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HARRY'S BI-WEEKLY UPDATE 8.28.2019--SECOND EDITION

by Harry Salzman

August 28, 2019

 

HARRY’S BI-WEEKLY UPDATE

*****SECOND EDITION*****

          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.  

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IN CASE YOU MISSED IT…

This article was today’s lead story on the front page of THE GAZETTE.  It should make those of you living in Colorado Springs smile BIG.

Rich Laden asked for my input and if you know me at all—you know I take every chance I can to brag about Colorado Springs, and most especially when it’s such good news.

Click here to read the article.

And as you will see, every minute you wait to buy a new home is one where you are losing equity you could be earning!  

 

Call me today at 593.1000 or email me at Harry@HarrySalzman.com.  

 

HARRY'S BI-WEEKLY UPDATE 8.28.2019

by Harry Salzman

August 28, 2019

 

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.  

 

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HOME PRICES CONTINUE TO RISE, DRIVEN BY THE LISTING SHORTAGE AND LOW MORTGAGE RATES AS WELL AS THE ROBUST ECONOMY

I’m still dealing with buying and selling frenzy and from what I can see, it doesn’t appear to be slowing down at present.  On August 19, Freddie Mac reported that the 30-year fixed-rate mortgages were averaging 3.6%, a three-year low

Last year at this time the average sat at 4.53%, which combined with the listing shortage, explains in part why home values are increasing. According to a report in Capital Economics, a 3% increase in home values nationally is predicted.  As most of you are aware, the Colorado Springs housing market has been increasing at a higher pace than the national average so I would suspect that our average increase will be considerably higher than 3%!

The report stated, “As with any other asset, lower interest rates will act to boost home values.  Other things equal, with a given income and debt-to-income ratio, a lower interest rate raises the amount a household can spend on a home”.

U.S. home sales started picking up in July, which is the first national year-over-year uptick in 17 months.  Economists are seeing this as a sign that the lowest interest rates in 50 years, along with strong employment and higher wages have finally sparked more home buying.

We continue to experience an all-time low in listings of existing homes in the Colorado Springs area and this is still creating bidding wars and selling prices considerably over asking prices.  There are relatively few “bargains” in today’s market, most especially in the lower price ranges.  And speaking of the lower price range, I’m seeing a lot of my investor and first-time homeowner clients move quickly when those homes are listed, so they don’t stay on the market for long, often for less than a day!

Another driving force in investment property purchases has been the volatile stock market of late.  Folks are sensing that over the long haul, home prices continue to rise, while stocks and bonds have been a bit riskier at present.  

On the plus side for first-time buyers, Fannie Mae and Freddie Mac are considering alternatives to the industry standard FICO scores that are used to determine an applicant’s creditworthiness.  Using an alternative scoring process would open the mortgage market to a greater number of people and lead to greater approval for those with little or no credit history.

My advice to anyone who has even considered selling their home to trade up or move to a new neighborhood or who has thought about investment property—don’t delay.  With more companies deciding to relocate to the Springs we are seeing more folks looking for homes, thus adding to the shortage.  These same folks could be the buyers of YOUR present home, allowing you the opportunity to move on and take advantage of the low interest rates.  

As always, no one knows how long these rates will be around.  If you, a family member or co-worker are even thinking of looking for a new home or an investment property….NOW is the time.  Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make all your residential real estate dreams come true.  It may not be as easy as it once was, but hey—I haven’t been so successful in my 47 plus years in this arena without learning how to weather all types of cycles and obstacles successfully.  I can help you find a way, but you need to pick up your phone and call me first!

 

13 COLORADO SPRINGS COMPANIES QUALIFY FOR THE INC. 5000 LIST

The Gazette, 8.15.19

Colorado Springs set another new record with 13 area companies qualifying for the Inc. 5000 list of fastest-growing private companies. This surpassed the 2009 record of 11 companies and should come as no surprise to anyone who reads my eNewsletter. We have seen record low unemployment rates, a robust economy, new companies relocating here, a red-hot real estate market and more in the past several years and the end is nowhere in sight. 

I wish to congratulate not only the 13 companies, but also Mayor John Suthers, the City Council, the Colorado Springs Chamber & EDC, UCCS Chancellor Venkat Reddy and others too numerous to mention that have worked so diligently to get Colorado Springs to the place where we are today.  It took a lot of hard work and compromise to get here and a big “BRAVO” is deserved by all.

 

CONDO MORTGAGES GET A BOOST

The Wall Street Journal, 8.15.19, The Gazette, 8.15.19

The Federal Housing Administration is hoping to revive the entry-level condo market for first-time buyers because FHA-backed loans require only a 3.5% down payment and lower credit score than conventional loans.

New guidelines were released several weeks ago for the types of mortgages the FHA will insure for condominiums.  Previously, just 6.5% of the 150,000 condominium developments in the U.S. were eligible for FHA-backed mortgages.  Now the FHA will start backing mortgages for individual units and will have greater flexibility to react to changes in market conditions. 

This will make it easier for first-time buyers, retirees, and minorities to become homeowners due to the lower down payment and credit score requirements.  

