Real Estate Information Archive

June 28, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

 

INNOVATION IS THE BUZZWORD OF THE MOMENT…AND LIKELY FOR THE FUTURE AS WELL

There’s just no avoiding it anymore, and if you’ve kept up with my eNewsletter columns you know I’ve been especially fortunate in finding new and innovative ways to help my clients realize their Residential real estate wants, needs and dreams.

I can’t overemphasize the importance of working with a seasoned, knowledgeable and innovative real estate professional in any situation, but most especially in today’s seller’s marketplace.  My 48+ years in the local Residential Real Estate arena coupled with my investment banking background gives me an edge that is particularly important in today’s buying and selling wars.  I’ve been through most every type of “cycle” and earned my nickname of “Mr. Negotiator” through years of practice.  

Buying a new home, which is often a family’s largest asset, should be a wonderful experience and I’ve always tried to keep the process as stress-free as possible for my clients.  I wish I could say that the past couple of years have been that way, but unfortunately that’s not the case.  Bidding wars and other new and innovative tactics have made the whole process much more difficult on the buyers, yet I still do everything possible to alleviate the day-to-day stress.

A big part of my job is working with clients and their family members to make certain we’ve got as much information as possible right at the beginning of the search.  When we’ve figured out a strategy it’s much easier to make the quick decisions that are necessary in today’s market.  

Every family situation is different and there’s no easy “no size fits all” in Residential real estate.  Home size, location, family size and wants, needs and budget all come into play and have to be considered right from the start.  

I like to spend time getting to know my clients so that I can best represent them and make certain they are getting the most for their money.  It can get a bit frantic in these bidding wars and I’ve learned that at times, walking away is a “win” when it’s not in a buyer’s best interest to “win the bid, but lose the war” so to speak.  

Interest rates are still historically low, rental rates are historically high, and folks are ready to move based on what they now realize they want in a home after being quarantined for so long.

When you add all that to the fact that median home prices all across the U.S. are at an all-time high and inventory is at an all-time low, well, you get the picture.  

Even folks looking for new construction are finding that with increased demand at the same moment building materials are at an all-time high, they not only cannot get a definite move-in date, but the builder also cannot give them an exact price for the new home.  

Yes, it’s crazy times in Residential real estate and not likely to change any time soon. 

A recent Wall Street Journal article in the “Future of Everything” section was entitled “Built-To-Rent Suburbs Are Poised to Spread Across the U.S.”.  The gist of the article was that current “economic forces and generational preferences are leading to a new kind of housing: subdivisions designed for renters and managed like apartment buildings”.  This is another innovative way that investors and builders are coming together to provide homes rather than apartments in a community type of setting.  This is a new concept, and I don’t know how it will play out, but it just goes to show that folks are thinking of new ways to provide housing to those who either can’t or don’t want to buy, but still want to live in a house, rather than an apartment.

I’m hopeful that more folks will start putting their homes on the market in order to trade up or move to a new neighborhood and that will at least help us get back to a bit more normalcy.

If you’ve even considered a move, now is the time to get started.  Prices aren’t going down any time soon and mortgage rates essentially have nowhere to go but up, so today is the best time to start.  It shouldn’t take long to sell your present home and it will likely go for far more than you might imagine.  It WILL take longer to find your next home, so that also needs to be a consideration from the start.

The best move you can make is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered.  I look forward to speaking with you.

 

OWNING A HOME HAS DISTINCT ADVANTAGES OVER RENTING--Infographic

KeepingCurrent Matters, 6.18.21

Highlights:

• When you rent, you build your landlord’s wealth, your monthly payment depends on ever-rising rents, and you don’t benefit from home price appreciation

 

• On the other hand, when you own your home, you build you own wealth, your monthly payment is locked in, and you benefit directly from home price appreciation

 

• If you’re feeling the challenges of a competitive market, remember that homeownership is a long-term game.  Persevering today will lead to financial rewards in the future.

 

U.S. HOUSING DEFICIT IS PUT AT 5.5 MILLION 

The Wall Street Journal, 6.17.21

Some more statistics to show why it’s especially tough to buy a home at present:

 

• Construction of new housing in the past 20 years fell 5.5 million units short of long-term historical levels, according to a report by the National Association of Realtors (NAR).

 

• The recent annual rise in the median existing-home price has been 19%. 

 

• In May, U.S. homes posted their biggest annual increase in more than two decades when the median national home price topped $350,000 for the first time.  In Colorado Springs, the median single-family home price was $432,095 in May.

 

• U.S. homes sales soared last year at their fastest pace in 14 years, when low interest rates and the rise of remote work during the pandemic sent buyers scrambling to find larger living spaces.

 

• The lack of homes for sale relative to demand and record housing prices have slowed the pace of home sales in recent months, but on a historic basis, the market remains red hot and analysts say demand from millennials entering their prime homebuying years is expected to fuel demand for years to come.

 

• More than 90% of home builders surveyed by NAR in May reported shortages of appliances and framing lumber.

 

As of this week, I’ve read that price of lumber and some other building material is finally going down but is still higher than in the recent past due to the great demand from builders and others.  Until demand stabilizes, I’m afraid we are in for continued unprecedented times.

So once again, if you’ve been considering a move, NOW is the time to get started.  It will take some time and perseverance, but prices aren’t going to get better, and interest rates are certainly not guaranteed to stay this low forever.  

June 4, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

I’VE BEEN SAYING THIS FOR MORE YEARS THAN MANY OF YOU HAVE BEEN ALIVE…

…and here you go.  For the eighth year in a row, Americans have chosen real estate as “The Best Investment” as reported by Gallop.  And this year, at 41%, real estate earned the highest percentage in the history of the survey!

 

The only drawback in the last couple of years is that supply has most definitely been greatly overtaken by demand and that’s made it difficult for folks to find a new home, most especially first-time buyers.

The historically low interest rates helped ramp up sales and then the pandemic hit, creating a different kind of scenario.  A number of folks decided to stay put and renovate their existing homes.  And with the ease of home delivery of groceries, meals and other necessities, more older folks decided they would be happy to “age in place”.  A lot of others found new wants and needs for their living situations during that same time and started their new home search as early as they were able.  

And then…once more…demand overtook supply, prices of lumber, copper, aluminum and other home materials went through the roof and even the possibility of new home construction became one that would force a much longer than normal wait time, and even without a guaranteed price at that.

When you add that to the fact that apartment rental rates in Colorado Springs are at an all-time high, with the average exceeding $1,300 for the first time, it’s no wonder folks are doing whatever possible to become homeowners or to buy for investment purposes.  

In fact, investment buyers, including those purchasing second homes, accounted for 17% of national homes sales in April 2021, up from 10% a year earlier, according to the National Association of Realtors (NAR).

Job recovery here in the Springs is rebounding faster than the nation and even the state of Colorado.  Through last month, the area has added back all but 4,000 of the 38,700 jobs lost in March and April 2020 and has added 8,800 jobs in the first four months of this year—an average of 2,200 a month.  When you consider that lots of folks are relocating here either to fill some of these openings or because they can work from home and would rather live here, well, you get the picture.  They need a place to call home and are joining all the other folks who are actively looking for a home here.

And according to a senior economist at realtor.com, of the sales in the 250 largest metro areas, Colorado Springs is number 3 in fastest home sales, selling in an average of 12 days!

See where this is headed?  I have been saying for as long as I can remember that if you’ve even considered a move, yesterday would have been a preferable time to start, and many of you heeded my words.  It wasn’t always your first choice, and it most certainly wasn’t as easy and stressless an experience as I like for my clients, but in most cases, we got it done!  After all, they don’t call me Mr. Negotiator for nothing.  

However, as the months go on with so few available homes for sale, it’s a challenge for even a seasoned, knowledgeable real estate professional like me.  But those of you who know me at all know that where there’s a will, I’ll find a way. 

