Real Estate Information Archive

Blog

Displaying blog entries 1-2 of 2

HARRY'S BI-WEEKLY UPDATE 6.18.18

by Harry Salzman

June 18, 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 LOCAL RESIDENTIAL real estate MARKET FEELS LIKE A MERRY-GO-ROUND AT TIMES…

…one that just keeps moving and faster and faster these days.  Our tight local inventory is keeping everyone on their toes.  Not only does it allow fewer choices in the resale sector but multiple offers and those considerably over listing price are the new “normal”.

And with the prices of lumber, copper, aluminum and other building materials escalating daily, even the prices of new construction are rising faster than normal.  Turnaround times in new construction are getting longer too, as more folks are turning to that option than in the past few years.  

Interest rates, while fluctuating, are still historically low but with the Federal Reserve again raising rates this past week and having intentions to raise them several times more this year—we are beginning to see people concerned that they could get priced out of homeownership.

Colorado Springs is one the of “hottest” markets in the country and while that’s a good thing for those of us who live here, it’s making things a bit tough for first-time buyers and those wanting to sell and trade up.  Homes are selling at such a rapid pace that I advise anyone looking to trade up or relocate to a new neighborhood to know exactly where they plan to move PRIOR to listing their present home.  Closing times are getting shorter and if you don’t have your next move planned you could find yourself “homeless” so to speak.

It’s especially tough for folks looking to relocate to the Springs, and we are experiencing a lot of activity in that area at present.  Those relocating are usually here for a limited time on “buying trips” and unfortunately many of the homes they wish to see are sold even before they can consider them.  Several of my clients have bought homes without even seeing them because they don’t want to miss out on a chance to make an offer in person.  This is something many of us Realtors have not seen before, but unless there are more available homes it’s not going to change anytime soon.

This is most definitely still a Seller’s Market and will continue to be so until there are more listings. If you have even considered whether a move might be good for you and your family, NOW is the time to check out the possibilities. 

While the market is indeed tight, there are still homes available in MOST price ranges and neighborhoods and we can find one that fits your wants, needs and budget.  That’s where I come in.  My 46 plus years in local real estate is your biggest asset. I know the “ins and outs” of negotiation, finding the right lender for your individual situation and always do my best to make certain that the first offer you make is one that will at least get attention, if not make it to closing.  

New construction can also be a possibility and I can help you in that area, too.  I have longstanding relationships with most of the local homebuilders and my expertise in this arena is yours at no additional cost to you.

So, there you go.  My advice? If you are even thinking of making a move, call me yesterday--you don’t have a minute to waste.  I can be reached at 593.1000 or email me at Harry@HarrySalzman.comtoday and let’s get the ball rolling to make your residential real estate dreams come true.

 

MAY 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. 

In the recently published May 2018 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were down 3.8% for the single-family/patio homes and down 16.4% for condo/townhomes.  

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

  • Sold Listings for All Properties was down 6.3%
  • Median Sales Price for All Properties was up 13.0%
  • Active Listings on All Properties was down 18.4%.

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, Old Colorado City, 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.

 

CONSUMER SENTIMENT BREAKS RECORD—AGAIN

RealtorMag, 6.11.18

Fannie Mae’s Home Purchase Sentiment Index reached an all-time survey high for the second straight month in May.  However, as home prices rise, consumer attitudes about buying and selling a home are diverging even more.

The net share of survey respondents who say now is a good time to sell rose to 46% and is now up 14 percentage points year-over-year. Conversely, the net share who say now is a good time to buy fell to 28% and has shown little improvement over the past year.

According to Doug Duncan, Fannie Mae’s chief economist (who will be leaving the organization in the near future), the Home Purchase Sentiment Index “edged up to another survey high in May, bolstered in part by a fresh record high in the net share of consumers who says it’s a good time to sell a home.”  