If a condominium purchase is something you or a family member is considering, give me a call and let’s see how these new regulations can help this become a reality.

 

UCCS ECONOMIC FORUM DASHBOARD 

UCCS Economic Forum, College of Business, updated 8.22.19

I just received the latest update from the UCCS Economic Forum and as always, I like to share it with you as soon as possible. 

It contains information on the economy, labor force/employment, and consumer sentiment for the U.S., as well as local information concerning wages, military, real estate, tourism and more.

Please click here to see the report in full and call me if you have any questions. 

 

AND…PLEASE SAVE THE DATE…

The 23rdAnnual UCCS Economic Forum will be held on Thursday, October 10, 2019 from 1:30- 4:30 p.m. at the ENT Center for the Arts. 

This always sold out event is a must for anyone doing business in the city of Colorado Springs.  Registration and additional information can be found at:  www.UCCSEconomicForum.com.

 

SENIORS ON THE MOVE IN real estate MARKET

Keeping Current Matters, 8.21.19

August 21st was National Senior Citizens Day.  According to the U.S. Census the honor is because:

“Throughout our history, older people have achieved much for our families, our communities, and our country. That remains true today and gives us ample reason…to reserve a special day in honor of the senior citizens who mean so much to our land.”

Here are some senior-related data in the housing industry:

“The number of Americans ages 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060, and the 65-and-older age group’s share of the total population will rise from 16 percent to 23 percent.”

Seniors Believe in Homeownership

Freddie Mac compared the homeownership rates of two groups of seniors:  the Good Times Cohort (born from 1931-1941) and the Previous Generations (born in the 1930s).  The data shows an increase in the homeownership rate for the Good Times Cohort because seniors are now aging in place, living longer, and maintaining a high quality of life into their later years.

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This does not mean all seniors are staying in place. Some are actively buying and selling homes.  In the 2019 Home Buyers and Sellers Generational Trends Report, the NAR showed the percentage of seniors buying and selling:

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Highlights from the NAR report:

  • Buyers ages 54 to 63 had higher median household incomes and were more likely to be married couples.

 

  • 12% of buyers ages 54 to 63 are first-time homebuyers, 5% (64 to 72) and 4% (73 to 93)

 

  • Buyers ages 54 to 63 purchased because of an interest in being closer to friends and families, job relocation, and the desire to own a home of their own.

 

  • Sellers 54 years and older often downsized and purchased a smaller, less expensive home than the one they sold.

 

  • Sellers ages 64 to 72 lived in their homes for 21 years or more.

 

Bottom Line:

According to NAR’s report, 58% of buyers ages 64 to 72 said they need help from a real estate agent to find the right home.  The transition from a current home to a new one is significant to undertake, especially for anyone who has lived in the same house for many years.  

If you’re a senior or know a senior thinking about this process, please contact me so that I may help make this transition as easy as possible.  In recent years, I’ve helped a number of my clients who I sold homes to 20 or more years ago sell their present home and relocate to another one better suited for their current needs and/or closer to family or friends. 

It takes someone with my 47 plus years of experience and my special brand of customer service to understand the needs and wants of seniors.  It’s not easy to relocate at any age, but it’s much more difficult for those who have lived in the same home for many years.  I can help make this a more enjoyable experience.

 

BUYING A HOME IS A GREAT WAY TO INCREASE YOUR FAMILY’S NET WORTH

Keeping Current Matters, 8.21.19

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Every three years the Federal Reserve conducts its Survey of Consumer Finances where data is collected across all economic and social groups.  The latest survey data covers 2013-2016.

That study revealed that the median net worth of a homeowner is $231,400--a 15% increase since 2013.  At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

Those numbers show that the net worth of a homeowner is over 44 times greater than that of a renter.

Owning a home is a great way to build family wealth…

As I’ve mentioned many times before, homeownership is a form of “forced savings”.  Every time you pay your mortgage, rather than paying someone else’s mortgage via renting, you are contributing to your net worth by increasing the equity in your home.

That is the reason Gallup reported that Americans picked real estate as the best long-term investment for the sixth year in a row.  According to this year’s results, 35% of Americans chose real estate.  Stocks followed at 27%, then savings accounts and gold.

Bottom Line:

Call me without delay to find out how you can use your monthly housing cost to increase your family’s wealth.  

HARRY'S BI-WEEKLY UPDATE 8.8.2019

by Harry Salzman

August 8, 2019

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.

 

 

THE TIMES, THEY KEEP A’CHANGING….

The only “normal” I’ve found lately is that there is none!  The “new normal” keeps changing daily and it can be challenging, to say the least. Fortunately for me I’ve been through many, many housing cycles over my 47 plus years in the local real estate arena and I know how to weather the storms and come out ahead.

I’ve been quite busy this summer and it doesn’t appear to be slowing down.  The fact that Colorado Springs is one of the hottest markets in the country right now doesn’t make it easier for anyone. In May, the National Association of Realtors released a profile of homebuyers for each metropolitan statistical area (MSA) in the U.S. compiled from 2017 U.S. Census data. The report responds to who was the typical homebuyer and what homes they typically buy in each of these MSAs, which provides insight about trends of homeownership at the local level.  The report, in comparing the number of buyers with the number of all homeowners, identified the top 10 large metropolitan areas with the highest concentration of buyers. 

One guess who came in at number one—Colorado Springs!  Companies are choosing our city as the place where they want to relocate, and small business is thriving.  Just more indications that things probably aren’t going to “normalize” in the near future. 

We are also seeing those folks who thought they had missed out on the historically low interest rates who are now earnestly thinking that NOW is the time.  Higher prices aren’t much of a problem for those who want to sell and trade up as they can more than likely get a higher price for their present home.  The only drawback is that folks need to know where they are going next before listing their current residence since it will likely sell much faster than in past years. This is just one of the consequences of the shortage of available homes for sale.

Other scenarios I’ve encountered involve multiple offers in just hours of a listing, many over listing price and all-cash offers that most sellers like since there are no “contingencies”, such as the need to obtain a mortgage or sell another home. These offers are tough to compete with, and understandably so.

If there were more homes available for sale, there would be more “normalcy” but at the moment things are moving fast when it comes to both buying and selling in most price ranges, but especially the lower levels.

I can’t stress strongly enough the need to know exactly what your needs, wants and budget constraints are prior to starting a new home search.  This is where I can be of tremendous service.  I can help direct you to the homes with the features you desire while keeping within your budget. When it comes to financing, I can also direct you to lenders that can get you the best fit for your budget.  A higher priced home might not be a problem if you can keep the monthly mortgage payment within your budget.  It’s all a matter of taking time to make sure it fits for your individual situation.  

Investment properties are also popular right now since monthly rental rates are rising and there are still folks who are being kept out of the current buying market due to prices or other situations.  These folks need to rent and are looking as I write.  If being a landlord is something you’ve considered, I’ve had lots of experience in this myself and would be happy to share the ups and downs with you.

New home construction is another option for those who can’t find what they want with the shortage of available existing homes.  That’s another area where I can help.  I have relationships with most of the local builders and can help you with site and home selection,as well as direct you to a lender that can work well with you.  And all of this is provided by me at no additional cost to you!

If you, a family member or co-worker are even considering a move or an investment property…NOW is the time.  Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make your residential real estate dreams come true.

 

JULY 2019 BROUGHT GAINS IN HOME VALUES AND A LOWER NUMBER OF SALES

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

Here are some highlights from the July 2019 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 22.  For condo/townhomes is was 12.  

The sales price/list price for single family/patio homes was 100.2% and for condo/townhomes  was 99.9%.  

You can see from those statistics alone that buying a home in today’s seller’s market is not as easy as in the past, but with me on your side you’ve got a considerably better than average shot at it.

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 July 2019 to July 2018 for All Homes in PPAR:                       

                        Single Family/Patio Homes:

·       New Listings are 1,852, Down 1.7%

·       Number of Sales are 1,662, Up 4.4%

·       Average Sales Price is $372,607, Up 7.2%

·       Median Sales Price is $332,000, Up 7.1%

·       Total Active Listings are 2,199, Down 7.8%

·       Months Supply is 1.3

 

Condo/Townhomes:

·       New Listings are 249, Up 1.6%

·       Number of Sales are 252, Up 7.2%

·       Average Sales Price is $242,335, Up 3.5%

·       Median Sales Price is $228,500, Up 4.8%

·       Total Active Listings are 198, Up 23.0%

·       Months Supply is 0.8

Now a look at more statistics…

 

JULY 2019 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 Colorado Springs and Teller counties for residential real estate.  

It is broken down by geographical areas and you can look to see how your geographic area 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 2.5%
  • Median Sales Price for All Properties was Up 7.0
  • Active Listings on All Properties were Down 18.2%

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 Black Forrest/Elbert area:

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THREE EXPERTS GIVE INSIGHTS ON INVENTORY IN THE CURRENT MARKET

Keeping current matters, 7.29.19

The current housing landscape, especially in Colorado Springs, offers greater home values, low interest rates and very high buyer demand, all of which point to the strong market forecasted to continue throughout the rest of the year.  

However, as I’ve been saying for months now…the one thing that is causing the market to tap on the brakes is an overall lack of housing inventory.

Here is what a few national industry experts have to add:

  • Lawrence Yun, Chief Economist at National Association of Realtors: “Imbalance persists for mid-top-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices.”

 

  • Mark Fleming, Chief Economist of First American: “Market conditions are ripe for increasing home sales with one, glaring exception.  The supply of homes for sale remains tight, keeping existing home sales below potential.”

 

  • Danielle Hale, Chief Economist of Realtor.com: “We’re not seeing as many new listings come up on the market…It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we’ve ever seen.”

Bottom Line?

I’ll say it one more time—if you’re thinking of selling, NOW is the time.  Demand will be strong during a period with very little competition which ideally will lead to a quick sale and a great return on your investment.  Just give me a call and let’s see if this is the right move for you and your family.

 

 

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Harry A Salzman
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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