Real Estate Information Archive

                                                           

February 9, 2015

HARRY’S BI-WEEKLY UPDATE

                        A Current Look at the Colorado Springs Residential real estate Market

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

                                      

JANUARY LOCAL STATISTICS REMAIN VERY POSITIVE

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

January in the Pikes Peak Area proved that the robust housing market appears to be continuing despite cold weather and post-holiday conditions.  Local residents are responding in a similar manner to folks all around the country as they realize better economic conditions than we’ve seen in several years.

The numbers here indicate that the combination of historically low mortgage rates and homes priced to sell are continuing to fuel this growth.  Listings in both categories continue to dwindle as many renters are finding a way to become homeowners, some for the first time, and many with the help of new low down payment requirements.

Here are some highlights from the monthly PPAR report.  Please click here to view the detailed 10-page report.  If you have any questions, please give me a call.

In comparing January 2015 to January 2014 in PPAR:                      

                        Single Family/Patio Homes:

• New Listings are 1082, Down 10.9%
• Number of Sales are 636, Up 6.7%
• Average Sales Price is $261,310, Up 11.4%
• Median Sales Price is $235,250, Up 11.0%
• Total Active Listings are 2,470, Down 23.5%

                        Condo/Townhomes:

• New Listings are 164, Up 16.3%
• Number of Sales are 99, Up 30.3%
• Average Sales Price is $176,602, Up 2.8%
• Median Sales Price is $142,000, Up 6.8%
• Total Active Listings are 297, Down 15.6%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $399,950                              $381,200

Briargate                                  $320,375                             $332,734        

Central                                     $182,500                              $209,461

East                                          $186,400                              $195,890

Fountain Valley:                      $218,169                              $217,889

Manitou Springs:                    $171,000                              $171,000

Marksheffel:                             $246,000                              $252,813

Northeast:                                $213,000                              $218,546

Northgate:                                $368,000                              $409,786

Northwest:                               $279,700                              $309,155

Old Colorado City:                  $225,000                              $262,746

Powers:                                    $235,250                              $237,317

Southwest:                              $234,000                              $336,791

Tri-Lakes:                                $412,000                              $432,866

West:                                        $201,000                              $330,971

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

 

A LOOK BACK TO AUGUST 1974… MUCH LIKE TODAY IN ALL BUT THE NUMBERS

Business Week, 8.10.74

While going through my archives, I came across an article from August 1974—more than 40 years ago.  It was published in the Personal Business section of the old Business Week magazine and I thought you might find it as interesting as I did, both then and now.

The section titled “It Doesn’t Pay to Wait to Buy a House”, talks about how for those who might have been scared out of the housing market due to tight money and high interest rates, then would be the time to take a look at what a new home would cost “today”.  It states:          

“According to the National Association of Home Builders, the cost of the average single family home is $35,800 this year compared with $25,600 in 1969.  And mortgage rates have risen to 9.5% to 10% today against 8% five years ago.”

What can I say?  I’ve always been an advocate of “the time to buy is NOW”, and this article backs me up perfectly.  You can no longer find a home for those kind of prices, but today’s mortgage interest rates are historically low.  Who could have imagined back in 1974 that in 2015 we would see 30-year fixed rates as low as 3.38%? 

Those interested in a little “blast from the past” can view the Business Week article by clicking here.  I know you’ll find it interesting.  Just as interesting as those folks 40 years from now who will look back and not believe that we could actually finance a home for under 4%.

One thing I can tell you for sure...the interest rates aren’t going to stay this low forever.  With the economy improving along with the job market, the Fed is sure to raise the cost of money to hold back inflation and with that--up goes the mortgage interest rates. 

As you can see from the PPAR statistics, the number of available homes is continuing to decline as folks realize the current low rates aren’t a “sure thing” for the future.  While there are fewer listings, there are always homes available to meet most needs, wants and budgets.  If you are still on the fence, I wouldn’t advise waiting a lot longer.  Why not give me a call today and let me run the numbers and see if we can make it the “right time” for you.  I can be reached at 598.3200 or by email at Harry@HarrySalzman.com .

 

HOMEOWNERSHIP IS AT LOWEST RATE IN TWO DECADES

LA Times, 2.15, The Gazette 2.1.15

According to the U.S. Census Report, the national home ownership rate fell last quarter to the lowest level in two decades. 

Despite the housing recovery of recent times, the ownership rate has been on a steady decline since the housing boom of the last decade. This has been attributed to families struggling to purchase a home because of home prices rising faster than incomes in recent years, along with tighter lending standards.

Analysts are hopeful that the housing market will pick up again this year after a slow 2014.  Job growth in 2014 was the strongest since 1999 and mortgage interest rates are still low.  On top of that, the government is taking steps to ease lending standards, with new programs from both Fannie Mae and Freddie Mac intending to back loans with down payments as low as 3 percent.

So, once again, if you or anyone you know has been left out of home ownership in recent times, now could be the perfect time for getting back in the market or purchasing a home for the first time.  Just give me a call and let’s find out if we’ve got the answer to your home ownership dreams.

 

A FEW HEADLINES FROM REALTORMag THIS WEEK…

• Mortgage Rates Fall Again.  Average rates fell again for the week ending February 5:

--30-year fixed rate mortgages averaged 3.59 percent

--15-year fixed-rate mortgages averaged 2.92 percent

--5-year hybrid adjustable-rate mortgages averaged 2.82 percent

--1-year ARMs averaged 2.39 percent

 

• Why Homebuyers Need to Act Now.  Homebuyers need to move fast if they want to spend less, according to Jonathan Smoke, chief economist at realtor.com.  “Delayed purchases will only result in higher monthly payments as prices and rates rise,” Smoke wrote.  Realtor.com is forecasting that affordability may decline as much as 10 percent over the year.

“Right now, the Fed is using the word ‘patient’ to describe its approach to picking the time to raise the target rate,” Smoke notes.  “However, when the Fed ‘loses patience’, rates will go up at least 20 to 40 basis points in anticipation of the target rate officially going up…so, Buyers beware:  The clock on these low mortgage rates may be ticking.”

 

• Millennials Move Toward Home Ownership.  Young couples and singles in their late 20’s and early 30’s are making a belated entry into the home-buying market according to several recent housing reports.  Rising rates, moderating home prices and new, lower down payment requirements are providing good reasons for these individuals to now enter the market. 

Jonathan Smoke has called 2015 the “year of the millennial” in real estate.  He says that home Sellers should be encouraged by this, particularly those who own affordable home and are looking for a long-over-due upgrade.  With the move by many lenders to permit smaller down payments on home purchases, more millennials will likely make a move and that means home Sellers “who’ve been sitting on equity in entry-level homes can finally upgrade to bigger homes and retirement homes.”

 

HARRY’S JOKE OF THE DAY    (HAPPY VALENTINES DAY)

                 

 

                    

 

 

 

 

 

                                                           

January 26, 2015

HARRY’S BI-WEEKLY UPDATE

                                   A Current Look at the Colorado Springs Residential real estate Market

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

                                      

     

THE AMERICAN DREAM OF HOME OWNERSHIP IS ALIVE AND WELL

The housing news, both on a national and local front, has been very positive and from the looks of it, more and more folks will be able to afford the home of their dreams.  Many will see greater appreciation in their current homes and first-time buyers are being afforded a number of options to make it easier to switch from renting.

All sources I’ve seen are predicting a strong housing market for 2015.  From NAR Chief Economist, Lawrence Yun...to Freddie Mac…to our local Southern California Economic Forum’s Director, Tatiana Bailey...the news that’s coming my way has all been positive. 

This is not “wishful thinking” from an eternally positive Broker/Owner—namely me.  This is reality—with all the respected industry economists agreeing.  There’s no better time than now to get off that fence and make your personal dreams a reality. 

With interest rates remaining at historic lows and current home appreciation on the rise, it’s time to put the equity you’ve built to work for you.  There are too many options to go into here, but why not give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let me help you figure out what is the best plan for your particular wants, needs and budget. 

 

A LOOK AT SOME OF THE HOUSING EXPECTATIONS FOR 2015, LOCAL AND NATIONAL

From UCCS, College of Business and the Southern Colorado Economic Forum:

I’d like to share with you a presentation by Tatiana Bailey, Ph.D., Director of the Southern Colorado Economic Forum.  She spoke to the Pikes Peak Area Realtors (PPAR) on January 9, 2015 and I asked her permission to share the slide overview with you.  

The presentation includes information on both the national level, some of which I’ve shared with you previously, and a look at the local Pikes Peak area real estate market. 

Please click here for a look at some exciting statistics and projections.  If you have any questions, please give me a call.

 

From the National Association of Realtors:

The infographic below is from a video of NAR’s Lawrence Yun talking about his 2015 housing market expectations.  He expects existing-home sales to rise about 7 percent in 2015 behind a strengthening economy, solid job gains and a healthy increase in home prices.

 

                       

 

From Freddie Mac’s “2015 U.S. Economic and housing market Outlook for January”:

Realtor Mag, 1.21.15,  DS News, 1.21.15

Freddie Mac economists note that mortgage rates continue to remain below expectations, and they predict that mortgage rates will remain low at the beginning of 2015, staying around 4 percent for at least the first two quarters of the year.  Last week, mortgage rates dipped to a 20-month low, with the 30-year fixed-rate mortgage rate plunging to a 3.66 percent national average and the 15-year fixed-rate mortgage dropping to 2.98 percent.

“We…expect these low mortgage rates to help the growing purchase market continue to expand and reach the highest levels we’ve seen since 2006,” the economists noted.

But, as mentioned earlier, NAR’s Lawrence Yun predicts that mortgage interest rates could average around 5 percent—or higher—by the end of this year.

Buyers who have been sidelined due to high monthly rents preventing them from saving for a down payment on a home should be in a better position with new programs aimed to assist them in becoming homeowners.

Freddie Mac, along with Fannie Mae, believe its new announcement of offering mortgages with down payments as little as 3 percent, along with the FHA’s recent announcement that it will cut its premiums for new and refinancing borrowers by a half percentage point will help increase mortgage availability to first-time home buyers.

Economists also note in this report that home prices will likely rise by 3.5 percent this year.  Increased wages in the labor market will give consumers greater confidence.  The National Federation’s Independent Business Index for December showed that small businesses expect to raise employee compensation to the highest level since 2006.

In concluding, Frank Nothaft, Freddie Mac’s Chief Economist said, “On balance there are a lot of positive opportunities in the U.S. economy at the start of the year, and the real question is whether or not households and businesses will be able to seize these opportunities and make the most of them.  The reprieve in interest rates and drop in gas prices should help to spur economic growth.  Until rates start to rise later in the year, housing markets should respond positively, and we anticipate increases in home sales and continued improvement in construction activity.”

 

Down Payments Get Smaller

The Wall Street Journal, 1.25.15

More lenders are lowering down-payment requirements, allowing borrowers to commit 3 percent—or less—of a home’s purchase price to get a mortgage.  Many had been requiring at least 20 percent since the recession began. 

Some lenders are also waiving mortgage-related fees, and more are allowing down payments to be made by other parties, such as the borrower’s family. 

These deals are aimed at buyers with good credit scores and a steady income who have been unable to save enough for a sizable down payment.   In some cases, to qualify, borrowers will need a higher credit score and less debt relative to their income than is usually required, as well as having savings after the home purchase equal to at least 12 months of mortgage payments. 

Borrowers who want to get a mortgage with a particular lender could ask if they would allow a lower down payment than what is officially offered. 

In looking for loans, borrowers need to compare costs, including the interest rate, whether they have to pay any upfront fees to get that rate and what their total costs to get the loan will be.  A lower interest rate might not be such a good deal if it requires a larger out-of-pocket upfront expense.

So… what does all this mean to you?  To begin with, NOW is a great time to sell and trade up or buy for the first-time or investment purposes.  However, with all the options available in mortgage lending and in deciding what is best for your particular situation—it’s more important than ever to seek the advice of a reputable, knowledgeable real estate Professional. 

That’s where I come in.  As you can see from this eNewsletter, I do the homework so that you don’t have to.  I can help you determine the best housing situation and best lender for YOU.  As stated in the Freddie Mac report, it’s up to you to seize the possibly once-in-a-lifetime opportunities in the housing market.  In order not to miss out, give me a call and let’s see if we can make this positive market work for you.

 

5 FINANCIAL REASONS TO BUY A HOME

keeping current matters, 1.21.15

Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University presented the top five financial benefits of homeownership in his paper entitled “The Dream Lives On:  the Future of Homeownership in America”.

I’ve mentioned these before, but with the market heading in such a good direction, I felt it important to reemphasize their importance. 

Here are the five reasons, each with an excerpt from the study:

1. Housing is typically the one leveraged investment available.  “Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money.  As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor.  Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity.  With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

 

2. You’re paying for housing whether you own or rent.  “Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

 

3. Owning is usually a form of “forced savings”.  “Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

 

4. There are substantial tax benefits to owning.  “Homeowners are able to deduct mortgage interest and property taxes from income.  On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

 

5. Owning is a hedge against inflation.  “Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

 

Bottom line?  Homeownership not only makes sense from a social or family reason, it also makes good financial sense.

 

HARRY’S JOKE OF THE DAY  (courtesy of Tatiana Bailey, Ph.D.)

                

 

 

 

 

                                    

January 12, 2015

HARRY’S BI-WEEKLY UPDATE

                     A Current Look at the Colorado Springs Residential real estate Market

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

                                    

THE NEW YEAR IS STARTING OFF VERY POSITIVE FOR THE housing market

I hope everyone had a happy, healthy holiday season.  From everything I’ve been reading it appears that the housing market is off to a great start.  And as you will read, 2014 ended on a strong not and predictions for 2015 remain very positive.  This is great news for both Buyers and Sellers, and I’m happy to share some of the news with you.  As always, I’ll keep you abreast of all the happenings in real estate during 2015, both on local and national fronts.  So let’s get started.

 

DECEMBER LOCAL STATISTICS ARE POSITIVE

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

Despite the unusually cold weather and the busy holiday season, December still proved that the housing recovery is continuing to remain strong in our area.  The total number of Single Family/Patio Homes sold in the Pikes Peak area during 2014 was 11,197 for a 3.8% increase year over year from 2013.  This represents the highest number of single family/patio homes sold since 2006—before the recession.  Sales of Condo/Townhomes were 1,474 in 2014, for a 6.6% increase from 2013. 

These numbers indicate that the combination of historically low mortgage rates and homes priced to sell are helping fuel this growth.  The number of listings in both categories continues to dwindle as many renters are finding a way to become homeowners, some for the first time.

Here are some highlights from the monthly PPAR report.  Please click here to view the detailed 18-pages which includes both the monthly and annual reports.  If you have any questions, please give me a call.

In comparing December 2014 to December 2013 in PPAR:                    

                        Single Family/Patio Homes:

• New Listings are 676,  Down 9.1%
• Number of Sales are 873, Up 28.4%
• Average Sales Price is $255,652, Up 7.3%
• Median Sales Price is $225,000, Up 6.5%
• Total Active Listings are 2,599, Down 19.4%

                        Condo/Townhomes:

• New Listings are 98, Up 18.1%
• Number of Sales are 125, Up 26.3%
• Average Sales Price is $176,950, Up 18.8%
• Median Sales Price is $150,000, Up 15.4%
• Total Active Listings are 303, Down 12.9%

 

SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price               Average Sales Price

Black Forest                             $405,000                              $487,052

Briargate                                   $290,000                             $312,823        

Central                                      $184,000                              $208,810

East                                           $187,000                              $193,603

Fountain Valley:                       $201,249                              $204,179

Manitou Springs:                     $227,500                              $227,500

Marksheffel:                             $255,000                              $273,664

Northeast:                                 $207,750                              $227,881

Northgate:                                $352,706                              $360,356

Northwest:                                $305,000                              $333,365

Old Colorado City:                  $207,500                              $235,432

Powers:                                     $228,750                              $232,899

Southwest:                               $230,000                              $285,060

Tri-Lakes:                                 $348,000                              $400,549

West:                                         $179,750                              $212,500

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

 

2014:  A YEAR OF JOBS, RECORD-LOW INTEREST AND TIGHT INVENTORY SETS THE STAGE FOR 2015 GROWTH

RisMedia,, 12.24.14, Realtor.com, 12.24.14,  Relator Mag,, 12.24.14, 1.8.15, & 1.9.15

Realtor.com’s “Top 10 real estate Trends of 2014” nationally:

1. Improving economic fundamental.  Strong consumer confidence returning with higher GDP (Gross Domestic Product) and an influx of new jobs during the latter half of the year.

 

2. Historically low mortgage rates continue.  Mortgage rates declined despite the end of quantitative easing.

 

3. Deceleration of abnormal home price gains or return to normal price.  After several years of abnormally high levels of home price appreciation, price increases in 2014 moderated and we are now experiencing increases consistent with long-term historical performance.

 

4. Decline of distressed sales.  Foreclosures and short sales declined throughout the year and while total home sales decreased in 2014, normal (non-distressed) home sales increased over 2013.

 

5. End of the era of major investors active in purchases.  Large scale purchase activity by major investors declined as the number of distressed properties dropped.  This enabled more room for traditional first-time home buyers.

 

And,  “Factors Holding Back Recovery”:

1. Tight credit standards and limited mortgage availability.  Despite historically low rates, many households were prevented from capitalizing on mortgage access due to new lending and qualification regulations that took effect in January 2014. 

 

2. Tight supply of inventory.  While total inventories increased as the year progressed, supply did not outpace demand.  Monthly supply of new homes and existing homes remained beneath normal levels and days on the market was down year over year.

 

3. Depressed levels of first-time buyers.  The share of first-time buyers fell to the lowest level in over twenty years according to NAR.  “But the first-time buyer share is showing signs of modest improvement by the year-end,” said Lawrence Yun, NAR Chief Economist.  Federal policy actions, such as revised regulations for lenders and new low down-payment programs introduced in December are anticipated to have a positive impact in 2015.

 

4. Record levels of renters and ever-increasing rent prices.  Continued decline in home ownership rates resulted in record numbers of renting households.  Rent increases became an inflationary concern in 2014, and looking ahead, the pace of these increases are not slowing down.

 

5. Lack of recovery in homebuilding and low share of new home sales.  Single family starts barely increased in 2014 over 2013.  New home prices increased substantially again in 2014, revealing that higher priced product is limiting the demand.

 

Housing Forecast from NAR:  “HOME SALES ONLY GOING UP FROM HERE”

NAR is predicting that existing home sales will likely rise about 7 percent this year, as a strengthening economy and job growth leads to a healthier market.

