a trade-up home). Call us today to avoid losing out on this free gift from your Uncle Sam. They are starting to cast off the lines and the ship’s propellers are turning, but there’s still time to get on board. Call us today !!!

IF YOU LIVE IN COLORADO SPRINGS, YOU’RE VERY FORTUNATE !!

At the April Economic Development Luncheon, the speaker was Dr. Tom Duening, the new El Pomar Chair for Business and Entrepreneurship at the College of Business at UCCS. He came here last August from Arizona State University, my Alma Mater. As a relative newcomer to the region, he is very enthusiastic about Colorado Springs and very correctly describes our city as a place “where people want to create their own community and life. People can find their own pathway here. The honesty, transparency and creativity of the business community of Colorado Springs far exceeds that of the larger cities I’ve lived in for the past 25 years”.

In support of this positive view of our city, the April 18^th issue of the Gazette featured an open letter to the citizens of Colorado Springs from the Greater Colorado Springs Chamber of Commerce, the City of Colorado Springs, the Colorado Springs Regional Economic Development Corporation, El Paso County and the Colorado Springs Convention and Visitors Bureau.  The message of this open letter was to point out that “We are a community to be envied”.

The letter goes on to list the various areas in which Colorado Springs stands out. To list a few of their observations:

We are a city of accountability: We have adapted to the fiscal challenges which face all cities across the nation and we are solving our problems in a cooperative manner.

We are a city ready for the future: As Dr. Duening points out, “We are the leading edge of the Lifestyle Belt – and the Gateway to new expansion into the West”.

Our assets and resources are unmatched in communities our size: The Brookings Institute asserts that Colorado’s Front Range is uniquely empowered with all the essential ingredients for major economic growth and identifies Colorado Springs as a leading factor.

We are a city of scholarship: Our four universities, complimented by a cast of high-caliber educational institutions for adult learners, provide a complete suite of educational opportunities for the regions labor force.

We are a city of welcome and innovation: For example, we host the National Space Symposium, the largest symposium in the space industry, with over 9000 participants. This is just one of the meetings, seminars and conventions hosted by our local, world-famous local Tourism industry.

We are a city safeguarding the nation: The continued and growing presence of our military installations and commands, defense and national security enterprises has insulated our economy and, in addition, our almost 2000 non-profit organizations work to help and serve those in need in our community, across the nation and around the world.

We are a city of encouragement: We are a community of excellence for amateur sports and proud home to the United States Olympic Committee and Training Center. We have been rated the fittest city in the US and are home to a vibrant arts community. We are truly the “America the Beautiful” city.

We are a city working together: For example, The Southern Colorado Business Partnership has been formed to give businesses in three counties a voice at the state level. Twelve organizations from Castle Rock to Pueblo are working together on behalf of the region. Operation 60ThirtyFive outlines our region’s economic strategic plan and Dream City 2020 is a citizen-led effort to craft a vision for our city’s future, and work to turn the Dream into reality.

We are a city to be envied: We are proud that we own our own destiny and we are working diligently to make Colorado Springs a world-class community.

The open letter goes on to list some of the most recent recognitions that our city has received at the national level:

Best Place to Live – 2009 Outside, Online

Fittest City – 2010 (#4) Gallup

Best Places for Business and Careers – 2010 (#12) Forbes.com

National Winner “Cultural Diversity” – 2010 National Black Caucus of Local Elected Officials

