Real Estate Information Archive

 

May 23, 2016

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

CITY OF COLORADO SPRINGS SHOWS 40% BETTER MEDIAN SALES PRICE APPRECIATION THAN THE U.S.A. AS A WHOLE FOR FIRST QUARTER 2016 COMPARED TO FIRST QUARTER 2015

National Association of Realtors^®, May 2016

Wow.  And another Wow awhile I’m at it.  As most of you know, I track the quarterly Median Sales Price of Existing Single-Family homes, based on sales closed, for approximately 178 of the top Metropolitan Areas in the country.  While the city of Colorado Springs has done well in comparison to itself in the last four quarters, it has fallen behind percentage-wise to other measured cities and the country as a whole at times.

I’m thrilled to report that the most recent results show a whole other picture and from all the recent local housing market activity I’m not entirely surprised.  In the first quarter 2016, Colorado Springs has shown a 9 percent increase in the Median Sales Price of Existing Homes compared to first quarter 2015.  We outpaced the country as a whole (6.3 percent) and even the Western U.S. (7.1%).  Please click here to see the results of all measured cities. 

Considering the improved economy and job market locally and the continued low mortgage loan interest rates, this is not a huge surprise—but again—it’s most certainly a BIG WOW for us.

According to Lawrence Yun, chief economist for the NAR, “Current homeowners in many metro areas—especially those who purchased a home immediately after the downturn—have enjoyed a sizeable boost in housing equity and household wealth in recent years.”

He added that this is not the case for renters.  “At a time of stagnant wage growth (in general) and mounting rent increases…their inability to reach the market because of affordability and supply restrictions is contributing to rising wealth inequality in the U.S.”

This has been a very busy spring buying season but for reasons in addition to the usual ones.  We, like the rest of the country, are experiencing a shortage of listed homes and those that go on the market are selling fast—often with bidding wars—and going for listing price and more. 

With rental prices rapidly escalating and the uncertainty of how high the annual increases may be, a lot of folks are looking to buy—many for the first time.  Those people are in competition with others who are looking for investment properties to rent and oftentimes they get outbid by all cash offers or by those who have fewer restrictions in their offer. 

I’ve been telling you for some time that if you are in the market—you need to be prepared.  Prepared means knowing what you want, need and can afford and prepared to make an informed decision in a very short period of time—often minutes or hours.  I’m here to do the homework in helping you find what might be available for your personal situation and to help you find a reputable lender to get pre-approved, but I can’t make the final decision for you. 

Gone are the days where you can think it over for a day or two.  If you are seriously looking, you need to be ready to say “yes” practically on the sport when you find what you are looking for.

If you are planning to sell and trade up, you need to know exactly what you might do if your present home sells prior to you finding a new place because, at present, homes are not on the market for more than a month on average. 

It sounds like a lot of pressure, and it is.  That’s why you need a professional, knowledgeable real estate Broker like me on your side.  My 44+ years in the local arena, along with my national relocation network of Realtors/Brokers, gives me an advantage in knowing how to survive the buying and selling wars that are the norm today. 

If you are in the market, or know someone who is, please call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s get going.  There may not be a lot of inventory, buy somehow there is most always a home that’s exactly what you are looking for as long as you are open to the possibilities of new neighborhoods and other not-thought-of options.

 

THIS INFOGRAPHIC EXPLAINS THE housing market IN A NUTSHELL…

Keeping Current Matters, 5.13.16

Some Highlights:

• Home sales are up 1.5% year-over-year and 5.1% month-over-month.
• Demand is still much higher than the available housing inventory, which declined 2.2% from March 2015.
• This is the 49th consecutive month with year-over-year price gains.

 

WITH RISING RENTS, MORE INVESTORS ARE BEING COMING LANDLORDS

USA Today 5.15.16

With fewer homes on the market many folks who were previously “flippers”—those who bought low, fixed up the house, and turned around and sold it for a nice profit—are considering that it might be more profitable to become landlords. 

According to Lawrence Yun, one of the biggest reasons more investors are opting to become landlords right now is because they like the income potential.  “Rents have been rising, hovering near six-or seven-year high levels and are seeing close to 3.5% growth from 12 months ago,” said Yun.  That means not just getting a steady flow of cash from a tenant but also the prospect of an even higher income stream with each passing year.  This is looking good right now considering what savings accounts and Treasury bonds are now paying,

The laws of supply and demand are on the landlords’ side at present.  On the supply side, there aren’t enough rental units available, with vacancy at just 7% first quarter 2016 according to the U.S, Census Bureau.  And vacancies are even less here in Colorado Springs!

On the demand side, many young people are being forced to rent due to having to be mobile for their professions.  They also don’t always have the means or desire to purchase property.  Older Americans are also choosing to rent as well.

If you are thinking of becoming a landlord there are a number of things to consider besides having the capital to do so. 

According to Yun you should:

• Think local.  Successful investors prefer properties within a 30-minute drive of their primary residence, and not simply so they can be “on-call” to be a handyman.  “It’s about the unknown and a preference for knowing their local market,” says Yun.  Even if all the data and statistics may say the investment property 200 miles away may provide a better return, most people don’t feel comfortable not knowing the real estate market conditions.”  However, if the local rental market is not robust—you are better looking at other investments.

