Real Estate Information Archive

HARRY'S BI-WEEKLY UPDATE 7.6.2016

Wednesday, July 6, 2016

by Harry Salzman

July 6, 2016

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.

AND THE GOOD NEWS JUST KEEPS ON COMING FOR LOCAL HOMEOWNERS

Hope you all had a wonderful Independence Day holiday. I waited a couple of days to publish this in anticipation of sharing more good news with you on the home front and I wasn’t disappointed. The June PPAR statistics came out yesterday and once more the Pikes Peak area has record-setting sales of previously owned homes and in median home prices which brought us to 23 consequent months of increased local Residential real estate sales,

Homes are selling at a whopping 99.8% of listing price. Not only that—the average days on the market is a low 28. This is such good news for both buyers and sellers.

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes are up 17.8% over June 2015.

The Monthly Summary shows that total active listings are down 16.8% for Single Family/Patio Homes and 34.4% for Condo/Townhomes compared to a year ago. This downward trend is continuing to be great for sellers. However, it is more difficult, but certainly not impossible, for current buyers to find a new home.

Median Sales Prices are up 5.0% and 12.4% for both Single Family/Patio Homes and Condo/Townhomes respectively—more wonderful news for both buyers and sellers.

The spring buying spree has turned into the summer buying spree and I don’t see the end in sight. Higher rents and better mortgage loan opportunities are an impetus for first-time buyers. With the mortgage loan rates still historically low, many current homeowners are taking advantage by selling to trade up, downsize or move to a new neighborhood.

And worth repeating--it’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.

As an aside, we can thank “Brexit” for delivering US homebuyers with a very definable windfall: mortgage rates are now the lowest they’ve been in three years!

More good news locally is that new listings are up—9.3% for Single Family/Patio Homes and 22.6% for Condo/Townhomes. This indicates that local homeowners are finally realizing that it’s a good time to put their equity to work for them and others are finally seeing increased equity after having been “underwater” for a few years. In any case, that translates to more homes for sale and hopefully a little less frenzy in the buying process.

Speaking of the buying (and selling) process…whenever the real estate market gets “hot” we find more people wanting to get into the real estate profession. Lack of experience can be a real detriment for both a buyer and a seller in this type of market and that’s why I encourage you to use a knowledgeable, experienced real estate professional like myself in your home buying and selling transactions. I’ve witnessed some things in recent weeks that I would never want my clients to have to experience. So…a word to the wise…in one of the most important financial decisions of your life you need someone like me on your side.

If you’re considering a move…either across town or across the country...give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the ball rolling. I look forward to putting my special brand of customer service to work for you, your family and friends or co-workers.

JUNE 2016 WAS THE 23^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

Here are some highlights from the June 2016 PPAR report. Please click here to view the detailed 14-page report, including charts. If you have any questions, just give me a call.

In comparing June 2016 to June 2015 in PPAR:

Single Family/Patio Homes:

New Listings are 2,056, Up 9.3%
Number of Sales are 1,651, Up 17.8%
Average Sales Price is $294,962, Up 5.6%
Median Sales Price is $262,500, Up 5.0%
Total Active Listings are 2,639, Down 16.8%

Condo/Townhomes:

New Listings are 266, Up 22.6%
Number of Sales are 204, Down 3.8%
Average Sales Price is $183,237, Up 10.2%
Median Sales Price is $170,000, Up 12.4%
Total Active Listings are 191, Down 34.4%

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

Median Sales Price Median Sales Price

June 2016 June 2015

Black Forest $433,500 $418,000

Briargate $355,500 $342,400

Central $200,000 $217,000

East $223,000 $190,500

Fountain Valley: $229,900 $217,500

Manitou Springs: $347,500 $334,500

Marksheffel: $279,900 $258,000

Northeast: $244,450 $239,000

Northgate: $397,500 $365,999

Northwest: $377,500 $336,500

Old Colorado City: $240,000 $210,000

Powers: $250,000 $236,500

Southwest: $342,250 $308,750

Tri-Lakes: $425,000 $415,500

West: $250,000 $201,000

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

MORE REPORTS FILLED WITH GOOD NEWS

One of the reasons I like to share both local and national statistics with you is that I’ve always believed that an informed buyer or seller is a good buyer or seller. The more information you have helps you make a better decision and when it comes to home buying and selling you need as much information as possible from multiple sources.

You can click here to see the latest report from the UCCS Economic Forum, which shows both national and local statistics for the month of May.

The detailed reports from PPAR for May 2016 are also now available. You can click here for the Monthly Indicators report and click here for the Local Market Update.

CITY COMPREHENSIVE PLAN UNDERWAY

Colorado Springs Mayor John Suthers has appointed a 15-person committee, along with Committee Chairman Merv Bennett and Vice-Chair Jill Gaebler to work together for two years.

According to the Mayor it is our task to “Create and implement an updated land use vision for our future as Olympic City, USA.” I am honored to represent the real estate community, and even more so because I can keep you all informed in a timely manner about future plans for our city.

Stay tuned for information as it becomes available.

RENTERS STILL HAVING A ROUGH TIME

RealtorMag, 6.23 & 6.27.16

About 21.3 million Americans—a record high—are devoting 30 percent or more of their income to paying rent, according to the annual State of the Nation’s Housing report from Harvard University’s Joint Center for Housing Studies. Even more, 11 million renters in 2014 paid at lease half of their income toward housing costs, which marked another high, the report shows. Most financial experts say consumers should not pay more then 30 percent of their monthly income for housing costs.

Rents have been rising faster than wages for years now. According to Dan McCue, a senior research associate at Harvard, “When you have to dedicate such a high proportion of your income to rent every month it forces you to make difficult decisions. It means spending less on essentials like food, clothing, and health care, as well as less opportunity to save for a down payment on a home or plan for retirement.”

According to the report, the median rent for a new apartment was $1,381. That means a renter would need to earn at least $55,000 a year to afford the rent. Yet on average, renters earn about $34,000—which would mean an affordable rent would be closer to $850.

Affordability is another reason why renters are not yet owners, according to Lawrence Yun, NAR’s chief economist. “We are seeing flashing yellow lights on affordability. People who are currently renting and want to convert into ownership—major difficulty. Home prices are rising way too fast compared to people’s income and wage growth. We are facing housing affordability challenges already with low mortgage rates, but what happens when the rates begin to rise?”

As I’ve written before, many mortgage lenders are lowering their qualification and down payment requirements in an attempt to help first-time homebuyers. This is certainly worth investigating if you or anyone you know is in this situation.

This also presents an opportunity for those looking for investment property. In either case, I am available to help you discover the best way to deal with the situation, and hopefully find solutions in either of these scenarios. Just give me a call at 598.3200 and let’s see how to make home ownership or investment opportunities work for you.

PLAN. PREPARE. PREVAIL.

Federal Reserve Bank of Kansas City, 6.22.16

The Federal Reserve Bank of Kansas City has a convenient way for individuals, families and small business owners to learn about what financial documents and records they need to have available in case of an emergency or disaster.

The Plan.Prepare.Prevail. is an extensive website containing disaster-preparedness information:

Personal and small business financial inventory forms
Quick checklists to identify and organize key financial records
Links to other valuable resources and materials

Disasters don’t take a vacation. Make sure your financial records are ready by visiting this website today.

HARRY’S JOKE OF THE DAY:

Job Well Done

Seller to Agent: You’ve done such a great job describing my house in your real estate listing that I’ve decided to keep it!

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HARRY'S BI-WEEKLY UPDATE 6.20.16

Monday, June 20, 2016

by Harry Salzman

June 20, 2016

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.

“SPRING BUYING SEASON” HAS BEEN HOTTER THAN EVER….AND I’M NOT EVEN TALKING ABOUT THE RECORD SETTING TEMPERATURES

Today is the first day of Summer and I’ve been busier these last few months than any Spring Buying Season I can ever recall. It seems like everyone either wants to sell and trade up, buy for the first time or buy for investment purposes. I’m getting calls from folks I haven’t heard from in a number of years as well as those who have seen my “SOLD” sign on homes in their neighborhood.

It makes perfect sense to me. Interest rates are still historically low, and while there is still talk of the Federal Reserve raising rates in the future, it doesn’t seem to be affecting the mortgage interest rates at this point. As a matter of fact, mortgage loan rates moved lower this week for the second straight week and are currently the lowest since May 2013.

And as I mentioned in the last edition, banks and other mortgage lenders are easing up in terms of down payment and credit requirements. This is especially good for first time buyers, as they often do not have the cash for a large down payment and more than likely have little or no credit experience.

Rental rates are increasing each month and Colorado Springs is leading the nation in that category. This is creating opportunities for not only first-time buyers but also for first-time investors or for those who have been thinking about adding to their investment property portfolio. Unfortunately these starter homes go quickly and it takes a seasoned real estate Professional such as myself to figure out a way to have a first offer get noticed and ultimately accepted.

Listings are still way down, but I’m finding that there is something for everyone as long as they know what they want, need and can afford prior to the home search. Getting pre-approved from a lender is a must and it’s very important to be able to make a decision quickly once you find the home you want. The days of mulling it over for a few days are a thing of the past.

If you, a family member, co-worker or friend are ready to start the ball rolling on residential real estate—either for the first time, as a seasoned buyer or for investment purposes, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let me put my 44+ years experience to work in helping achieve whatever goals you or they have.

MORTGAGE INTEREST RATES ARE STILL HISTORICALLY LOW

The Wall Street Journal, 6.18-19.16, RealtorMag, 6.19.16

Last Wednesday, the Federal Reserve held short-term interest rates steady, and officials lowered projections of how much they will raise them in coming years. This is excellent news for consumers who have not yet taken advantage of historically low rates, or who were held back due to lack of equity in their present home.

Rates for a 30-year-fixed mortgage fell to 3.52% and Jumbo mortgage rates fell to 2.77%, according to Bankrate.com, which based rates on a survey of over 4,800 online banks.

Banks and other mortgage lenders are welcoming the increased mortgage loan business because it helps offset pressure from falling bond yields. Most are passing these savings on to their customers, and Wells Fargo recently said that it expects origination volume industry-wide to be 20% to 25% higher for the year than it had initially anticipated.