And to quote my friend Robert August who wrote me after my last eNewsletter said:

 

“Another reason not to tarry, when you’ve got Harry…

 

…and to quote The Talmud: “If not now, when?”

 

I couldn’t have said it better myself.  Thanks, Robert!

If you’ve even considered a move, now is the time to get started.  Prices aren’t going down any time soon and mortgage rates essentially have nowhere to go but up, so today is the best time to start.  It shouldn’t take long to sell your present home and it will likely go for far more than you might imagine.  However, finding a replacement will likely take some time so it’s best to start in that direction first.  

Meanwhile, the best move you can make is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  I look forward to speaking with you and helping to make all your Residential real estate dreams come true.

 

MAY 2021

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

Here are some highlights from the May 2021 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a very low 8.  For condo/townhomes it was 4.  

Also in El Paso County, the sales price/list price for single family/patio homes was 103.5% and for condo/townhomes it was 104.3%.  

It’s noteworthy that in May of 2020, we couldn’t show homes due to the pandemic so it is no surprise that the number sales in comparing this year to last would be up considerably.  The numbers aren’t indicative of more available homes or more home sales.

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing May 2021 to May 2020 for All Homes in PPAR:

                             (A Big WOW is all I can add here!)

 

                       Single Family/Patio Homes:

·       New Listings were 1,876, Down 3.6%

·       Number of Sales were 1,553, Up 37.2%

·       Average Sales Price was $489,376, Up 24.4%

·       Median Sales Price was $432,095, Up 23.5%

·       Total Active Listings are 582, Down 62.4%

·       Months Supply is 0.4, Down 1.7%

 

Condo/Townhomes:

·       New Listings were 206, Down 18.6% 

·       Number of Sales were 220, Up 46.7%

·       Average Sales Price was $318,936, Up 24.2%

·       Median Sales Price was $310,500, Up 23.9%

·       Total Active Listings are 66, Down 61.8%

·       Months Supply is 0.3, Down 1.3%

 

Now a look at more statistics…

MAY 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 37.0%

 

• Median Sales Price for All Properties was Up 22.6%

 

• Active Listings on All Properties were Down 61.3%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical 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 the Colorado Springs area in general:

 

COLORADO SPRINGS IS #22 OUT OF 100 METRO AREAS IN HOME PRICE INCREASES

Federal Housing Finance Agency, 5.25.21

In their recently released report, the Federal Housing Finance Agency (FHFA) listed Colorado Springs at number 22 out of 100 top measured metro areas in home price increases over the past year.

As you will see in the chart below, home prices in Colorado Springs rose 15.6% over the past year and rose 3.6% in the last quarter.  That’s in comparison to the U.S. as a whole, where prices rose 12.6% over the past year and rose 3.5% over the last quarter.  The combined Denver/Aurora/Lakewood area came in at number 42.

Here is a look at the Colorado Springs data from 2007 to Quarter 1 2021:

 

A RECORD NUMBER OF HOMES ARE SELLING ABOVE LIST PRICE

Realtor mag, 6.1.21

More than half of homes—51%--are selling for more than the asking price—a record high, according to new research from real estate brokerage Redfin.  A year ago, 26% of homes were selling above asking price.

This again is indicative of the fact that many more people want homes than there are homes for sale.  More home buyers are waiving appraisals so that the sale doesn’t fall through.  In April, 19% of homes had their appraised value come in below the contract price, according to data from CoreLogic.  Over the two previous years, 8% of homes were appraised for lower than the contract price.

“The frequency of buyers being willing to pay more than the market data supports is increasing,” said Shawn Telford, chief appraiser at CoreLogic.

Meanwhile, 24% of homeowners surveyed by realtor.com say they expect to get more than their asking price when they sell, and 29% of sellers plan to ask for more than what they think their home is worth as  well.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, 4.30,21

As always, I’ve included the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the National and Colorado Springs levels.  

You can click here to read the report which was published last week in its entirety and if you have any questions, please give me a call.