 

• Look into regulations and taxes.  As a landlord you have to report any rental income to the IRS and you’ll be eligible for certain property-related deductions to offset any taxes.  Therefore, running this by your accountant is extremely important.  Understanding tenant and landlord rights is equally important and these vary by municipality and state.

 

• Account for maintenance and vacancy costs.  It’s common for new landlords to underestimate the operating costs of rental properties, especially the maintenance and turn costs when a tenant vacates.

 

• Think ahead.  If your rental is in a town where your children may want to go to college or if it’s a smaller home that you may consider moving into when you retire, there may be added benefit to owning a rental property beyond the short-term goal of making some money.  It’s possible the property you buy now to rent could be put to some other use further down the road.

 

I’ve been selling a number of homes in the last few months to those who have realized that they are getting a greater return from real estate than from any other long-term investments.  However, as I’ve said before—not everyone is in a position to be a landlord.  I’ve had many years of experience in this arena personally and if you’re interested, I would be more than pleased to share my experiences with you.  

And…if and when you are ready to get into the rental market, I’m here to help you all the way with finding the right property.

 

FOR THOSE WHO NEED ANOTHER REMINDER OR TO PASS ON TO SOMEONE WHO DOES…

Keeping Current Matters, 5.20.16

Some Highlights:

• The percentage of income needed to afford a median priced home is almost half the percentage of income needed to afford median rent.
• Buying costs are significantly less than renting costs.
• The percentage of income needed to afford a median priced home is less than the historic norm.

 

AN INTERESTING TIDBIT AND ONE TO WHICH I HEARTILY CONCUR…

The Gallup organization recently released a survey in which Americans were asked to rank what they considered to be the “best long-term investment.”

real estate ranked number one, with 35% of those surveyed saying it was a better long-term investment than stocks & mutual funds, gold, savings accounts or bonds.

 

OTHER INTERESTING FACTS FROM THE U.S. CENSUS BUREAU…

• Denver is now the 19^th most populous city in the nation with an estimated 2015 population of 682,545.

 

• El Paso County had an estimated 2015 population of 674,471.

 

• Colorado Springs ranked as the 40^th biggest city in the country with 456,568 estimated 2015 population.

 

All I can say is another “WOW”.  No wonder I’m getting so many calls from folks who might be working in Denver but want to live here.  Lots more open spaces and certainly less traffic.  But it’s still hard for me, after living here for 44+ years, to realize that we have grown so big.  And…I guess it’s not going to stop there.

 

 

 

 

 

 

 

 

May 3, 2016

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.

 

 

APRIL 2016 WAS THE 21^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And here we go again…. I am happy to once again report that prices and sales are continuing their upward climb in the Residential real estate Market for the Pikes Peak Region.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 19.3% over April 2015 while Condo/Townhome sales are up 18.8%.  The average Days on the Market is a low 32.  Homes are selling, on average, at 99.8% of the list price.  Had there been more homes available for sale, these numbers might have even been higher.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year.  However, new listings are slightly up at 6.6% year-over-year for Single Family/Patio Homes and 1.2% for Condo/Patio Homes.

Our city is continuing to make national news as Colorado Springs was recently ranked as the 12^th hottest housing market in the country on the National Association of Realtors^®’ list of the Top 20 nationally, based on the speed at which homes are selling.

I’m continuing to see homes go faster than I can ever remember.  Recently I’ve been out with clients to see homes and we find out that they are “under contract” before we even get to view them.  The spring season has brought a few more homes to the market, but they are moving fast.

With rental rates steadily increasing, I’m finding more folks interested in either buying for the first time or buying for investment purposes.  In either case, those “starter” homes are going quickly too. 

So I’m going to tell you once again. NOW is the time to make your move if you’ve considered selling to trade up or to move to a new neighborhood.  The longer you wait, the more it’s going to cost you as home price increases are showing no sign of tapering off yet.  Interest rates are still historically low, but that too is set to change before year’s end. 

It’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present.

And when it comes to making an offer…it’s important to makes yours stand out.  That’s where my 43 plus years of residential real estate experience come in very handy.  I know how to write an offer and negotiate a deal that gets to the closing table.  It may not come out on top every time, but my success rate is just another feature of my personal brand of customer service.

When preparing to sell your home, a factor to consider with homes selling so quickly is that you need to have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the April 2016 PPAR report.  Please click here to view the detailed 14-page report, including charts. If you have any questions, as always, just give me a call.

In comparing April 2016 to April 2015 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1,952, Up 6.6%
• Number of Sales are 1,268, Up 12.8%
• Average Sales Price is $274,891 Up 3.4%
• Median Sales Price is $248,050, Up 5.6%
• Total Active Listings are 2,080, Down 22.8%

                        Condo/Townhomes:

• New Listings are 249, Up 1.2%
• Number of Sales are 176 Up 36.4%
• Average Sales Price is $176,627, Up 5.9%
• Median Sales Price is $160,000, Up 10.3%
• Total Active Listings are 160, Down 43.1%

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                         Median Sales Price             Median Sales Price

                                                      April 2016                              April 2015

Black Forest                            $435,500                              $390,000                       

Briargate                                  $322,500                              $297,750       

Central                                     $189,000                              $180,000

East                                          $215,500                              $198,750

Fountain Valley:                      $227,250                              $206,000

Manitou Springs:                    $322,500                              $376,500

Marksheffel:                             $259,900                             $248,000

Northeast:                                $250,000                              $218,500

Northgate:                                $433,450                              $411,000           

Northwest:                               $330,000                              $317,000

Old Colorado City:                  $188,125                              $265,000

Powers:                                    $240,000                              $224,950

Southwest:                              $246,000                               $288,000

Tri-Lakes:                                $448,442                               $368,000

West:                                       $240,000                               $252,000

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

INVESTMENT HOME SALES ON THE RISE

Keeping Current Matters,  4.29.16

As I just mentioned, Investment Home Sales are increasing along with the increased rental rates all across the country.  Here is an infographic depicting this:

Some Highlights:

• 2015 marks the first year-over-year increase in investment home sales since 2011.
• 62% of all investment homes purchased were single-family homes.
• The South saw the highest percentage of investment home sales (39%) with the West coming in second (28%).

Being a landlord is not for everyone, but if this is something you have considered, now is the time to discuss the pros and cons.  As one with a lot of experience in this arena, I’d be delighted to share my insights with you.  Just give me a call and let’s discuss whether this is an option for your investment portfolio. 

 

APRIL ECONOMIC DASHBOARD

As a sponsor of the Southern Colorado Economic Forum, I receive these periodic updates from the UCCS College of Business.  It is my pleasure to share them with you and you can click here to see the charts in their entirety. 

Some things to note:

• Q4, 2015 real GDP (gross domestic product) was revised upwards again from 1.9% to 2.0% comparing to Q4 of 2014.  The increase was due to positive contributions in personal consumption, residential fixed investment and federal government spending.

 

• Consumer sentiment in February was 91.0.  Higher consumer confidence is fueling domestic growth and it is mostly due to job and modest wage gains as well as continued low interest rates. 

 

• El Paso County’s unemployment rate continues to fall and was 3.9% in February.

 

FOUR HOUSING PREDICTIONS FOR THE REST OF 2016

Realtor Mag, 4.25.16

Economists at Freddie Mac are remaining upbeat about the housing market’s outlook for the rest of the year despite recent data that showed a gloomier first quarter in economic growth than originally projected and have said in the April Outlook that housing will “maintain its momentum in 2016 and be an economic engine of growth”.

“We’ve revised down our forecast for economic growth to reflect the recent data for the first quarter, but our outlook for the balance of the year remains modestly optimistic for the economy,” say Sean Becketti, Freddie Mac’s chief economist.  “However, we maintain our positive view on housing, In fact, the declines in long-term interest rates that accompanied much of the recent news should increase mortgage market activity, particularly refinance.”

Here are their predictions:

 

• Employment:  The labor market is expected to stay strong.  The unemployment rate is projected to drop back below 5 percent for 2016 and 2017. 

 

• Mortgage originations:  Loan originations are estimated to rise by $50 billion in 2016.  This boost is a result of low mortgage rates that are fueling a refinancing boom.

 

• Mortgage rates:  Low mortgage rates are expected to stick around longer. 

 

• Housing prices:  Home prices will rise by 4.8 percent in 2016 and by another 3.5 percent in 2017, Freddie Mac researchers predict.  These rising home prices will lead more homeowners to see greater equity gains.

 

WHY AMERICANS REALLY BUY HOMES

Realtor Mag, 4.19.16

According to the “Homebuyer Insight Report” recently released by Bank of America, for more than half of Americans, the main reason to buy a home is simply because they want a place to call their own.  They value the emotional benefits of owning a home as much as financial ones.

The survey revealed the following top emotional triggers for buyers:

• Want a place to call their own:  52%
• Always something they wanted to do: 43%
• Want to put down roots: 31%
• A place to make memories: 28%

As for the most influential factors, the survey found Americans are motivated to buy a home for these reasons:

• Better than paying rent: 37%
• Saved enough money: 26%
• Have a stead job: 21%
• Good time to buy a home: 15%

Survey respondents also were asked to define home ownership.  Here’s what they said it means to them:

• Security: 60%
• Family: 58%
• Responsibility: 58%
• Happiness: 57%

 

SKY SOX TICKETS ARE YOURS FOR THE ASKING

It’s baseball time again and, as always, I have four first row seats right behind the home team dugout.  These are yours for the asking, but on a first-requested, first-served basis.  Just give me a call and I will be happy to reserve tickets for you for any home game of the season.  But better hurry as they tend to go quickly once the warmer weather is here and school is done for the year!

 

FEATURED LISTING

YOUR HOME CAN BE FEATURED HERE.  JUST GIVE ME A CALL AND LET’S DISCUSS THE POSSIBILITIES. 

I’VE SOLD ALL I’VE GOT, SO THERE’S EVEN MORE TIME TO DEVOTE TO GETTING YOURS SOLD.