“However,” he continued, “the perception of high home prices that underlies this optimism cuts both ways, boosting not only the good-time-to-sell sentiment but also the view that it’s a bad time to buy, and presents a potential dilemma to repeat buyers.”

Here’s a look at other results from the May survey:

  • 49%:  The net share of Americans who say home prices will rise in the next 12 months, which is unchanged from the month prior.

 

  • 78%: The net share of Americans who say they are not concerned about losing their job, rising 2% month-over-month to reach a new survey high.

 

  • 21%: The net share of Americans who say their household income is significantly higher than it was 12 months ago, up 3 percentage points month-over-month to reach a new survey high.

 

My take from the survey?  Once again, it’s a great time to both buy and sell.  The local economy and job market are both doing well. Interest rates are still relatively low and home prices are only going to continue to rise, however possibly not at such a rapid rate once there are more homes to sell.  If you’ve been waiting to put the home equity you’ve earned to work for you—call me and let’s see what we can do.

 

COLORADO SPRINGS JOB MARKET IS ONE OF THE BEST

The Gazette, 6.12.18

And speaking of our job market…a survey by staffing giant ManpowerGroup has said that it will be among the best in the nation—tied with three other cities as the nation’s fifth best—during the third quarter 2018.  This is a big move up from the second quarter where the Springs was ranked 14th, tied with five other cities.

Manpower’s definition of the “best” is those with the biggest difference between the percentage of local employers planning to hire additional staff and those expecting cuts.  The survey includes more than 11,500 employers and Manpower does not disclose the number of participants in the local survey.

The “net employment outlook” for Colorado Springs is projected at 30 percent in the July-to-September quarter with 21 percent of employers surveyed anticipating additional hiring and just 1 percent forecasting cuts. The rest indicated they expect no change in staffing levels or were not sure of plans.

The Springs ranked ahead of Denver, the only other Colorado city in the survey, which was tied with five other cities at 19thbest.

The local unemployment rate remained unchanged from March at 3.2 percent in April, or just 0.4 percentage points above the lowest rate since 1990 and slightly higher than the statewide rate of 2.9 percent.

According to Tatiana Bailey, director of the UCCS Economic Forum, “The number of openings listed by Pikes Peak Workforce Center exceeds the number of available workers by nearly 1,200 and that gap is again widening after narrowing for much of the past six months.”

“The labor market keeps getting tighter and tighter. Having an unemployment rate this low along with this many openings is an indicator of an expanding economy,” Bailey said.

The ManpowerGroup survey found job prospects strong in nearly every sector of the local economy with government the only sector expected to remain unchanged. 

Other details from the survey:

  • The statewide and Denver area outlooks weren’t quite as strong as the local outlook at 28 percent and 25 percent, respectively.  Colorado ranked fourth, tied with Alabama and Alaska, after Indiana, Wisconsin and Montana.

 

  • Our local outlook was stronger than the national average of 21 percent, or 18 percent after seasonal adjustments. The national outlook is slightly improved from 20 percent, or 17 percent after seasonal adjustments, during the same quarter last year.

 

  • All industry sectors monitored by Manpower had outlooks in the third quarter of 13 percent or more, or 11 percent after seasonal adjustments.

 

TAX LAWS HAVE BUYERS ON THE MOVE

The Wall Street Journal, 6.8.18

The new tax rules that cap deductions of state and local taxes are having a disproportionate effect on taxpayers who live in states with high income taxes and property taxes.  While it’s still too early to quantify the impact of the Tax Cuts and Jobs Act, which became effective on January 1, some real estate professionals say they are starting to see early signs of an exodus to low-tax states.

Prior to the new rules, taxpayers who itemized could write off an unlimited amount of state and local taxes, unless disallowed under the alternative minimum tax.  Now the deductions are capped at $10,000.

The change most affects taxpayers in states with high income and property taxes.  If this is of concern to you, please discuss with your tax advisor or accountant to see if and how these new rules pertain to your individual situation.

