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HARRY'S BI-WEEKLY UPDATE

by Harry Salzman

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June 24, 2013

 

 

 HARRY’S BI-WEEKLY UPDATE

  Current Look at the Colorado Springs Residential real estate Market

                                                            

TRAGEDY STRIKES AGAIN IN COLORADO SPRINGS/EL PASO COUNTY           

 

With a heavy heart, I realize that it was not quite a year ago when I wrote about the Waldo Canyon Fire that forced me and so many others to evacuate our homes and businesses, some never to return to what they had.  Our community is still in the process of rebuilding from that event and now an even greater tragedy has befallen us.

 

While driving to an appointment on June 11th I could see smoke in the northeast part of the city and little did I know I was witnessing the start of the Black Forest Fire—the most devastating fire in the history of Colorado. 

 

As I write this, that fire is 100% contained thanks to the hard work of all the first responders and those that followed.  But the end of the fire is only the beginning for so many clients and friends who lost most everything. 

 

509 homes were destroyed and many more damaged.  All kinds of domestic animals were displaced and thanks to the hard work of the local human society and countless others, many are now reunited with their owners. 

 

I am still working with clients who suffered losses in the Waldo Canyon fire to rebuild their homes and get their lives back to normal.  Now I am saddened to add more families to those who are in need of housing, either immediately to rent or purchase, or to work with to find long-term housing solutions.  With the rental housing shortage we are now experiencing this has become quite a challenge, but we at Salzman real estate Services are doing our best to help. 

 

It was enlightening to see how much was learned from last year’s events, which prevented this from being even more tragic than it was.  The fast response to all aspects of the Black Forest Fire, by everyone from the El Paso County Sheriff, Commissioners and the Mayor’s office to the firemen, police, local broadcast and print news, and others helped keep us all informed and safe throughout the last few weeks.

 

I am personally and professionally involved with so many of these individuals and I wish to publicly thank one and all for their tireless work on behalf of us all.

 

I was heartened again this year by the amazing response from friends and business associates from all over America who reached out to me.  While I cannot thank you each personally, please know that your acknowledgement was greatly appreciated.

 

 

ON THE BRIGHTER SIDE…COLORADO SPRINGS IS A GREAT PLACE TO LIVE

 

The Gazette 6/11-13/13

 

It’s official. 

 

According to the U.S. Bureau of Economic Analysis, incomes in the Colorado Springs area grew faster than the rest of the state or nation during 2011.  The agency reported that real income, measured on a person-to-person basis, grew 2.7% to $36,200 in the Springs area between 2010 and 2011.  That's 0.8 percentage points more than the 1.9% growth in Colorado during the same period and 0.7 percentage points more than the 2% growth nationwide.

 

Fred Crowley, senior economist for the Southern Colorado Economic Forum, said “these numbers show the underlying strength of the local economy.  You get better mileage from your paycheck in Colorado Springs than in many other places.  That is a good tool for economic development because it means you can get good workers at a very attractive rate.”

 

On top of that, the U.S. Council for Community and Economic Research’s survey for First Quarter 2013 showed that the cost of living in Colorado Springs is below the national average.  Living costs were 4.9% below the national average in January to March, compared with 3.7% below the average for all of 2012.  The sharp decline in gas prices compared to the rest of the nation helped contribute to this further living cost decline.  Costs for clothing, recreation and personal care items also fell. 

 

This index does not measure inflation; it compares prices in more than 300 metro areas for 57 goods and services bought by households where middle managers live.  It is used to compare living costs when these managers are looking to relocate to another city.

 

Crowley said “the area’s cost of living looks to be very stable right now.  That should help both the tourism industry, since gasoline prices have stabilized, but also potential employers, because it means lower costs for a well-educated and productive workforce.”

 

And if that wasn’t enough good news, the outlook for the Colorado Springs job market for the third quarter 2013 is the best in nearly five years and among the best in the nation, according to a quarterly employment survey by temporary staffing giant Manpower.

 

Colorado Springs ranked ninth for its hiring outlook among 100 metro areas surveyed.  According to surveys by the U.S. Bureau of Labor Statistics, the area’s unemployment rate declined to 8.2% in April from 9.4% a year earlier and local payrolls grew by 1.6% during the same period.

