HARRY'S BI-WEEKLY UPDATE 7.20.15
July 20, 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.
LOCAL MARKET UPDATE AND MONTHLY INDICATORS
Pikes Peak REALTORS Services Corp.,
I just received a report from PPAR that provides detailed information on housing activity for El Paso and Teller Counties for the month of June. Such positive news deserves a second look and these reports go into greater detail than the PPAR Monthly Statistics I shared last week. I will make these available each month when I receive them.
The “Activity Snapshot” shows the one-year change:
- Sold Listings for All Properties was up 22.1%
- Median Sales Price for All Properties was up 5.1%
- Active Listings on All Properties was down 37.4%.
This is great news for those who, despite low interest rates, couldn’t refinance or sell and trade up without bringing additional cash to closing. Many people stayed in their homes and some were forced into short sales or foreclosures.
According to the NAR Economists’ Outlook Blog, as home prices rise, homeowners’ equity is growing at the fastest quarterly rate since 2013. The blog indicated that “between 2011 and 2014, the homeowner equity picture has gradually changed. Homes levels may likely return to 2005 levels by the end of this year or mid-2016.”
With more equity, homeowners will have better options, such as the ability to sell their present home and have additional cash for a down-payment on a trade-up home.
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 33-page Local Market Update.
If you have any questions concerning the report, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com .
ASSESSED HOME VALUES UP 8% ON AVERAGE FOR LOCAL AREA HOMEOWNERS
I recently met with Steve Schleiker, El Paso County Assessor, and asked him about the results of the reappraisals for El Paso County. Below is his emailed response:
“In the State of Colorado every odd year is considered a reappraisal year for all 64 county Assessors. This year, overall, 91% of single-family homes increased in value, 6% stayed the same and 3% decreased in value in El Paso County. On average, we have seen single-family residential values go up 8%; however, that differs around El Paso County, but the median throughout El Paso County was 8% increases in value for single-family residential properties. real estate sales from July 1, 2012 through June 30, 2014 were used to determine the 2015 property values.
The real estate market in El Paso County is nowhere near what it is north of Monument; however, the increase in property values is a “good” thing. I consider my home my most valuable investment and am definitely happy to see any kind of appreciation on my home that has not been seen since the real estate crash of 2008.2009.”
Thanks, Steve, for your insight. You are just like the majority of Americans whose home is their most valuable investment. It’s always good news to know that we are building equity at a better pace than in recent years, even though along with it will come slightly higher taxes to be paid!
So there you go—not only are we reading reports about home values appreciating, but we are seeing that the recorded assessed values are going up too. It’s definitely “happy days” again for local homeowners.
FEWER LISTINGS AND QUICKER CLOSINGS = FASTER DECISION MAKING
It’s been happening for a while now and things don’t seem to be slowing down. The threat of rising interest rates, along with rising home prices and a shortage of listings, is forcing buyers to make decisions more quickly.
The best advice I can offer is to make certain you know what you want, decide what you can afford to spend, and get pre-approved prior to the home searching process. Being realistic when you begin your search is especially important today when there are fewer homes on the market.
It’s important to work with a competent, experienced real estate Broker who can help you beforehand so you won’t be disappointed along the way. We do the homework for you and help you find the right property based on a detailed determination of your wants, needs, and budget.
Bidding wars are becoming more common and you don’t want to find yourself in a situation where you might “win” the battle but “lose” the war. We can help you know when it’s best to walk away. There’s always another home, maybe one that’s even better suited for your family.
And, while there are fewer homes for sale, I’ve found that if you broaden your search criteria just a bit, you’ll find there are homes available in most neighborhoods and in most price ranges.
If you or any family member or co-worker are ready to make the move, please call me today and let’s get the process started. A new home can be simply a quick phone call away and you can reach me at 598.3200.
YELLEN SIGNALS FED RATE MAP STILL POINTS UP FOR 2015
The Wall Street Journal, 7.11-12, 2015, The Gazette, 7.16.15
Federal Reserve Chairwoman Janet Yellen reaffirmed plans for the Fed to start raising short-term interest rates later this year and highlighted tentative signs that wages are rising as the labor market tightens.
“I expect that it will be appropriate at some point later this year to take the first step to raise the federal-funds rate and thus begin normalizing monetary policy”, she said in remarks to the City Club of Cleveland.
She emphasized that “the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate the first step.”
Bottom Line? It could be sooner, it could be later, but it’s going to happen! The historically low interest rates will be a thing of the past in the near future and now is the time to lock in rates that will mean lower monthly payments for you. While a home may cost you a little more, you can still get more for your present home…BUT…lower interest rates are not going to hang around forever. If you’ve been sitting on the fence, now’s the time to get moving. There’s still time, but it soon may not be on your side!
8 AVOIDABLE MISTAKES FIRST-TIME HOMEBUYERS KEEP MAKING
Housingwire, 7.2.15
Buying a home is one of the biggest financial decisions a person will make and all it takes is one bad or misinformed decision to mess up the whole process. When it’s a first home, it’s even more important to pay attention to detail, because lack of experience can be a detriment.
If you or anyone you know are thinking about buying a first home, please take a minute to read these avoidable mistakes to help make the process as stress free as possible.
- They don’t watch their finances before buying a home.
This includes watching your credit, taking on too much debt right beforehand or making a big purchase right before closing.
Debt-to-income ratio is a huge deciding factor on credit scores and it’s one of the first things lenders look at when putting together a mortgage. The more debt, the less of a loan you can get. And lenders look again right before closing to make sure nothing has changed. So hold off plans to make any big purchases.
- They don’t take the time to get pre-approved before house hunting
It’s important to know what you can afford prior to looking. Most real estate Brokers won’t show potential homes without a prequalification letter in hand, and some won’t do anything without the pre-approval.
- They take on more than they can handle financially.
Many first-time homebuyers assume that just because they can afford the house means they can afford to live there. That’s not always so. There are many costs associated with homeownership that often get overlooked by someone who has never owned a home before.
- They get into a fixer upper they don’t have time or money to fix.
While fixer uppers can often seem like a bargain, home renovations are not quite as simple as television shows make them appear. The average person doesn’t have unlimited budgets and round-the-clock time to invest and the novelty can wear off quickly. Fixer uppers can often become a drain in time and money.
- They prioritize the home over the neighborhood.
When looking for the dream home in the dream neighborhood, many realize just how far outside their budgets that home can be, especially in big cities and affluent suburbs. It can be tempting to look for that same dream home, but in a neighborhood that might not be the right one for their particular needs.
- They put all their eggs in the online basket
While the Internet can be an invaluable tool for potential homebuyers, it can never take the place of a reputable team of professionals who can physically meet with you to determine exactly what is necessary to get the process going from start to closing.
- They spend all their money on the down payment.
Often first time homebuyers save and then spend every last dollar on the down payment, not leaving them anything for additional costs or emergency personal situations that may occur.
- They skip the home inspection.
Skipping the home inspection might seem like an easy way to save money to some people because they feel that there is nothing that can be found to change their mind about buying the house. That is until they move in and realize that there are major and very costly maintenance problems such as mold, termites, a leaking roof, or electrical or foundation problems.
Please share these common avoidable mistakes with anyone you might know who is thinking of first time home buying. And then please send them to me. I can make certain that these mistakes are ones they will avoid on their way to becoming a responsible home owner and can make the entire process one that will make them excited rather than disappointed when it comes to one of life’s biggest decisions.
HARRY’S JOKES OF THE DAY