However, before you consider moving for tax purposes, here are some things to consider:

  • It isn’t about the taxes.  You need to consider your lifestyle as well.  It is great to save money but if you’re not a Florida person and you move there just to save taxes, you’re making a big mistake.

 

  • Look at all the costs.  In deciding whether to move, and where—look at the other costs of ownership.  A state with low income taxes may make up for it with a higher sales tax.  Or you might end up paying substantially higher costs for homeowner’s insurance.  Therefore, you might ultimately save on income taxes by establishing residency elsewhere, but if the state you’re moving to has higher costs of ownership, it might turn out to be a wash.

 

  • Keep up on the news.  Some states are trying to fight back against the federal limitations on the state and local tax deductions through workarounds that would allow residents to continue to benefit from the deductions.  There is no way of knowing, however, if these tactics will ultimately survive a challenge by the IRS.

 

 

HARRY'S BI-WEEKLY UPDATE 6.4.18

by Harry Salzman

June 4, 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.

GOOD TIMES IN LOCAL RESIDENTIAL real estate FOR BOTH BUYERS AND SELLERS…

Opportunities abound at present and if you are either a potential buyer or seller you might want to consider some of the things I’m about to share.

Colorado Springs continues to be one of the “hottest” markets in the country---#11 in the May 2018 “Top Performing Markets” as ranked by realtor.com.  Home prices here are continuing to surge and nationally prices also reached an all-time high in May.  

And rising home prices are showing few signs of slowing.  Javier Vivas, director of economic research at realtor.com said, “Unfortunately for buyers, median list prices continue to show strong yearly growth and fail to hint that home values will stall any time soon.”  Despite this, the market is decelerating a bit as more homes are coming onto the market.

For the first time in ages, we are starting to see more people listing their homes in the Pikes Peak area. These are likely folks who have been sitting on the fence and realize that NOW is the time to make a move before interest rates or prices rise even more.  Whatever the reason, it’s a blessing for those who have been searching for days with so few listings from which to choose, along with the obstacles of multiple offers and offers over listing price.  But there is even more of an upside for localbuyers and sellers.

As you will read, nationally there is still a dearth of listings and that has resulted in the interest rates to drop by ½ a percentage point in the last week.  This makes sense as a shortage of homes translates into a shortage of applications for loans which translates into lower rates.

The good news for us is that while we are starting to have more listings, we still get the advantage of the lower interest rates.  What that means is that buyers are able to get more home for the same monthly payment and sellers are seeing more buyers who can qualify for loans at the lower percentage rate.  It’s a total win-win for all.

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 May statistics…

Homes are selling at 100.7% of listing price with the average days on the market at a very low 21.  

This continues to be great news for both buyers and sellers but with homes selling so fast it still necessitates knowing where you plan to move next prior to listing your present home.

The Monthly Summary shows that compared to a year ago, total active listings are up 1.4% for Single Family/Patio Homes and down 12.0% for Condo/Townhomes.  New listings are up 1.3% for Single Family/Patio Homes and down 9.1% for Condo/Townhomes.  

On a VERY positive note, Total Active Listings month over month from April 2018 to May 2018 were up 23.7% for Single Family/Patio Homes and up 18.3% for Condo/Townhomes.  This is indicative of what I mentioned above—folks are realizing that NOW is the time to sell….and to buy.  Waiting is going to cost you one way or another, so don’t delay.  Call me today if you’re ready to discover what this current real estate market can mean to you.  

For more stats, please see the following article.

