Real Estate Information Archive

Blog

Displaying blog entries 1-2 of 2

HARRY'S BI-WEEKLY UPDATE 6.24.2019

by Harry Salzman

June 24, 2019

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.

 

 

LET’S TALK ABOUT INVESTMENT PROPERTIES…

I’ve been giving you my thoughts on investment properties for quite some time now and as you will see below, it appears that the national media and real estate professionals are on the same page with me

Local home values have outperformed the stock and bond market over the long haul and those who have added investment properties to their portfolios are seeing significant gains and are likely to continue to do so.

Among the reasons…with home prices, especially our local ones, increasing monthly, there are a number of folks who are cannot qualify for mortgage loans.  Local property taxes are also looking to increase, as indicated by the new home value assessments that recently went out to all homeowners in El Paso County. 

This is putting pressure on the rental market, where there is a shortage of available units. Rental prices are continuing to escalate and there is little sign that this will change.  

While the articles below are from national publications, it’s important to remember to localize…localize…localize.  The Colorado Springs home market is faring considerably better than the national average and while the national median prices are relatively flat at present, our median prices have continued to rise monthly.  The reasons for this are many and include local economic factors such as job growth, sales tax increases, corporate relocation and more.  And with Colorado Springs appearing in so many “Top Places to Live” lists and more, we can expect our city to continue to grow and prosper.

I’ve seen an increase in clients who are either adding to their investment property portfolio or purchasing investment properties for the first time.  And, as most of you are aware, I put my money where my mouth is—I’ve always been a real estate investor and will continue to be one.

As always, it’s important for you to check with your tax and financial advisors before you delve into the investment property market to make certain that this is a viable alternative for you.

If you’re ready, I’m ready to help.  My 47-plus years of local experience comes into play in investment property sales too, as I’ve been investing in properties for almost all of those years and have helped a number of clients do the same.  I can give you the pros and cons of owning investment property.  Not everyone is meant to be an investor and/or landlord, but for those who are willing to invest the time and money, it can be a rewarding.  

I’ve been around through all types of cycles and know the ins and outs of getting a deal done. That doesn’t mean even I can guarantee you’ll get your first choice each and every time because there are just too many factors that come into play in this fast paced market, but, I know how to negotiate on your behalf and also know when to advise you to walk away. Sometimes not closing a deal is a win in the long run.  

So if you, a family member or co-worker are even thinking of looking for an investment property…or a new home for you….NOW is the time.  Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make all your residential real estate dreams come true.

 

INVESTORS BUY HOMES AT UNPARALLELED RATE

The Wall Street Journal, 6.21.19

Escalating home prices have not dampened the demand for investment properties as big private equity firms, real-estate spectators and others that buy properties to turn into rentals have increased the share of investor purchases of U.S. homes to a record high.

These purchases made up more than 11% of U.S. home purchases in 2018, according to data released by CoreLogic, Inc. last week.

This is posing a challenge for millennials and other first-time buyers who are increasingly looking to buy starter homes and are forced to compete with deep-pocketed cash buyers.

Many economists credit investors with helping to stabilize the housing market in 2011 and 2012 by buying with cash when prices were low and mortgage credit froze.  Those purchases were expected to slow as the market rebounded and properties could no longer be had for bargain basement prices.  

Instead, the demand for investment properties has intensified. Strong rental demand and low interest rates that make other investments less appealing have fueled investor appetite.

 

SCARED OF STOCKS IN TODAY’S MARKET?  BUY A HOUSE INSTEAD

Bloomberg.com, 3.21.19

This is from an article that I have been providing to my investor clients since it was published in March and I thought you might find it insightful.

 

real estate may be a better and safer investment than you might have thought.  

Based on previous understanding, it has been widely accepted that equities yield real returns much higher than those of government securities.  By most estimates that gap is about 6.5 percentage points; while government bonds might offer an average return of about 1 percent a year, for example, equities return about 7.5 percent a year (the precise figures depend on the data sample). Equities, however, are much riskier, and so there is a trade-off between risk and return.

The returns to real estate are harder to measure, both over time and across countries.  One difficulty is measuring the “imputed rent” return—that is, if you buy a house you also get the pleasure of living there and don’t have to pay rent elsewhere.  But many analysts doubted whether the return to U.S. housing was robust over, say the 1890-1990 period.

The authors of “The Total Risk Premium Puzzle” have constructed a new database for the U.S. and 15 other advanced economies, ranging from 1870 through the present and their striking finding is that housing returns are about equal to equity returns, and furthermore housing as an investment is significantly less risky than equities.

An obvious implication from this study is that many people should consider investing more in housing.  The study shows that the transaction costs of dealing in real estate probably do not erase the gains to be made from investing in real estate, at least for the typical homebuyer.

