Real Estate Information Archive

July 21, 2020

 

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.  

 

HOMES PRICES UP…MORTGAGE RATES DOWN...NOW IS A PERFECT TIME TO INVEST IN RESIDENTIAL real estate

Local residential real estate has been keeping me very busy these days.  With home prices continuing to escalate and mortgage interest rates reaching their lowest levels since record keeping began, it’s no wonder that folks are rushing back into the market.

Yes, this past week the 30-year fixed-rate mortgage loans dipped below 3% which is totally amazing since I can still remember selling homes when the rates were hovering above 18% in the early 1980’s.

And despite the ongoing pandemic, home prices are continuing to rise all over the country and especially here in Colorado Springs.  

While that’s great news…it comes with a record low inventory that is causing multiple offers, bidding wars and more.  Unscrupulous lenders are also popping up and creating problems for both sellers and buyers alike.  I recently was on the listing side of a deal where the buyer’s lender was not quite ethical and it presented a number of problems to be solved prior to closing.  

That’s why I cannot emphasize enough the importance of dealing with an experienced, knowledgeable real estate professional like myself when it comes to one of the most important financial decisions of your life.  My 47 plus years in the residential real estate arena, along with my investment banking background, give you an exceptional advantage in today’s market.  There are more hurdles than I’ve ever encountered, but fortunately I know how to navigate through the buying and selling wars and can get the job done for my clients.  These days it is especially important for sellers to follow my “atypical” advice in order to avoid potential disaster from an unqualified lender on the buyer’s side or other unforeseen pitfalls.

The low inventory was tight before COVID hit and now it seems even worse.  Showings were severely curtailed for months and now that homes can be shown once again, buyers are ready to pounce.  When we made an offer for one of our clients several days ago, the listing agent told us there were already 12 offers before ours!  And while I certainly know how to write an offer that at least gets noticed, even I can’t perform magic—especially at unprecedented times such as we are experiencing now.  As much as I hate to see disappointed clients, this is becoming more common as the year goes on.  That’s why it is so important to do as much homework as possible prior to the search and have considered alternatives in case you are unable to get your first choice.  

This is a reason that new home construction is again booming, and folks are looking at that as an option.  Prices on new homes are also escalating due to the higher cost of some materials but there are options available in most price levels and in various neighborhoods.  When it comes to site location, home details and good financing, I can help you in a new construction purchase also.  I have an excellent working relationship with a number of local homebuilders and my help comes at no additional cost to you.  

Here is the bottom line:  

If you have been wanting to move, either to upgrade or move to a new neighborhood, NOW is the time.  You are likely to get more for your present home than you think and the increased equity, along with the low mortgage interest rates equals a win-win for you.

However, you won’t know any of this until you give me a call to discuss all the possibilities.  I can be reached at 719.593.1000 or by email at Harry@HarrySalzman.com and the sooner we talk, the sooner we can put your residential plan in place.

 

RATE FOR 30-YEAR MORTGAGE FELL TO LOWEST ON RECORD LAST WEEK

The Wall Street Journal, 7.17.20, RealtorMag, 7.15.20

 

For the seventh time this year, the Freddie Mac mortgage interest rates hit a new low—falling to 2.98%--the lowest rate in the almost 50 years of record-keeping. 

What this means for many potential buyers is that they can expand their budgets and get more home for the buck.  This is especially good for first time buyers who are facing record low inventories in starter home properties. They are able to look at homes that cost a bit more for the same budgetary requirements.  

Not all rates are declining at the same pace, though.  Jumbo loans, those too big to sell to Freddie or Fannie and which allow buyers to qualify for higher loans to purchase homes, are requiring somewhat stricter credit score requirements and larger down payments.  Because of the pandemic, there are fewer investors interested in buying these types of loans, according to Mike Fratantoni, chief economist at the Mortgage Bankers Association.  Since requirements vary from financial institution to financial institution, if a jumbo loan is something you are considering, it’s important to shop around for the best rate.

I can’t predict which way rates are headed, but I can tell you this.  Rates this low are exceptional and if you are in the market, NOW is a great time to buy.

 

BIDDING WARS KEEP HEATING UP

RealtorMag, 7.14.20

real estate agents all across the country are dealing with multiple offers and bidding wars are involved in considerably more than half of all sales nationally, just as they are locally.  They have been growing steadily since May, when states began to open up after mostly being on lockdown during the initial stages of the pandemic.

“Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades,” says Taylor Marr, economist for brokerage Redfin.  “It’s like a game of musical chairs where only the best bidders get a seat.  Both renters and move-up buyers who have held onto their jobs are vying for the small number of single-family homes on the market as they realize they need more space for their families.”

Both buyers and sellers are affected by the multiple offers and bidding wars, so once more let me remind you of the importance of having a seasoned professional like me on your team.  

And in the same vein…

 

SHOULD PRE-APPROVAL LETTERS BE REQUIRED FOR HOME TOURS AT PRESENT?

