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HARRY'S BI-WEEKLY UPDATE 9.26.19

by Harry Salzman

September 26, 2019

HARRY’S BI-WEEKLY UPDATE

           A Current Look at the Colorado Springs Residential real estate Market

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

 

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PUZZLED ABOUT RESIDENTIAL real estate? FORTUNATELY, YOU’VE GOT ME…

There’s been so much in the news concerning all facets of the residential real estate market that it can start to get confusing. Interest rates are dropping…should you refi?  Or should you use that as an opportunity to sell and trade up or move to another neighborhood? Or is it time to look at investment property because home values are going up faster than the volatile stock and bond markets?  Or possibly it’s a good idea to use a home purchase as a way to keep down student debt for your family members?  Maybe new construction is the way to go?  

How can one muddle through all of this and know what’s best for his or her individual needs, wants and budget?

Solution?  It’s as simple as reaching out to ME.  This is where my 47 plus years in the local real estate arena, along with my investment banking background, can become your greatest asset.  

I’ve been through just about every cycle imaginable and know the “ins and outs” of what can and can’t work and it’s my pleasure to help you find the best solutions for YOU.

Yes, interest rates are down to historical lows and home prices locally are still climbing, although at a slower pace than in the past year.  This is actually good news since things are starting to get back to a more manageable level in terms of home price increases.  The lack of available listings helped raise prices and kept some from being able to find homes.  We are starting to see a few more homes on the market as folks are considering a trade up or other type of move or investment.

Colorado Springs is faring better than most cities since we are continuing to make many of the “top 10” lists such as “Best Place to Live”, “Best Place for Small Business”, “Hottest real estate Market” and many others.  A number of companies are choosing to relocate to here and with them come employees who need housing and more.  All of this bodes well for those of us who are already here…except maybe for what WE consider “increased street traffic”—something Denver or another bigger city would consider a blessing!

Back to the housing puzzle.  All of the things you might consider confusing are “just another day” for me.  And I’m thrilled to be able to share my knowledge with you so you can make an informed decision one way or another.

No one knows how long the low rates will be around, as most economists predicted they’d be long gone by now.  However, that doesn’t mean that what goes down quickly can’t also go up just as fast.  It’s best to be prepared and start getting your answers as soon as possible.

If you, a family member or co-worker are sifting through all the options…NOW is the time to give me a call.  I can be reached at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make all your residential real estate dreams come true.  I can help you find answers for your particular needs, but you need to pick up your phone and call me first!

 

ASPIRING HOME BUYERS PROFILE

National Association of REALTORS,.2019

The National Association of REALTORS released a study of data that was collected throughout 2018 on a monthly basis as part of their Housing Opportunities and Market Experience report.  It is an in depth examination of the consumer preferences of non-homeowners, defined as those that rent and those that live with someone else (such as family and friends) without paying rent.  

Topics include if now is a good time to buy a home, the perception of homeownership as part of the American Dream, why non-owners do not own now and what would cause them to buy in the future.

I found this research interesting and wanted to share it with you.  I have reproduced several of the charts below and you can click here to read the report in its entirety. A couple of highlights:

  • Of the U.S. consumer households that were surveyed each month in 2018, 64 percent of respondents were homeowners, 27 percent were renters, and nine percent lived with someone else.
  • Of the non-owners, 45 percent were 34 years old or under, 59 percent make an income of under $50,000, and 43 percent live in suburban areas.
  • For both homeowners and non-homeowners alike, homeownership is strongly considered a part of the American Dream. For non-owners, roughly 75 percent reported that homeownership is part of their American Dream.
  • For owners, nine in ten believe it is part of their American Dream.

I might add that interest rates in the beginning of 2018 were not as favorable as they they were later in the year so that could have played a part in some decisions made at that time

I’ve found that in many cases those that thought they could not afford to purchase a home actually could not afford to NOT purchase a home.  It’s all in figuring out the right way if at all possible.  Just ask some of my very satisfied clients! 

 

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5 REASONS TO SELL THIS FALL

Keeping current matters, 9.2019

  1. Demand is Strong…According to the latest Buyer Traffic Report from the National Association of REALTORS, buyer demand remains strong throughout the majority of the country.  These buyers are ready, willing and able to purchase homes right now, and more often than not are competing with each other to buy the same home!  NOW is the time to take advantage of the buyer activity we are currently seeing in the market.

 

  1. There is Less Competition Now…Homes are in short supply…way less than what is needed for a normal market. This means that there are not enough homes for sale to satisfy the number of buyers.  

Historically a homeowner would stay in his or her home for an average of six years.  Since 2011 that number has hovered between nine and ten years.  There are many who were unable to sell over the last few years due to negative equity situations, but as home values continue to appreciate, more and more will be given the freedom to sell and trade up.  Don’t wait until more inventory comes on the market before you decide to sell.  

 

  1. The Process Will Be Quicker…In today’s competitive environment, potential buyers have had to do all they can to stick out from the crowd, including getting pre-approved for their mortgage financing or paying all cash.  This makes the entire selling process much easier and simpler, as buyers know exactly what they can afford before shopping for a home. 

 

  1. There Will Never Be a Better Time to Move Up…If your next move is a to a premium or luxury home, now is the time to sell and move up.  There is currently more inventory in the slightly higher price ranges so you will have more choices.

Another reason to act soon is that prices nationally are projected to appreciate by 5.2% over the next year, which means our prices will likely appreciate even more. If you’re moving to a higher-priced home, it will wind up costing you more in raw dollars if you wait.

 

  1. It’s Time to Move on with Your Life…Consider the reasons you are thinking of selling in the first place and decide whether it is worth waiting.  Perhaps the time has come for you and your family to move on and start living the life you desire in the home of your dreams.

 

HOMEOWNERS HAVE NEVER BEEN RICHER

RealtorMag, 9.23.19

Nationally, homeowners with a mortgage have seen their equity rise by 4.8% year over year.  The average homeowner has gained $4,900 in home equity between the second quarter of 2018 and the second quarter of this year, according to CoreLogic’s Home Equity Report.

“Borrower equity rose to an all-time high in the first half of 2019 and has more than doubled since the housing recovery started,” says Frank Nothaft, chief economist for CoreLogic.  “Combined with low mortgage rates, this rise in home equity supports spending on home improvements and may help improve balance sheets of households who could take out home equity loans to consolidate their debt.”

Homeowners are getting richer and fewer are in a negative equity position.  From the first quarter to the second quarter of this year, the total number of homes with a mortgage that were in negative equity dropped 7% to 2 million homes—or 3.8% of all homes with a mortgage.  

Overall, the western part of the U.S. is seeing some of the strongest equity gains and as you will see on the map below, Colorado is one of the top 10 states with the highest average gain in equity.

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So, once again…NOW is the time to put that equity to work for you.  When you trade up, you’ll likely get more for your present home while taking advantage of the low interest rates on the new one.  You might be surprised to find out that the net cost could be far less than you might imagine.  Just give me a call and let’s see if this is something that can work for you and your family.

 

MORE PEOPLE FEEL POSITIVE ABOUT BUYING, SELLING

RealtorMag, 9.23.19

With the low mortgage rates fueling more favorable opinions on home buying, nearly two-thirds of Americans, or 63%, believe now is a good time to buy a home, according to the newly released Housing Opportunities and Market Experience Survey from the NAR.  

Lawrence Yun, chief economist for NAR said, “I see no sign of the optimism about home buying fading” despite some concerns over the direction of the economy.  

Millennials tended to be the most pessimistic about the direction of the economy while older consumers with higher incomes tended to be the most optimistic over the prospects of homebuying.  The silent generation (those born between 1925 and 1945) were the most upbeat about buying at 75%, followed closely by older baby boomers (those born between 1946 and 1954) at 72% the study showed.  Further, 72% of consumers with incomes of $100,000 felt now is a good time to buy compared to 54% of consumers with incomes under $50,000.

And once more, the West wins, with being the most likely to say now is a good time to sell at 81%.

According to The Wall Street Journal, August was the strongest month of sales for U.S. homes in nearly a year and a half.  The article goes on the attribute this to renewed hope for market recovery.  They also say that economic uncertainly may be holding some potential buyers back but for those that can afford it, rising rents that continue to break price records nationwide (as well as here in Colorado Springs) are starting to nudge some renters to consider homeownership more seriously.

Here are some charts to show a more detailed breakdown of the NAR survey:

 

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REGISTER NOW FOR THE UPCOMING SOUTHERN COLORADO ECONOMIC FORUM

There’s still a little time to register for the always sold out and informative UCCS Economic Forum which is put on by the College of Business.

The Forum will be held on Thursday, October 10, from 1:30- 4:30 at the ENT Center for the Arts.  This will be followed by a Networking Happy Hour.

The keynote address will be given by Alison Felix, Vice President & Executive, Kansas City Federal Reserve-Denver Branch.

To register and more information, please go to: 

www.UCCSEconomicForum.com.

 

 

HARRY'S BI-WEEKLY UPDATE 9.10.19

by Harry Salzman

September 10, 2019

HARRY’S BI-WEEKLY UPDATE

         A Current Look at the Colorado Springs Residential real estate Market

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

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LOTS OF REASONS TO BE HAPPY THIS MONTH…

Home values are up, mortgage rates are down, and Colorado Springs is one of the “cheapest” places to live.  How’s that for an interesting lead-in?

We will get to prices in a moment, but I wanted to share with you the front-page story from the Colorado Springs real estate Journal on August 26th.  A new study by Move.org ranked cities based on the average monthly cost of living.  Out of the USA’s top 75 cities, Colorado Springs was ranked 26thmost affordable with an average monthly cost of living listed as $1,719.15.  Lower utility costs helped the city in the rankings and only three cities in the top 25 had lower utility costs than Colorado Springs. That’s just one more reason why companies and their employees are choosing to relocate here.  

The four months of record-setting home price increases was stalled in August. However, prices continue to rise, although at a more sustainable pace.  Traditionally, August is a slower month in real estate as families with children are already settled into their new homes prior to the start of the school year, so the slight slowdown in sales was anticipated.

Median sales prices on all home types continued to rise, while active listings were down 9.2 percent for single family/patio homes and up only 1.1 percent for condo/townhomes.  This shortage of available listings is certainly playing a role in keeping sales down.  If there were more available homes, especially at the lower end of the market, I believe the market would be hopping no matter what time of year.  As I’ve been telling you for some time, the Colorado Springs housing market is one of the strongest in the country and I don’t see an end in sight.

Add the still historically low interest rates to the mix and you can understand why folks are wanting to sell and trade up. We are seeing activity in all price ranges and in new home construction, too.

If you have even considered a move, or just want to check out the possibilities for your individual situation, NOW is the time. Those looking for investment properties should be considering time a priority, too.  Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how we together can make all your residential real estate dreams come true.

 

AUGUST 2019 BROUGHT SMALLER GAINS IN HOME VALUES AND A LOW NUMBER OF SALES

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

Here are some highlights from the August 2019 PPAR report. Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood. However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was 21.  For condo/townhomes is was 15.  

The sales price/list price for single family/patio homes was 99.6% and for condo/townhomes  was 100.1%.  

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

Please click here to view the detailed 9-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

In comparing August 2019 to August 2018 for All Homes in PPAR:                      

                        Single Family/Patio Homes:

·       New Listings are 1,842, Up 3.1%

·       Number of Sales are 1,542, Up 0.9%

·       Average Sales Price is $371,552, Up 4.0%

·       Median Sales Price is $330,000, Up 4.8%

·       Total Active Listings are 2,194, Down 9.2%

·       Months Supply is 1.4

 

Condo/Townhomes:

·       New Listings are 250, Down 4.6%

·       Number of Sales are 207, Down 9.2%

·       Average Sales Price is $262,877, Up 14.4%

·       Median Sales Price is $242,000, Up 15.2%

·       Total Active Listings are 187 Up 1.1%

·       Months Supply is 0.9

Now a look at more statistics…

 

AUGUST 2019 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS® ,Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both Colorado Springs and Teller counties for residential real estate.  

It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.  

The “Activity Snapshot”for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

  • Sold Listings for All Properties were Down 1.6%
  • Median Sales Price for All Properties was Up 6.7%
  • Active Listings on All Properties were Down 19.6%

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:

 

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MORTGAGE RATES DROP TO ANOTHER 3-YEAR LOW LAST WEEK

HousingWire, 9.5.19

Last week, once again, the U.S. rate for a 30-year, fixed-rate mortgage fell to another three-year low, according to the latest Freddie Mac Primary Mortgage Market Survey.

According to the data, the 30-year fixed-rate mortgage was 3.49% for the week ending September 5, 2019, down from the previous week’s 3.58%. This average is nearly an entire percentage point lower than its 2018 rate of 4.54%.

Freddie Mac Chief Economist Sam Khater said, “While economic growth is clearly slowing due to rising manufacturing and trade headwinds, economic fundamentals are still solid for U.S. consumers.  The unemployment rate is low, housing affordability is improving, buyer demand is rising and home price growth is stable.”

The 15-year FRM averaged 3% last week, falling from the previous week’s 3.06%.  This time last year it came in at 3.99%.

The image below highlights last week’s changes:

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Bottom Line?  What are you waiting for?  These rates mean you can get more for your money even with homes values increasing. Run…don’t walk…to your nearest phone and give me a holler today!

 

DECLINING MORTGAGE RATES PROPEL NATION’S HOME BUYING OUTLOOK TO A NEW HIGH

HousingWire, 9.9.19

Last month, American housing confidence increased slightly as more consumers expressed optimism regarding the nation’s falling mortgage loan rates, according to Fannie Mae’s Home Purchase Sentiment Index.

The sentiment was up by 0.1 point to 93.8 in August.  Not only is this up 5.8 points from last year’s rate, but it also is a new survey high.  The survey is constructed from six questions, gauging the current views and forward-looking expectations of consumers navigating the housing market.

According to Doug Duncan, Fannie Mae senior vice president and chief economist, “Growing expectations that mortgage rates will remain flat or decline are reflected in (this report) which is now at a survey high even though other indicators of economic and housing market sentiment are flat to negative.”

So…one more time…what are you waiting for?  Give me a call today and let’s see how we can put these low rates to work for you.

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Harry A Salzman
Salzman Real Estate Services
5475 Tech Center Drive, Suite 300
Colorado Springs CO 80919
719-593-1000 or Toll Free: 800-677-MOVE(6683)
Cell: 719-231-1285
Fax: 719-548-9357

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