Lawrence Yun said, “Home prices have risen for the past three years cumulatively about 25 percent, which boosts confidence in the market and traditionally gives current home owners the ability to use their equity buildup as a down payment towards their next home purchase.  Furthermore, first-time buyers are expected to slowly return as the economy improves and new mortgage products are made available in the marketplace with low down payments and private mortgage insurance.”

Several “speed bumps” that could still jeopardize the pace of the housing markets recovery include the anticipated rise in mortgage interest rates that are expected this year, Yun added.  And the fact that many homeowners have now locked in some of the lowest mortgage rates in history in recent years and may be hesitant to give up their low financing rate to move.  Also, lenders are being slow to ease underwriting standards to more normalized levels.

Yun is forecasting a growth in home prices, but at a more moderate pace than seen in recent years.  He expects it to moderate between 4 percent and 5 percent growth in 2015. 

 

Realtor.com’s “2015 Housing Forecast: Stage Set for the Return of First-Time Home Buyers”

Among the key developments forecasted is that first time buyers are set to return to the market in 2015.  “In 2015, increases in employment opportunities will empower younger buyers to return to the market and fuel the continued housing recovery,” said Jonathan Smoke, chief economist for realtor.com.  “If access to credit improves, we could see substantially large numbers of young buyers in the market.”

Realtor.com’s “Top 5 Housing Predictions for 2015”:

1. Millennials will drive household formation.  Households headed by millennials will see significant growth as a reflection of economic gains.  They will also drive two-thirds of household formations over the next five years.  Additional jobs and household formations will be the two key factors driving first-time home buyer sales.

 

2. Existing home sales will increase +8%.  Existing home sales will grow as more buyers enter the market motivated by a clear belief that both rates and prices will continue to rise.  While the majority of housing activity in 2015 will be driven by baby boomers preparing for retirement, millennials will account for 65 percent of first-time buyer sales.

 

3. Home prices will gain +4-5%.  Low inventory levels and demand by improved employment opportunities will push home prices up in 2015.  While first-time buyers have many economic factors working in their favor, increasing home prices will make it more difficult to get into high priced markets.

 

4. Mortgage rates will end the year at 5%.  Rates will increase in the middle of 2015, as the Federal Reserve increases its target rate by at least 50 basis points before the end of the year.  30-year fixed-rate mortgages will reach 5 percent by the end of 2015.  One year adjustable rate mortgages (ARMs) will rise minimally.  While still at historic lows, rate increases will affect housing affordability for first-timers trying to break into the housing market and will be another factor pushing them to less expensive locales.

 

5. Home affordability will decrease 5-10%.  Affordability will decline in 2015 based on home price appreciation and increasing mortgage interest rates.  This decline will be somewhat offset by increasing incomes.  When considering historical norms, housing affordability will continue to remain strong next year.

MORTGAGE RATES KICK OFF 2015 AT A 20-MONTH LOW

Borrowing rates moved even lower last week, with the 30-year fixed-rate mortgage averaging 3.73 percent, its lowest average since May 2013. 

According to Frank Nothaft, Freddie Mac’s chief economist, “Mortgage rates fell to begin the year as 10-year Treasury yields slid beneath 2 percent for the first time in three months.” 

Again, many economists have predicted that mortgage rates will rise sometime this year, with the 30-year fixed-rate mortgage likely reaching the upper 4 percent or 5 percent range by the end of the year.

So, what does all this mean to you?  Well, once again, now is the time to sell and trade up or buy for the first time or for investment purposes. 

If you’ve been waiting for the holiday season to be over and wondering what 2015 has in store for the real estate Market, my suggestion is to wait no longer.  Inventories are not getting any larger which is a plus for Sellers, but could hamper your buying expectations.  However, there are always homes available to suit most of a Buyer’s needs and wants.  If you are considering a move and wondering what’s available, please give me a call at 598-3200 or email me at Harry@HarrySalzman.com and let’s get the ball rolling.  I’ll be happy to help you determine if indeed, the time is “right” for your personal family situation.

 

FHA LOWERS ITS MORTGAGE COSTS

Realtor.mag, 1.8.15

The Federal Housing Administration is reducing its annual mortgage insurance premiums by 0.5% in a move to “expand responsible lending to creditworthy borrowers,” the While House said in a statement last Wednesday. 

FHA also said it would take added steps over the next few months to “cut read tape and clarify lending standards” in reducing mortgage costs for hundreds of thousands of creditworthy borrowers, according to the White House. 

This move comes after several calls from industry trade groups, associations and members of Congress urging the agency to lower its insurance premiums, which were increasingly blamed for sidelining thousands of would-be buyers.  FHA-backed loans allow buyers to put down as little as 3.5 percent on the purchase price, and they are a major financing resource for first-time buyers. 

FHA’s mortgage insurance premiums will be reduced from 1.35 percent to 0.85 percent.  The reduction in premiums on mortgages could save an average borrower $1,000 a year on a $200,000 loan, approximately $83 monthly. 

This is a big deal for hundreds of thousands of buyers and I will keep abreast of the status on this and let you know as soon as it takes affect.  Anyone wishing additional information, please feel free to call me to discuss how it might affect you on a home purchase and loan. 

 

HARRY’S RESOLUTIONS FOR 2015  (Feel free to make them yours)

#1.  Learn to Better Manage My Time

 

#2.  Do My Part to Help the Environment

 

#3.  Start Saving Better For the Future (Broncos fans take note)

 

#4.  Make Sure to Use Sunscreen

 

#5.  Try to Keep a Positive Attitude

 

 

                                                            

December 22, 2014

 

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.                              

                            

 

Wishing you and yours safe and Happy Holidays and a very Happy, Healthy, Prosperous New Year, too.

-Salzman real estate Services, LTD.

 

Look for our Regular e-Newsletter to resume on January 12, 2015

                                                            

December 8, 2014

 

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.

                                   

HOME BUYING AND SELLING IS A “BALANCING ACT”

One of the questions I’m asked most often is “When is the “right” time to Buy or Sell a home?”  My response is normally the same—“It’s always the right time.” 

There are so many factors entering into the home buying and selling equation that are different for each individual situation.  Very few of us ever get to buy at the bottom of the market and Sell at the top, let alone making sure to find the lowest interest rate available at that time.  Most home decisions are based on needs, such as up-sizing or downsizing or moving to a new neighborhood or city.  You can’t always do that at the exact time you might want.  And even if you can, the market conditions and mortgage interest rates are in a constant flux of change. 

So rather than worry about the “right” time for buying or selling, consider what is the “right” time for you personally and what it’s going to take to make you happy.  As long as you and your family are happy with your home decisions, then it’s always going to turn out “right”.

 

NOVEMBER LOCAL STATISTICS

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

I’m happy to share with you the fact that the Pikes Peak area has been very fortunate in the number of recent residential closings.   Sales in November 2014 were more than 10% over last November.  Some of this is attributed to the fact that people like to be settled prior to December so they can celebrate the holidays in their “new” home.  Another factor is the still historically low mortgage interest rates.

The average and median sales prices are approximately the same as last November.

The number of listings is down about 15% from the same time last year and some of that might be due to Thanksgiving being so late in the month.  There is usually a group of Sellers who wait until after the holiday season to put their homes on the market. 

Positive statistics for El Paso County only as of November 30, 2014:

• There were 2609 Active Listings
• 699 were sold
• Those were sold at 98.3% of the Listing Price
• The average days on the market was 89

This is VERY positive and indicates that both Buyers and Sellers are aware that interest rates are not going to stay this low forever and that mortgage lending is going to have even more new regulations in the coming months that can slow down the closing process.

Here are some highlights from the PPAR report.  Please click here to view the detailed 10-pages .  If you have any questions, please give me a call.

In comparing November 2014 to November 2013 in PPAR:

                                              Single Family/Patio Homes:

• New Listings are 783, Down 15.1%
• Number of Sales are 782, Up 10.3%
• Average Sales Price is $245,488, Down 1.0%
• Median Sales Price is $216,750, Down 1.5%
• Total Active Listings are 3,134, Down 14.8%

                        Condo/Townhomes:

• New Listings are 118, Up 25.5%
• Number of Sales are 122, Up 8.9%
• Average Sales Price is $156,153, Down 8.9%
• Median Sales Price is $136,212, Up 0.9%
• Total Active Listings are 346, Down 11.1%

 

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $433,750                              $404,237

Briargate                                  $271,672                              $292,547        

Central                                      $163,950                              $170,352

East                                           $179,900                              $191,414

Fountain Valley:                       $184,500                              $192,714

Manitou Springs:                     $310,000                              $331,214

Marksheffel:                             $313,116                              $299,941

Northeast:                                $213,000                              $237,815

Northgate:                                $332,041                              $355,332

Northwest:                               $308,500                              $335,188

Old Colorado City:                  $167,450                              $201,437

Powers:                                    $220,000                              $218,806

Southwest:                              $260,282                              $364,937

Tri-Lakes:                                $360,500                              $384,232

West:                                         $297,500                              $312,733

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

 

5 MISTAKES FIRST-TIME HOME BUYERS MAKE

Realtor Mag 2014

First-timers are eager to jump into home ownership but real estate experts say they see them committing the same mistakes time and time again.  Here are some of the most common ones, as identified by experts in a CNBC article:

 

1. They are unprepared to compete against all-cash offers.  Buyers need to be ready to make a quick decision if the housing market is heating up.  Home buying is a lot like finding a job—it takes a lot of time to prepare—so that when the deal you want comes along, you’re ready to pounce on it.  Buyers should save as much as possible for a down payment, repair any credit blemishes and get preapproved for a loan to put themselves in a better position to compete.

 

2. They place a car ahead of the home.  Lenders are going to look at an applicant’s debt-to-income ratio to determine how well they can afford a mortgage.  It is much easier to own a home if you can show a history of saving and not have gotten into too much debt.

 

3. They place too much emphasis on online loan information.  Online sites can be a great place for obtaining general information about loan products and estimated costs, but visiting with a lender face-to-face will make the process less mysterious and help answer questions that inevitably arise.  It is important to talk to several lenders in order to get a feel for the various types of loans available and determine what fees, closing costs, etc. are charged by each. 

 

4. They bank too much on online home values.  Some real estate websites are giving Buyers a false sense of home values, the CNBC article notes.  If a Buyer believes that the actual value of the house is one thing but it is actually something more, or less, then it’s a disservice to the client.  You need to spend time with someone who understands the market, who’s been there day in and day out.  You can get the best feel by working with a competent, experienced Real Estate Broker and by driving around neighborhoods to get a sense of things about homes that may be less valuable or even more valuable than the perceived online value.

 

5. They forgo the home inspection.  About 10 percent of homes recently purchased weren’t inspected by a home inspector, according to Bill Loden, president of the American Society of Home Inspectors.  Some Buyers were trying to cut down on costs but defects later discovered could potentially result in the loss of thousands of dollars.  “It takes a trained eye to see the problems that can exist in a home,” said Loden.  “The inspection can also give the first-time Buyer a bit of schooling on the house and how to maintain it.”  Buyers also should be prepared to ask questions that are community specific and the home may require additional inspections from a specialist to rule out potential problems.

 

If you know a family member or co-worker considering home buying for the first time, please share this information in order to help them avoid the pitfalls listed.  Better yet—have them call me at 598.3200 or email me at Harry@HarrySalzman.com and I can provide them with all the necessary steps to prevent additional stress and help them make their dream a reality.

 

HARRY’S HUMOR OF THE DAY

 

  

October 27, 2014

 

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.

 

                                                  

 NOTE TO SELLERS -- “TAKE TWO TYLENOL AND CALL ME IN THE MORNING”

The Wall Street Journal, 10.24.14

An article to be published next year in the Journal of Experimental Social Psychology is entitled, “Can Acetaminophen Reduce the Pain of Decision-Making?”.  It builds on previous work that shows emotional pain can overlap with the physical kind. 

This study caused Stefanos Chen, a columnist for The Wall Street Journal, to wonder if the painkiller Tylenol (brand name for Acetaminophen) could compel homeowners to reduce their asking price.

I, of course, read this article and couldn’t help but smile.  I thought you might enjoy a brief synopsis. 

According to Nathan DeWall, co-author and professor of psychology at the University of Kentucky, “when people talk about decisions they have to make, they talk in terms of pain.”  Consider the neighbor who says that selling his house “hurt”. 

An experiment of 95 undergraduate students showed, as predicted by researchers, that “loss aversion”, a decision-making theory that people would much rather avoid losses than acquire gains,  can be proven scientifically.  Loss was found easier to accept by those taking acetaminophen than those who did not. 

“It was easier for them to give up something they owned—and that’s really hard for people to do,” Prof. DeWall said of the group on acetaminophen. 

“It’s the same principle at play when a sentimental homeowner balks at an agent’s comparable sales figures and demands a higher price for his home,” he added. 

The study certainly offers insight but not all the answers, he said.  “I’m not saying that if you take acetaminophen people are going to stop fighting with their real-estate agents.”

The moral of the story?  When you and your real estate Agent are at odds over the pricing of your home or the thought of lowering the asking price—try Tylenol—and see if it helps.  It certainly can’t hurt!

 

RELAXED MORTGAGE LENDING RULES, LOWER DOWN-PAYMENTS, IN THE PIPELINE

The Wall Street Journal, RealtorMag, The Gazette, HousingWire, 10.14

So many stories this last week concerning new rules and regulations for home financing.  This past year has been tough for those looking for mortgages, especially first-time borrowers, in part due to the Dodd-Frank Act which went into effect January 10, 2014.  This regulation was intended to help financial institutions avoid sending the housing market into another recession due to “risky” mortgages made to borrowers who had marginal credit and little documentation to justify the loans. 

Unfortunately, as I and many others predicted, enforcement of the new regulations hampered many borrowers from obtaining a mortgage and the housing market slowed down substantially.  

Several things are in the pipeline and include:

• An agreement between Fannie Mae and Freddie Mac, which could lower barriers and restrictions on borrowers with weak credit.  This would help lenders protect themselves from claims of making bad loans and would require a 3% down-payment (as was once the case) rather than the 5% minimum of recent times.  It’s possible the 3% could be limited to first time homebuyers, but those are the ones who have been hurt the most recently and this will drastically reduce their expense in obtaining their first home mortgage.

Fannie and Freddie do not make loans directly.  They buy them from lenders and package them into securities and then give guarantees to make investors whole if borrowers do not repay.  This payback comes from penalties charged to mortgage lenders and in turn, lenders have been making mortgage loans only to borrowers with excellent credit in the recent past.  Regulators and lenders are still walking a fine line between expanding mortgage access and moving too far toward the loose credit that led to the crisis.  Borrowers will still be required to not carry excessive debt relative to their income, but with the “lower down-payment loans” made “sellable”, more buyers will qualify for loans.

• A long stalled provision of the Dodd-Frank Act has been approved by The Federal Reserve, Securities and Exchange Commission and the Department of Housing and Urban Development which will result in relaxed mortgage-lending rules. 

Originally, lenders were required to hold 5% of the risk of mortgages packaged and sold to investors or require a 20% borrower down payment. But regulators, concerned that overly stringent rules would harm the housing market’s continued recovery, backtracked on the 20% down payment. 

Banks will now be able to avoid the 5% risk-retention requirement if they verify a borrower’s ability to pay back the loan and comply with other requirements, such as a borrower’s debt payments not exceed 43% of income.  These represent an effort to ensure that more mortgage loans are available to consumers.

• Mortgage lenders are looking to lower the minimum FICO scores that borrowers need to qualify for a jumbo loan.  A FICO score is the most commonly used method for determining credit scores and is used by Trans-Union, Equifax and Experian, the nation’s three biggest credit agencies. 

While today a borrower may be able to get a jumbo loan with a FICO score as low as 680 out of a possible 850, many lenders draw the line at anything below 720.  The best terms go to those with a score of 760 and higher.  Now, though, lenders are wanting to get more jumbo loans, those that exceed Fannie Mae and Freddie Mac conventional loan limits of $417,000 in most places and $625,00 in some high-price areas.  To do so they are looking at lowering the required minimum FICO score if all other factors are met.  

I realize all of this can be a bit complicated and every situation is different.  That’s why I’m here for you.  I study all the new regulations as they come out and do my best to mesh the best mortgage lender for each individual client.  My forty-two plus years in the local real estate arena has given me the edge in knowing exactly what’s available and I can help steer my clients in the right direction for their personal situation.  If you, or any family member or co-worker is in the market for a new, or new-to-you, home, please give me a call at 598-3200 or email me at Harry@HarrySalzman.com and let me put my extensive knowledge to work for you. 

 

MORTGAGE RATES STILL HISTORICALLY LOW, DEFYING EXPERTS’ PREDICTIONS

Housing Wire 10.15.14, The Wall Street Journal 10.26.14

Despite experts who have long predicted differently, interest rates keep tumbling and are offering borrowers a fresh opportunity to save money.

The week ending October 17, 2014 saw the fixed-rate, 30-year mortgage fall to 4.03%, the lowest level since June 2013 and it remained there through last Thursday.  This compares to 4.29% in mid-September and can translate into tens of thousands of dollars in savings through lower monthly payments over the course of a 30-year mortgage. 

Along with lower interest rates, home loan demands have surged, with applications jumping nearly 12% in the week ending October 17^th compared with a week prior, according to the Mortgage Bankers Association. 

This increase is being driven by those wishing to refinance existing mortgages, but falling interest rates are also helping ease the sting of rising home prices by making it possible to afford a house that might otherwise by out of reach. 

All of this is good news for both Buyers and Sellers.  If you are looking to Sell and Trade Up, or Buy for the first time or for Investment purposes, the low mortgage loan rates are going to work in your favor. 

First time buyers will find that with increasing rental payments, it makes sense to own if at all feasible.  When you rent, you’re paying someone’s mortgage, so why not find out if it’s to your advantage to pay your own?

If you’re looking to Buy for Investment purposes, those higher rental prices are going to help you recoup your investment a lot sooner. 

And, if you’re looking to Sell and Trade Up, the lower interest rates will help you keep your new mortgage payments down while helping your potential Buyers do the same.

All in all, it’s a great time to be in the housing market and if you’ve been sitting on the fence, now is a great time to give me a call and determine whether or not your real estate dreams can be realized. 

 

WHEN PURCHASING A NEW HOME, SHOULD YOU RENT YOUR HOUSE RATHER THAN SELL IT?

Keeping Current Matters, 10.14.14

A recent study concluded that 39% of Buyers prefer to rent out their last home rather than sell it when purchasing their new home.  The reasons cited were that “many homeowners were able to refinance and ‘locked in a very low mortgage rate in recent years.  That low rate, combined with a strong rental market, means they can charge more in rent than they pay in mortgage each month…so they are going for it.’”