Top 60 U.S. Hotspots for Young, Talented Workers - 2009 (#3)  Next Cities

Mid-Sized U.S. City Art Destination – 2009 (#25) American Style

Most Sports Obsessed Town in America – 2008 (#3) Men’s Health Magazine

America’s Best Midsize Metropolitan Areas – 2010 (#9) MSNBC

Best City to Raise an Outdoor Kid – 2009 (#7) Boy’s Life

America’s Best Bang For The Buck Cities – 2009 (#9) Forbes.com

Cities Ranked and Rated – 2007 (#4) Frommer’s Travel Guide

Fittest City in America – 2009 (#2) Men’s Fitness Magazine

Best City to Find a Fresh Start – 2009 (#8) Business Week.com

Most Wired City – 2010 (#6) Forbes.com

Friendliest Bike City – 2010 (#18) Bicycling Magazine

Best Cities for a Housing Recovery – 2009 (#3) Forbes.com

Cleanest Air – 2009 (#14) American Lung Association

Best Place to be a Woman – 2009 (#10) Women’s Health Magazine

Best City to Live in the U.S. -2008 (#3) MSNBC

UCCS – Best Regional Public Universities – 2010 (#6) U.S. News and World Report

Best Place to Raise a Family- 2008 (#9) BestLife Magazine

Best Cities to Work and Play – 2008 (#5) Kiplinger’s Personal Finance

Smartest Metro Areas – 2008 (#10) Bizjournals

National Undergraduate Programs – 2009 (#6) U.S. News and World Report

Come, join us.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

A plane was taking off from Kennedy Airport. After it reached a comfortable cruising altitude, the captain made an announcement over the intercom, "Ladies and gentlemen, this is your captain speaking. Welcome to Flight Number 293, non-stop from New York to Los Angeles. The weather ahead is good and, therefore, we should have a smooth and uneventful flight. Now sit back and relax - OH, MY G-D!"

Silence followed, and after a few minutes the captain came back on the intercom and said, "Ladies and Gentlemen, I am so sorry if I scared you earlier; but, while I was talking, the flight attendant brought me a cup of coffee and spilled the hot coffee in my lap. You should see the front of my pants!"

In unison, all of the passengers shouted back, “You should see ours!" 

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

UP, UP AND AWAY !!!  LOCAL SALES ARE LOOKING GOOD

Our local Residential real estate market experienced another solid gain through March 31, 2010. The 723 residential sales in March, 2010, represent an increase of 27.7% over March, 2009 and 26.4% over February, 2010. Our average sales price is now $215,625, an increase of 4% from February, 2010. Our median sales price is now $189,900, an increase of 4.3% from February, 2010. These increases represent 9 consecutive monthly increases in local residential sales. How many other communities can say that??

In addition to the rise in home sales, another significant indicator of our local economy’s strength is the income derived from sales taxes. Sales tax revenues were up 3.38% from March, 2009. This was the fifth consecutive month of increases and demonstrates our citizens’ confidence in our economy.

ONE MAN’S TRASH IS ANOTHER MAN’S TREASURE – OR – TO PUT IT ANOTHER WAY, ONE MAN’S FORECLOSURE IS ANOTHER MAN’S OPPORTUNITY

Even if you already own your home and don’t intend to sell, the real estate market has some opportunities that you should explore. First, let’s quote from some recent headlines: “Home Resales Continue to Streak” (The Gazette). “Check the Real Estate: It Is Time to Dive In” (The Wall Street Journal). “Homebuyers Scramble as Rates Jump” (Associated Press).

Are these headlines accurate? Well, all we can say is that we have negotiated more contracts in the past four weeks than we have in the last six months. Obviously, home prices are trending upward and people are jumping into the market, before they get priced out of it.

In addition to the rise in basic home prices, mortgage rates are also rising. On April 9, the Wall Street Journal reported the published mortgage rate from Freddie Mac was 5.21% and the Associated Press reported, “more than 5.3% in the past week”. These rates represent an 8 month high for 30 year, fixed-mortgages. This rise in rates can be traced to several factors e.g. An improving economy, the end of the government’s push to make mortgages cheaper by means of mortgage-backed securities, the beginnings of inflation, etc.

What do these trends mean to prospective homebuyers? Well, for every 1% rise in rates,300,000 to 400,000 “would-be-buyers” are priced out of the market. The rule of thumb is that, with every 1 percentage point increase in rates, a buyer’s purchasing power is reduced by about 10%. This means that the buyer who can qualify for a $300,000 home today, will only qualify for a $268,500 home when interest rates go from 5% to 6%.

Is this news bad for everyone? Well, for prospective buyers, it could represent bad news. It means they might have to settle for a less expensive home, or, if they are near the bottom of the ladder, they might have to defer purchasing in favor of renting. For investors, however, the current upward trend in prices and rates means that their pool of prospective renters will increase. To put it another way, for every buyer who is lost, another renter enters the market.

If you would like to explore the benefits of owning rental property, please give us a call. The time is right to consider this opportunity.

NEGOTIATING MEANS – “EVERYBODY WINS”

Since we announced our certification by CNE as a Certified Negotiation Expert, we have been asked by several of our clients and fellow Realtors why we are so strongly emphasizing the Realtor’s role as a negotiator in today’s real estate market. The answer is simple. When we consider that all Realtors, as well as their clients, now have access to all of the same internet sources of information about properties on the market, it’s obvious that the role of the Realtor must change.

In today’s market, the Realtor cannot remain merely the conveyor of data from the Buyer to the Seller, but must become, rather, the facilitator for resolving differences between the Buyer and the Seller. If Realtors cannot or will not serve as that facilitator, they really have nothing of value to contribute to the process. I was reminded of that fact just last week, when another Realtor submitted an offer on one of our listings.

Our client, the Seller, had ‘dug their heels in’ with an “absolute minimum” selling price of $319,000. The prospective Buyer had ‘dug their heels in’ with an offer of $315,000. At this point, the only options were to call off the deal, or, to negotiate. i.e. to make winners of both the Buyer and the Seller.

So, after reviewing the current market data with the Buyer’s agent, as a facilitator, we took the opportunity to point out several significant factors:

• The market has taken a turn for the better and, based upon the most recent sales data from all national and local sources, the experts say that it does not appear that prices will go down any further. In fact, prices have now started to rise
• Last month, properties in the neighborhood involved sold for 99.2% of their listed price, indicating that the Seller’s asking price was appropriate and reasonable.
• The difference between the two parties was only $4000. That translates into an increase in the monthly mortgage payment of only $22.08, or $1324 over the five-year period that the Buyer will probably own the house.
• When the income tax deduction on the loan interest is factored in, the actual difference between offer and demand is closer to $1000 over the five-year ownership period.
• The federal tax credit expires at the end of this month
• Through our preferred lenders, we had access to a better interest rate for the mortgage than the Buyer did. (That, alone, should have sealed the deal)

Considering all of these factors, the Buyer chose to sign the contract and both parties left the table happy. That’s the goal of negotiation and demonstrates the new role of the Realtor.

Today’s Realtor must know and understand the latest statistics and must be familiar with the local market. He/she must have developed good local resources for funding and services and must be willing to serve as a negotiator and facilitator. That way, “Everybody Wins”.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

We don’t know why the following joke seems, somehow, timely.

The photographer for a national magazine was assigned to get photos of an enormous forest fire. Smoke at the scene was too thick to get any good shots, so he frantically called his office to ask them to hire a plane.

"It will be waiting for you at the airport" his editor assured him. 

As soon as he got to the small, rural airport, sure enough, a plane was warming up near the runway. He jumped in with his equipment and yelled, "Let's go! Let's go!" The pilot swung the plane into the wind and soon they were in the air.

"Fly over the north side of the fire," said the photographer, "and make three or four low level passes." 

"Why?" asked the pilot.

"Because I'm going to take pictures! I'm a photographer, and photographers take pictures!"  the photographer replied impatiently.

After a long pause the pilot said, "You mean you're not the instructor?" 

AND BY THE WAY

Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn’t mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae. The rset can be a total mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Pettry amzanig huh? 

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LOCAL real estate INDICATORS LOOK GOOD

Last week, Summit Economics, LLC, published their Monthly Economic Indicators Report for the Colorado Springs Metro area. The report contains data through February, 2010, and contains encouraging news for the local real estate market.

In a comparison between February 2010 and February 2009, the numbers show:

             Initial claims for unemployment                            -16.4%

            Single-family home permits                                +213.2%

            Taxable retail sales                                             +4.7%

            Foreclosure filings                                             -16.4%

It’s obvious that our local residents are loosening up their purse strings and are starting to spend, again.

(Although our local economy is rebounding, the national picture is not universally good. We regularly speak with Realtors from around the country and many of them still do not see a light at the end of the tunnel. Their comments, combined with data from print and internet sources show a somewhat-fragile real estate market in many parts of the country.)

Another indicator that the real estate slump may be ending comes from the Case-Shiller Index of the 20 Major U.S.Metropolitan Areas. This organization normally tends to see the glass as half-empty, but their latest report shows increases for the last eight months and indicates that “the worst of the declines are behind us and we can at least move forward from here”.

On a personal note, during the past two weeks, we have received more inquiries, made more appointments, written more contracts and scheduled more closings than we did during all of the rest of 2010. It felt great !!!

Do all of these good indicators indicate a permanent upward swing in the economy? We hope so, but many of our Realtor friends are concerned that the recent increase in business is only a result of the fact that the Federal Tax Credit for Homebuyers will no longer be available for contracts written after this month. They fear that, when the program is finished, the slow times will resume.  It’s true that many previously-undecided Buyers are rushing to take advantage of this “Free Money”, before it is no longer available, but we are all hoping that the current flurry of business is just the beginning of an upward trend, rather than merely the end of a government stimulus.