 

So, there you go.  When you add all this to what those of us who live here already know about the Colorado Springs area, why would you want to live anywhere else?

 

 

RENTAL, HOME AND MORTGAGE PRICES ON THE RISE

 

We’ve seen rental prices rise as the supply of rental listings drop and unfortunately, the Black Forest Fire will cause them to go even higher.  Those who lost their homes are going to need temporary housing while deciding whether to rebuild or buy and there just isn’t much out there now.  And what is out there is continuing to go up in price, both apartments and rental homes.

 

A number of renters (especially potential “first-time” buyers) are trying to get into home ownership because rising rents are making them rethink their current situations.  This is not a great time for them because of limited listings below $200,000, mortgage rate increases and in some cases, still tight mortgage lending policies. 

 

I’ve been talking about this happening for the past year and a half and it’s all starting to snowball at once.  Yes, more homeowners are starting to sell and trade up because they are now getting more for their current homes.  Inventories are quite lean and it’s going to cost more for the new home.  When you add that to increasing mortgage rates, it’s putting a lot of pressure on those who have waited or had to wait until now to act.

 

I haven’t seen this much activity since 2006.  Homes barely get listed on MLS and they have multiple offers, many over listing price.  Sellers are once again getting into the driver’s seat and buyers are seeing their options quickly reduced.

 

While mortgage rates are rising, they are still a relative bargain.  However, according to Lawrence Yun, Chief Economist for the NAR, they will continue to rise and will probably be near 5 percent by this time next year, compared to the 3.5 percent average of the past 12 months.  Rates will be even higher in 2015 and 2016. 

 

Yun says the recovery is strengthening and to expect limited housing supplies for the balance of the year in much of the country.  “The housing numbers are overwhelmingly positive.  However, the number of available homes is unlikely to grow, despite a nice gain in May, unless new home construction ramps up quickly by an additional 50 percent.” he said.  “The home price growth is too fast, and only additional supply from new homebuilding can moderate future price growth.”

 

Friday’s Wall Street Journal reported that “sales of previously owned homes surged in May to the highest level since late 2009, pushing real estate prices up so quickly that a major real-estate trade group (NAR) warned about unsustainable gains.”

 

Last Thursday, NAR said “home sales rose 4.2% in May from a month earlier to a seasonally adjusted annual rate of 5.2 million, the first time the pace crossed 5 million since November 2009.

 

The figures, showing rising home prices and contracts closing at a brisk pace, boosted optimism for the housing market and its ability to support the broader economic recovery.”

 

So, for those sitting on the fence, it’s time to move.  Yes, your present home will be worth more in time, but the cost of the home you may want to trade up to will also go up, along with the mortgage rate you will have to pay.   I’m not speaking with my “salesman” hat, but with my “investment advisor” one when I tell you if you are serious about selling to trade up or looking for investment property, it’s time to give me a call and let’s see if there is something for your individual wants, needs and budget.  Just call me at 598.3200 or email me at Harry@HarrySalzman.com

 

 

JOKE OF THE WEEK

 

Not a lot to joke about this week, but look for my usual “humor” next time!

 

 

 

FEATURED LISTING

 

 

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8515 Jacks Fork DR

Price: $379,900

Beds: 5

Baths: 4

Sq Ft: 3816

Beyond immaculate - this semi-custom designed home is a Real Must See!! With mountain views that include spectacular Pikes Peak views, this special home in Wolf Ranch is a "Parade of Homes Floor Plan" winner! It features a 20'x14' kitchen with glass...

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Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs 

 

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HARRY'S BI-WEEKLY UPDATE

by Harry Salzman

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Visit Website

June 10, 2013

 

 

HARRY’S BI-WEEKLY UPDATE

                             A Current Look at the Colorado Springs Residential real estate Market

 

                                         

 

FIRST, THE GREAT NEWS….

 

Last month was another fabulous gain in the local real estate Market with home sales at a 6 year high.  Consumers are starting to enjoy their lives more than in the past few years.  One of the best ways they express job security and positive emotions is to buy a “first” home or to sell and “trade up” to a better home or neighborhood. 