 

MAY 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 May 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 May 2018 to May 2017 for All Homes in PPAR:                     

                      Single Family/Patio Homes:

·       New Listings are 2,080, Up 1.3%

·       Number of Sales are 1,568, Down 3.9%

·      Average Sales Price is $355,927, Up 11.2%

·      Median Sales Price is $317,250, Up 13.3 %

·       Total Active Listings are 1,885, Up 1.4%

·       Months Supply is 1.1

 

                        Condo/Townhomes:

·       New Listings are 240, Down 9.1%

·       Number of Sales are 19, Down 12.4%

·      Average Sales Price is $225,266, Up 18.6%

·      Median Sales Price is $210,000, Up 13.5%

·       Total Active Listings are 110, Down 12.0%

·       Months Supply is 0.6

 

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

                                                Median Sales Price               Median Sales Price

                                                     May 2018                                 May 2017

Black Forest                             $517,275                              $439,500                      

Briargate                                  $412,180                              $383,750            

Central                                      $269,000                              $221,500

East                                           $265,500                              $235,000

Fountain Valley:                       $269,450                              $245,000

Manitou Springs:                     $385,000                              $395,000

Marksheffel:                             $342,550                             $284,000

Northeast:                                $310,000                              $276,500

Northgate:                                $435,000                              $475,648          

Northwest:                                $413,750                              $437,000            

Old Colorado City:                   $340,000                             $296,500           

Powers:                                     $300,000                              $271,500 

Southwest:                               $380,700                              $342,450

Tri-Lakes:                                  $528,500                              $492,500

West:                                         $305,000                              $272,500

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

 

LOCAL HOMEBUILDING HEATS UP IN MAY

The Gazette, 6.2.18

The total of permits for single family homes in El Paso County last month surged nearly 29 percent over the same period last year.  Records show that the total of 443 permits was the largest number of single family permits for any month since August 2005.  

According to the Piles Peak Regional Building Department, year to date, single family permits totaled 1,778, up almost 24 percent over the same period in 2017.

There are a number of reasons for this, including local and national economic recovery, more jobs and lower mortgage rates even as they begin to rise.  Add that to the fact that there have been fewer existing homes for sale and you can see why many families are choosing new construction.  

This has been the option of several of my clients in recent months and in case you aren’t aware—I can assist you in the purchase of a newly constructed home.  Knowing the “ins and outs” of new home construction and how to get the most for your dollars is something I offer at no additional to you. I’ve got a good working relationship with most all of the local homebuilders and can help make the entire process as stress free as possible for you.

If new construction is something you’ve considered, just give me a call and let’s see what’s out there for you.

 

MORTGAGE RATES RETREAT FROM 7 YEAR HIGH

RealtorMag.com, 6.3.18

Mortgage rates eased a bit this week after climbing to their highest level in more than seven years.  According to Sam Khater, Freddie Mac’s chief economist, it was the first decline in four weeks.  The 30-year fixed-rate mortgage fell 10 basis points to 4.56 percent average this past week.

“The decline was driven by recent trade and geopolitical issues, which led to a sudden decrease in long-term Treasury yields,” Khater says.  “Meanwhile, confident American consumers shrugged off the market volatility, as purchase mortgage applications continue to trend higher than a year ago.”

However, even with higher rates this year, Khater believe demand from home buyers will stay elevated as long as job growth and other economic fundamentals stay strong.

“Extremely low inventory conditions in most markets are preventing sales from breaking out while also keeping price growth elevated,” Khater says.  “Even if rates climb closer to 5 percent, sales have room to grow more—but only if current supply levels start increasing more meaningfully.”

As I mentioned earlier, this is a win-win for us locally.  We are seeing more listings while the interest rate has dropped.  This should translate into more sales even with the continued escalating home prices here.

 

Displaying blog entries 1-2 of 2

Syndication

Categories

Archives

Contact Information

Photo of Harry A Salzman Real Estate
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

Quick Search

Listing Alerts

Be the first to know what's coming up for sale in the Colorado Springs real estate market with our New Property Listing Alerts!

Just tell us what you're looking for and we'll email a daily update of all homes listed for sale since your last update. You can unsubscribe at any time.

Get Notifications

Contact Us

Our office is located at:
5475 Tech Center Drive, Suite 300
Colorado Springs, CO 80919

719-598-3200
719-598-4210
Harry@HarrySalzman.com

Contact Us Online