Keep in mind, you must be under contract before April 30, in order to qualify for the tax credit of either $8000 or $6500. If you have any questions about this “Free Money”, please give us a call immediately, so we can get you started before the deadline.

Remember the time-honored formula, “Knowledge minus Action = Regret”

WHY ARE THERE MORE FORECLOSURES IN THE SUBURBS THAN IN THE CITIES??

Nick Turner, Managing Director at the Rockefeller Foundation, thinks the answer lies in the cost of transportation. The Rockefeller Foundation funds the Center for Neighborhood Technology (CNT) and that organization has just released an analysis of “Affordable Housing”. The analysis examined 337 metro areas across the country and encompassed 161,000 neighborhoods and 80% of the US population. It includes some startling facts.

Traditionally, the rule of thumb to determine whether a house is “affordable” has been that housing costs should represent 30% or less of the household income. Most Buyers use this rule-of-thumb in making their decision to buy. Using this measure, seven out of ten US communities have been considered “affordable” for the typical household. The CNT study shows, however, that, when transportation costs are added to the mix, the number of “affordable” communities declines from “seven out of ten” to “four out of ten”. This means that over 48,000 neighborhoods that have traditionally been classified as “affordable” are, in reality, unaffordable for the typical household.

The CNT study points out that transportation costs are the second largest household expense and can range from 12% of household income in efficient neighborhoods to 32% in locations where driving long distances is the only way to reach essential services.

The H+T Index gives a reliable estimate of each neighborhood’s average household transportation costs, a strong move toward a ‘no surprises, no sticker shock’ home buying or renting experience.

To see the complete study and check out your city and neighborhood, visit www.cnt.org

NEW EPA RULES RELATING TO LEAD BASED PAINT

A new rule from the Environmental Protection Administration addresses Renovation, Repair and Painting (RRP) activities in single and multi-family housing built before 1978. It requires that contractors, renovators, etc. be trained and certified in lead-safe work practices.

Property managers, if they use outside contractors to do RRP work, must use contractors who are trained and certified on the new rules. If managers use their own in-house workers to do RPR work, they must require that those workers be certified in lead-safe work practices and must notify tenants.

Realtors should make sure that any contractors they work with on a regular basis, or recommend to clients, must be trained and certified on the new rules, or the Realtor could be held liable.

Do-it-yourselfers will still be able to RRP work on their own without getting fined.

The new rules go into effect April 22, 2010.

QUIZ FOR THE DAY

To what conclusion do the following facts lead you?: 

• The Federal Reserve is going to stop buying mortgage-backed securities from Fannie Mae and Freddie Mac
• Shortages of building supplies such as lumber and copper are going to fuel Inflation
• Increasing bank regulations will soon raise the costs of borrowing money
• If I wait until after April 30 to sign a contract on my new home, I will lose the federal tax credit

Possible Conclusions (Pick one): 

1. I better wait until next year to buy my new home
2. I better buy my new home right now, or, kick myself for the next thirty years

If you picked #2, Call me ASAP, so we can discuss how to get you the best deal possible.  

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

JOKE OF THE WEEK

Explanation of Microsoft computer messages

It says: "Press Any Key"
It means: "Press any key you like but I'm not moving."

It says: "Press A Key"
(This one's a programmers joke. Nothing happens unless you press the "A" key.)

It says: "Fatal Error. Please contact technical support quoting error
no. 1A4-2546512430E" It means: "... where you will be kept on hold for 10 minutes, only to be told that it's a hardware problem."

It says: "Installing program to C:\...."
It means: "... And I'll also be writing a few files into c:\windows and c:\windows\system where you'll NEVER find them."

It says: "Please insert disk 11"
It means: "Because I know darn well there are only 10 disks."

It says: "Not enough memory"
It means: "I don't CARE if you've got 64MB of RAM, I want to sell you an upgraded computer."

It says: "Cannot read from drive D:...."
It means: "... However, if you put the CD in correct side up..."

It says: "Please Wait...."
It means: "... Indefinitely."

It says: "Directory does not exist...."
It means: ".... any more. Whoops."

It says: "The application caused an error. Choose Ignore or Close."
It means: ".... Makes no difference to me, you're still not getting your work back."