Real Estate Information Archive

October 1, 2012

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

 

THE SOUTHERN COLORADO ECONOMIC FORUM WAS A GREAT SUCCESS

The 16^th annual SCEF at the Antlers Hilton Hotel on Sept. 28, 2012 was a “SOLD OUT” success. Over 600 people, representing local businesses and organizations, heard a variety of presentations by experts in the field of market predictions. The overall mood at the forum was very positive about our local economic picture over the next few years, but was tempered by some concerns about the effects of cut-backs in our local military presence and possible looming tax increases, either of which could weaken our recovery. We think the keynote speaker summarized the big picture very well, and we are reprinting some of his comments, below.

 

SPEAKER AT FORUM SEES ECONOMIC RECOVERY PICKING UP SPEED

The Gazette, September 28, 2012 – Wayne Heilman

At the Southern Colorado Economic Forum which took place on Friday, Sept. 28, 2012, the keynote speaker painted a very optimistic economic picture of the coming year. The following comments are excerpted from Wayne Heilman’s Gazette article which reviewed Mr. Paulsen’s presentation.

The U.S. economy is already gearing up to a faster growth rate as evidenced by a wide variety of economic indictors ranging from accelerating housing construction to increased bank lending, economist and top Wells Capital Management executive, Jim Paulsen, said Friday in Colorado Springs.

“The growth of the national economy is not enough to please everyone, but this recovery is very similar to the recoveries of the last 25 years,” said Jim Paulsen, chief investment strategist for Wells Capital Management, a unit of Wells Fargo & Co., and keynote speaker at the Southern Colorado Economic Forum. Economic growth, he said, starts to “gear up when confidence finally starts to grow. That is happening now. If you want consumer confidence to grow, get the unemployment rate down — and it is down a full percentage point in the past year.”

Paulsen pointed to declining unemployment, rising consumer confidence, higher household net worth and lower debt, increasing housing construction and prices, more bank lending, gains in state tax collections and exports and reduced financial market volatility as indicators that the U.S. economic recovery is gaining strength. He predicted that U.S. economic growth would accelerate next year to 3 percent from the current 1.3 percent and that the nation’s unemployment rate would fall from 8.1 percent now to near 7 percent by the end of next year.

“I’m not saying that growth will explode, but it will feel a lot better — it will feel like a recovery,” Paulsen told more than 600 business and civic leaders attending the half-day event at the Antlers Hilton hotel.

“If the job market is so dead, than why are consumer confidence, housing construction and auto sales all growing right now? While unemployment is still way too high, the combined message of all these indicators are that the economy is getting better. I see a lot of evidence that economic growth is starting to gear up.”

Paulsen, who has now been the forum’s keynote speaker for three consecutive years, predicted at last year’s forum that the recovery from the 2007-08 recession would gain strength in the next year and “gear up” late this year. He noted both Friday and last year that recoveries since 1985 have taken longer to gain strength, but tend to last longer as a result of the slowing growth of the U.S. labor force. That slowdown is a product of baby boomers producing fewer children to fuel labor force growth, which is a key ingredient for economic growth.

The biggest threat to the recovery is the Chinese economy falling into a recession, which would end the U.S. recovery and throw the nation’s economy back into a recession, Paulsen said. His overall message, though, was more optimistic than the forum’s forecast for the Colorado Springs economy; the forum sees the local economy remaining flat at best, and it could be pushed into a recession if Congress and the president don’t avoid both the so-called “fiscal cliff” i.e.— automatic cuts to the Department of Defense budget scheduled to take effect in January and the expiration of a variety of tax cuts at year’s end.

These predictions should encourage our local Buyers and Sellers of homes, homebuilders, retailers, contractors, appliance stores and clothing stores which are now beginning to experience a surge in purchasing that has resulted from the Waldo Canyon fire.

 

PACE OF LOCAL HOMEBUILDING EXPECTED TO KEEP ACCELERATING

The Gazette – September 26, 2012- Rich Laden

The pace of homebuilding has rebounded nicely this year in the Colorado Springs area and should continue to gain steam in 2013 — and would grow even faster if the local economy added significant numbers of jobs, according to an analysis by a national housing research firm.

Pent-up demand on the part of homebuyers, combined with current homeowners who have seen their property values improve and are now seeking to move up, have propelled homebuilding, John Covert, Colorado/New Mexico director of Houston-based Metrostudy told about 25 members of the Housing and Building Association of Colorado Springs on Wednesday.

“Rates are still at historic lows, the existing home market is in better shape than it’s been in the last several years. Listings are way down, pricing stability has occurred and actually some pricing power has returned to the re-sale market,” Covert said. “That’s letting people get out of those homes to go buy a new home.”

If the local economy were to add more jobs, especially positions in which employees come to the Springs from elsewhere, the homebuilding industry could see even stronger demand. However, it does take a while for those newcomers to actually buy a house, Covert said.

In the shorter term, pent-up demand will continue to drive the market in the next year or so and homebuilding activity should increase in 2013 over 2012, he said.

Single-family building permits through August of this year totaled 1,476, already topping the 1,399 for all of 2011, according to the latest Pikes Peak Regional Building Department figures.

The pace of home construction has improved so much that the Colorado Springs market is beginning to run low on new home sites, Covert said. Local builders now have a 33-month supply of lots upon which to build, about one-third the inventory they had four to five years ago, he said. The city of Fountain and the Briargate development on the Springs’ north side, popular housing areas, each have only an 18-month supply of lots.

The good news for homebuilders means some of them have added workers and are reinvesting in their companies, Covert said.

For homebuyers, however, the improvement in homebuilding means higher prices ahead. Builders’ labor and material costs are rising, Covert said, and the scarcity of lots means land prices will be going up — increases that would be passed on to buyers.

Our next Enewsletter on October 8, will have all local housing statistics as of September 30, 2012 and the first three quarters of this year.

 

housing market DISPLAYS NEW VIGOR AS PRICES RISE

The Wall Street Journal – September 27, 2012

Home prices notched their strongest year-to-date gains since 2005, climbing 5.9% through July and signaling the housing market's steady trudge toward recovery.

"Housing is no longer a negative. It is turning positive and we see the data reflecting that," said Ivy Zelman, chief executive at research firm Zelman & Associates.

Home prices typically are strongest in the summer, the busiest season for home sales, before declining later in the year. But the 5.9% rise far surpasses the 0.4% gain seen through the same period last year and the 2% gain in 2010.

Construction of single-family housing in August reached its highest level in more than two years, the Commerce Department said last week.

But rising demand, especially at the low end, is putting upward pressure on prices as traditional buyers—as opposed to investors—feel more confident about jumping into the market. In some cities, diminished supply has given rise to bidding wars—and headaches for would-be buyers.

The bottom line: Better Buy Now !! It will cost you more tomorrow !!

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss what this could mean to your financial security.

 

HOW HIGH WILL HOUSING PRICES BE IN 2016?

Daily real estate News | Monday, September 24, 2012

A quarterly survey of more than 100 economists shows growing optimism for the real estate market when it comes to housing prices. The majority of the economists surveyed say they expect home prices to steadily increase for the next four years.

The economists surveyed expect home prices to rise 2.3 percent this year over the fourth-quarter of 2011, according to the survey conducted on behalf of Zillow. In 2013, they expect prices to rise 4.7 percent; 8 percent in 2014; 11.4 percent in 2015; and 15.2 percent in 2016.

"This is further evidence that we're seeing a true recovery in the housing market," says Stan Humphries, Zillow's chief economist. "Not since mid-2010—in the midst of the homebuyer tax credits—have we seen this group so bullish on housing. It's refreshing to see this optimism at a time when the market seems to be making an organic recovery, in the absence of an artificial stimulant like the tax credits."

Not to be repetitious, but the bottom line is: Better Buy Now !! It will cost you more tomorrow !!

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss your new home

 

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 to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, 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 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 40 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.

 

JOKE OF THE WEEK

Football Rules from Around the World

SOCIALIST FOOTBALL: After you score, the state takes half your points and redistributes them to the opposing team.

COMMUNIST FOOTBALL: After you score, the state takes away all your points and gives you back what the Central Bureau of Points designates as appropriate (according to your needs).

FASCIST FOOTBALL: After you score, the state takes away all your points and sells them back to you.

NORTH KOREAN FOOTBALL: After you score, the state takes away all your points and shoots your team.

BUREAUCRATIC FOOTBALL: After you score, a tax of 80% will be imposed on the points. 10% of your points will be given to the scoring disadvantaged, 10% of the points will be given to the opposing team as an incentive "not to score," while 60% of the points will be used by the state for administration.

NFL FOOTBALL: Nobody but a replacement referee can take away your points.

Sept. 24, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

16^TH ANNUAL SOUTHERN COLORADO ECONOMIC FORUM TO BE HELD ON THIS COMING FRIDAY, SEPT. 28, 2012.   WE HOPE TO SEE YOU THERE !!!

Where: Antlers Hilton, 4 S. Cascade Ave.

When: 7 to 11:30 a.m. Sept. 28

What are the benefits of Attending the Forum ?

The Southern Colorado Economic Forum is the premier resource for local economic information. This information is provided for—and supported by—local businesses. Salzman real estate Services is proud to have been a Supporting Member of the forum since its inception 16 years ago.

The Forum is an opportunity for you to learn about the trends and dynamics occurring nationally, statewide, and in our community, and how they will impact your business.

The Forum is a tremendous networking opportunity; you’ll have the chance to meet experts from a variety of industries, UCCS and other businesses that have an interest in the local economy.

Here are some highlights from this Friday’s Southern Colorado Economic Forum:

• Keynote address: “National and International Outlook” by Jim Paulsen, Chief Investment Strategist, Wells Capital Management.
• Forum results: Economic Conditions in the Pikes Peak Region and Outlook for the Next 12 Months presented by Fred Crowley, PhD, and Tom Zwirlein, PhD.
• Business Symposium: The Changing Health Care Environment…”Leveraging Economic Opportunities for the Pikes Peak Region”, moderated by Deborah Chandler, Executive VP and CEO of Colorado Springs Health Partners and featuring five panelists.

Participants who attend the Forum will receive a comprehensive report filled with data, statistics and trends. The content can help you uncover new opportunities, make better business decisions, deliver more compelling sales presentations and position your business as experts who are “in the know.”

Attending this year’s Economic Forum and obtaining the annual report is a great way to jump start your business planning for next year.

To register for the forum, and to see a video about the presenters at this year’s forum, CLICK HERE.

 

LOCAL ECONOMY DIVIDED AMONG GOOD AND BAD INDICATORS

Colorado Springs Business Journal - September 21st, 2012

For the past 16 years, the Southern Colorado Economic Forum, which includes senior economist and UCCS senior instructor Fred Crowley, has been telling it like it is regarding the local economy. The forum examines and compiles the numbers that describe the economic landscape — past, present and future.

But even the forum’s fortune-tellers are having difficulty producing a 2013 forecast. There are too many international, national and local events in motion. The so-called “fiscal cliff” — spending cuts kicking in along with expiring tax cuts — could cause recession in 2013 or at least curtail consumer spending. But locally, rebuilding in the aftermath of the Waldo Canyon fire could create hundreds of jobs a year for the next five years and help make up for the losses in other job sectors.

People in Colorado Springs bought more cars, electronics, furniture and clothing in 2011, which helped increase retail sales by 8.5 percent, or $1 billion, to $13.8 billion.

There has also been some unexpected good rolling into Colorado Springs by way of new housing construction. By year’s end, single family permits are expected to be up 47 percent over 2011. In the first eight months of this year, there have been more housing permits issued than all of last year. The reasons vary from pent-up demand to the historically low interest rates of 3.5 percent. And apartment buildings are having their strongest year since 2002, expecting to end the year at 750 new units.

“It tells me we are definitely coming back,” Zwirlein said. “We are not near the heydays of 2004-05, but we are well on our way to a very healthy rebound in housing construction.”

Then there is the hope of a growing health-care sector around a University of Colorado branch medical campus at UCCS. University of Colorado Health, which takes over daily operations of Memorial on Oct. 1, has agreed to pay $3 million a year for the 40-year lease term to the University of Colorado School of Medicine, to be used to create a branch medical campus in Colorado Springs.

“Certainly one of the growth areas over the past 10 years has been in the health-care sector,” Zwirlein said. “We are very interested in seeing how having a university hospital in Colorado Springs will eventually pan out.”

In eight cities with university hospitals, job creation in the health care sector outpaced all other job creation, Crowley said. In those eight cities, health care jobs were 160 percent of all jobs created, meaning without health care jobs there would have been a decline. The health care sector, Crowley said, grows employment faster, grows wages faster and grows business faster then any other sector.

“What I hope happens — and it won’t happen this year, but maybe in 2014 — there will be health care expansion on some level. The health care industry — they do create jobs. We need to move in that direction and make it grow.”

As an example, the Anschutz Medical campus in Aurora was built in 2004 and is now home to six professional schools. “They’ve created jobs, jobs, jobs,” Zwirlein said. “That is now Aurora’s financial engine and it will be their financial engine for a long time to come.”

 

MAYOR BACH INTRODUCES BUSINESS INCENTIVES, NEW AERONAUTICAL ZONE

In an effort to spur economic and business activity, Colorado Springs Mayor Steve Bach has created a standard set of economic “accommodations” for new and expanding companies, as well as a Commercial Aeronautical Zone for the Colorado Springs Airport.

Saying the accommodations – essentially economic incentives – would be available for a “limited time only,” Bach said he felt that it was essential to have a standard set of incentives for businesses interested in moving or expanding to Colorado Springs.

“This way, we don’t address it when they come to us,” he said. “It’s standardized, it’s right there for companies to see. We have to do something to address unemployment, particularly in Southeast Colorado Springs.”

The incentives are largely tax breaks and tax credits for Colorado Springs’ share of business personal property and its sales taxes. The city’s portion of those taxes are essentially erased in the newly created Commercial Aeronautical Zone, where the city hopes to attract commercial aeronautical businesses that are engaged in the manufacture, maintenance, repair or overhaul of aircraft.

To be eligible, companies must be primary employers, must create 10 new jobs and must have $1 million in new capital investment. Retail companies must be a “unique business” to the Colorado Springs area.

City Council will approve every deal, Bach said, and the deal can be pulled at any time if the company fails to provide a promised number of jobs.

To learn more about this program, contact the Mayor’s office at 385-5900.

 

THE HORRIBLE WALDO FIRE DID A LOT OF DAMAGE, …BUT IT ALSO CREATED REBUILDING OPPORTUNITIES FOR OUR LOCAL BUSINESSES

The Waldo Canyon fire wiped out 346 homes, damaging hundreds more, and tourism took a beating this summer when visitors were scared off by images of fire on national television. But the after-fire building may prove to be a welcome addition to the local economy, Fred Crowley, Southern Colorado Economic Forum chief economist, said.

Between new construction and refurnishing the homes, the post-fire activity could create 3,800 jobs over a five-year period — jobs that could generate $20 million per year in income and $790,000 a year in sales taxes.

Initial insurance claims of $353 million suggest the economic impact of rebuilding could be significant, he said. And the refurnishing is not just for those homes that burned to the ground, but for the many homes that suffered severe smoke damage.

“That’s where these numbers just get mind-boggling,” Crowley said.

Mountain Shadows residents could spend $213 million to replace the items in their homes, Zwirlein said. “I was amazed when you look at the insurance claims — the proportion that goes toward rebuilding the home and proportion that goes to restocking it — those restocking numbers are huge.”

In the meantime, the forum’s predictions for 2013 include more housing permits, reduced federal expenditures, continued low interest rates, expiring Bush-era tax cuts, and lowered economic activity due to large reductions in federal expenditures and increases in tax rates.

“There are two things the region needs,” Crowley said. “Jobs and high-paying jobs.”

 

ECONOMISTS BULLISH ON HOUSING RECOVERY

By Inman News, Thursday, September 20, 2012.

Home prices will see steady increases through 2016 starting this year, according to a quarterly survey of more than 100 economists, real estate experts and investment strategists.

Economists now forecast home prices will rise 2.3 percent in 2012 from fourth-quarter 2011, and see further cumulative rises of 4.7 percent in 2013, 8 percent in 2014, 11.4 percent in 2015, and 15.2 percent in 2016.

"This is further evidence that we're seeing a true recovery in the housing market," said Stan Humphries, Zillow's chief economist, in a statement.

"Not since mid-2010 -- in the midst of the homebuyer tax credits -- have we seen this group so bullish on housing. It's refreshing to see this optimism at a time when the market seems to be making an organic recovery, in the absence of an artificial stimulant like the tax credits."

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss what this could mean to your financial security.

 

AUGUST EXISTING-HOME SALES AND PRICES RISE

National Association of Realtors - September 19, 2012

Existing-home sales continued to improve in August and the national median price rose on a year-over-year basis for the sixth straight month, according to the National Association of Realtors®.

Total existing-home sales,  which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 7.8 percent to a seasonally adjusted annual rate of 4.82 million in August from 4.47 million in July, and are 9.3 percent higher than the 4.41 million-unit level in August 2011.

Lawrence Yun , NAR chief economist, said favorable buying conditions get the credit. "The housing market is steadily recovering with consistent increases in both home sales and median prices. The West and Florida markets are experiencing inventory shortages, which are placing pressure on prices."…and that includes Colorado Springs !!

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.60 percent in August from a record low 3.55 percent in July; the rate was 4.27 percent in August 2011.

The national median existing-home prices for all housing types was $187,400 in August, up 9.5 percent from a year ago. The last time there were six back-to-back monthly price increases from a year earlier was from December 2005 to May 2006. The August increase was the strongest since January 2006 when the median price rose 10.2 percent from a year earlier.

Total housing inventory at the end August rose 2.9 percent to 2.47 million existing homes available for sale, which represents a 6.1-month supply 4 at the current sales pace, down from a 6.4-month supply in July. Listed inventory is 18.2 percent below a year ago when there was an 8.2-month supply.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss how rising home prices might affect your decision to buy now !!

 

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 to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, 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 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 40 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.

 

JOKE

Here are some actual headlines from around the country

Include Your Children When Baking Cookies

Something Went Wrong In Jet Crash, Expert Says

Police Begin Campaign To Run Down Jaywalkers

Safety Experts Say School Bus Passengers Should Be Belted

Survivor Of Siamese Twins Joins Parents

Iraqi Head Seeks Arms

Panda Mating Fails; Veterinarian Takes Over

British Left Waffles On Falkland Islands

Lung Cancer In Women Mushrooms

Teachers Strike Idle Kids

Obama Wins On Budget, But More Lies Ahead

Enraged Cow Injures Farmer With Ax

Plane Too Close To Ground, Crash Probe Told

Miners Refuse To Work After Death

Juvenile Court To Try Shooting Defendant

Stolen Painting Found By Tree

Killer Sentenced To Die For Second Time In 10 Years

Never Withhold Herpes Infection From Loved One

War Dims Hope For Peace

If Strike Isn't Settled Quickly, It May Last A While

Cold Wave Linked To Temperatures

Enfields Couple Slain, Police Suspect Homicide

Red Tape Holds Up New Bridge

Typhoon Rips Through Cemetery; Hundreds Dead

Man Struck By Lightening Faces Battery Charge

New Study Of Obesity Looks For Larger Test Group

Astronaut Takes Blame For Gas In Spacecraft

Arson Suspect Held In Massachusetts Fire

Local High School Dropout Cuts In Half

Hospitals Are Sued By 7 Foot Doctors

Sept. 16, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

COLORADO IS ONE OF THE 5 STRONGEST PERFORMING HOUSING MARKETS IN THE USA
Daily real estate News | Tuesday, September 11, 2012

Several real estate markets are showing signs of recovery, with median home prices and sales rising. But which markets are showing some of the strongest signs of recovery?

24/7 Wall St. recently evaluated home price changes for the year ending in July, foreclosure data, the unemployment rate, and other factors to help determine which housing markets are performing the strongest.

The states that emerged on top of the list are:
1. Arizona
2. Idaho
3. Utah
4. South Dakota
5. Colorado - Home price change in the last year: +7.3%. Median home price: $240,000

And keep in mind that Colorado Springs historically beats the rest of the state in these areas !!!

TRULIA SAYS BUYING A HOME IN COLORADO SPRINGS IS CHEAPER THAN RENTING
TruliaTrends – Sept. 13, 2012

The most important housing decision that most consumers face is whether to rent or to buy. So to help them with this decision, Trulia took a look at the key market factors affecting the cost of homeownership. First off, asking home prices have risen by 2.3% year over year in August (3.8% excluding foreclosures); however, rents have risen more (4.7%). This means that prices are lower relative to rents than they were a year ago.

But more importantly, mortgage rates have fallen: the best rates this summer have been around 3.5%, while last summer rates were closer to 4.5%. Based on asking prices and rents during the summer of 2012, buying is now cheaper than renting in the 100 largest U.S. metros. There is no market where the financial decision is even close, so long as you plan to stay in the home for at least seven years, get 3.5% mortgage, and itemize your tax deductions.

As noted in the Trulia survey of the top 100 metro areas in the US, the monthly cost of homeownership in Colorado Springs is $741. The monthly cost of renting is $1,291. That’s a difference of 43%, or, $550 per month more in your pocket.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss what this could mean to your financial security.

FEWER HOMEOWNERS UPSIDE DOWN ON MORTGAGES
THE GAZETTE September 12, 2012 12:04 PM

The picture has brightened for local homeowners who had been underwater on their properties.
In Colorado Springs, 19.9 percent or 30,584 of all residential properties with a mortgage were in negative equity during the second quarter of this year, according to a report released Wednesday by California-based housing data firm CoreLogic.

Negative equity refers to owners who owe more on their properties than what they are worth — known as being underwater or upside down. A decline in home values, an increase in mortgage debt or a combination of the two contribute to negative equity, according to CoreLogic.

The latest Colorado Springs figure was an improvement from the first quarter, when 23.4 percent or 35,833 local properties were underwater, CoreLogic’s report shows. During the second quarter of 2011, the figures were 22.1 percent or 34,109 properties.

Colorado Springs’ figures mirror state and national trends:
• In Colorado, 18.2 percent of residential property owners were underwater in the second quarter, compared with 20.7 percent in the first quarter and 20.6 percent in the second quarter of 2011.
• Nationally, 22.3 percent of all residential properties with a mortgage were underwater in the second quarter, compared with 23.7 percent or in the first quarter and 22.5 percent in the second quarter of last year.
• Nevada had the highest percentage of mortgaged properties in negative equity — 59 percent, according to CoreLogic.

Soaring home prices during the spring and summer, lower inventory levels and declining numbers of bank-owned home sales all have contributed to the improvement in the numbers and percentages of upside down properties, Mark Fleming, CoreLogic’s chief economist, said in a news release.

It’s obviously time for Sellers to put their homes back on the market. Prices are rising and there is a shortage of “homes for sale”.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss listing your home.

GOOD NEWS FOR HOMEBUYERS - FED MOVES TO KEEP RATES LOW
Daily real estate News | Friday, September 14, 2012

The Federal Reserve announced Thursday that, in an effort to re-ignite economic recovery, it was taking aim at mortgage rates — a move that will likely take rates even lower from their current record lows.

The Federal Reserve announced it will purchase $40 billion of mortgage-backed securities that will help boost the recovery in the housing market. What’s more, the central bank said that it will continue with the purchase program until the economy shows greater improvement, particularly with unemployment.

"These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative," according to the Fed in a public statement.

As mortgage rates sink lower, home shoppers have been taking advantage. The Mortgage Bankers Association announced this week that mortgage applications for home purchases were up 8.1 percent for the week ending Sept. 7. Mortgage applications for purchases also were up 7 percent from year-ago levels, MBA said.

"While low interest rates impose some costs, Americans will ultimately benefit most from the healthy and growing economy that low interest rates promote," Fed Chairman Ben Bernanke said Thursday following the Fed committee’s meeting.

SURVEY: HOMES ARE SELLING FASTER
Daily real estate News | Friday, September 07, 2012

Sales are quickening their pace as the time to sell a home decreases and falls more in line with a “balanced” housing market, according to new research by the National Association of REALTORS®.

The median time a home listed for sale was on the market in July was 69 days, down from 98 days one year earlier. Broken down further, one-third of homes purchased in July were on the market for less than a month, and one in five of homes purchased in July were on the market for at least six months.

“As inventory has tightened homes have been selling more quickly,” says Lawrence Yen, Nar’s chief economist. “A notable shortening of time-on-market began this spring, and this has created a general balance between home buyers and sellers in much of the country. This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.”

By the end July, a 6.4-month supply of homes were on the market at the current sales pace. That is 31.2 percent below year-ago levels, when there was a 9.3-month supply.

With supplies of homes tighter, economists expect home prices to continue their trend upward.

“Our current forecast is for the median existing home price to rise 4.5 to 5 percent this year and about 5 percent in 2013, which is somewhat stronger than historic norms because of the inventory shortfall that is most pronounced in the low price ranges,” Yen says.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss how rising home prices might affect your decision to buy now !!

 

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 to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, 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 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 40 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 last, but not least… to all of our Jewish friends and clients, Happy New Year – 5773.

JOKE

A local United Way office realized that the organization had never received a donation from the town's most well-entrenched politician. The person in charge of contributions called him to persuade him to contribute.

"Our research shows that out of a yearly income of at least $500,000, you give not a penny to charity. Wouldn't you like to give back to the community in some way?"

The politician mulled this over for a moment and replied, "First, did your research also show that my mother is dying after a long illness, and has medical bills that are several times her annual income?"

Embarrassed, the United Way rep mumbled, "Um ... no."

The politician interrupts, "or that my brother, a disabled veteran, is blind and confined to a wheelchair?"

The stricken United Way rep began to stammer out an apology, but was interrupted again.

"or that my sister's husband died in a traffic accident," the politician's voice rising in indignation, "leaving her penniless with three children?!"

The humiliated United Way rep, completely beaten, said simply, "I had no idea..."

On a roll, the politician cut him off once again, "So if I don't give any money to them, why should I give any to you?"

September 10, 2012

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

IT’S “THANK YOU” TIME

Over the past 40 years of selling real estate in the Colorado Springs area, we have been fortunate enough to establish a large network of clients and friends. As a matter of fact, most of our sales are sent to us by this loyal group. As a result, we haven’t had to use traditional advertising very heavily. We appreciate the wonderful support that our network has given us. ....We couldn’t have done it without you !!!

However, as we celebrate our 40 years of history in the Colorado Springs area, we felt it was time to formally thank our many friends for their support and to get acquainted with newcomers to our area by taking out ads in both The Colorado Springs Business Journal and the Gazette. We hope you enjoy them.

We invite our readers to CLICK HERE to see our ad which appeared on Friday, Sept. 7 in the CSBJ. Our Gazette ad will appear within the next few weeks. (Please ...no comments about how I look older!!)

Thanks, everybody for your referrals and your support.

Harry

WHAT’S HAPPENING TO OUR LOCAL HOME PRICES ??

The outlook for our local real estate market is terrific. The latest statistics issued by the Pikes Peak Association of Realtors shows that our single-family home sales in August were 898. That’s up 7.9% over August 2011. In fact, our local home sales have increased in 12 of the last 14 months.

Our sales prices have also shown a healthy increase over August, 2011. Our average sales price of $235,711 is 6.5% over August, 2011 and our median sales price of $210,500 is 10.2% over August, 2011. To put this into perspective, keep in mind that the national increase in home prices over August, 2011 is only 3.8%. As usual, the Colorado Springs real estate market is the envy of the nation.

Can this healthy growth continue? It certainly can and will, especially considering that our inventory of homes for sale is decreasing. Our present inventory of 3863 is 13.8% lower than last year.

Not to keep repeating myself, but NOW IS THE TIME TO BUY !!!
If you would like to see a complete overview of our local real estate market, CLICK HERE for the complete monthly PPAR report.

 

MEDIAN DAYS ON MARKET SHRINKS TO 69
Inman news, Wednesday, September 5, 2012.

The National Association of Realtors announced today that the median days on the market for listed homes had shrunk to 69 days. In announcing this new metric of 69 median days on market. This indicates a dwindling inventory. In fact, NAR statistics show median days on market is down 29.6 percent from a year ago, from 98 days in July 2011 to 69 days in July 2012. This is good news for Sellers, but, for Buyers, it indicated that home prices will continue to rise and bidding wars for homes might be on the horizon.

From 1987 through 2011, time on market was typically 6.9 weeks, NAR said. During that time, NAR's data on existing-home sales showed the supply of inventory averaging seven months, indicating slightly less demand from sellers than in a balanced market.
In periods where for-sale inventory amounted to a six-month supply of homes, median selling time was just over six weeks.

When inventories dipped to an average of 4.3 months during the boom years of 2004 and 2005, median selling time dropped to four weeks. Time on market peaked at 10 weeks in 2009 when there was a 10-month supply of homes for sale.

Factoring out short sales -- which typically take three months or longer to sell -- the median time on market for traditional sellers currently "appears to be in the balanced range of six to seven weeks," said NAR Chief Economist Lawrence Yen.

Housing inventory and time on market correlates with rising and falling prices. If housing construction doesn't pick up to normal within two years, Yun said a shortage of listings could lead to "above average" price appreciation.

 

The bottom line for our readers: Better buy now !!! Tomorrow will cost you more!!!

 

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. Call us at 598-3200,or, 800 677-MOVE (6683).

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. …

 

FANNIE, FREDDIE TO HIKE LOAN FEES
Daily real estate News | Tuesday, September 04, 2012

The Federal Housing Finance Agency (FHFA) announced that mortgage giants Fannie Mae and Freddie Mac will increase — by an average of 10 basis points — the fees they charge lenders to guarantee loans.

The fee increases are expected to be passed along to borrowers, possibly with higher interest rates, Bloomberg reports. However, banking trade groups say any increases should be minimal and shouldn’t hurt mortgage lending.

For example, a rise of 10 basis points could potentially cost a borrower with a $200,000 mortgage about $4,000 over the term of a 30-year loan, Bloomberg reports.

“It’s obviously going to have a small impact on pricing, but given that mortgage rates are the lowest they’ve ever been, we think it’s probably the right time to do it,” Joseph Pigg, vice president at the American Bankers Association, told Bloomberg.

The purpose behind the fee increase was to increase the financial stability of the two mortgage giants as well as start decreasing their stake in the mortgage market, says Edward J. DeMarco, FHFA acting director.

Fannie Mae and Freddie Mac own or guarantee about 60 percent of all mortgages in the U.S.

 

JOKE OF THE WEEK

A tourist wanders into a back-alley antique shop somewhere in Washington DC. Picking through the objects on display he discovers a detailed, life-sized bronze sculpture of a rat. The sculpture is so interesting and unique that he picks it up and asks the shop owner what it costs. "Twelve dollars for the rat, sir," says the shop owner, "and a thousand dollars more for the story behind it." "You can keep the story, old man," he replies, "but I'll take the rat."

The transaction complete, the tourist leaves the store with the bronze rat under his arm. As he crosses the street in front of the store, two live rats emerge from a sewer drain and fall into step behind him. Nervously looking over his shoulder, he begins to walk faster, but every time he passes another sewer drain, more rats come out and follow him. By the time he's walked two blocks, at least a hundred rats are at his heels, and people begin to point and shout. He walks even faster, and soon breaks into a trot as multitudes of rats swarm from sewers, basements, vacant lots, and abandoned cars.

Rats by the thousands are at his heels, and as he sees the waterfront at the bottom of the hill, he panics and starts to run full tilt. No matter how fast he runs, the rats keep up, squealing hideously, now not just thousands but millions, so that by the time he comes rushing up to the water's edge a trail of rats twelve city blocks long is behind him.

Making a mighty leap, he jumps up onto a light post, grasping it with one arm while he hurls the bronze rat into the Potomac Tidal Basin with the other, as far as he can heave it. Pulling his legs up and clinging to the light post, he watches in amazement as the seething tide of rats surges over the breakwater into the Basin, where they drown.

Shaken and mumbling, he makes his way back to the antique shop."So, you've come back for the rest of the story," says the owner. "No," says the tourist, "I was wondering if you have a bronze congressman. "

September 4, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

WHAT’S HAPPENING IN THE SPRINGS ?

Click here to see the latest PPAR Sales and Listing statistics for July (August data will be published this week and will be in next week’s Enewsletter).They show that area home prices are on the rise.  In July, the median price of homes sold climbed to $212,000, a 6.6% increase over the same month last year. Year-over-year prices have now risen for five straight months.

Shrinking Inventory, rising prices, mortgage rates at an all-time low, buyers beginning to have to get into bidding wars for homes …… Isn’t it time for you to jump in and get that new home you have been considering …while “the iron is hot”?

Call at 598-3200, or, 800 677-6683 (MOVE), to discuss your new home.

 

JULY PENDING HOME SALES RISE NATIONWIDE

DSnews.com, RISMedia, Wall Street Journal, Daily real estate News, Wednesday, August 29, 2012

Pending home sales rose in July to the highest level in over two years and remain well above year-ago levels, according to the National Association of REALTORS® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.4 percent to 101.7 in July from 99.3 in June and is 12.4 percent above July 2011 when it was 90.5.

Lawrence Yun, NAR chief economist, said the index is at the highest level since April 2010, which was shortly before the closing deadline for the home buyer tax credit. “While the month-to-month movement has been uneven, more importantly we now have 15 consecutive months of year-over-year gains in contract activity,” Yun said.

Limited inventory is constraining market activity. “All regions saw monthly increases in home-buying activity except for the West, which is now experiencing an acute inventory shortage,” Yun added.

Existing-home sales are projected to rise 8 to 9 percent in 2012, followed by another 7 to 8 percent gain in 2013. Home prices are expected to increase 10 percent cumulatively over the next two years.

“Falling visible and shadow inventories point toward continuing price gains. Expected gains in housing starts of 25 to 30 percent this year, and nearly 50 percent in 2013, are insufficient to meet the growing housing demand,” Yun said.

Colorado Springs has been ahead of this curve all during 2011 and 2012. We are about 18 months ahead of the rest of the country, according to Fred Crowley, chief economist for the Southern Colorado Economic Forum.

 

AS PRICES RISE, HOMEBUYERS WORRIED THEY'RE LOSING BARGAINING POWER

Daily real estate News | Thursday, August 30, 2012

While home buyers have been holding a lot of bargaining power in the housing market the last few years, more of them say they are now feeling the market shift against them, according to a new survey.

Seven in 10 home buyers say they’ve faced competition on a home for at least one offer, according to a recent survey of 982 buyers in 19 markets conducted by Redfin. Of those surveyed, 46 percent say now is a good time to purchase a home. On the other hand, 32% now say it’s a good time to sell.

"Many buyers who emerged from hibernation this spring eager to take advantage of low rates and near-bottom prices now seem to have become demoralized by the intense competition for a limited selection of homes for sale," Redfin said in a public statement about the survey results.

The survey also found the number of buyers expecting home prices to rise drastically grew — 61% say prices will rise compared to 32 percent during the first quarter.

Give us a call to discuss our local market and let us help you find the best deals available.

Call at 598-3200, or, 800 677-6683 (MOVE).

 

HOUSING MAY BE WHAT DRIVES ECONOMIC RECOVERY 

Daily real estate News | Wednesday, August 29, 2012

As the economy struggles to find footing, many analysts are calling housing a bright spot, particularly during the second quarter.

Home sales for existing-homes over $100,000 have increased compared to one year ago basically in every region of the country, according to National Association of REALTORS® data. Meanwhile, inventory levels have dropped nearly 26 percent over the past year. Also, reports show home prices are stabilizing and even increasing in some markets.

“The housing market is clearly superior this year compared with the past four years,” says Lawrence Yun, NAR’s chief economist. “The latest increase in home contract signings marks 13 consecutive months of year-over-year gains.”

Columnist Kevin Mahn for Forbes writes that “an improving housing market is critical for consumer confidence, and the economic recovery overall, as home equity still accounts for over 16 percent of household net worth” (according to Federal Reserve data as of the end of the second quarter of 2010).

 

SURVEY: HOUSING IS STILL A BIG PART OF THE AMERICAN DREAM

Daily real estate News | Tuesday, August 28, 2012

Americans are getting more optimistic about their financial future, and they believe housing still plays an important part in that, according to a poll of 1,000 to 2,000 people conducted by FTI Strategic Communications.

Sixty-two percent of Americans say they expect the economy to improve within the next year. What’s more, 73 percent of those surveyed say home ownership is part of achieving the American Dream.

According to the survey, Americans believe they increasingly hold their financial fate, with 60 percent saying that they can be comfortable financially by working hard and being savvy with their investing.

What’s more, 44 percent say they believe they’ve had more opportunities than their parents.

 

AMERICANS: HOME OWNERSHIP STILL A GREAT INVESTMENT

Daily real estate News | Friday, June 03, 2011

Seventy-five percent of Americans say that “owning a home is the best long-term investment they can make” and is worth the risk of ups and downs in the housing market,” according to a new survey of 2,000 bipartisan voters by the National Association of Home Builders.

The survey found Americans to be optimistic about home ownership. Eighty-one percent of those who own their homes outright, 76 percent with mortgages, 67 percent of renters, and 65 percent who have underwater mortgages cited home ownership as the “best long-term investment.”

When survey respondents were asked whether they’d recommend buying a home to a friend or family member just starting out, 80 percent of Americans said “yes.” Even home owners currently underwater — those who owe more on their mortgage than their home is currently worth — overwhelmingly (78 percent) said they would recommend home ownership to family or friends starting out.

More buyers are coming up through the pipeline too. The survey found that 73 percent of those surveyed who do not own a home said their goal is eventually to buy one.

The NAHB survey also found:

▪ 58 percent of Americans oppose eliminating the mortgage-interest deduction and 63 percent oppose lowering it. What’s more, 57 percent of those surveyed say they are less likely to support a candidate for Congress who wanted to eliminate the mortgage-interest deduction.
▪ Respondents were split on about requiring a 20 percent down payment to purchase a home: 49 percent were in favor and 49 percent opposed it. However, mortgage holders and renters aged 18 to 54 were more opposed to it: 58 percent of younger mortgage holders and 59 percent of younger renters opposed adding a 20 percent down payment requirement.

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 40 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.

 

JOKE OF THE WEEK

Here are a few of the most famous observations about elections:

If the World Series runs until election day, the networks will run the first one-half inning and project the winner. ~Lindsey Nelson

It's not the voting that counts; it's the counting. ~Tom Stoppard, Jumpers

Politicians and diapers should be changed frequently and all for the same reason. ~José Maria de Eça de Queiroz, translated from Portuguese

How come we choose from just two people to run for president and 50 for Miss America? ~Author Unknown

If we got one-tenth of what was promised to us in these acceptance speeches there wouldn't be any inducement to go to heaven. ~Will Rogers

If God wanted us to vote, he would have given us candidates. ~Jay Leno

The problem with political jokes is they get elected. ~Henry Cate, VII

Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

If con is the opposite of pro, is Congress the opposite of progress? ~Author Unknown

George Washington is the only president who didn't blame the previous administration for his troubles. ~Author Unknown

Every two years the American politics industry fills the airwaves with the most virulent, wall-to-wall character assassination of nearly every politician in the country - and then declares itself puzzled that America has lost trust in its politicians. ~Charles Krauthammer

I offer my opponents a bargain: if they will stop telling lies about us, I will stop telling the truth about them. ~Adlai Stevenson, campaign speech, 1952

During a campaign the air is full of speeches - and vice versa. ~Author Unknown

If voting changed anything, they'd make it illegal. ~Emma Goldman

A man that would expect to train lobsters to fly in a year is called a lunatic and is confined to an institution; but a man that thinks men can be improved by an election is called a reformer and is allowed to remain at large. ~Finley Peter Dunne, Mr. Dooley's Philosophy, 1900

The best argument against democracy is a five-minute conversation with the average voter. ~Winston Churchill

Ohio claims they are due a president as they haven't had one since Taft. Look at the United States, they have not had one since Lincoln. ~Will Rogers

August 27, 2012
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

US AND COLORADO SPRINGS NEW-HOME SALES RISE TO MATCH 2-YEAR HIGH
The Gazette - August 23, 2012 12:02 PM & The Wall Street Journal – August 22, 2012

Sales of new homes in the United States rose 3.6 percent in July to match a two-year high reached in May, the latest sign of a steady recovery in the housing market.

The Commerce Department said Thursday that new-home sales reached a seasonally adjusted annual rate of 372,000. That's the same as in May, which was the highest since April 2010. Local experts agree that the report indicates a durable housing recovery is underway.

In Colorado Springs, home prices and sales rose again in July from a year earlier, more signs of an improving single-family housing market. Year-over-year prices have risen for five straight months, and July’s median price ($223,950), was the highest for any month since July 2008, according to PPAR figures.

Local home sales also rose in July — totaling 973, or a 21.9 percent increase from the same month last year. (Some industry experts speculate July’s increase was inflated somewhat since home sales in late June probably weren’t recorded until the next month because the Waldo Canyon fire forced the temporary closing of the El Paso County Clerk and Recorder’s Office.)

Builders, meanwhile, are growing more confident because they're seeing more traffic from potential buyers. An index of builder confidence rose to its highest level in five years in August.

Local builders responded by applying for the largest number of building permits in nearly four years last month.

Each new home built creates an average of three jobs for a year and generates about $9,000 in tax revenue, according to statistics compiled by the National Association of Home Builders.

The housing market is making a recovery in part because homes are more affordable: Mortgage rates have fallen to near-record lows. Housing prices are about one-third lower than at the peak of the housing bubble in 2006. Those trends have helped lift sales of both new and previously occupied homes.

One factor holding back sales is that there aren't many newly built homes available. New-homes for sale dipped last month to 142,000, the lowest on records dating back to 1963. (A six-month supply is generally considered healthy by economists. At the current sales pace, it would take only 4.6 months to exhaust the July supply.)

In every aspect, Colorado Springs is showing a healthy increase in home-sales and home-prices. Most cities in the US envy our numbers.

Better call us now to discuss buying your new home, before prices and mortgage interest rates both start to rise even further.

Call at 598-3200, or, 800 677-6683 (MOVE).

FANNIE SAYS HOUSING SHOWS SIGNS OF 'DURABLE, LONG-TERM RECOVERY'
Daily real estate News | Wednesday, August 22, 2012

Housing is the one bright spot in our economic recovery, according to Fannie Mae’s August 2012 Economic Outlook.

Home sales are projected to be 9 percent above year ago levels, and home prices are expected to continue to rise, according to Fannie Mae economists. A shrinking inventory of for-sale homes on the market has also led to a gradual pickup in homebuilding in many housing markets across the market.

Still, Fannie economists caution that the pace of the real estate market recovery will likely stay modest, due to factors like tight credit standards and a high number of foreclosures that continue to plague many markets. Fortunately, our Colorado Springs foreclosure picture continues to look brighter than the national outlook.

Doug Duncan, Fannie Mae’s chief economist, said in a public statement, “We continue to see positive trends in the housing sector, which is showing signs of a durable, long-term recovery."

It will never be a better time to buy your new home. Give us a call at 598-3200, or, 800 677-6683 (MOVE).

BUYER DEMAND GROWS FOR NEW HOMES
Daily real estate News | Friday, August 24, 2012

While sales of newly built single-family homes is on the rise, buyers are finding fewer choices as inventory sinks to a new record low, the Commerce Department reported Thursday.

New-home sales rose 3.6 percent in July to 372,000-unit annual rate — matching a two-year high that was set in April. New-home sales are up 25.3 percent over year-ago levels. This is further evidence that consumers are becoming more confident in local housing markets as they look to take advantage of today's very favorable prices and interest rates.

Still, inventories remain low as builders have been leery of starting too many projects. The inventory of new-homes for sale reached a record low of 142,000 units last month.

“Unnecessarily tight credit conditions are keeping builders from being able to replenish supplies as consumer demand improves," says NAHB Chief Economist David Crowe.

MORTGAGE RATES ARE ON THE WAY UP
Daily real estate News | Friday, August 24, 2012

Following several positive reports this week of a housing market gaining momentum this week, fixed-rate mortgages inched higher, Freddie Mac reports in its weekly mortgage market survey. This is the fourth consecutive week that mortgage rates have inched higher after reaching all-time lows just a month ago.

Here’s a closer look at rates for the week ending Aug. 23:

• 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.7 point, rising from last week’s 3.62 percent average. A year ago, 30-year rates averaged 4.22 percent.
• 15-year fixed-rate mortgages: averaged 2.89 percent, with an average 0.7 point, rising slightly from last week’s 2.88 percent average. Last year at this time, 15-year rates averaged 3.44 percent.
• 5-year adjustable-rate mortgages: averaged 2.80 percent, with an average 0.6 point, increasing from last week’s 2.76 percent average. Last year at this time, 5-year ARMs averaged 3.07 percent.
• 1-year ARMs: averaged 2.66 percent, with an average 0.4 point, dropping from last week’s 2.69 percent average. A year ago, 1-year ARMs averaged 2.93 percent.

HOME PRICES POST STRONGEST GROWTH SINCE 2006
INMAN NEWS -Wednesday, August 22, 2012.

NAR states that July inventory is down 24 percent from a year ago. Demand for homes grew faster than the inventory of homes for sale in July, helping push the national median price of existing homes up for the fifth month in a row.

The National Association of Realtors said today that the national median price of existing homes was up 9.4 percent from a year ago in July, to $187,300 -- the strongest annual gain since January 2006. The last time the national median home price posted five consecutive months of annual gains was January to May of 2006.

Sales of existing homes -- resales of single-family homes, townhomes, condominiums and co-ops -- were up 2.3 percent from June to July, to a seasonally adjusted annual rate of 4.47 million. That's a 10.4 percent increase from a year ago.

"Mortgage interest rates have been at record lows this year while rents have been rising at faster rates," said NAR Chief Economist Lawrence Yun. "Combined, these factors are helping to unleash a pent-up demand."

Yun said sales "could easily be much stronger" -- in a more "normal" range of 5 million to 5.5 million per year -- if not for "abnormal frictions" such as tight lending standards and shrinking inventory.

Although the number of existing homes on the market was up 1.3 percent from June to July, to 2.4 million, that represents a 6.4-month supply of homes at July's faster pace of sales, down from 6.5 months of supply in June. And looking back a year, listing inventories were down 23.8 percent, when there was a 9.3-month supply of existing homes for sale.

Analysts generally consider a six-month supply of existing homes to be a healthy balance of supply and demand. More than that indicates that sellers significantly outnumber buyers, which puts downward pressure on prices.

Writing on the blog Calculated Risk, Bill McBride noted that while the annual rate of sales in July was slightly below expectations of 4.5 million, "those focusing on sales of existing homes, looking for a recovery for housing, are looking at the wrong number. For existing-home sales, the key number is inventory -- and the sharp year-over-year decline in inventory is a positive for housing."

THE DATE IS GROWING NEARER FOR THE 16th ANNUAL SCEF FORUM - CALL NOW FOR RESERVATIONS !
The College of Business and Administration and Graduate School of Business of the University of Colorado at Colorado Springs has scheduled the 16th Annual Southern Colorado Economic Forum for September 28, 2012 – 7:00am to 11:30am at the Antlers Hilton Heritage Ballroom, in downtown Colorado Springs.

This year will feature a detailed presentation on “Economics in the Pikes Pike Region and the Outlook for the next 12 Months” by Fred Crowley, Ph.D and Tom Zwirlein Ph.D, from UCCS.

Also featured will be a very timely 1 ½ hour roundtable on “The Changing Health Care Environment: Leveraging Economic Opportunities for the Pikes Peak Region”, including a Q&A session with the panelists. (You can check out the bios of the speakers at the forum’s website .)

Salzman real estate Services is proud to have been a pioneer sponsor of this annual event since its inception and we encourage our readers to attend this important gathering which is viewed by many area business leaders as the premier economic event of the year.

Please contact the Southern Colorado Economic Forum for complete details ..or just give us a call at 598-3200, or, 800 677-MOVE (6683).

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 to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, 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 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 40 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.

JOKE

You think we got election problems here.? Here are some observations regarding the recent elections in Iraq.

It's amazing -- we invade a country, overthrow a dictator, and then boom, we have an election. Well, actually, more like, boom, boom, boom.

With the election only two weeks away, US troops are sealing Iraq's borders. (We can't even seal California's borders so how does that work?)

They did not release the names of the candidates until two days before the election, to protect the candidates. (Sounds like that might b a good idea for us.)

One expert noted that “There are four areas of Iraq where it will be very difficult for people to vote: The east, the west, the north, and the south." …And this guy gets paid for his expertise?

Iraqi politicians are telling voters that if they don't vote for them they will go to Hell. Imagine using religion to try and get votes. Thank God our people would not do that.

Ex-pat Iraqis will be voting in U.S. cities like Washington DC and Detroit. Strangely enough, there is more gunfire in those cities then in Fallujah and Baghdad.

After the election …

It was a strange sight to see Iraqi voters proudly waving their blue-stained index fingers as a sign they had voted. Oh well, different countrys ..different customs ..different fingers.

Voter turnout was lowest among Iraq's Sunni minority. Saddam Hussein was Sunni and many in the group resent the loss of power. They feel alienated by the current political climate and are unwilling to accept the election results, and may react with violence. (That’s only because they aren’t as sophisticated as we are…)

The turnout for the election was higher than expected with 60 percent of Iraqis casting a vote. American observers noted that “Once their democracy is as sophisticated as ours that number should drop to 40 percent."

August 20, 2012

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

THANK YOU. THANK YOU. THANK YOU FOR 40 YEARS IN LOCAL real estate

As I begin celebrating a personal milestone….40 years selling real estate in the Pikes Peak Region….I must begin by thanking all of you for helping me reach this pinnacle.

I could not have accomplished this without so many of you whom I have had the privilege of working with over these many years. Your continued loyalty means more to me than I can express, but offering my sincere gratitude is a start.

You may be seeing ads commemorating this event in the local Colorado Springs Business Journal and The Gazette. And for those of you who are not ‘’locals”, I’ll be reproducing them in a future eNewsletter.

My “Rocky Mountain High” that began 40 years ago is still going strong thanks to your friendship and support.

16th ANNUAL SOUTHERN COLORADO ECONOMIC FORUM SCHEDULED

The College of Business and Administration and Graduate School of Business of the University of Colorado at Colorado Springs has scheduled the 16th Annual Southern Colorado Economic Forum for September 28, 2012 – 7:00a.m. to 11:30am at the Antlers Hilton Heritage Ballroom, in downtown Colorado Springs.

This year, the event will feature a timely roundtable on “The Changing Health Care Environment: Leveraging Economic Opportunities for the Pikes Peak Region. Debbie Chandler from Colorado Springs Partners will moderate a Town Hall format and question the panelists during the 1 ½ hour session. You may want to go to the forum’s website to review the bios of the speakers.

There will also be a detailed presentation on Economics in the Pikes Pike Region and the Outlook for the next 12 months by Fred Crowley, Ph.D and Tom Zwirlein Ph.D, from UCCS.

Salzman real estate Services is proud to have been a pioneer sponsor of this annual event since its inception and we encourage our readers to attend this important gathering which is viewed by many area business leaders as the premier economic event of the year.

Please contact the Southern Colorado Economic Forum for complete details ..or just give us a call at 598-3200, or, 800 677-MOVE (6683).

 

4 STRONG REASONS TO BUY A HOME NOW
Daily real estate News | Monday, August 13, 2012

“It’s hard to argue against buying a house now, assuming you can get a loan,” writes John Waggoner, a columnist with USA Today. Sure, Waggoner says that getting a credit check for approval of a mortgage can be a “only slightly less intrusive than a CIA background check,” but for those who are able to qualify, a lot of analysts say that now can be a good time to purchase a home.

1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900.

2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family.

3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.

4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.

And don’t forget that the recent NAR report for the Second Quarter of 2012 shows that, although home prices increased nationally by a healthy 7.3%, Colorado Springs prices increased 11.3% during the same period. That puts Colorado Springs in the top 14% of the top 147 major metro areas in the U.S. These numbers show that, as usual, our local area is better off than almost any other part of the country. It’s a great place to buy a home !!!

This news, combined with record-low interest rates, has created a flurry of contacts in our office from prospective buyers and sellers. So, better give us a call now to explore how this hot market can be used to your advantage. We will always have time to chat with our readers about the opportunities that are currently available.
Call us at 598-3200, or, 800 677-MOVE (6683).

END-OF-SUMMER CHECKLIST FOR HOME SELLERS
RISMedia Aug.13, 2012

As we near the end of summer, it’s time to look ahead and plan out home maintenance projects that have to be done before the cold weather strikes. real estate agents can help homebuyers understand which home fixes take priority if their new home isn’t quite new. Likewise, agents can help sellers prioritize their last warm weather fixes to increase a home’s curb appeal.

While the weather is warm and before the peak months of September and October, we encourage clients to walk around the exterior of their home and make a list of problematic areas. Some can be fixed by the current owners and others will require assistance from an expert. To help locate any issues and take care of them before winter arrives, we can help our clients by hiring a reliable, thorough home inspector to check around the exterior of the home. An inspector will be able to get to areas where a buyer may not want to venture, including the roof and under the home.

End-of-summer projects we might suggest to our home sellers include:

1. Outdoor painting. If the owners don’t have the time or the resources to do a full painting job, have them go around the outside of the house and touch up any areas that look rough. If they find peeling paint, the areas can be scraped and sanded, then primed and painted to maintain even texture.
2. Outdoor caulking and sealing. Windows should be checked inside and out for possible leaks or cracks. With cold weather just around the corner, leaks or cracks could mean higher heating bills. Have leaks and cracks sealed with caulk, then look at the trim around each window—if any pieces are pulling out, have the owners check for mold or rotting, then replace or reattach wood.
3. Concrete and asphalt patching. If the home features an asphalt driveway, it can be repaired with asphalt patching material. Asphalt should be sealed every other year. If the driveway or walkways are concrete, cracks or holes can be repaired with epoxy patching material.
4. Patio and deck maintenance. On wood decks, rotted boards should be replaced, painted or stained as needed, and critter nests and debris cleared. On brick patios, owners should replace missing bricks, level off areas where tree roots have pushed up the bricks and re-grout any areas where weeds or weather have degraded the hold between bricks.
5. Landscaping. Keep landscaping clean and attractive. Weeds should be pulled, dropped fruits and nuts removed from under trees to deter animals, and trees and bushes trimmed so they don’t scrape the side of the house. Many landscaping companies offer affordable fall clean-up packages for homeowners who don’t want to do the work themselves.

If the home is still on the market leading into the holidays, owners can spend the colder months doing interior cosmetic upgrades, such as replacing floor coverings, upgrading cabinet hardware and interior painting. With a prioritized list, homeowners will feel more confident in their ability to finish interior updates before the start of the 2013 real estate season.

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 to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).

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 40 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.

JOKE OF THE WEEK

THE DEALMAKER

Two friends with radically different political views are on their way to the polls on election day. One guy turns to the other and says "You know, we've argued about this for months, and we're obviously going to vote for different candidates. Our votes will cancel each other out anyways, so why don't we just call it a draw and go home instead?"

The other guy agrees, they shake hands and part ways.

Another guy who overheard the conversation approaches the dealmaker and says with admiration, "That's a real sportsmanlike offer you just made!"

"Not really," guy says, "Just this afternoon I've already done this three times."

August 13, 2012

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

NATIONAL ASSOCIATION OF REALTOR QUARTERLY REPORT SHOWS COLORADO SPRINGS HOME PRICES RISING FASTER THAN MOST OF THE NATION
NAR - WASHINGTON (August 9, 2012)

The recent NAR report for the Second Quarter of 2012 shows that home sale prices increased nationally by a healthy 7.3%. However, the same report shows that Colorado Springs prices increased 11.3% during the same period. That’s great news for our local homeowners and sellers.

This puts Colorado Springs in the top 14% of the top 147 major metro areas in the U.S. Only 21 of the major metro areas had records better than 10% in the last quarter.

This news, combined with record-low interest rates, has created a flurry of contacts in our office from prospective buyers and sellers. So, better give us a call now to explore how this hot market can be used to your advantage. We will always have time to chat with our readers about the opportunities that are currently available.

The numbers show that, as usual, our local area is better off than almost any other part of the country. Hooray for us!!!

Some of the other interesting data from the NAR report are:

Median existing single-family home prices are rising in more metropolitan areas, but a lack of inventory – notably in lower price ranges – is limiting buyer choices in an increasing number of markets around the country.

In the first quarter of 2012 there were 74 areas showing price gains from a year earlier, as opposed to 2011, when only 41 metros were up.

Lawrence Yun, NAR chief economist, said home prices are set to rise in even more markets during upcoming quarters. “It’s most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners. Inventory has been trending down and home builders are still under-producing in relation to growing demand,” he said. “Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight.”

The national median existing single-family home price was $181,500 in the second quarter, up 7.3 percent from $169,100 in the second quarter of 2011. This is the strongest year-over-year increase since the first quarter of 2006 when the median price rose 9.4 percent (but even with the gain, the current price is 20.1 percent below the record set in 2006).

Total existing-home sales, including single-family and condo, were 8.6 percent above the 4.18 million pace during the second quarter of 2011.

At the end of the second quarter there were 2.39 million existing homes available for sale, which is 24.4 percent below the close of the second quarter of 2011 when there were 3.16 million homes on the market. There has been a steady downtrend since inventories set a record of 4.04 million in the summer of 2007.

NAR President Moe Veissi, said buying power is historically high. “Home buyers today can stay well within their means. Record low mortgage interest rates and an over-correction in home prices have opened the door to many potential buyers,” he said.

A breakout of incomes needed to purchase a median-priced existing single-family home by metro area shows the typical buyer has ample income. The national median family income was $61,000 in the second quarter. However, to purchase a home at the national median price, a buyer making a 5 percent down-payment would only need an income of $39,900. With a 10 percent down-payment the required income would be $37,800, while with 20 percent down the necessary income would only be $33,600.

“Because the income required to buy to a typical home is very manageable by historical standards, any further decline in mortgage interest rates will have little effect. Changes in underwriting guidelines would have a far greater impact,” Yun said.

Click here to see this very positive NAR Quarterly Report.

 

THE WALL STREET JOURNAL REPORTS HOME PRICES CLIMBING …. AS SUPPLIES DWINDLE
The Wall Street Journal – August 8, 2012

Home prices rose by their largest percentage in at least seven years during the second quarter, propelled by low inventories of properties for sale and high demand for bargain-priced foreclosures, according to two reports Tuesday.
Prices rose by 2.5% in June from a year ago, and by 6% from the previous quarter, said CoreLogic Inc., a Santa Ana, Calif., data firm. The quarterly jump was the largest since 2005.

Separately, Freddie Mac, which uses a different methodology, said home prices during the second quarter jumped by 4.8% from the previous quarter. That was the largest jump since 2004.

The main force behind the home-price gains appears to be a shortage of homes for sale. The number of properties on the market is sharply down from a year ago.. Meanwhile, demand is up, as mortgage rates have dropped to their lowest levels in at least 60 years. With every passing month, distressed homes are being absorbed at better and better prices.

Inventories are low for a number of reasons.
• Investors have been scooping up homes and converting them into rentals
• Banks have slowed their foreclosure processes
• New home construction has been at depressed levels for years
• Many traditional sellers are sitting on the sidelines because they are unwilling or unable to sell.

Meanwhile, as inventories have shrunk, demand has picked up. Many areas have gone to multiple offers. Price increases appear to be broad-based, with 71 of the nation’s top metropolitan areas showing rising prices on a year-over-year basis in May, compared with just 19 markets in December. This was the largest number of rising metro areas since November 2006, when area home prices began to decline.

8 SIGNS HOUSING IS ON THE MEND
Daily real estate News | Monday, August 06, 2012

Some Americans are still jittery over the housing market, but here are eight positive signs that should quell some of their fears.
1. Housing prices are on the rise across the country.
2. Foreclosures have slowed, so Buyers are being forced into higher-price properties.
3 Inventories of for-sale homes on the market are decreasing…down 24 percent from a year ago.
4. Mortgage rates are at ultra-record level lows, for those who can qualify.
5. Existing-home sales were up 4.5 percent higher in June compared to one year ago.
6. Home building stocks are on the rise and housing starts rose 6.9 percent in June.
7. For investors, rents are soaring. Rental prices are at a 10-year high.
8. Home affordability is at record highs, due to falling home values and super low mortgage rates.

In fact, a recent study found that it is cheaper to buy a home than rent in basically every major city in the U.S. For those who buy, you can save the cost of renting by owning the home for five years or less.

The Wall Street Journal concludes in a recent article that if you take into account all the positive signs lately in the housing market, “Housing presents an attractive long-term investment that should hold steady or even have upside surprise in the short term.”

BY THE WAY …DID YOU KNOW THIS??

In a report that was released by Bankrate.com on Aug 6, Colorado has the 3rd lowest “mortgage closing costs” in the USA.

On average it costs $ 3,199 to close on a mortgage in Colorado compared with the national average of $ 3,754.

Just one more reason to buy your Colorado Springs home, now !!!

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 40 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. Call us at 598-3200, or, 800 677-MOVE (6683).

SALES AND LISTING STATISTICS

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 to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).
 

JOKE OF THE WEEK

MY TRIP TO THE STORE

There was a bit of confusion at the store this morning. When I was ready to pay for my groceries, the cashier said, "Strip down facing me."

Making a mental note to complain to my congressman about Homeland Security running amok, I did just as she had instructed.

When the hysterical shrieking and alarms finally subsided, I found out that she was referring to my credit card.

I have been asked to shop elsewhere in the future.

They need to make their instructions to us seniors a little clearer!

August 6, 2012

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

OK, LET’S LOOK AT ANOTHER WAY OF THINKING OUTSIDE THE BOX …BY USING real estate TO SET UP YOUR FUTURE !!

Many home-owners feel trapped in today’s real estate market. They are treading water until prices go back up. However, if you are willing to think outside the box, there are several techniques you can use to make today’s market work to your advantage. Here’s one of them:

Let’s say you are a typical homeowner who bought your $250,000 home with a 30 year mortgage. You have an interest rate of 5.0% and have not recently re-financed your home, therefore, your existing monthly principal and interest payment is $1342.05.

So, do you have any options? ..Here’s one.

At our current mortgage rates, your Principal and Interest payment for a refinanced mortgage would be:

Mortgage term rate P&I monthly payment
30 year mortgage 3.5% $1,122.61
15 year mortgage 3.0% $1,726.45
10 year mortgage 2.75% $2,385.28

Sure, that 10 year mortgage payment of $2,385.28 is almost double your present payment of $1,342, but, after ten years, your home will be completely paid for, just in time to start paying for your children’s college costs, or, for your retirement in Hawaii.

Furthermore, there are a couple of other positive factors that might bolster your switch to a 10 year mortgage. First, although your refinanced P &I payment would be higher, your tax write-off would also be much higher, thus bringing your actual net home interest expense down to around just 2%. Second, home prices are now really rising. The home you buy today will be worth much more in ten years. ….This is the kind of investment you cannot come close to matching with today’s mutual funds.

If the thought of a ten year mortgage is just too steep for you, maybe a 15 year refinance might work for you.

Just a thought !!! Call us at 598-3200, or, 800 677-MOVE (6683) to discuss this idea !!!

 

HERE’S A BLAST FROM THE PAST
The other day, I found a copy of the paperwork from the first real estate sale I ever made, when I started out in Colorado Springs, 40 years ago. It was fun to compare the present real estate market with what it was back then.

The model home I sold is at the corner of Dublin and Turret. The original sale price in 1972 was $25,560. That same home, based upon current comparables, would sell for approximately $180,000, today.
The buyers didn’t have a checking account, so they paid the earnest money with $25 in cash, with the balance ($75) paid when they made their mortgage loan application.

The mortgage on the home was a 30 year fixed VA loan at 7%.
Several of my old friends always kid me about the fact that I have such a positive view of our local market, but I think the facts about this sale prove that my optimism is well grounded. If you look at the present market value of this sale, you see that, over the past 40 years, annual appreciation on this house has been 5.7% per year (from $25,560 to about $180,000)…and, in fact, the average appreciation of all homes in Colorado Springs has been between 5-6%.

That’s better than almost any mutual fund.

Call us at 598-3200, or, 800 677-MOVE (6683) to discuss this idea !!!

CURRENT MONTHLY STATISTICS SHOW GOOD GROWTH IN LOCAL real estate AS OF JULY 31, 2012

Highlights from this month’s PPAR sales and listing statistics:
• Number of Sales - Up 15% since last month and Up 21.% since July 2011
• Avg sales price $236,062 is up 5% since July 2011
• Median sales price $198,950 up 6.6% since July 2011
• So far in 2012, number of sales is up 6.9%
• Foreclosures - As of June 30, 2012, foreclosures are down 24.1% from June 30, 2011

These monthly reports show listings and sales in every neighborhood in our area and contains such information as average and median prices within those neighborhoods.

These reports are used by your real estate agent and by Buyers and Sellers alike as they determine the best deals available for their clients. Call us at 598-3200 to discuss the details of this valuable report.

Click here to see the complete report from the Pikes Peak Association of Realtors on your local real estate market.

HOME PRICES CONTINUE TO RISE
RISMedia –Aug1, 2012

Data through May 2012, released by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed that average home prices increased by 2.2 percent in May over April.

“With May’s data, we saw a continuing trend of rising home prices for the spring,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns.

“June data for existing home sales, new home sales, housing starts and mortgage default rates were better than their year-ago levels. The housing market seems to be stabilizing.

As of May 2012, average home prices across the United States are back to the levels where they were in spring 2003 for the 20-City Composite and to summer 2003 levels for the 10-City Composite.

IS THE REAL-ESTATE REBOUND FOR REAL?
HOTWIRE.com – August, 2012

For investors, "home" is no longer a four-letter word.

Standard & Poor's on Tuesday reported that home prices rose 0.9% in May from the prior month, and have risen 2.6% since bottoming in January.

Some of the world's smartest investors, including Warren Buffett, are taking notice, placing big bets on a continued recovery in the housing market.

What does Warren Buffett see that no one else does? He just made an outsize bid on ResCap loans, the latest example of his bet that the housing market represents a great investment opportunity.

Home valuations are almost as low as they were in the first quarter of 1998, well before the most recent real estate run-up began. That has caught the attention of many investors, including Mr. Buffett, who in February said he would buy "a couple hundred thousand" homes if it were practical.

Not only are single-family home prices steadily climbing, but the Joint Center for Housing Studies at Harvard University in a June report said inventories of new, single-family homes in March were at the lowest level in 49 years. The upshot: It would take less than six months to sell the current inventory, the traditional boundary between a strong and weak market, says Eric Belsky, managing director of the center.

Most economists say the odds are good that real estate will be stronger over the next few years than it has been in the past.

Smaller investors could benefit from the trend as well, experts say, by directly buying properties.

Banks are willing to lend for investment properties as long as the investor can make at least a 30% down payment on the home, says Bankrate.com senior financial analyst Greg McBride.

"There's great opportunity in actually buying residential homes directly for investors who have the capital," Mr. Luschini says. "Prices are clearly turning the corner, and housing affordability is the highest in a generation."

PEOPLE STILL WANT TO BUY HOMES: FANNIE MAE

An overwhelming 85% of Americans prefer homeownership over renting, Fannie Mae said in a new study.

Demographics such as income, age, marital status and employment status are still considered significant drivers in the decision of buying a home or renting, Fannie found that beliefs about housing help determine whether Americans intend to rent or buy their next residence.

Fannie produced the national housing survey based on feedback from 12,014 interviews that occurred in 2011.

When looking at feedback from Americans who already have a mortgage, 40% cited attitudes about finances—such as the ease of getting a mortgage, affordability, homeownership benefits and financial stressors—as drivers that will shape whether they buy or rent their next property. About 39% of homeowners in the same group cite attitudes about housing as influencing their next move, while 21% say demographics such as income, age, marital status, employment, race, etc., will be primary drivers of their next decision.

Thirty-three percent of current renters say demographics like employment, age, income and marital status also are important homeownership drivers, while only 25% cite financial attitudes as having an impact on their next housing.

What's keeping homeownership alive is the fact that it's not a stock or bond, but something desirable for individuals and families to live in even without a significant return on investment. "The nonfinancial benefits that people derive from the consumption of housing mitigate the negative financial experiences that many homeowners have had," said Deggendorf.

The good news is homeownership as a goal for Americans hasn't changed in the past six years.

"Our study shows that the negative housing events of the past few years have not discouraged people from wanting to own a home," the Fannie study concluded. "Exposure to mortgage default, perceived home value appreciation/depreciation, and self-reported underwater status are not significant factors in the models in predicting individuals’ intentions to own a home for their next move."

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 40 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. Call us at 598-3200, or, 800 677-MOVE (6683).

JOKE OF THE WEEK

"Daddy," a little girl asked her father, "do all fairy tales begin with 'Once upon a time'? "

"No, sweetheart," he answered. "Some begin with 'If I am elected.'"

It was election time and a politician decided to go out to the local reservation and try to get the Native American vote. They were all assembled in the Council Hall to hear the speech. The politician had worked up to his finale, and the crowd was getting more and more excited. "I promise better education opportunities for Native Americans!"

The crowd went wild, shouting "Hoya! Hoya!" The politician was encouraged by their enthusiasm. "I promise gambling reforms to allow a Casino on the Reservation!"

"Hoya! Hoya!" cried the crowd, stomping their feet.

"I promise more social reforms and job opportunities for Native Americans!" The crowd reached a frenzied pitch shouting "Hoya! Hoya! Hoya!"

After the speech, the Politician was touring the Reservation, and saw a tremendous herd of cattle. Since he was raised on a ranch, and knew a bit about cattle, he asked the Chief if he could get closer to take a look at the cattle.

"Sure," the Chief said, "but be careful not to step in the hoya."

Saturday, June 21,2012 started out like any other day here in Colorado Springs--crisp and clear with gorgeous mountain views.

But 6.21.12 would soon become the day that my adopted hometown was forever changed.

As I witnessed the first plumes of smoke above the mountain ridge, little did I know that I would be witnessing the start of a fire that would soon become the worst in Colorado history.

Last Tuesday, as the changing winds forced 32,000 people, myself included, to evacuate their homes, I knew that many lives would never be the same.

Three hundred and forty-seven homes were destroyed and many more were damaged in the last week.  I was one of the lucky ones who returned to a basically unscathed home; however, my thoughts keep returning to those not so fortunate.

As a 39 year veteran of the Colorado Springs real estate and Community Services arena, I was either personally or professionally involved with many of the fire victims.  I sold the homes that were destroyed to a number of them.  To me, the fire not only destroyed the homes, it completely affected the lives of families I have come to view as friends.

The devastation many of them are experiencing has affected my life too as I contemplate the consequences these families are now facing.  My heart goes out to them all.

My thoughts are also focused on the leadership and amazing response of the City of Colorado Springs to the tragic events of the past week.

This is a city that has never had to deal with such devastation, yet each and every one from the Mayor's office and Fire Department to the local broadcast and print news and the U.S. Park Service all played a vital role in keeping the public safe and informed throughout this ordeal.

I am personally and professionally involved with many of these individuals also, and I want to publicly express my gratitude to them all.  They are living examples of the meaning of teamwork and I've never been prouder and more grateful to them than I am at this moment in time.

So, while I am not sending you my usual musings and advice, I thought it more appropriate that we all take a minute this week to be grateful for all we have in our lives and to reach out to those who may not be so fortunate.