Real Estate Information Archive

April 18, 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.

 

 

RATES ARE STILL HIGH, AVAILABLE HOMES ARE STILL SCARCE, BUT…

…it couldn’t be a better time to buy or sell. 

Yes, you read that right.  In my 52 years of selling Residential real estate in the local market, I’ve witnessed just about every type of “market cycle” and there is one thing I can tell you for certain—it’s always a good time to buy or sell.

And, more importantly, there are always those who want or need to buy or sell at most every moment for various personal reasons.

This much I know.  While interest rates are high, there is no guarantee that they will drop significantly, and they could go higher.  Even if they do drop, they are not likely to ever fall to the historic lows we saw several years ago.  And when they do drop, you can always refinance at the lower rate.  In fact, some lenders are even writing that option into their loan documents.

Another way to get around the higher mortgage rates is to get a “buy down” from a builder or seller.  This will essentially lower your rate.

So, if the higher rates are a problem, there are ways around them, and I’m your guy when it comes to finding those ways.  My long-time experience, coupled with my Investment Banking background, gives my clients a distinct advantage in so many areas.

Home appreciation is another factor to consider.  As you have seen from the statistics I publish monthly, home values are not depreciating.  In fact, while they are not rising as quickly as in the recent past, they are “normalizing”, and it is very unlikely you will see home depreciation in the Colorado Springs area, especially with so many companies expanding or wanting to relocate here.

Home appreciation begins when you buy your home, no matter what your interest rate may be.  That means you are growing what is often your most valuable asset and that can be a considerable amount over time.  

If you have been waiting for rates to drop, either to buy for the first time or to sell and trade up, there is no better time than the present to find out how your wants, needs and budget considerations can work to get you the home of your dreams.

Just give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s discuss how together we can make that dream come true.

 

And, if you’ve got one minute and 39 seconds, take a look at my newest podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

 https://youtu.be/rS4mFhcQCJM

 

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!

 

HOUSEHOLDS MAY FINALLY BE ADJUSTING TO HIGHER MORTGAGE RATES

Fannie Mae, March 2024

A recent Fannie Mae Home Purchase Sentiment Index showed that the percentage of respondents who said it is a good time to buy a home increased from 19% to 21% while those that said it is a bad time to buy decreased from 81% to 79%.  As a result, the net share of those who say it is a good time to buy increased 4 percentage points month over month.

In the same survey, the percentage of respondents who say it is a good time to sell a home increased from 65% to 66%, while the percentage of those who said it is a bad time to sell decreased from 35% to 34%.  As a result, the net share of those who say it is a good time to sell increased 2 percentage points month over month.

This monthly Fannie Mae survey was launched in 2010 and polls the adult general population in the U.S. to assess their attitudes toward owning and renting a home, purchase and rental prices, household finances and overall confidence in the economy.

The March 2024 survey, while indicating that folks are still worried about the economy in general, still shows that households may finally be adjusting to higher mortgage rates and ready to again consider buying and selling.

So, once more, if you’ve been considering a move, get a leg up on the potential competition by starting now.

 

7 TYPES OF TAX-DEDUCTIBLE HOME IMPROVEMENTS

National Association of Realtors (NAR) 4.9.24

Many homeowners say they’re planning major renovations this year and some of these projects may be eligible for a tax deduction which could help alleviate some of the high costs of homeownership.

Here are a few types of tax-deductible home improvements.  

 

• Energy-Efficient Upgrades

 

• Clean Energy Upgrades

 

• Historic Home Upgrades

 

• Medically Necessary Upgrades

 

• Home Office Repairs and Improvements

 

• Rental Property Repairs

 

• Capital Improvements

 

As always, be sure to discuss this with your personal tax advisor to find out if they apply to your individual situation.

 

THE PERKS OF DOWNSIZING WHEN YOU RETIRE…AN INFOGRAPHIC

KeepingCurrentMatters, 4.12.24

 

Some Highlights:

 

• If you’re about to retire, or just did, downsizing can be a good way to try to cut down on some of your expenses.

 

• Smaller homes typically have lower energy and maintenance costs.  Plus, you may have enough equity built up to fuel your move.

 

• If you’re thinking about moving to a smaller home, call me to help go over your goals and look at all your options in the local market.

 

WHAT BUYERS, SELLERS WANT MOST FROM real estate AGENTS

NAR, 4.4.24

As most of you are aware, there has been a lot of news concerning real estate brokers, fees, and more.  Most of us in the industry are still digesting all the upcoming potential rules and regulation changes and I will keep you informed as I gather the information.

