Real Estate Information Archive

Sept. 24, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

16^TH ANNUAL SOUTHERN COLORADO ECONOMIC FORUM TO BE HELD ON THIS COMING FRIDAY, SEPT. 28, 2012.   WE HOPE TO SEE YOU THERE !!!

Where: Antlers Hilton, 4 S. Cascade Ave.

When: 7 to 11:30 a.m. Sept. 28

What are the benefits of Attending the Forum ?

The Southern Colorado Economic Forum is the premier resource for local economic information. This information is provided for—and supported by—local businesses. Salzman real estate Services is proud to have been a Supporting Member of the forum since its inception 16 years ago.

The Forum is an opportunity for you to learn about the trends and dynamics occurring nationally, statewide, and in our community, and how they will impact your business.

The Forum is a tremendous networking opportunity; you’ll have the chance to meet experts from a variety of industries, UCCS and other businesses that have an interest in the local economy.

Here are some highlights from this Friday’s Southern Colorado Economic Forum:

• Keynote address: “National and International Outlook” by Jim Paulsen, Chief Investment Strategist, Wells Capital Management.
• Forum results: Economic Conditions in the Pikes Peak Region and Outlook for the Next 12 Months presented by Fred Crowley, PhD, and Tom Zwirlein, PhD.
• Business Symposium: The Changing Health Care Environment…”Leveraging Economic Opportunities for the Pikes Peak Region”, moderated by Deborah Chandler, Executive VP and CEO of Colorado Springs Health Partners and featuring five panelists.

Participants who attend the Forum will receive a comprehensive report filled with data, statistics and trends. The content can help you uncover new opportunities, make better business decisions, deliver more compelling sales presentations and position your business as experts who are “in the know.”

Attending this year’s Economic Forum and obtaining the annual report is a great way to jump start your business planning for next year.

To register for the forum, and to see a video about the presenters at this year’s forum, CLICK HERE.

 

LOCAL ECONOMY DIVIDED AMONG GOOD AND BAD INDICATORS

Colorado Springs Business Journal - September 21st, 2012

For the past 16 years, the Southern Colorado Economic Forum, which includes senior economist and UCCS senior instructor Fred Crowley, has been telling it like it is regarding the local economy. The forum examines and compiles the numbers that describe the economic landscape — past, present and future.

But even the forum’s fortune-tellers are having difficulty producing a 2013 forecast. There are too many international, national and local events in motion. The so-called “fiscal cliff” — spending cuts kicking in along with expiring tax cuts — could cause recession in 2013 or at least curtail consumer spending. But locally, rebuilding in the aftermath of the Waldo Canyon fire could create hundreds of jobs a year for the next five years and help make up for the losses in other job sectors.

People in Colorado Springs bought more cars, electronics, furniture and clothing in 2011, which helped increase retail sales by 8.5 percent, or $1 billion, to $13.8 billion.

There has also been some unexpected good rolling into Colorado Springs by way of new housing construction. By year’s end, single family permits are expected to be up 47 percent over 2011. In the first eight months of this year, there have been more housing permits issued than all of last year. The reasons vary from pent-up demand to the historically low interest rates of 3.5 percent. And apartment buildings are having their strongest year since 2002, expecting to end the year at 750 new units.

“It tells me we are definitely coming back,” Zwirlein said. “We are not near the heydays of 2004-05, but we are well on our way to a very healthy rebound in housing construction.”

Then there is the hope of a growing health-care sector around a University of Colorado branch medical campus at UCCS. University of Colorado Health, which takes over daily operations of Memorial on Oct. 1, has agreed to pay $3 million a year for the 40-year lease term to the University of Colorado School of Medicine, to be used to create a branch medical campus in Colorado Springs.

“Certainly one of the growth areas over the past 10 years has been in the health-care sector,” Zwirlein said. “We are very interested in seeing how having a university hospital in Colorado Springs will eventually pan out.”

In eight cities with university hospitals, job creation in the health care sector outpaced all other job creation, Crowley said. In those eight cities, health care jobs were 160 percent of all jobs created, meaning without health care jobs there would have been a decline. The health care sector, Crowley said, grows employment faster, grows wages faster and grows business faster then any other sector.

“What I hope happens — and it won’t happen this year, but maybe in 2014 — there will be health care expansion on some level. The health care industry — they do create jobs. We need to move in that direction and make it grow.”

As an example, the Anschutz Medical campus in Aurora was built in 2004 and is now home to six professional schools. “They’ve created jobs, jobs, jobs,” Zwirlein said. “That is now Aurora’s financial engine and it will be their financial engine for a long time to come.”

 

MAYOR BACH INTRODUCES BUSINESS INCENTIVES, NEW AERONAUTICAL ZONE

In an effort to spur economic and business activity, Colorado Springs Mayor Steve Bach has created a standard set of economic “accommodations” for new and expanding companies, as well as a Commercial Aeronautical Zone for the Colorado Springs Airport.

Saying the accommodations – essentially economic incentives – would be available for a “limited time only,” Bach said he felt that it was essential to have a standard set of incentives for businesses interested in moving or expanding to Colorado Springs.

“This way, we don’t address it when they come to us,” he said. “It’s standardized, it’s right there for companies to see. We have to do something to address unemployment, particularly in Southeast Colorado Springs.”

The incentives are largely tax breaks and tax credits for Colorado Springs’ share of business personal property and its sales taxes. The city’s portion of those taxes are essentially erased in the newly created Commercial Aeronautical Zone, where the city hopes to attract commercial aeronautical businesses that are engaged in the manufacture, maintenance, repair or overhaul of aircraft.

To be eligible, companies must be primary employers, must create 10 new jobs and must have $1 million in new capital investment. Retail companies must be a “unique business” to the Colorado Springs area.

City Council will approve every deal, Bach said, and the deal can be pulled at any time if the company fails to provide a promised number of jobs.

To learn more about this program, contact the Mayor’s office at 385-5900.

 

THE HORRIBLE WALDO FIRE DID A LOT OF DAMAGE, …BUT IT ALSO CREATED REBUILDING OPPORTUNITIES FOR OUR LOCAL BUSINESSES

The Waldo Canyon fire wiped out 346 homes, damaging hundreds more, and tourism took a beating this summer when visitors were scared off by images of fire on national television. But the after-fire building may prove to be a welcome addition to the local economy, Fred Crowley, Southern Colorado Economic Forum chief economist, said.

Between new construction and refurnishing the homes, the post-fire activity could create 3,800 jobs over a five-year period — jobs that could generate $20 million per year in income and $790,000 a year in sales taxes.

Initial insurance claims of $353 million suggest the economic impact of rebuilding could be significant, he said. And the refurnishing is not just for those homes that burned to the ground, but for the many homes that suffered severe smoke damage.

“That’s where these numbers just get mind-boggling,” Crowley said.

Mountain Shadows residents could spend $213 million to replace the items in their homes, Zwirlein said. “I was amazed when you look at the insurance claims — the proportion that goes toward rebuilding the home and proportion that goes to restocking it — those restocking numbers are huge.”

In the meantime, the forum’s predictions for 2013 include more housing permits, reduced federal expenditures, continued low interest rates, expiring Bush-era tax cuts, and lowered economic activity due to large reductions in federal expenditures and increases in tax rates.

“There are two things the region needs,” Crowley said. “Jobs and high-paying jobs.”

 

ECONOMISTS BULLISH ON HOUSING RECOVERY

By Inman News, Thursday, September 20, 2012.

Home prices will see steady increases through 2016 starting this year, according to a quarterly survey of more than 100 economists, real estate experts and investment strategists.

Economists now forecast home prices will rise 2.3 percent in 2012 from fourth-quarter 2011, and see further cumulative rises of 4.7 percent in 2013, 8 percent in 2014, 11.4 percent in 2015, and 15.2 percent in 2016.

"This is further evidence that we're seeing a true recovery in the housing market," said Stan Humphries, Zillow's chief economist, in a statement.

"Not since mid-2010 -- in the midst of the homebuyer tax credits -- have we seen this group so bullish on housing. It's refreshing to see this optimism at a time when the market seems to be making an organic recovery, in the absence of an artificial stimulant like the tax credits."

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss what this could mean to your financial security.

 

AUGUST EXISTING-HOME SALES AND PRICES RISE

National Association of Realtors - September 19, 2012

Existing-home sales continued to improve in August and the national median price rose on a year-over-year basis for the sixth straight month, according to the National Association of Realtors®.

Total existing-home sales,  which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 7.8 percent to a seasonally adjusted annual rate of 4.82 million in August from 4.47 million in July, and are 9.3 percent higher than the 4.41 million-unit level in August 2011.

Lawrence Yun , NAR chief economist, said favorable buying conditions get the credit. "The housing market is steadily recovering with consistent increases in both home sales and median prices. The West and Florida markets are experiencing inventory shortages, which are placing pressure on prices."…and that includes Colorado Springs !!

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.60 percent in August from a record low 3.55 percent in July; the rate was 4.27 percent in August 2011.

The national median existing-home prices for all housing types was $187,400 in August, up 9.5 percent from a year ago. The last time there were six back-to-back monthly price increases from a year earlier was from December 2005 to May 2006. The August increase was the strongest since January 2006 when the median price rose 10.2 percent from a year earlier.

Total housing inventory at the end August rose 2.9 percent to 2.47 million existing homes available for sale, which represents a 6.1-month supply 4 at the current sales pace, down from a 6.4-month supply in July. Listed inventory is 18.2 percent below a year ago when there was an 8.2-month supply.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss how rising home prices might affect your decision to buy now !!

 

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

Here are some actual headlines from around the country

Include Your Children When Baking Cookies

Something Went Wrong In Jet Crash, Expert Says

Police Begin Campaign To Run Down Jaywalkers

Safety Experts Say School Bus Passengers Should Be Belted

Survivor Of Siamese Twins Joins Parents

Iraqi Head Seeks Arms

Panda Mating Fails; Veterinarian Takes Over

British Left Waffles On Falkland Islands

Lung Cancer In Women Mushrooms

Teachers Strike Idle Kids

Obama Wins On Budget, But More Lies Ahead

Enraged Cow Injures Farmer With Ax

Plane Too Close To Ground, Crash Probe Told

Miners Refuse To Work After Death

Juvenile Court To Try Shooting Defendant

Stolen Painting Found By Tree

Killer Sentenced To Die For Second Time In 10 Years

Never Withhold Herpes Infection From Loved One

War Dims Hope For Peace

If Strike Isn't Settled Quickly, It May Last A While

Cold Wave Linked To Temperatures

Enfields Couple Slain, Police Suspect Homicide

Red Tape Holds Up New Bridge

Typhoon Rips Through Cemetery; Hundreds Dead

Man Struck By Lightening Faces Battery Charge

New Study Of Obesity Looks For Larger Test Group

Astronaut Takes Blame For Gas In Spacecraft

Arson Suspect Held In Massachusetts Fire

Local High School Dropout Cuts In Half

Hospitals Are Sued By 7 Foot Doctors

Sept. 16, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

COLORADO IS ONE OF THE 5 STRONGEST PERFORMING HOUSING MARKETS IN THE USA
Daily real estate News | Tuesday, September 11, 2012

Several real estate markets are showing signs of recovery, with median home prices and sales rising. But which markets are showing some of the strongest signs of recovery?

24/7 Wall St. recently evaluated home price changes for the year ending in July, foreclosure data, the unemployment rate, and other factors to help determine which housing markets are performing the strongest.

The states that emerged on top of the list are:
1. Arizona
2. Idaho
3. Utah
4. South Dakota
5. Colorado - Home price change in the last year: +7.3%. Median home price: $240,000

And keep in mind that Colorado Springs historically beats the rest of the state in these areas !!!

TRULIA SAYS BUYING A HOME IN COLORADO SPRINGS IS CHEAPER THAN RENTING
TruliaTrends – Sept. 13, 2012

The most important housing decision that most consumers face is whether to rent or to buy. So to help them with this decision, Trulia took a look at the key market factors affecting the cost of homeownership. First off, asking home prices have risen by 2.3% year over year in August (3.8% excluding foreclosures); however, rents have risen more (4.7%). This means that prices are lower relative to rents than they were a year ago.

But more importantly, mortgage rates have fallen: the best rates this summer have been around 3.5%, while last summer rates were closer to 4.5%. Based on asking prices and rents during the summer of 2012, buying is now cheaper than renting in the 100 largest U.S. metros. There is no market where the financial decision is even close, so long as you plan to stay in the home for at least seven years, get 3.5% mortgage, and itemize your tax deductions.

As noted in the Trulia survey of the top 100 metro areas in the US, the monthly cost of homeownership in Colorado Springs is $741. The monthly cost of renting is $1,291. That’s a difference of 43%, or, $550 per month more in your pocket.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss what this could mean to your financial security.

FEWER HOMEOWNERS UPSIDE DOWN ON MORTGAGES
THE GAZETTE September 12, 2012 12:04 PM

The picture has brightened for local homeowners who had been underwater on their properties.
In Colorado Springs, 19.9 percent or 30,584 of all residential properties with a mortgage were in negative equity during the second quarter of this year, according to a report released Wednesday by California-based housing data firm CoreLogic.

Negative equity refers to owners who owe more on their properties than what they are worth — known as being underwater or upside down. A decline in home values, an increase in mortgage debt or a combination of the two contribute to negative equity, according to CoreLogic.

The latest Colorado Springs figure was an improvement from the first quarter, when 23.4 percent or 35,833 local properties were underwater, CoreLogic’s report shows. During the second quarter of 2011, the figures were 22.1 percent or 34,109 properties.

Colorado Springs’ figures mirror state and national trends:
• In Colorado, 18.2 percent of residential property owners were underwater in the second quarter, compared with 20.7 percent in the first quarter and 20.6 percent in the second quarter of 2011.
• Nationally, 22.3 percent of all residential properties with a mortgage were underwater in the second quarter, compared with 23.7 percent or in the first quarter and 22.5 percent in the second quarter of last year.
• Nevada had the highest percentage of mortgaged properties in negative equity — 59 percent, according to CoreLogic.

Soaring home prices during the spring and summer, lower inventory levels and declining numbers of bank-owned home sales all have contributed to the improvement in the numbers and percentages of upside down properties, Mark Fleming, CoreLogic’s chief economist, said in a news release.

It’s obviously time for Sellers to put their homes back on the market. Prices are rising and there is a shortage of “homes for sale”.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss listing your home.

GOOD NEWS FOR HOMEBUYERS - FED MOVES TO KEEP RATES LOW
Daily real estate News | Friday, September 14, 2012

The Federal Reserve announced Thursday that, in an effort to re-ignite economic recovery, it was taking aim at mortgage rates — a move that will likely take rates even lower from their current record lows.

The Federal Reserve announced it will purchase $40 billion of mortgage-backed securities that will help boost the recovery in the housing market. What’s more, the central bank said that it will continue with the purchase program until the economy shows greater improvement, particularly with unemployment.

"These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative," according to the Fed in a public statement.

As mortgage rates sink lower, home shoppers have been taking advantage. The Mortgage Bankers Association announced this week that mortgage applications for home purchases were up 8.1 percent for the week ending Sept. 7. Mortgage applications for purchases also were up 7 percent from year-ago levels, MBA said.

"While low interest rates impose some costs, Americans will ultimately benefit most from the healthy and growing economy that low interest rates promote," Fed Chairman Ben Bernanke said Thursday following the Fed committee’s meeting.

SURVEY: HOMES ARE SELLING FASTER
Daily real estate News | Friday, September 07, 2012

Sales are quickening their pace as the time to sell a home decreases and falls more in line with a “balanced” housing market, according to new research by the National Association of REALTORS®.

The median time a home listed for sale was on the market in July was 69 days, down from 98 days one year earlier. Broken down further, one-third of homes purchased in July were on the market for less than a month, and one in five of homes purchased in July were on the market for at least six months.

“As inventory has tightened homes have been selling more quickly,” says Lawrence Yen, Nar’s chief economist. “A notable shortening of time-on-market began this spring, and this has created a general balance between home buyers and sellers in much of the country. This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.”

By the end July, a 6.4-month supply of homes were on the market at the current sales pace. That is 31.2 percent below year-ago levels, when there was a 9.3-month supply.

With supplies of homes tighter, economists expect home prices to continue their trend upward.

“Our current forecast is for the median existing home price to rise 4.5 to 5 percent this year and about 5 percent in 2013, which is somewhat stronger than historic norms because of the inventory shortfall that is most pronounced in the low price ranges,” Yen says.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss how rising home prices might affect your decision to buy now !!

 

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.

And last, but not least… to all of our Jewish friends and clients, Happy New Year – 5773.

JOKE

A local United Way office realized that the organization had never received a donation from the town's most well-entrenched politician. The person in charge of contributions called him to persuade him to contribute.

"Our research shows that out of a yearly income of at least $500,000, you give not a penny to charity. Wouldn't you like to give back to the community in some way?"

The politician mulled this over for a moment and replied, "First, did your research also show that my mother is dying after a long illness, and has medical bills that are several times her annual income?"

Embarrassed, the United Way rep mumbled, "Um ... no."

The politician interrupts, "or that my brother, a disabled veteran, is blind and confined to a wheelchair?"

The stricken United Way rep began to stammer out an apology, but was interrupted again.

"or that my sister's husband died in a traffic accident," the politician's voice rising in indignation, "leaving her penniless with three children?!"

The humiliated United Way rep, completely beaten, said simply, "I had no idea..."

On a roll, the politician cut him off once again, "So if I don't give any money to them, why should I give any to you?"

September 10, 2012

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

IT’S “THANK YOU” TIME

Over the past 40 years of selling real estate in the Colorado Springs area, we have been fortunate enough to establish a large network of clients and friends. As a matter of fact, most of our sales are sent to us by this loyal group. As a result, we haven’t had to use traditional advertising very heavily. We appreciate the wonderful support that our network has given us. ....We couldn’t have done it without you !!!

However, as we celebrate our 40 years of history in the Colorado Springs area, we felt it was time to formally thank our many friends for their support and to get acquainted with newcomers to our area by taking out ads in both The Colorado Springs Business Journal and the Gazette. We hope you enjoy them.

We invite our readers to CLICK HERE to see our ad which appeared on Friday, Sept. 7 in the CSBJ. Our Gazette ad will appear within the next few weeks. (Please ...no comments about how I look older!!)

Thanks, everybody for your referrals and your support.

Harry

WHAT’S HAPPENING TO OUR LOCAL HOME PRICES ??

The outlook for our local real estate market is terrific. The latest statistics issued by the Pikes Peak Association of Realtors shows that our single-family home sales in August were 898. That’s up 7.9% over August 2011. In fact, our local home sales have increased in 12 of the last 14 months.

Our sales prices have also shown a healthy increase over August, 2011. Our average sales price of $235,711 is 6.5% over August, 2011 and our median sales price of $210,500 is 10.2% over August, 2011. To put this into perspective, keep in mind that the national increase in home prices over August, 2011 is only 3.8%. As usual, the Colorado Springs real estate market is the envy of the nation.

Can this healthy growth continue? It certainly can and will, especially considering that our inventory of homes for sale is decreasing. Our present inventory of 3863 is 13.8% lower than last year.

Not to keep repeating myself, but NOW IS THE TIME TO BUY !!!
If you would like to see a complete overview of our local real estate market, CLICK HERE for the complete monthly PPAR report.

 

MEDIAN DAYS ON MARKET SHRINKS TO 69
Inman news, Wednesday, September 5, 2012.

The National Association of Realtors announced today that the median days on the market for listed homes had shrunk to 69 days. In announcing this new metric of 69 median days on market. This indicates a dwindling inventory. In fact, NAR statistics show median days on market is down 29.6 percent from a year ago, from 98 days in July 2011 to 69 days in July 2012. This is good news for Sellers, but, for Buyers, it indicated that home prices will continue to rise and bidding wars for homes might be on the horizon.

From 1987 through 2011, time on market was typically 6.9 weeks, NAR said. During that time, NAR's data on existing-home sales showed the supply of inventory averaging seven months, indicating slightly less demand from sellers than in a balanced market.
In periods where for-sale inventory amounted to a six-month supply of homes, median selling time was just over six weeks.

When inventories dipped to an average of 4.3 months during the boom years of 2004 and 2005, median selling time dropped to four weeks. Time on market peaked at 10 weeks in 2009 when there was a 10-month supply of homes for sale.

Factoring out short sales -- which typically take three months or longer to sell -- the median time on market for traditional sellers currently "appears to be in the balanced range of six to seven weeks," said NAR Chief Economist Lawrence Yen.

Housing inventory and time on market correlates with rising and falling prices. If housing construction doesn't pick up to normal within two years, Yun said a shortage of listings could lead to "above average" price appreciation.

 

The bottom line for our readers: Better buy now !!! Tomorrow will cost you more!!!

 

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 39 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).

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. …

 

FANNIE, FREDDIE TO HIKE LOAN FEES
Daily real estate News | Tuesday, September 04, 2012

The Federal Housing Finance Agency (FHFA) announced that mortgage giants Fannie Mae and Freddie Mac will increase — by an average of 10 basis points — the fees they charge lenders to guarantee loans.

The fee increases are expected to be passed along to borrowers, possibly with higher interest rates, Bloomberg reports. However, banking trade groups say any increases should be minimal and shouldn’t hurt mortgage lending.

For example, a rise of 10 basis points could potentially cost a borrower with a $200,000 mortgage about $4,000 over the term of a 30-year loan, Bloomberg reports.

“It’s obviously going to have a small impact on pricing, but given that mortgage rates are the lowest they’ve ever been, we think it’s probably the right time to do it,” Joseph Pigg, vice president at the American Bankers Association, told Bloomberg.

The purpose behind the fee increase was to increase the financial stability of the two mortgage giants as well as start decreasing their stake in the mortgage market, says Edward J. DeMarco, FHFA acting director.

Fannie Mae and Freddie Mac own or guarantee about 60 percent of all mortgages in the U.S.

 

JOKE OF THE WEEK

A tourist wanders into a back-alley antique shop somewhere in Washington DC. Picking through the objects on display he discovers a detailed, life-sized bronze sculpture of a rat. The sculpture is so interesting and unique that he picks it up and asks the shop owner what it costs. "Twelve dollars for the rat, sir," says the shop owner, "and a thousand dollars more for the story behind it." "You can keep the story, old man," he replies, "but I'll take the rat."

The transaction complete, the tourist leaves the store with the bronze rat under his arm. As he crosses the street in front of the store, two live rats emerge from a sewer drain and fall into step behind him. Nervously looking over his shoulder, he begins to walk faster, but every time he passes another sewer drain, more rats come out and follow him. By the time he's walked two blocks, at least a hundred rats are at his heels, and people begin to point and shout. He walks even faster, and soon breaks into a trot as multitudes of rats swarm from sewers, basements, vacant lots, and abandoned cars.

Rats by the thousands are at his heels, and as he sees the waterfront at the bottom of the hill, he panics and starts to run full tilt. No matter how fast he runs, the rats keep up, squealing hideously, now not just thousands but millions, so that by the time he comes rushing up to the water's edge a trail of rats twelve city blocks long is behind him.

Making a mighty leap, he jumps up onto a light post, grasping it with one arm while he hurls the bronze rat into the Potomac Tidal Basin with the other, as far as he can heave it. Pulling his legs up and clinging to the light post, he watches in amazement as the seething tide of rats surges over the breakwater into the Basin, where they drown.

Shaken and mumbling, he makes his way back to the antique shop."So, you've come back for the rest of the story," says the owner. "No," says the tourist, "I was wondering if you have a bronze congressman. "

September 4, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

WHAT’S HAPPENING IN THE SPRINGS ?

Click here to see the latest PPAR Sales and Listing statistics for July (August data will be published this week and will be in next week’s Enewsletter).They show that area home prices are on the rise.  In July, the median price of homes sold climbed to $212,000, a 6.6% increase over the same month last year. Year-over-year prices have now risen for five straight months.

Shrinking Inventory, rising prices, mortgage rates at an all-time low, buyers beginning to have to get into bidding wars for homes …… Isn’t it time for you to jump in and get that new home you have been considering …while “the iron is hot”?

Call at 598-3200, or, 800 677-6683 (MOVE), to discuss your new home.

 

JULY PENDING HOME SALES RISE NATIONWIDE

DSnews.com, RISMedia, Wall Street Journal, Daily real estate News, Wednesday, August 29, 2012

Pending home sales rose in July to the highest level in over two years and remain well above year-ago levels, according to the National Association of REALTORS® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.4 percent to 101.7 in July from 99.3 in June and is 12.4 percent above July 2011 when it was 90.5.

Lawrence Yun, NAR chief economist, said the index is at the highest level since April 2010, which was shortly before the closing deadline for the home buyer tax credit. “While the month-to-month movement has been uneven, more importantly we now have 15 consecutive months of year-over-year gains in contract activity,” Yun said.

Limited inventory is constraining market activity. “All regions saw monthly increases in home-buying activity except for the West, which is now experiencing an acute inventory shortage,” Yun added.

Existing-home sales are projected to rise 8 to 9 percent in 2012, followed by another 7 to 8 percent gain in 2013. Home prices are expected to increase 10 percent cumulatively over the next two years.

“Falling visible and shadow inventories point toward continuing price gains. Expected gains in housing starts of 25 to 30 percent this year, and nearly 50 percent in 2013, are insufficient to meet the growing housing demand,” Yun said.

Colorado Springs has been ahead of this curve all during 2011 and 2012. We are about 18 months ahead of the rest of the country, according to Fred Crowley, chief economist for the Southern Colorado Economic Forum.

 

AS PRICES RISE, HOMEBUYERS WORRIED THEY'RE LOSING BARGAINING POWER

Daily real estate News | Thursday, August 30, 2012

While home buyers have been holding a lot of bargaining power in the housing market the last few years, more of them say they are now feeling the market shift against them, according to a new survey.

Seven in 10 home buyers say they’ve faced competition on a home for at least one offer, according to a recent survey of 982 buyers in 19 markets conducted by Redfin. Of those surveyed, 46 percent say now is a good time to purchase a home. On the other hand, 32% now say it’s a good time to sell.

"Many buyers who emerged from hibernation this spring eager to take advantage of low rates and near-bottom prices now seem to have become demoralized by the intense competition for a limited selection of homes for sale," Redfin said in a public statement about the survey results.

The survey also found the number of buyers expecting home prices to rise drastically grew — 61% say prices will rise compared to 32 percent during the first quarter.

Give us a call to discuss our local market and let us help you find the best deals available.

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

 

HOUSING MAY BE WHAT DRIVES ECONOMIC RECOVERY 

Daily real estate News | Wednesday, August 29, 2012

As the economy struggles to find footing, many analysts are calling housing a bright spot, particularly during the second quarter.

Home sales for existing-homes over $100,000 have increased compared to one year ago basically in every region of the country, according to National Association of REALTORS® data. Meanwhile, inventory levels have dropped nearly 26 percent over the past year. Also, reports show home prices are stabilizing and even increasing in some markets.

“The housing market is clearly superior this year compared with the past four years,” says Lawrence Yun, NAR’s chief economist. “The latest increase in home contract signings marks 13 consecutive months of year-over-year gains.”

Columnist Kevin Mahn for Forbes writes that “an improving housing market is critical for consumer confidence, and the economic recovery overall, as home equity still accounts for over 16 percent of household net worth” (according to Federal Reserve data as of the end of the second quarter of 2010).