 

I’m thrilled to share with you some highlights of the Single Family/Patio Homes Listing and Sales Summary for the month of May 2013 as compared to May 2012. 

 

  • Number of Sales were up 20.4%.

 

  • Average Sales Price is $249,700, Up 7.1%

 

  • Median Sale Price is $215,250, Up 2.5%

 

  • Total Active Listings are about equal, Up 1.1%

 

In all of El Paso County sales, the average relationship of Sales Price to Listing Price is 98.4%, which means that homes are selling for 1.6% below list price.   This obviously points to a strong local market.

 

The chart below is a comparison of different areas within El Paso County.  We use this type of information when working with clients on an individual basis to help them determine both selling and buying price ranges for specific neighborhoods. 

 

 

COLORADO SPRINGS AREA MONTHLY SALES ANALYSIS*

 

                                                Median Sales Price               Average Sales Price

Black Forest                             $438,500                              $448,123

 

Briargate                                   $297,000                            $310,726                               

 

Central                                      $153,351                              $162,015

East                                           $179,000                               $186,737

Fountain Valley:                       $183,000                               $186,194

 

Manitou Springs:                     $256,000                               $284,500

 

Marksheffel:                             $228,000                              $223,267

 

Northeast:                                 $216,000                               $242,766

 

Northgate:                                $349,900                               $379,276

 

Northwest:                                $330,000                               $341,147

 

Old Colorado City:                  $167,000                               $199,223

 

Powers:                                     $204,600                               $216,644

 

Southwest:                               $331,000                               $383,759

 

Tri-Lakes:                                 $407,500                              $418,504

 

West:                                         $203,500                               $223,931

 

 

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

 

To view the complete breakdown on any area listed here or to read the entire monthly report, please click here

 

As you can see, things are continuing to move rather quickly and we are now experiencing a market resurgence that’s here for the foreseeable future.  As always, I am here to answer any questions you may have about these reports.

 

With very limited inventory and percent of days on the market quickly going down, there are multiple buyers for fewer properties.  To get exactly what you are looking for at a price that fits your budget, call me today at 719.598.3200 or email me at Harry@HarrySalzman.com and let’s start talking. 

 

 

WHAT THE EXPERTS ARE SAYING…

 

HousingWire.com

 

 “Increasing demand for new and existing homes, coupled with low inventory, has created a virtuous cycle for price gains, most clearly seen in the Western states with year-over-year gains of 20% or more,” said Dr. Mark Fleming, chief economist for CoreLogic.

 

Anand Nallathambi, president and CEO of CoreLogic said, “We expect this trend to continue, bolstered by tight supplies and pent up buyer demand”.

 

 

USAToday:

 

“The rapid run-up in housing prices the past year has ignited talk of another housing “bubble,” but only a few markets are at risk—so far, experts say.”

 

According to the latest Standard and Poor’s Case-Shiller index, released last Tuesday, “20 cities in the index showed increases on an annual basis for at least three consecutive months.”

 

“Even the weakest price gains were ‘substantial’, said David Blitzer, chairman of the index committee.”

 

 

The Wall Street Journal:

 

“Home Sales Power Optimism” read the headline on May 29, 2013, with prices rising at the “fastest pace since 2006, calming investor fears of a spring swoon”.

 

“Home prices surged during the first quarter at their fastest pace in nearly seven years, the latest sign of a sustained warm-up in an economic recovery that has otherwise been marked by starts and stops.”

 

Fed officials say they have been considering when to wind down the bond-buying program which has helped to keep mortgage rates near historic lows, boosted asset prices and begun to stimulate hiring and spending.

 

 

The Gazette:

 

“Sales of previously occupied homes ticked up to a 3 ½ year high in April, according to the National Association of Realtors.  And they are likely to keep growing.  A measure of signed contracts to buy homes rose to its highest level in three years in April. 

 

The limited supply of homes has also made builders more willing to ramp up construction.  That’s creating more construction jobs.”

 

 

JOB MARKET HELPS CREATE CONSUMER CONFIDENCE

 

The 175,000 new jobs added nationally last month provided such confidence in the Economy that the stock market hit its highest point since January 2, 2013. 

 

That same confidence has trickled down to people who are looking to buy, sell and trade up, or invest in the real estate market nationally, as well as locally.

 

It’s just not me telling you to BUY NOW-- all functions of today’s economy are pointing it out to you.  So if you don’t want to listen to what I’ve been telling you for the past year, then simply listen to National TV News, the Wall Street Journal (June 8, Front Page and more), etc. etc. etc. 

 

Now is the best time to buy a home all across America.  And, Colorado Springs has already shown consistent appreciation for the past two years so there’s no time to waste if you’re in the market for residential property for yourself or looking for investment property.

 

 

AND NOW FOR THE INTEREST RATE ‘WAKE UP CALL’

 

It couldn’t last forever, and like I’ve been telling you, the mortgage interest rates that hit historic lows are now inching their way back up.  Almost daily for this past week I’ve seen articles about mortgage rates on the rise. 

 

The Wall Street Journal on Saturday, June 8, page B8, wrote that the Mortgage Bankers Association stated that “the first time in more than a year those rates are back above 4%” (on 30 year fixed rates).

 

USAToday stated that “mortgage interest rates are back to their highest levels in a year—and may creep higher still.”

 

Some renters are starting to realize it’s now or never and are considering a home purchase so that they don’t miss out, according to RealtorMag.  “It’s amazing to see the frenzied pick-up in home buying, as renters get nervous that both home prices and rates will rise quickly,” Craig Strent, CEO of Maryland-based Apex Home Loans, told CNBC.  “They are trying to catch the beginning of the curve here.”

 

They also reported on June 7 that for “the fifth consecutive week, mortgage rates continued to rise, as the economy showed signs of strengthening.”

 

I don’t need to say “I told you so”, but all signs have been pointing in this direction.  If you, any family member or co-worker has been thinking about buying, selling and trading up or investing, don’t delay.  Call or email me today and let’s start the process of fulfilling your Residential real estate dreams.  The window of opportunity is still open but it’s slowing closing and you don’t want to miss out.

 

 

SKY SOX UP AND RUNNING…

I have four front row season tickets to the AAA Sky Sox available at no charge to you on a first come-first served basis to any home game.  Just give me a call at 598.3200 to request the date of your choice. Just another way I like to say “thank you” to clients and friends.

 

 

JOKE OF THE DAY

 

In the words, of Yogi Berra…..

 

 

  • As a general comment on baseball: "90% of the game is half mental."

 

  • On why he no longer went to Ruggeri's, a St. Louis restaurant: "Nobody goes there anymore. It's too crowded."

 

  • "It ain't over 'til it's over." In July 1973, Berra's Mets trailed the Chicago Cubs by 9½ games in the National League East. The Mets rallied to win the division title on the final day of the season.

 

  • When giving directions to Joe Garagiola to his New Jersey home, which is accessible by two routes: "When you come to a fork in the road, take it."

 

  • On being the guest of honor at an awards banquet: "Thank you for making this day necessary.”

 

  • "It's déjà vu all over again". Berra explained that this quote originated when he witnessed Mickey Mantle and Roger Maris repeatedly hit back-to-back home runs in the Yankees' seasons in the early 1960s.

 

  • "You can observe a lot by watching."

 

  • "Always go to other people's funerals, otherwise they won't go to yours."

 

 

FEATURED LISTING

 

Image Unavailable

1213 Rockwood AV

Price: $115,000

Beds: 3

Baths: 1

Sq Ft: 894

Cozy remodeled home with fresh paint both interior and exterior. Carpet removed and "What a surprise!" - Built originally with hardwood floors! So now, wonderful hardwood interior floors here. Brand new tile at entry. New kitchen appliances, new cab...

View this property >>

 

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs 

 

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Harry A Salzman
Salzman Real Estate Services
5475 Tech Center Drive, Suite 300
Colorado Springs CO 80919
719-593-1000 or Toll Free: 800-677-MOVE(6683)
Cell: 719-231-1285
Fax: 719-548-9357

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