Real Estate Information Archive

May 21, 2018

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.

 

THE MISSING PIECE OF THE real estate PUZZLE IS ONLY A PHONE CALL AWAY

The residential real estate market is still in quite a frenzy due to a lack of available homes, rising mortgage interest rates, multiple offers and bidding wars--just to name a few reasons.  Sometimes it reminds me of trying to work a jigsaw puzzle but with no one way to complete it.

It takes real ingenuity, extensive experience in both the real estate and money markets and a whole lot of tenacity and persistence to get a deal done these days.  And that’s why my clients tell me time and again that they are so glad to have me as their real estate advocate.

I’m the “missing piece” of the real estate buying and selling puzzle.  

My 46 plus years in local real estate combined with my investment banking background give me a “heads up” over most when it comes to making deals that have a good chance of making it to closing.  I hate seeing my clients disappointed and work with them until we can find a “happy ending” no matter how long it takes.  

These days of quick turnarounds and multiple offers makes it imperative to have someone like me on your side.  I know the “ins and outs” of deal making, have experience in competitive offer environments and will work on behalf of my clients to get the job done.  

Having just returned from a national relocation conference, I found my peers all around the country suffering the same problems we face in the Colorado Springs arena.  The lack of homes is driving up prices and with interest rates hitting a 7 year high this past week this translates into an even greater frenzy for buyers and keeps the current “seller’s market” going strong.  I’ll address the interest rate hike later in this eNewsletter.  

According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), consumer frustration is rising in hot markets like ours.  He said that “home shoppers are struggling to find affordable properties to buy, and the prevalence of multiple bids is pushing prices further out of reach”.

His solution?  “Homebuilders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability.”  

If you’re considering selling to trade up—NOW is the time.  You will more than likely get more for your present home than you might expect, but it will likely sell fast so you need to know in advance where your next move will be.  

And…if you’re looking to buy for the first time or for investment purposes, you don’t have any time to wait either.  Prices are continuing to climb, and interest rates are going up with them.  Each day you delay is going to cost you in terms of monthly payments and more.  

If new construction is something you’ve been considering, I’m your guy, too.  I’ve got a good working relationship with local builders, understand the entire process and can help you get the most for your money, at no additional cost to you.

So, there you go.  My advice? If you are even thinking of making a move, call me yesterday. I don’t say that factiously—you don’t have a minute to waste.  Just give me a call at 593.1000 or email me at Harry@HarrySalzman.com today and let’s get the ball rolling to make your residential real estate dreams come true.

 

MEDIAN HOME GROWTH IN COLORADO SPRINGS IS MORE THAN TWO TIMES THAT OF THE U.S.A. 

National Association of Realtors

NAR just released its latest quarterly report of “Median Sales Price of Existing Single-Family Homes for Metropolitan Areas”,which compares the top 178 metropolitan statistical areas (MSAs).  

Nationally, the median existing single-family home price for the first quarter 2018 was $245,500, which is up 5.7% from the first quarter 2017.  The median sales price for existing single-family homes in Colorado Springs was $296,600, for a year-over-year increase of 11.5%.  This is more than two times above the national average and is great news for local homeowners.  

It’s also great news for anyone looking to buy here as our home values have consistently increased in recent times and I predict they will continue to do so for the foreseeable future.

For the first time, NAR has released a survey ranking these same 178 MSAs by housing “costs”. Colorado Springs is ranked as number 27 when it comes to prices—again, excellent news for homeowners and those looking to buy in our local area.  

For a detailed look at these surveys, please click here for the alphabetical listing and click here for the ranked listing by housing costs.

Any questions…you know where to find me!

 

APRIL 2018 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR CONTINUING UPWARD TREND IN GREATER DETAIL

Pikes Peak REALTORS^®Services Corp., 

These reports contain much greater detail than the first of the month reports I share and cover ALL residential areas in the Pikes Peak Region. 

The local median sales price increase year-over-year in all properties was 11.3%.

In the recently published April 2018 Monthly Indicators andLocal Market Updatefor El Paso and Teller Counties, new listings year-over-year were up 3.5% for the single-family/patio homes and down 23.6% for condo/townhomes.  

 

     The “Activity Snapshot”shows the one-year change:

• Sold Listings for All Properties was down 2.0%
• Median Sales Price for All Properties was up 11.3%
• Active Listings on All Properties was down 23.2%.

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 34-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, Briargate, below to show you the type of information available for all local areas.

 

For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.

 

ERA OF ULTRACHEAP MORTGAGES ENDS AS RATES HIT 7-YEAR HIGH

The Wall Street Journal, 5.19.18

Mortgage rates last week reached their highest level since 2011, signaling a shift of loans from a period of historic lows to a higher-rate environment.  

The average rate for a 30-year fixed-rate mortgage rose to 4.61% this past week from 4.55% the week prior, according to data released last Thursday by Freddie Mac and the increase has come faster than many economists predicted. A surging economy, the prospect of wage gains and a steep rise in prices for commodities such as lumber and gasoline have stoked inflation worries.

As rates approach 5%, the risk of the phenomenon known as “rate lock” grows, economists said.

A one-percentage point increase in rates can lead to a deduction in home sales of 7% to 8%, and the recent increases in home prices and mortgage rates could especially hurt first-time and moderate-income borrowers, according to Lawrence Yun.

What this can mean in real dollars, for example:

A $300,000 home last month at a 4.25% interest rate on a 30-year fixed rate loan would translate to a monthly payment of $1475.82.

At the present rate of 4.75% that monthly payment would be $1564.94, or a monthly increase of $89.12.

At the predicted 5% before the end of 2018, the monthly payment would be $1610.46—up $134.64 a month.

What’s more, the Federal Reserve, which raised rates in March, has said it expects to raise short-term rates two to three more times this year and three times next year.

This should come as no surprise to those of you who read my eNewsletters as I’ve been telling you to expect this for some time now.  So what I will repeat again—if you’ve been sitting on the fence—time to get off of it.  

Give me a call today and let’s see how we can put your residential wants, needs and budget to work before rates and prices get any higher.

 

 

May 3, 2018

 

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.

 

***EXTRA***EXTRA***EXTRA***

 

As I’m having breakfast and reading “The Wall Street Journal” and our Colorado Springs “Gazette” I took a double take and wanted to share it with you.

When you see the headlines below you can begin to understand my frustration in wanting to keep you informed of what’s happening with interest rates in a timely manner.  

Interest rates going up?  Interest rates remaining unchanged?  You can decide for yourself but I’m going to stick my neck out and say they are most definitely going up.  In any case, I thought I’d send you another “Joke of the Day”.

 

HAPPY THURSDAY TO ALL.

May 3, 2018

 

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.

Another crazy month in the life of your “real estate Therapist”.  Some days I find it difficult to believe just how nuts the residential real estate market has become here in Colorado Springs.  I’ve been telling you for a while about the lack of existing homes here for sale and that trend continues in full force.  

Spring home sales locally and in much of the country are slowing due to tight inventory at the lower end of the market, while lack of inventory in all price ranges is driving prices up, which is keeping sales activity below year ago levels according to the National Association of Realtors (NAR).

Lawrence Yun, chief economist for NAR, says “The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford.”

“Realtors throughout the country are seeing the seasonal ramp-up in buyer demand this spring but without the commensurate increase in new listings coming onto the market,” said Yun. “As a result, competition is swift, and homes are going under contract in roughly a month, which is four days faster than last year and a remarkable 17 days faster than March 2016.”

“Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets—especially those out West,” he added.  

And, according to surveys by NAR, Colorado remains one of the “hottest markets” in the country.  As I told you last month, Colorado Springs is an even “hotter” market than Denver – at number 6 in the survey--so this only adds to the frenzy I’ve been experiencing.  

For example locally, in the $300,000 or under range there are so few homes to be had that they are sometimes sold without even a showing.  

Several weeks ago I started working with a young couple who were recently transferred here.  Since this would be their “starter” home I thought I knew exactly what they would need.  While I was correct in their needs, I had no idea how difficult it would be to find them a home.  

Almost every home that came on the market in their price range was sold before we could even see it as there was a “revolving door” of agents and buyers in line for each home my clients wanted to see. Scheduling visits to prospective homes around the work schedule of my clients was a necessity of course, and I soon realized that looking for a home in this price range was going to become a full-time job for this couple.  

On one home we offered $20,000 over listing price and with 11 offers we still did not get the home. I advised my clients that going more than that over listing price and getting in a bidding war would be the wrong thing to do as they probably would need to live in the home longer to get their money out of it with reasonable appreciation when it came time to sell and trade up.

This process was repeated several times during the following week and then finally my clients got their home—without ever having walked into it!  Yes, you read that right.  We made the offer at the moment the home was listed without even seeing the home in person because we did not want to face disappointment again.  Having me as their agent helped as I wrote the offer in such a way that it would be difficult to get turned down and fortunately, it didn’t.  As I’ve said time and again, when it comes to helping my clients achieve their residential real estate goals—“one way or another”—I find a way to make it happen.

This is only one of the “home war” stories I’ve lived in the past year and things don’t seem to be letting up.  Folks are realizing that interest rates really are going up and aren’t likely to be this low again for quite some time, if ever.  For those of us who were around for the 15% and higher rates of the 1970’s and ‘80’s, a 5 percent, 30-year fixed-rate mortgage doesn’t seem high. But for the millennials who have never seen rates higher than 3-4 percent—each increase is astounding.  

My advice to those of you who have been sitting on the fence for whatever reason—this could be your last chance for a while to sell your present home at a great price and put the equity to work by trading up while interest rates, while not historically low, are still low in comparison to days of yore.

If you’re even considering a move and wondering how all of the above applies to your individual wants, needs and budget,simply give me a call today at 593.1000 or email me at Harry@HarrySalzman.comand let’s see how I can put my special brand of customer service to work for you.

 

And now for April statistics…

Homes are selling at 100.7% of listing price with the average days on the market at a very low 24.  

This continues to be great news for both buyers and sellers, despite the fact that interest rates are rising.  However, as I just mentioned, it does foster the necessity for fast decisions, so be forewarned.

As you will see in the Cumulative Year to Date Summary total sales numbers year over year in Single Family/Patio Homes are up 3.2% and down 1.3% for Condo/Townhomes. As you might imagine, this number would have been much higher had there been more homes for sale. 

The Monthly Summary shows that compared to a year ago, total active listings are down 2.9% for Single Family/Patio Homes and down 16.2% for Condo/Townhomes. New listings are up 8.5% for Single Family/Patio Homes and down 21.7% for Condo/Townhomes.  

I’m hoping the increase in new listings for single family/patio homes means that folks are finally seeing that this is a great time to sell and trade up. However, the reality is that total active listings are at a record low and remain a factor in the median price escalation.  

For more details, please see the following article.

 

APRIL 2018 WAS ANOTHER OUTSTANDING MONTH IN LOCAL RESIDENTIAL real estate

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

Here are some highlights from the April 2018 PPAR report.  A look at the Median Sales Prices should keep a big smile on many of your faces!  Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing April 2018 to April 2017 for All Homes in PPAR:

                        

                         Single Family/Patio Homes:

·       New Listings are 1,972 Up 8.5%

·       Number of Sales are 1,286, Down 1.8%

·      Average Sales Price is $348,527, Up 11.8%

·      Median Sales Price is $305,000, Up 10.9 %

·       Total Active Listings are 1,524, Down 2.9%

·       Months Supply is 1.2

 

                        Condo/Townhomes:

·       New Listings are 209, Down 21.7%

·       Number of Sales are 210, Up 1.4%

·      Average Sales Price is $236,915, Up 18.7%

·      Median Sales Price is $212,500 Up 11.8%

·       Total Active Listings are 93, Down 16.2%

·       Months Supply is 0.4

 

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

                                                Median Sales Price               Median Sales Price

                                                        April 2018                               April 2017

Black Forest                             $575,000                              $529,500                        

Briargate                                   $428,696                              $390,000            

Central                                     $240,115                              $244,945

East                                           $272,000                              $244,500

Fountain Valley:                      $275,000                              $242,000

Manitou Springs:                    $355,000                              $386,500

Marksheffel:                             $304,751                             $296,500

Northeast:                                $300,000                              $275,000

Northgate:                               $448,700                              $439,950            

Northwest:                               $470,000                              $397,500            

Old Colorado City:                  $352,000                              $252,450

Powers:                                    $289,000                              $255,000

Southwest:                              $419,250                              $290,000

Tri-Lakes:                                 $544,482                              $450,000

West:                                        $285,000                              $245,500

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

 

JUST TO COMPARE OUR NUMBERS TO THE U.S. HOUSING SNAPSHOT FOR MARCH…

This will give you an idea of just how well our residential real estate market is doing in comparison to the national average in March:

 

MORE AMERICANS ARE HOMEOWNERS IN 2018

RealtorMag, 4.27.18

More Americans became homeowners over the last year as the number of renters continued to decrease.  Homeownership rate in the first quarter 2018 was unchanged at 64.2 percent, higher than last year’s 63.6 percent, the U.S. Census Department reported last week.  This is also the fifth consecutive quarter of yearly increases in the ownership rate.

Since hitting a 50-year low in 2016, the homeownership rate has been gradually climbing back.  The rate peaked in 2004 at 69.2 percent, but despite recent climbs, it still remains below the 25-year average of 66.3 percent.  Meanwhile, the number of renters has dropped.

More young Americans are buying homes with the ownership rate for those under age 35 at 35.3 percent in the first quarter, which is a full percentage point higher than a year ago.

The homeowner vacancy rate dropped to 1.5 percent in the first quarter—the lowest vacancy rate since 2001, the Census Department reported.

 

 

MORTGAGE LOAN RATES ARE THE HIGHEST SINCE 2013

The Gazette, 4.27.18

Long-term mortgage rates continued to climb last week, reaching their highest level in more than four years.  It was the third straight week of increases for long-term mortgage rates with Freddie Mac saying that the average rate on 30-year, fixed-rate mortgages jumped to 4.58 percent from 4.47 percent two weeks ago.  By contrast, the benchmark rate averaged 4.03 percent a year ago.

The average rate on 15-year fixed rate loans rose to 4.02 percent from 3.94 percent for that same time period.  

This should not come as a surprise to you as I’ve been telling you to be prepared for this inevitability for quite some time now. 

What it means to you now is that you can no longer afford to wait if a move is in your near future.  If you do, it’s going to cost you—not only in the higher cost of a home, but also in the higher monthly payments.

So one more time—if you’re ready—I’m willing and able to help you achieve any and all of your residential real estate goals. But don’t delay—time is no longer on your side.  Give me a call at your earliest convenience and let’s see how we can make a move happen for you.