Furthermore, due to globalization, returns on equities are increasingly correlated across countries, which makes diversification harder to achieve. This is less true with real estate markets, which depend more on local conditions.  Once again… localize, localize, localize!  The Colorado Springs market is thriving.

As I mentioned earlier, a check with your tax and financial advisors is advisable and prudent prior to making any type of investment. And, if a real estate investment is in your future...I’m your guy and you know where to find me.

 

COLORADO SPRINGS JOB MARKET IS ONE OF THE BEST

The Gazette, 6.12.19

A survey by staffing giant Manpower expects to show Colorado Springs as one of the nation’s top job markets—tied for #14 with Provo, Utah--in the third quarter of this year.  

The Springs ranked just ahead of Denver and five other cities. The “net” employment outlook—the difference between the percentage of employers surveyed expecting additional hiring and those forecasting cuts—is projected at 30%, the same as the third quarter of last year but up from 21% in the current quarter.  The survey found that 34% of employers anticipate staff expansion and 4% foresee reductions.  The rest expect no changes.

These results come as our area’s unemployment rate is at 3.9%, a 10-month low and amid slowing labor force growth and continued gains in employment.  Employers in all 13 local industry sectors reported strong hiring plans, led by business and professional services and leisure and hospitality.

So, once again, a note to investors—all these new hires are going to need places to live—and a number of them will be renters at first. 

 

LOW MORTGAGE RATES REVIVE EXISITING HOME SALES

Rismedia.com, 6.23.19

“The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,” according to Lawrence Yun, chief economist at NAR.

However, compared to last May, sales are still subpar, down 1.1 percent nationally. 

 

 

“More new homes need to be built,” says Yun, “Otherwise, we risk worsening the housing shortage, and an increasingly number of middle-class families will be unable to achieve homeownership.”

A note to anyone who has been sitting on the fence---with interest rates historically low and home prices on the rise—NOW is the time to make your move.  Call me and let’s see what options are available.

 

 

 

 

HARRY'S BI-WEEKLY UPDATE 6.10.2019

by Harry Salzman

June 10, 2019

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.

 

A picture containing water, wall, indoor, skyDescription automatically generated

LOTS OF POSITIVE STUFF GOING ON…

Let me begin by saying I haven’t forgotten you.  The reason you haven’t received my e-Newsletter for a month is because my editor has been on overload and couldn’t fit me in. And since I’m married to her, I have learned that my priorities don’t always come first!  We should be back on track now and if you’re new to reading this…welcome.  If you’re an established reader, welcome back.

There’s a lot going on both locally and on the national level in residential real estate. I think it’s important for you to understand that when it comes to the housing market it always needs to be looked at in terms of local metrics.  A good example is that while the national median prices are relatively flat at present, our median prices have continued to rise monthly.  The reasons for this are many and include local economic factors such as job growth, sales tax increases, corporate relocation and more.  Our job market continues to improve, with the local unemployment rate falling for a third straight month in April to a 10-month low of 3.9 percent.  And with U.S.News and World Report naming us the “Third Best Place to Live in the USA” once again in 2019, we can expect our local residential real estate market to continue to grow.

Just as important is the local leadership and plans for future growth.  We are fortunate to have Mayor John Suthers at the helm of all this and I have no doubt that Colorado Springs is positioned for continued economic and social growth for many years to come.  

That being said, one thing we do have in common with the national market is our lack of inventory. If there were more homes available for sale, we’d be seeing even greater growth.  I believe the recent decline in mortgage interest rates will help to motivate some folks that have been sitting on the fence as well as those who thought they had missed out on the historically low rates into action. Yes, homes are costing more, but you will also get more for your present home if you are considering trading up or moving to a new neighborhood.  And with the lower interest rates, monthly payments will make it more affordable to sell and trade up or even to purchase for the first time.  That’s why it’s worth considering the potential monthly payment rather than simply the growing housing prices.

I’ve told you time and again the importance of using a seasoned professional like myself when it comes to any residential real estate purchase and it’s more important in today’s market than ever.  With a climate of multiple bids within an hour of a home being listed and offers over asking price, you need a good negotiator in your corner.  

That’s where my 47 plus years of local experience comes into play.  I’ve been around through all types of cycles and know the ins and outs of getting a deal done.  That doesn’t mean even I can guarantee you’ll get your first choice each and every time because there are just too many factors that come into play in this fast paced market, but, I know how to negotiate on your behalf and also know when to advise you to walk away.  Sometimes not closing a deal is a win in the long run.  

So if you, a family member or co-worker are even thinking of looking….NOW is the time. Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.comand let’s see how together we can make your residential real estate dreams come true.

 

MAY 2019 AGAIN BROUGHT GAINS IN HOME VALUES AND LOWER NUMBER OF SALES

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

Here are some highlights from the May 2019 PPAR report. 

Just another reminder that thePPAR report is in a new format and no longer provides a look at the monthly stats for each neighborhood.  However, if you are interested in what’s happening in your individual neighborhood, I can provide it to you through other means.

In El Paso County, the average days on the market was 25 and the Sales Price/List Price was a very high 100.3%.

Please click here to view the detailed 9-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 May 2019 to May 2018 for All Homes in PPAR                                                              

                        Single Family/Patio Homes:

·       New Listings are 2,114, Up 1.6%

·       Number of Sales are 1,564, Down 0.3%

·       Average Sales Price is $372,416, Up 4.6%

·       Median Sales Price is $329,250, Up 3.8%

·       Total Active Listings are 1,849, Down 1.9%

·       Months Supply is 1.0

 

                        Condo/Townhomes:

·       New Listings are 271, Up 12.9%

·       Number of Sales are 190, Down 4.0%

·       Average Sales Price is $246,435, Up 9.4%

·       Median Sales Price is $233,750, Up 11.3%

·       Total Active Listings are 165, Up 50.0%

·       Months Supply is 0.9

Spring buying started off slowly across the country as well as locally due to the inclement weather and lack of listings.  According to Lawrence Yun, NAR Chief Economist, the housing market in general is “underperforming in relation to economic performance, with job creation and lower mortgage rates”.

However, I believe it will pick up locally and those who are looking to move and trade up will have plenty of takers for their present home.  The days of multiple offers, many accepted almost immediately after listing, are still here and it’s making things difficult—especially for first time buyers. 

If a newly constructed home is in your future, I can assist here, too.  I’m familiar with most of the new construction in the city and can help you with site and plan selection as well as helping you find the best financing for your individual needs.  And—did I mention that I provide that all at no additional cost to you?  

And now a look at more statistics…

 

MAY 2019 LOCAL MARKET UPDATE AND MONTHLY INDICATORS 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 provides information on both Colorado Springs and Teller counties for residential real estate.  

It is broken down by geographical areas and you can look to see how your geographic area is doing in terms of sales, prices, and more.  

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 1.8%
  • Median Sales Price for All Properties was Up 4.9%
  • Active Listings on All Properties were Down 11.6%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographic area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on El Paso County:   

A screenshot of a cell phoneDescription automatically generated

 

UCCS ECONOMIC FORUM REPORT SHOWS INCREASED CONSUMER CONFIDENCE

UCCS Economic Forum, College of Business, updated 5.30.19

As always, I like to share with you the updated reports I receive due to my sponsorship of the UCCS Economic Forum.  These reports show in graphic form the “Big Picture” of the U.S. in general as well as the local outlook.

Included in the local statistics are: Local Employment/Wages and other employment factors as well as demographics of Population Growth, real estate Sales, Tourism and more.

Click here to view this informative report can be seen in its entirety. If you have any questions, please give me a holler.

And more importantly, please be sure to save the date--October 10, 2019--for the always sold out UCCS Economic Forumto be held at the ENT Center.  More details to follow in future e-Newsletters.

 

MORTGAGE RATES FALL BELOW 4%, CREATING OPPORTUNITIES THAT SOME THOUGHT WERE GONE FOREVER

The Wall Street Journal, 5.31.19

Great news as I mentioned earlier.  Mortgage rates are at their lowest in a long time and locally we saw them drop to 3.25% for a 30-year, fixed-rate FHA/VA loan on Friday, June 7, 2019. What this means to you is that, while homes prices continue to rise locally, a drop in mortgage interest rates equals a lower monthly payment than you might have had to pay even a month ago!  

With the economy continuing to hold steady, it’s anyone’s guess how long these rates will be in effect, but they are here now.  If you’ve even considered a move, now is the time to see if we can put your needs, wants and budget to work and make this dream a reality. Call me today and let’s get started.

 

COLORADO SPRINGS RESIDENTS SEE HIGHER CREDIT SCORES IN 2019

The Colorado Springs Business Journal, 5.16.19

More than half—51.6 percent—of Colorado Springs residents improved their credit scores between the first quarter of 2018 and the first quarter of 2019 according to a recent report by Lending Tree, an online lending marketplace.

Colorado Springs had the eighth-highest rate of residents who raised their credit scares over the last year, with nearly 30 percent of people seeing their scores rise at least 25 points, 16.8 percent rose at least 50 points, 8.5 percent saw a 75 percent improvement and approximately 4 percent saw their scores increase by more than 100 points, the study found.

What this means is that more and more folks here can qualify for the best rates on mortgage loans and that translates into real dollars when it comes to monthly payments.  

“Increasing your credit score is a slow and steady process. It takes time for these changes to accumulate over time, and for negative information to drop off your credit report,” the report states.  “But if you are consistent with these steps, the results of our study show that you can increase your credit score over time—and indeed, many people are successful in doing so.”

Bravo to us!

 

Displaying blog entries 1-2 of 2

Syndication

Categories

Archives

Contact Information

Photo of Harry A Salzman Real Estate
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

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