Residential real estate is a great investment right now and in some cases this makes perfect sense.  However, there are a number of questions you might ask yourself BEFORE you decide to follow this path.

1. How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations?  (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
2. Because of the economy, many homeowners cannot make their mortgage payment.  What percentage of tenants do you think cannot afford to pay their rent?
3. Have you interviewed experienced eviction attorneys in case a challenge does arise?
4. Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5. Will you allow pets?  Cats? Dogs? How big a dog?
6. How will you actually collect the rent?  By mail?  In person?
7. Repairs are part of being a landlord.  Who will take tenant calls when necessary repairs come up?
8. Do you have a list of craftspeople readily available to handle these repairs?
9. How often will you do a physical inspection of the property?
10. Will you alert your current neighbors that you are renting the house?

Bottom line:  Historically, renting out Residential real estate is a great investment but not one without its challenges.  Be certain that you have decided to rent your home because you want to become an Investor, not because you are hoping to get a few extra dollars by postponing a sale.

 

WINTER SKI GUIDES AVAILABLE AT THE OFFICE

We have a limited number of copies of the 2014-15 Winter Guide produced by Colorado Ski Country USA at the office, so if you’re interested, just stop by and pick one up. 

 

HARRY’S PHILOSOPHY OF THE DAY

(some more words of wisdom I picked up at the Chicago conference..)

 

“Luck is a dividend of sweat.  The more you sweat, the luckier you get.”  --Ray Kroc

“To find joy in work is to discover the fountain of youth.”  --Pearl S. Buck

“”Try not to become a person of success, but rather try to become a person of value.”

--Albert Einstein

“The two most important days of your life are the day you were born and the day you found out Why.” --Mark Twain

 

 

 

                                                            

October 14, 2014

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.

                             

SEPTEMBER LOCAL STATISTICS LOOKING GOOD

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

Local homeowners should be happy with the recently released housing statistics. While the month-over-month averages are not increasing as quickly as they did several years ago, the slow, steady growth we are seeing is a good sign that the housing market is stabilizing and continuing to provide increased equity for homeowners.

In general, September is a slower sales month.  People with children still at home and in school want to make certain they are settled in prior to the start of the school year, therefore more sales usually happen prior to Labor Day.

As you will see, September sales in El Paso County show that the relationship of selling price to listing price is 98.4%.  And the average days on the market is 80.  This means that if you are planning to Sell and you price your home realistically, it’s going to happen.  If you are in the market to Buy, it’s also a good time because prices are not increasing at too fast of a pace and interest rates are still historically low.  There are fewer homes available, though, and that’s possibly due to the higher price of rentals.  A number of renters are looking to become first-time homeowners, figuring that if they are going to pay someone’s mortgage it might as well be their own!

Here are some highlights from the report.  Please click here to view the detailed 10-pages .  If you have any questions about the report or anything else to do with Residential real estate, please call me at 598.3200 or email me at Harry@HarrySalzman.com.  

In comparing September 2014 to September 2013 in PPAR:                       

                        Single Family/Patio Homes:

• New Listings are 1,249, Up 8.0%
• Number of Sales are 1,026, Up 23.8%
• Average Sales Price is $253,218 Up 3.3%
• Median Sales Price is $225,000, Up 5.6%
• Total Active Listings are 3,831, Down 5.9%

                        Condo/Townhomes:

• New Listings are 172, Up 19.4%
• Number of Sales are 153, Up 51.5%
• Average Sales Price is $162,458, Down 6.6%
• Median Sales Price is $150,000, Up 7.9%
• Total Active Listings are 405, Down 11.2%
•  

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

                                                Median Sales Price             Average Sales Price

Black Forest                            $393,500                              $380,587

Briargate                                  $272,750                              $312,731       

Central                                      $176,500                              $215,121

East                                          $175,250                              $185,264

Fountain Valley:                      $190,950                              $199,041

Manitou Springs:                    $275,250                              $294,493

Marksheffel:                             $258,000                              $277,047

Northeast:                                $220,000                              $243,386

Northgate:                                $350,000                              $377,733

Northwest:                               $307,250                              $336,629

Old Colorado City:                  $174,450                              $195,653

Powers:                                    $222,000                              $223,671

Southwest:                              $240,500                              $317,226

Tri-Lakes:                                $349,625                              $360,214

West:                                         $242,500                               $295,602

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

 

WORLDWIDE relocation COUNCIL MEETING FOCUS WAS “ENJOY LIFE”

I just returned from a week in Chicago where I attended meeting with Realtors from all over the world who specialize in relocation—either around the world, around the country, or simply around the corner.  It’s always energizing to share stories and gather new information that I can use to help turn what can be a stressful experience for my clients into one that is as stress-free as possible. 

Easing stress during relocation for the entire family is of prime importance to me.  There are so many stress triggers that need to be dealt with, such as:

• Possible Negative Equity in the current home and its subsequent listing for sale
• Loss of spousal income and spousal job search
• Unfamiliarity of new town or neighborhood
• Schools
• Disclosure/Inspection issues
• Household goods move
• Mortgage qualifications

These stress triggers, and more, are just another reason why it’s important to deal with a competent real estate Broker who can assist you in all the above areas and help you find solutions to potential problems even before they surface. 

A Broker familiar with relocation will be acquainted with Brokers all over the world who can help with getting a current home listed when the move entails a cross-country or cross-the-world situation.  My many years of involvement with the Worldwide Relocation Council (WRC) has given me the pleasure of meeting Brokers who have the same “customer service” orientation as I do.  Knowing this, I can make certain that my clients will receive the same good advice that I give on a local level.

The “Enjoy Life” theme also concentrated on the “retirement journey” that many of us will travel, either soon, or one day in the future.  There are so many questions involved in setting goals and objectives for Retirement and many of them need to be answered long in advance of the actual act of retiring. 

Some of the Goals and Objectives might include:

• Where do I want to live?  City, State, Country, Home, Condo, Retirement Community?
• What do I want to be able to do with my time?
• How is my health now and expectations for future?
• Estimate how much you will need—one rule of thumb is that you will need 70% of your annual pre-retirement income to live comfortably
• Create an overall plan, including financial lifestyle, family, long-term care, insurance, will

Looking at these areas are important to do BEFORE you decide to retire as the answers to many of these questions will determine where, when and IF you are ready to retire.

A MetLife Study of Baby Boomers (1946-1964) done in April 2012 showed:

• 2011--- oldest Baby Boomers reached new milestone—Age 65
• 45% of Boomers age 65 are now fully retired
• 14% are retired, but are working part-time or seasonally
• 37% of those who retired earlier than planned cited health-related reasons and 16% cited job loss
• 27% of those working said they needed income for daily living and 13% cited desire to stay active
• On average, Boomers not retired yet plan to do so by age 68.5
• 71% are married or in a domestic partnership, 12% divorced or separated, 10% widowed and 7% single
• 83% have children, 84% have grandchildren and 24% caring for at least 1 parent
• 93% currently own their own homes, valued at $255,000

Lots to think about.  It’s always a good idea to make plans earlier than necessary and I’d certainly recommend you talk to your financial, tax and other advisors for help for your individual situation.  One thing you might ask them about is the possibility of owning investment property, which can help grow equity while providing you with a monthly income, probably more then the mortgage payment.  If that’s something that you are considering, give me a call and I can help you define your investment property goals. 

As an aside…I did manage some personal time in Chicago and lo and behold, I couldn’t escape my profession even while taking a leisurely walk.  The first building I saw was “The Realtor Building”, home to the National Association of Realtors, on Michigan Avenue.  There was a wooden-horse decorating contest going on and here is a picture of me with the one designed by the Realtors—entitled “The A-MARE-ICAN Dream of Property Ownership.”

 

A FEW MISTAKES THAT CAN SABOTAGE YOUR HOME SALE

RISMedia, 10.3.14 & The Wall Street Journal, 10.2.14

I’ve been asked over and over what I think needs to be done in order to get a home in “Selling Condition”.  My answer will differ from home to home and some will need more updating than others.  I wanted to share some information I recently read.  Not all of it will apply to all Sellers, but it’s certainly a good place to start. 

According to the real estate Staging Institute, a “staged” home sells 70% faster than a non-staged home.  Below is a list of common staging mistakes to avoid:

1. Mistake:  Not creating space.  Clutter robs a home of space.  Make sure everything is cleared from the countertops and remove at least two-thirds of books on the shelves.  Closets should be half full.  If a Buyer sees a jam-packed closet they will think it’s too small for them.
2. Mistake:  Excessive furniture.  Too much, or over-sized furniture can ruin a home sale.  Swap out a king sized bed for a queen in order to create more space unless the room is large.  Pull furniture two or three inches from the walls throughout the house and allow the corners of the room to be visible.
3.  Mistake:  Household smells.  The only thing as important as decluttering is having an immaculate house.  A house that smells odd to a prospective Buyer, whether because of a cat’s litter box, a dog or exotic food smells, can easily be a deal breaker.  Don’t try to mask smells with room freshener.  Simply open windows a few minutes before your home is being shown.
4. Mistake:  Failure to edit.  Too many personal items can increase clutter.  Remove as much as possible to allow the potential Buyers to picture the home as one they want for themselves.
5. Mistake:  Having more than one focal point in a room.  Every room needs a focal point but more than one is overkill.
6. Mistake:  Color Faux Pas.  It’s important to maintain a continuum of a neutral paint color throughout the main areas of the house to provide a sense of openness and flow.  This also helps make a room look bigger.
7. Mistake:  Covering up the light.  Lighten up!  You want as much light to come in as possible.  Remove unneeded blinds.  Pull drapery aside.  You want a Buyer to think: “I could live here, it’s nice and bright.”
8. Mistake:  Skipping the walk-though.  Make a trip through your home and test all the cupboards, cabinets and drawers for proper opening and closing.  Squeaky cupboards or jammed drawers will make the Buyers think they will need to fix them.  Replacing hinges and greasing drawer tracks is inexpensive and quick.
9. Mistake:  Neglecting the exterior.  The front porch is the home’s first impression.  Painting the front door and placing seasonal planters on each side improve the look.  Keep lawns freshly mowed and pressure-wash outdoor decks and aluminum siding.  This can do wonders for a home’s first impression and boost its value.

So there you have it.  Just some common sense suggestions that can help get a home ready for sale.  This is a great time to pare down and get rid of things you have been saving but really don’t want to move to your next home.  And, as always, I’m here to help with suggestions for your individual property to make certain the “first impression” is a good one.

 

HARRY’S PHILOSOPHY OF THE DAY

(some other words of wisdom I picked up at the Chicago conference..)

 

“Never get so busy making a living that you forget to make a life.” –Dolly Parton

“”Don’t be afraid to give up the good to go for the great.”  --John D. Rockefeller

“”Things work out best for those who make the best of how things work out.”  --John Wooden

“We make a living by what we get, but we make a life by what we give.”  --Winston Churchill

“Choose a job you love and you will never have to work another day.”  --Confucius

 

 

 

 

                                                            

September 29, 2014

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.

                             

 

                                       

 

 

GUESS I’D RATHER BE IN COLORADO….

For those of you who have gotten to know me well, that goes without saying, but it’s most especially true this time of year when we get to see the Aspen trees change color in the mountains.  I don’t think there is anything as spectacular and there’s just a short window for viewing.  This past weekend, we were able to see nature at its best and I wanted to share several pictures I took with you.  It’s impossible to capture the magnificence of it all, but the photos above will give you a small idea of what I’m talking about. 

Those of us that call Colorado home know that our state is gorgeous in all four seasons.  And each season offers something for everyone—from sporting activities to sightseeing and great food.  For those looking to relocate here, you’re in for a treat.  You will soon realize what I mean when I talk of our “Rocky Mountain High”.  There’s just nothing like it.

SPEAKING OF FOUR SEASONS, HOME BUYING CAN BE TRICKY WITHOUT A COMPETENT real estate BROKER

The Wall Street Journal, 9.22.14

There have been lots of articles about the housing recovery and how it’s starting to slow down a bit to catch its breath so to speak.  Prices are continuing their upward climb and mortgage rates are still historically low.  However, the market’s foundation is starting to wobble a bit and forecasters are beginning to rethink their higher price valuation predictions. 

The slowdown is good news for homebuyers, of course.  The recent weakness in real estate investments, including homebuilders, has created opportunities for bargain hunters, some analysts say.  However, if the Federal Reserve begins raising interest rates next year as expected, the cost of financing will increase—making things tougher for Buyers and Investors alike. 

Many analysts argue that now is a good time to buy.  The slowing growth in prices makes homes more affordable, even as rental costs inflate for single-family homes and multifamily apartments.  Interest rates remain low, with the average for conforming 30-year fixed-rate mortgages recently at 4.19%, close to the lowest levels of the year. 

Some of the slowdown has to do with the time of the year, but I’ve found that no matter what the season, if you are dealing with a competent real estate Broker who has been successful during all seasons and some recent economic cycles, you can expect to find just what you are looking for.  It’s easy to find a home, either for personal use or investment, when the market is hot, but market conditions change and you need to make certain that you are dealing with someone who knows the “ins and outs” of every season and every cycle. 

With my 42 plus years in the local real estate arena, I’m uniquely qualified to help you and your family with all your Real Estate needs.  Just give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see if now is the right time to make things happen for you.

 

MORTGAGE LENDING CAN BE PUZZLING

The Wall Street Journal, 9.12 and 9.22.14

With the mortgage credit game changing constantly and with more changes to come, it’s hard to know exactly where to get the best loan for your specific needs.   Those with top credit scores will find it much easier than most to qualify for loans of all types and will find that the shift in mortgage lending rules will present an opportunity to get a larger loan—and better home—without having to pay a higher interest rate. 

While fixed rate mortgages have been the norm lately, Adjustable Rate Mortgages (ARMs) with a 30 year repayment period and fixed rate for the first 10 years offer a conservative option for those looking for lower payments.  Most borrowers won’t need the loans for more than the fixed period as the typical Seller in 2013 owned his home for nine years, according to the National Association of Realtors. 

Borrowers who are considering an ARM should look for one with a fixed rate at least as long as the period they are planning to keep the house since the loan’s interest rate will rise considerably once the fixed period ends.  They should also put aside some of the savings they realize from the lower initial monthly payments in case they need to stay in the home longer than originally planned.

But no matter what type of mortgage loan a borrower may want, it’s not a “one size fits all” type of situation.  What is the best type of loan for those who qualify for the best rates and terms? Where do you go for lending if you are not in the select group with top credit scores?  What if you’ve had a bankruptcy or foreclosure?  These questions, and others, are very important to borrowers and another reason why you need to work with a qualified, competent real estate Broker.  A good Broker will have established contacts with lenders and can help direct you to the one that will work best for your individual financial situation.  This should be done prior to finding a home so that you won’t be disappointed.  You will know in advance what best fits your budget and being pre-approved will give you peace of mind while shopping for homes.  The “wrong” lender can make the home buying experience an unpleasant one and that’s something I’ve seen too often when the Broker hasn’t done everything necessary to help their Buyer. 

An important part of my service is making certain that I understand the needs of each client and with my investment banking background I do the homework to make certain that my clients are directed to a competent mortgage lender best suited for their needs. 

Today’s mortgage lending is getting more and more complicated but it doesn’t need to be for you.  Making sure you deal with the “right” real estate Broker can help alleviate many of the problems which could arise long before they do. 

Enough said for today.

 

HIGHER RENTS, LOWER WAGES ARE LEAVING MORE CASH-STRAPPED

RealorMag, 9.16.14

Nationwide, rents have risen by 6 percent according to data compiled from Harvard’s Joint Center for Housing Studies, and renters are increasingly becoming cash-strapped while facing the higher rents in conjunction with shrinking or stagnant paychecks. 

Traditionally, homeowners have long outnumbered renters by more than three to one, according to Realty Trac.  However, since the recession, the rate of homeownership has been steadily dropping from a 69.2 percent peak in the fourth quarter of 2004 to 65.42 percent in the fourth quarter of 2013, according to Census data.

The number of renter households has risen to 43 million, or 35.4 percent of all U.S. households, which is up from 31 percent in 2004, according to the Harvard report.

This means, of course, that 64.6 percent of households own their own home, townhouse or condo and I am a firm believer that somehow we need to help turn those renters into owners so that they can start building equity rather than helping someone else do so. 

This is obviously a great time for Investors to get in the market since rental income is going up, but it’s also a good time to turn renters into first-time or once-again homeowners.  If you know someone who is renting and wants to find out the feasibility of owning, please refer them to me and let me see if I can help them realize their “American Dream”.

 

LOCAL SALES TAX REVENUE CONTINUES TO INCREASE

The Gazette, 9.20.14

A healthy tourist season helped sales tax collections increase for a fourth straight month in August, according to a report from the Colorado Springs Finance Department.  Collections of the city’s 2 percent sales tax in August (July sales) were up 8 percent from August 2013. 

No wildfires or flooding most certainly contributed to this increase in tourism.  “The fact that there were no natural disasters certainly makes it more likely that tourists will want to visit the region, but the magnitude of the increase was perhaps unexpected,” said Tatiana Bailey, executive director of the Southern Colorado Economic Forum.  “One of the benefits of a strong tourism season is other businesses that cater to tourists—restaurants and retail shops—are also having a strong year.”

 

COLORADO SPRINGS RANKED AMONG “INTELLECTUAL ELITE”

The Gazette, 9.17.14

Colorado Springs is ranked 8^th in the nation among “intellectual hubs” out of 50 of the largest metro areas studies by WalletHub.com.  In comparison, Denver was number 28. 

UCCS spokesman, Tom Hutton, pointed to the growth of UCCS and the presence of Colorado College, Pikes Peak Community College, the Air Force Academy and others as some possible reasons for the high ranking.  And the officers corp at area military installations add more educated individuals to the population as does the tech sector, and many bright retirees who move here from all over the world. 

Some of the factors used to identify intellectual hubs by WalletHub, a financial network, included “education level” and “quality of education”.

Here’s some of what makes Colorado Springs so high on the list:

• Second in percentage of high school diploma holders
• Fourth in percentage of college or associate degree holders
• 15^th in percentage of workers with jobs in computer, engineering and science
• 22^nd in percentage of graduate or professional degree holders
• 23^rd in percentage of bachelor’s degree holders
• 31^st in public school system ranking

So there you have it.  Just another feather in our ski-cap.  In any case, a great bragging point when speaking to our friends in Denver.

 

HELP WANTED IN COLORADO SPRINGS

The Gazette, 9.24.14

Pikes Peak Workforce Center’s semi-annual Job Fair will be held on October 8^th and 114 Colorado Springs area employers say they have openings for 6,000 to 7,000 positions within the next two to three months. 

According to Jeanne Cotter, Workforce Center spokeswoman, this will be one of the largest job fairs the Center has held in terms of the number of openings.  The spring job fair had a similar number of employers but only 2,500 positions were available then. 

This comes along with the Colorado Springs area unemployment rate falling to 6.5 percent in July—the lowest in almost six years. 

The job fair will be from 11 a.m. to 3:30 p.m. October 8 at the Hotel Elegante Conference and Event Center, 2886 S. Circle Drive.  Doors will open at 9:30 a.m. for veterans and the spouses only.

For a complete list of employers who plan to attend, go to www.ppwfc.org and click on “fall job fair”.

 

BE SURE TO REGISTER SOON FOR SOUTHERN COLORADO ECONOMIC FORUM

The Southern Colorado Economic Forum is being held on Friday, October 10, 2014 at the Antlers Hilton Hotel Ballroom. 

You won’t want to miss out on all the useful information that is presented at this Forum so it would be wise to get your registration in as soon as possible for this always-sold-out event.  You can register online at : www.SouthernColoradoEconomicForum.com . 

Salzman real estate Services, LTD is proud to be the only Residential Real Estate sponsor and has been since the Forum’s inception 18 years ago. This is a “must attend” event for anyone in business in the Colorado Springs area and I know you will find it a useful tool in making business decisions for the coming year. 

 

HAPPY NEW YEAR TO MY JEWISH READERS

The Jewish New Year 5775 is now upon us and I’d like to take a moment to wish all my Jewish readers a heartfelt “L’Shana Tova” (Happy New Year). 

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

 

HARRY’S JOKE OF THE DAY

 

 

 

 

August 18, 2014

 

                       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.                       

                                    

THE “GOOD OLD DAYS” ARE STILL HERE IN “MY” WORLD

When I saw this illustration I couldn’t help think about “Dick and Jane” and “Spot” and the early days of learning to read at school.  With most schools starting this week in Colorado Springs, a lot of kids will be attending a new school because of it being their first time, graduations, or their family has moved to a new neighborhood.

I personally have helped a number of families relocate this year and when there are children involved, one of the big considerations is moving to an area with good schools, parks and other children in the neighborhood for playmates. One of the many facets of moving involves the happiness of the “entire” family, especially the young members.  Oftentimes the parents might want to look at various neighborhoods recommended by friends and I have had to lead them in another direction entirely because of my awareness of the lack of “kid friendliness” of their first suggestion. 

My objective as a Realtor is to try my best to find the best fit for the family as a “whole”.  Having been involved in more than 2000 transactions during the last 42 years has given me extensive knowledge of local neighborhoods and how they might work for a particular family’s needs. 

Neighborhoods change over time, as do the demographics and the quality of schools located within them.  No matter how much you might like a home, if it no longer suits your family’s current needs there will be considerable stress for all.  And if you are looking to Buy, the house you think is great might not be located in the best area for the needs of all family members. 

These considerations are probably the most important when looking for a home or considering to Sell your present one.  The happiness of the entire family will play a role of great importance for the next several or many years, depending on your individual situation. 

My goal is to make sure that the “Good Old Days” are here to stay for every family I relocate and I can help you and your family share in that goal.  Your happiness is important to me.  I will always make that my main focus when working with each and every client. 

 

HOME PRICES ARE RISING AT SLOWEST PACE SINCE 2012, BUT THAT’S NOT SO BAD

NAR,8.12.14, Realtor.org 8.12.14, The Wall Street Journal, 8.13-16.14, RealtorMag, various dates, DSNews 8.7.14

The National Association of Realtor’s (NAR’s) latest Quarterly Report of Median Sales Price of Existing Single-Family Homes for Metropolitan Areas was released several days ago and home value appreciation continued to moderate in 122 of the 173 metropolitan areas surveyed. 

While the median existing single-family home price increased in 71% of measured markets from the second quarter 2013, the gain continued to be lower than in recent times.  Colorado Springs was among those cities and showed an increase in median home price of 1.4% compared to a year ago.

Forty-seven areas (27%) recorded lower median prices during that same time period.  To read the 3-page report in its entirety, please click here.

Lawrence Yun, NAR chief economist, says price increases are balancing out the benefit for both Buyers and Sellers.  “National median home prices began their most recent rise during the first quarter of 2012 but had climbed to unsustainable levels given the current pace of inflation and wage growth,” he said.  “At this slower but healthier rate, homeowners can continue steadily building equity.  Meanwhile, for Buyers, increased supply with moderate price gains is giving them better opportunities to choose.”

The national median existing single-family home price in the second quarter was $212,400, up 4.4% from the second quarter of 2013.  The median price during the first quarter of 2014 rose 8.3% from a year earlier.

Yun added that despite the stabilization in price growth, sharp increases still exist in some markets and are impacting sales, most notably on the West Coast where inventory shortages are more prevalent. 

Despite the slow increase in home prices, Yun still expects home sales to make a strong showing in the second half of 2014.  He also made the following forecasts.

• Higher inflation and higher interest rates.  The Federal Reserve is planning to end its purchasing of Treasury and mortgage-backed securities in October.  Yun expects interest rates to increase in 2015.  He also expects the Consumer Price Index (CPI) which measures inflation, to increase 3.5 percent in 2015.
• Multi-year housing expansion.  The population is on the rise.  The U.S. gained 34 million people since 2000, but home sales were 5.2 million in 2000 and 5.1 million in 2013.  The pent up demand will eventually equate to additional home sales over the next few years, Yun says.
• Continued inequitable wealth distribution.  Household net worth is at an all time high, but only for the 10 percent of the U.S. population that has investments in the stock market.  At the same time, rents are rising and incomes are generally stagnant.

According to Mark Fleming, the chief economist with CoreLogic, the ongoing slowdown in price appreciation reflects a “reversion to normality” that is “expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble”.

Fannie Mae’s chief economist, Doug Duncan, in commenting on Fannie Mae’s July 2014 National Housing Survey says “the continued cautious sentiment expressed across the range of consumer indicators this month gives weight to our view that the first phase of the housing recovery is decelerating, and 2014 will be a year of mixed housing outcomes with home prices rising more slowly and home sales falling slightly.  We have always believed that for the housing recovery to be considered robust, we will need strong and sustained full-time job and income growth.  Recent data indicating the creations of more than 200,000 jobs over each of the last six months, combined with this month’s improvement in the share of consumers reporting significantly higher household income than a year ago, does provide some reason for optimism.  If these trends continue, they could lead to some upside in housing in 2015.”

For now, though, caution seems to be the rule.  Many economists are saying that price appreciation is slowing partly because Buyers, including Investors, have become more cautious and are pulling back amid the big price gains of the past year.  Also, these same price gains have persuaded more homeowners to put their homes up for sale which has added inventory.  The multiple-offer situations are not as prevalent as they were earlier this year.

There are also some Sellers who are listing their homes now rather than waiting for next year’s Spring buying season because of fear that interest rates will be higher at that time.

Highlights from the Fannie Mae Survey include:

• Half of respondents said they thought it would be difficult for them to get a home mortgage today
• The average 12-month home price change expectation dropped to 2.3%
• The average 12-month rental price change expectation fell to 3.8%
• The share of respondents who say their household income is significantly higher than it was a year ago rose by 4 percentage points to 28%--a survey high.

 And locally…

As I mentioned above, Colorado Springs saw a 1.4% increase in the median home price in the NAR Quarterly Report.  While this is lower than recent increases, it must be reiterated that our area never saw the dramatic drops or number of foreclosures that many areas in the country did. 

What these statistics mean to us is that our local homes are still increasing in value and providing steady home equity for owners.  More importantly, it means that more Buyers are NOT being priced out of the market by unsustainable home price gains that have kept them from qualifying for home financing.  It’s a “win-win” for all at the moment, most especially when you consider that mortgage loan rates are still historically low and lenders are slowly making funds more available.

 

MORTGAGES ROLL BACK TO YEARLY LOW

RealtorMag 8.15.14, Housingwire, 8.8.14

This past week, the 30-year fixed-rate mortgage rate averaged it’s low for the year at 4.12%.  The same low was reached in May as well as a week in July, this according to Freddie Mac in its weekly mortgage market survey.

The rates have countered many forecasters’ expectations so far this year by not rising, but dropping instead.

Will this continue?  According to the above statements by Yun, possibly not.  But it’s really anyone’s guess at the moment. 

The best advice I can give you is today’s interest rates are CHEAP.  If you Buy now, I believe you will be looking back a year from now and be happy that you did.

 

CHANGE IN CREDIT REPORTS COULD REVAMP CREDIT SCORES

The Gazette, 8.9.14, DSNews, 8.11.14

FICO, the company responsible for one of the most widely used measures of credit health is making changes to its current model that could boost credit scores nationwide.

In a recent announcement, analytics and decision management from FICO said its new credit model, FICO Score 9, “introduces a more nuanced way to access consumer collection information,” resulting in greater precision for lenders measuring a borrower’s credit stability.  The model will be available to lenders through the country’s various reporting agencies in the fall.

When I learn how the changes will effect home mortgage lending, you will read it here.

And good news for renters looking to buy…two of the national credit bureaus—Experian and TransUnion—have begun incorporating verified rental-payment data into credit files where it can be included in the computations of credit scores when they apply for a mortgage. 

 

MORTGAGE LENDING STANDARDS EASING

The Wall Street Journal 8.5.14, Bloomberg-BusinessWeek, 8.5.14

The Federal Reserve’s quarterly survey of banks showed that nearly one in four U.S. banks said they had eased mortgage-lending standards for borrowers with strong credit during the second quarter of 2014.  This is the largest such movement by lenders since the housing bust hit 8 years ago.

The standards have eased amid sustained increases across the U.S. in home prices and a plunge in refinancing activity over the past year. 

According to the survey, demand for prime mortgages rebounded to its highest level in a year, offering a hopeful sign for housing markets that have stumbled during the first half of the year. 

Over the past year, top policy makers have expressed concern that tight credit standards could hamper the housing recovery.  Fed Chairwoman, Janet Yellen,  speaking to a congressional hearing last month, said that while standards should have ratcheted up after the housing bubble, “it is now become the case than any borrower without a pretty pristine credit rating finds it awfully hard to get a mortgage.” 

While easing the lending standards will help some consumers, those who have high levels of debt, damaged credit from the recession or insufficient incomes to become home Buyers will have to wait for these to change in order to obtain mortgage loans. 

HARRY’S JOKE OF THE DAY

 

 

                                                           

May 27, 2014

 

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.

 

                             

EVERY DAY IS MEMORIAL DAY…..

While the “official” observance was yesterday, I believe that every day is Memorial Day in the hearts and minds of those of us who understand its true significance.   My father and father-in-law both served with the members of the Greatest Generation and were among the lucky ones to come back and relate their experiences.  So many others, then and now, were not so fortunate and we owe them a tremendous debt of gratitude for the sacrifices they made in order for us to live in peace.  Those who gave their lives for our country are the true heroes amongst us.

 

THE TIME TO BUY IS NOW

Lots of reasons to BUY NOW and I’d like to share some of them with you. Total home ownership is right around 64.7% compared to 69.1% seven years ago.  Some of this can be attributed to foreclosures from the housing meltdown and some to the new mortgage loan regulations.  Whatever the reason, the situation is creating an increase in renters.  If you are wanting to sell and trade up, you might want to consider keeping your present home as a rental.  With historically cheap mortgage money and long term appreciation better than you could get elsewhere, this is an option worth considering if it makes financial sense to you personally.

Eric Belsky, Managing Director of the Joint Center of Housing Studies at Harvard University, revealed five financial reasons people should consider buying a home in his paper on homeownership entitled: “The Dream Lives On: the Future of Homeownership in America.”

1. Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money.  As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor.  Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity.  With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2. You’re paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3. Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4. There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income.  On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5. Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom line?  Not only does homeownership makes sense for many Americans for social and family reasons, it makes sense financially.

 

HOUSING RECOVERY REGAINS SOME STEAM BUT REMAINS WEAKEST LINK IN ECONOMIC RECOVERY

The Wall Street Journal, 5.23.14, USAToday, 5.23.14, The Gazette, 5.24.14, inman.com, 5.21.14

The housing recovery regained momentum for the first time this year during the critical Spring selling season.  Sales of existing homes rose 1.3% in April to a seasonally adjusted annual rate of 4.56 million, according to the National Association of Realtors.  It was, however, 6.8% lower than the year ago level.

This comes after a particularly harsh winter nationwide and “we think the recent slump in home sales may now be in the past”, said Daniel Silver, economist at J.P. Morgan Chase.  The coming months are crucial for the U.S. housing market because families prefer to move to a new home in a new school district by the end of summer, among other reasons. 

On the positive side, the supply of homes in April increased from March while price gains eased—two trends that could help pull more Buyers into the market and boost sales further if they continue.

Lawrence Yun, chief economist of NAR expected the improvement.  “Some growth was inevitable after sub-par housing activity in the first quarter, but improved inventory is expanding choices and sales should generally trend upward from this point.”

“We’ll continue to see a balancing act between housing inventory and price growth, which remains stronger than normal simply because there have not been enough Sellers in many areas.  More inventory and increased new-home construction will help to foster healthy market conditions,” Yun said.

NAR President Steve Brown said that there was some heating of the market last moth.  “The typical time on market shrunk in April, with four out of 10 homes selling in less than a month,” he said. 

“Homes that show well and are properly priced tend to sell the fastest.  More housing inventory gives Buyers better choices, and takes the pressure off the buying process, which is a welcome sign, especially for first-time Buyers.”

Properties sold faster for the fourth straight month in April, reflecting the prolonged lag in inventory relative to demand.  The median time on market for all homes was 48 days in April, down from 55 days in March.  It was 43 days on market in April 2013.

Fannie Mae Chief Economist Doug Duncan thinks that improving financial and labor market conditions should also contribute to a rebound, with economic growth in April, May and June accelerating to an annual rate of 3 percent. 

The outlook for housing “remains more worrisome with existing-home sales, new-home sales, housing starts and multifamily housing all experiencing year-over-year declines despite improving consumer attitudes,” Duncan said.  “However, we anticipate a modest uptick in housing activity as the Spring and Summer selling and buying seasons get under way.”

Fannie Mae economists say that “given the current regulatory landscape, we believe rising employment and income are more likely to bolster housing demand rather than easing credit conditions.”

In March, existing homes were selling at the slowest pace (4.59 million units a year) since July 2012, and were down 6.6 percent from a year ago for the first quarter as a whole.

One bright spot, however, is the growing number of consumers surveyed by Fannie Mae who say it’s a good time to sell a home.  “As consumers become more confident in the selling environment and more supply enters the market, it will help to boost turnover,” Fannie Mae economists said.  “Leading indicators of home sales point to cautious optimism in the near-term outlook.”

Fed Chair Janet Yellen appeared before Congress several weeks ago and said that the recent housing slowdown “could prove more protracted” than expected.  While neither Yellen nor other surveyed economists expect a housing rebound that began in 2011 to reverse course, they say the turnaround will be more gradual, crimping economic gains in 2014. 

 

THE MAIN CULPRITS BEHIND THE HOUSING SLOWDOWN…AND A POSSIBLE SOLUTION FOR FIRST TIME BUYERS

RealtorMag 5.22.14, NAR, 5.22.14

Rising mortgage rates are the main culprit for the weakening in home resales this year and they could further dampen existing home sales, according to a new paper published by John Krainer, an economist at the Federal Reserve Bank of San Francisco.  He also cited other factors such as the fragile economic recovery and the retreating of investors who have slowed their market share as home prices rise. 

Fed Chair Janet Yellen cited “very slow household formation” as young adults saddled with student debt continue to live with their parents.  “My expectation is that as the job market strengthens…we’ll see household formation pick up, but it’s hard to know here what exactly the new normal is,” she said.

New mortgage lending regulations which took effect on January 10, 2014 have also made it difficult for many, especially first time homebuyers, to obtain mortgages. 

The FHA has recently announced a plan to expand access to mortgage credit for underserved borrowers according to Department of Housing and Urban Development Secretary Shaun Donovan. 

Donovan said that the FHA will launch a housing counseling program later this year.  The four-year, two-phase pilot program, called Homeowners Armed With Knowledge (HAWK) will offer a 50 basis point reduction in the upfront mortgage insurance premium and a 10 basis point reduction in the annual premium at the time of loan origination to first time home buyers who complete the program.  Loans that remain in good standing will also receive reductions, which could add up to thousands of dollars in savings for homebuyers over the life of their loan. 

 

5 REASONS TO HIRE A real estate PROFESSIONAL

keepingcurrentmatters, 5.20.14

Whether you are Buying or Selling a home, you need an experienced real estate Professional in your corner.  I’ve been telling you this for a long time, but today’s new rules and regulations makes For Sale By Owner (FSBO) more confusing and difficult than ever.

The reasons have not changed, but they have been strengthened in recent months as the market recovers.

1. What do you do with the paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing.  A true real estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream home, now what?

There are over 230 possible actions that need to take place during every successful real estate transaction.  Don’t you want someone who has been there before, who knows what these actions are, to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home.  However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a real estate Professional. From the Buyer (who wants the best deal possible) to the home inspections companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to during the process.

4. What is the home you’re buying/selling really worth?

Not only is it important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market, but you also need someone who is not emotionally connected to your home, to give you the truth as to your home’s value.

According to the NAR, “the typical FSBO home sold for $184,000 compared to $230.000 among agent-assisted home sales.”

Get the most out of your transactions by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the Internet about home sales, prices, mortgage rates: how do you know what’s going on specifically in your area?  Who do you turn to, to tell you how to competitively price your home correctly at the beginning of the selling process?  How do you know what to offer on your dream home without paying too much or offending the seller with a low-ball offer?

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman”—Dave Ramsey

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one.  You need some one who is going to tell you the truth, not just what they think you want to hear.

Bottom Line?

You wouldn’t try to replace the electrical wiring in your home unless you were an electrician nor install new sinks or toilets unless you were a plumber.  Why would you want to make one of the most important financial decisions of your life with hiring a professional? 

Fortunately, if you’re reading this, you already know that answer.  You have me.  With my investment banking background and 40 plus years as a top producer in the local real estate arena, I’ve got you covered.  Whether you’re Buying, Selling or looking for Investment Income, I’ve got the pulse on the market and help make your dreams a reality.  Just give me a call today at 598.3200 or email me at Harry@HarrySalzman.com and let’s get the conversation started.

 

HARRY’S JOKE OF THE DAY