With an easing of qualifications and lower rates, hopefully this will translate into more first-timers being able to enter the market and will help those who were unable to participate in the first wave of low rates to be able to reconsider and find their way back into the market.

If you are wondering how these low rates and easier qualifications can work for you, simply give me a call and let’s see how we can make your residential real estate dreams come true.

STUDENT DEBT IS PREVENTING BOTH BUYERS AND SELLERS FROM ENTERING THE real estate MARKET

RisMedia, 6.16.16

According to a new joint survey on student loan debt and housing released by the NAR and SALT^®, a consumer literacy program provided by nonprofit American Student Assistance, “71% of non-homeowners repaying their student loans on time believe their debt is stymieing their ability to purchase a home, and slightly over half of all borrowers say they expect to be delayed from buying by more than five years”.

The results also revealed that student debt postponed 4 in 10 borrowers from moving out of a family member’s household after graduating college.

Nearly three-quarters of non-homeowners polled in the survey believe their student loan debt is delaying them from buying a home. The highest share is among older millennials approximately aged 26 to 35 and those with $70,000 to $100,000 in total debt. Regardless of the outright amount of student debt, more than half of non-homeowners in each generation report that it’s postponing their ability to buy.

Lawrence Yun, NAR chief economist, says the survey findings bring to light the magnitude student debt is having on the housing market and the budget of even those financially able to make on-time payments on their student loans.

While obtaining a college degree increases the likelihood of stable employment and earning enough to purchase a home, many who graduate with this kind of debt are putting homeownership on the backburner in part because of the multiple years it takes to pay off their student loans at an interest rate that’s oftentimes nearly double current mortgage rates.

“A majority of non-homeowners in the survey earning over $50,000 a year--which is above the median U.S. qualifying income needed to buy a single-family home—reported that student debt is hurting their ability to save for a down payment,” Yun says. “Along with rent, a car payment and other large monthly expenses that can squeeze a household’s budget, paying a few hundred dollars every month on a student loan equates to thousands of dollars over several years that could otherwise go toward saving for a home purchase.”

Among those non-homeowners who believe student debt is delaying their ability to buy, over three-quarters—including over 80% of millennials—said their delay is because they can’t save for a down payment. Also, 69% don’t feel financially secure enough to buy and 63% can’t qualify for a mortgage because of high debt-to-income ratios.

A majority of those surveyed expect to be delayed by more than five years from purchasing a home due to student debt. Those with higher amounts of student debt and those with lower income expect to be delayed the longest, as would be expected.

The survey also found that student debt is affecting the overall housing supply by holding back some current homeowners who otherwise would like to sell and trade up. Nearly 1/3 of current homeowners surveyed said their student debt is postponing them from selling their home and purchasing a new one.

“It is imperative to the nation’s economy that we find immediate and practical solutions to financially empower the 43 million Americans with student debt,” says SALT^® President John Zurick. “SALT^® is committed to demystifying the college financing process by giving consumers information, instruction and individualized advice. No one should not realize the full potential of their formal education simply because of finances. We invite the higher education community, the U.S. government, the private sector and others to join with us in this movement.”

As a REALTOR^® I didn’t need to read about this survey to know the problems concerning student debt and the ability to purchase a home. I come across this stumbling block regularly. It IS “imperative” that we find a solution and I am working diligently behind the scenes at present to see what can be done to help alleviate some of these problems. Stay tuned for more information as it becomes available.

SELLERS: WHAT EVERY BUYER WANTS TO KNOW ABOUT YOUR HOME

RisMedia, 6.8.16

With high demand and sales at their strongest in close to a decade, home sellers are in an advantageous position this summer. Here are a few specific items that every buyer wants to know prior to purchasing a home they are considering. Some of this is information that may seem premature to advertise initially, but could ultimately be determining factors in a buyers decision to make an offer.

How old is the home? When was it last renovated? How old is the roof?

What structures or fixtures are included in the list price? (Appliances, ceiling fans, lighting, shed, swing set, window treatments, etc.)

What are the home’s annual costs? (Electric, municipal water, gas, oil, lawn care, pool maintenance, etc.)

Has the home required asbestos, lead or mold removal? Has the home been tested for radon?

How is the home heated and/or cooled? How old is the heating and/or cooling system? How old is the hot water heater?

How is the wiring? Is it up to code?

Has the well water been tested?

Is/was an oil tank buried on the property? Is there a septic system, cesspoll or drywell?

Are there any outstanding permits or liens on the property?

What are the homeowners association fees? What is the move-in fee? What amenities or services are provided by the HOA?

By providing these answers upfront you meet prospective buyers on their terms which could lead to an offer that much sooner or one that won’t fall apart due to answers they get at a later date.

SKY SOX TICKETS ARE YOURS FOR THE ASKING

Another reminder--I have four first row seats right behind the home team dugout. These are yours for the asking, but on a first-requested, first-served basis. Just give me a call and I will be happy to reserve tickets for you for any home game of the season.

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HARRY'S BI-WEEKLY UPDATE 6.7.16

Tuesday, June 7, 2016

by Harry Salzman

June 7, 2016

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.

SUCH GREAT NEWS ALL AROUND THAT IF YOU TAKE THE R’s OUT OF “HARRY” AND SWAP THEM WITH “P’s” YOU WOULD SEE HOW “HAPPY” THIS MAKES ME.

You are receiving this issue a day late is because I wanted to be able to share the latest PPAR Monthly reports with you that were released late yesterday. And I’m so HAPPY that I waited. As anticipated, the results are sure to make you smile.

May brought us to 22 consequent months of increased local Residential real estate sales, and coupled with the fact that the Cost of Living in Colorado Springs just hit a three year low—that’s a BIG WOW.

While those of us that live here know the many pleasures afforded to Colorado Springs residents, it’s apparent that the rest of the country is now considering not only our mountains and clean air but also our low cost of living and growth as compared to other cities—not only in CO—but all around the country. Downtown redevelopment and an increased job market are just two things adding to this surge.

I’ve been as busy as I’ve ever been and when you see the reports you’ll understand why. Homes are selling at a whopping 99.9% of listing price—the highest I can ever remember. Not only that—the average days on the market is a low 32. This is such good news for both buyers and sellers.

As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes are up 7.3% over May 2015 while Condo/Townhome sales are up 6.1%. I believe these numbers would have been even higher had there been more homes available for sale.

The Monthly Summary shows that total active listings are way down—20.5% down for Single Family/Patio Homes and 41.6% down for Condo/Townhomes compared to a year ago. This downward trend is making it a blessing for sellers. However, it is more difficult, but certainly not impossible, for current buyers.

Happily, Median Sales Prices are up 7.8% and 7.1% for both Single Family/Patio Homes and Condo/Townhomes respectively—again wonderful news for both buyers and sellers.

It appears that the spring buying season will be continuing right through summer and when you consider that rental rates are rising so quickly, especially here in the Springs, it’s no wonder that we are seeing so many first-time buyers as well as first-time investment property buyers.

According to the May 2016 Colorado Apartment List Rent Report, Colorado rental rates remain well above the national median for the month of April. Colorado Springs came in as the city with the strongest year-to-year growth at 11.4%. Month-over-month, rents here increased by 0.4%.

Our city is continuing to make national news as Colorado Springs was ranked as the 13^th hottest housing market in the country in May on the National Association of Realtors^®’ list of the Top 20 nationally, based on the speed at which homes are selling.

With mortgage interest rates continuing to remain historically low, this is a great time to realize your residential real estate dream. Whether to sell and trade up, move to a new neighborhood, downsize or simply buy for the first time or for investment purposes, the time to do it is NOW.

It’s very important in today’s market to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present, as you can see from the statistics.

When it comes to making an offer…it’s important to makes yours stand out. That’s where my 44 plus years of residential real estate experience come in very handy. I know how to write an offer and negotiate a deal that gets to the closing table. It may not come out on top every time, but my outstanding success rate is just another feature of my personal brand of customer service.

When preparing to sell your home, another factor to consider with homes selling so quickly is that you need to have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home. I can help you in this scenario too.

Now you can understand why HARRY is HAPPY and I’ll be even happier when I can help you make all your real estate dreams come true. Simply give me a call at 598.3200 or email me at Harry@HarrySalzman.come and let’s get started.

It is indeed, a HAPPY, HAPPY DAY for Residential real estate in the Colorado Springs area.

MAY 2016 WAS THE 22^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

Here are some highlights from the May 2016 PPAR report. Please click here to view the detailed 14-page report, including charts. If you have any questions, just give me a call.

In comparing May 2016 to May 2015 in PPAR:

Single Family/Patio Homes:

New Listings are 1,955, Up 6.3%
Number of Sales are 1,497, Up 7.2%
Average Sales Price is $290,256, Up 4.8%
Median Sales Price is $262,000, Up 7.8%
Total Active Listings are 2,296, Down 20.5%

Condo/Townhomes

New Listings are 265, Up 21.6%
Number of Sales are 201, Down 2.9%
Average Sales Price is $171,236, Down 0.5%
Median Sales Price is $167,000, Up 7.1%
Total Active Listings are 167, Down 41.6%

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

Median Sales Price Median Sales Price

May 2016 May 2015

Black Forest $471,400 $435,000

Briargate $338,500 $310,000

Central $215,000 $201,500

East $215,000 $210,950

Fountain Valley: $237,000 $208,000

Manitou Springs: $237,000 $242,100

Marksheffel: $279,900 $259,450

Northeast: $243,888 $231,750

Northgate: $413,579 $387,000

Northwest: $333,500 $339,375

Old Colorado City: $219,250 $200,000

Powers: $252,000 $229,700

Southwest: $326,500 $358,000

Tri-Lakes: $450,000 $417,000

West: $244,000 $224,500

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

3% DOWN PAYMENT LOANS BEING READIED

Realtor^®Mag, 5.27.16

A number of banks are veering away from Federal Housing Administration (FHA) loans and beginning to offer their own low down payment mortgages in order to appeal to home shoppers who are struggling to save enough to purchase a home. Wells Fargo, in particular, made headlines with the debut of its 3% down payment loan.

JPMorgan Chase also debuted its “Standard Agency 87%” program, a 3% loan for first-time home buyers with a FICO credit score of 680 or higher. They also have a “DreaMaker Mortgage” which offers 5% down—3% of which can come from the borrower as well as flexible funding options for closing costs and reduced mortgage insurance requirements.

Bank of America and other banks are also getting onboard with these new offerings.

According to Wells Fargo’s Brad Blackwell, executive vice president and portfolio manager, “We’ve taken all the complexity of the home mortgage lending process, removed it from the front-line consumer, so that it’s easy for them to understand and Wells Fargo is taking care of all the capital markets and other types of complexities behind the scenes”.

The mortgage lenders have said that the monthly payment for these loans will be less than the government-insured FHA loans.

While there are certain risks with these loans, JPMorgan Chase’s CEO, Jamie Dimon, says that “Mortgages are important to our customers and for most of our customers, their home is the single largest purchase they will make in their lifetime. More than that, it is an emotional purchase—it is where they are getting their start, raising a family, or maybe spending their retirement years. As a bank that wants to build lifelong relationships with its customers, we want to be there for them at life’s most critical junctures.”

Shopping for a mortgage is an important step in the home buying process, and most especially for first-time buyers. Another good reason to use an experienced real estate Professional like myself as I have many years of experience working with both local and national mortgage lenders and can help steer clients in the right direction when they are looking for mortgage financing.

PENDING HOME SALES SURGE TO 10-YEAR HIGH

Housing Wire, 5.26.16

Overcoming industry hurdles, pending home sales in the USA increased for the third consecutive month in April to their highest level in over a decade, according to The Pending Home Sale Index, a forward looking indicator based on contract signings.

Lawrence Yun, chief economist for the NAR, said, “The ability to sign a contract on a home is slightly exceeding expectations this spring even with the affordability stresses and inventory squeezes affecting buyers in a number of markets. The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market.”

This boom appears to have affected all major regions, except the Midwest, which saw a meager decline.

According to Yun, “Even if (mortgage) rates rise soon, sales have legs for further expansion this summer if housing supply increases enough to give buyers an adequate number of affordable choices during their search”.

The Wall Street Journal last week said that the S&P/Case-Shiller national home-price index “clawed its way back to within 4% of its 2006 peak, a steep rise from the near 30% decline at the bottom in 2012.”

Once more, the happy news just keeps on coming. And…another reminder…if you’ve even been thinking about a move…NOW is the time.

UCCS MONTHLY ECONOMIC REPORT

The recently released May economic dashboard from the Colorado Springs Economic Forum, showing results from April 2016, can be seen in its entirety by clicking here.

Some highlights include:

Consumer sentiment in April was 90.0, which represents a slight decrease from March. May preliminary estimates are significantly higher.

The U.S. civilian participation rate was 62.8% in April, a slight decrease from March. 2/3s of the reduction in the unemployment rate this past year is due to the long-term unemployed returning to work.

The number of employed people in El Paso County has increased most significantly in health and social assistance, accommodation and food services, and professional and technical services.

Tourism here continues to do incredibly well, with our hotel occupancy rate at a 20 year high.

SKY SOX TICKETS ARE YOURS FOR THE ASKING

Just a reminder--I have four first row seats right behind the home team dugout. These are yours for the asking, but on a first-requested, first-served basis. Just give me a call and I will be happy to reserve tickets for you for any home game of the season

HARRY’S THOUGHT OF THE DAY:

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HARRY'S BI-WEEKLY UPDATE 5.23.16

Monday, May 23, 2016

by Harry Salzman

May 23, 2016

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

CITY OF COLORADO SPRINGS SHOWS 40% BETTER MEDIAN SALES PRICE APPRECIATION THAN THE U.S.A. AS A WHOLE FOR FIRST QUARTER 2016 COMPARED TO FIRST QUARTER 2015

National Association of Realtors^®, May 2016

Wow. And another Wow awhile I’m at it. As most of you know, I track the quarterly Median Sales Price of Existing Single-Family homes, based on sales closed, for approximately 178 of the top Metropolitan Areas in the country. While the city of Colorado Springs has done well in comparison to itself in the last four quarters, it has fallen behind percentage-wise to other measured cities and the country as a whole at times.

I’m thrilled to report that the most recent results show a whole other picture and from all the recent local housing market activity I’m not entirely surprised. In the first quarter 2016, Colorado Springs has shown a 9 percent increase in the Median Sales Price of Existing Homes compared to first quarter 2015. We outpaced the country as a whole (6.3 percent) and even the Western U.S. (7.1%). Please click here to see the results of all measured cities.

Considering the improved economy and job market locally and the continued low mortgage loan interest rates, this is not a huge surprise—but again—it’s most certainly a BIG WOW for us.

According to Lawrence Yun, chief economist for the NAR, “Current homeowners in many metro areas—especially those who purchased a home immediately after the downturn—have enjoyed a sizeable boost in housing equity and household wealth in recent years.”

He added that this is not the case for renters. “At a time of stagnant wage growth (in general) and mounting rent increases…their inability to reach the market because of affordability and supply restrictions is contributing to rising wealth inequality in the U.S.”

This has been a very busy spring buying season but for reasons in addition to the usual ones. We, like the rest of the country, are experiencing a shortage of listed homes and those that go on the market are selling fast—often with bidding wars—and going for listing price and more.

With rental prices rapidly escalating and the uncertainty of how high the annual increases may be, a lot of folks are looking to buy—many for the first time. Those people are in competition with others who are looking for investment properties to rent and oftentimes they get outbid by all cash offers or by those who have fewer restrictions in their offer.

I’ve been telling you for some time that if you are in the market—you need to be prepared. Prepared means knowing what you want, need and can afford and prepared to make an informed decision in a very short period of time—often minutes or hours. I’m here to do the homework in helping you find what might be available for your personal situation and to help you find a reputable lender to get pre-approved, but I can’t make the final decision for you.

Gone are the days where you can think it over for a day or two. If you are seriously looking, you need to be ready to say “yes” practically on the sport when you find what you are looking for.

If you are planning to sell and trade up, you need to know exactly what you might do if your present home sells prior to you finding a new place because, at present, homes are not on the market for more than a month on average.

It sounds like a lot of pressure, and it is. That’s why you need a professional, knowledgeable real estate Broker like me on your side. My 44+ years in the local arena, along with my national relocation network of Realtors/Brokers, gives me an advantage in knowing how to survive the buying and selling wars that are the norm today.

If you are in the market, or know someone who is, please call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s get going. There may not be a lot of inventory, buy somehow there is most always a home that’s exactly what you are looking for as long as you are open to the possibilities of new neighborhoods and other not-thought-of options.

THIS INFOGRAPHIC EXPLAINS THE housing market IN A NUTSHELL…

Keeping Current Matters, 5.13.16

Some Highlights:

Home sales are up 1.5% year-over-year and 5.1% month-over-month.
Demand is still much higher than the available housing inventory, which declined 2.2% from March 2015.
This is the 49th consecutive month with year-over-year price gains.

WITH RISING RENTS, MORE INVESTORS ARE BEING COMING LANDLORDS

USA Today 5.15.16

With fewer homes on the market many folks who were previously “flippers”—those who bought low, fixed up the house, and turned around and sold it for a nice profit—are considering that it might be more profitable to become landlords.

According to Lawrence Yun, one of the biggest reasons more investors are opting to become landlords right now is because they like the income potential. “Rents have been rising, hovering near six-or seven-year high levels and are seeing close to 3.5% growth from 12 months ago,” said Yun. That means not just getting a steady flow of cash from a tenant but also the prospect of an even higher income stream with each passing year. This is looking good right now considering what savings accounts and Treasury bonds are now paying,

The laws of supply and demand are on the landlords’ side at present. On the supply side, there aren’t enough rental units available, with vacancy at just 7% first quarter 2016 according to the U.S, Census Bureau. And vacancies are even less here in Colorado Springs!

On the demand side, many young people are being forced to rent due to having to be mobile for their professions. They also don’t always have the means or desire to purchase property. Older Americans are also choosing to rent as well.

If you are thinking of becoming a landlord there are a number of things to consider besides having the capital to do so.

According to Yun you should:

Think local. Successful investors prefer properties within a 30-minute drive of their primary residence, and not simply so they can be “on-call” to be a handyman. “It’s about the unknown and a preference for knowing their local market,” says Yun. Even if all the data and statistics may say the investment property 200 miles away may provide a better return, most people don’t feel comfortable not knowing the real estate market conditions.” However, if the local rental market is not robust—you are better looking at other investments.

Look into regulations and taxes. As a landlord you have to report any rental income to the IRS and you’ll be eligible for certain property-related deductions to offset any taxes. Therefore, running this by your accountant is extremely important. Understanding tenant and landlord rights is equally important and these vary by municipality and state.

Account for maintenance and vacancy costs. It’s common for new landlords to underestimate the operating costs of rental properties, especially the maintenance and turn costs when a tenant vacates.

Think ahead. If your rental is in a town where your children may want to go to college or if it’s a smaller home that you may consider moving into when you retire, there may be added benefit to owning a rental property beyond the short-term goal of making some money. It’s possible the property you buy now to rent could be put to some other use further down the road.

I’ve been selling a number of homes in the last few months to those who have realized that they are getting a greater return from real estate than from any other long-term investments. However, as I’ve said before—not everyone is in a position to be a landlord. I’ve had many years of experience in this arena personally and if you’re interested, I would be more than pleased to share my experiences with you.

And…if and when you are ready to get into the rental market, I’m here to help you all the way with finding the right property.

FOR THOSE WHO NEED ANOTHER REMINDER OR TO PASS ON TO SOMEONE WHO DOES…

Keeping Current Matters, 5.20.16

Some Highlights:

The percentage of income needed to afford a median priced home is almost half the percentage of income needed to afford median rent.
Buying costs are significantly less than renting costs.
The percentage of income needed to afford a median priced home is less than the historic norm.

