Real Estate Information Archive

May 24, 2023

 

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.

 

 

SPRING BUYING AND SELLING SEASON STILL GOING STRONG

When I mentioned two weeks ago that April had been my busiest April in many years, I had no idea that May would be even busier.  And yet it’s true.  I know that the rest of the country is just starting to see a bit more Residential real estate activity, but here in the Colorado Springs area it appears we are moving steadily ahead.

There are several reasons for this, including a number of folks relocating here either for work or to be near family, new employers relocating to the Springs and bringing along their employees, and simply those who no longer want to put their plans on hold when it comes to selling to trade up or move to a new neighborhood.  

I’ve also run into situations recently where there have been multiple bids on properties my clients have wanted as well as offers over list price.  

A recent study by Bank of America shows that “U.S. homebuyers are still committed to their plans to buy a property despite rising interest rates, high inflation and slowing growth”.  The study also showed that “Gen Z and Millennials are showing extreme resilience even though the market is more competitive” and that “the dream of home ownership is alive and well despite the challenges”.  

More than half of those surveyed by BofA said they were looking to buy a house because they were tired of renting and the rent increases, as well as having the desire to start building equity in a home of their own.

This came as no surprise to me.  Having just celebrated my 51^st  year in the local Residential real estate arena, I’ve witnessed most every cycle imaginable and have seen mortgage rates as high as 21%.  And, as I have always maintained—there are always those who need or want to sell, and those who need or want to buy.  And my investment clients are constantly on the lookout for properties that will be good rentals for those who cannot, or chose not, to own.

I’ve found that price and interest rates are not a determent to those who have the wants, needs and budgets to invest in home ownership, either for themselves or to rent to others.

At one time folks from other, more expensive parts of the country were moving here and finding they could get a lot more home for their money, and for some that is still the case.  However, as more and more people locate here, and home prices continue to rise even though more realistically than in the most recent past, this is not always the case.

Colorado Springs is still in the top 10 of U.S. New and World Report’s “Best Place to Live” rankings of 150 metro areas, but we’ve dropped a few spots to number nine in part due to housing affordability and typical costs of goods and services.  We’ve simply become too popular for our own good so to speak. While those of us who already live here know how much our city has so much to offer…like it or not, once others discover that-- they want it too! 

I hope I’m getting across the point that if you have even considered or been waiting for the “right” time to sell and trade up or move to a new location or to buy for the first-time or for investment purposes, there’s no better time than NOW to start the process.  

Let’s sit down together to find what you are looking for.  I can help figure out how to put your individual wants, needs and budget requirements to the best use in finding what you and your family want and deserve. 

It all starts with a call to me at 719.593.1000 or an email to Harry@HarrySalzman.com .  I look forward to talking with you soon.

 

THE BEST TIME TO SELL YOUR HOUSE IS WHEN OTHER’S AREN’T SELLING

Keeping Current Matters, 5.11.23

Keeping in mind that these statistics are national and as I just mentioned home sales here are picking up, there are still fewer homes for sale than are needed and it’s always a good idea to put your present home on the market when it’s favoring sellers.

Some folks are still waiting for rates to go down before listing their homes and while this “wait and see approach” is right for some, it also creates an opening for more eager sellers to jump in now.

If your present home doesn’t meet your current needs and you’re ready to move, NOW is a great opportunity for your home to stand out.  More buyers will be looking at your home and you could be one of the ones who get multiple offers like the ones I’ve recently seen—especially if you price your home right. 

As Lawrence Yun, chief economist for the National Association of Realtors (NAR) recently said: “Inventory levels are still at historic lows…Consequently, multiple offers are returning on a good number of properties.”

A word to the wise…getting your home noticed is far easier when there are fewer homes for sale, so this is something to consider if you’re wanting to get top dollar now.

  

THE WORST PRICE DECLINES ARE BEHIND US…. AN INFOGRAPHIC

Keeping Current Matters, 5.12.23

 

As I’ve mentioned again and again, ALL things Residential real estate are LOCAL…and while prices may have dropped significantly in various parts of the country during the last year, Colorado Springs did not see very much of that.  

And now, as I mentioned earlier, we are beginning to see multiple offers once again even and some of those over list price.

So, if you have put your plans to move on hold waiting to see what would happen with home prices, NOW is the time to act.  Not only are local prices NOT going down, they also appear to continue their upward trend.

To discuss whether this is the right time for your individual situation, please give me a call sooner than later.

 

U.S. HOMEBUILDER SENTIMENT ROSE TO A 10-MONTH HIGH IN APRIL…

Reuters, 5.17.23

With the shortage of available existing homes for sale, both here and nationally, new home construction is once again becoming a choice for buyers.  

According to the National Association of Home Builders Chairman Alicia Huey, “New home construction is taking on an increased role in the marketplace because many homeowners with loans well below current mortgage rates are electing to stay put, and this is keeping the supply of existing homes at a very low level”.  

Huey said that despite the rising optimism, builders are continuing to face challenges, including shortages of various building materials, to meet the growing demand for new homes.

While I personally have seen over the last year some various incentives from local home builders, including price reductions, this trend seems to be changing as more and more folks are choosing new construction.

In fact, several of my investment clients have chosen new construction for reasons such as the knowledge that a new home will likely require less maintenance and will attract more long-term, better qualified tenants than might an existing home for sale.

If new construction is something you are considering, you might be surprised that I can assist you in that as well.  I have long-term working relationships with various local builders and help you in site selection as well and most everything else to do with a new home.  Even more important, I can direct you to several lenders who can offer you terms best suited for your individual situation. 

And did I mention?  This is comes at no additional cost to you.  Just one of the many services I provide my clients.  

 

ERA SHIELDS MONTHLY STAT PACK 

Data through April 2023, ERA Shields

Here is data from my company’s monthly “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.  

May 5, 2023

 

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 HAS HEATED UP EARLY… WITH NO SIGNS OF SLOWING DOWN

At the end of last year, I would never have predicted that the first quarter of 2023 would be so busy…but it was.  I had more closings during this first quarter than in the first quarter of the previous three years and it appears that things are just beginning to heat up.

There are numerous reasons for this, including a ramp up of corporate relocation, greater interest from my investor clients and several family members of friends and clients who are wanting to relocate here to be closer to them.

Whatever the reason, it has kept me as busy as ever and given me the opportunity to do the thing I most enjoy…helping families find just the “right” match for their wants, needs and budget requirements.  A house, as it’s said, is a “castle” or “safe haven”, and it gives me so much pleasure to see my clients happily ensconced in their new home.

As you will see from the statistics below, homes in the Colorado Springs area are holding their value much better than in some other areas of the country and I would expect them to do even better as the year moves on. 

Sales, while not as brisk as a year ago due to the quick rise in interest rates, are starting to increase and total active listings are up 64% over a year ago.  New listings are starting to rise as well, month over month, and I would expect that trend to continue.  And of most importance to sellers, homes are selling at just about their listing price and with fewer days on the market.  

Lenders have been lowering their mortgage interest rates, and apparently folks are taking advantage.  

And, as I have always said, there are always those wanting to sell and those wanting to buy…all for various individual reasons.  If you have even considered a move, either to sell and trade up, buy for investment purposes or for the first-time, now is the time to start considering your options.  

Of course, it’s more important than ever to have a knowledgeable, seasoned real estate professional in your corner when it comes to both buying and selling.  Fortunately, you’ve got me.  

My long-time experience, 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.

Knowing what you want, need, and can afford is an important first step.  The second step is to contact me.

I’ve seen most every type of cycle imaginable and have been able to find solutions that can work for most every situation.

If Residential real estate is among your current hopes and dreams, 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 now for statistics…

 

APRIL 2023

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

Here are some highlights from the April 2023 PPAR report. 

In El Paso County, the average days on the market for single family/patio homes was a 36.  For condo/townhomes it was 27.  

Also in El Paso County, the sales price/list price for single family/patio homes was 99.8% and for condo/townhomes it was 99.4%.  

In Teller County, the average days on the market for single family/patio homes was 56 and the sales/list price was 97.9%.

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 April 2023 to April 2022 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,495, Down 32.7%

·       Number of Sales were 1,090, Down 26.8%

·       Average Sales Price was $532,254, Down 5.3%

·       Median Sales Price was $459,000, Down 5.3%

·       Total Active Listings are 1,590, Up 64.1%

·       Months Supply is 1.5, Down 2.4%

 

Condo/Townhomes:

·       New Listings were 209, Down 15.7% 

·       Number of Sales were 140, Down 38.3%

·       Average Sales Price was $364,637, Down 6.0%

·       Median Sales Price was $350,000, Down 4.1%

·       Total Active Listings are 241, Up 205.1%

·       Months Supply is 1.7, Down 5.4%

 

APRIL 2023 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 31.5%

 

• Median Sales Price for All Properties was Down 5.3%

 

• Active Listings on All Properties were Up 31.7%

 

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:

 

BUYER ACTIVITY IS UP DESPITE HIGHER MORTGAGE RATES

Keeping Current Matters, 5.3.23

As I mentioned earlier, buyer activity is picking up speed even with higher mortgage interest rates.  So, if you have wondered if this is a good time to sell your home this is great news.

Data from the latest Showing Time Showing Index, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below):

 

As you can see, the first two months of this year saw a noticeable increase in buyer traffic.  That’s likely due to the limited number of homes for sale keeping buyers looking for homes even during the colder months.

To see why this is significant, let’s compare this February with each February for the last six years (see graph below).  It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory!

 

During the last six years we saw the most February buyer traffic in 2021 and 2011 as you can see in green above, but those were highly unusual years for the housing market.  Therefore, if you compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.

This is even more noteworthy considering the increase in mortgage rates this past February.  The Freddie Mac 30-year fixed mortgage rate rose from 6.09% during the week of February 2^nd to 6.50% in the week of February 23^rd.  So, even with higher rates, more buyers were looking for a home.

Jeff Tucker, senior economist at Zillow, says the increased buyer activity could continue: 

 “More buyers will keep coming out of the woodwork.  We always see a seasonal uptick in home shoppers in March and April…”

So, if you’re looking to sell, this upward trend in active buyers should be very encouraging.  The sooner you meet with me to discuss how this can work for you, the sooner you can get your present home on the market.  

I look forward to discussing how we can make this busy spring buying season one that can work for you.

 

REASONS TO SELL YOUR HOUSE IN TODAY’S MARKET…INFOGRAPHIC.

KeepingCurrentMatters, 5.5.23

With spring buying season underway, there’s no better time than now to get started if you’ve even considered a move.  Inventory, while improved from a year ago, is still low and that’s why the number of offers on recently sold homes is on the rise.  

Call me sooner than later so we can discuss whether a move at this time makes the most sense for you and your family.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, April 2023

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

To access the report, please click here and if you have any questions, please give me a holler.