Real Estate Information Archive

November 5, 2012

 

HARRY’S WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

 

 

 

WHY ARE WE CONSISTENTLY POSITIVE ABOUT THE LOCAL real estate MARKET?

 

I have received more than a few comments from readers saying things like, “Oh, Harry, how can you only be so positive in your eNewsletters?”  Well, our first two stories this week are just a couple of examples of why we remain so optimistic about the local real estate market.  It’s not that I only look for the positive in all the media I peruse, it’s just that I’ve also found that there is always a way to take some thing that may sound negative to others and turn it into a positive.  In the articles below….well….the information simply speaks for itself. 

 

 

ONCE AGAIN, LOCAL HOME SALES WERE UP LAST MONTH

 

October proved to be another good month for the Residential real estate Market.  Here are some highlights from the just published Pikes Peak Realtors Association (PPAR).

 

• 794 homes sold—4.7% over year to year figures
• Average Sales Price was $239,945—8.3% higher than the $221,534 of a year ago
• Median Sales Price was $211,650—up 14.4% from $185,000 of a year ago
• Home Listings were up 12.4% from October 2011
• Total Active Listings as of October were 3513 compared to 3959 as of October 2011 which means that the current Single Family Home inventory is down 11.3% from one year ago

 

Click here to see the full report containing all the general statistics as well as comparisons of your current local home area and all the areas we serve.  There are seven pages of reports on all neighborhoods in the Pikes Peak area. 

 

We have found that by using this information on behalf of our clients, they have far exceeded their expectations in terms of personal decisions in either buying or selling a home.

 

Furthermore, when this data is used for our clients, either buyers or sellers, we find we are able to get a more advantageous price and terms…thus saving our clients money and shortening the time to closing.  It’s a big win all around.

 

If you have any questions about this data (or any real estate questions), please give us a call at 598.3200 or 800.677.6683 (MOVE). 

 

 

AND MORE POSITIVES….QUARTERLY UPDATES AND ESTIMATES JUST OUT

 

We were very excited to see the latest local “Quarterly Updates and Estimates” –an update researched, produced and published by the Southern Colorado Economic Forum group, College of Business and Administration, University of Colorado at Colorado Springs.  

 

This is an update on the El Paso County economy as of October 2012 and had a very positive analysis for all areas of El Paso County.

 

We, of course, focus on the information and forecasts concerning Residential real estate and the effects thereof.  Again….lots of positive information there.  Pages 3 though 9 of the 16 page report will provide current charts, thought and answers you might have concerning local Residential Real Estate.  The titles of those sections are:

 

• Analysis of the El Paso County Residential housing market (single family and multi family)
• MLS Activity, with charts and graphs
• Housing Price Equilibrium in the Region
• Foreclosures
• Multi Family Market

 

 

Page one of the Report begins by stating  “The local economy showed some of its strongest performance since bottoming out in February 2009.  The best performing local indicators were new single family permits and consumer confidence.  The index for single family permit activity is 107.9 percent higher than a year ago.  New single family housing activity has been up every quarter in the last year over the year ago period.”  

 

As an aside, Salzman real estate Services, LTD has been a financial supporter of the Southern Colorado Economic Forum since it was created 17 years ago.  Page 16 of this Report contains a list of all organizations and businesses who are Forum Partners.  We are the only Residential Real Estate Company in the area to provide “continuing financial support”.

 

 

To see the entire report click here.  As always, I am here to provide any explanations or answer any questions you may have concerning this report.  Just give me a call at 598.3200 or 800.677-6683 (MOVE). 

 

 

AND ON A NATIONAL LEVEL…HOUSING IS FINALLY HELPING THE ECONOMY

 

According to last Friday’s report on US Economic growth, housing has now positively (there’s that word again!) contributing to the nations gross domestic product in six straight quarters which has not occurred since the housing bubble burst in 2006. 

 

This is great news and even better is the fact that the gain in the housing market is spreading to more and more cities nationwide.  This is a bright spot in a still sluggish economy. 

 

In some markets, the cost of homeownership has fallen to the point that monthly rent exceeds mortgage payments.

 

No surprises here.  We’ve been keeping you up to date on a weekly basis concerning the Colorado Springs market and want to remind you that if you are looking….the time is NOW.  There are going to be fewer choices in the coming months and prices are sure to be higher.  And with mortgage rates at an all time low, you can’t afford to wait.  If you are looking to buy, sell, trade up, or simply looking for investment property, give us at call at 598.3200 and we will get right on it.

 

And if you know of anyone who wishes to buy or sell local real estate, or who is planning a move to the Pikes Peak region, remember—I’ve got more then 40 years of experience in providing relocation and Real Estate services to clients throughout the world.  I am uniquely qualified to assist them in making the best decision for their individual wants and needs and always take that into consideration when negotiating on their behalf.

 

 

 

FEATURED LISTING

 

                                                                                   

 

61 Newport CR 61 & 63 Price: $269,000 Beds: 0 Baths: 0 Sq Ft: 0 Duplex* Desirable Broadmoor area* Very private and quiet* Super location* Great income possibilities* Currently tenant occupied* Cul-de-sac with Mountain Views* Private fenced back yard* UL and ML Units, each with own LL single garage with garage do... View this property >>

 

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

October 29, 2012

 

HARRY’S WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

 

 

NEW HOME SALES SURGE IN SEPTEMBER WHILE PENDING HOME SALES ALSO IMPROVE

Daily real estate News/October 25, 2012

 

The Census Bureau reported last week that new home sales posted their largest gain in over two years, rising 5.7% in September over August and 27.1% higher year over year. Median prices of new homes also rose 11.2% in August, the largest one-month increase ever recorded.   And existing home sales are up 11% in September compared to the same time last year.   

 

Economists are attributing this gain as a sign that the fundamentals of the economy are improving as unemployment rates improve and consumers become more confident.

 

When this is combined with reported increased housing starts, building permits and prices in recent months, it appears that there is a steady housing recovery underway.  According to Barry Rutenberg, chairman of the National Association of Home Builders, “Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase, assuming they can qualify for a good mortgage under today’s exceedingly stringent guidelines.”

 

Home prices are inching up, foreclosure sales are falling and record mortgage rates are creating a greater urgency for those who are looking to buy.  However, while the housing recovery is steadily increasing, there are still challenges—a number of underwater homeowners still waiting for prices to climb so they can have equity in their current homes before they move on and of course, access to credit remains tight.

 

No surprises here.  We’ve been keeping you up to date on a weekly basis concerning the Colorado Springs market and want to remind you that if you are looking….the time is NOW.  There are going to be fewer choices in the coming months and prices are sure to be higher.  If you are looking to buy, sell, trade up, or simply looking for investment property, give us at call at 598-3200 and we will get right on it for you. 

 

 

INTEREST RATES LOOK TO STAY LOW FOR THE FORESEEABLE FUTURE

 

During the recent Conference and Expo of the Mortgage Banker’s Association in Chicago, economists from that group predicted a similar forecast for housing and interest rates.

 

They concur that unemployment will be down, with home purchases loan originations going up and mortgage rates remaining low for now.  

 

The big question in everyone’s minds is exactly how long rates will stay this low and how the increase in home prices will affect buyers.  Again, let me remind you that there is no better time than NOW to make your move if that’s something you’ve been thinking about.

 

According to HousingWire, the U.S. added 4.8 million renters in the past six years due to the financial meltdown.  What does this mean?  We believe it’s a great opportunity in several areas.  With mortgage rates at an all time low, hopefully some of these renters will become owners.  For those that need to continue to rent for whatever the reason, there is a need for rental property and those of you who have waited might consider this a good time to start looking.  We can help both of these groups and look forward to working with you.  Just give us a call at 598.3200.

 

 

OPTIMISTIC HOUSING OUTLOOK—RISING HOME PRICES HELP ROAD TO RECOVERY

RISMedia/October 22, 2012

 

According to NAHB Chief Economist David Crowe, “we’re seeing a more robust housing sector than many other parts of the economy.  One of the reasons is we have finally begun to see on a national scale that house prices are picking up again.”

 

He stated some of the factors that are carrying the housing momentum forward.  Those include:

 

• Pent-up household formations
• Rising consumer confidence
• Increasing builder confidence in all three legs of the economy:  remodeling, multifamily and single-family construction
• Growing rental demand

 

Colorado Springs is one of the metro areas included in the forward momentum and you don’t want to miss out on the opportunities out here.  This won’t remain stagnant and all forward movement will inevitably include higher prices and increased mortgage rates. 

 

 

NOTE TO POTENTIAL SELLERS:  FIVE REASONS TO SELL NOW

Adapted from Keeping Current Matters/Nov 2012

 

1.  Only Serious Buyers Are Out

At this time of year, only those serious about buying home will be looking.  You won’t be bothered and inconvenienced by mere “lookers”.  The lookers are out holiday shopping.

 

2.  There Is Far Less Competition

The number of houses on the market shrinks dramatically this time of year.  With fewer houses on the market in general, this will make your home more likely to sell. Waiting until Spring could be a mistake for those who seriously want to sell.

 

3.  The Process Will Be Quicker

Both of this year’s biggest challenges—length of time it takes from contract to closing and lenders being inundated with purchase and refinancing loan requests—will not be in play here.  Both will be slow in the winter, thus cutting timelines and frustration that these delays cause both buyers and sellers.

 

4.  There Will Never Be a Better Time to Move-Up

If you’re looking to move up to a larger, more expensive home, you should consider doing it NOW.  Prices are projected to appreciate more than 15% from the present to 2016.  If you wait, it will cost more in raw dollars--both in down payment and mortgage payment.

 

5.  It’s Time to Move On With Your Life

If you have already decided to sell, there is no reason to wait.  The sooner you make the decision to sell, you can move on to whatever it is you want….a larger or smaller home, more time with family, retirement, or whatever it is you truly want to do with your life.  That’s what’s really important in the long run.

 

 

IF YOU ENJOY READING OUR WEEKLY eNEWSLETTER….

 

Please consider forwarding it to any of your family, friends or co-workers who may benefit from it.  They can then go to our Website and sign up to receive it themselves.  Better still, send us their e-mail addresses and we will add them to our weekly mailing list.  They will thank you for it and so will we.

 

 

LATEST LOCAL STATISTICS FROM PPAR

 

Click here to see the most recent Sales and Listing information for the Pikes Peak area. 

 

These statistics are published by the Pikes Peak Association of Realtors and can be helpful in evaluating and comparing current listings in various neighborhoods in our area.  If you have any questions about this data (or any real estate questions), please give us a call at 598-3200 or 800-677-6683 (MOVE).

 

And please remember, I would be honored to serve as your Broker for all your residential real estate needs.  It is my goal to help you make the most prudent and accurate Real Estate decisions.

 

And if you know of anyone who wishes to buy or sell local real estate, or who is planning a move to the Pikes Peak region, remember—I’ve got more then 40 years of experience in providing relocation and Real Estate services to clients throughout the world.  I am uniquely qualified to assist them in making the best decision for their individual wants and needs and always take that into consideration when negotiating on their behalf. 

 

 

AND LAST, BUT NOT LEAST….

 

We want to welcome Stuart M.Vestal to the Salzman real estate Services team as our newest Broker/Associate.  Stuart comes to us with vast experience in the home remodeling business in the Pikes Peak area for the last 12 years. 

 

He previously lived in Florida where he assisted with staging for “Better Homes and Gardens” magazine as well as owned a home remodeling business there.

 

And also, we welcome a new assistant who is here to help you with any questions or needs.  Sue Delano has replaced Anne Ganley, who recently retired.  We wish Anne the very best and want to thank her for her 12 years of service to us and many of you.

 

Please join us in welcoming Stuart and Sue into the fold, and when you’re in the neighborhood, stop by and meet them and say his to us all.

FEATURED LISTING

 

5062 Farris Creek CT Price: $347,900 Beds: 5 Baths: 3 Sq Ft: 3338 Beautiful Ranch Home with Finished Basement* Main Level Master Bedroom Suite* 5BD, 3BA, Media/Office, 2 Car Garage* Located on quiet cul-de-sac with numerous upgrades: hardwood flooring, ceiling fans, granite counter tops in kitchen* ML: LR/ Great R... View this property >>

 

 

And Here's Your Morning Coffee!

 

 

 

 

 

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs

email: harry@harrysalzman.com

 

 

Weekly Update	Featured Listing For Sale: $347,900 More Information
Existing-Home Sales Climb Higher Affordable housing conditions have lead to another increase in existing-home sales, according to a recent report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops, are on pace to reach 4.82 million units sold for 2012, an increase of 9.3 percent Continue Reading... Find The Right Coverage When purchasing a home, you will need to acquire homeowners insurance. In fact, all lenders will require a policy be in force prior to funding the loan. Make sure you have enough coverage, should anything happen. Policies refer to "replacement costs" that may not cover everything. You should ask your insurance agent a lot of "what if" questions. Continue Reading... Seller Opportunities Selling your home in today's market requires strategy and execution. Here are three tips to help sellers reduce their time on market: Make it shine. Buyers are attracted to attractive homes. Make your home stand out by mowing the lawn, raking the leaves, washing windows, and cleaning the carpets. These are small things that will make a big Continue Reading...
Harry A Salzman, Salzman real estate Services, Ltd 538 Garden of the Gods Road, Colorado Springs CO 80907 719-598-3200 or Toll Free: 800-677-MOVE(6683) Visit http://www.salzmanrealestateservices.com Change your email preferences here.

 

September 26, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THANKSGIVING IS JUST AROUND THE CORNER ....SO, LET'S TALK TURKEY

The Internet is a marvelous invention. You can use it to find members of your high-school class, the parts list for a 1937 LaSalle, the first movie that Clark Gable ever made and almost anything else you can possibly want to know.
Unforthunately, this wonderful source of information can also produce a state of mental paralysis called 'information overload'.

As we speak with prospective real estate Buyers and/or Sellers, we find that many people who have used the Internet (and their neighbors) to advise them about their Real Estate decision are suffering from this confusing problem of 'information overload'. ...and who can blame them?

On any given day, various media sources tell them that "The real estate market is looking much better" and, on the same day, another media source
warns them that "The real estate market has never looked worse".

They read that "mortgage rates are very low", .......but that "the government will soon cause mortgage rates to rise".

They are told that "this is a terrific time to buy", but that "thousands of people are losing their homes".

They hear one of their neighbors tell them they sold their home in three weeks, while another neighbor has had their home on the market for 18 months.

As a result of all of this contradictory information and advice, it is not surprising that the most-asked question we hear from our clients today is, "What would you do?"

So, we thought it would be helpful if "talked turkey" about how we are advising our prospective clients in this confusing market.

First, keep in mind that our personal business philosophy puts the long-term improvement of our clients'  financial welfare at the top of our list. You can't be sucessful and respected for 39 years in this business, if your main goal is just to 'make a buck'.

Building a client base of loyal friends requires that we always tell clients what we think is best for them, even though that means that we sometimes have to recommend not buying that home they just fell in love with, or, to suggest delaying putting their home on the market until their personal finances improve.

Second, remember that all real estate is local. The fact that housing sales in Las Vegas are in the tank, doesn't mean that home sales in Colorado Springs are necesarily terrible. In fact, even within our small segment of the national market, our sales and listing statistics are usually much better than the national statistics.

Using national home price averages to figure out local price trends makes about as much sense as using a national weather forecast to make plans for a picnic in the park.

As a matter of fact, even within the Pikes Peak region, real estate prices and activity can vary greatly based upon such factors as the age of the neighborhood, price range, time of the year, size of the home, improvements, proximity to schools ...and even how the local schools are rated.

You will note that, because both of these elements (your long-term financial welfare and local pricing factors) are based upon your personal situation (financial status, credit rating, your job security, the ages of you and of your children, etc.), the Internet cannot be of much help to you as you try to make your real estate decisions.

That's why you need some impartial advice from someone who has the answers abour what's really happening in our local market.

OK, let's get specific. I am thinking of selling my house. Is this a good time to list it?

Well, let's talk about selling in today's market. You should be aware that the selling price for your home in today's market will probably be less that you would like. Keeping that in mind, however

• If you are just moving to a comparable home closr to your work, remember that whatever financial "loss" you suffer when you sell, will be made up for when you buy your new home at a price that has also been reduced. So, you're not gaining anything by waiting to sell
   
• If you are selling to reduce your monthly payments, consider re-financing your present home, instead of selling. At today's historically-low refinancing rates, you could stay in your home  and still end up with lower monthly payments.
   
• If you are considering selling because you want to upgrade to a better home in a better part of town, you might consider buying your upgraded home and then, rather than selling, keeping your present home as a rental property. Occupancy rates are high, available inventory offers you a wide selection of properties and you will get a terrific mortgage rate on your new home. But there are drawbacks to becoming a landlord and you should discuss this option with us, to avoid some of the unwanted 'surprises' that this option sometimes involves
   
• If you are selling because you are 'underwater' with your mortgage, I'm afraid there are no easy answers. Some of the variables that affect 'short-sale' properties are: Who holds the mortgage (Some lenders are reasonable to work with ...but some are not). How long can the prospective buyer wait to occupy the home (The short-sale process can take many months to complete) The bottom line here is, call us to discuss your specific situation.

As you can see, there is no easy answer to the question "Is this a good time to sell".
 
OK, Should I consider buying a house in today's market?

Absolutely !!!!! New homeowners and Investors alike are going to come out ahead, if they buy now. Low prices, Large inventories, Great mortgage rates (the lowest in history), Low Vacancy rates, a ballooning supply of new renters are all combining to offer a wonderful opportunity for Buyers. Call us to discuss the window of opportunity that is now open.

P.S. If you're on the fence about buying, call us to get the straight scoop on how much your payments would be on a new home. You might find that it would be cheaper than the rent you are now paying

One thing is for sure. The Internet can't give you the kind of advice you need when deciding to buy or sell a home.

Better give us a call at 598-3200 or 800-677 move (6683). We will be pleased to discuss the real estate options that are available to you.

LATEST SALES AND LISTING STATISTICS

Click here for the latest sales and listing statistics for the Pikes Peak area.

Our local sales reflected the national trend in August. Home sales jumped from a year ago by the biggest percentage in nearly 1 1/2 yearsSales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. According to NAR President Ron Phipps, the biggest factors keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers and appraised valuations below the negotiated price.
 

MORTGAGE RATES DIP AGAIN

Within the past few days, mortgage rates for a 30-year, fixed-rate mortgage dropped to 3 3/4%. Many other types of mortgages, like various adjustable loans went even lower. Call us to find out how this might affect your refinancing plans.

THE LATEST GOOD NEWS FOR COLORADO SPRINGS - FROM THE GAZETTE

Initial claims for unemployment were down 23.2%
Unemployment rate was down to 9.3%
New auto and truck registrations were up 42.4%
Taxable retail sales were up 11.9%
Hotel occupancy rate was up to 77.8%
Foreclosure filings were down 21.8%

But the best news of all is that, when you wake up every morning, you get to see the most beautiful sight in the world ...the sun shining on Pikes Peak. No wonder it inspired the song, "America the Beautiful"

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move.

Please allow me to implement my negotiating skills on your behalf.
 

Just click on the icon at the top of this email to listen to my podcast for this month …

JOKE OF THE WEEK

Two social engineers were discussing social policy and the first one says: "I believe in fairness. ...a share and share alike policy. We should all have an equal share of wealth."

"Well" replied the other social engineer "I'm not sure about that. What you mean is that if you have two yachts you'd give me one?"

"Of course" says the first.

The second social engineer continued: "and if you had two factories, you'd give me one of them too?"

"Absolutely"

"So" says the second social engineer, "if you had two cars then you'd give me one of them?"

"Ah, now hang on a minute" says the first, "That's not fair. You know I've got two cars!"

September 19, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

CONSIDERING RELOCATING FOR A BETTER JOB? …HERE ARE 5 GOOD REASONS YOU SHOULD CONSULT A relocation EXPERT.

The Kelly Workforce Global Index released earlier this year found that more than three quarters of the people surveyed said they would be willing to move for the right job. At the same time, however, the Society of Human Resources Management reports that many employers are reducing or freezing their company-paid relocation programs.

One individual who recently moved to Colorado Springs reported to us that the move cost him almost $10,000 for which he received no compensation from his employer.

So, if you are offered the opportunity of taking a promotion that would require you to assume some of the costs of relocating, you should consider the following five questions, as you make your decision.

1. Can I afford it? There are a number of moving calculators available online, but according to Worldwide ERC, a workforce mobility association of which we are members, the average cost of shipping household goods for a domestic relocation was over $12,000 in 2010.

Also consider the cost of breaking a lease or selling your home (assuming you can find a buyer) and traveling back and forth between your old and new locations.

Because of the shaky market, you may have trouble selling your present home and may have to rent in your new location, until your present home sells.

Keep in mind that, under certain circumstances, the IRS allows you to deduct reasonable moving expenses, but tax deductions are not as valuable as tax credits and are only applicable if you itemize. Expenses for breaking a lease or buying and selling your home are not deductible. Call us to discuss this deduction.

We are very experienced in relocations and can assist you on both ends of the relocation process. We can help you sell your present home and buy your new home, regardless of where you live.

2. What's the local cost of living? Determine whether your new salary will cover living expenses in your new home by looking at cost-of-living calculators and talking to people in the area.

Food costs, utility (air conditioning and heating) costs, etc. vary depending upon what part of the country you are moving to. We can provide you with living-cost statistics for all areas in the U.S.

3. Is the company (and the local industry) stable? If a company is paying for all or part of your relocation costs, they are investing in you over the long term. But there's always the risk that you'll uproot yourself and your family for an opportunity that fizzles out. It can happen that, if the company goes under, you could find yourself without friends or a support system in an unfamiliar community. That’s especially risky if you're expected to turn things around at a troubled company.

Therefore, you should consider what other opportunities are available in the area, should you find yourself without a job. Talking to your relocation expert can help you do your research in this area.

4. Who else would need to relocate? It's much easier (and cheaper) for an individual to relocate than it is for an entire family, especially one with children and two working spouses. You should consider your spouse's career goals, your kid's ages, and how invested your family is in the local community.

5. Is telecommuting a possibility? Before relocating yourself and your family, consider whether you or your spouse might telecommute instead of physically reporting to an office. Often, that depends on the culture of the organization. Within some companies, telecommuting is a way of life. People are all over the country because their clients are all over the country, so it really doesn't matter where you're living. That said, your spouse might be able to telecommute to his or her current job instead of searching for a new one, which could help ease the transition financially.

Using the services of a relocation expert will help you address these questions and the myriad of other topics that can complicate the relocation process. Salzman real estate Services is a long-time member of Worldwide ERC, an organization that specializes in assisting their clients relocate all over the world.

If you are considering moving in or out of the Pikes Peak area, we can help make it a problem-free process.

Call us at 800-667-6683, or, 719 598-3200. We would be happy to discuss your relocation needs.

 

JUST WHAT IS IT THAT A REALTOR DOES??

Many people think that all a Realtor does is put a “FOR SALE” sign in the front yard and wait for someone to come along and make an offer. But a good Realtor does much more than that.

We recently participated in the sale of a local residence that illustrates how an experienced Realtor can help both the Buyer and the Seller to achieve their goals in a “Win-Win” home-sale transaction.

We were asked to list a local home that was part of an estate sale. The three heirs of the estate lived in different states and wanted to dispose of their deceased father’s home.

Our inspection of the home and our analysis of the neighborhood comparables led us to recommend to the Sellers that some renovating on the inside of the home would be necessary to bring the property up to a competitive level. We also recommended a competitive, fair listing price.

The Sellers went along with our recommendations and we listed the home for sale.

Rather than sitting around waiting for someone to knock on our door with an offer, we contacted several prospective Buyers ….people who had spoken with us in the past about their interest in that particular neighborhood.

One of these prospective Buyers had always been a Renter, and was hesitant to take on the responsibilities of homeownership, but, after we explained to her that present market prices were lower than we would ever see again, that mortgage rates were historically low, and that her monthly payment for the house would be approximately 30% lower than she was currently paying for rent, she decided to take the plunge into homeownership.

Within one week after listing, both the Seller and the Buyer got exactly what they were looking for …a quick sale at a fair price.

That’s the kind of involvement that a good Realtor can bring to a transaction and the kind of commitment to the welfare of both parties that Buyers and Sellers have a right to expect from their Realtor.

Call us at 800-667-6683, or, 719 598-3200, to discuss your specific housing wants and needs. Let us help you achieve your real estate and/or investment goals.

 

MARK YOUR CALENDAR NOW FOR THE 15th Annual Southern Colorado Economic Forum

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum wiill be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

And please take note, you can click on the icon at the top of this email to listen to my latest podcast. ….

 

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

JOKE OF THE WEEK

Two deputies in the Sheriff's Office, one who had been in town for ten years and the other who had just transferred, answered an emergency call. When they walked into the house, they found the nude bodies of a man and a woman in the bedroom. They had been shot to death.

When they went to the living room, they found the body of a man with a gun at his side.

"No doubt about it," the new deputy said, "This was a double murder and suicide. This guy came home and found his wife in bed with somebody else and shot them both. Then he shot himself."

"You're right," the experienced deputy replied. "But I'll bet you when the sheriff gets here he's going to say, 'It could have been worse'."

"No way. You're on."

The old sheriff arrived at the scene. "No doubt about it," the sheriff said, shaking his head. "It was a double murder and suicide." After hesitating for a moment, the old sheriff looked his deputies in the eyes. "But, you know," he said, "it could have been worse."

The deputy who had lost the bet jumped up and shouted, "Sheriff, how could it have been worse? There are three people in this house, and all three of them are dead. It couldn't have been worse."

"Yes, it could," the sheriff retorted. "You see that guy there on the floor? If he had come home yesterday, that would be me!"

August 29, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

CSCC AND CSREDC UNIFY TO BRING MORE JOBS TO COLORADO SPRINGS

The Boards of Directors of the Greater Colorado Springs Chamber of Colorado Springs (CSCC) and the Colorado Springs Regional Economic Development Corporation (CSREDC) have decided to unify the two organizations to maximize their efforts to attract new jobs to the area.

In announcing the new, unified organization, Bill Hodgkins, Chair of the Board for CSCC said, “Both organizations are currently strong, but they will be even stronger together’.

Doug Quimby, Chair of the Board for CSREDC, stated, “We need integrated strategy for economic development, and a strong force to ensure it is successful. We now have the means and opportunity to do so”.

Quimby also stated, “Small business is the backbone of our economy. We support the Chamber’s key initiatives of fighting for small business, supporting our military and focusing on our defense economy. We believe this new organization can only reinforce these critical initiatives”

Editor’s note: We applaud this decision to focus the efforts of both of these organizations in attracting new jobs to our area. The Pikes Peak Area has everything a business could want to help them succeed and all we need is a vehicle for getting that message out to the rest of the country. This new organization should help us spread the word. …Want more proof of our great business environment, see the following item.

KIPLINGER’S PERSONAL FINANCE RATES COLORADO SPRINGS AMONG THE BEST

The September 2011 isssue of Kiplinger’s Personal Finance magazine rates Colorado Springs as the fourth best city in the nation for value.

Kiplinger’s states that “This burgeoning Western town is filled with transplants drawn by spectacular outdoor beauty, 300 days of sunshine a year, a relatively low cost of living and a vibrant business community that finds little conflict between economy and ecology”.

The article also points out that our city is home to more than a dozen colleges and actively woos companies with tax incentives and a highly educated workforce.

The city offers 150 parks and 260 miles of trails and the Pike National Forest, which borders the city, offers camping, fly-fishing, camping, biking, horseback riding and scenery that extends as far as the eye can see.

Rents and real estate are reasonable, too. The median home sells for less than $199,000 and monthly rent on a two-bedroom apartment is less than $800.

Editor’s note: Another indication of the health of our local economy is the fact that Colorado Springs foreclosure filings are down 32.6% from January 2010.

 

LAST WEEK’S ARTICLE ON INVESTMENT PROPERTY STIRRED UP A LOT OF INTEREST

We received a lot of feedback relating to the article in last week’s eNewsletter regarding investment property. Realtors and prospective Buyers from around the US contacted us to learn more about the opportunities that are now present in the market. We thought the response merited some further comments about this unique opportunity.

Just to review the window of opportunity that now presents itself to all prospective Buyers:

• Prices are ridiculously low …probably lower than you will ever see again
• Mortgage Rates are historically low… probably lower than you will ever see again
• The inventory of available homes is very high. It is a Buyers’ market and you have your ‘pick of the litter’ for both new and   resale homes, thanks to foreclosures and short sales.
• The high volume of ‘New Renters’ (thanks to foreclosures) has resulted in record low vacancy rates for rentals. Your investment property is almost guaranteed to rent.

And, to cite a couple of reasons to buy now

• Lenders are starting to tighten lending requirements and loans will soon become more difficult to obtain
• As of October 1, 2011, FHA maximum loan amounts will drop from $325,000 to $272,800 for most communities in the US, including Colorado Springs.

The Wall Street Journal, Wed. Aug 17, 2011 stated, “Investors can cover their monthly costs and make an 8% -12% profit pretty easily. We haven’t seen that in 20 years”.

As an example, let’s take a look at what we discussed with one of our clients just last week, as we helped him build his retirement portfolio with an investor property. The following figures are based on realistic estimates in our local; market.
Purchase price $200,000
Down Payment $50,000
Loan Amount $150,000

Using today’s investment interest rate of only 4.5% for non-owner occupied property, on a 30-year fixed loan (and assuming a tax bracket of 33%), here’s how the numbers work out:

Monthly payment P&I $760
Estimated taxes $120
Estimated Insurance $ 80
Total Monthly Payment $960

Typical one-year tax deduction
Interest deduction $6,700
Estimated property tax $1,440
Total deduction $8,140

Annual Income-tax savings $2,686

Net cost of the property
Monthly payment $ 960
Less tax savings $(224)
Net cost $736

The monthly rental net income (after estimating repairs and vacancies) would be $1,054

On a monthly basis, that works out to:
Income $1,054
Loan cost $ (736)
Income before depreciation $ 318
Depreciation per month $ (390)
Actual loss per month ($72)

Bottom line: This investment property would actually cost you only $72 a month.

Further, the estimated annual depreciation would be $4,675.

Now, let’s look at the long-term numbers. If you held this property for 10 years, assuming typical inflation and appreciation, you could expect an average annual growth of 3% per year. Thus, the market value would go from $200,000 to $260,000.

At the end of the ten years, your balance on the loan would be at $120,134 and your equity would be $139,866 from your original investment of $50,000. That’s 27.97% growth per year as your rate of return.

Finally, in the event that there is absolutely no growth for ten years, (and not even the most pessimistic economists are predicting that), your rate of return would still be approximately 16%. In a zero-growth economy, that would be fantastic !!

The icing on the cake is that these figures don’t even take into account your annual tax benefits/deductions. …That alone puts an additional $8,140 per year in your pocket.

And you thought Stocks were the way to go

If you would like us to go into more personal detail about these numbers, please call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month …

 

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak region

 

JOKE OF THE WEEK

10 Office Rules:

10. Never walk without a document -- People with documents look like hardworking employees headed to important meetings. People with nothing in their hands look like they're headed for the cafeteria. Above all, make sure you carry loads of stuff home with you at night, thus generating the false impression that you work longer hours than you really do.

9. Use computers to look busy -- Any time you use a computer, it looks like "work" to the casual observer. When you get caught by your boss -- and you will get caught -- your best defense is to claim you're teaching yourself to use new software, thus saving valuable training dollars.

8. Messy desk -- only top management can get away with a clean desk. For the rest of us, it looks like we're not working hard enough. Build huge piles of documents around your workspace. Pile them high and wide. If you know somebody is coming to your cubicle, bury the document you'll need halfway down in an existing stack and rummage for it when he/she arrives.

7. Voice mail -- Never answer your phone if you have voice mail. People don't call you just because they want to give you something for nothing -- they call because they want YOU to do work for THEM. If somebody leaves a message for you and it sounds like impending work, respond during lunch hour when you know they're not there

6. Look impatient and annoyed -- According to George Costanza, one should also always try to look impatient and annoyed to give off the impression that you're always busy.

5. Leave the office late -- Always leave the office late, especially when the boss is still around. Make sure you walk past the boss' room on your way out. Send important e-mails at unearthly hours (i.e. 9:35pm, 7:05am, etc.) and during public holidays.

4. Creative sighing for effect -- Sigh loudly when there are many people around, giving the impression that you are under extreme pressure.

3. Stacking strategy -- It is not enough to pile lots of documents on the table. Put lots of books on the floor, etc. (thick computer manuals are the best).

2. Build vocabulary -- Read up on some computer magazines and pick out all the jargon and new products. Use the phrases freely when in conversation with bosses. Remember, they don't have to understand what you say, but you sure sound impressive.

1. MOST IMPORTANT -- DON'T forward this to your boss by mistake!

September 12, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

 

WHEN YOU DECIDE TO INVEST, LET US HELP YOU AVOID THE PITFALLS

As we have been emphasizing in recent issues of our Enewsletters, there are great opportunities for investors in our Colorado Springs real estate market. Low prices, low mortgage interest rates, large inventories of available homes, low vacancy rates, etc. all combine to offer a window of opportunity for investment that may never open again.

In fact, according to Realtor Magazine, more homes are turning into rentals. Nearly 35% of occupied homes were rented in 2010, which is a 33.8% increase from 2000.

Furthermore, Hotpads.com, a real estate research firm, states that the vacancy rate for rentals is at its lowest level since 2003 and the average nationwide rent increased to $1,320 in 2010, for a jump of 11.6%.

However, smart investors in real estate should be aware of some of the potential problems they might run into, when they jump into the investment market. As the Wall Street Journal points out (Sept. 10-11, 2011), first-time investors frequently make one or more of the following mistakes:

• Confusing a cheap deal with a good deal. Location is still the most important factor for an investor. Are renters likely to want to live in the property? That’s where we can help you analyze the specific local neighborhood history.
• Overlooking key costs. Closing costs, maintenance, etc. will all impact your eventual profit. We are very aware of all of these ‘add-ons’ and can help you evaluate the true cost of your prospective property.
• Forgetting that time is money.You lose money when your property is empty, whether you are painting it, or between tenants. Knowing how to adjust your rents accordingly is something we can help you with.
• Assuming you will sit back and watch the money roll in. Unless you are willing to devote yourself exclusively to maintaining your rental property, you will probably need the assistance of a good property management firm to screen tenants, handle maintenance, etc. We can help you contact a reputable individual or company to handle the day-to-day management issues that are a necessary part of your investment.
• Underestimating repair costs. Unless you have experience with home repairs and intend to do your own maintenance, you will probably be surprised by the routine costs involved in the maintenance of rental properties. (Many experts recommend setting aside a reserve fund to handle such maintenance). Again, we will be happy to work with you in determining how much ‘set-aside’ you should plan for.
• Assuming that owning a rental is the same as owning a home. You are willing to put up with many small inconveniences and defects in your own home that renters will not accept. Here again, a good property manager can take over that aspect of investment property. Give us a call to discuss this aspect of investment.

Investors used to aim for rents that amounted to 1% of the purchase price of their investment. (That’s $1000 a month in rent for a $100,000 home). That equals an annual gross return of 12%

Today, however, because of the factors discussed above, many investors are getting rents that equal 2% of the purchase price. That’s quite an inducement to acquire an investment property before the window closes on this opportunity.

Call us at 598-3200, or (800) 677-MOVE(6683) and we will be happy to chat with you about the investment opportunities available in our local market.

 

TWO MORE REASONS FOR BUYING NOW !!!!

On October 1, 2011, the FHA maximum loan amount available from FHA will drop in most cities, including Colorado Springs, from $325,000 to $272,200. Experts warn that this change in policy will prevent Fannie Mae and Freddie Mac from financing a significant segment of the real estate market and will put a lot of Buyers out of the market.

This drop in the conforming loan limit is expected to affect 2% of all homes nationwide.

Another reason for buying now is that many lenders are getting reluctant to lend to anyone except those who have ‘pristine credit’. Even the Wall Street Journal (Tuesday, Sept. 6, 2011) noted that many prospective Buyers with excellent credit have been turned away by some lenders.

Fortunately, we have good, working relationships with our local lenders and we have not had any trouble getting our clients financed. If you have had any problems in this area, give us a call. (598-3200, or (800) 677-MOVE(6683).

Bottom line: Better Buy Now.!!

 

THE BROOKINGS INSTITUTE SAYS COLORADO SPRINGS IS POISED FOR RECOVERY

According to a recent study by the Brookings Institute, Colorado Springs is ninth among the nation’s 100 largest metropolitan areas in a ranking looking at the resiliency of an area’s industries and the gap between the education of its workforce and the needs of its employers.

Jonathan Rothwell, a Brookings senior research analyst and the author of the report, stated, “There is no reason Colorado Springs shouldn’t bounce back once the nation’s economy begins improving. Colorado Springs has one of the best balanced economies between workers’ education related to the needs of their jobs”.

 

LATEST STATISTICS FOR COLORADO SPRINGS

The most recent Sales and Listing report of statistics for the Pikes Peak area, published by the Pikes Peak Association of Realtors, shows that home sales in August jumped from a year ago by the biggest percentage in nearly 1 ½ years.

Sales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. This was the largest increase since March of 2010, when sales benefited from the federal tax credit for first-time homebuyers (A program which expired in June of 2010).

The August increase followed an 11.9% gain in July, the first indication of improvement after sales fell in 10 of the previous 12 months.

Most experts agree that the current rise in sales is due to the low interest mortgage rates which are currently available.

Click here for the latest Sales and Listing statistics for the Pikes Peak area

 

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

 

JOKE OF THE WEEK

We thought you might be interested in the Winner of the Top Ten Dumbest Criminals of 2010

THE WINNER!

A Charlotte, NC, a man purchased a case of very rare, very expensive cigars. He proceeded to insure them against, among other things, fire.

Within a month, having smoked his entire stockpile of cigars and without having made even his first premium payment on the policy, the man filed a claim against the insurance company. In his claim, the man stated the cigars were lost "in a series of small fires."

The insurance company refused to pay, citing the obvious reason that the man had consumed the cigars in the normal fashion. The man sued....and won.

In delivering the ruling the judge agreeing that the claim was frivolous, stated nevertheless that the man held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure against fire, without defining what it considered to be "unacceptable fire," and was obligated to pay the claim.

Rather than endure a lengthy and costly appeal process the insurance company accepted the ruling and paid the man $15,000 for the rare cigars he lost in "the fires." After the man cashed the check, however, the company had him arrested on 24 counts of arson. With his own insurance claim and testimony from the previous case being used against him, the man was convicted of intentionally burning his insured property and sentenced to 24 months in jail and a $24,000 fine.

The moral of the story?

Darned if we can tell.