AN INTERESTING TIDBIT AND ONE TO WHICH I HEARTILY CONCUR…

The Gallup organization recently released a survey in which Americans were asked to rank what they considered to be the “best long-term investment.”

real estate ranked number one, with 35% of those surveyed saying it was a better long-term investment than stocks & mutual funds, gold, savings accounts or bonds.

OTHER INTERESTING FACTS FROM THE U.S. CENSUS BUREAU…

Denver is now the 19^th most populous city in the nation with an estimated 2015 population of 682,545.

El Paso County had an estimated 2015 population of 674,471.

Colorado Springs ranked as the 40^th biggest city in the country with 456,568 estimated 2015 population.

All I can say is another “WOW”. No wonder I’m getting so many calls from folks who might be working in Denver but want to live here. Lots more open spaces and certainly less traffic. But it’s still hard for me, after living here for 44+ years, to realize that we have grown so big. And…I guess it’s not going to stop there.

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HARRY'S BI-WEEKLY UPDATE 4.18.16

Monday, April 18, 2016

by Harry Salzman

April 18, 2016

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.

NEW CITY LOGO TELLS THE WORLD WHAT WE ALREADY KNOW

Those of us who call Colorado Springs home are well aware of the enormous presence of the U.S. Olympics. After all, we are home to the United States Olympic Committee (USOC), U.S. Paralympics, the Olympic Training Center, and serve as headquarters for 23 of the 47 Olympic National Governing Bodies. And this year will see us breaking ground on a world-class U.S. Olympic Museum and Hall of Fame that is set to open in 2018.

Therefore, I find it quite fitting that the city is now promoting it’s U.S. Olympic connection by branding itself “Olympic City USA”. You can see the new logo above, depicting our mountains in the Olympic colors.

To quote Colorado Springs Mayor John Suthers, “This is an exciting opportunity to use our existing assets to define us on a world stage”. I heartily concur and am always happy to share my enthusiasm and support for the city that I’ve lived and worked in residential real estate for 44 years this month.

As I write that, it’s almost mind-boggling to me that I’ve been in Colorado Springs for that long. The last 44 years here have afforded me the opportunity to live in one of our country’s most beautiful locales, while allowing me to make a living doing what I love. Along the way, many of you have become long-term repeat clients and have become friends. The fact that I now am not only working with you, but with your friends, co-workers, children and in some cases—grand-children—is testament to the fact that my special brand of customer service has been appreciated and reciprocated. I can’t begin to express my appreciation for all of this but I just want you to know that it is not something I ever take for granted. I thank you for allowing me to continue to be a part of your life.

COLORADO SPRINGS EXPERIENCING LONG-AWAITED ECONOMIC RECOVERY

The Gazette, 4.17.16

Yesterday’s GAZETTE headlined a story about the arrival of our city’s long-awaited economic recovery and it contained a lot of information that I feel deserves reiteration. As I previously mentioned, I’ve lived here a long time and have thus seen the City go through both good and not-so-good times. I’m happy to report that now is one of the best times.

There is a very low unemployment rate and jobs are being created faster than any time in the last 15 years. As I’ve reported in the last few months, residential real estate is at an all-time fast pace. Tourism is booming and hotels and restaurants are cropping up in all parts of the city. With all of this comes increased sales tax revenue—so all in all it’s a sure sign of economic recovery for Colorado Springs.

To again quote Mayor Suthers, “There is a lot of enthusiasm out there and we are seeing some very positive signs. While there is going to be downturn at some point, we are not seeing such enormous growth that I am concerned about a bubble. It is all very healthy and has the appearance of being sustainable”.

All major indicators measuring the local economy point to it reaching levels from before the recession began in 2008, with some at the highest level since the end of the tech boom in late 2000 and early 2001. We are now generating new jobs at a faster rate than the rest of the state and the rest of the nation for the first time since the recession.

According to Tatiana Bailey, director of the Southern Colorado Economic Forum, “We are kind of in a boom. If you look at where we were 1 ½ to two years ago, so many of the indicators have turned around. We were lagging the state and the nation. We now have strong employment numbers with people re-entering the labor force, construction is going through the roof, and sales of luxury goods are really strong.”

And like Mayor Suthers, Ms. Bailey believes that “With people starting to wonder when the bust will follow, it seems to me that growth is spread across so many industries that it is sustainable”.

Good news indeed.

If you know anyone who might be considering a move here, I would recommend you suggest they go to the GAZETTE’s website to read yesterday’s headline article in it’s entirety so they can see first hand why this might be an excellent decision. And of course, when they are ready, please refer them to me for their residential real estate needs!

SPRING HOME BUYING IN 2016 ON TARGET TO BE THE BEST IN A DECADE

Keeping Current Matters, 4.6.16

Jonathan Smoke, chief economist at realtor.com stated several weeks ago that, “All indicators point to this spring being the busiest since 2006”.

Freddie Mac, in their March Housing Outlook Report is saying that 2016 will be the best YEAR that the real estate industry has seen in a decade:

“Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006, according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”

Some of the key indicators that have given Freddie Mac such a positive position include:

Historically low interest rates
A resilient labor market
An increase in household formations
A projected increase in newly constructed homes

This information reinforces everything I’ve been telling you for months. Just this past week I listed a home for $689,900 and less than 24 hours later I had multiple offers and the home sold. It’s a crazy time for real estate—and the spring buying season is just getting under way.

If you’ve been sitting on the fence or waiting for increased equity in your present home before contemplating a move, NOW is the time. Waiting any longer could cost you in terms of finding what you want, as well as in mortgage interest rates.

It’s time to look at your wants, needs and budget and make a plan for your residential real estate dreams. That’s where I come in. In today’s market, it’s more important than ever to have an experienced, professional real estate broker on your team. You need to know in advance what you are looking for and need to be ready to make a decision in a much shorter period of time than in the past. There are fewer available listings and it takes good negotiation skills to help you get to closing.

I am here to help in all these areas so give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let me help guide you through the process. One more way my 44 years of local residential real estate experience can be of service for YOU.

AND THE MORTGAGE RATES JUST KEEP ON FALLING…

Daily real estate News, 4.15.16

Last week the 30-year fixed mortgage rate fell to its lowest average of the year—averaging 3.58 percent—according to Freddie Mac in its latest mortgage market survey.

According to Freddie Mac’s chief economist, Sean Becketti, “Demand for Treasuries remained high this (last) week, driving yields to their lowest point since February. In response, the 30-year mortgage rates fell 1 basis point to 3.58 percent. This rate represents yet another low for 2016 and the lowest mark since May 2013.”

Just another reason to quickly hop off the fence!

HOMEOWNERSHIP IS A GREAT INVESTMENT…INFOGRAPHIC

Keeping Current Matters, 4.1.16

SOME GOOD TIPS TO HELP BUYERS IN A “SELLERS MARKET”

RealtorMag, 4.8.16

Be on call. In order to succeed in today’s market, you must make house hunting a priority. There is a shortage of available homes for sale and the good houses are getting picked up quickly. You need to act fast to snag the one you want.

Cast a wide net. Search for homes outside prime locations or in areas that you might not have considered before if faced with limited or high-priced choices. You need to consider what you might want or need to compromise on. Sometimes properties sit longer than others because they might needs renovation or other work. Oftentimes you might get these properties for less than expected and you can have the work done later—and to your specifications--with the money you save in purchasing the home.

Bring the paperwork. To have your offer taken seriously, it’s wise to have a pre-approval letter as well as proof of funds from the bank to show you have enough to cover the down payment.

Limit the contingencies. In a “sellers market”, buyers may need to drop some of the contingencies to get the house they want. Sellers prefer the fewest number of hurdles to closing as possible so the fewer “what if’s” the better your chances of having your offer accepted.

Don’t play hardball. In a “typical” home-selling scenario, buyers make an offer below the seller’s asking price, and then negotiate upward from there. But in a “seller’s market” often there is little to no room for price negotiations. In fact, if there are multiple bids, you could end up paying well over the asking price. So you need to decide exactly how high you would be willing to go.

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HARRY'S BI-WEEKLY UPDATE 4.4.16

Monday, April 4, 2016

by Harry Salzman

April 4, 2016

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.

MARCH 2016 WAS THE 20^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

It’s beginning to sound like a broken record (which, it literally IS), but I am happy to once again report that prices and sales are continuing their upward climb 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 16.2% over March 2015 while Condo/Townhome sales are up 2.6% over 2015. Homes are selling, on average, at 99.5% of the list price and I believe all of these numbers would have even been higher if there had been more homes available for sale.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year. However, new listings are up 10.3% year-over-year for Single Family/Patio Homes and up 15.9% for Condo/Patio Homes.

With spring buying season just getting underway, along with the continued increase in sales prices and low interest rates, I’m expecting to see more folks hopping off the fence and venturing into the market. Homes that were at one time “underwater” are now presenting opportunities for owners to check out all available options once again.

According to Jonathan Smoke, realtor^®.com’s chief economist, “I would use the term ‘pent-up-demand’ liberally—we’re seeing it come through in the marketplace. The people who didn’t buy last year were frustrated because they were outbid or couldn’t find a home that met their needs. So they more or less took the holidays off, and are back with way more intensity.”

He added that “the early readings on March inventory and activity on realtor^®.com indicate that early bird buyers are emerging in markets that typically have buyers sidelined with winter weather (like Colorado Springs)”.

The good news is that inventory is picking up, due in part to situations I mentioned above. It’s a small but much needed growth and should lead to a significant uptick in sales this year according to Smoke.

Once again, Colorado Springs is listed in the top 20 housing markets in America—at number 11—up from number 18 in February. The median age of our inventory in March was 44 days—down from 67 days in February—and that’s just another thing to add to the spring buying frenzy!

I am continuing to see a number of folks looking for investment properties to compensate for the stock market volatility that’s plagued us in recent months. Rental prices are continuing to rise and that is making investment properties a good idea for those wanting to get into that niche of the housing market. While that isn’t affecting the upper end of the market much, it is cutting in to the available properties for first-time buyers to some extent.

In general, there are still fewer homes available in most neighborhoods and most price ranges, with the current average days on the market a low 44, and those in the low and mid-range tend to go quickly. These are the homes that are receiving competing bids, some over asking price. Making a quick decision is now the rule in order to secure the home you want.

