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HARRY'S BI-WEEKLY UPDATE 6.29.15

by Harry Salzman

                                                            

June 29, 2015

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.

                                                

BUYERS FLOCKING TO housing market

The Associate Press, 6.23.15, The Wall Street Journal, 6.22.15

Home sales across the U.S. are headed toward their best year since 2007.  Yes, folks, real estate is a hot commodity again and prices are reflecting that.  With a strong job market, still historically low interest rates and new incentives for first-time buyers, pressure is mounting for buyers to act fast or possibly miss out.

NAR reported last week that national sales of existing homes climbed 5.1 percent last month to a seasonally adjusted annual rate of 5.35 million.  And May was the third consecutive month of the sales rate exceeding 5 million homes.

Factors helping this buying surge include a lower unemployment rate and still affordable mortgage rates.  More Americans feel secure enough, or have recovered sufficiently from the housing bust, to consider a move. 

Listings are still not keeping up with sales, thus fueling higher price gains.  Nationally, the Median home price climbed 7.9 percent over the past year to $228,700, just $1,700 shy of the peak in July 2006. In the first quarter of 2015, 51 metro areas posted double-digit percentage price gains.

First timers, aided by the new regulations, made up 32 percent of homes sold last month nationally, compared to 27 percent a year ago.  This is promising, but still behind the historically average of first-time buyers composing 40 percent of the market.

Prices and property values in the Pikes Peak area have risen in 12 of the last 13 months in a year-over-year basis according to PPAR and the median price of a local single-family sold in May rose to a record high of $243,000

Our area’s unemployment rate remains at its lowest level since right before the 2008 financial crisis and this is contributing to the surge of home buying locally.

While mortgage rates are still low, they are beginning to rise as the Federal Reserve prepares for an interest rate hike for the first time in nearly a decade.  Many folks are realizing that if they don’t buy now, they face the possibility of not only paying more for their home, but also paying higher monthly payments.

For five years, mortgage rates have hovered around 50-year lows and most economists believe this will start to reverse if and when the Fed begins to raise rates.  While modest increases may knock some potential buyers out of the market, many economists feel that most home buyers will hang in there because the monthly cost of an average-size home remains relatively affordable when compared with average incomes.  Apartment rent increases will also keep those wishing to own their own home in the market.

As I’ve been advising you for months, if you are sitting on the fence, now is the time to act.  Prices are continuing to rise and interest rates aren’t going to get any lower, and the longer you wait, the less opportunity you have to take advantage of the present housing market. 

Those of you who have waited out the recession now have equity again building in your home, and with prices steadily increasing, have an excellent opportunity to trade up or make a move to a new neighborhood.  You can still take advantage of a low interest rate, probably one much better than what you currently have.  And while there aren’t as many homes to choose from, there are still homes available in most neighborhoods and more than likely one just right to fit your present wants, needs and budget. 

With rental prices on the upswing, investment properties are still a good option for those in the market, but I wouldn’t advise waiting too long as home prices are rising steadily and there are not as many “bargains” as in the recent past.

If you or any family member or co-worker is even considering a move, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see what we can do to help you achieve your home ownership goals.  I’d hate to see anyone miss out on this “once-in-our-lifetime” housing market that’s sure to be a “thing of the past” in months and years to come.

 

5 STATISTICS TO GAUGE THE housing market

REALTORMag 6.22.15

This is an overview from last week’s NAR report on U.S. housing:

  1. Inventory:  Total housing inventory rose 3.2 percent to 2.29 million existing homes available for sale by the end of May.  That is 1.8 percent higher than a year ago.  Unsold inventory currently is at a 5.1-month supply at the current sales pace, down from 5.2 months in April.  

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  1. Home Prices:  The median existing-home price for all housing types was $228,700 in May—nearly 8 percent above May 2014 homes prices.

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  1. Days on the Market:  Properties typically stayed on the market for 40 days in May, up from 39 days in April.  Still, that marks the third shortest time since NAR began tracking days on the market in May 2011.  Forty-five percent of homes sold in May were on the market for less than a month.

​​

  1. All-cash sales:  All-cash sales comprised 24 percent of transactions in May, down considerably from a year ago when they made up 32 percent of transactions.  Individual investors, who account for the bulk of cash sales, purchased 14 percent of homes last month, down from 16 percent a year ago.  Sixty-seven percent of investors paid cash in May.

​​

  1. Distressed sales:  Foreclosures and short sales remained at 10 percent for the third consecutive month in May.  Distressed sales are below the 11 percent share a year ago.  Seven percent of May sales were foreclosures and 3 percent were short sales.  Foreclosures sold for an average discount of 15 percent below market value in May while short sales were also discounted 16 percent.

 

LOCAL MARKET UPDATE AND MONTHLY INDICATORS

Pikes Peak REALTORS Services Corp.,

I just received a report from PPAR that gives complete details on housing activity for El Paso and Teller Counties for the month of May.  It is all such positive news that I wanted to share it with you.  You can click here to read the16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 31-page Local Market Update.

If you have any questions concerning the report, or any other real estate concerns, please give me a call.

 

GOOD NEWS FOR HOMEOWNERS—90% OF PROPERTIES NOW HAVE EQUITY

REALTORMag, 6.17.15

During the first quarter of 2015, approximately 254,000 properties regained equity according to CoreLogic’s latest equity report.  This brings the total number of U.S. residential properties that have equity to about 44.9 million—or 90 percent—at the end of the first quarter.

According to Frank Nothaft, chief economist for CoreLogic, “About 90 percent of homeowners now have housing equity, and, as a result, have experienced an increase in wealth, which can spur additional consumption and investment expenditures.  The remaining 10 percent of owners with negative equity will find their home value rising while they continue to pay down principal on their amortizing mortgage loan.”

“Many homeowners are emerging from the negative equity trap, which bodes well for a continued recovery in the housing market,” says Anand Nallathambi, president and CEO of CoreLogic.  “With the economy improving and homeowners building equity, albeit slowly, the potential exists for an increase in housing stock available for sale, which would ease the current imbalance in supply and demand.  There are still about 5 million homeowners who are underwater and we estimate that a further appreciation in home values across the U.S. would reduce the number of owners with negative equity by about one million.”

The report indicates that the majority of positive equity properties are centered at the high end of the housing market, with 94 percent of homes valued at greater than $200,000 having equity, compared with 85 percent of homes valued at less than $200,000.

As I mentioned above, this is GREAT NEWS.  It gives those who couldn’t take advantage of the historically low interest rates an opportunity to sell and trade up and possibly lower their monthly payment in the process.  If you aren’t aware of the current value of your home and are thinking of selling, I would be happy to give you an estimate based on the home itself and the current comparables.  Again I would suggest you not wait too long as no one knows for certain when the interest rates will rise but we do know that they will.   

 

HARRY’S “NO JOKE” REMINDER…

“You Only Live Once”, AND…

 

HARRY’S JOKES OF THE DAY

 

 

 

 

 

 

 

HARRY'S BI-WEEKLY UPDATE 6.15.15

by Harry Salzman

                                                            

June 15, 2015

 

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.                          

                               

THE #1 REASON TO BUY RIGHT NOW...THE MONEY!!

Keeping current matters 6.9.15

Here we go again…I often feel like I’m repeating myself but my clients keep asking and I keep saying---if you’ve even been considering a residential home purchase, NOW is the time to start acting on that.  

Recent data backs me up:

  • “The current tightness of supply conditions would normally be consistent with much faster price growth.  The continued steady growth in home sales that we expect this year will only add to this upward pressure on prices.” -- Ed Stansfield, chief property economist at Capital Economics

 

  • “The S & P/Case Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a 4.1% annual gain in March 2015…with a 0.8% increase for the month.” -- Case Shiller Home Price Index

 

  • “All signs are pointing toward continued price appreciation throughout 2015…Tight inventories, job growth and the impact of demographics and household formation are pushing price levels in many states toward record levels.”  -- Anand Nallathambi, CEO of CoreLogic

 

  • “Even with further acceleration, the pace of price growth remains too high.  Strong buyer demand and low inventories coupled with relatively low new construction are helping to push prices up, keeping the housing market tipped in favor of sellers.”  -- Danielle Hale, Director of Housing Statistics at NAR

 

  • “The first quarter saw strong and widespread home price growth throughout most of the country.  Home prices are now, on average, roughly 20% above where there were three years ago.  This run-up has been historically exceptional and is particularly notable in light of the limited household income growth and modest rate of overall inflation observed during that same time period.” -- FHFA Principal Economist Andrew Lerventis

Bottom Line:  Considering that a home makes up the greatest percentage of accumulated wealth in most families, waiting to buy probably doesn’t make much sense from a purely pricing standpoint.

If you, or any family member or co-worker has been waiting to sell and trade up, or buy for the first time or for investment purposes—don’t delay much longer.  Give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how we can start the process of letting your home put equity in your pocket.

 

housing market ON TRACK FOR BEST YEAR SINCE 2006…COLORADO REALTORS HAVE HIGHEST MEDIAN PRICE RISE EXPECTATIONS

RealtorMag, 6.9.15  &6 11.15

Now at its midpoint in 2015, the residential real estate market is on track for its best year since the peak of the housing bubble in 2006 according to Jonathan Smoke, chief economist for realtor.com.  The good news is that this time it’s NOT a housing bubble, Smoke noted.

With the median home prices rising 9% in April year-over-year, homeowners are seeing strong gains in equity lately.

In a survey conducted by the New York Federal Reserve Bank, both renters and homeowners expect prices to continue to increase in the coming year, but renters expect to face more price growth.

The Fed survey shows that, as prices grow, consumers’ attitudes toward housing as a financial investment remain positive.  More than 60% of renters and owners believe that buying a property in their ZIP code is a good investment, while only 10% consider it a bad investment.  Even better, the percentage of homeowners who believe housing is a good investment rose from 58.5% in the 2014 survey to 63.2% in this recent survey.

And the latest ‘REALTORS Confidence Index” indicates that Realtors are also growing more upbeat and expect prices to increase at a slightly faster pace in the next 12 months.  Those surveyed expect the median price growth in the next 12 months to be 3.9% nationwide. Of special note to you, my readers…Colorado Realtors reported the highest price expectations, with median growth expected at 6%.
 

The good news just keeps coming…

Fannie Mae’s May 2015 National Housing Survey indicates that Americans’ attitudes about the housing market are strengthening, which coincides with recent forecasts that predict a pickup in housing activity for the year.

The recent survey indicated more consumers reported an increase in household income, which is nearing an all-time-high for the survey.  The percentage of consumers surveyed that said their household income is “significantly higher” than 12 months ago grew six percentage points to 28% over the past two months.

According to the report, “as job growth appears to be driving meaningful income growth, the outlook for housing market growth also is improving”.

Notable, too, is that the share of consumers who say now is a good time to sell a home continues to rise, also reaching a survey all-time-high in May--49% of respondents.  And the number of consumers wanting to buy rather than rent on their next housing move rose three percentage points to 66%.

Doug Duncan, senior vice president and chief economist at Fannie Mae, notes that the survey high of those who say it’s a good time to sell, as well as the growing percentage of consumers who say their household income is significantly higher than last year, indicate “things are looking up for housing”.

“We have found that these two indicators—good time to sell and income growth—are key drivers for the performance of the housing market.  The increase in these indicators suggest our forecast of moderate improvement in the housing market in 2015 is on course and mirrors the near-term performance of other leading market data, including mortgage applications and pending home sales,” he added.

Lots of statistics, but all consistent in the fact that home ownership is a good investment and one that can provide substantial equity over time, especially during this “non-bubble” median housing price rise.

 

MORTGAGE RATES RISING

The Wall Street Journal, 6.12.15

With the good news of median home price increases and job growth comes the reality that the historically low interest rates we’ve seen in the past few years are most likely going to climb too.  The positive economic data you just read boosted the confidence among many traders that the Federal Reserve will raise short-term rates later this year for the first time since 2006.

This past week saw mortgage rates going above 4% for the first time this year.  The mortgage rate increase from 3.87% to 4.04% on 30-year, fixed-rate loans was the sharpest since 2013 and was similar to the one-week advance in May 2013 when then Fed Chairman Ben Bernake suggested the Fed would soon slow its bond-buying stimulus program.

However, according to Donald Frommeyer, CEO of the National Association of Mortgage Brokers, “rates are still pretty good.  I haven’t had anybody tell me that rates are too high now.” 

The National Association of Realtors said two weeks ago that its pending-home-sales index, which is based on contract signings for purchases of previously owned homes, increased 3.4% in April to its highest level in nine years. 

Many in the housing industry say that to the extent higher interest rates reflect a more robust economy and wage growth, they shouldn’t harm the housing market. 

Bottom Line:  While interest rates are rising and will likely continue to at a slow pace, they are still historically low and if you want to take advantage of this possibly “once-in-our-lifetime” mortgage rate scenario, don’t wait too long.  It won’t be here forever.

 

LOCAL HIRING OUTLOOK LOOKS GOOD

The Gazette, 6.9.15

With the best hiring outlook since second quarter 2007, the percentage of Colorado Springs employers planning to hire in the July-to-September quarter exceeds those planning cuts by 26 percentage points. 

According to a survey by staffing firm ManpowerGroup, 30 percent of local employers intend to add staff and only four percent anticipate reductions.  The remaining employers don’t expect any changes in staff levels. 

Another indicator of our improving job market comes from estimates released in May by the Colorado Department of Labor and Employment that showed a 3 percent growth year-over-year for March—the highest in almost nine years.

The survey placed Colorado Springs in a six-way tie for 15th best among the nation’s 100 largest metropolitan areas—with Albuquerque, N.M; Greenville, S.C.; Minneapolis, MN; Oxnard, CA and Providence, R.I.

For four consecutive quarters the local hiring outlook has been more optimistic than the same quarter a year earlier. 

“This is good news, and it reflects the national numbers with much of the growth coming from construction,” said Tatiana Bailey, director of the Southern Colorado Economic Forum.  “We are seeing strong consumer sentiment—people are confident enough to buy houses and other big-ticket items.”

As you read earlier, more jobs translate into more home sales and that in turn helps increase home prices.  It’s a “Win-Win” all around and especially so for Colorado Springs homeowners.

 

U.S. HOUSEHOLD WEALTH HITS NEW HIGH

The Associate Press, 6.12.15

The Federal Reserve announced last week that the value of Americans’ stock holdings, real estate and other assets rose to a new high of $84.9 trillion from $83.3 trillion in the first quarter of 2015.

While the typical household isn’t necessarily benefitting since only 10% of the richest households own 80 percent of stocks, there are signs that Americans are continuing to repair their finances, which could help the economy in the long run.

In another win for the American Dream, rising home prices are helping to rebuild Americans’ ownership of their homes and home equity was equal to 55.6% of the value of U.S. housing in the first quarter, the highest ratio in more than eight years.  This is great news, especially since the majority of Americans consider a home to be their greatest financial asset. 

 

SKY SOX TICKETS GOING FAST

Another reminder—I still have tickets available to a number of Sky Sox games but they are going quickly now that the weather has improved.  There are four first row tickets behind the Sky Sox dugout available at no charge on a first-come, first served basis.  Just give me a call at 598.3200 and I’ll be happy to reserve them for you.

 

HARRY’S JOKE OF THE DAY

 

 

 

 

 

HARRY'S BI-WEEKLY UPDATE 6.2.15

by Harry Salzman

                                                

June 2, 2015

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.

 

A” SHOUT-OUT” TO STEVE BACH AND JOHN SUTHERS…

I want to take a moment to thank Colorado Springs Mayor Steve Bach for his leadership as the first “strong” mayor in the City’s history and to wish incoming Mayor John Suthers much success in leading his “hometown”. 

Having worked with both of these men over the years, I have the utmost respect and admiration for the time and dedication they have given, and continue to give, to our City. 

So…Thank You, Steve for your service…and Best Wishes, John in making the transition to Mayor of Colorado Springs, effective today.

 

MAY LOCAL STATISTICS CONTINUE THE POSITIVE GROWTH TREND

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

PPAR released May statistics late yesterday afternoon and I waited to share what I anticipated to be more good news, thus the eNewsletter coming to you a day later than usual.

Once again, I am thrilled to report that things are looking very good for the Pikes Peak Region in the Residential real estate market. 

May was the tenth straight monthly increase in sales.  In comparing month over month, May 2015 to April 2015, the number of sales in Single-family/Patio Homes is up 24.3%, with the Average Sales Price up 4.2% and the Median Sales Price up 3.4%. New listings were up just slightly (0.4%) over April.  In the Condo/Townhomes category, everything but new listings is up from April. 

Also taking into consideration the very positive year-over-year statistics shown below, you can see that these numbers reflect strong consumer confidence along with low, but slowly rising, interest rates that many buyers feel will soon go higher.  “Act now” continues to be the current norm.

Listing numbers continue to drop, both locally and on the national level.  With rental rates rising and first-time buyers becoming more active, we are most definitely facing a Seller’s Market.  That doesn’t mean you won’t be able to find the home you might be looking for, but it does mean that you might have others who want the same property. 

I still find that most of my buyers are able to sell and trade up as long as they are realistic about the current market conditions and are able to make a quick decision once they find the property they want to buy. 

Here are some highlights from the May 2015 PPAR report.  Please click here to view the detailed 13-pages. The included charts will show you just how positive these statistics are. If you have any questions, as always, just give me a call at 598.3200.

In comparing May 2015 to May 2014 in PPAR:                      

                        Single Family/Patio Homes:

  • New Listings are 1839 Down 2.5%
  • Number of Sales are 1,397, Up 24.3%
  • Average Sales Price is $276,946, Up 13.9%
  • Median Sales Price is $243,000, Up 12.4%
  • Total Active Listings are 2,889, Down 27.9%

                        Condo/Townhomes:

  • New Listings are 218, Up 3.8%
  • Number of Sales are 207 Up 43.8%
  • Average Sales Price is $172,126, Down 1.2%
  • Median Sales Price is $156,000, Up 4.0%
  • Total Active Listings are 286, Down 32.7%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $435,000                              $455,698

Briargate                                  $310,000                             $322,419        

Central                                      $201,500                              $228,074

East                                           $210,950                              $219,858

Fountain Valley:                       $208,000                              $207,255

Manitou Springs:                      $242,100                              $252,025

Marksheffel:                              $259,450                              $274,845

Northeast:                                 $231,750                              $258,919

Northgate:                                 $387,000                              $449,891          

Northwest:                                $339,375                              $368,894

Old Colorado City:                   $200,000                              $229,287

Powers:                                     $229,700                              $238,794

Southwest:                                $358,000                              $431,348

Tri-Lakes:                                  $417,000                              $440,483

West:                                         $224,500                              $252,084

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

 

SOUTHERN COLORADO ECONOMIC FORUM’S QUARTERLY UPDATES & ESTIMATES

College of Business and Administration, UCCS, Southern Colorado Economic Forum, May 2015

The First Quarter 2015 Update on the El Paso County Economy, including housing trends, was published last week and you can click here to read the 9-page report in full.  Here are some of the highlights I thought you would find interesting:

  • Single-family permit activity has trended upward over the past five years.
  • The year-to-date-sales in the Pikes Peak Region are also continuing an upward trend.
  • Active listings are lower than a year ago, but the average sales price of a home sold in March 2015 is 9.3% higher than March 2014.  This points to stability in the local real estate market, which is favorable.
  • Foreclosures were 46.6% fewer than in the same period last year.

The next several sections of the report include:

  • Colorado Springs Airport Trends
  • Employment Trends and Wages
  • Colorado Springs Sales Taxes
  • New Car Registration Trends

It is with pleasure that Salzman real estate Services is able to share these types of statistics and forecasts with you as soon as they become available, each and every quarter.  We have been a supporter of the Southern Colorado Economic Forum since it was created by the UCCS College of Business in 1996.

This year the Forum is going to be held on Friday, October 23 and will be at The Broadmoor for the first time.  The program will feature an exciting keynote speaker and some new features that you won’t want to miss.  I’ll provide more details as they become available but you might want to mark your calendars now to save the date for this sure-to-be-sold-out event.

 

LOCAL COST OF LIVING AT 2-YEAR LOW, JOB MARKET BEST IN 9 YEARS

The Gazette, 5.28-29.15

The cost of living for Colorado Springs was 4.6% below the national average for the first quarter of 2015, according to a quarterly survey by the Council for Community and Economic Research.  Compared with 2.6% below for all of 2014, which was an 11-year high, this is great news.  Much of this is due to low gasoline and natural gas prices. 

Health care and miscellaneous goods and services were also lower, while first-quarter housing costs jumped from slightly below to slightly above the national average.

“This is confirmation that Colorado Springs is a very affordable place to live, work and own and operate a business,” said Dirk Draper, CEO of the Colorado Springs Regional Business Alliance.  “It also reflects a welcome slowdown in the trend of increasing costs.”

“It is a favorable reflection of our place among the other cities along the Front Range, particularly since our housing costs remain more affordable than other cities along the northern Front Range,” he added.

Not surprisingly, along with the lower cost of living comes the fastest job growth rate since 2006.  The latest estimates are from the Colorado Department of Labor and Employment and won’t be confirmed by the U.S. Bureau of Labor Statistics until its annual review process in March 2016, buy Alexandra Hall, the department’s chief economist expects the numbers to hold up.

“Colorado Springs, particularly over the past year or so, has seen a consistently strengthening economy,” Hall said.  “I don’t expect to see as much impact on the Colorado Springs economy from the slowing in the oil and gas industry that we will see in the rest of the state.”

Most of the job gains came from the health care and social assistance sector.  Other big gains came from tourism, construction and professional and technical services industries. 

 

MORTGAGE RATES NOW AT HIGHEST POINT THIS YEAR

Realtormag 5.29.15, The Wall Street Journal, 5.23-24.15

In its weekly mortgage market survey, Freddie Mac reported that fixed-rate mortgages moved to their highest point this year.  While still historically low, this is a fairly good indication of even higher rates to come. 

According to Janet Yellen, Federal Reserve Chairwoman, the central bank is on tract to raise interest rates this year but will likely do so cautiously as the job market hasn’t fully healed from the recession.  She indicated last Friday that it could take as long as several years before the Fed’s benchmark short-term rate is back to what the central bank considers “normal” in the long-run. 

However, the Labor Department reported signs that inflation is stabilizing, which should give the Fed more confidence when considering the rate raise. 

“I think it will be appropriate at some point this year to take the initial step to raise the federal-funds rate target and begin the process of normalizing monetary policy,” Ms. Yellen said last Friday.

What does this mean to you?  Well, rates ARE going up.  Maybe slowly for the time being, but as soon as the Fed feels confident the economy can handle it, they will go up even more.  For those waiting for lower rates, I would doubt that’s going to happen.  And while the rates are still low at present, again, that’s NOT going to last forever.  If you want to take advantage of what has been once-in-a-lifetime low mortgage interest rates, don’t delay. Enough said.

 

WHERE ARE PRICES HEADED IN THE NEXT 5 YEARS?

Keeping Current Matters, 5.26.15, pulseconomics, 5.15

Every quarter, Pulseonomics surveys a nationwide panel of more than one hundred economists, real estate experts and investment and market strategists about where prices are headed over the next five years.  Those are then averaged into a single number to get the results.  The latest survey of Quarter 2, 2015 shows the following:

  • Home values will appreciate by 4.3% in 2015
  • The cumulative appreciation will be 19.4% by 2019
  • That means the average annual appreciation will be 3.6% over the next 5 years
  • Even the experts making up the most bearish quartile of the survey are still projecting a cumulative appreciation of 11.8% by 2019

Here are a couple of graphs illustrating the survey results:

 

 

 

 

WAITING TO BUY A HOME COULD COST TENS OF THOUSANDS

Housingwire, 5.28.15

The first Opportunity Cost Report from realtor.com was released several days ago and it indicated that with interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today’s market have become quite steep.

Examining a wide range of factors, including the long-term impact of owning versus renting a home, the likely monetary gain renters forego in waiting to buy and the financial benefits of homeownership by market, the consensus was the time to buy is NOW.

“Current market conditions give buyers the opportunity to build substantial wealth in the long-term, compared with renters and later buyers, in advance of the projected increase in mortgage rates and continuing price appreciation,” said Jonathan Smoke, chief economist for reator.com.  “The problem is inventory is low, which has many would-be home buyers—especially first-timers—standing on the sidelines and missing out on potentially material financial gains.” 

Nationally, the estimated wealth an average buyer would accumulate over a 30-year period based on today’s dollars totals $217,726.

Bottom Line?  Once more, another good reason not to wait if you’ve been renting or considering a starter home.  If you or any family members are looking to be first-time homeowners, now is the time to make the move.  With new mortgage programs offering lower down payments and allowances for financial help from family members, now is an excellent time to get the process underway.  Give me a call at 598-3200 or email me at Harry@HarrySalzman.com and let’s see what we can do to help make your homeownership dreams a reality.

 

A REMINDER ABOUT SKY SOX TICKETS                                           

                           

Now that the rainy weather is gone, baseball games are back in full swing.  Don’t forget to get your request for tickets in early so you can attend the game of your choice.  We have 4 front row seats located directly behind the Sky Sox dugout that can be yours free for the asking.  They are on a first-come, first-served basis so give me a call today to reserve yours. 

 

HARRY’S JOKE OF THE DAY 

 

AND SOME THOUGHTS ON ATTITUDE I WANTED TO SHARE…

 

“Attitude is a little thing that makes a big difference.”  --Winston Churchill

 

“Ability is what you’re capable of doing. 

Motivation determines what you do.

Attitude determines how well you do it.”  --Lou Holtz

 

“Weakness of attitude becomes weakness of character.”  --Albert Einstein

 

 

 

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Harry A Salzman
ERA Shields / 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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Our office is located at:
5475 Tech Center Drive, Suite 300
Colorado Springs, CO 80919

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