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July 22, 2013

HARRY’S BI-WEEKLY UPDATE

             A Current Look at the Colorado Springs Residential real estate Market

FIRST, MY PERSONAL “ROCKY MOUNTAIN HIGH”…

On 7.7.13 at 11:00 a.m. in Las Vegas, NV, I married Carol Black.  We’ve known each other for more than 50 years.  And yes, I even managed to produce an e-Newsletter for you that week because she is not only my wife, but the Editor of this publication!  I just wanted to share my personal “news” with those of you who haven’t yet heard about it.  So that’s our big “WOW”.

AND NOW SOME “WOWs” FOR YOU—“HOT OFF THE PRESS”

Southern Colorado Economic Forum—Quarterly Updates and Estimates—July 2013

I received the “Quarterly Updates and Estimates” from the Southern Colorado Economic Forum/UCCS College of Business just three days ago and it contains a lot of the same GREAT news that our readers have seen in the recent MLS of PPAR data that I shared on July 8, 2013.

This report will show MLS activity on various charts through June 2013 on pages 6 & 7.  Also included are:

• Year to Date Sales
• Monthly Single Family Home Sales
• Active Listings of Homes in the Pikes Peak Region
• Average Sales Price of Homes
• Median Sales Price of Homes

In the Update of the “El Paso County Economy”, the best performing indicators were:

• Single Family Permits—Up 39.6%
• New Vehicle Registrations—Up 20.8%
• Consumer Sentiment—Up 6.6%
• Colorado Springs sales and use tax collections—Up 4.7%

“Other improvements were seen in employment, the employment rate and foreclosures.  Housing and new vehicle registrations have led the local economy out of the recession and the increase in sales tax numbers points to a broad level of recovery in the near future.”

As an aside, The Gazette on Saturday also indicated that sales tax collections are continuing their “winning streak” by showing 18 consecutive months of increases.  “Consumer spending in Colorado Springs remained strong in May, according to a report on sales tax collections from the city’s Finance Department.”

According to Fred Crowley, senior economist for the Southern Colorado Economic Forum (and author of this Quarterly Update), “Consumer confidence is quite strong right now.  Consumers are feeling good about the local economy because they are seeing employment and income growth.”

In the “Analysis of the El Paso County Residential housing market”, it is noted that :

• Through June 2013, new residential permits were 467 higher (45.6%) than June 2012
• At the current rate, the combined detached and attached single family permits for 2013 could be around 3,000.  This would be an increase of 625 over 2012 (21%)
• Permit activity started the year strong and has maintained pace.  It is expected to continue with the improving economy.  Additional support for housing and the economic recovery was offered on July 10, 2013 by Federal Reserve Chairman Ben Bernanke.  He stated the Fed would continue to support the economy for the foreseeable future. 

Our local “Economics Guru”, Fred Crowley, would agree that statistics demonstrate to BUY NOW.  I’ve been saying this for more than a year and now all the experts are getting on the bandwagon too.  It’s NOT too late, but it IS time to start the discussion so the sooner you contact me, the sooner I can go to work for you.

In the “Single Family Permit Forecast” we see:

• The Forum’s revised forecast indicates there will be 2,882 permits from July 2013 through July 2014.
• The forecast for 2013 calls for 2,811 detached, single family permits in El Paso County (27% increase over 2012).  This could change depending on:  1) rebuilding activity in the burn areas of Mountain Shadows and Black Forest, 2) possible rising mortgage rates and 3) job and income growth in El Paso County.

In “MLS Activity”:

• The trend in homes sales continues to improve.  There were 1,075 (25.2%) more homes sold through June than during the same period in 2012.
• The demand for housing appears to be increasing.  Monthly home sales in the region were higher in all of the last 12 months.
• The relative reduction in homes for sale and an increase in home sales have contributed to higher home prices.
• The ratio of homes sold to total single family homes in El Paso County has proven to be a good indicator of strength/weakness in housing.

Click here for the report in its entirety.  As always, if you have any questions about this report or how it pertains to you personally, please call me at 598.3200 or email me at Harry@HarrySalzman.com and I will be happy to provide you with answers.

What’s most important for you to know right now?  Well, as you will see in the report, Average and Median Home prices are continuing to increase and will continue to rise as supply lessens. 

Not part of this report, but a fact of real estate life—Mortgage Interest Rates are also continuing to increase.  While they are still historically low, they are not where they were even a few weeks ago and they will continue upward.  Mortgage rates are still very affordable for most people so don’t panic yet---but, if you are in the market, NOW is the time to get serious about it.

Inflation will also increase in 2013.  Therefore, based on statistics and from a practical point of view, again, I would suggest that now is the time to sell and trade up or buy for yourself or for investment purposes. 

If you or any family member or co-worker is interested in how today’s market can work in your favor, please call or email me today.  I can provide you with the detailed information you need to make an informed decision by looking at your wants, needs and budget requirements.  If there is a solution to make your real estate dreams come true, with more than 40 years in the local market, I’m the one who can help make that a reality.   

PS:  I’d like to encourage you to plan on attending the Annual Southern Colorado Economic Forum on the morning of September 26, 2013 at The Antler’s Hotel.  I am a proud sponsor of this important event and I believe you will walk away with a greater understanding of the economics of the Pikes Peak area and how it affects you both personally and professionally.

THREE COMPELLING REASONS TO BUY NOW

RISMedia 7.12.13

With the tide starting to turn from a Buyer’s Market to a Seller’s Market, here are a few pointers that I wanted to share with you.  They keep cropping up in article after article; therefore I thought you might benefit from knowing the three most compelling reasons to buy now:

• Rising Home Prices.  Don’t be put off by this trend.  Home prices are likely to continue their rise.  By seizing the moment, many folks are affording themselves the opportunity to get into starter homes or upsize into something more suitable for their changing needs.  And, equally important, as prices rise, by buying now, you may even see an opportunity for building long term equity.

• Low Mortgage Rates and Faster Closing Times.  Mortgage rates are still at the lowest they have been in a long time.  Coupled with a trend among mortgage brokers to increase their turnaround times to give buyers a competitive advantage in a hot market, this is great news for Buyers hoping to get into a home before prices increase any further and for Sellers looking to sell their properties at the fair market prices as quickly as possible.  The Mortgage Bankers Association has already projected that rates will likely inch back up—possibly a full point—within the next year.  So, as I mentioned earlier, there’s no better time than NOW to get started.

• The Re-emergence of New Construction.  Increased prices and lower inventory among existing homes has created a level of competition that favors Sellers.  It has also created an opportunity for new-home construction to re-emerge, thus giving Buyers a viable option to consider rather than to participate in the frenzy to purchase existing homes.

If there is anything I would like to get across to you, my readers, it’s that no matter what you see going on today, real estate is going to be a great investment in the long haul.  If you remember that, and let me assist you in helping make the best choices available, you will find that today’s market will most definitely work for you and your residential and financial long term goals.

PHILOSOPHY OF THE DAY

“Some men see things as they are and say ‘why?’

Others dream things that never were and say, ‘why not?’”

--George Bernard Shaw

“We do not remember days.  We remember moments in our lives.”

--Unknown

FEATURED LISTING       

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

email: Harry@HarrySalzman.com

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

Visit Website

July 8, 2013

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

“Here I am…ready and willing to help in this quickly changing real estate Market!”

HOME PRICES ARE RISING AT FASTEST PACE IN SEVEN YEARS

Just in time for Independence Day, fireworks are happening in the local Residential Market as of June 30, 2013.  Across El Paso County, the relationship of Selling Price to Listing Price is 98.4%.  That’s right—sellers are getting within 1.6% of their listing price.  And in a number of cases, homes are going for over listing price, with multiple offers!

The Listing and Sales Summary published last week by the Pikes Peak MLS shows these figures as “all homes” which includes existing and listed new homes.

Some highlights of the report, comparing June 2013 to June 2012 include:

• Number of Single Family/Patio Home Sales are up 30.5%

• Number of Condo/Townhomes Sales are up 47.5%

• Average Sales Price is $255,590, Up 3.9%

• Median Sale Price is $225,000, Up 6.5%

• Total Active Listings are 3868, Up 4.4%

Today’s motivated Buyers are beginning to understand that “traditional” thinking of the past 7 years is no longer applicable and “thinking outside the box” is becoming more and more important in decision making.

I can’t remember when “days on the market” were as little as 58.  PPAR statistics show that these averages and median prices were last seen in June, 2008.  In a nutshell, home prices are going up at about ½ of 1% per month, so if you are thinking about taking a “personal plunge” in home buying, it’s time to test the waters.  It’s going to cost you more to wait.

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

COLORADO SPRINGS AREA MONTHLY SALES ANALYSIS*

                                                Median Sales Price               Average Sales Price

Black Forest:                            $350,000                             $376,808

Briargate:                                  $315,000                             $320,081

Central:                                     $165,000                              $230,047

East:                                          $175,000                             $186,075

Fountain Valley:                       $197,500                             $195,863

Manitou Springs:                     $315,000                             $326,036

Marksheffel:                             $225,000                              $240,216

Northeast:                                 $215,000                             $233,896

Northgate:                                $369,450                               $380,451

Northwest:                                $319,680                              $350,435

Old Colorado City:                  $160,000                               $174,736

Powers:                                     $221,448                              $229,371

Southwest:                               $257,334                              $364,419

Tri-Lakes:                                 $385,750                              $414,988

West:                                         $221,500                              $269,241

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

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

You will also see the results for the first two quarters of 2013, which indicate that Single Family/Patio Homes are up 25.1% compared to 2012.  Our community experienced 5336 sales during that time—our strongest first two quarters since 2006.

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

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

AS MORTGAGE RATES AND HOME PRICES RISE, EXPERTISE BECOMES ESSENTIAL

According to RealtorMag, Buyers are stating to become discouraged because so many of them are entering the market, but houses are not as plentiful and mortgage rates are starting to climb. 

This is the time when choosing the right real estate Agent is essential in helping you to navigate through the buying and selling “wars”.  My professionalism and background help my clients relieve some stress because I’ve been doing this for more than 40 years in the local market. 

I work to make sure that my clients have realistic expectations and help them review options that can make the entire process a little easier on the nerves.  Home buying and selling is a very personal decision and one of the biggest ones most of us ever have to make.  My background in investment banking, along with longevity in the real estate arena, allows me to help my clients make well-informed decisions. 

RISMedia has some suggestions for “helping Buyers stay on track”.  They reiterate the things I have always told my clients and I will repeat them here for those of you who are entering the current market.

1. Get Pre-approved and not just pre-qualified.  I have always found this to be important and right now it’s more crucial than ever because of the tighter time frames involved.  This shows the Seller that you are serious about buying.  I can help you get started with process as soon as you’re ready so that when you find what you are looking for, you’re ready to proceed.
2. Don’t Waste any Time.  When you see a home you like, find time to look at it immediately.  If you wait for the weekend or another time, it may already be off the market.  And once you find the home you want, be ready to make an offer immediately. 
3. Write Strong Offers.  Buyers can no longer get away with “lowball” offers or asking for special allowances.  Bidding wars and multiple offers are once again becoming the norm so Buyers must be ready to present their best offer and/or put down more earnest money to help insure beating the competition.

I want to also add that Buyers need to be very flexible in this emerging market.  That might mean looking at new construction rather than purchasing a previously owned home.  Homebuilding is once again a viable option and we are seeing more and more starts locally.  Not only is this good for our economy, it’s helping to provide options for the shortage of available previously owned homes for sale.  I can help provide you with various scenarios when it comes to new home construction and it would be my pleasure to do so. 

LOCAL HOMEBUILDERS ASSOCIATION IS WORKING TO PROTECT YOU

I’d like to offer a “shout out” for the local HBA, who recently passed a motion enforcing a moratorium on new membership in order to protect our community.  In wanting to make certain that local homeowners who need to make informed decisions concerning rebuilding after the recent fires, the HBA is not accepting applications from out of town contractors or new members who did not have a RBD license prior to 6.11.13. 

Knowing that the public depends on them for information regarding builders and contractors, the HBA wants to help make it more difficult for those unscrupulous individuals who prey on homeowners who may have lost their homes or need extensive work.

If you, or anyone you know, is in this situation, please advice them of the importance of knowing that they are in the hands of a licensed professional who can provide the services they promise.  A little foresight can save a lot of time and money later on.

MORTGAGE RATES ON THE RISE, BUT IT’S ALL RELATIVE

The first home I purchased was in 1975, with a minimum down payment, just like a typical homebuyer.  My 30 year fixed mortgage rate was 8.5%.  That was “normal” in those days.  So, while we’ve been experiencing historically low rates in the past few years, a 4.5% fixed rate of today is still a bargain compared to not so very long ago. 

Today’s Buyers may pay more for the cost of their home and for their mortgage interest rate, but with the regular rate of appreciation that we’ve been experiencing it should be more than made up in the future.

SAVE THE DATE…

The Seventeenth Annual Southern Colorado Economic Forum is going to be held at the Antler’s Hotel on September 26, 2013.  Salzman real estate Services, LTD. is proud to be the only Residential Real Estate Company sponsor.  This is a consistently sold out event and we want to remind you to save the date for a very informative presentation of our local economic situation.

SKY SOX REMINDER…

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

PHILOSOPHY OF THE DAY

Borrowed from “The Heart of a Leader” by Ken Blanchard

Consider moments when you were at your best, and you will find that you were right there in the moment, fully and completely present.  If you dwell on “what was” or “what will be,” you will miss the power of “what is.”

Spencer Johnson, coauthor of The One Minute Manager, discusses the important truth in his brilliant parable, “The Precious Present.”  In the story, an older man’s wisdom launches a young boy on a lifelong search for the “precious present.”  Finally, he discovers what the old man was trying to teach him:  To learn from the past is good, but to live there is a waste.  You are happiest and most productive in life when you are living in the present.

All highly effective leaders have learned to respect the power of the present.  They have discovered that analyzing the past and planning for the future is not enough; they must also nurture the present and celebrate its victories.

FEATURED LISTING

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

email: Harry@HarrySalzman.com

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