It’s worth repeating one more time that it’s more important than ever to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at present.

If you’re planning to sell to trade up or move to another neighborhood, another factor to consider is that with homes selling so quickly you need to have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home.

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 March 2016 PPAR report. Please click here to view the detailed 15-page report, including charts. If you have any questions, as always, just give me a call.

In comparing March 2016 to March 2015 in PPAR:

Single Family/Patio Homes:

New Listings are 1,790, Up 10.3%
Number of Sales are 1,172, Up 16.2%
Average Sales Price is $268,010 Up 3.3%
Median Sales Price is $239,500, Up 6.4%
Total Active Listings are 1,941, Down 23.5%

Condo/Townhomes:

New Listings are 204, Up 15.9%
Number of Sales are 155 Up 2.6%
Average Sales Price is $160,251, Up 4.6%
Median Sales Price is $161,404, Up 12.9%
Total Active Listings are 142, Down 45.8%

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

Median Sales Price Median Sales Price

March 2016 March 2015

Black Forest $480,000 $389,950

Briargate $310,000 $317,500

Central $200,000 $163,000

East $203,000 $180,000

Fountain Valley: $218,500 $189,900

Manitou Springs: $362,000 $277,000

Marksheffel: $252,000 $268,000

Northeast: $231,050 $215,500

Northgate: $411,059 $354,790

Northwest: $365,000 $335,000

Old Colorado City: $236,200 $205,000

Powers: $245,000 $219,950

Southwest: $249,085 $269,500

Tri-Lakes: $461,725 $420,000

West: $234,900 $214,650

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

COLORADO SPRINGS RENTS RISE FASTEST IN NATION

The Gazette, 4.2.16

Rental rates in Colorado Springs rose 11.4% in March compared to March 2015 according to a survey by Apartment List, a San Francisco-based rental service, putting us at the top of the survey of 100 cities.

This didn’t come as a surprise to me as I’ve had difficulty finding rental places for clients who need temporary housing. Most available units are requiring longer leases at increased rates compared to even seven or eight months ago. And, as I mentioned earlier, this has been an impetus for many of my clients to consider rental properties as investments.

While we topped the list, it’s important to note that Colorado Springs still remains cheaper than many other cities to rent an apartment or home. According to the survey, the median apartment rent of $1,010 a month for a two bedroom unit ranked 51^st in the nation.

An improved economy, increased job opportunities and young people looking to rent for the first time are driving up prices, especially since there are fewer units available.

I’m certain you can guess my thoughts on this issue. Home ownership is certainly something to consider, if possible, for many reasons.

To begin with, you don’t have to deal with rents going up each year. And when you add that to the fact that you are building equity with each mortgage payment, it becomes a no-brainer. Low interest rates, along with new regulations that allow for lower down payments and other down payment alternatives are worth considering for first-time buyers.

Why not give me a call today and let’s see if buying a home is a viable option for you or a family member. It’s possible that reality is more plausible than you might think.

2016 PREDICTED TO BE HOUSING’S ‘GOLDEN YEAR’

RealtorMag 4.1.16

Low Mortgage Rates. Improving Job Market. Gradual Increase in Housing Supply.

These are the three reasons given by mortgage giant Freddie Mac officials to make the prediction that this year housing starts and home prices will reach their highest levels since 2006.

According to Freddie Mac’s monthly Outlook for March, we can “expect the 30-year mortgage rate to remain very attractive throughout the spring home-buying season, staying below 4 percent until the second half of the year.”

That said, there are still a few challenges for the housing market, particularly with wage growth and “if wages and incomes do not start rising, then rising interest rates, home prices and rents will squeeze households and ultimately slow housing markets,” Freddie Mac noted.

However, officials there remain upbeat and the Outlook noted that the “nation’s housing markets should sustain their momentum from 2015 into 2016 and 2017.”

UPDATE: DODD-FRANK ACT CONTINUES TO IMPACT MORTGAGE LENDING

Mortgage lending has changed in a number of ways since the implementation of the Dodd-Frank Act last October and other changes are due in the next few years.

At present, some lenders have been forced to eliminate some mortgage products due to lack of clarity around the enforcement the TRID “Know Before You Owe” integrated disclosure.

Each new regulation has added to the cost of the mortgage process while adding to processing times. And, in January 2019 there will be additional changes, more than likely adding to the cost and time required for loan processing.

I’ve experienced the frustration of my clients when an “all cash” deal has trumped their offer because there are no “wait times” imposed by lenders and law. This Act was meant to make things easier for the consumer and to make certain that they understood all costs and requirements prior to closing. The intent was good—and still is—but it’s continuing to make the home buying process a bit more lengthy and confusing for some.

It’s not going to get better I’m afraid, but lenders I work with are doing their best to make the best of the situation for all concerned.

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HARRY'S BI-WEEKLY UPDATE 3.14.16

Monday, March 14, 2016

by Harry Salzman

March 14, 2016

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.

FEBRUARY 2016 WAS THE 19^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And one more time…I am happy to report that prices and sales are continuing their upward climb 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 31.0% over February 2015 while Condo/Townhome sales are up 8.1% over 2015. I believe these numbers would have even been higher if there had been more homes available for sale.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year. In fact, the total active listings for Single Family/Patio Homes are 1,762—again setting the record for the lowest number of active listings since PPAR began record-keeping.

New listings in February were up 10.9% over the same month least year in the Single Family/Patio Homes category. Condo/Townhomes for the same period were significantly down in total active listings and new listings saw an increase of 6.3%.

We are still experiencing low mortgage interest rates, which is apparently reflected in these numbers. The stock market volatility and low oil prices have helped keep mortgage rates low and people are taking advantage of this before things change. This has also caused some of my clients to purchase more investment properties to take advantage of the rental shortage and higher rental rates they can get to offset stock market losses.

There are fewer homes available in most neighborhoods and most price ranges, with the current average days on the market a low 59, and those in the low and mid-range tend to go quickly. These are the homes that are receiving competing bids, some over asking price. Making a quick decision is now the rule in order to secure the home you want.

The spring buying season has not yet really begun but you wouldn’t know if from all the recent activity. If you are considering selling to trade up or move to a new neighborhood, the sooner you start the better. There will be more buyers competing for homes during the spring buying season, so starting your search now could not only save you money, buy could afford you a “head start” in the home buying search.

According to Lawrence Yun, chief economist for NAR, buyers are anticipated to outnumber sellers this spring, creating an even greater shortfall of inventory that is driving up asking prices. “Given that prices are rising, more people will be pushed on the borderline of conventional mortgage limits and may need a large down payment or a jumbo mortgage,” says Yun. Jumbo mortgages have limits higher than conforming loan limits of $417,000 and up to $625,500 in some high-prices areas.

One silver lining in jumbo mortgages is that lender confidence in jumbo mortgages is leading to looser credit qualification says Bob Walters, chief economist for Quicken Loans. Some lenders are accepting credit scores of 700, and sometimes lower, while accepting a down payment of less than the usual 20%.

Most jumbo borrowers are locking in low fixed rates. However, if you are planning to stay in your home for only five to ten years, it might be cheaper to go with a lower adjustable rate. And, while the typical lock-in time for rates is 45 days, for some pre-approved borrowers who are still looking many lenders will lock longer for a slight premium says Walter.

However, as I’ve said in the past few editions, it’s more important than ever to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days or even a few hours” at this time.

Another factor to consider is that with homes selling so quickly you need to be have a good idea of where you might want to move because you more than likely won’t have the luxury of time on your side to search for a replacement home.

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 February 2016 PPAR report. Please click here to view the detailed 14-page report, including charts. If you have any questions, as always, just give me a call.

In comparing February 2016 to February 2015 in PPAR:

Single Family/Patio Homes:

New Listings are 1,250, Up 10.9%
Number of Sales are 870, Up 21.3%
Average Sales Price is $270,377 Up 8.9%
Median Sales Price is $240,000, Up 6.7%
Total Active Listings are 1,762, Down 27.5%

Condo/Townhomes:

New Listings are 152, Up 6.3%
Number of Sales are 131, Up 31.0%
Average Sales Price is $171,198, Up 18.8%
Median Sales Price is $154,900, Up 12.2%
Total Active Listings are 145, Down 46.7%

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

Median Sales Price Median Sales Price

February 2016 February 2015

Black Forest $405,000 $377,838

Briargate $317,250 $279,000

Central $179,900 $154,000

East $192,000 $172,500

Fountain Valley: $222,000 $197,950

Manitou Springs: $267,500 $290,000

Marksheffel: $270,000 $236,000

Northeast: $247,400 $211,500

Northgate: $360,000 $365,000

Northwest: $319,500 $310,500

Old Colorado City: $191,000 $205,000

Powers: $233,000 $220,000

Southwest: $162,000 $250,225

Tri-Lakes: $450,000 $427,000

West: $262,450 $201,500

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

SOUTHERN COLORADO ECONOMIC FORUM’S QUARTERLY UPDATES & ESTIMATES

College of Business and Administration, UCCS, Southern Colorado Economic Forum, February 2016

The Fourth Quarter 2015 Update on the El Paso County Economy, including housing trends, was published last week and you can click here to read the full 9-page report. Much of the section on Housing mirrors the PPAR report and includes:

The single family permit activity continues its upward trend
Rental rates continue to climb steeply and vacancy rates fall
Active listings were down 17.9% year over year, average days on the market are considerably down from last year and median price is up
Foreclosures are down by 19.4% in 2015 from 2014

Other sections of the report include:

The Big Picture
Employment
Commercial real estate and Airport
Sales Tax and Car Registration

Salzman real estate Services is proud to have been a supporter of the Southern Colorado Economic Forum since its inception in 1996 and I will continue to provide you with access to this report quarterly as soon as it is made available to me.

AS WE ENTER DAYLIGHT SAVINGS TIME, SOMETHING TO REMEMBER…

U.S. NEWS & WORLD REPORT NAMES COLORADO SPRINGS ONE OF TOP BEST PLACES TO LIVE

The Gazette, 3.2.16

According to a report this month by U.S. News & World Report, Colorado Springs is the fifth-best place in the U. S. to live and Denver topped the rankings, adding to the appeal of Colorado living that those of us fortunate enough to live here already experience on a daily basis.

The magazine’s profile of our City said, “This Colorado city, which is filled with natural wonders of its own, has the additional allure of proximity to ski resorts like Aspen and Vail without the associated steep costs of living and high levels of traffic.”

To come up with it’s list, the magazine analyzed 100 cities in the U.S. to find the best places to live based on quality of life and the job market in each city, as well as the value of living there and people’s desire to live there. Colorado Springs ranked fifth with an overall score of 7.4 out of 10.

THINKING OF BUYING A HOME? WHAT ARE YOU WAITING FOR?

Keeping Current Matters, 3.10.16

With the spring buying season approaching, many of you may be wondering if you should wait before entering the housing market. If the reasons I gave up in previous articles isn’t enough to convince you otherwise, here are four more reasons to consider.

Prices will continue to rise.

Home prices are continuing to rise as indicated above and CoreLogic’s Home Price Index predicts that prices will continue to increase at a rate of 5.4% over the next year.

A survey of over 100 economists, investment strategists and housing market analysts by The Home Price Expectation Survey reported that home values are projected to appreciate by more than 3.2% a year for the next 5 years. The “bottom line” in home prices has come and gone and prices will continue to rise. Waiting no longer makes financial sense.

Mortgage interest rates are projected to increase.

While Freddie Mac’s Primary Mortgage Market Survey indicates that interest rates for a 30-year mortgage have remained below 4%, most experts predict that they will begin to rise over the next 12 months, possibly up almost three-quarters of a percentage point by this time next year. An increase will impact your monthly payment and your housing expense will be more a year from now with higher mortgage rates on top of higher prices.

Either way you are paying a mortgage.

According to a paper from the Joint Center for Housing Studies at Harvard University:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down the principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

An aside here—according to John Paulson, a billionaire hedge fund manager, those looking for the best possible investment need to look toward home ownership. In an article published in July 2014 he said: “I still think, from an individual perspective, the best-deal investment you can make is to buy a primary residence that you’re the owner-occupier of. Today, financing costs are extraordinarily low. You can get a 30-year mortgage for somewhere around 4 percent. And if you put down, let’s say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment. And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. If you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”

Good advice in 2014 and just as good today!

It’s time to move on with your life.

The “cost” of a home is determined by two major components: the price of a home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting.

Consider all the above factors and if it’s the right time, then do it sooner than later as it could lead to substantial savings over time.

Just a reminder-it’s more important than ever to have “all your ducks in a row” PRIOR to entering the current housing market.

Give me a call and I can help answer any questions you may have BEFORE you enter the housing market—either for the first time or to sell and trade up or purchase for investment reasons. Together we can make your housing dreams a reality.

HOME EQUITY AT PRE-CRISIS THRESHOLD

The Wall Street Journal, 3.11.16

According to a report from the Federal Reserve last Thursday, U.S. households ended 2015 with their home equity at the highest level in a decade, a housing-recovery milestone that could help shield many Americans that were pinched by financial-market volatility early this year.

This report underscores the extent to which the housing crisis is fading from view, with the value of U.S. real estate climbing to $25 trillion, against $9.5 trillion in mortgages, which translates to home equity of over $15 trillion. This report combines both households and nonprofits together, but the vast majority of this real estate is held by households.

“It provides a cushion for these homeowners,” said Frank Nothaft, chief economist of CoreLogic. “Even if they face some setbacks in the stock market and are looking to access some cash without selling at a loss, they could do so with a home equity loan.”

According to CoreLogic, today about 4.4 million homes still have negative equity. By contrast, in 2009, over 12 million homes were underwater.

Good news indeed.

SOUTHERN COLORADO ECONOMIC FORUM LUNCHEON TO FOCUS ON SMALL BUSINESS

A first time event has been added to The Southern Colorado Economic Forum’s yearly agenda. On April 12 at The Pinery on the Hill, a luncheon meeting will feature local and national economic forecasts and presentations on the role and economics of Small Business in the Colorado Springs area and the state.

Hosted by the Forum, which is a part of the UCCS College of Business, and the Pikes Peak Small Business Development Center, the sponsors include Wells Fargo Bank and the Colorado Springs Business Journal.

The keynote speaker will be Alison Felix, vice president and Denver branch executive of the Federal Reserve Bank, who will be joined by Forum director Tatiana Bailey, Aikta Marcoulier, director the small business center, and Kelly Manning, director of the Colorado Small Business Development Center Network and deputy director of the Colorado Office of Economic Development and International Trade.

To get more information and/or register please call 719.667.3803

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HARRY'S BI-WEEKLY UPDATE 2.22.16

Monday, February 22, 2016

by Harry Salzman

February 22, 2016

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 MARKET UPDATE AND MONTHLY INDICATORS PROVIDE MIXED BAG DUE TO SHORTAGE OF AVAILABLE LISTINGS

Pikes Peak REALTORS^® Services Corp.,

As you will see in the recently published Monthly Indicators and Local Market Update for January 2016 for El Paso and Teller Counties, new listings were down significantly for properties in both the single-family/patio homes and condo/townhomes categories. With that came a pending sales increase of 73.9% for single-family/patio homes and 71.9% for condo/townhomes.

The median sales price increase year-over-year in all properties was slightly up, which actually is a good sign that the housing market is continuing to stabilize and if there were more listings, more people would be moving—either selling to trade up or buying for the first time.

The shortage of homes for sale is affecting communities all over the U.S. and it’s somewhat of a “Catch 22” in that those that want to move are afraid to list their homes because if they sell quickly, which has been the case in recent months—they might not be able to find the home they are wanting to buy due to the low number of listings.

In recent weeks, I’ve seen more activity on available homes than I’ve seen in a long while and homes are selling quickly—many with multiple offers. I’ll talk more about that in a moment.

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. These reports provide greater detail than the monthly “PPAR Monthly Statistics” that I share in the first eNewletter of each month.

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

Sold Listings for All Properties was up 30.4%
Median Sales Price for All Properties was up 1.2%
Active Listings on All Properties was down 47.5%.

If you have any questions concerning the report, please contact me.

METRO HOME PRICES ACCELERATE IN FOURTH QUARTER 2015

National Association of REALTORS^®, 2.10.16

Fewer listings and a moderated sales pace had little impact on rising home prices during the final quarter of 2015, which picked up speed and showed continued growth in most of the U.S., according to the latest quarterly report by the NAR.

In 81% of measured markets, the median existing single-family home price increased, with 145 out of 179 metropolitan statistical areas (MSAs) showing gains based on closings in the fourth quarter compared with the fourth quarter 2014.

For all of 2015, an average of 89% of MSAs saw increasing home prices, up from the average in 2014 (83%) and 2013 (88%).

Lawrence Yun, NAR chief economist, says faster price growth reawakened in the final months of 2015 despite the pace of sales slowing from earlier in the year. “Even with slightly cooling demand, the unshakeable trend of inadequate supply in relation to the overall pool of prospective buyers inflicted upward pressure on home prices in several metro areas,” he said. “As a result, homeownership continues to be out of reach for a number of qualified buyers in the top job producing, but costliest, parts of the country—especially on the West Coast and parts of the South.”

The national median existing single-family home price in the fourth quarter was $222,700—up 6.9% from the fourth quarter 2014. In comparison, while Colorado Springs saw its’ median existing single-family home price rise 5.6% year-over-year, our median price was $237,600—6.7% higher than the U.S. average.

Our median home prices may not be escalating as much as some other areas of the country, but we did not see the enormous price fluctuations that those areas experienced during the recession and had fewer foreclosures. The fact that our median prices are higher than the measured U.S. metro areas as a whole is a good thing for our community.

To view all 179 measured areas, please click here.

HOMEOWNERSHIP DREAMS ARE BEING PUSHED OUT OF REACH BY INVENTORY SHORTAGES

HousingWire, 2.10.16

As I mentioned earlier, low inventory is causing problems that make it difficult for both buyers and sellers. And according to the above mentioned report from NAR the problem is not going to subside anytime soon.

“Without a significant ramp-up in new home construction and more homeowners listing their homes for sale, buyers are likely to see little relief in the form of slowing price growth in the months ahead,” according to Lawrence Yun.

From a local perspective, I’ve seen a number of different scenarios in recent weeks. With rental rates continuing to rise there has been an increased interest in investment properties as well as those who are wanting to buy for the first time. Many properties at the lower end of the market are seeing multiple offers as soon as they are listed. Oftentimes investors with ready cash and the offer of quick closing times are creating problems for first-time buyers and others who are in competition with them.

A recent investment client of mine wanted a home that had 12 offers on the day we viewed the home—ours being one of the 12. It took some very clever negotiation on the part of me and the buyer to deliver an offer that the seller and his broker considered to be the best.

To restate what I mentioned earlier, it can be difficult for someone who wants to sell and trade up to time it so that he is not left with no place to live! Listed homes are going quickly and it’s not always easy to find exactly what you might want before your present home sells. I’ve not seen quite this much activity in a long time and without more homes on the market it’s going to get even worse.

This is where having a knowledgeable, experienced real estate broker on your side is especially important. It’s our job to figure out exactly what can be done to help you sell and trade up with the least possible stress on your part. We know how to negotiate offers that get serious attention and help provide you with the options you need in order to make informed decisions.

If you are in the market to sell and trade up or buy for the first time or for investment purposes, please give me a call sooner than later and let’s come up with a strategy that could work for you in today’s market. Interest rates are holding at historical lows and that can help offset the increase in home prices if you don’t wait too long.

Call me at 598-3200 or email me at Harry@HarrySalzman.com and let’s get the conversation started.

2016 housing market PREDICTIONS FROM TOP real estate AGENTS

RisMedia, 2.19.16

As a real estate Professional, I get asked quite often to predict where the market is going and it’s not always an easy answer. If I had a crystal ball it might be easier, but since I don’t I would like to share with you what some of the top Real Estate Professionals across the U.S. are saying:

Is it a good time to buy or sell?

With mortgage interest rates finally starting to rise a bit, 2016 may be the last time in the foreseeable future to take advantage of these historically low rates. Now is the time for first time buyers to make their move.

The volume of homes on the market has declined—this means there are often more buyers and not enough inventory of homes for sale. If staged well, properly priced, and professionally marketed—it’s possible to get multiple offers and in some cases buyers overbidding the list price.

Values are up. There is demand in the market. According to the NAR Foot Traffic Report, there are more buyers out in the market right now than at any other time in the past three years. Buyer demand continues to outpace supply of homes for sale.

What should I do if I’m ready to sell?

Don’t overprice your home—great choices still exist.

Make it shine and stand out from the competition. With inventory being low, in order to get top dollar quickly, a few updates or touches that make the home feel more higher-end will yield more in the long run.

Declutter! Also, hire a home stager and listen to what they have to say. The return on investment is worth the cost.

What should I look for if I’m ready to buy?

First, make sure you are qualified, get your credit in order if needed and find yourself a qualified Realtor with credentials to prove it. Look for an existing home, one that you would want to come home to, raise a family in or just be proud to own. Make it a dream come true.

Focus on your must-haves and don’t be too picky.

Do it earlier in the year so that you have a larger choice of inventory when people list after the holidays.

Should I make any changes in my home before I sell? What are buyers demanding?

Buyers and sellers are starting to demand amenities that are energy-efficient, low emission and cost-effective like tank-less water heaters, solar panels, Nest^®-type thermostats, low-water toilets and the like.

Quiet neighborhood. Good schools and close proximity are a plus. Updates in the kitchen, 2+ bathrooms. A slice of “Americana”.

What’s happening in the real estate market this year? (this is why it’s so crucial to work with a real estate Professional who understands the local market)

Most agree with economists that interest rates, housing prices and rents will continue to rise in 2016.

Supply may get closer to demand in 2016 and with interest rates rising, it may slow buyer activity somewhat, but it will still be a strong market with prices and inventory beginning to stabilize.

As more Baby Boomers are able to sell the family home, they will continue to seek new, usually active lifestyle communities as their children leave the nest. Both urban and suburban lifestyle-based communities will become increasingly more popular with these empty nesters as they look beyond their child rearing years and into the future.

These are just some of the answers from top agents around the country. To find more detailed answers about the Colorado Springs area, please call me and I will be pleased to share with you the information the I continue to compile on a daily basis, both out in the field and in my extensive on-going research.

My job is to do the homework for you so that when you’re ready I will be able to provide you with the excellent customer service for which I’ve become known during my 43+ years in the local real estate arena. Your goals become mine and I will always do my best to exceed your expectations.

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HARRY'S BI-WEEKLY UPDATE 2.8.16

Monday, February 8, 2016

by Harry Salzman

February 8, 2016

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.

BRONCOS WIN PREDICTED BY REALTOR.COM^®

Realtor^®Mag, 2.5.16

Unless you live in a vacuum, you probably know by now that the Denver Broncos won Super Bowl 50 yesterday and it’s a VERY happy day in Colorado as I write this. Most certainly it’s a testament to how hard work and perseverance can get it done.

But what you probably don’t know is that realtor.com^®’s chief economist, Jonathan Smoke predicted this win last week. “Although there is no economically driven correlation between the outcome of the Super Bowl and the housing market, we have found a promising real estate predictor for the Super Bowl that’s more effective than a coin toss”, he said.

Realtor.com^® used January’s performance of the Dow Jones Industrial Average to predict the Super Bowl outcome. “Out of the 49 games to date, this predictor has anticipated the outcome of the Super Bowl 82 percent of the time,” realtor.com^®states.

Accordingly, this year the stock market ended last month down 5.5%, which realtor.com^® says indicated that the Denver Broncos would win. If the market had risen in January, the Carolina Panthers would have been the anticipated winners.

“History suggests a Denver win is also good for the overall housing market”, says realtor.com^®.

“Denver’s past wins in the Super Bowl—in 1998 and 1999—were also strong for housing. In 1998, home prices rose 6% and existing-home sales increased 13%, according to data from the National Association of REALTORS^®. And housing starts surged 9%, with single-family starts alone up 12%. In 1999, the housing market also showed rises, with home prices up 7%; existing-home sales increasing 3%; and housing starts inching up 2%.”

Here is a copy of the chart that was used to make this prediction:

Two good things to point out here: The Broncos won AND the housing market should statistically be on track for another good year.

Good news all around.

JANUARY 2016 WAS THE 18^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

It’s beginning to sound like a broken record but in this case, that’s a good thing. I am happy to report that prices and sales are continuing their upward climb for the Pikes Peak Region in the Residential real estate Market.

The Monthly Summary shows that total active listings continue their downward trend from the same month last year. In fact, the total active listings for Single Family/Patio Homes are 1,923—the lowest number since PPAR began record keeping.

In the Cumulative Year-To-Date Summary you will see that total sales numbers in Single Family/Patio Homes is up 33.5% over the year 2015 while Condo/Townhome sales are up 8.1% over 2015. (These are the same as the month-over-month totals since it’s only for the month of January this time.)

While this is continuing to create a bit of frenzy for buyers due to fewer available choices, new listings in January were slightly up in the Single Family/Patio Homes category. Condo/Townhomes for the same period were significantly down in both total active listings and new listings.

We are experiencing another reduction in mortgage interest rates, which is apparently reflected in these numbers. The stock market volatility and low oil prices have helped keep mortgage rates low and people are taking advantage of this before things change.

There are fewer homes available in most neighborhoods and most price ranges, and those in the low and mid-range tend to go quickly. Making a quick decision is a must in order to secure the home you want.

With fewer homes available, we are finding multiple bids, some even over asking price, and at present the average days on the market is a low 60.

Again, what this means is that it’s more important than ever to know what you want, need and can afford prior to the hunt for a new home. There’s no longer the luxury of “let me think about it for a couple of days” at this time.

For those of you who have been thinking about selling to trade up, the timing couldn’t be better. While there won’t be as many choices available, your home will most likely sell in record time and you can still take advantage of the low interest rates on your next home.

Another factor to consider is that there will be more buyers competing for homes during the Spring buying season, so starting your search now could not only save you money, but could afford you a “head start” in the home buying search.

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 January 2016 PPAR report. Please click here to view the detailed 14-page report, including charts. If you have any questions, as always, just give me a call.

In comparing January 2016 to January 2015 in PPAR:

Single Family/Patio Homes:

New Listings are 1,113, Up 2.9%
Number of Sales are 849, Up 33.5%
Average Sales Price is $263,678 Up 0.9%
Median Sales Price is $237,000, Up 0.7%
Total Active Listings are 1,923, Down 22.1%

Condo/Townhomes:

New Listings are 132, Down 19.5%
Number of Sales are 107, Up 8.1%
Average Sales Price is $169,438 Down 4.1%
Median Sales Price is $163,495, Up 15.1%
Total Active Listings are 147, Down 50.5%

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

Median Sales Price Median Sales Price

January 2016 January 2015

Black Forest $468,000 $399,950

Briargate $341,500 $320,375

Central $226,750 $182,500

East $186,000 $186,400

Fountain Valley: $219,000 $218,169

Manitou Springs: $284,000 $171,000

Marksheffel: $258,750 $246,000

Northeast: $223,000 $213,000

Northgate: $419,202 $368,000

Northwest: $303,500 $279,700

Old Colorado City: $216,500 $225,000

Powers: $229,000 $235,250

Southwest: $252,000 $234,000

Tri-Lakes: $427,000 $412,000

West: $218,000 $201,000

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

JANUARY HOUSING DATA INDICATES STRONG 2016 OUTLOOK

RisMedia, 2.23.16

Year-over-year trends point to this spring as being the busiest since 2006 in growth and sales of residential real estate.

While the housing market nationally followed a typical January pattern of cooler demand, reduced inventory and slower market velocity than during the warmer months, 2016 is off to a strong start with robust year-over-year growth.

January median home prices are expected to show a substantial increase of 8 percent year-over-year. Homes are selling 4 percent faster this year when compared to last year.

According to Jonathan Smoke, “Our initial readings on January affirm the positive growth we expect to see in the residential real estate market in 2016. Our traffic, searches and listing views exhibited the January ‘pop’ we saw last year, which made for a strong spring. In addition, a large number of prospective buyers have been telling us since the second half of 2015 that they plan to purchase in the spring and summer of 2016.”

In order for this to happen we need to see more inventory nationally, as well as here in Colorado
Springs. The decline in the stock market has been very positive for the housing market and low interest rates—25 basis points (or more) lower than at the end of 2015—are contributing to this.

So one more time—if you’re thinking of selling and trading up—THIS IS THE TIME. You can expect to get good value for your present home and while interest rates are still historically low you will find that even with increased prices on your new home, the monthly payment may be less than you imagined.

Call me today and let’s see how we can make this all work out in your favor.

THE “HAPPPIEST” STATES IN THE U.S.

Realtor^®Mag, 2.2.16

According to the latest Gallup-Healthways Well-Being Index, Hawaii was named the number one spot as the “Happiest” state in the country. Colorado placed number four. The Index measures the well-being of states across five elements: purpose, social, financial, community and physical. Life evaluation—how Americans rate and perceive their lives—surged to a record high in the Index.

“Well-being in the U.S. exhibits regional patterns, with the northern plains and mountain west reporting higher levels of well-being, along with some western states and pockets in the northeast and Atlantic states”, according to the report.

Here are the states that scored the highest in well-being, according to the Index:

Hawaii
Alaska
Montana
COLORADO
Wyoming
South Dakota
Minnesota
Utah
Arizona
California
Texas
Florida
Wisconsin
Iowa
North Dakota

WHY DO AMERICANS CONSIDER MOVING?

Keeping current matters, 1.15.16

Some Highlights

In a recent Harris Poll, Americans listed “change in climate/weather” as their top reason for wanting to relocate
41% would move for a better job opportunity
Being closer to loved ones filled out 3 of the top 6 reasons why Americans move

HOMEOWNERSHIP NUMBERS SHOW SLIGHT GAIN

The Wall Street Journal, 1.28.16, Realtor^®Mag, 2.2.16, Housingwire, 1.1.16

An improving economy and a slight easing in access to credit are attributed as reasons for the rise in home ownership during the past two quarters.

While homeownership in the U.S. remains at near the 48-year low of 62.4% in the second quarter of 2015, there was a slight increase from 63.7% in the third quarter to 63.8 percent in the last. This is still far below the peak of 69.1% at the end of 2004.

Latest Census data shows home ownership to be highest among people over the age of 65, with home ownership among those under 35 remaining the lowest. Americans aged 35 to 44 increased their homeownership from 58.8% to 59.3% in the latest quarter.

One of the reasons the homeownership rate could be rising is that some of the nine million owners who lost their homes to foreclosure, short sale or another distressed event could finally be returning to the market.

According to what Matthew Pointon, U.S. property economist for Capital Economics, Ltd. told Bloomberg Business, “We expect it to rise very gradually over the next few years.”

Hopefully we can help find new ways for recent college grads to be able to afford homes, despite lack of credit and/or student loan debt pressures that are currently holding them back.

HARRY’S JOKE OF THE DAY (maybe not so funny, but true nonetheless)

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HARRY'S BI-WEEKLY UPDATE 1.11.16

Monday, January 11, 2016

by Harry Salzman

January 11, 2016

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.

DECEMBER 2015 WAS THE 17^TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES

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

And the good news just keeps on coming for local Residential real estate Sales. I am happy to report that prices and sales are continuing their upward climb 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 18.3% over the year 2014 while Condo/Townhome sales are up 29.6% over 2014.

The number of home sales in 2015--13,250--was record-setting according to the Pikes Peak Association of REALORS^®, topping the annual best record of 13,124 homes sold ten years ago—in 2005.

The Monthly Summary shows that while total active listings continue their downward trend from the same month last year, new listings in December were up 14.2% in the Single Family/Patio Homes category and just down 2.0% for Condo/Townhomes for the same period.

These numbers continue to reflect strong consumer confidence and local job growth, along with the still historically low interest rates in effect for that period. As you know, the Federal Reserve raised their rates at their December meeting but so far this has not greatly affected the housing market. Future rate increases and time will tell how this plays out during 2016.

Increased new listings mean more choices for those looking to buy. However, we have less inventory available than we’ve had in many years and this is feeding a buying frenzy of sorts for those currently in the market. With fewer homes available in all price ranges, we are finding multiple bids, some even over asking price, and at present the average days on the market is a low 59.

What this means is that it’s more important than ever to know what you want, need and can afford prior to the hunt for a new home. Making a quick decision can be necessary in today’s faster paced times in order to get the home you want. With fewer listings and shorter days on the market for most homes, there’s no longer the luxury of “let me think about it for a couple of days”.

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 December 2015 PPAR report. Please click here to view the detailed 20-page report, including charts. If you have any questions, as always, just give me a call.

In comparing December 2015 to December 2014 in PPAR:

Single Family/Patio Homes:

New Listings are 772, Up 14.2%
Number of Sales are 1105 Up 26.6%
Average Sales Price is $266,553, Up 4.3%
Median Sales Price is $239,900 Up 6.6%
Total Active Listings are 2,133, Down 17.9%

Condo/Townhomes:

New Listings are 96, Down 2.0%
Number of Sales are 158, Up 26.4%
Average Sales Price is $164,540 Down 7.0%
Median Sales Price is $159,430, Up 6.3%
Total Active Listings are 187, Down 38.3%

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

Median Sales Price Median Sales Price

December 2015 December 2014

Black Forest $417,000 $405,000

Briargate $285,000 $290,000

Central $172,000 $184,000

East $207,450 $187,000

Fountain Valley: $215,000 $201,249

Manitou Springs: $307,000 $227,500

Marksheffel: $252,500 $255,000

Northeast: $235,500 $207,750

Northgate: $275,003 $352,706

Northwest: $310,250 $305,000

Old Colorado City: $223,000 $207,500

Powers: $229,000 $228,750

Southwest: $249,000 $230,000

Tri-Lakes: $394,000 $348,000

West: $239,950 $179,750

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

LOCAL FORECLOSURES AT 14-YEAR LOW IN 2015

The Gazette, 1.6.16

The robust housing market, along with an improving economy and job market conditions, helped foreclosures in Colorado Springs fall to a 14-year low in 2015. Last year’s foreclosure total dropped 19.5% from 2014.

Other cities in Colorado have experienced an even greater decline in foreclosures. However, those cities, such as Denver, have seen home prices rise very quickly which can translate to more equity that can help those who lose a job or experience financial problems.

The fact that we have had a low foreclosure rate, coupled with a slower increase in property values, actually is a good factor because homes in Colorado Springs are still affordable and areas such as Denver are starting to price out some looking for homes there.

In fact, I’m finding that some buyers in our area are actually commuting to jobs in Castle Rock or Denver due to our cost of living, housing, and public education, among other reasons.

RENTAL MARKET RATES RISING FAST

The Wall Street Journal, 1.7.16

Rental rates for apartments increased faster last year than in any time since 2007, causing concern about affordability for renters.

Rising 4.6% in 2015, average rental rates nationally had their biggest gain since before the recession according to a report by Reis, Inc., a real-estate researcher. The average apartment rent now is nearly $1,180, up from $1,125 a year ago.

And a report from Dallas-based apartment research firm Axiometrics, Inc. showed that rents increased 4.7% in the fourth quarter of 2015 compared with the same quarter a year earlier. This is the strongest year-end performance since 2005.

Rents have risen steadily for six consecutive years due in part to tough lending standards for homebuyers and also because of a shortage of apartments available for middle-income renters. Homeownership in the third quarter 2015 was 63.7%, close to a 30-year low.

Higher rents will make it difficult for young people to save for down payments and will force them to rent for longer periods of time. According to the National Association of REALTORS^®, the percentage of first time buyers is at its lowest level in three decades.

The demand for investment property homes is increasing, especially with the volatility of the stock market and the rising median home prices. If this is something you are considering, it’s a good time to check out your options. Investment property and being a landlord is not for everyone, but if it’s something you have thought about, why not give me a call and let’s discuss whether this might be a good idea for you.

DELAYS IN CLOSINGS HURT HOME SALES SLIDE NATIONALLY

The Wall Street Journal, 12,23.16

What is “normal” nationally does not always translate to “normal” in our market, but I wanted to let you know how the “new” mortgage lending rules which took effect in October are affecting sales not only nationally but right here in our own backyard.

Nationally, home sales plummeted in November, caused by a dwindling supply and the new mortgage rules. The NAR blamed the bulk of this decline on closing delays caused by the new rules implemented by the Consumer Financial Protection Bureau in October.

The new rules, prompted by the 2010 Dodd-Frank financial law, are meant to help consumers better understand the terms of their mortgages before they sign. I have explained this in detail in prior editions of this e-Newsletter. The biggest problem I’ve seen so far has been due to the additional days added to the time it takes for a home to close.

Whether you are buying or selling, let this be fair warning that what was “normal” in the past is no longer so—and getting to the closing table is going to take longer than it used to. Unless it’s an all cash deal, you can expect delays because of these new regulations.

FIVE real estate TRENDS THAT WILL DOMINATE 2016

RealtorMag, 12.22.2015

While 2015 may have marked the best year for housing since 2007, a recent real estate forecast by realtor.com^® indicates that the market will be even better this year. The job market is a significant driver behind this rosy picture because increased and better employment will add to consumers’ wallets and allow them to purchase a first home or sell and trade up.

Highlights from this survey:

‘Normal’ is coming. Expect a healthy growth in home sales and prices—a slower pace than in 2015. According to Jonathan Smoke, realtor.com^®’s chief economist, “This slowdown is not an indication of a problem—it’s just a return to normalcy. We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.”

Generational buying trends shape up. 2016 may finally be the year that young adults show more presence on the housing market. Millenials represented nearly 2 billion sales in 2015—one-third of homebuyers. They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time homebuyers this year.

Two other generations will also play a big part this year--financially recovering GenXers and older baby boomers who are entering retirement. “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both buyers and sellers,” Smoke notes. “GenXers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

New-home construction focuses more on affordability. Recently builders have been faced with higher land costs and concerns about the demand of the entry-level market and have turned to constructing more higher-priced homes. This caused new-home prices to rise significantly faster than existing-home prices. In 2016, they will likely shift to more affordable products to cater to the entry-level market. “We are already seeing a decline in new-home prices for new contracts signed last fall,” noted Smoke. “In addition, credit access is improving enough to make the first-time buyer segment more attractive to builders.”

Higher mortgage rates. Mortgage rates will likely be volatile in 2016. The recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher this year than the historical lows they have been at in recent years. The 30-year fixed rate mortgage will likely end 2016 about 60 basis points higher than today’s level. “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says. “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.” Markets with the highest home prices will see the effects from the higher rates the most.

Rents to go up even higher. As previously discussed, rental rates are skyrocketing and are only likely to go up in 2016. “Rents are accelerating at a more rapid pace than home prices, which are moderating,” says Smoke. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings and lack of documentable stable income of the kinds necessary to qualify for a mortgage.”

I THOUGHT YOU MIGHT WANT TO KNOW…

Today I will be speaking before the Colorado Springs City Council. I have been asked to address them about the “State of Housing” in our City and will be doing the same for the County Commissioners next Tuesday.

I have gathered some very interesting material concerning what motivates folks to make a move, including cost of living, work/life balance and more. One of the key points in this material is the fact that “access to affordable housing was the most import feature of a livable community”. This was even more important than a potential job for those wanting to relocate.

If you are interested, you can read several of the supporting materials below. You will no doubt find them as interesting as I did. You can click on the titles listed to read the article

“Social Benefits of Homeownership”

“What Makes Us Happiest About The Places We Live”

“The World’s Smartest Cities”

Happy Reading…and again, I’d like to wish you a very Happy, Healthy and Prosperous 2016.

HARRY’S JOKE OF THE DAY