A recent article published by the National Association of Realtors (NAR) stated that the majority of home buyers and sellers—nearly 90% of them—rely on real estate agents or brokers, but a new study from NAR indicated that what they need could differ depending on age and experience in the market.

For example, home buyers don’t just want help with finding a home, but also with negotiating and with learning about the real estate process, according to NAR’s 2024 Home Buyers and Sellers Generational Trends Report.

The study reported that “While the internet is being utilized throughout the home search, agents remain the most-used information source in the home search, followed by mobile or tablet search devices”. 

“Sellers, as well, turned to professionals to price their homes to potential buyers, sell within a specific time frame, and find ways to fix up their homes to sell them for more,” the study reported.

 

Buyers want a “Guide and a Coach”.  

Younger home buyers are more likely to say that one of the most difficult steps in the homebuying process—behind finding a property and saving for a down payment—is understanding the real estate process and the steps they need to take, the study found.

Older adults, ages 44 and up, tend to feel more confident heading into the purchase process, generally having had previous experience buying a home.  Nearly a quarter of older adults cited “no difficult steps” in the homebuying process, the survey says.  But they still report struggling with finding the right property and with completing the paperwork in a transaction.

 

WHAT BUYERS WANT MOST FROM real estate AGENTS

 

 

As buyers reflected on their experience, they reported that the most commonly cited benefits provided by real estate agents and brokers during the home purchase process were:

 

• Helping buyer understand the process:  61%

 

• Negotiating better sales contract terms:  46%

 

• Providing better list of service providers (i.e. home inspectors):  46%

 

• Improving buyer’s knowledge of search areas:  45%

 

• Negotiating a better price:  33%

 

• Shortening a buyer’s home search:  23%

 

• Expanding buyer’s search area:  21%

 

When choosing an agent, buyers said their top criteria were the agent’s experience (21%), honesty and trustworthiness (19%), reputation (15%), and whether the agent was a friend or family member (12%).  An agent’s reputation tended to be slightly more important to older generations than to younger generations, the study showed.

Home buyers also said they valued constant communication from their real estate agent, identifying their top likes as agents who personally call them to inform them of activities (73%), those who send them property information and communicating via text message (71%) and those who send them postings as soon as a property is listed or when the price changes or the listing is under contract (70%).

 

And now to Sellers…

 

What Home Seller Want:  Make Their Home Stand Out

More than one-third of home sellers—across all age groups—relied on a referral from a friend, neighbor or relative to find their real estate agent, the survey found.  Only 5% relied on internet searches to find one.  

Sellers reported their top criteria for choosing their real estate agent was the agent’s reputation, their honesty and trustworthiness, and whether the agent was a friend or family member.

 

WHAT SELLERS MOST WANT FROM real estate AGENTS, BY LEVEL OF SERVICE PROVIDED BY THE AGENT

 

 

I found this study to be very informative and I hope you did as well.  It makes me even more proud of my 52 years in this industry, to still be working with not only past clients, but also with children and even grandchildren of past clients.  I truly value your loyalty and work hard every day to continue to earn your trust. 

As I’ve said time and again, I’m not only in this only for a sale.  I’m also here to help my clients and their families find the place that will bring them the most personal happiness, and in the process, help earn them the added dividend of home appreciation.

 

 

HARRY’S JOKE OF THE DAY:   (HMMM…)

 

April 5, 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 Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

SPRING BUYING AND SELLING SEASON IS ABOUT TO GET INTO FULL SWING…(I've still got Arizona Spring Baseball on the brain...full swing...get it?)...

And if you've even been thinking about buying or selling, sooner than later would be the best move (pun intended!)

Yes, mortgage rates are still considerably higher than two years ago, but home prices also continue to rise and don’t show any sign of stopping.  While they are rising much slower than several years ago, they are still rising as you will see from the statistics below.

What that means is that you are better off to buy now and refinance in a year or two when mortgage prices are lower.  Your home will likely appreciate during that time and of course, you will have the tax advantages that come with home ownership or buying as an investment.  

Of course, I’m not a tax advisor and can’t give you advice in that area, but it’s worth asking your investment and tax advisors to see how buying a home either for yourself or for investment can work for you.

There are even ways to negotiate mortgage rates and I can steer you in the right direction to see if that’s a possibility.

In fact, as most of you know, my help is invaluable.  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. 

And it’s important to take into consideration your individual wants, needs and budget requirements to come up with a viable plan.

April 1^st I began 52 years in local Residential real estate.  That, 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 47 seconds, look at my newest podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/aBCEJgmi3FA

 

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…

 

MARCH 2024

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

Here are some highlights from the March 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 52.  For condo/townhomes it was 47.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.5% and for condo/townhomes it was 99.6%.  

 

In Teller County, the average days on the market for single family/patio homes was 77 and the sales/list price was 97.2%.

 

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 March 2024 to March 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,337, Down 5.4%

·       Number of Sales were 941, Down 12.5%

·       Average Sales Price was $527,629, Up 0.7%

·       Median Sales Price was $470,000, Up 2.2%

·       Total Active Listings are 1,868, Up 26.2%

·       Months Supply is 2.0, Down 2.1%

 

 

Condo/Townhomes:

·       New Listings were 220, Up 7.8% 

·       Number of Sales were 152, Down 6.2%

·       Average Sales Price was $366,100, Up 2.8%

·       Median Sales Price was $335,000, Down 1.5%

·       Total Active Listings are 364, Up 54.2%

·       Months Supply is 2.4, Down 8.8%

 

Now a look at more statistics…

 

MARCH 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 13.9%

 

• Median Sales Price for All Properties was Up 0.2%

 

• Active Listings on All Properties were Up 13.4%

 

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:

 

MARK YOUR CALENDARS…THE BEST TIME FOR SELLING A HOME IS ALMOST HERE

National Association of Realtors (NAR) 3.28.24

The week of April 14 could offer the perfect mix of market conditions for home sellers, according to a new realtor.com study.

The study, an analysis of trends in home sales, finds that sellers could potentially fetch as much as $34,000 more for their home if they list between April 14-20 when compared to the start of this year.  

Researchers are betting a powerful combination of high buyer demand, low seller competition and fewer price reductions that week—all of which work in a seller’s favor.

According to Danielle Hale, realtor.com’s chief economist, “Spring is generally the high season for home sales, and buyers tend to be more plentiful earlier in the year.”  

 “Because listing a home is a process, sellers should start preparing now so they can list their home at a time when conditions are likely to be most favorable, giving them the best chance of selling their home quickly and at a competitive price”, she added.  

Realtor.com’s analysis identified the “best time to list” by analyzing week-to-week listing metrics, including home prices, days on the market and number of listings, from 2018 to 2019 and 2021 to 2023 (the study excluded 2020 due to the Covid pandemic’s impact on the housing market).

 

What Makes April So Great for Sellers?

To begin with, housing inventory is down nearly 40% nationally compared to pre-pandemic levels, which offers opportunities for sellers this spring.  

But mortgage rates are higher--hovering  around 7%...and some home buyers have hit their affordability level and are leery of getting into the market now.

Still, researchers remain bullish that the week of April 14-20 is the right moment for sellers to make a move.  

Here’s why:

 

Higher home prices.  Historically, home prices during that week are typically 10.4% higher than the start of the year.  The study noted that “If 2024 follows last year’s seasonal trend, the national median listing price could be $7,400 higher than the average week, and $34,000 more than the start of the year”.

 

Increased buyer demand.  That same week also tends to offer 18.4% more online views per listing than the typical week.  In fact, realtor.com noted that in 2023, listing views surged even higher—up 22.8%--when compared to weekly averages during the rest of the year.  However, mortgage rates are still the wild card and falling rates will likely increase buyer demand while higher rates could make buyers more skittish.

 

Fast sales pace.  Homes tend to sell quicker during the week of April 14, selling about nine days faster than other weekly averages.  While housing inventory is rising but remaining historically low, buyers are forced to continue to compete for fewer properties.

 

Less competition from other sellers.  Typically, there are nearly 14% fewer homes on the market during that week comparted to other weekly averages.  Sellers stand to benefit from the least amount of competition from other sellers at that time.

 

Fewer price reductions.  Sellers tend to less frequently lower their asking prices in late winter and early spring, realtor.com’s data showed.  Historically, about 24% fewer homes had a price decrease during the week of April 14 compared to the average week of the year.

 

So, what are you waiting for?  It’s almost the week of April 14-20.  So if you have even thought of selling, give me a call and let’s get you the best price for your present home.

 

ERA SHIELDS QUARTERLY STAT PACK

Data through Quarter 1, 2024, ERA Shields

Here is data from my company’s quarterly “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.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, March 2024

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

I’ve reproduced the first page of the graphics below.  To access the report in its entirety, please click here.  If you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD 

Updated March 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” you might enjoy.

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

To read the monthly report, please click here.