Real Estate Information Archive

September 19, 2017

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.

FALL IS JUST AROUND THE CORNER…

What a beautiful time of year.  The leaves are just starting to turn gorgeous shades of red, yellow and orange and the cooler mornings are a reminder that soon it will be fall. 

As you will see in the following reports, the residential real estate market is NOT cooling off and I’ve had quite a busy summer.  Those of us in the business have finally accepted that there is no longer a “traditional” buying and selling season.  With the shortage of listings and escalating prices, I’m finding that folks are buying and selling when it is “right” for them.  It is taking a little longer to find the home that can fit your needs, wants and budget and it doesn’t make sense to put your present home on the market until you find another one.  Available homes are selling so quickly for the most part that you don’t want to be faced with nowhere to go in that scenario. 

That being said--there are still many home options available in most price ranges and in most neighborhoods.  It may take a bit longer to find what you want, or you may turn to new construction as an option, but you will find the perfect home for you. 

A word to the wise—if you are considering new construction--sooner is better than later because with all the rebuilding that’s going to be necessary due to Hurricanes Harvey and Irma, prices of building materials are starting to escalate and availability of these materials will be scarce.  That’s going to affect home prices all around the country for some time into the future.

If you are thinking of selling to trade up, buying for the first time or for investment purposes, just give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help you make your real estate dreams come true.

 

AUGUST 2017 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR CONTINUING UPWARD TREND IN GREATER DETAIL

Pikes Peak REALTORS^® Services Corp.,

These reports contain much greater detail than the first of the month reports I shared and cover ALL residential areas in the Pikes Peak Region.

The local median sales price increase year-over-year in all properties was 5.9%, a good sign that our housing market is still continuing to appreciate.  The shortage of listings is helping to drive up prices and if there were more listings, more people would be moving—either selling to trade up or buying for the first time and for investment purposes.

In the recently published August 2017 Monthly Indicators and Local Market Update for El Paso and Teller Counties, new listings year-over-year were down 1.7% for the single-family/patio homes and up 4.1% for condo/townhomes. 

With the “traditional” selling season over, NOW is a great time to list your home, as there are still plenty of buyers who have not found “the” home for which they are looking.  The only drawback, as I’ve mentioned time and again, is that you need to have an idea of where you want to go because your home will likely sell much quicker than it might have in the recent past.

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

• Sold Listings for All Properties was up 11.5%
• Median Sales Price for All Properties was up 5.9%
• Active Listings on All Properties was down 24.2%.

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 33-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, Northwest, below to show you the type of information available for all local areas.

 

Despite rising home prices, interest rates, while slowly rising, are remaining historically low for the time being.  That won’t always be the case, so “sooner than later” should be your motto if a real estate move is in your immediate future.  If you’re thinking of a move or looking for investment property—I’m just a phone call away.

For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.

DO YOU KNOW THE VALUE OF YOUR HOME?

Keeping current matters, 9.6.17

According the latest edition of Corelogic’s Home Price Index, home prices nationally have appreciated 6.7% over last year and 0.9% month-over-month.

In the release of the report, this was the headline:

“National Home Prices Now 50% Above March 2011 Bottom”

This is great news for homeowners as the market has come a long way since 2011.

Nearly 79% of homeowners with a mortgage in the USA now have significant equity in their homes (defined as over 20%) according to the latest Equity Report, also from Corelogic.  What is interesting though, is that not every homeowner knows just how much their home’s value has appreciated.

The report indicated that Denver lead the way with 8.7% appreciation over the last year, and we are not far behind.  Nationally, Corelogic forecasts that home values will increase another 5.0% by this time next year.

Bottom Line:  Do you know what your home is worth today? 

If you have refrained from looking to sell and trade up because you don’t know how much equity you have in your present home, now is a great time to find out.  Just give me a call and I can get this information for you and help you decide if now it the time to put your hard earned equity to work for you.

 

COLORADO SPRINGS NEEDS YOUR HOUSE…

Keeping current matters, 9.7.17

You read that right!  The biggest challenge in today’s residential real estate market is the lack of inventory.  We are at a record low in listings and that’s driving up prices while making it difficult for some folks to find a new home.

Here’s what four industry economists are saying in this regard:

“The underlying fundamental issue is an overwhelming lack of supply. The supply of newly constructed homes is also sagging, adding to the supply challenges.  Over the last eight years, housing demand has increased by 5.9 million, but the net new number of housing units has only increased by 3.5 million.”

• Mark Fleming, First American’s Chief Economist

“Everyone has been talking about tight inventory but I think we are okay calling it a straight up inventory crisis at this point.  We just don’t have enough homes.”

• Svenja Gudell, Zillow’s Chief Economist

“Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines.”

• Lawrence Yun, NAR’s Chief Economist

“Housing prices today are higher than they were at the peak in the summer of 2006, near-record-low mortgage rates have boosted housing demand, and sales volume is robust.  The spoiler is the lean inventory of houses for sale.”

• Sean Becketti, Freddie Mac’s Chief Economist

What does this mean to you?  If you are even considering selling your house soon, now may be the time to get it on the market.  The lack of competition could lead to a faster sale at a higher price.

 

BE SURE TO REGISTER TODAY FOR THE UCCS SOUTHERN COLORADO ECONOMIC FORUM

September 29^th is the date of this year’s UCCS Southern Colorado Economic Forum at The Antler’s Hotel.  This perpetually sold out event is one you won’t want to miss.

For more details and to register, please go to: www.UCCSEconomicForum.com

 

HARRY’S THOUGHTS OF THE DAY: 

-The older generation's dream was to pay off the mortgage. The younger generation's dream is to get one.

-Home sickness is what you feel every month when the mortgage is due.

-By the time you pay for a home in the suburbs, it isn't.

 

 

September 5, 2017

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.

LOTS TO PONDER OVER LABOR DAY WEEKEND

I hope everyone had a safe and happy holiday Weekend.  I’ve got lots of great news to share but just wanted to take a minute to mention events of this past week. 

Watching Hurricane Harvey wreck havoc on the Texas coast was just heartbreaking, as are the fires all over the western part of the country.  So many people have been displaced and it will be a very long time before these areas see any sense of normalcy. 

Having lived through several devastating fires right here in Colorado Springs only a few years ago, I can truly emphasize with those who are suffering at this time.  As with our fires, it is heartwarming to see first responders and so many others from all over the country jumping in to do whatever they can to help.  Tragedies like this tend to bring out the very best in the American people, and at times, the worst.  Price gouging and theft only make it harder on those affected to survive the day to day of their life at the moment. 

Fortunately there are far more enlightening stories, such as the help of the Cajun Navy from Louisiana and others who risk their own lives to save others.  My thoughts and prayers continue to be with the people of Texas and those who are still threatened by the fires in other parts of the country.

 

“INVESTOR SNAPSHOT” REINFORCES MY BELIEF IN THE VALUE OF HOMEOWNERSHIP

PPAR, 8.17

As you know by now, I not only sell Residential real estate, I also am an “Investor” and have always put my money where my mouth is, so to speak.  Having been an Investment Banker in my earlier life, I have always followed the financial markets.  Time and again, investing in real estate has consistently provided a better return over stocks and bonds in the long haul. 

The following “Investor Snapshot” recently published by the Pikes Peak Association of Realtors (PPAR) illustrates the “Active Listings”, “Average Sales Price” and “Median Sales Price” of both Single Family/Patio Homes and Condo/Townhomes for the past 20 years.  This is published once each year in August.

To save you time—I did the math!!  Over a 20-year period for Single Family/Patio Homes, there was an average annual increase of 6.11% in the Average Sales Price and 7.18% for the Median Sales Price!

For Condo/Townhomes, there was an average annual increase over 20 years of 5.36% for the Average Sales Price and 6.63% for the Median Sales Price!

A point worth noting is that the period between July 2016 to July 2017 had the least number of closings per year for the past 20 years.

I don’t know about you, but I can’t think of many, if any, other investments that can provide that consistent rate of return.  This chart most certainly demonstrates what I’ve been talking about for years.  If you have any questions, please give me a call.

AND NOW FOR SOME STATISTICS…

Homes are selling at 100.4% of listing price and a VERY LOW average of 23 days on the market. It’s still unbelievable and continues to put a lot of pressure on both buyers and sellers in terms of decision-making.  And I’m afraid that pressure isn’t going to subside any time soon.

Consider this:  Two new studies have concluded that Colorado Springs continues to have one of the nation’s strongest housing markets. 

As I mentioned last issue, WalletHub, a personal finance website, ranked our city as having the 19^th best housing market out of 300 cities.  And among 62 cities with populations of 300,000 or more, the Springs came in at number 5.  In a similar study last year, the Springs’ housing market ranked number 28 in the nation and number 7 among cities over 300,000.

In a second study released last week, ATTOM Data Solutions, a California real estate company, listed Colorado Springs as Number 1 out of 122 metro areas as a place where homes are likely to sell—either to newcomers or to trade-up buyers.  ATTOM’s first such index was published in June and the Springs also ranked number 1 in that study.

What does this mean to us?  Well, it certainly is great that Colorado Springs is finally getting the recognition it so richly deserves, but it isn’t going to make things easy when it comes to buying a home—either for the first time or for those wanting to sell and trade up.

Another reminder—if you are planning to sell your home, you need to know where you are planning to go next because the short turnaround times don’t give you a lot of leeway to decide after the sale.  It’s best to find your next home prior to listing your present one at this time.

The hard reality today is if you are buying, you need to know in advance exactly what you want because most often you don’t get the luxury of “thinking about it” for even a few hours.  If you don’t make an offer—one that’s going to get noticed—someone else will. 

As much as I hate for my clients to face disappointment per a possibility of multiple offers, it’s becoming a regular thing.  That’s why you need to keep an open mind to look at properties in areas where you might have not considered in order to find what you want, need and can afford.  Even when it comes to purchasing a newly constructed home, I’m finding that lots are going quickly so making an informed decision is essential no matter what you are seeking.

That being said, there are still homes available in most neighborhoods and in most price ranges.  If you are in the market—either as a first-time buyer, as a trade-up buyer or for investment purposes, please give me a call sooner than later.  I can be reached at 593.1000 or by email at Harry@HarrySalzman.com .

For more details on the local August 2017 PPAR reports, please see the next article.

SALES AND PRICES KEEP ESCALATING DESPITE LOW INVENTORY

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

You will see in the Cumulative Year to Date Summary that total sales numbers year-over-year in Single Family/Patio Homes are up 6.8% and up 13.3% for Condo/Townhomes.

Year-over-year, new listings are up 1.3% for Single Family/Patio Homes and up 5.0% for Condo/Townhomes. If you’ve been thinking of listing your home, it’s certainly going to get a lot more attention in this type of sales environment.  Just remember that it’s likely to sell fast, so once again…you need to be prepared for that inevitability.

Here are some highlights from the August 2017 PPAR report. Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.

In comparing August 2017 to August 2016 in PPAR:

                       

                        Single Family/Patio Homes:

• New Listings are 1,716, Up 7.6%
• Number of Sales are 1,658, Up 14.2%
• Average Sales Price is $313,781, Up 6.1%
• Median Sales Price is $282,750, Up 6.7%
• Total Active Listings are 2,284, Down 14.1%
• Months Supply is 1.4%

 

                        Condo/Townhomes:

• New Listings are 246, Up 1.7%
• Number of Sales are 242, Down, 0.4%
• Average Sales Price is $200,017, Up 5.7%
• Median Sales Price is $189,250, Up 11.6%
• Total Active Listings are 140, Down 39.9%
• Monthly Supply is 0.6%

 

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

                                          Median Sales Price             Median Sales Price

                                                      August 2017                          August 2016

Black Forest                            $551,500                              $470,000                     

Briargate                                  $360,000                              $349,000           

Central                                     $219,250                              $217,450

East                                          $240,000                              $220,000

Fountain Valley:                      $249,900                              $232,500

Manitou Springs:                    $346,500                              $326,500

Marksheffel:                             $294,950                             $254,900

Northeast:                                $280,000                              $261,250

Northgate:                                $422,354                              $438,800           

Northwest:                               $375,000                              $355,000           

Old Colorado City:                  $258,500                              $202,500

Powers:                                    $274,450                              $250,000

Southwest:                              $340,000                              $299,500

Tri-Lakes:                                 $474,900                              $422,500

West:                                        $280,000                              $284,950

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