Real Estate Information Archive

Visit Website

September 23, 2013

HARRY’S BI-WEEKLY UPDATE

                 A Current Look at the Colorado Springs Residential real estate Market

SOUTHERN COLORADO ECONOMIC FORUM IS THIS WEEK…

THERE’S STILL TIME TO REGISTER BEFORE IT’S SOLD OUT.

This Thursday, September 26^th is the Southern Colorado Economic Forum, a meeting that each year addresses issues that affect the local economy such as employment, real estate trends and local dependence on the military.  This year, however, UCCS finance professor and forum director Tom Zwirlein is putting the emphasis on “infrastructure”.  With all the catastrophic fires, floods, and the aftermath of such, it’s time to talk about upgrading our the infrastructure of the City, which in turn he feels “will help create new jobs and will be a key factor in economic development”.

For anyone in business, thinking of starting a business or simply interested in what’s in store for the city of Colorado Springs, this is one Forum you won’t want to miss.

The meeting runs from 7:00 a.m. to 11:30 a.m., including breakfast, a keynote address by Jim Paulsen, Ph.D., Chief Investment Strategist of Wells Capital Management, Forum Results covering the Economic Conditions in the Pikes Peak Region and Outlook for the Next 12 Months presented by Fred Crowley, Ph.D., and Tom Zwirlein, Ph.D., UCCS College of Business and Administration, and a Business Symposium to discuss “Working Together to Resolve Regional Issues”.

As always, I am pleased to be the only Residential real estate Company sponsor of this event and I take great pride in the wonderful leadership involved in this organization that has continued to provide us all with pertinent information to help make our jobs and life a little bit easier to understand.

For more information and/or to register online, please go to:  www.SouthernColoradoEconomicForum.com .

IN THE NATIONAL NEWS THIS WEEK

National Association of Realtors, realtor.org, 9.19.13

I’ve always liked to share the National statistics with our readers for several reasons—first because a good number of our readers either reside in cities other than Colorado Springs or are interested in relocating outside our area and secondly because as is often the case—Colorado Springs statistics are better than those on a national level!

This was the case again in August.  Local statistics provided in our last eNewsletter showed the local Median Sales Price in August 2013 to be $220,000, up 4.5%, compared year-over-year.  The national Median existing-home price for all housing types in August was $212,000.  So, while you may be seeing that local sales are slowing a little, you can see that our prices continue to rise, even faster than those nationally.

“Existing-home sales increased in August and reached the highest level in six-and-a-half years, while the median prices shows nine consecutive months of double-digit year-over-year increases, according to the National Association of Realtors.

Lawrence Yun, chief economist, said the market may be experiencing a temporary peak.  ‘Rising mortgage interest rates pushed more buyers to close deals, but monthly sales are likely to be uneven in the months ahead from several market frictions,’ he said.  ‘Tight inventory is limiting choices in many areas, higher mortgage interest rates mean affordability isn’t as favorable as it was, and restrictive mortgage lending standards are keeping some otherwise qualified buyers from completing a purchase.’

NAR President, Gary Thomas, said rising home values will encourage more people to sell.  ‘As the equity position of most homeowners continues to improve, some who have been on the sidelines will list their home for sale,’ he said.  ‘Most of those owners also will be buying another home, but higher levels of new home construction going into 2014, combined with some reduction in demand from less favorable affordability conditions, will help to moderate price growth to more sustainable levels.’”

According to the “Economists’ Outlook/ Blog”,of the NAR, in the Markets with the Largest Change in Homeownership Rate 2004 vs. 2^nd Quarter 2013, Colorado placed 5^th with a -6.3% in homeownership.  Yes, folks, that’s a negative 6.3%!  The Blog went on to say, “in a moderate surprise, Colorado experienced some of the largest declines.”  It also indicated that “the national homeownership rate peaked at 69% in 2004, but fell four percentage points to 65% in the 2^nd quarter of 2013.

What does this mean to those of you who live here?  Well, bottom line:

• there is definitely an increase in demand for rentals
• appreciation of homes here is strong
• there is still the same number of people who need a place to live and if they can’t qualify or desire to own but may want to move to a new location—they are probably good quality tenants
• an increase in population with a decrease in qualifiable homeowner equals an increase in rental property costs and a higher rate of return to investors

So, yes, the time is ripe if you are looking for investment property.  I will be happy to assist you in your search for the right property so call me today at 598.3200 or email me @ Harry@HarrySalzman.com. 

HIGHER PRICES AND RISING MORTGAGE RATES CURB DEMAND

Wall Street Journal, 9.16.13, HousingWire, 9.12.13, RealtorMag, 9.12.13 & 9.16.13

After this year-long rally, the U.S. housing market is beginning to show signs of cooling off due to higher prices and interest rates, however; many Realtors are still reporting multiple offers and sales over the listing price.

Homeowners are still motivated by rising prices, and “people buying houses are citing future price increases as one of the ‘key factors’ motivating them to buy.  The most recent survey by the Real-Estate company Redfin found that almost one third of Buyers are motivated by rising prices.”

And as home equity levels continue to rise, the trade-up Buyer is reentering the market.  These folks have larger down payments for new homes and have waited some time for the opportunity to make this move up.

Rising mortgage rates are also playing a hand in driving the higher demand because move-up Buyers are wanting to take advantage of the still historically low rates.  “According to Real Trac data, more move-up Buyers are in a better position to move because 40% of all homeowners have at least 20% or more of equity in their homes now.”

The August report of the Obama Housing Scorecard showed that “home prices continue to make strong gains while the number of underwater homes has dropped by 42% since the beginning of 2012.”

A slowdown in sales is common this time of year after a busy Spring/Summer season, and “some observers in the industry are welcoming a housing slowdown.  They believe recent double-digit price gains are not sustainable and that a pullback will make the recovery move at a healthier pace.”

MORTGAGE WORRIES SPUR HOME BUYING

Wall Street Journal, the Gazette, multiple issues of both

I know what I just reported about a possible slowdown, but this past week all I read in the news was the fact that increased mortgage rate fears are definitely going to drive up home sales.  With talk of federal officials preparing to reduce the maximum size of home-mortgage loans eligible for Fannie Mae and Freddie Mac, Buyers and Sellers are starting to understand that if they’ve been on the fence, the time is now. 

The proposed move is sure to face opposition from Congress and the real estate industry, but the move is “designed to wean the mortgage market off government support and allow the market for non-government-guaranteed mortgages to take a bigger role.” 

At this point, no one knows what’s going to happen, but one thing we know for certain.  Mortgage rates will not stay at these historic lows forever.  If you are in the market to Sell and trade-up, relocate to a different neighborhood due to any number of factors, or if you simply are looking for investment properties, give me a call.  My investment banking background, along with my 40+ years in the local real estate market make me uniquely qualified to help you and your family determine what’s in your best interest. 

PHILOSOPHY OF THE DAY

FEATURED LISTING       

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs 

Visit Website

September 9, 2013

HARRY’S BI-WEEKLY UPDATE

 A Current Look at the Colorado Springs Residential real estate Market

A “SWEET AND HAPPY NEW YEAR TO ALL WHO CELEBRATE”

Last Wednesday evening marked the beginning of Rosh Hashanah, the Jewish celebration of the New Year.  I would like to wish all my friends and clients who celebrate a Healthy and Happy New Year and wish that all of you to be inscribed in the “Book of Life” for the coming year. L’Shana Tova.

HOT AUGUST STATS JUST OFF THE PRESS…

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

The Local real estate news seems to be keeping up with our recent weather—hot, hot and hot.  When you take a look at our local single family/patio home sales you will see that the number of sales in the past month was 1105 and our total active listings was 4246.  That means that 26% of current listings sold in August.  This is a plus for both Buyers and Sellers.

Some highlights the latest report, comparing August 2013 to August 2012 in PPAR include:

                        Single Family/Patio Homes:

• Number of Sales are up 23.1%
• Average Sales Price is $254,498, Up 8.0%
• Median Sales Price is $220,000, Up 4.5%
• Total Active Listings is 4,246, Up 9.9%

                        Condo/Townhomes:

• Number of Sales are up 49.1%
• Average Sales Price is $184,290, Up 23.9%
• Median Sales Price is $149,900, Up 12.3%
• Total Active Listings is 473, up 6.8%

To view the 12-page report in its entirety and to see how your individual area is performing in comparison to the rest of the local market, click here. 

What this says to me is that many of you are doing your homework when it comes to both listing your current property and trading up to another one.  As I’ve been telling you, with multiple offers, some even over the listing price, you need to be informed BEFORE you even start the Buying and/or Selling process.  Once you make a decision, you no longer have the time you once had to either make or accept an offer.  Yes, Buyers will more than likely get more than they would have in the recent past, but finding the next home is not going to be quite as easy as in the recent past, either.

Here’s where I come in.  At Salzman real estate Services I personally have more than 40 years of experience in the Local Real Estate market and can help you make the crucial personal decisions that should be made prior to listing or buying a home.   We can help you wade through the process of finding the appropriate listing price, be able to explain where prices are headed, help you get pre-approved for a new mortgage, and determine exactly what you are looking for within your budget.  This can help save time, money and more importantly, disappointment.  We’ve been through the buying and selling wars and are happy to share our experience with you.  Just give us a call at 598.3200 or email me at Harry@HarrySalzman.com .

EXISTING-HOME SALES SPIKE NATIONALLY IN JULY

NAR/realtor.org, 9.1.13, WSJ and GAZETTE, 8.22.13

On a national level, existing-home sales rose strongly in July, with the median price maintaining double-digit year-over-year increases, according to the NAR.

“Lawrence Yun, NAR chief economist, said changes in affordability are impacting the market.  “Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines,’, he said. ‘The initial rise in interest rates provided strong incentive for closing deals.  However, further rate increases will diminish the pool of eligible buyers.’

Despite higher mortgage interest rates, Yun identified compensating factors that can sustain a continued recovery.  ‘Although housing affordability conditions will become less attractive, jobs are being added to the economy, and mortgage underwriting standards should normalize over time from current stringent conditions as default rates fall.’”

It is important to note that the median existing-home price for all housing types nationally was $213,500 in July, which is 13.7% above July 2012.  This makes 17 consecutive months of year-over-year price increases, which last occurred from January 2005 to May 2006.

The housing market is inching closer to pre-crash levels.  Home prices are now within 15.2% nationally from their peak, according to a new report by Lender Processing Services.

The higher prices, coupled with the mortgage rates inching up are certainly contributing factors in the current rush to sell or purchase homes.  Fear of having to pay more for what they want are starting to motivate many who have been sitting on the fence for while with a “wait and see” attitude.  It’s no longer time to wait and see—now is the time to sell and trade up or buy—we’ve already seen the market bottom.

BUYING OR SELLING…THE TIME IS NOW

I have been through every housing cycle imaginable since my real estate career began in 1972 so there is little I haven’t seen in the way of the market value and mortgage swings.  There is no “right” or “wrong” time to Buy or Sell.  Most decisions are based on need—a larger home, a new job, a new neighborhood or school district, etc.  In the long run, and with the proper tools in your hands, the time to Buy or Sell can almost always be “now”. 

It isn’t likely that home prices will start dropping again, however, even more than the stock market, the housing market is a slave to momentum.  Prices can get out of whack as stories of double-digit gains get reported, but consider that the last babble took many years to inflate before popping.  However, for those of you looking for cheap prices, that time has passed. 

But for those of you looking for a place of your own, there is still a great argument to Buy now. 

No matter how you look at it, mortgage rates are still at historical lows and lenders are starting to loosen up on lending criteria, even for those who previously had to wait due to foreclosure, bankruptcy, etc.  While the rates are continuing to rise based on the strengthening economy, they are still very affordable.  This will help protect you on the outside chance that inflation skyrockets, because while home values could soar, your loan rate would remain the same.

Homeowners who already have ample equity are quickly building on that equity, while the 8.3 million homeowners on the fence with little or no equity are on track to regain enough equity to sell before 2015 if home prices continue to increase at the rate of 1.33 percent per month that they have since bottoming out in March 2012.”

Locally, our home equity didn’t see the drop that a large portion of the country experienced, so what that means to us is that homes here are increasing equity at a quicker pace than nationally, this shortening the time to wait for increased gains.

FIRST TIME “FLIP” IN MORTGAGE AVAILABILITY

It’s big news.  All the periodicals I read have been talking about the fact that for the first time ever—jumbo mortgage rates have dropped below those for conforming mortgages. 

This is new territory for both brokers and lenders and what it can mean essentially is that you can borrow more for less!  For those of you looking at homes that might have cost more than you thought you could afford, you might get to think again.  These loans are not for everyone, since jumbo loans are those above the $417,000 limit for mortgages backed by Fannie Mae and Freddie Mac, but for those in this market, the jumbo mortgage rates are certainly in your favor at this time.

17^TH ANNUAL SOUTHERN COLORADO ECONOMIC FORUM…MARK YOUR CALENDARS

Mark your calendars for Thursday, September 26, 1013 from 7:00 a.m.- 11:30 a.m. at The Antlers for another blockbuster presentation by the Southern Colorado Economic Forum. 

The keynote speaker is Jim Paulsen, Chief Investment Strategist, Wells Capital Management and this event has been a sell-out for the past three years, so get your reservation in early. 

This is the premier resource for local economic information—provided for and supported by—local business.  It is also 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.

Data provided to each participant can help you make better business decisions and jump-start your business planning for the coming year.

Salzman real estate Services, LTD. is proud to again be the only individual Real Estate sponsor of this event.

For more details or registration information, please go to:  www.southerncoloradoeconomicforum.com.   Be sure to register soon so you don’t miss out on what I consider to be one of the most important meetings of the year for any business owner or professional.

PHILOSOPHY OF THE DAY

The Empty Chair

Most people think of

forgetfulness as a defect.

I consider it a great benefit.

Being able to forget frees you

from the burdens of the past.

FEATURED LISTING       

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs