Real Estate Information Archive

April 22, 2020

 

HARRY’S BI-WEEKLY UPDATE

         A Current Look at the Colorado Springs Residential real estate Market

As part of my Unique Brand of 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.  

These are exactly my thoughts when it comes to this “invisible enemy” we’ve all been fighting.  As Colorado begins to open things up a bit next Monday, I wonder exactly how we begin to approach this new normal.  There are still so many unknowns and while I’m as ready as the next person for more normalcy, I’m hoping we move forward cautiously--one step at a time.

When it comes to residential real estate…it’s been confusing and inconvenient for some, to say the least.  As brokers, we have not been allowed to show homes up to this point.  What that has meant for some of my clients is that while they have had to close on homes they sold, they were unable to physically look at potential options for their next home.  I’ve actually sold three homes in the last two weeks—all while staying in my home office, and the closings I’ve attended took place in our individual cars.  To say this has been a wild ride would be putting it mildly.  

I miss the face-to-face interaction tremendously but have been thrilled to Zoom or FaceTime with clients, associates and others. I’ve enjoyed “seeing” everyone and spending time discussing real estate plans, attending virtual classes and simply catching up.  While things may be standing still in some ways, life still goes on, and I’ve enjoyed the interactions afforded through virtual means.

I’ve always emphasized the importance of looking at the economy and residential real estate through “local” eyes, and this is especially true at this point in time.  Colorado Springs was ranked the number one housing market in the country by Realtor.com in March.  While this likely won’t be the case for April, it’s indicative of the relative strength of our local economy heading into this pandemic and an indication that things will likely improve somewhat faster here than in other parts of the country.  In fact, I have a number of clients who are ready to view homes as soon as we are able, not to mention some who are relocating here and need housing as soon as possible.  

The spring buying season is here and those who have been considering a move are looking forward to listing their present home during this seller’s market.  Available listings, while not plentiful, will likely increase and mortgage rates are still relatively low. The dynamics are there, but now we wait for the signal to start showing homes again.  There are conflicting issues on the state and local levels as to what we as brokers are allowed to do in terms of showing homes and as soon as the rules are more concrete you will be the first to know.  In the meantime, any questions or concerns you may have—just give me a call at 593.1000 or email me at Harry@HarrySalzman.com and I’ll be happy to discuss them with you.

 

THE CARES ACT AND REGULATORY ACTIONS CONCERNING MORTGAGE AND PERSONAL FINANCE—PLUS COVID-10 FAQS

National Association of REALTORS

Congress has passed relief packages to respond to COVID-19 and bank regulators have also adopted many new policies in light of needs of COVID-19.  Please click here to read the provisions and actions that are designed to address home buying, homeowner/landlord, and personal finance issues.

If you have any questions, as always, just give me a holler.

 

COLORADO SPRINGS IS NUMBER ONE IN NATION EVEN AS NATIONAL HOME SALES DIP IN MARCH….AND HOME SALES ARE CONTINUING TO PUSH AHEAD

Realtor.com, 4.22.20

As I indicated earlier, it’s an interesting time for residential real estate.  Nationally, existing home sales dipped in March while locally we saw a better scenario.  However, despite the national numbers, they are not that far from what they were a year ago, and home prices continue to rise most everywhere, and especially here in Colorado Springs.

Here is a “Housing Snapshot” of existing home sales nationally in March 2020:

“Unfortunately, we knew homes sales would wane in March due to the coronavirus outbreak,” says Lawrence Yun, NAR’s chief economist.  “More temporary interruptions to home sales should be expected in the next couple of months, though home prices will still likely rise.”

“Earlier in the year, we watched inventory gradually tick upward, but with the current quarantine recommendations in place, fewer sellers are listing homes, which will limit buyer choices,” Yun added. “Significantly more listings are needed, and more will come on to the the market once the economy steadily reopens.”

So, there you go…. home prices are holding steady and increasing…despite the pandemic.  This is good news for us all and a great starting point for both buyers and sellers once we are able to get back to some semblance of normalcy.

 

HOW POTENTIAL MORTGAGE BORROWERS CAN COPE WITH A VIRUS-STRUCK MARKET

MortgageProfessor.com, 4.18.20

The housing finance system has not faced a pandemic such as COVID-19 before and within a very short time, a significant segment of potential home buyers who need mortgages to make their purchases, or to refinance the one they have, have had their ability to repay severely eroded—some because they have contracted the coronavirus, but more due to losing their jobs or their business.  In response to the widespread deterioration in the ability-to-pay of prospective borrowers, credit standards have been markedly tightened—with the impact especially severe on these with the weakest credit credentials.

In an attempt to repair the process, the Federal Reserve has entered the mortgage-backed securities (MBS) market with massive purchases.  While MBS prices ordinarily drive the entire market price structure, these purchases should have resulted in higher MBS prices and lower mortgage rates, but they haven’t. Of course, they might have prevented even higher rates.

The mortgage holiday, which allows existing mortgage borrowers who have lost their income as a result of the pandemic to defer their payments without penalty, has prevented a catastrophic explosion in default rates—for a while.  But borrowers will have to make larger payments in the future or extend the terms of their loans.

As I mentioned earlier, we need to look at all of this from a local perspective and while folks here have been affected by COVID-19 in various ways, we have been more fortunate than much of the country.

 

Here are some ways that potential borrowers can cope:

 

• Prospective Home Buyers Who Will Need Mortgages:  Those who have become sick, or lost their jobs or businesses, or had their credit score dropped significantly should put their purchase plans aside until their fortunes improve.  Those not directly affected by the pandemic should consider waiting a few months until the market has stabilized, and rates are back to where they were before the pandemic.  This applies to prospective refinancers.  

 

• Homeowners in Process of Refinancing:  If you have not already locked an advantageous rate, there is little likelihood that it will happen now.  Back out to wait for the turbulence to end.

If your rate has been locked advantageously, the lender can unlock it only if you lose your job or if you incur a new debt.  Lenders have become hyper-vigilant in checking employment status of borrowers with loans in process.

You are safe, however, against losing an advantageous refinance because your credit score has dropped.  Lenders cannot undo the credit score used to qualify you for 120 days.

 

• Home Buyers in Process with Purchase Agreements and Locked Mortgages:  Unless you lose your job or increase your debt, the rate lock will be honored, and the purchase will be executed.

If one or both of these conditions has been violated, the lock probably will be withdrawn, and the purchase will be cancelled.  Your best option in that case is having your deposit with the seller returned.  That will happen if your agreement of sale provides for the return of a deposit made by a prospective buyer whose failure to execute the transaction is due to a failure of the lender to deliver the promised loan.

 

Confusing?  You bet.  I’m guessing you might have some questions if any of the above scenarios apply to your individual situation, so please give me a call and we can discuss.

 

FEATURED LISTING:

Just sold my last three this week.  That gives me lots of time to devote to yours.  If you’re considering a move…please give me a call.

April 7, 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.

 

A word that today takes on

a whole new meaning.

 

In these troubled times,

home can be so much more

than a physical space.

 

Home is our workplace,

our daycare, our school, our gym.

 

But above all things,

home is a shelter.

 

A place where we can retreat to, 

where we are protected, shielded,

secure from the outside world.

 

A place where we can be 

our realest selves.

 

And while these days it can

be difficult to feel confined,

remember what home is.

 

A sanctuary.  A haven.

A place where we will weather a storm that,

like many others, also shall pass.

 

#StayHome

 

This was published by realtor.com in The Wall Street Journal on Monday, March 30, 2020.  I thought you would enjoy it as much as I did.  Realtor.com is donating $100,000 to Feeding America to help people most in need during the current crisis.

These are most certainly trying times for us all, but I feel confident we will emerge from them stronger than ever—both as a nation and as a world.  There is certain to be a new normal, but hopefully one where we can appreciate what’s truly important in our lives and be thankful for what we have.

Most everyone endures some sort of struggle in life, be it medical, financial, or one of many other things, and self-isolation is certainly more difficult for some than others.  It is my hope when we are finally able to return to some semblance of our previous lives that we can all take the time to realize we were all in this—alone, together—and that these shared experiences will bring more kindness to the world.

 

And now for statistics…

You will note that March (as well as first Quarter 2020) was once again strong in local residential real estate and while I expect April’s stats to be quite different due to this current medical crisis, we can all be grateful for the gains we have made.  I believe when the economy is back up and running, it will be running even faster in Colorado Springs as so many companies and folks have plans to relocate here.  It will take a little time, but fortunately for us, our local economy and job and housing markets have been very strong, and I see no reason for this trend to not continue.

If you have any questions, thoughts, or just want to chat about anything, please email me at Harry@HarrySalzman.com or call me at 593.1000.  I’ve got lots of time on my hands and would love to hear from you—if nothing more than to let me know how you are.

 

MARCH 2020 

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

Here are some highlights from the March 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 29.  For condo/townhomes it was 16.  

The sales price/list price for single family/patio homes was 100.5% and for condo/townhomes was 100.3%.  

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 March 2020 to March 2019 for All Homes in PPAR:                       

                        Single Family/Patio Homes:

·       New Listings were 1,820 Up 19.3%

·       Number of Sales were 1,270, Up 3.8%

·       Average Sales Price was $390,721, Up 11.3%

·       Median Sales Price was $352,400, Up 11.9%

·       Total Active Listings are 1,328, Down 9.1 %

·       Months Supply is 1.0, Down 2.4%

 

Condo/Townhomes:

·       New Listings were 249, Up 15.3% 

·       Number of Sales were 184, Up 8.9%

·       Average Sales Price was $261,252, Up 10.1%

·       Median Sales Price was $255,400, Up 16.1%

·       Total Active Listings are 152, Up 15.2%

·       Months Supply is 0.8, Up 1.7%

 

And a look at more statistics…

MARCH 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 3.4%
• Median Sales Price for All Properties were Up 12.2%
• Active Listings on All Properties were Down 22.8%

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:

 

THE STATE OF HOUSING:  GLOBAL INFLUENCE, TRENDS, CORONAVIRUS, AND OTHER CHALLENGES…AND POTENTIAL SOLUTIONS

RisMedia.com, 3.12.20

Residential real estate markets are a constant state of flux.  Nationally, there are continuous shifts between buyers’ and sellers’ markets, housing inventory, affordability and more.  Locally, the challenges and opportunities become even more diverse and nuanced.  Our recent sellers’ market has been the norm for quite some time due to the shortage of available homes for sale.

Here’s a brief look at today’s real estate market, both on a national and local level, from the perspective of several industry practitioners. 

 

• Global Events Impacting real estate.   The state of the economy and global occurrences can have a substantial influence on real estate, both nationally and locally.  Experts are currently monitoring the effects of the coronavirus impact on the economy, and therefore, real estate.

According to Lawrence Yun, chief economist for NAR, a month ago he would have said the biggest hurdle is a general housing shortage, but that’s changed.  “The coronavirus is an unprecedented event, and even though we don’t know how everything will play out, it’s currently a big uncertainty that’s hitting the stock market.”

Yun says it could be good or bad.  For some people, the money they have been saving for a down payment may have evaporated, but for others, low rates may provide an exceptionally enticing opportunity.  

According to a recent NAR survey, nearly one in four home sellers changed how their home is viewed on the market due to the outbreak, including stopping open houses, requiring that prospective buyers wash or sterilize their hands, asking buyers to remove their shoes or wear footies, and more.

A recent statement from Yun stated:

“The coronavirus is leading to fewer homebuyers searching in the marketplace, as well as some listings being delayed.  In the latest flash survey, 11 percent of REALTORS indicated a reduction in buyer traffic and 7 percent are reporting lower seller traffic when asked directly about the coronavirus impact on the market.  Given that a home transaction is a major commitment, the uncertainties on how the economy will play out and the spread of the virus itself are barriers to home-buying and -selling.  The stock market crash is no doubt raising economic anxieties, while the coronavirus brings fear of contact with strangers.  At the same time, the dramatic fall in interest rates may induce some potential buyers to take advantage of better affordability conditions.  It is too early to assess the likely impact as to whether lower interest rates can overcome the economic and health anxieties.  But the survey is implying, in the short term at least, that home sales will be chopped by around 10 percent, compared to what would have been the case, due to the spread of coronavirus.”

 

• A Shortage of Housing Supply, Rising Home Rates.  On both a local and national scale, a shortage of housing supply is still the predominant challenge.

“There’s a lack of housing,” says Yun.  “Fast price appreciation and increasing rents are causing major housing affordability challenges for both renters and first-time buyers.”

 

• Determining What Policies Should Address.  On a national level, Yun says the reform of Fannie and Freddie will be important, and less stringent over-the-top legislation about building activity would help “so more homes and apartments can be built”.  In addition, Zone tax incentives in economically displaced areas “could be the impetus for more building activity in what was once considered a less desirable area, but now with tax incentives becomes more viable,” he added.

 

• Where Should Change Come From?  The question at the forefront of the housing policy discussion would be…”Is governmental influence more effective at the local, state or federal level?”

Several brokers nationally say it’s a tricky question.  One of those interviewed for this story feels that housing policy at the local level is the most effective, with it not linked to social policy, but possibly linked in the sense of lending rules and affordability in areas.  Locally, there is an understanding from a community aspect, a demographics aspect and a socioeconomic aspect.  

Others also feel that a local policy is the way to go, as long as it does not discriminate on any social policies and is based on economic factors.

Still others believe that any successful, long-term reform should be addressed on a local level by each individual city and town because “each town has its own individual wants and needs depending on the wants and needs of its individual citizens”.

There are a lot of questions still being raised due to the uncertainty of the economy and the coronavirus.  Personally, I believe that once we get the coronavirus under control medically and people are able to return to work, the housing market will come back quickly on a local level.  This will primarily be driven by the incentive of low interest rates and the local housing shortage.  When will this happen?  That I can’t tell you, but I’m hoping it’s sooner than we all expect.

If you have any questions concerning local real estate, just give me a call.  

 

HOW TO DISINFECT A HOME CORRECTLY

RealtorMagazine, 3.17.20

HouseLogic.com has reported that the best cleaners are either a bleach solution or a 70% alcohol solution.  Here is the bleach recipe:  5 tablespoons (1/3 cup) bleach per gallon of water, or 4 teaspoons per quart of water”.  And be sure to ventilate properly while disinfecting with bleach.  Also, bleach can expire, so be sure to check the bottle’s expiration date, and never mix bleach with anything other than water.

If you don’t have bleach, use 70% rubbing alcohol, which is already diluted.  Disinfecting wipes use an ammonium compound, which could allow viruses to become resistant over time.  “Disinfection isn’t instantaneous,” says Erica Marie Hartman, an environmental microbiologist at Northwestern University.  “For a bleach solution, you want to leave it on the surface for 10 minutes before wiping it off,” she added.

Clorex wipes include instructions advising treating a surface “using enough wipes for the treated surface to remain visibly wet for four minutes”.  Other disinfectants, including bleach, have their own instructions for proper use.  Be sure to check the bottle before using.

Also, disinfectants don’t provide lasting protections.  If a sick person touches the surface right after it is cleaned, new germs will be left there.  According to Morgan Brashear, the scientific communications manager at Procter & Gamble, “The reality is that bacteria are complex organisms, and the vast majority of people don’t understand the intricate mechanisms that power them, which leads to them underestimating just how easily they can be reintroduced and quickly multiply on an unprotected surface.”

And there is such a thing as “over-disinfecting”, too.  None of us know the best way to prevent germs from traveling person to person, however, if we all try to follow the rules of social distancing, wearing masks and gloves when going out in public, and staying at home whenever possible, hopefully we can prevent ourselves from either being exposed to or passing on the coronavirus, or in fact, any virus.

I look forward to seeing you once again in person.  Until then…please stay well.