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Buyer Demand Grows for New Homes

by Harry Salzman

August 27, 2012
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

US AND COLORADO SPRINGS NEW-HOME SALES RISE TO MATCH 2-YEAR HIGH
The Gazette - August 23, 2012 12:02 PM & The Wall Street Journal – August 22, 2012

Sales of new homes in the United States rose 3.6 percent in July to match a two-year high reached in May, the latest sign of a steady recovery in the housing market.

The Commerce Department said Thursday that new-home sales reached a seasonally adjusted annual rate of 372,000. That's the same as in May, which was the highest since April 2010. Local experts agree that the report indicates a durable housing recovery is underway.

In Colorado Springs, home prices and sales rose again in July from a year earlier, more signs of an improving single-family housing market. Year-over-year prices have risen for five straight months, and July’s median price ($223,950), was the highest for any month since July 2008, according to PPAR figures.

Local home sales also rose in July — totaling 973, or a 21.9 percent increase from the same month last year. (Some industry experts speculate July’s increase was inflated somewhat since home sales in late June probably weren’t recorded until the next month because the Waldo Canyon fire forced the temporary closing of the El Paso County Clerk and Recorder’s Office.)

Builders, meanwhile, are growing more confident because they're seeing more traffic from potential buyers. An index of builder confidence rose to its highest level in five years in August.

Local builders responded by applying for the largest number of building permits in nearly four years last month.

Each new home built creates an average of three jobs for a year and generates about $9,000 in tax revenue, according to statistics compiled by the National Association of Home Builders.

The housing market is making a recovery in part because homes are more affordable: Mortgage rates have fallen to near-record lows. Housing prices are about one-third lower than at the peak of the housing bubble in 2006. Those trends have helped lift sales of both new and previously occupied homes.

One factor holding back sales is that there aren't many newly built homes available. New-homes for sale dipped last month to 142,000, the lowest on records dating back to 1963. (A six-month supply is generally considered healthy by economists. At the current sales pace, it would take only 4.6 months to exhaust the July supply.)

In every aspect, Colorado Springs is showing a healthy increase in home-sales and home-prices. Most cities in the US envy our numbers.

Better call us now to discuss buying your new home, before prices and mortgage interest rates both start to rise even further.

Call at 598-3200, or, 800 677-6683 (MOVE).


FANNIE SAYS HOUSING SHOWS SIGNS OF 'DURABLE, LONG-TERM RECOVERY'
Daily real estate News | Wednesday, August 22, 2012

Housing is the one bright spot in our economic recovery, according to Fannie Mae’s August 2012 Economic Outlook.

Home sales are projected to be 9 percent above year ago levels, and home prices are expected to continue to rise, according to Fannie Mae economists. A shrinking inventory of for-sale homes on the market has also led to a gradual pickup in homebuilding in many housing markets across the market.

Still, Fannie economists caution that the pace of the real estate market recovery will likely stay modest, due to factors like tight credit standards and a high number of foreclosures that continue to plague many markets. Fortunately, our Colorado Springs foreclosure picture continues to look brighter than the national outlook.

Doug Duncan, Fannie Mae’s chief economist, said in a public statement, “We continue to see positive trends in the housing sector, which is showing signs of a durable, long-term recovery."

It will never be a better time to buy your new home. Give us a call at 598-3200, or, 800 677-6683 (MOVE).


BUYER DEMAND GROWS FOR NEW HOMES
Daily real estate News | Friday, August 24, 2012

While sales of newly built single-family homes is on the rise, buyers are finding fewer choices as inventory sinks to a new record low, the Commerce Department reported Thursday.

New-home sales rose 3.6 percent in July to 372,000-unit annual rate — matching a two-year high that was set in April. New-home sales are up 25.3 percent over year-ago levels. This is further evidence that consumers are becoming more confident in local housing markets as they look to take advantage of today's very favorable prices and interest rates.

Still, inventories remain low as builders have been leery of starting too many projects. The inventory of new-homes for sale reached a record low of 142,000 units last month.

“Unnecessarily tight credit conditions are keeping builders from being able to replenish supplies as consumer demand improves," says NAHB Chief Economist David Crowe.


MORTGAGE RATES ARE ON THE WAY UP
Daily real estate News | Friday, August 24, 2012

Following several positive reports this week of a housing market gaining momentum this week, fixed-rate mortgages inched higher, Freddie Mac reports in its weekly mortgage market survey. This is the fourth consecutive week that mortgage rates have inched higher after reaching all-time lows just a month ago.

Here’s a closer look at rates for the week ending Aug. 23:

• 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.7 point, rising from last week’s 3.62 percent average. A year ago, 30-year rates averaged 4.22 percent.
• 15-year fixed-rate mortgages: averaged 2.89 percent, with an average 0.7 point, rising slightly from last week’s 2.88 percent average. Last year at this time, 15-year rates averaged 3.44 percent.
• 5-year adjustable-rate mortgages: averaged 2.80 percent, with an average 0.6 point, increasing from last week’s 2.76 percent average. Last year at this time, 5-year ARMs averaged 3.07 percent.
• 1-year ARMs: averaged 2.66 percent, with an average 0.4 point, dropping from last week’s 2.69 percent average. A year ago, 1-year ARMs averaged 2.93 percent.


HOME PRICES POST STRONGEST GROWTH SINCE 2006
INMAN NEWS -Wednesday, August 22, 2012.

NAR states that July inventory is down 24 percent from a year ago. Demand for homes grew faster than the inventory of homes for sale in July, helping push the national median price of existing homes up for the fifth month in a row.

The National Association of Realtors said today that the national median price of existing homes was up 9.4 percent from a year ago in July, to $187,300 -- the strongest annual gain since January 2006. The last time the national median home price posted five consecutive months of annual gains was January to May of 2006.

Sales of existing homes -- resales of single-family homes, townhomes, condominiums and co-ops -- were up 2.3 percent from June to July, to a seasonally adjusted annual rate of 4.47 million. That's a 10.4 percent increase from a year ago.

"Mortgage interest rates have been at record lows this year while rents have been rising at faster rates," said NAR Chief Economist Lawrence Yun. "Combined, these factors are helping to unleash a pent-up demand."

Yun said sales "could easily be much stronger" -- in a more "normal" range of 5 million to 5.5 million per year -- if not for "abnormal frictions" such as tight lending standards and shrinking inventory.

Although the number of existing homes on the market was up 1.3 percent from June to July, to 2.4 million, that represents a 6.4-month supply of homes at July's faster pace of sales, down from 6.5 months of supply in June. And looking back a year, listing inventories were down 23.8 percent, when there was a 9.3-month supply of existing homes for sale.

Analysts generally consider a six-month supply of existing homes to be a healthy balance of supply and demand. More than that indicates that sellers significantly outnumber buyers, which puts downward pressure on prices.

Writing on the blog Calculated Risk, Bill McBride noted that while the annual rate of sales in July was slightly below expectations of 4.5 million, "those focusing on sales of existing homes, looking for a recovery for housing, are looking at the wrong number. For existing-home sales, the key number is inventory -- and the sharp year-over-year decline in inventory is a positive for housing."


THE DATE IS GROWING NEARER FOR THE 16th ANNUAL SCEF FORUM - CALL NOW FOR RESERVATIONS !
The College of Business and Administration and Graduate School of Business of the University of Colorado at Colorado Springs has scheduled the 16th Annual Southern Colorado Economic Forum for September 28, 2012 – 7:00am to 11:30am at the Antlers Hilton Heritage Ballroom, in downtown Colorado Springs.

This year will feature a detailed presentation on “Economics in the Pikes Pike Region and the Outlook for the next 12 Months” by Fred Crowley, Ph.D and Tom Zwirlein Ph.D, from UCCS.

Also featured will be a very timely 1 ½ hour roundtable on “The Changing Health Care Environment: Leveraging Economic Opportunities for the Pikes Peak Region”, including a Q&A session with the panelists. (You can check out the bios of the speakers at the forum’s website .)

Salzman real estate Services is proud to have been a pioneer sponsor of this annual event since its inception and we encourage our readers to attend this important gathering which is viewed by many area business leaders as the premier economic event of the year.


Please contact the Southern Colorado Economic Forum for complete details ..or just give us a call at 598-3200, or, 800 677-MOVE (6683).

LATEST LOCAL STATISTICS FROM PPAR

Click here to see the most recent Sales and Listing information for the Pikes Peak area.
These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, or, 800 677-6683 (MOVE).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.


JOKE

You think we got election problems here.? Here are some observations regarding the recent elections in Iraq.

It's amazing -- we invade a country, overthrow a dictator, and then boom, we have an election. Well, actually, more like, boom, boom, boom.

With the election only two weeks away, US troops are sealing Iraq's borders. (We can't even seal California's borders so how does that work?)

They did not release the names of the candidates until two days before the election, to protect the candidates. (Sounds like that might b a good idea for us.)

One expert noted that “There are four areas of Iraq where it will be very difficult for people to vote: The east, the west, the north, and the south." …And this guy gets paid for his expertise?

Iraqi politicians are telling voters that if they don't vote for them they will go to Hell. Imagine using religion to try and get votes. Thank God our people would not do that.

Ex-pat Iraqis will be voting in U.S. cities like Washington DC and Detroit. Strangely enough, there is more gunfire in those cities then in Fallujah and Baghdad.

After the election …

It was a strange sight to see Iraqi voters proudly waving their blue-stained index fingers as a sign they had voted. Oh well, different countrys ..different customs ..different fingers.

Voter turnout was lowest among Iraq's Sunni minority. Saddam Hussein was Sunni and many in the group resent the loss of power. They feel alienated by the current political climate and are unwilling to accept the election results, and may react with violence. (That’s only because they aren’t as sophisticated as we are…)

The turnout for the election was higher than expected with 60 percent of Iraqis casting a vote. American observers noted that “Once their democracy is as sophisticated as ours that number should drop to 40 percent."

Thank You. Thank You !!

by Harry Salzman

August 20, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET


THANK YOU. THANK YOU. THANK YOU FOR 40 YEARS IN LOCAL real estate

As I begin celebrating a personal milestone….40 years selling real estate in the Pikes Peak Region….I must begin by thanking all of you for helping me reach this pinnacle.

I could not have accomplished this without so many of you whom I have had the privilege of working with over these many years. Your continued loyalty means more to me than I can express, but offering my sincere gratitude is a start.

You may be seeing ads commemorating this event in the local Colorado Springs Business Journal and The Gazette. And for those of you who are not ‘’locals”, I’ll be reproducing them in a future eNewsletter.

My “Rocky Mountain High” that began 40 years ago is still going strong thanks to your friendship and support.


16th ANNUAL SOUTHERN COLORADO ECONOMIC FORUM SCHEDULED

The College of Business and Administration and Graduate School of Business of the University of Colorado at Colorado Springs has scheduled the 16th Annual Southern Colorado Economic Forum for September 28, 2012 – 7:00a.m. to 11:30am at the Antlers Hilton Heritage Ballroom, in downtown Colorado Springs.

This year, the event will feature a timely roundtable on “The Changing Health Care Environment: Leveraging Economic Opportunities for the Pikes Peak Region. Debbie Chandler from Colorado Springs Partners will moderate a Town Hall format and question the panelists during the 1 ½ hour session. You may want to go to the forum’s website to review the bios of the speakers.

There will also be a detailed presentation on Economics in the Pikes Pike Region and the Outlook for the next 12 months by Fred Crowley, Ph.D and Tom Zwirlein Ph.D, from UCCS.

Salzman real estate Services is proud to have been a pioneer sponsor of this annual event since its inception and we encourage our readers to attend this important gathering which is viewed by many area business leaders as the premier economic event of the year.

Please contact the Southern Colorado Economic Forum for complete details ..or just give us a call at 598-3200, or, 800 677-MOVE (6683).

 

4 STRONG REASONS TO BUY A HOME NOW
Daily real estate News | Monday, August 13, 2012

“It’s hard to argue against buying a house now, assuming you can get a loan,” writes John Waggoner, a columnist with USA Today. Sure, Waggoner says that getting a credit check for approval of a mortgage can be a “only slightly less intrusive than a CIA background check,” but for those who are able to qualify, a lot of analysts say that now can be a good time to purchase a home.

1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900.

2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family.

3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.

4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.

And don’t forget that the recent NAR report for the Second Quarter of 2012 shows that, although home prices increased nationally by a healthy 7.3%, Colorado Springs prices increased 11.3% during the same period. That puts Colorado Springs in the top 14% of the top 147 major metro areas in the U.S. These numbers show that, as usual, our local area is better off than almost any other part of the country. It’s a great place to buy a home !!!

This news, combined with record-low interest rates, has created a flurry of contacts in our office from prospective buyers and sellers. So, better give us a call now to explore how this hot market can be used to your advantage. We will always have time to chat with our readers about the opportunities that are currently available.
Call us at 598-3200, or, 800 677-MOVE (6683).


END-OF-SUMMER CHECKLIST FOR HOME SELLERS
RISMedia Aug.13, 2012

As we near the end of summer, it’s time to look ahead and plan out home maintenance projects that have to be done before the cold weather strikes. real estate agents can help homebuyers understand which home fixes take priority if their new home isn’t quite new. Likewise, agents can help sellers prioritize their last warm weather fixes to increase a home’s curb appeal.

While the weather is warm and before the peak months of September and October, we encourage clients to walk around the exterior of their home and make a list of problematic areas. Some can be fixed by the current owners and others will require assistance from an expert. To help locate any issues and take care of them before winter arrives, we can help our clients by hiring a reliable, thorough home inspector to check around the exterior of the home. An inspector will be able to get to areas where a buyer may not want to venture, including the roof and under the home.

End-of-summer projects we might suggest to our home sellers include:

1. Outdoor painting. If the owners don’t have the time or the resources to do a full painting job, have them go around the outside of the house and touch up any areas that look rough. If they find peeling paint, the areas can be scraped and sanded, then primed and painted to maintain even texture.
2. Outdoor caulking and sealing. Windows should be checked inside and out for possible leaks or cracks. With cold weather just around the corner, leaks or cracks could mean higher heating bills. Have leaks and cracks sealed with caulk, then look at the trim around each window—if any pieces are pulling out, have the owners check for mold or rotting, then replace or reattach wood.
3. Concrete and asphalt patching. If the home features an asphalt driveway, it can be repaired with asphalt patching material. Asphalt should be sealed every other year. If the driveway or walkways are concrete, cracks or holes can be repaired with epoxy patching material.
4. Patio and deck maintenance. On wood decks, rotted boards should be replaced, painted or stained as needed, and critter nests and debris cleared. On brick patios, owners should replace missing bricks, level off areas where tree roots have pushed up the bricks and re-grout any areas where weeds or weather have degraded the hold between bricks.
5. Landscaping. Keep landscaping clean and attractive. Weeds should be pulled, dropped fruits and nuts removed from under trees to deter animals, and trees and bushes trimmed so they don’t scrape the side of the house. Many landscaping companies offer affordable fall clean-up packages for homeowners who don’t want to do the work themselves.

If the home is still on the market leading into the holidays, owners can spend the colder months doing interior cosmetic upgrades, such as replacing floor coverings, upgrading cabinet hardware and interior painting. With a prioritized list, homeowners will feel more confident in their ability to finish interior updates before the start of the 2013 real estate season.


LATEST LOCAL STATISTICS FROM PPAR

Click here to see the most recent Sales and Listing information for the Pikes Peak area.
These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.


JOKE OF THE WEEK

THE DEALMAKER

Two friends with radically different political views are on their way to the polls on election day. One guy turns to the other and says "You know, we've argued about this for months, and we're obviously going to vote for different candidates. Our votes will cancel each other out anyways, so why don't we just call it a draw and go home instead?"

The other guy agrees, they shake hands and part ways.

Another guy who overheard the conversation approaches the dealmaker and says with admiration, "That's a real sportsmanlike offer you just made!"

"Not really," guy says, "Just this afternoon I've already done this three times."

8 SIGNS HOUSING IS ON THE MEND

by Harry Salzman

August 13, 2012


HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET


NATIONAL ASSOCIATION OF REALTOR QUARTERLY REPORT SHOWS COLORADO SPRINGS HOME PRICES RISING FASTER THAN MOST OF THE NATION
NAR - WASHINGTON (August 9, 2012)

The recent NAR report for the Second Quarter of 2012 shows that home sale prices increased nationally by a healthy 7.3%. However, the same report shows that Colorado Springs prices increased 11.3% during the same period. That’s great news for our local homeowners and sellers.

This puts Colorado Springs in the top 14% of the top 147 major metro areas in the U.S. Only 21 of the major metro areas had records better than 10% in the last quarter.

This news, combined with record-low interest rates, has created a flurry of contacts in our office from prospective buyers and sellers. So, better give us a call now to explore how this hot market can be used to your advantage. We will always have time to chat with our readers about the opportunities that are currently available.

The numbers show that, as usual, our local area is better off than almost any other part of the country. Hooray for us!!!

Some of the other interesting data from the NAR report are:

Median existing single-family home prices are rising in more metropolitan areas, but a lack of inventory – notably in lower price ranges – is limiting buyer choices in an increasing number of markets around the country.

In the first quarter of 2012 there were 74 areas showing price gains from a year earlier, as opposed to 2011, when only 41 metros were up.

Lawrence Yun, NAR chief economist, said home prices are set to rise in even more markets during upcoming quarters. “It’s most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners. Inventory has been trending down and home builders are still under-producing in relation to growing demand,” he said. “Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight.”

The national median existing single-family home price was $181,500 in the second quarter, up 7.3 percent from $169,100 in the second quarter of 2011. This is the strongest year-over-year increase since the first quarter of 2006 when the median price rose 9.4 percent (but even with the gain, the current price is 20.1 percent below the record set in 2006).

Total existing-home sales, including single-family and condo, were 8.6 percent above the 4.18 million pace during the second quarter of 2011.

At the end of the second quarter there were 2.39 million existing homes available for sale, which is 24.4 percent below the close of the second quarter of 2011 when there were 3.16 million homes on the market. There has been a steady downtrend since inventories set a record of 4.04 million in the summer of 2007.

NAR President Moe Veissi, said buying power is historically high. “Home buyers today can stay well within their means. Record low mortgage interest rates and an over-correction in home prices have opened the door to many potential buyers,” he said.

A breakout of incomes needed to purchase a median-priced existing single-family home by metro area shows the typical buyer has ample income. The national median family income was $61,000 in the second quarter. However, to purchase a home at the national median price, a buyer making a 5 percent down-payment would only need an income of $39,900. With a 10 percent down-payment the required income would be $37,800, while with 20 percent down the necessary income would only be $33,600.

“Because the income required to buy to a typical home is very manageable by historical standards, any further decline in mortgage interest rates will have little effect. Changes in underwriting guidelines would have a far greater impact,” Yun said.

Click here to see this very positive NAR Quarterly Report.

 

THE WALL STREET JOURNAL REPORTS HOME PRICES CLIMBING …. AS SUPPLIES DWINDLE
The Wall Street Journal – August 8, 2012

Home prices rose by their largest percentage in at least seven years during the second quarter, propelled by low inventories of properties for sale and high demand for bargain-priced foreclosures, according to two reports Tuesday.
Prices rose by 2.5% in June from a year ago, and by 6% from the previous quarter, said CoreLogic Inc., a Santa Ana, Calif., data firm. The quarterly jump was the largest since 2005.

Separately, Freddie Mac, which uses a different methodology, said home prices during the second quarter jumped by 4.8% from the previous quarter. That was the largest jump since 2004.

The main force behind the home-price gains appears to be a shortage of homes for sale. The number of properties on the market is sharply down from a year ago.. Meanwhile, demand is up, as mortgage rates have dropped to their lowest levels in at least 60 years. With every passing month, distressed homes are being absorbed at better and better prices.

Inventories are low for a number of reasons.
• Investors have been scooping up homes and converting them into rentals
• Banks have slowed their foreclosure processes
• New home construction has been at depressed levels for years
• Many traditional sellers are sitting on the sidelines because they are unwilling or unable to sell.

Meanwhile, as inventories have shrunk, demand has picked up. Many areas have gone to multiple offers. Price increases appear to be broad-based, with 71 of the nation’s top metropolitan areas showing rising prices on a year-over-year basis in May, compared with just 19 markets in December. This was the largest number of rising metro areas since November 2006, when area home prices began to decline.


8 SIGNS HOUSING IS ON THE MEND
Daily real estate News | Monday, August 06, 2012

Some Americans are still jittery over the housing market, but here are eight positive signs that should quell some of their fears.
1. Housing prices are on the rise across the country.
2. Foreclosures have slowed, so Buyers are being forced into higher-price properties.
3 Inventories of for-sale homes on the market are decreasing…down 24 percent from a year ago.
4. Mortgage rates are at ultra-record level lows, for those who can qualify.
5. Existing-home sales were up 4.5 percent higher in June compared to one year ago.
6. Home building stocks are on the rise and housing starts rose 6.9 percent in June.
7. For investors, rents are soaring. Rental prices are at a 10-year high.
8. Home affordability is at record highs, due to falling home values and super low mortgage rates.

In fact, a recent study found that it is cheaper to buy a home than rent in basically every major city in the U.S. For those who buy, you can save the cost of renting by owning the home for five years or less.

The Wall Street Journal concludes in a recent article that if you take into account all the positive signs lately in the housing market, “Housing presents an attractive long-term investment that should hold steady or even have upside surprise in the short term.”

BY THE WAY …DID YOU KNOW THIS??


In a report that was released by Bankrate.com on Aug 6, Colorado has the 3rd lowest “mortgage closing costs” in the USA.

On average it costs $ 3,199 to close on a mortgage in Colorado compared with the national average of $ 3,754.

Just one more reason to buy your Colorado Springs home, now !!!


And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision. …

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200, or, 800 677-MOVE (6683).


SALES AND LISTING STATISTICS

Click here to see the most recent Sales and Listing information for the Pikes Peak area. These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).
 

JOKE OF THE WEEK

MY TRIP TO THE STORE

There was a bit of confusion at the store this morning. When I was ready to pay for my groceries, the cashier said, "Strip down facing me."

Making a mental note to complain to my congressman about Homeland Security running amok, I did just as she had instructed.

When the hysterical shrieking and alarms finally subsided, I found out that she was referring to my credit card.

I have been asked to shop elsewhere in the future.

They need to make their instructions to us seniors a little clearer!

HERE'S A BLAST FROM THE PAST

by Harry Salzman

August 6, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET


OK, LET’S LOOK AT ANOTHER WAY OF THINKING OUTSIDE THE BOX …BY USING real estate TO SET UP YOUR FUTURE !!

Many home-owners feel trapped in today’s real estate market. They are treading water until prices go back up. However, if you are willing to think outside the box, there are several techniques you can use to make today’s market work to your advantage. Here’s one of them:

Let’s say you are a typical homeowner who bought your $250,000 home with a 30 year mortgage. You have an interest rate of 5.0% and have not recently re-financed your home, therefore, your existing monthly principal and interest payment is $1342.05.

So, do you have any options? ..Here’s one.

At our current mortgage rates, your Principal and Interest payment for a refinanced mortgage would be:

Mortgage term rate P&I monthly payment
30 year mortgage 3.5% $1,122.61
15 year mortgage 3.0% $1,726.45
10 year mortgage 2.75% $2,385.28

Sure, that 10 year mortgage payment of $2,385.28 is almost double your present payment of $1,342, but, after ten years, your home will be completely paid for, just in time to start paying for your children’s college costs, or, for your retirement in Hawaii.

Furthermore, there are a couple of other positive factors that might bolster your switch to a 10 year mortgage. First, although your refinanced P &I payment would be higher, your tax write-off would also be much higher, thus bringing your actual net home interest expense down to around just 2%. Second, home prices are now really rising. The home you buy today will be worth much more in ten years. ….This is the kind of investment you cannot come close to matching with today’s mutual funds.

If the thought of a ten year mortgage is just too steep for you, maybe a 15 year refinance might work for you.

Just a thought !!! Call us at 598-3200, or, 800 677-MOVE (6683) to discuss this idea !!!

 

HERE’S A BLAST FROM THE PAST
The other day, I found a copy of the paperwork from the first real estate sale I ever made, when I started out in Colorado Springs, 40 years ago. It was fun to compare the present real estate market with what it was back then.

The model home I sold is at the corner of Dublin and Turret. The original sale price in 1972 was $25,560. That same home, based upon current comparables, would sell for approximately $180,000, today.
The buyers didn’t have a checking account, so they paid the earnest money with $25 in cash, with the balance ($75) paid when they made their mortgage loan application.

The mortgage on the home was a 30 year fixed VA loan at 7%.
Several of my old friends always kid me about the fact that I have such a positive view of our local market, but I think the facts about this sale prove that my optimism is well grounded. If you look at the present market value of this sale, you see that, over the past 40 years, annual appreciation on this house has been 5.7% per year (from $25,560 to about $180,000)…and, in fact, the average appreciation of all homes in Colorado Springs has been between 5-6%.

That’s better than almost any mutual fund.

Call us at 598-3200, or, 800 677-MOVE (6683) to discuss this idea !!!

CURRENT MONTHLY STATISTICS SHOW GOOD GROWTH IN LOCAL real estate AS OF JULY 31, 2012

Highlights from this month’s PPAR sales and listing statistics:
• Number of Sales - Up 15% since last month and Up 21.% since July 2011
• Avg sales price $236,062 is up 5% since July 2011
• Median sales price $198,950 up 6.6% since July 2011
• So far in 2012, number of sales is up 6.9%
• Foreclosures - As of June 30, 2012, foreclosures are down 24.1% from June 30, 2011

These monthly reports show listings and sales in every neighborhood in our area and contains such information as average and median prices within those neighborhoods.

These reports are used by your real estate agent and by Buyers and Sellers alike as they determine the best deals available for their clients. Call us at 598-3200 to discuss the details of this valuable report.

Click here to see the complete report from the Pikes Peak Association of Realtors on your local real estate market.


HOME PRICES CONTINUE TO RISE
RISMedia –Aug1, 2012

Data through May 2012, released by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed that average home prices increased by 2.2 percent in May over April.

“With May’s data, we saw a continuing trend of rising home prices for the spring,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns.

“June data for existing home sales, new home sales, housing starts and mortgage default rates were better than their year-ago levels. The housing market seems to be stabilizing.

As of May 2012, average home prices across the United States are back to the levels where they were in spring 2003 for the 20-City Composite and to summer 2003 levels for the 10-City Composite.


IS THE REAL-ESTATE REBOUND FOR REAL?
HOTWIRE.com – August, 2012

For investors, "home" is no longer a four-letter word.

Standard & Poor's on Tuesday reported that home prices rose 0.9% in May from the prior month, and have risen 2.6% since bottoming in January.

Some of the world's smartest investors, including Warren Buffett, are taking notice, placing big bets on a continued recovery in the housing market.

What does Warren Buffett see that no one else does? He just made an outsize bid on ResCap loans, the latest example of his bet that the housing market represents a great investment opportunity.

Home valuations are almost as low as they were in the first quarter of 1998, well before the most recent real estate run-up began. That has caught the attention of many investors, including Mr. Buffett, who in February said he would buy "a couple hundred thousand" homes if it were practical.

Not only are single-family home prices steadily climbing, but the Joint Center for Housing Studies at Harvard University in a June report said inventories of new, single-family homes in March were at the lowest level in 49 years. The upshot: It would take less than six months to sell the current inventory, the traditional boundary between a strong and weak market, says Eric Belsky, managing director of the center.

Most economists say the odds are good that real estate will be stronger over the next few years than it has been in the past.

Smaller investors could benefit from the trend as well, experts say, by directly buying properties.

Banks are willing to lend for investment properties as long as the investor can make at least a 30% down payment on the home, says Bankrate.com senior financial analyst Greg McBride.

"There's great opportunity in actually buying residential homes directly for investors who have the capital," Mr. Luschini says. "Prices are clearly turning the corner, and housing affordability is the highest in a generation."

PEOPLE STILL WANT TO BUY HOMES: FANNIE MAE

An overwhelming 85% of Americans prefer homeownership over renting, Fannie Mae said in a new study.

Demographics such as income, age, marital status and employment status are still considered significant drivers in the decision of buying a home or renting, Fannie found that beliefs about housing help determine whether Americans intend to rent or buy their next residence.

Fannie produced the national housing survey based on feedback from 12,014 interviews that occurred in 2011.

When looking at feedback from Americans who already have a mortgage, 40% cited attitudes about finances—such as the ease of getting a mortgage, affordability, homeownership benefits and financial stressors—as drivers that will shape whether they buy or rent their next property. About 39% of homeowners in the same group cite attitudes about housing as influencing their next move, while 21% say demographics such as income, age, marital status, employment, race, etc., will be primary drivers of their next decision.

Thirty-three percent of current renters say demographics like employment, age, income and marital status also are important homeownership drivers, while only 25% cite financial attitudes as having an impact on their next housing.

What's keeping homeownership alive is the fact that it's not a stock or bond, but something desirable for individuals and families to live in even without a significant return on investment. "The nonfinancial benefits that people derive from the consumption of housing mitigate the negative financial experiences that many homeowners have had," said Deggendorf.

The good news is homeownership as a goal for Americans hasn't changed in the past six years.

"Our study shows that the negative housing events of the past few years have not discouraged people from wanting to own a home," the Fannie study concluded. "Exposure to mortgage default, perceived home value appreciation/depreciation, and self-reported underwater status are not significant factors in the models in predicting individuals’ intentions to own a home for their next move."

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 40 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200, or, 800 677-MOVE (6683).


JOKE OF THE WEEK

"Daddy," a little girl asked her father, "do all fairy tales begin with 'Once upon a time'? "

"No, sweetheart," he answered. "Some begin with 'If I am elected.'"

It was election time and a politician decided to go out to the local reservation and try to get the Native American vote. They were all assembled in the Council Hall to hear the speech. The politician had worked up to his finale, and the crowd was getting more and more excited. "I promise better education opportunities for Native Americans!"

The crowd went wild, shouting "Hoya! Hoya!" The politician was encouraged by their enthusiasm. "I promise gambling reforms to allow a Casino on the Reservation!"

"Hoya! Hoya!" cried the crowd, stomping their feet.

"I promise more social reforms and job opportunities for Native Americans!" The crowd reached a frenzied pitch shouting "Hoya! Hoya! Hoya!"

After the speech, the Politician was touring the Reservation, and saw a tremendous herd of cattle. Since he was raised on a ranch, and knew a bit about cattle, he asked the Chief if he could get closer to take a look at the cattle.

"Sure," the Chief said, "but be careful not to step in the hoya."

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Harry A Salzman
ERA Shields / 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

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