 

SURVEY: HOUSING IS STILL A BIG PART OF THE AMERICAN DREAM

Daily real estate News | Tuesday, August 28, 2012

Americans are getting more optimistic about their financial future, and they believe housing still plays an important part in that, according to a poll of 1,000 to 2,000 people conducted by FTI Strategic Communications.

Sixty-two percent of Americans say they expect the economy to improve within the next year. What’s more, 73 percent of those surveyed say home ownership is part of achieving the American Dream.

According to the survey, Americans believe they increasingly hold their financial fate, with 60 percent saying that they can be comfortable financially by working hard and being savvy with their investing.

What’s more, 44 percent say they believe they’ve had more opportunities than their parents.

 

AMERICANS: HOME OWNERSHIP STILL A GREAT INVESTMENT

Daily real estate News | Friday, June 03, 2011

Seventy-five percent of Americans say that “owning a home is the best long-term investment they can make” and is worth the risk of ups and downs in the housing market,” according to a new survey of 2,000 bipartisan voters by the National Association of Home Builders.

The survey found Americans to be optimistic about home ownership. Eighty-one percent of those who own their homes outright, 76 percent with mortgages, 67 percent of renters, and 65 percent who have underwater mortgages cited home ownership as the “best long-term investment.”

When survey respondents were asked whether they’d recommend buying a home to a friend or family member just starting out, 80 percent of Americans said “yes.” Even home owners currently underwater — those who owe more on their mortgage than their home is currently worth — overwhelmingly (78 percent) said they would recommend home ownership to family or friends starting out.

More buyers are coming up through the pipeline too. The survey found that 73 percent of those surveyed who do not own a home said their goal is eventually to buy one.

The NAHB survey also found:

▪ 58 percent of Americans oppose eliminating the mortgage-interest deduction and 63 percent oppose lowering it. What’s more, 57 percent of those surveyed say they are less likely to support a candidate for Congress who wanted to eliminate the mortgage-interest deduction.
▪ Respondents were split on about requiring a 20 percent down payment to purchase a home: 49 percent were in favor and 49 percent opposed it. However, mortgage holders and renters aged 18 to 54 were more opposed to it: 58 percent of younger mortgage holders and 59 percent of younger renters opposed adding a 20 percent down payment requirement.

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.

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JOKE OF THE WEEK

Here are a few of the most famous observations about elections:

If the World Series runs until election day, the networks will run the first one-half inning and project the winner. ~Lindsey Nelson

It's not the voting that counts; it's the counting. ~Tom Stoppard, Jumpers

Politicians and diapers should be changed frequently and all for the same reason. ~José Maria de Eça de Queiroz, translated from Portuguese

How come we choose from just two people to run for president and 50 for Miss America? ~Author Unknown

If we got one-tenth of what was promised to us in these acceptance speeches there wouldn't be any inducement to go to heaven. ~Will Rogers

If God wanted us to vote, he would have given us candidates. ~Jay Leno

The problem with political jokes is they get elected. ~Henry Cate, VII

Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

If con is the opposite of pro, is Congress the opposite of progress? ~Author Unknown

George Washington is the only president who didn't blame the previous administration for his troubles. ~Author Unknown

Every two years the American politics industry fills the airwaves with the most virulent, wall-to-wall character assassination of nearly every politician in the country - and then declares itself puzzled that America has lost trust in its politicians. ~Charles Krauthammer

I offer my opponents a bargain: if they will stop telling lies about us, I will stop telling the truth about them. ~Adlai Stevenson, campaign speech, 1952

During a campaign the air is full of speeches - and vice versa. ~Author Unknown

If voting changed anything, they'd make it illegal. ~Emma Goldman

A man that would expect to train lobsters to fly in a year is called a lunatic and is confined to an institution; but a man that thinks men can be improved by an election is called a reformer and is allowed to remain at large. ~Finley Peter Dunne, Mr. Dooley's Philosophy, 1900

The best argument against democracy is a five-minute conversation with the average voter. ~Winston Churchill

Ohio claims they are due a president as they haven't had one since Taft. Look at the United States, they have not had one since Lincoln. ~Will Rogers