RealtorMag, 7.8.20

As a result of the pandemic, many home sellers are attempting to limit the number of people who walk through their properties.  Because of this, it is strongly suggested that sellers limit in-person tours to only potential buyers who can show they have been approved for a mortgage.

I have always suggested that my clients require a pre-approval letter, but in the current environment it is a MUST.  Sellers and listing agents are more cautious about who is coming into their homes and they should ensure that only those truly qualified are coming through their doors.

A pre-approval letter is important, but more important is that it be from a reputable lender.  As I mentioned earlier, one of my recent sellers was faced with a pre-approved buyer who had an unscrupulous lender, and this created a host of problems to get the deal done.  

These, and other issues should be addressed prior to listing a home in all circumstances, but most especially during the current pandemic.  As I become aware of other potential problems I will most certainly pass them on to my clients so that we can have the “cleanest” possible solution to showing homes—both in health and financial terms.

 

HOW TO MAKE YOUR OFFER STAND OUT IN A HOT MARKET

Rismedia, 7.17.2020

With the low inventory along with historically low interest rates, homes are selling faster than ever.  New listings often have multiple offers before anyone has even toured the home in person.  As I’ve been telling you time and again…this requires homework on your part, and mine, to ensure you know in advance exactly what you need, want and can afford.

It may be a bit more difficult in recent times, but it is still possible to make an offer that stands a decent chance of getting noticed. 

Keeping your offer simple is one of the most important things.  The fewer contingencies, the better.  Price is not always the motivating factor in a seller accepting an offer.  Most often, it’s a combination of the terms that work out best for the seller,  Price is important, too, but as I always say, sometimes NOT getting a home is a win because you don’t want to overpay or extend your budget simply to win a bidding war.  I know when it’s time to walk away and will guide you through the process.

One of the reasons I keep advising my clients to do their homework is because when you find “the one” you have to move fast.  There’s little or no time to mull over what you’ve seen because by then it’s likely that one or more potential buyers will have made an offer.  

However, the best tool you have in making your offer stand out is ME.  I’ve been doing this for almost half a century and know how to write an offer that will at least get a second look, if not make it to the closing table.  If we both do our parts successfully, I still can’t promise that we will be victorious, but I do know that our chances are far better than most.

 

US HOME PRICES END FIRST HALF OF YEAR ON A HIGH NOTE

Rismedia, 7.21.20

And we end this eNewsletter as we started...telling you that home prices, despite the ongoing pandemic, are still on the rise and continuing to escalate.

Home prices nationally increased at an annualized rate of 6.3% during the first six months of 2020, with a national median home price increasing to $256,740 in June.  

As you’re no doubt aware from our last eNewsletter, our local median price is over $400,000 and our price increase, will lower than in the recent past, is far better than the national average.

So, we are all off to a good start and I expect us to continue to well for the foreseeable future.  

July 7, 2020

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.

SAY HELLO TO THE real estate FAIRY…SHE’S BEEN MAKING A LOT OF RESIDENTIAL REAL ESTATE DREAMS COME TRUE

Do you believe in magic?  Well, I’m ambivalent on that one, but it’s hard to ignore the real statistics, and magic or not…residential real estate in the Colorado Springs area is approaching “magical” numbers.

With our recent local average sales price going over $400,000 for the first time, it’s happy days for local homeowners and even for those still looking to own in our town.  The mortgage rates keep hitting all time low numbers, so while our home values are escalating, the monthly payments are staying reasonable.

Now is the time to sell and trade up or buy for the first time or for investment purposes.  It’s somewhat of a perfect storm.  Higher housing prices plus historically low interest rates equal monthly payments that are affordable.  Plus, if you are looking for investment properties, the time is right because rental rates are getting higher all the time and those that cannot afford to own are looking for places to rent.

I’ve been busier than ever meeting with clients who are wanting to sell and trade up, especially since the forced quarantine has made many people realize what they truly want and need in their homes.  Bigger kitchens, great rooms and practical yards are just some of the requirements I’ve been hearing about.  

And, folks from bigger cities are finding that Colorado Springs has it all, as those of us who live here already know, and are wanting to relocate yesterday.

The problem is our lack of existing homes for sale—just as it has been in the past year or more.  It is still most definitely a seller’s market and bidding wars and homes going for considerably more than asking price are now the norm.

What does that mean to you?  For starters, if you’ve even been thinking of selling to trade up, now is the time.  You will likely get more for your present home than you might imagine and while the new home may be costing you more, the historically low interest rates will help to keep that monthly payment in a more affordable range.

If you have been wanting to begin the process of making your residential dreams come true, all it takes is a phone call to me at 593.1000 or an email to Harry@HarrySalzman.com and I can put my extensive knowledge, experience and special brand of customer service to work for you, your family members and co-workers.  

I look forward to talking with you and seeing you soon. 

 

And now for statistics…

You will see that, while home sales prices did not increase as much as in the recent past, they still managed to do quite well for a time when it was still almost impossible to visit available homes.  With the number of folks ready to buy, I would expect to see these numbers, along with the number of sales, to increase over the next few months.  

As might be expected, there were fewer new listings again last month, but considerably more than in in the recent past.  Now that we can visit homes to photograph them and talk with owners, you will undoubtedly see more homes for sale before too long.

 

JUNE 2020 

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

Here are some highlights from the June 2020 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 15.  For condo/townhomes it was 19.  

The sales price/list price for single family/patio homes was 100.8% and for condo/townhomes was 100.5%.  

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 June 2020 to June 2019 for All Homes in PPAR:                   

                        Single Family/Patio Homes:

·       New Listings were 2,020, Down 1.6%

·       Number of Sales were 1,684, Up 2.0%

·       Average Sales Price was $401,980 Up 7.5%

·       Median Sales Price was $360,000 Up 8.8%

·       Total Active Listings are 1,479, Down 30.3%

·       Months Supply is .09, Down 15.2%

 

Condo/Townhomes:

·       New Listings were 226, Down 10.0% 

·       Number of Sales were 239, Up 24.5%

·       Average Sales Price was $259,285, Up 4.2%

·       Median Sales Price was $241,400 Up 0.6%

·       Total Active Listings are 134. Down 19.8%

·       Months Supply is 0,6, Down 0.8%

 

And a look at more statistics…

JUNE 2020  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 contains information on both El Paso and Teller counties for Residential real estate. 

It is broken down by geographical areas and you can look to see how your neighborhood 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 Up 1.5%
• Median Sales Price for All Properties was Up 9.4%
• Active Listings on All Properties were Down 38.2%

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:

 

THREE REASONS HOMEBUYERS ARE READY TO PURCHASE THIS YEAR

Keeping Current Matter, 6.16.20

A recent survey by Lending Tree tapped into the behavior of over 1,000 perspective home buyers.  The results showed that 53% of all homebuyers are more likely to buy a home in the next year.  The survey went on to explore why this is so.

Here is the breakdown of why these factors are key in motivating buyers to actively engage in the home search and the corresponding wins for sellers as well:

 

1.  Low Mortgage Rates.  The biggest reason potential homebuyers indicated they’re eager to purchase this year is due to current mortgage rates which are at all time lows.  Today’s rates are making it more affordable than ever to buy a home, which is a huge incentive for purchasers.  In fact, 67% of respondents in the survey want to take advantage of low mortgage rates.  This is no surprise when comparing historic mortgage rates by decade:

 

 

2.  Reduced Spending.  Some people have also been able to save a little extra money over the past few months while under quarantine.  One of the advantages of sheltering in place is that many have been able to work remotely and minimize extra spending on things like commuting expenses, social events, and more.  For those in that category they may have a bit more saved up for down payments and closing costs, making purchasing a home more feasible today.

 

3. Re-Evaluating Their Space.  Spending more time at home has given potential buyers a chance to really evaluate their living space, whether renting or as a current homeowner.  With time to assemble a “wish list” of what they really need and want in their next home, from more square footage to a more spacious neighborhood, they’re ready to make it happen.

 

What does this mean for buyers and sellers?  With these three factors in play, the demand for housing will keep growing this year, especially over the summer as more communities continue their phased approach to reopening.  Buyers can take advantage of additional savings and low interest rates.  And if you’re thinking of selling, know that your home may be in high demand as buyer interest grows and the number of homes for sale continues to dwindle.  This may be your moment to list your house and make a move into a new home as well.

 

Bottom Line?  If you’re ready to buy or sell—or maybe both—call me sooner than later to help put your plan in motion.  With low mortgage rates leading the way, it’s a great time to take advantage of your position in today’s market.

 

HOME SELLERS ARE THE MISSING LINK IN THE HOUSING RECOVERY

Realtor Mag, 7.1.20

Housing inventory, or rather, the lack of it, continues to be buyers’ biggest hurdle.  In June the number of homes for sale plummeted nationwide, as well as here locally, prompting realtor.com to call home sellers the “missing link” to an otherwise strong summer housing market.

“Our June data reinforces that buyers are out in force and serious about finding a home,” say Danielle Hale, realtor.com’s chief economist.  “Although the new listings trend has improved, inventory continues to decline, indicating that what is coming onto the market is selling.”

Again…if you are looking to sell…NOW is the time.  Call me today and let’s see how we can make your present home work toward making your future real estate dreams come true.

 

UCCS ECONOMIC FORUM UPDATE

UCCS Economic Forum, College of Business, updated 6.26.20

I just received the updated statistics from the UCCS Economic Forum and wanted to share them with you, as always.  Please click here for the look at both the national and local updates on the economy in terms of employment, local demographics, real estate and more.

As always, if you have any questions, please give me a call.

 

HARRY’S THOUGHT OF THE DAY: