Real Estate Information Archive

                                                            

September 28, 2015

HARRY’S BI-WEEKLY UPDATE

                                  A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

                                       

LOCAL HOUSING STATISTICAL REPORTS SHOW CONTINUED POSITIVE TREND

Pikes Peak REALTORS Services Corp.,

PPAR recently released the August 2015 “Monthly Indicators” and “Local Market Update” for El Paso and Teller Counties with data current as of September 11, 2015.  These reports go into more detail than the August “PPAR Monthly Statistics “I published several weeks ago and I know you will be as happy as I was to see this continued upward trend in local Residential real estate. 

The “Activity Snapshot” shows the one-year change:

• Sold Listings for All Properties were up 23.9%
• Median Sales Price for All Properties was up 2.7%
• Active Listings on All Properties were down 31.4%.

This is great news for us all.  Those who have wanted to sell and trade up but found themselves “upside down” equity-wise in recent years are now seeing increased equity that could enable them to make a move while interest rates are still historically low. 

With the easing of loan, credit and down payment qualifications, the time is possibly right for first-time buyers to enter the housing market.  This is especially important with rental prices going sky high nationwide as well as locally.

You can click here for the entire 16-page “Monthly Indicators” report.  I’d like to share a couple of pages from that report that I feel will make you smile.

The average sales price on Single Family/Patio Homes is up 7.5% year-to-date, and while the Townhome/Condo market is still fluctuating, it is remaining relatively stable.  Inventory in both categories is down, which is contributing to the price increases but also making it a bit harder for those looking to buy.  I still contend that there is a home out there for anyone looking; however, sometimes you might need to re-think your wants and needs or look at a neighborhood that you might have missed in your search.

The “Total Market Overview” is very positive and I thought you might like to peruse it even before you read the report in its entirety.

      

 

      

 

      

 

Below I’ve highlighted just one area so that you can see the type of information available for the specific neighborhoods included in the 33-page “Local Market Update”.  To see data on all areas, please click here.

            

As you can see, there is valuable information here that can help you in making your personal housing decisions.  There are a lot of variables to consider in each particular neighborhood and that’s why I encourage you again and again to use a competent, knowledgeable real estate Broker when it comes to your individual housing needs.  We know the market, we know the neighborhoods, and most importantly, we get to know YOU.  Each transaction is different, based on the wants, needs and budget of a particular family and understanding those factors are an intricate part of whether or not a home can get to closing.

If you have any questions concerning these reports, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com.  I’m ready to help make all your Residential real estate dreams come true and the time to start acting on them is NOW.

 

NOTE TO INVESTORS AND WANNA BE’S--RENTAL MARKET TO REMAIN STRONG FOR YEARS TO COME

Relator Mag, 9.21.15, The Gazette, 9.15

If you’re currently an investor or simply looking into investment property—now is a great time to expand your Residential real estate portfolio.

According to Frank Nothaft, chief economist for CoreLogic and former chief economist at Freddie Mac, the single-family rental market will continue to stay strong for years to come. 

“Since the great recession began, household formation has been anemic,” Nothaft noted in a column for HousingWire.  “But this year household formation will be at its highest point in 10 years—close to 1.7 million new households—many of which will be renters.”

Of the more than 5.8 million homeowners who lost their homes due to foreclosure during the housing crisis of the last seven years many have become renters, which has boosted growth of the single-family detached rental stock. 

Approximately 35 percent of all rental stock are single-family rentals and these are the ones that tend to have the lowest vacancy rate—less than 3 percent compared to 8 percent or more among larger apartment buildings, Nothaft notes.

Demand is pushing up rental rates, and “no matter how you crunch the numbers, the outlook for rentals looks strong for the foreseeable future,” indicated Nothaft.

On the local scene it was mentioned this week that at least five Colorado Springs-area aging apartment buildings have been sold in recent weeks, indicating that buyers are interested in multi-family properties regardless of their age.

The area’s vacancy rate fell to 4.6 percent in the second quarter of 2015, down almost a full percentage point from the same time last year according to the Colorado Division of Housing. This can be attributed to young people who don’t want or can’t qualify for a mortgage or retirees who are looking to downsize and seeking maintenance-free living. 

With interest rates still low, and the region’s economy steadily improving, buyers for both multi-family and single-family investment properties are pouncing while there’s time.

If you’ve considered single-family investment property, the time is ripe.  Just give me a call at 598.3200 and let’s discuss how you can make this a part of your investment portfolio today.

 

INCREASED LOCAL TAX COLLECTIONS INDICATE CONSUMER CONFIDENCE

The Gazette, 9.22.15

Sales tax collections in Colorado Springs rose last month to their biggest percentage gain in almost a year and tax revenues have increased for six straight months on a year-over-year basis. 

This is signification since the city relies on the tax to fund more than half its general fund budget that pays for many basic local services.  The sales tax report is another vehicle used by economists, businesses and others to keep tabs on the health of the city’s economy. 

According to Doug Price, CEO of the Colorado Springs Convention and Visitors Bureau, the Pikes Peak region has had a strong tourist season in 2015, which was boosted by the visitors who came for the Broadmoor Pikes Peak International Hill Climb, the Pikes Peak or Bust Rodeo and the Rocky Mountain State Games.    

He also said that lower gas prices encouraged more people to travel and explore tourist attractions. 

I’m always happy to share good news about our local economy, because let’s face it, when the city does well, the citizens do well and when the citizens do well, they invest in real estate, which in turn continues to earn equity as home prices increase.  Another “win-win” for us all.

 

STRONG ECONOMY TO ATTRACT MORE BUYERS

Realtor Mag, 9.17.15

Due to positive consumer spending and job growth, Fannie Mae researchers are predicting a strong economic gain in the second half of 2015, which will likely offset recent market volatility and heightened anxiety on Wall Street.

With full-time employment now surpassing its pre-recession peak and average hourly earning posting recent gains, we can look for increased consumer spending in the months to come according to Fannie Mae’s Economic & Strategic Research Group.

Doug Duncan, Fannie Mae’s chief economist, says “Continued strong performance of year-to-date home sales and modestly weakening leading indicators confirm that our prior forecast of existing home sales this year remains valid.” 

“Sub-par single-family new home constructions, however, has been somewhat disappointing, and as a result, we have lowered our projected single-family starts projections for 2016.  We anticipate total mortgage originations to increase approximately 25 percent for all of 2015, and total productions volume to decrease somewhere in the area of 18 percent in 2016, with the refinance share falling about 15 percentage points,” he added.

Overall, Fannie Mae is projecting economic growth of 2.4 percent for 2015—up slightly from 2.1 in its prior forecast.  “Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices,” Duncan says.

Bottom Line?  It’s a great time to own Residential real estate.  With price increases, low interest rates and fewer new construction starts, your home is earning equity as I write.  If you’re looking to sell and trade up, now’s a great time.  If you’re looking to buy for the first time or for investment purposes, it’s a good time as well. 

The Federal Reserve hasn’t raised rates yet, but Janet Yellen, chairperson for the Fed, has indicated that it is still her intent to raise rates before the end of this year.  At present though, with the easing of mortgage loan, credit and down payment requirements in a number of categories, now is looking like a great time to check out all the possibilities.  Just give me a call and let’s get the ball rolling.

 

HARRY’S JOKE OF THE DAY

       

 

                                                            

September 15, 2015

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

                                

As most of you are aware, I’ve always advocated the importance of home ownership in a person’s financial portfolio.  My background in Investment Banking and 43 years in the real estate arena has consistently shown this to be a correct position in most situations.  For example, the average long- term appreciation during my 43 years in the Colorado Springs market has been 5.7%. You will see that this is even better than the national long-term appreciation projected in the article below. 

There have been a number of articles in recent days highlighting reasons to buy a home, either for personal use or for investment purposes and I’d like to share some of this knowledge with you in this issue. 

With the Federal Reserve scheduled this week to discuss the possibility of the first rate increase in nine years, it bodes well to keep this in mind when making housing decisions.  We’ve seen historically low interest rates for quite some time now but it’s likely they will slowly start to rise in the near future. 

Lenders are now easing their qualifications for obtaining mortgage financing and Fannie and Freddie are making it considerably easier for first time buyers to obtain a loan, by lowering and/or changing down payment and credit requirements.

If you or any family members have been waiting to make a home buying and/or selling decision, it would behoove you to wait no longer.  Based on your individual wants, needs and budget, I can help steer you in the right direction when it comes to all your real estate transactions and refer you to competent lenders that can best handle your mortgage needs. 

Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com today and let’s see what we can do for you.

 

THINKING OF BUYING A HOME?  HERE’S 3 QUESTIONS FOR YOU.

Keeping Current Matters, 9.10.15

Friends and family are often full of great advice when it comes to home ownership, but in reality they may not be fully aware of your individual needs or know what’s going on in the local real estate market.  That’s why it’s essential to use a competent, knowledgeable Real Estate Broker in any housing transaction to be assured of an honest assessment of your personal situation.

Here are three great questions to ask yourself when considering purchasing a new home.

1. Why am I buying a home in the first place?

This is by far the most important question.  Forgetting finances, why did you begin to consider purchasing a new home?  A study by the “Joint Center for Housing Studies” at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of that space

The non-financial benefits of buying a home should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

The “Home Price Expectation Survey,” published quarterly by Pulsenomics, surveys a nationwide panel of over 100 economists, real estate experts and investment and market strategists about where prices are headed over the next five years.  Those projections are then averaged into a single number.

Here are the projections from the recent 3^rd Quarter 2015 Survey:

• Home values will appreciate by 4.1% in 2015.
• The cumulative appreciation will be 18.1% by 2019.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 10.5% by 2019.

The chart below was made using these predictions:

                   

Assuming the experts are right, if you were to purchase a home by January 2016 for $250,000, that home would appreciate by over $34,000 over the next four years. 

As I’ve told you time and again, homeownership is one of the best ways to help build your family’s wealth and this is a perfect illustration of that.

3. Where are the mortgage interest rates headed?

As a buyer, you must be concerned about more than just home prices.  The “long term” cost of a home can be highly impacted by an increase in mortgage rates.

The Mortgage Bankers Association , the National Association of Realtors (NAR) and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage point over the next 12 months, as illustrated in the chart below:

               

Bottom line?

Once you and your family have decided for certain that it’s time to buy or sell and trade up, answering these questions will be of great help. 

Any further questions you may have in consideration of your particular situation, please call me and I’ll be happy to provide you with the best answers available.

 

AND IN THE SAME VEIN…HOMEOWNERSHIP IS THE BEST WAY TO BUILD WEALTH

Keeping Current Matters, 8.31.15

Along with the strong recovery in sales and prices, the housing market has increased in the confidence of consumers and experts as an investment, as was also illustrated in the previous charts.  A New York Times editorial entitled “Homeownership and Wealth Creation” explains:        

“Homeownership long as been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”

Facts in this editorial were right on track with the research done by the Federal Reserve in their Survey of Consumer Finances.  That study found that the average net worth of a homeowner ($194,500) is 36x greater than that of a renter ($5,400).

The NAR expanded on that research and projected that by the end of 2015 the average homeowner will have nearly 41x the net worth of a renter.  Their findings are shown here:

                         

It has been suggested that one reason for this large discrepancy in net worth is the “forced savings” created by having a mortgage payment.  The Times explained it as follows:

“Homeownership require potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.”

“Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment.  It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”

“As a means to building wealth, there is no practical substitute for homeownership.”

 

HOWEVER...YOUNG BUYERS ARE BEING SQUEEZED OUT OF THE MARKET

The Wall Street Journal, 9.14.15, RealtorMag, 9.10.15

Even with credit and down payment qualifications easing, first-time buyers are having a difficult time in getting into homeownership.

Student loan debt is at an all time high and delinquencies are common.  Yesterday’s Wall Street Journal reported that according to Federal data released last week, “more than half of students at 347 colleges and vocational schools defaulted on their loans or failed to pay down even a single dollar of their debt after seven years.”

That burden, along with increasing home prices, find young potential buyers being kept out of the housing market and forced to rent or live at home with their families. 

According to Lawrence Yun, chief economist for NAR, “One can say that we are having a nationwide housing cost problem” as housing’s affordability remains a barrier for first-time buyers wanting to enter the market.

The latest “Existing Homes Sales Report” shows that the share of first-time buyers was 28 percent in July, down from 30 percent in June. 

“Home prices are rising anywhere from 3-4 times as fast as people’s income,” says Yun.  “Rents are double the income growth rate.  This is unhealthy, unsustainable.  The only way to tame the housing costs is to have more supply.  So, maybe relaxing the regulations on small-size banks so they can lend to homebuilders is an answer.  We have a mismatch, a dramatic shortage, of owner-occupant homes that are available for sale.”

Locally, I am finding that with new down payment and mortgage qualification requirements along with a slight increase in listings, there are definite possibilities for first-time buyers.  Rental rates are going sky high and you have to pay a mortgage whether or not it’s yours or someone else’s.  It’s certainly worth exploring whether the possibility of homeownership exists for first-time buyers.  Why not give me a call at 598.3200 and let’s see if we can make that happen. 

As an aside to those looking for investment property—there are a lot of folks who are in the rental market due to situations like those mentioned above.  Rental rates are rising sharply and the equity in your investment home will continue to increase over time.  It’s a “win-win” for those with interest in this area and now is a great time to get into the market.

 

SOUTHERN COLORADO ECONOMIC FORUM SET FOR OCTOBER 23^RD

                                            

The 19^th Annual Southern Colorado Economic Forum is being held at The Broadmoor next month and it’s sure to be another sell-out event. 

The Keynote Speaker is Brian Beaulieu, CEO of ITR Economics & Chief Economist for Vistage International.  Following his speech, Tatiana Bailey, Forum Director, will address the” Economic Conditions and Outlook for the Pikes Peak Region”.  There will be an audience question and answer with the economists.

A Panel Discussion concerning “Workforce and the Skills Gap” will also be followed by questions and answers of the panelists.

This is a “must” event for anyone in the business community in the Pikes Peak region and Salzman real estate Services, LTD is proud to have been a sponsor since the Forum’s inception.  

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

I hope to see you there.

 

HAPPY NEW YEAR…

The Jewish Year 5776 is just starting and I’d like to take a moment to wish all my Jewish readers a heartfelt “L’Shana Tova” (Happy New Year). 

To all my readers, Jewish or not, I wish you a year filled with much good health, happiness, success, love and most importantly...Peace. 

 

HARRY’S JOKES OF THE DAY

 

 

September 2, 2015

 

HARRY’S SPECIAL EDITION

A Current Look at the Colorado Springs Residential Real-Estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

**EXTRA**EXTRA**EXTRA**

As promised in Monday’s eNewletter, here are the PPAR Monthly Statistics that were released yesterday afternoon.  You will see from the excellent continued upward trend why I wanted to share this good news with you as soon as it became available.

I hope you all have a safe, happy Labor Day Weekend.

 

AUGUST 2015 IS THE 13^TH STRAIGHT MONTH OF INCREASE IN LOCAL SALES

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

Here we go again.  I am thrilled to report that things are continuing to look very good for the Pikes Peak Region in the Residential real estate market. 

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 19.7 over the same period last year.  And Condo/Townhome sales are up 35.7% over the same period last year.

You will also see that while total active listings still remain down from the same period last year, new listings in August were up from the same period last year in both categories.

These numbers reflect continued strong consumer confidence and local job growth, along with low interest rates that many buyers feel will soon go higher.  More and more folks are taking advantage of increased home equity in order to sell and trade up while getting still historically low interest rates.

The Federal Reserve has indicated that rates could rise as early as this month, depending on job growth and economic conditions which have been good in recent months.

Increased new listings mean more choices for those looking to change neighborhoods or simply move around the block.  It continues to be somewhat of a Sellers market, so it’s important to know what you want, need and can afford prior to the hunt for a new home.  Making a quick decision is often necessary these days in order to get the home you want. 

If you’ve been thinking about using the current equity available in your present home for a down payment on a new home, don’t wait any longer if you want to take advantage of the still low interest rates.  “Wait and see” is no longer an option in most cases.

To discover the options available for you, give me a call sooner than later and let’s see what we can do to make this happen.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com. 

Here are some highlights from the August 2015 PPAR report.  Please click here to view the detailed 13-pages, including charts for August 2015. If you have any questions, as always, just give me a call.

In comparing August 2015 to August 2014 in PPAR:                     

                        Single Family/Patio Homes:

• New Listings are 1,558, Up 9.6%
• Number of Sales are 1,383, Up 24.5%
• Average Sales Price is $273,381, Up 5.8%
• Median Sales Price is $241,468, Up 5.0%
• Total Active Listings are 3,378, Down 17.7%

                        Condo/Townhomes:

• New Listings are 215, Up 17.5%
• Number of Sales are 184, Up 12.2%
• Average Sales Price is $165,188, Down 12.6%
• Median Sales Price is $149,450, Down 1.4%
• Total Active Listings are 295, Down 26.8%

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Average Sales Price

Black Forest                            $472,500                              $500,241

Briargate                                  $316,300                              $322,295         

Central                                     $193,000                              $210,350

East                                          $198,475                              $212,569

Fountain Valley:                      $220,000                              $217,785

Manitou Springs:                    $316,500                              $311,785

Marksheffel:                             $254,900                             $266,891

Northeast:                                $220,000                              $231,891

Northgate:                                $395,000                              $399,393           

Northwest:                               $350,450                              $378,510

Old Colorado City:                  $183,900                              $210,829

Powers:                                    $231,000                              $240,060

Southwest:                              $333,500                               $465,981

Tri-Lakes:                                $377,000                               $414,367

West:                                        $243,900                              $321,932

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.