Real Estate Information Archive

Jan.9, 2012

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

HOW ABOUT THEM BRONCOS !!!! WHAT A WAY TO START THE YEAR !!!

WHAT'S GOING TO HAPPEN WITH real estate IN COLORADO SPRINGS IN 2012?

Many of our friends and clients ask us for our prediction of where real estate is going this year. So, here's our take on what's going to happen.

First of all, Colorado Springs real estate has not felt the recession as badly as most other parts of the country. Add to that the fact that we are better poised for a recovery than most other cities. As we cited in previous issues, both Forbes and Kiplinger have listed Colorado Springs as one of the top ten places where recovery will be the fastest.

So, based upon the national picture, the local picture and my 39 years of experience in our local market, my opinion is that we should see a marked increase in home-values and home sales in 2012. As evidence that this increase will take place, just consider the following factors:

• Both National and local statistics indicate that we have reached bottom, where home-prices are concerned. NAR is projecting an increase in home values of 2% in 2012, 3% in 2013 and 4% in 2014. My prediction is that we will exceed those increases by at least another 1%.
• In Colorado Springs, there is an increasing demand for housing based upon an increase in our military population (with hundreds of troops returning from Iraq and Afghanistan) plus our typical population increase because of retirees (our city is one of the prime retirement cities in the country) and a slow but steady increase in businesses (as a result of our city council actively promoting our city nationally).
• There is a sizable pent-up demand for housing because of tight mortgage credit conditions which have been artificially holding back sales for several years….and the government is eagerly seeking to loosen up the requirements for borrowers (See “FED URGES ACTION ON EASING LENDING RESTRICTIONS”, below)

The bottom line is that the Colorado Springs real estate market looks very good in 2012, for Homeowners, Homebuyers, Homesellers and Investors alike.

Call us to discuss what these trends could mean for you. 598-3200, or, 800-677-6683(MOVE).

EXISTING HOME SALES CONTINUE TO CLIMB IN NOVEMBER

Realtor Magazine reports (12/21/2011) that existing home sales rose again in November and remain above a year ago, according to NAR.

Lawrence Yun, NAR chief economist said more people are taking advantage of the buyers' market. "Sales reached the highest mark in 10 months and are 34% above the cyclical low point in mid-2010 ....A genuine recovery appears to be developing. We've seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today's market for buyers with long-term plans".

This is all great news !!!

MORTGAGE RATES MATCH RECORD LOWS THIS WEEK

Daily real estate News reports (Jan. 6, 2012) that, for the fifth consecutive week, 30-year fixed-rate mortgages have averaged below 4%, which was unheard of until a few months ago.

30-year fixed-rate mortgages are averaging 3.91%, compared with 4.77% one year ago.
15-year fixed rate mortgages are averaging 3.23%, compared with 4.13% one year ago.

If you have not refinanced, you should seriously consider it. You could save hundreds of dollars a month.

Call us, if you would like to discuss this opportunity, at 598-3200,or 800 677-6683(MOVE).

COLORADO SPRINGS NUMBER OF FORECLOSURES FALLS AND BUILDING PERMITS PREDICTED TO RISE

The Gazette (Jan.4, 2012) reports that foreclosure filings in 2011 fell 25.4% in 2011, compared with 2010. This means that fewer homeowners were in trouble with their mortgages. Public Trustee Tom Mowle says he expects that trend to continue.

This reduction in foreclosures is accompanied by a forecast by the board president of the Housing and Building Association, John Cassiani, that there will be a 55 – 10% increase in building permits in 2012.

“It’s not going to be a rapid jump, but I think the uptick has started”, Mr. Cassiani said.

Considering both of these trends, things are looking very good for 2012 !!

AREA JOBLESS RATE DROPS TO LOWEST LEVEL IN 2 YEARS

The Gazette reports (Thursday, Jan. 5, 2012) that the Colorado Springs-area unemployment rate fell in November to its lowest level in more than two years. The area jobless rate fell to 9%, matching September 2009 as the lowest rate in the past 26 months.

At the Pikes Peak Workforce Center, a spokesman said that they are seeing a lot of recent hiring by call centers, a few high-tech companies and some seasonal jobs, such as landscaping. Sales and banking are also strong areas for hiring.

FED URGES ACTION ON EASING LENDING RESTRICTIONS

The Wall Street Journal (Thursday, Jan 5, 2012) reports that the Federal Reserve, in an unusual foray into housing policy, has called for more aggressive action from Congress to loosen mortgage-lending standards. The Fed stated that tight lending policies were holding back the recovery. They also urged more aggressive use of Fannie Mae and Freddie Mac to support a housing recovery.

The Fed's argument is that, although mortgage rates have been at record lows, there are many borrowers who have not been able to take advantage of the low rates because of blemishes on their credit histories, uneven incomes, or because their home values have left them with no, or very low equity.

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

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

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

LATEST STATISTICS

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area. Note that these statistics are generated every month by the Pikes Peak Association of Realtors and they are one of the important tools that we use in assisting Buyers and Sellers to establish realistic listing/buying prices. Also note that the data is broken down into specific neighborhoods in the Pikes Peak area.

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

As you can see from the statistics, the local market, mortgage rates and trends are constantly changing, even within our local neighborhoods. That’s why you should seek help and advice from a reliable, professional Realtor.

If you are looking for a new home or an investment property, we can show you how to receive the most current listings sent directly to your computer
We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

JOKE OF THE WEEK

So, Brett Favre dies and goes to heaven. Because he was such a famous person, God himself shows him around. After showing Brett all of the sights, God shows Brett what his home will be for all eternity….. a beautiful cottage, with a Packers flag in the front yard.

Brett thanks God, but then notices the house next door, which is a huge mansion with a swimming pool, a four car garage, a heliport in back, several orange and blue banners hanging from the porch and a giant Broncos flag flying from a pole in the front yard.

Brett says, “Lord, I don’t want to seem ungrateful, but I played in the NFL for many years, was MVP for several seasons, I won several Super Bowls and still own many passing records. …and I end up with this little cottage in Heaven? Tim Tebow, on the other hand has only won one measly playoff game, and he gets that huge mansion? ..It just doesn’t seem fair. !!!

God replies, “Oh no, Brett. You don’t understand. That mansion isn’t for Tim Tebow …That’s my house “

December 12, 2011

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

LOCAL JOBLESS RATE DROPS – AND 2012 LOOKS EVEN BETTER
Gazette, Wed. Dec. 7, 2011

The unemployment rate in the Colorado Springs area dropped in October to its lowest level in nearly two years, according to the U.S. Bureau of Labor Statistics

The local jobless rate fell to 9.2% in October from 9.3% in September, matching November 2009 as the lowest rate in the past two years.

Tom Binnings, a senior partner in Summit Economics, LLC, a local economic research and forecasting firm said, “We continue to see slight improvement in the local economy, despite the gloom-and-doom forecasts that the nation is going to head back into a recession because of the European debt crisis”.

Other experts were even more optimistic, with the University of Colorado at Boulder Leeds School of Business forecasting 23,000 more jobs in Colorado in 2012, on top of the estimated 27,500 jobs the state gained this year.

Service providers will supply most of the growth, according to the forecasts.

HOW IS HOUSING DOING? THE EXPERTS SAY THINGS ARE LOOKING UP

HousingWire (Dec. 12, 2011) reports that Barclays Capital predicts a housing recovery buoyed by improving job numbers and the fact that prices for undistressed homes will have stabilized without government support.

“In the absence of government homebuyer incentives, prices for non-distressed homes sales have stabilized for almost a year,” says Barclays analyst Stephen Kim. “This is the most important trend in the housing industry right now, and we are amazed at how little attention it has been getting from the media and the street. This stability on the part of non-distressed prices has occurred despite a very high share of distressed activity and continued declines in overall prices.”

Barclays said recent economic data – including higher job creation – point to some improvement potential in the sector.

Fannie Mae’s November National Housing Survey also sees a rise in consumer sentiment in November, as improved economic data pushed home price expectations into positive territory, for the first time in six months.

According to the Fannie Mae report, more respondents expect home prices to increase by at least 0.2% over the next year.

All of these factors are on the minds of voters as they approach the coming elections. In fact, in a recent survey by HouseLogic.com, the consumer website from the National Association of Realtors, voters say that jobs and the housing market will be two of the most important issues for them as they head for the polls in November.

With unemployment still high, it is easy to see why so many Americans are concerned about the job market, however, employment and the housing market are inextricably linked because economic growth and job creation cannot occur without a housing recovery.

Housing accounts for more than 15% of the U.S. Gross Domestic Product – It’s a key driver of the national economy. Home sales generate jobs. In fact, NAR estimates that, for every two homes sold, one job is created. And new spending on homebuilding products, furniture, etc. also have a significant economic impact.

ASKING TOO MUCH? real estate AGENTS MAY NOT LIST YOUR HOME

In the Gazette, Tuesday, Dec. 6, 2011, we were interviewed as to why local real estate listings are down to their lowest point in nearly seven years. In the article, we pointed out that home listings in November plummeted to 3,667 – the fewest in any month since 3,557 in January 2005. (See our Sales and Listings statistics, below).

As we noted in the interview, there are several reasons for the decline, but the most widespread reason is that homeowners are reluctant to list their homes at prices which are below their expectations. Unfortunately, in most cases, their expectations are too high, based upon the decline in values which the recession has caused.

The good news is that the decline in prices seems to have come to a halt, and many experts are predicting a modest rise in home prices in 2012. When that rise occurs, many homeowners who have been holding back will probably list their homes for sale, and the selection of homes available to Buyers will dramatically expand.

If you have been reluctant to list your home because you are concerned about the current market prices, give us a call to discuss the current value of your home. Prices vary from neighborhood to neighborhood and the market is changing daily. You might be pleasantly surprised to see what prices your home might bring.

Call us at 598-3200 or 1-800-677-6683 (MOVE).

LATEST SALES AND LISTING STATISTICS AS OF NOVEMBER 30, 2011

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area. Note that these statistics are generated every month by the Pikes Peak Association of Realtors and they are one of the important tools that we use in assisting Buyers and Sellers to establish realistic listing/buying prices. Also note that the data is broken down into specific neighborhoods in the Pikes Peak area.

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

3 LOCAL SCHOOL DISTRICTS EARN HIGHEST COLORADO GRADES

The Gazette (Dec. 12, 2011) informs us that three local school districts are among 18 statewide that received the highest marks under the Colorado Department of Education’s new accreditation standards.

For the second consecutive year, Academy School District 20, Cheyenne Mountain School District 12 and Lewis-Palmer School District 38 were deemed “accredited with distinction”.

Congratulations to our three champions and it is also encouraging to note that none of our local districts were given the lowest designation by the new accreditation system.

EDC LUNCHEON RECOGNIZES 22 LOCAL COMPANIES

On December 8, 2011, the Colorado Springs Regional Economic Development Corporation recognized 22 owner/executives from local companies which had relocated to, or expanded their existing operations in the local area during 2011.

The awards luncheon was a good indication of how the EDC is helping to build our city and strengthen our economy.

To see more about these expanding companies, CLICK HERE

Nice work, guys. Keep it up.

COLORADO RANKS 9TH AMONG HEALTHY STATES

The Colorado Springs Business Journal reports that Colorado ranks ninth among states with a healthy population, according to America’s Health Rankings. That’s an increase of four spots from last year, and once again, Colorado was named the least obese state.

The rankings are published by the United Health Foundation, the American Public Health Association and the Partnership for Prevention.

The state earned the Above-average ranking because of low levels of air pollution, lower levels of obesity and low prevalence of diabetes.

However, the report also states that our state has 814,000 obese people, an increase of 360,000 individuals over the past 10 years.

Overall, the country did not improve in health standards, meaning that there was a total balance between improvements and detriments in all 23 areas measured.

HEY, IT’S THE SLOW TIME OF THE YEAR – COME VISIT US AND HAVE A CUP OF COFFEE !!

This is the slow time of the year for Realtors, and most people are not looking to move or to list their homes for sale during the holidays, so we are getting lonely. Give us a call and come by for a visit and a cup of coffee !!

We appreciate our readers and we enjoy hearing from you. We get a lot of comments and suggestion about our weekly update and we want to tailor our weekly update so as to give you the most helpful real estate information available. Your input will help us improve the eNewsletter.

As a matter of fact, several of our readers have asked us where we get the information that we publish in these emails. Well, here is a partial list of the publications and sources we read on a regular basis, in order to keep abreast of the market for our eNewsletter readers:

Natl. Assoc. of Realtors news
Colo. Assoc. of Realtors news
Pikes Peak Assn. of Realtors news
The Gazette
Wall Street Journal
Bloomberg Businessweek
Forbes Magazine
Worldwide ERC (relocation Industry)
Housing Wire
Inman News – Daily
Colo. Springs Business Journal
DS News – Daily
relocation Directors Council
RIS Media – Daily
UCCS Quarterly Updates and Estimates (The Que)

And, if you would like us to add anyone to our subscription list (It’s free), just let us know.

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

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

When Prince Phillip was visiting the United States recently, the Commandant of West Point invited him to visit West Point, review the troops and see some of our modern weapons.

The parade commenced with a battalion of tanks, followed by a division of infantry, followed by armored personnel carriers and mobile artillery. There were mobile ballistic missile launchers, electronic jamming vehicles, and throughout the entire time the formations were overflown by squadrons of the most advanced interceptors, fighters, and long-range tactical and strategic bombers.

Prince Phillip was suitably impressed. Then he noticed that, way back at the end of the parade, there was a disorganized, messy bunch of men in rumpled suits tagging along behind the last artillery pieces.

"Who are they?" he asked.

"Ah," said the General, "those are our economists!"

"But what are economists doing in a military parade?” asked Prince Phillip.

"Your Highness” replied the General, "The rest of our weapons can wipe out specific targets, but those men can destroy an entire country”

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

"BLACK FRIDAY" IS STILL AVAILABLE FOR real estate BUYERS

The great deals that Buyers line up for at retail stores on the day after Thanksgiving are still available in spades for real estate Buyers.

In real estate, the period between Thanksgiving and Christmas is the slowest time of the year. Most people are so busy buying presents and Christmas trees, that they don't have time to buy houses.

So, if you're a prospective Buyer, this time of the year presents a great opportunity to get some wonderful deals on houses. Not only are prices and mortgage rates low, but Sellers are not getting any offers, so they are very eager to negotiate with the few prospective shoppers who are willing to buy during this slow time of the year.

Now, if you're a Seller, this means that you should make sure you are making your home look as good as possible during this slow time of the year. Price it right and make it look good, both inside and outside.

Most real estate professionals advise Sellers to list their homes during the holiday season rather than waiting, citing more serious Buyers and less competition among properties, according to a recent survey.

In their recent survey of 429 real estate professionals, Holiday Home Selling Survey found that 60% said they would always advise a Seller to list a home during the holiday season and agreed that "it's a good time to sell".

The vast majority of respondents, 79 %, said more serious Buyers were one of the biggest benefits of listing during the holidays, while 61 percent said less competition among homes was a plus.

But the biggest challenge, noted by 63% of respondents, was keeping a home "open house ready," meaning clean and staged, during this time of year.

The majority of respondents, 74 percent, said pricing a home to sell was even more important during the holiday season, and 40 percent said staging a home was more important at this time of year. Nearly a third said being flexible with contract terms such as move-in dates and when closing costs were paid was more essential during the holidays.

The way a home is staged during this time of year is also significant, according to the survey. Almost all respondents said they advised Sellers to put up some seasonal decorations.

Eighty percent of respondents said they encourage Sellers to light their fireplace when staging a home during the holiday season, while 62 percent said they suggested Sellers update outdoor lighting because the Buyer is more likely to see the home at night due to shorter days.

Other popular staging advice for Sellers included using winter-scented home fragrances before an open house, making the home feel more cozy through reading nooks and blankets on couches and beds, setting the table to showcase holiday entertaining, and playing seasonal music that is not specific to a particular holiday, the survey said.

If you would like to find your new home before Christmas, or sell your new home before the end of the year, just call us at 598-3200, or, 800-677-MOVE (6683).

GAZETTE REPORTS "housing market IN POSITIVE TERRITORY"

On Friday, Dec. 2, 2011, the Gazette reported that the pace of homebuilding increased last month in the Colorado Springs area while foreclosure filings fell, continuing a positive trend for the local housing market over the past few months.

Single-family homebuilding permits in El Paso County totaled 122 in November, up 27.2% from the same month last year, according to figures released Thursday by the Pikes Peak Regional Building Department. Year-over-year permit totals have increased in five of the past six months.

Local economists and housing officials track single-family permits as a measure of the health of the building industry and economy. When the economy is going well, permits are on the rise; when the economy goes south, so does the pace of homebuilding.

Permits are also tracked by local governments; lumber, drywall and other building materials that are purchased to construct houses generate millions in sales tax revenues that governments use to fund their annual budgets.

THERE’S GOOD NEWS IN THREE MORE AREAS

Three recent news stories all point to the fact that things are looking up.

First, NAR reports that the inventory of homes for sale is getting smaller. That's an indication that the glut of foreclosed properties which was artificially distorting inventories and prices is being absorbed by the market. That's good news. It means the real estate market is returning to normal.(The 'not so good' reason for this shrinking inventory is that some potential Sellers are 'underwater' with their mortgages and are waiting for their equity to come back, before they list their homes for sale. However, the rising prices of homes for sale could solve that problem within the next year.)

In fact, just this week we were interviewed by the Gazette to comment on the shrinking inventory of homes for sale and we pointed out that our current inventory of available homes (3667) is actually the lowest it has been since January of 2005, when it was 3725.

The Second piece of good news is that there was a jump in pending home sales in October.

Realtor.org. November 30, 2011, reports that pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010 when it stood at 85.5.

Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from Buyers who normally would have entered the market in recent years. We hope this is indicates more Buyers are taking advantage of the excellent affordability conditions,” he said.

“Many consumers are recognizing that home Buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,” Yun added.

Locally, home sales totaled 758 in October, a 20% jump over the same month last year. It was the fourth consecutive month of year-over-year increases in home sales.

The third piece of good news is that the Wall Street Journal (Dec. 1, 2011) reported that private businesses added 206,000 jobs in November, according to their latest survey.

So, SMILE !!!! Things are getting better every day !!!

STRONG TEMPTATIONS FOR HOME BUYING

Daily real estate News | Tuesday, November 29, 2011

The monthly cost of owning a home is more affordable now than in the past 15 years, and is less expensive than renting in numerous cities, according to The Wall Street Journal’s third-quarter survey.

Low home prices mixed with low mortgage rates—hovering at 4 percent or even lower—are creating an appealing Buyer’s market, analysts say. For example, buyers today have a 77 percent increase in their borrowing power compared to 1991, The Wall Street Journal points out that, in 1991 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage, whereas today the home owner taking advantage of current low rates can get a $350,000 loan for that same mortgage payment amount.

To illustrate, in 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage, whereas today the home owner taking advantage of current low rates can get a $350,000 loan for that same mortgage payment amount.

In the 28 cities that The Wall Street Journal tracked, it found monthly mortgage payments on the median-priced home—including taxes and insurance—to be lower than the average rent levels in 12 of the metro areas.

Nationwide, apartment rents are expected to rise by about 4 percent this year, which may make the owning vs. renting picture tilt even higher, according to some analysts.

BOOMERS MORE WILLING TO HELP KIDS WITH DOWN PAYMENTS
Daily real estate News | Wednesday, November 30, 2011

Two-thirds of baby boomers say they want to help their children or grandchildren with a home down payment, according to a study of more than 1,000 baby boomers age 45 and up conducted by Meredith Research Solutions for Better Homes and Gardens

In fact, one in five boomers surveyed say they've already loaned their children money, cosigned a mortgage, or given a cash gift for a down payment on a home.

Even baby boomers not considered wealthy are willing to offer help on down payments. While baby boomers who make more than $75,000 a year were found to be the most willing to offer help, 46 percent of baby boomers who make less than $75,000 per year say they also plan to help their child with a future home purchase, according to the survey.

So why are baby boomer parents so willing to help their children out with a home down payment? About 75 percent of boomers said they believe owning a home is a good investment for their children, and 58 percent said they think it’s still part of the American dream.

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

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

LATEST SALES AND LISTING STATISTICS AS OF NOVEMBER 30, 2011

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area. Note that these statistics are generated every month by the Pikes Peak Association of Realtors and they are one of the important tools that we use in assisting Buyers and Sellers to establish realistic listing/buying prices. Also note that the data is broken down into specific neighborhoods in the Pikes Peak area.

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

JOKE OF THE WEEK

November 21, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

BREAKING NEWS …U.S. WILL REMAIN A NATION OF HOMEOWNERS

The U.S. will not become a nation of renters; there are just too many benefits, both financial and otherwise, to own versus rent. That’s according to the combined findings of several recent studies presented during the "Buyer or Renter Nation?" session held during the 2011 Realtors Conference and Expo last week and also the NAR annual survey which was released last week.

One analysis of homeowners which spanned a 31-year period compared the ownership benefits in terms of appreciation and interest deductibility and costs homeowners incur with down payment, taxes, insurance and maintenance and, in the analysis, 84% of homeowners came out ahead.

According to the most recent data from the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s.

"We knew that homeowners, on average, accumulate more wealth than renters", said Ken Johnson, editor, Journal of Housing Research at Florida International University. "These findings indicate that homeownership is a self-imposed savings plan."

"Homeownership is more affordable today than at any time over the last 30 years", Johnson said.

The NAR survey shows that 78% of recent homebuyers say their home is a good investment and 45% believe it’s better than stocks.

Another analysis conducted by Johnson, Beracha, Hilla Skiba and Mark Hirschey determined that housing affordability is at record levels.

Twenty-three states are at 30-year record levels of affordability based on price-to-income ratios, and all 50 states are at record affordability levels based on mortgage- payment-to-income ratios.

Beyond the financial advantages of homeownership, Johnson also cited several studies that have demonstrated how homeownership enhances civic pride, improves voter turnout, increases personal happiness, reduces crime, and provides a better familial environment.

Some of the other data presented in the NAR survey were:

First-time buyers who financed their purchase used a variety of resources for their down-payment. 75% tapped into savings. 26% received a gift from a friend or relative, 7% received a loan from a friend or relative. 9% sold stocks or bonds. 8% tapped into a 401(k) fund.

94% of entry-level buyers chose a fixed-rate mortgage

54% of first-time buyers financed with a low-down-payment FHA mortgage and 6% used the VA loan program which requires no down-payment.

64% of all buyers are married couples

18% are single women

10% are single men

7% are unmarried couples

The biggest factors influencing neighborhood choice were (in descending order) quality of the neighborhood, convenience to jobs, affordability, convenience to family and friends, neighborhood design, convenience to shopping, quality of school district, convenience to schools, and convenience to entertainment or leisure activities.

The typical home seller was 53 years old and their income was $101,500.

The typical seller who purchased a home nine years ago realized a median equity gain of $26,000, a 16% increase, while sellers who were in their homes for 11 to 15 years saw a median gain of $57,900, or 39%. Over time, the survey findings consistently show that the longer you own, the larger your return.

From our standpoint, it was interesting to note that home buyers thought the most important services agents provide are helping find the right house and negotiating price and sales terms.

Some other interesting facts were that 91% of buyers who used the Internet to search for a home, purchased through a real estate agent, as did 70% of non-Internet users, who were more likely to purchase directly from a builder or from an owner they already knew.

Like sellers, buyers most commonly choose an agent based upon a referral from a friend, neighbor or relative, with trustworthiness and reputation being the most important factors. That explains why, after 39 years of serving the Pikes Peak Area, we rely almost completely on referrals from our friends and past clients for our business.

Give us a call to discuss your real estate needs. We will do a great job for you…just ask our past clients. Call us at 598-3200, or, 1 800 677-6683 (MOVE).

ARE THINGS LOOKING UP? …HERE’S A FEW SOURCES THAT THINK SO

Realtor Magazine (November 18, 2011) says that the housing picture is expected to brighten in 2012. They cite a forecast by Fiserv, a financial information services firm which predicts that 95% of the 384 metro areas it tracks will see home prices rise in 2012…..and a survey by MacroMarkets of 100 economists and real estate professionals that predicts a rise in home values of .25% in the new year.

Bloomberg reports that economists at J.P.Morgan Chase & Co. now see gross domestic product rising 3% in the final quarter and Morgan Stanley & Co. is looking for a 3.5%. They also predict that the strengthening economy will help lift US stock prices. They also say the economic pick-up may also push up yields on Treasury securities.

Karen Hoguet, chief financial officer for Macy’s Inc. says, "We’ll have a spectacular Christmas".

Lawrence Yun, chief economist for the national Association of Realtors is quoted in Realtor Magazine as saying, "Housing affordability is about the best it’s ever been. Investors can anticipate strong rent returns and solid home appreciation. Nor is there any reason to believe this rent growth will cool. If annual rent gains stay near 3.5%, rents will double in 20 years. If they reach 5%, rent doubling will occur in 14 years. That means home prices could also double in 14 to 20 years."

The Gazette (November 17, 2011) reports that US manufacturing is recovering from a slump, and inflation may be peaking. Strong consumer spending helped the economy grow at an annual rate of 2.5% in the July-September quarter. Retail sales rose in October, leading economists to predict similar growth in the final three months of the year.

Finally, a report issued by the Mortgage Bankers Association shows that the share of households delinquent on their mortgage payments has fallen to the lowest level since the end of 2008, offering signs that modest job gains are stemming further damage in the US housing sector.

And you thought we were the only optimists on the planet ……SMILE !!! 2012 is going to be a great year.

NAR TO THE RESCUE

The National Association of Realtors notified us last Friday that Congress had restored the loan limits for the Federal Housing Administration (FHA) for two years. This reversal by Congress represents a victory for all prospective home Buyers, for the real estate market nationally, and for the national economy.

The National Association of Realtors (NAR) had lobbied intensely for this reversal, to help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties and 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000.

The new regulation reinstates the FHA loan limits through 2013 at 125% of local area median homes, up to a maximum of $729,750 in

the highest cost markets, the floor will remain at $271,050. However, Congress chose not to apply the loan limits restoration to Fannie Mae and Fredddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115% of local area median home prices up to $625,500.

The bill also provides for a short-tern extension of the National Flood Insurance Program through December 16, 2011. NAR promised to continue to press Congress to authorize a five-year extension of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.

As the Wall Street Journal points out (Nov. 17, 2011) "Five years ago, it was too easy to get a mortgage. Today, it’s probably too hard". This reversal by Congress will help address that problem.

Good Work, NAR. We’re proud to be a member.

THE LATEST QUE IS OUT – HAVE YOU SEEN IT ???

Every quarter, the College of Business and Administration of the University of Colorado at Colorado Springs publishes the Quarterly Updates and Estimates for El Paso County. This in-depth analysis of every aspect of our local economy is a valuable tool for personal and business planning. It is full of helpful charts and graphs about the real estate market, auto sales, tax revenues, employment trends, wages and even features a measurement of the local "Misery Index".

If you would like a copy of this very informative analysis of our local economy in the third quarter of 2011, produced by Fred Crowley, chief economist for the Southern Colorado Economic Forum, CLICK HERE.

IN 2012, JUST LIKE ALWAYS, POLITICS WILL TRUMP PESSIMISM

Our annual prediction is that, because 2012 is an election year, Washington will pull out all the stops and do whatever is necessary to boost our economy, so that voters will not go to the voting booths mad. In the time-honored tradition of "Bread and Circuses", we will see steps taken to help the housing market, increase employment and put "a chicken in every pot and a car in every garage".

So, relax. 2012 should be a great year for all of us.

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

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

LATEST SALES AND LISTING STATISTICS

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area.

JOKE OF THE WEEK

Ducking into confession with a turkey in his arms, Brian said, "Forgive me, Father, for I have sinned. I stole this turkey to feed my family. Would you take it and settle my guilt?"

"Certainly not," said the Priest. "As penance, you must return it to the one from whom you stole it."

"I tried," Brian sobbed, "but he refused. Oh, Father, what should I do?"

"If what you say is true, then it is all right for you to keep it for your family."

Thanking the Priest, Brian hurried off.

When confessions were over, the Priest returned to his residence. When he walked into the kitchen, he found that someone had stolen his turkey.

November 14, 2011

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

COLORADO SPRINGS IS LISTED AS ONE OF THE “TOP-8 HEALTHIEST HOUSING MARKETS”

Realtor Magazine (November 8, 2011) cites a survey of the healthiest housing markets in the U.S., conducted by Builder Magazine. Builder teamed with Hanley Wood Market Intelligence to compile its annual list, factoring in housing projections from Moody’s Economy.com. The list is based on projected price appreciation, population growth, income growth and improving employment picture.

As the Realtor article points out, the U.S. housing markets projected to have the biggest gains into 2012 tend to be home to major universities, strong private sector employment, or have nearby military bases. Those criteria describe Colorado Springs exactly.

Builder Magazine lists Colorado Springs as number “8” on its list, and points out that troops returning from Afghanistan will boom our economy. Local home prices are predicted to rise 2.6%. Employment is predicted to grow by 1.4% and households to increase by 1.8% in 2012.

Ain’t you glad you live here??

HOME PRICES DROPPED IN 2011 …BUT COLORADO SPRINGS IS BETTER OFF THAN MOST OTHER AREAS

Last week the National Association of Realtors released their current analysis of the previous four quarters of median home prices in the largest 150 communities in the U.S. As expected, in the four quarters ending September 30, 2011, prices declined an average of 4.7% nationally. But the good news is that Colorado Springs median home prices dropped only 3.8%. In other words, we are 19% better off than the rest of the country…..

How might this data affect your decision to buy a home now? Well, let’s look at a specific example. Let’s say you have been considering buying your $250,000 home in Colorado Springs. With a 3.5% down-payment of $8,750, that would bring the amount financed to $241,250. To that number, we must add the FHA mortgage insurance (a one-time 1.5% payment) of $3,618.75. So, the entire amount financed by the lender would be $244,868.75. In today’s market, the numbers would work out like this:

     Monthly Principal and Interest payment (3.75%)             $1,134                         

     Monthly mortgage premium (.5% MIP)                              $102

     Estimated monthly real estate taxes                                $125

     Estimated monthly home insurance premium                      $80

     Total monthly payment                                                  $1441 

But that doesn’t tell the whole story. Don’t forget that, as a homeowner, you get to deduct several expenses from your taxable income. Using the example we cited, above, your annual deductions would amount to:

• Home Interest payments                                               $9,106
• Property taxes (estimated)                                            $1,500
• Total                                                                           $10,606

Assuming that your tax bracket is 28%, those two credits would mean an annual tax credit to you of $2,970, or $248 a month. When you deduct that tax credit, it brings down your actual cost of ownership to a monthly expense of $1,193. ($1,441 - $248)

The bottom line is that, if you are paying anything like $1,193 a month in rent, you are missing out on the opportunity to build your total worth (equity) and your estate, the ability to put a lid on your housing expense for the next thirty years (thus avoiding the constant problem of ever-increasing rents) and the satisfaction of owning your own home….And, by the way, the Gazette (Friday, Nov. 11, 2011) notes that rents in Colorado Springs soared to a record-high in the third quarter and are expected to keep climbing as demand remains strong ….In fact, if you are now living as a renter in that same home we used in our example, you are probably paying approximately $1,450 a month….That means it is costing you $257 more per month to rent that house than it would cost you to own it. …Strange, but true !!!

And, keep in mind that these numbers won’t look this good forever. The fact is that, with every passing day, as foreclosures and short-sales are absorbed back into the market, there will be fewer homes in the inventory, thus increasing prices,….also, there will absolutely be increases in interest rates (We are currently at an historically low rate) ….and, inflation is also scheduled to drive up home prices dramatically.

Bottom line:  It is less expensive to own a home in Colorado Springs than it is to rent.

Call us at 598-3200, or 1-800-677-6683 to discuss this once-in-a-lifetime opportunity. Act now, and you will be sending me ‘Thank-You’ notes for the next 30 years.

FORECLOSURE FILINGS AND SALES DOWN IN EL PASO COUNTY

The Colorado Springs Business Journal reports that third quarter foreclosure filings and sales at auction were down statewide and in El Paso County. Foreclosure filings dropped nearly 25% in the third quarter of this year, according to a Colorado Division of Housing report.

The number of foreclosure home sales dropped more than a third from 746 in the third quarter of 2010 to 497 in the third quarter of 2011.

While new filings are on the rise for the year, 2011 is still shaping up to have the lowest number of foreclosure filings and sales at auction since 2009, according to the state division of housing.

Although it’s probably too soon to start singing, “Happy Days Are Here Again”, it looks like the band should begin to tune up.

SURVEY REVEALS WHY BUYERS ARE WAITING ON THE SIDELINES

According to Realtor Magazine (Nov.9,2011), a recent survey by Move, Inc. shows that 27% of Americans say they plan to buy a home in the future (with most saying in two or more years), and only 2% say they plan to purchase a home in the next 12 months. So, why are so many buyers continuing to wait when home affordability is so high and interest rates are so low?

About 23% of those surveyed say they are delaying buying a home because they are concerned about the real estate market in their local area, particularly with concerns about the future of home values, the economy and jobs, as well as difficulty in saving for a down-payment.

Nearly 35% of those surveyed say their inability to get credit or find affordable credit are the main reasons why they are putting off purchasing a home.

The survey also found that younger adults tend to spend more on housing than older adults. For example, the survey revealed that two out of five – or, about 40% of millennials, say they should spend 30% to 60% of their gross monthly income on housing. More than half of older Americans, on the other hand, say they plan to spend less than 30% of their gross wages on housing.

The survey also discovered that seven out of ten Americans say that candidates’ positions on housing will be very important to them in the 2012 presidential and congressional elections.

Survey respondents identified the following top housing priorities for the next president’s first 100 days in office:

1. Helping homeowners avoid foreclosure
2. Keeping interest rates low
3. Making more affordable mortgage credit available

Errol Samuelson, chief revenue officer of Move, Inc., said in a statement, “Our survey found that 27.3% of Americans still plan on buying a home. The survey illustrates candidates who share the concerns of the American people and make housing a top priority will win their confidence.”

TIPS FOR SELLING A HOME IN THE WINTER

Experts offer some of the following tips for selling a home in the winter.

• Stage it:

Arrange furniture so the selling-points in the home are not overlooked

Paint rooms inviting colors

Display pictures of the home in warmer, summer months

Turn up the heat to a comfortable level. Cold homes don’t sell

Price it right

Keep sidewalks and driveways clear of snow, ice and leaves – giving potential buyers a clear path to your front door.

Light it up:

Keep all the light on, even when you’re not there

Open the blinds and drapes

Hire me as your agent (I just stuck that in there, to remind you that a good agent can help you get your house sold. 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 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

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

LATEST SALES AND LISTING STATISTICS

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

JOKE OF THE WEEK

THERE WAS LIFE BEFORE THE COMPUTER

An application was for employment
A program was a TV show
A cursor used profanity
A keyboard was a piano!

Memory was something that you lost with age
A CD was a bank account!
And if you had a broken disk,
It would hurt when you found out!

Compress was something you did to garbage
Not something you did to a file
And if you unzipped anything in public
You'd be in jail for awhile!

Log on was adding wood to a fire
Hard drive was a long trip on the road
A mouse pad was where a mouse lived
And a backup happened to your commode!

Cut--you did with a pocket knife
Paste you did with glue
A web was a spider's home
And a virus was the flu!

I guess I'll stick to my pad and paper
And the memory in my head
I hear nobody's been killed in a computer crash
But when it happens they wish they were dead!

November 7, 2011

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

GOOD NEWS – LOCAL HOME SALES RISE WHILE PRICES FALL

The Gazette (November 5, 2011) notes that local home sales totaled 758 in October, a 20.1% jump over the same month last year. This increase in home sales was the fourth consecutive month of year-over-year increases in home sales.

Through the first 10 months of 2011, single family home sales totaled 7,164 in the Pikes Peak region, a 2.3% increase over the same period last year.

Another good sign that our local market is stabilizing and starting to grow was the fact that the inventory of available homes fell to 3,959. That’s its lowest point in nearly two years and represents a 22.7% decline from the same month last year, and the fewest number of listings in any month since December of 2009, when 3,951 homes were listed.

Some of the other indicators that point to a recovering local housing market and a great opportunity for homebuyers are:

? Low mortgage rates are still available ….Buyers can still get an FHA 3.75%, 30 year, fixed-rate, residential mortgage, with a minimum down-payment of 3.5%.

? The local unemployment rate in September fell to 9.3%, the lowest level in nearly two years, as nearly 1,800 residents returned to the job market, and even more than that found work, according to the U.S. Bureau of Labor Statistics.

? According to the Gazette (Friday, Nov. 4, 2011), U.S. merchants are reporting solid gains for October, a sign that consumers are starting to spend, again…..a sure sign that the economy is still on track to recover…And, as a result of the influx of troops returning to Fort Carson, our local retail sales will even outdistance the national figures.

? Experts are predicting that the housing market will show some very encouraging signs of recovery in the second quarter of 2012, as the inventory of foreclosures shrinks and as the federal government introduces some housing programs designed to stimulate the housing market (just in time for the upcoming elections).

The bottom line for Buyers is that, as mortgage rates and home prices start to rise (as they definitely will) and as the inventory of available homes continues to shrink, the people who buy their new home today will look back in two years and see that they made one of the best investments of their lifetime.

Call us at 598-3200 or, 800 677-6683 (MOVE) to discuss this present market and where it is headed. Don’t miss the boat !!!

HOMEOWNERSHIP RATE RISES ONLY SLIGHTLY AFTER TWO YEARS OF DECLINE –

After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report released Wednesday.

With foreclosures forcing homeowners out of their homes and buyers waiting on the sidelines as home values declined, the homeownership rate has been on the decline for quite some time. In fact, according to Bloomberg, the rise in the third quarter of 2011 is the first in two years, according to the most recent Census figures.

However, the 0.4% increase, which brought the homeownership rate from 65.9% to 66.3% for the third quarter of 2011, was not large enough to result in an annual increase.

The declining homeownership rate is a reflection of the increase in foreclosures and of the economic uncertainty which has plagued all segments of our economy.

One result of this decline in homeownership is that investors are now looking at an increase in the number of families which have now become prospective renters, rather than homeowners. These investors are seeing a unique opportunity and they are putting their investment money into rental property. For more details, see the following article……

RENTAL YIELDS LOOK BETTER THAN EVER

As homeownership has been declining, rentals have become a more significant factor within the real estate industry. In fact, rental property now presents a great opportunity for investors. Capital Economics predicts that, "Rental yields will soon rise above 5.5%, comfortably beating the yields available on Treasuries and equities."

As evidence that the local "Smart Money" is betting on the value of investment property, note that 3 upscale apartment projects were recently announced for the Springs.

The Gazette (November 5, 2011) reported that over $100 million will be spent on "an explosion of apartment development taking place in the Pikes Peak region".

Norwood Development Group and Western National Group will partner to develop the projects on Nor’wood sites on the city’s east, northeast and northwest sides. The complexes will add about 835 units at a time when apartment vacancy rates have plunged to single digits and rents are soaring.

The complexes will feature one-, two-, and three bedroom units, with rents ranging from about $850 to $1,400.

Call us at 598-3200 or, 800 677-6683 (MOVE) to explore the investment opportunities currently available for smart investors. You may not want to buy a new residence, but you should consider buying some investment property. It’s a great opportunity and a chance to build your retirement plan.

PACE OF LOCAL HOMEBUILDING PICKS UP

The Gazette reports (Wednesday, November 2, 2011) that Colorado Springs –area builders saw a big jump last month in the pace of home construction.

Single-family building permits in the Springs and El Paso County totaled 139 in October, a 36.3% increase over the same month a year ago, according to a report released Tuesday by the Pikes Peak Regional Building department.

Kyle Campbell, board president of the Housing and Building Association of Colorado Springs said single-family permits were issued across a wide range of prices. Campbell said he couldn’t pinpoint a single factor for the uptick in construction activity, but pent-up demand on the part of recession-weary consumers and mortgage rates that remained at the lowest level in decades are possible reasons.

It’s a good sign that things are picking up !!!

WHY 20% DOWNPAYMENTS DON’T ALWAYS MAKE SENSE

Those buyers who have enough money to put 20% - or more- down on the purchase of a home may want to consider another approach –preserving some of their cash for savings, investing or other purposes.

With today’s interest rates and the competitive pricing of private mortgage insurance, borrowers can retain some of their money by putting less money down on a home- say only 10% - and still get a low monthly payment.

In the past, the adage was’ "The more you borrow, the more you leverage". In today’s financial times, the scenario is much different. Today, borrowers can leverage private mortgage insurance to put as little as 5% down on home and still have a competitive payment. By utilizing this strategy, home buyers are able to leverage their current assets, while still keeping sufficient cash reserves.

Give us a call at 598-3200 or, 800 677-6683 (MOVE) to discuss this strategy and we will be pleased to explore your various options with you.

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

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

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

LATEST SALES AND LISTING STATISTICS

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

JOKE OF THE WEEK

We just had a great idea for balancing the federal budget.

The present plan calls for a panel of really smart guys to balance the budget by a certain date and, if they can’t, then the Defense budget gets cut.

Our idea is that, if these geniuses fail to balance the budget by deadline time, the salaries of all Congressmen and Senators would get cut.

Wanna bet on how fast the budget would get balanced?

October 31, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HOW’S OUR LOCAL ECONOMY DOING? …..PRETTY GOOD, ACTUALLY

 When comparing data from September 2011 with data from September 2010, The Gazette (Oct. 30, 2011) points out that seven out of eight indicators in our local economy look positive.

The “good news” is that:

• Initial claims for unemployment were down 9.4%
• Unemployment rate was down 8.6%
• Single-family home permits were up 53.1%
• New auto and truck registrations were up 10.5%
• Taxable retail sales were up 2%
• Hotel occupancy rate was up to 76.5%
• Foreclosure filings were down 20.4%

 As always, the trouble spot is the employment picture, with wage and salary jobs down 0.8%. This troubled aspect of the economy seems to be a national phenomenon and explains why all of the candidates for office are emphasizing “Jobs, jobs, jobs”.

We are happy to see that our new Mayor and City Council are concentrating on attracting new businesses to our area, so that our employment picture improves.

BUILDER MAGAZINE SAYS COLORADO SPRINGS LOOKS GOOD

The Gazette, Oct. 30, 2011

Colorado Springs’ housing market will be among the country’s best next year, according to a national forecast by Builder Magazine. The Springs ranks #7 in Builder’s Top 20 list of healthiest markets for 2012.

Builder publishes the Top 20 list in conjunction with parent company Hanley Woods, a real estate media and information services firm. Its projections use data from Moody’s Economy.com, which focuses on jobs, price appreciation, population growth and other factors that drive housing.

Incentives Grow to Get Struggling Home Buyers Moving

Daily real estate News | Friday, October 21, 2011

With distressed properties accounting for 30 percent of existing-home sales, more Realtors are finding a growing part of their job is offering struggling home owners “cash for keys,” according to a recent article at MSNBC.com.

In the “Cash for Keys” program, home owners who are facing foreclosure are typically offered between $500 to $2,500 if they agree to move out within 30 days (and leave the place clean, too). The benefits of this program for the cash-strapped homeowner are:

• ·         It frees home owners from their mortgage obligations and provides them with some money for moving expenses
• ·         It helps avoid a ruined credit profile from a foreclosure.

The benefit to the lender is that it allows him to avoid the extra costs of an eviction. 

The “Cash for Keys” program is expected to become a more mainstream option for handling short sales too, not just foreclosures. For example, Bank of America is piloting a program in Florida that will pay up to $20,000 to short sellers as well as forgive their loan deficiency. 

Banks are looking at offering more incentives to short sales since their losses tend to be far less than a foreclosure. For example, foreclosure properties tend to sell for 40 percent below non-comparable non-distressed properties while short sales tend to sell for only 20 percent less.

“The more the lender’s inventory builds up, the more generous they tend to be with  “Cash for Keys”, says Benjamin Barber, a senior sales specialist at Green River Capital LC in West Valley, Utah, in an interview with MSNBC.com.

Realtors are often the ones who deliver the “cash for keys” offer to home owners. And as more real estate professionals continue to find foreclosures and short sales as an increasing part of their job description, they’re even taking training classes on how to negotiate such situations with home owners and navigate these often-complex transactions.

About 21 percent of National Association of REALTORS® members now hold special certifications that help agents better handle distressed property — that’s up from 12 percent last year.

NEW Survey Reveals 5 Home Buying Myths

Daily real estate News | Friday, October 28, 2011

Overall, today’s home buyers tend to be fairly knowledgeable about the real estate market, but there are still a few points of confusion about the process. A new survey of 1,000 potential home buyers by Zillow finds five main areas of confusion:

1. Appreciation: About 42 percent of home buyers believe home values will appreciate by 7 percent a year. Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year. 
2. 2.       Mortgage insurance: 41 percent of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their downpayment. Reality: Buyers only need to purchase PMI if their downpayment is less than 20 percent of the home’s purchase price.
3. 3.       Appraisals: 56 percent of the buyers said the purpose of the appraisal was to determine if a home was in good condition. Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value. 
4. 4.       Home owner’s insurance: 37 percent of home buyers said that buying home owner’s insurance is optional. Reality: Lenders require homebuyers to purchase homeowner’s insurance. 
5. 5.       Ownership: 47 percent of home buyers said a prospective buyer owns a home after the purchase contract is signed. Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership. 

Let us help guide you through the home-buying process by explaining the realities you might not be aware of as you look for your new home. Call us at 598-3200,or, (800) 677-MOVE (6683).

and, as long as we are talking about real estate myths, here are

7 COMMONLY HELD myths about Home Inspections

Source: American Society of Home Inspectors, Des Plaines, Ill.

An estimated 70 percent of all homes sold annually receive a home inspection. Still, confusion persists over what the process does, and doesn’t, involve. Here are seven common misconceptions:

1. 1.       Licensing ensures a professional home inspection. Wrong. Currently, 29 states have some form of inspector regulation—but state requirements vary widely. Verifying the inspector’s credentials, experience, and adherence to professional standards is still important, even in a state with licensing.
2. 2.       A home inspection is designed to identify problems that might be the basis for renegotiating the purchase offer. Wrong. The inspector’s service is primarily one of education, providing buyers with a better understanding of the physical condition of the home and giving them the knowledge to make smart decisions. The inspector’s observations or recommendations might help to dispel buyer anxieties and provide useful home repair and maintenance suggestions. When areas of concern or problems are identified, the inspector should play no role in fixing them or addressing them with the seller.
3. 3.       Home inspections are needed for existing homes only. Wrong. New construction is often the most in need of a thorough inspection. Many professionals offer “phase inspections” in which the property can be checked at various stages of completion.
4. 4.       Having an appraisal, code inspection, and termite or other hazard inspection eliminates the need for a separate home inspection. Wrong. While each of these inspections is valuable, these should never be used in place of a complete home inspection. Similarly, a home inspection should never take the place of other prescribed inspections.
5. 5.       Home inspections are for the buyer. It’s true, most inspections are conducted on buyers’ behalf during the purchase process, but prelisting inspections for sellers also can be beneficial. Prelisting inspections can identify areas of concern to be addressed before the sale and can assist in disclosure matters. The American Society of Home Inspectors recommends that a home be inspected every 10 years, regardless of whether a sale is taking place.
6. 6.       Home inspectors are too nitpicky and will identify every little problem in the home. A professional home inspection is an objective examination of the condition of the visible and accessible components of a home on the day of the inspection. Professional home inspectors don’t point out every small problem or defect in a home. Minor or cosmetic flaws, for example, should be apparent without the aid of a professional.
7. 7.       All home inspector certification and credentialing programs are equal. Some organizations for inspectors offer credentials in return for nothing more than an annual payment, while others are new or exist mainly online. When selecting a home inspector, look at the background, history, and reputation of the person’s certifying organization.

This is another area in which we can assist you. Give us a call 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.

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

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

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes peak area, as published by the Pikes Peak Association of Realtors.

JOKE OF THE WEEK

We came across this joke on the Internet, and the timing seemed right !

The government is recommending another ‘Economic Stimulus’ aimed at pumping money into the economy, to help pull us out of the recession (which officially ended several months ago, in case you hadn’t noticed).  

This is indeed a very interesting idea, but many people don’t understand how to best spend their stimulus money in order to help the economy, so, we’ll explain it by using a Q & A format:

Q. What is an 'Economic Stimulus' payment ?
A. It is money that the federal government will send to taxpayers.

Q.. Where will the government get this money ?
A. From taxpayers.

Q. So the government is giving me back my own money ?
A. Only a smidgen of it.

Q. What is the purpose of this payment ?
A. The plan is for you to use the money to purchase a high-definition TV set, thus stimulating the economy.

Q. But isn't that stimulating the economy of China ?
A. Shut up.

Below is some helpful advice on how to best help the U.S. economy by spending your stimulus check wisely:

* If you spend the stimulus money at Wal-Mart, the money will go to China or Sri Lanka .

* If you spend it on gasoline, your money will go to the Arabs.

* If you purchase a computer, it will go to India, Taiwan or China .

* If you purchase fruit and vegetables, it will go to Mexico, Honduras and Guatemala .

* If you buy an efficient car, it will go to Japan, Korea or Finland .

* If you purchase useless stuff, it will go to Taiwan .

* If you pay your credit cards off, or buy stock, it will go to management bonuses and they will hide it offshore.

Instead, if you want to keep the money in America, you should consider:

1) Spending it at a yard sale, or

2) Going to a ball game, or

3) Spending it on prostitutes, or

4) Beer, or

5) A tattoo.

(These are the only American businesses still operating in the U.S. )

Conclusion:

When you receive your stimulus money, the most patriotic thing you can do with it is, go to a ball game and drink beer all day with a tattooed prostitute that you met at a yard sale. !

No need to thank us, we’re just glad we could be of help.

October 24, 2011

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

AT LAST !!! A GOVERNMENT PROGRAM TO HELP THE GOOD GUYS

The Wall Street Journal (Monday, Oct. 24, 2011), as well as Fox News and MSNBC describe an upcoming  major overhaul of an under-used mortgage-refinance program designed to help millions of Americans whose home values have tumbled. Federal regulators plan to announce the program today, in an effort to revive the stagnant housing market caused by a surfeit of homeowners who have been unable to re-finance their ‘underwater’ homes.

The overhaul will, among other things, let borrowers who have good credit and who have kept up their mortgage payments, refinance regardless of how far their homes have fallen in value.

The plan would streamline the refinance process by eliminating appraisals and extensive underwriting requirements for most borrowers, as long as the homeowners are current on their mortgage payments.

Fannie Mae and Freddie Mac have also agreed to waive some fees which have made refinancing less attractive to many homeowners.

Officials at FHA, which regulates Fannie and Freddie, estimate that the plan will enable between 800,000 and 1,000,000 more borrowers to refinance at lower rates and thus, be able to continue to pay their mortgages.

CoreLogic, a company that tracks 85% of all mortgages, estimates that 20 million borrowers with equity in their homes could cut the interest rates on their homes by more than one percentage point, if they could refinance. That’s about a quarter of all the homeowners in the country.

Pricing details won’t be published until mid-November, and lenders could begin financing loans under the re-tooled program as soon as December 1, according to federal officials.

Bottom Line: If you bought your present home with a loan amount of $250,000 and an interest rate of 6.5%, this new program would allow you to re-finance to a rate of 4% and thus lower your monthly mortgage payment by approximately $520 per month. …Even if your home is currently ‘under water’.

If your present mortgage rate is 5.5%, your re-financed 4% loan would save you approximately $312 per month.

This new money in your pocket should now enable you to pay for Junior’s college, or, if you wish to upgrade to a better home and cash in on the current opportunities in the housing market, you could:
1. Re-finance your current home.
2. Rent it out (it’s a hot rental market right now), and
3. Buy that better residence at a very low price and a historically-low interest rate.  

Call us at 598-3200, or 800-677-MOVE (6683) to discuss what this new opportunity could mean to you

…… It’s nice to see the good guys win, for a change !!!

DOES RENTING OUT YOUR PRESENT HOME MAKE GOOD SENSE?

Daily real estate News (Tuesday, October 18, 2011) Identifies the rental market as housing’s bright spot.

“With rental demand rising and apartment economics improving, the multifamily sector is a positive signal for the U.S. housing industry,” writes Frank Nothaft, Freddie Mac’s Chief Economist, in the October 2011 U.S. Economic and housing market Outlook.
 
An increase of 1.4 million households moved into rental housing in the year ending June 2011--a 4 percent rise in the number of tenant households in one year alone, the Census Bureau reports. Meanwhile, the home ownership rate dropped about 1.5 percent over the past year.

Rents are rising at a 5.17 percent annual rate — up from last year’s 4.72 percent rate. If rents continue to grow at their current pace, they won’t be too far behind the record-high reached in 2000 of 6.18 percent, according to Axiometrics Inc.

The rental market has added about 1.4 million new renters this year, some of whom were former home owners who faced foreclosure or a short sale. Renters are increasingly showing an appetite for single-family homes owned by investors
.
As such, the number of investors in the market is growing. Investors make up anywhere between 20 and 40 percent of monthly existing home sales, according to home-sale data. With home prices and interest rates low, more aspiring investors are jumping in. Nearly 60 percent of investors in a recent survey by Realtor.com considered themselves newcomers to real estate investing.

The increase in rental demand is due partially to some households who may have faced a short sale or foreclosure of a home they owned. However, most of the rental demand is coming from young and newly formed households, who are postponing home ownership. The home ownership rate for household heads under 30 years of age has fallen the sharpest in recent years.

As demand increases, vacancy rates are dropping and rents are rising.

Keep in mind that rents are a steady return on your investment through the years, leaving you with an attractive asset when prices improve. And they will. The best profits in real estate accrue to long-term investors who take a long-term view.

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

RIDING THE INVESTOR WAVE
By Lawrence Yun, NAR Chief Economist
 
Interest rates continue at historic lows. Home prices in many markets are more affordable than ever. Indeed, housing affordability conditions are among the best they have ever been.

Especially for investors with cash, the situation is providing them with a golden opportunity. The investor share of home purchases has been creeping up. Investors accounted for 18 percent of home purchase activity in July; the share reached 22 percent in August. (The first-time homebuyer share fell after the homebuyer tax credit expired last year, and investors stepped in to fill much of the gap).

A significant share of investors is purchasing properties via all-cash transactions. All-cash purchases represented 30 percent of all home sales transactions across the country and accounted for over half of the sales in hard-hit regions like Las Vegas and Miami.

At the same time, higher rents are also attracting investors to the market and the attractive rates of return from rising rental income is a strong lure.

Rents rose at a better than 3 percent annualized rate in the third quarter of 2011, according to government data, and private data sources suggest even faster rent growth. If annual rent gains remain near 3.5 percent, rents will double in 20 years. If the rents rise 5 percent a year, rents will have doubled in 14 years.

In addition to strong returns on rental property, investors can anticipate solid home price appreciation over the long haul.

Given that the housing bubble has virtually deflated, the future path for home prices path should follow the future path for rent growth. That means home prices could also double in 14 to 20 years, though it is unclear as to when home prices will begin to catch up with rents. But long-term investors are sure to catch some if not most of the upward ride.

Call us at 598-3200, or 800-677-MOVE (6683) to discuss this great opportunity.

LOCAL HOMEBUILDERS PICK UP PACE IN SEPTEMBER

Local Homebuilders started projects in September at the fastest pace in 17 months, a hopeful sign for the economy.

Single-family building permits in Colorado Springs totaled 124 in September, a 53.1% increase over the same month last year.

It was the third year-over-year gain in permits during the past four months.

Looks like we're on track for a modest recovery this year.

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

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

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

LATEST SALES AND LISTING STATISTICS

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

JOKE OF THE WEEK

Joke #1

Bronco’s Coach Fox has a new plan for insuring a victory every Sunday.

He will let Tim Tebow take a nap before every game and then, right before the game begins, he will wake Tim up and whisper in his ear, “Tim, wake up. There’s only five minutes left to play before the game ends.”

Joke #2

We think we used this joke before, but it is still appropriate

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.
 
If you think no one cares you're alive, just miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they can’t pay.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

This country is great. It's the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage and call yourself a homeowner.

The trouble with owning a home is that no matter where you sit, you're looking at something you should be doing.

October 17, 2011

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

Because there are a lot of interesting developments in the real estate market, we are calling this issue,

“BITS AND PIECES”

THE relocation MARKET ….IS THAT PROMOTION REALLY WORTH IT??

At the recent Denver meeting of Worldwide ERC, several interesting aspects of relocating employees were explored. The decline in home prices which resulted in many employees being “underwater” with their mortgages has forced companies to revise their policies regarding employee transfers:

• Unless you are a top-level manager, your company may not buy out your present mortgage. Instead, they may give you a rental allowance in your new city, encourage you to rent out your home in the city you are leaving and subsidize the rental differential (if your rental income does not pay for your mortgage payments) for some specified period of time. There can be tax implications for you, should this happen.
• If you end up renting out your present home, because of relocation, you become a landlord and will probably have to hire a management company to handle your property. Obviously, the relocation process is a much more complicated process than it was when employers could simply buy out your mortgage.

Does this affect employers’ relocation policies? You bet. In fact 65% of companies now offer some form of pre-decision support to their employees who must move and 65% of employees who are offered a job that requires a transfer don’t accept the offer because of the housing issue.

Bottom line - Better check all of this out, before you take that promotion!!! If you are an employer who is trying to work out the best possible solutions to your relocation policies, or, if you are an employee who is facing relocation, we would be happy to share our expertise with you.

IS NOW A GOOD TIME TO BUY? GUESS WHAT MY ANSWER IS.

Many of our readers kid us about the fact that we constantly say, “Now is the time to buy”. But seriously, folks, it’s true. Look at what experts are saying:

• The Wall Street Journal (Saturday, Oct. 15, 2011) says, “It’s Time to Buy That House”. The article points out that it’s an excellent time to buy a house to live in for the long term, or for investment income (but not for a quick flip) because of two factors:

The nation’s ratio of house prices to yearly rents is nearly restored to it pre-bubble average and

When mortgage rates are taken into consideration, houses are the most affordable they have been in decades

The article goes on to point out that, “if you have good credit, a job and a downpayment, you can get a mortgage. There’s more paperwork and scrutiny than five years ago, but things are pretty much like they were in the ‘80s and ‘90s.

“Houses aren’t the magic wealth creators they were made out to be during the bubble, but when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump”.

• Bloomberg Businessweek (Oct. 17 – Oct. 23, 2011) states that “Epic Home Deals Await the Creditworthy”.

“Bargains abound, and rates are at record lows – for those who qualify”

“Buyers “won’t gain anything by playing the waiting game”

The Bloomberg article points out that the current market features lower prices, but tomorrow’s market will feature higher rates. For example, the house that lists for $300,000 today, with a 4% mortgage, will require a $60,000 downpayment, and monthly payments of $1,145, for a 30 year total of $472,200.

That same house in 2012 will probably list for $289,000, with a 4.5% mortgage and will require a $57,800 downpayment and monthly payments of $1,171, for a 30 year total of $479,360.

So, it’s not just us that’s saying it, folks. NOW really is a great time to buy.

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

WHAT DID THE SCEF PREDICT FOR COLORADO SPRINGS?

As we have mentioned in our previous enewsletters, last week at the Antlers-Hilton, the Southern Colorado Economic Forum presented their analysis of what will happen in our area in 2012. There were several great presentations, but a few speakers merit some special attention.

Jim Paulsen, chief investment strategist for Wells Capital Management showed several charts and graphs which tracked the recoveries from the recessions of the early 1990s and 2001 and our present recovery. Surprisingly, every aspect of the economy that was charted showed almost identical recovery lines and timeframes for all three recoveries. The only major segment of the economy that is not on the typical recovery track this time is housing. (Tell me about it).

Fred Crowley and Tom Zwirlein of the forum made presentations indicating that the nation and the world should expect another, smaller recession in 2012, but the impact on our local economy should be cushioned by the return to Fort Carson of between 7000 and 8000 troops now deployed in the two wars in the middle east. Spending by those troops should likely create another 3000 to 6000 local jobs

One startling statement made at the forum was that 10% of total defense expenditures within the US are made in the Colorado Springs area. No wonder our economy looks so much better than many other US cities.

The bottom line is that Colorado Springs is on track for recovery, and 2012 should see improvement in every economic area, but probably not more than 4%.

SO, HOW’S COLORADO SPRINGS LOOKING TO THE REST OF THE COUNTRY?

Colorado Springs has been rated:

• 9th for recovery from the recession by the Brookings Institute because of a combination of a well-educated workforce and industries that have not been hit as hard in the recession.(09/11)
• 11th Best Drivers by Allstate Report compared to America’s 200 largest cities (09/11)
• 4th Best Value City by Kiplinger’s Personal Finance for low living cost, strong economies and great amenities(07/11)
• 15th Best City for Families according to Parenting.com for quality of schools, affordable homes, low crime rates, jobs and parkland (07/11)
• 6th best in getting the “Bang for your Buck” metropolitan areas in America by U.S. News. Results are from the Council for Community Economic Research which looked at prices on a variety of basic goods and services, groceries, housing, utilities, healthcare, transportation and common expenses like movie tickets and newspapers (06/11)
• Garden of the Gods ranked 2nd Great Public Space by American Planning Association.(10/11)

In addition, Colorado was rated

• 3rd in the US by TechAmerica Foundation for concentration of high-tech workers, wages, trends in high-tech employment and other key economic factors (10/11)
• 5th Best State for Business by CNBC, which looked at cost of doing business, workforce, quality of life, transportation and infrastructure, economy, education, technology and innovation, business friendliness, access to capital and cost of living.(06/11)

And Tim Tebow will start as Quarterback for the Denver Broncos this Sunday. Who could ask for anything more?

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.
Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

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

LATEST SALES AND LISTING STATISTICS

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

JOKE OF THE WEEK

In surfing through several “Joke” sites, we came across a list of “Dumb Colorado Laws”. We are reprinting them here, together with our reactions to them. (We were going to reprint the “Dumb Federal Laws”, but had to abandon that idea when the list grew to 247 pages).

Dumb Colorado Laws
It is illegal to ride a horse while under the influence. (Well, there goes half of my vacation).
Tags may not be ripped off of pillows and mattresses. (Apparently, using a flamethrower is legal.)

Colorado Springs
It is permissable to wear a holstered six-gun within city limits, except on Sunday, Election Day, or holidays. (Great !!!! Just when you need them the most)

Cripple Creek
It is illegal to bring your horse or pack mule above the ground floor of any building. (Especially if they are “under the influence”).

Denver
It is unlawful to lend your vacuum cleaner to your next-door neighbor. (Again, does this apply to flamethrowers as well?)

It is illegal to mistreat rats in Denver, Colorado. (Fill in your own comments on this one)

You may not drive a black car on Sundays. (This makes arranging funerals a little tricky)

Durango
It is illegal to go out in public dressed in clothes "unbecoming" on one's sex. (We’ll pass on this one, too)

Logan County
It is illegal for a man to kiss a woman while she is asleep. (Well, there goes the other half of my vacation.)

Pueblo
It is illegal to let a dandelion grow within the city limits. (If it weren’t for dandelions, my house wouldn’t have any landscaping at all).
 
Sterling
Cats may not run loose without having been fitted with a taillight. (Instead of an office party this year, we are all going to Sterling to watch the fitting process. Be sure to bring plenty of Band-Aids and ear-plugs.)

October 10, 2011

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

WHAT’S THE LATEST ON OUR LOCAL real estate MARKET ?

The Gazette reports (Oct. 6, 2011) that local home sales totaled 672 last month, an 11.4% increase over September 2010. This was the third straight month of sales increases.

So, sales are up …That’s good.

What about mortgage rates? Well, during the past year, mortgage rates have dropped approximately 1% (From 4.75% in October of 2010 to 3.75% in October of 2011). This amounts to a reduction of about 20% in the 30 year mortgage interest rate.

So, mortgage rates are lower …..That’s really good, too.

What about the inventory of available homes for sale. Well, our present inventory (4,196) is down 24.5% from September of 2010. This is the lowest number of homes for sale since January, 2010 and is a good indicator that our excess inventory is being cleared out.

On the negative side, the average sales price of local homes has dropped about 5.2% (from $230,419 in September of 2010 to $218,526 in September of 2011). This represents an approximate decline in price of 5.2%. However, indications are that prices have finally bottomed out. In fact, Lawrence Yun, the chief economist of the NAR, is now predicting that, “Despite major hurdles in the housing market, there are signs that sales and prices have reached their bottom”.(Realtor Magazine, October, 2011

So, home prices have fallen …and that’s not so good …but it looks like they may have hit bottom.

OK, what do all these numbers mean to Buyers and Sellers?

Well, the bottom line for Buyers is that the cost of acquiring and owning a home is lower today than it has been in recent history ….. but that could soon change. As our inventory shrinks and as prices seem to be bottoming out, it looks like our “Buyers Market” could be shrinking. ..Better buy now, or miss out on the best deals we have ever seen.

For Sellers, however, the outlook is improving. Increased sales, lower inventories and lower mortgage rates should make it easier for you to sell your home in the coming months.

Call us at 598-3200, or, 800 677-MOVE (6683) to discuss our local market and how current conditions might affect your decision to buy, sell or invest.

And to review all of the latest Sales and Listing statistics for the Pikes Peak area, CLICK HERE.

HOW IS HOMEBUILDING HOLDING UP ?

Locally, Home construction jumped in September by 53.1%, over the same month last year (The Gazette, October 4, 2011).

Also, single-family building permits totaled 124 in September. This figure represents the third increase in the last four months.

This upturn in homebuilding is likely one reaction to the decline in foreclosures. Through the first three quarters of the year, foreclosure filings totaled 2,615, down 26.9% from the same period last year. The area is now on a pace to close the year with about 3,800 foreclosure filings, which would be the fewest since 2007.

The increase in building permits, coupled with the slowdown in foreclosures, are two more indications that our local real estate downturn is coming to an end.

TRANSFORMING THE FUTURE ---WORLDWIDE ERC GLOBAL WORKFORCE SYMPOSIUM

This week, we will be attending the annual ERC Symposium in Denver. The presentations include such interesting topics as: “Help! My mortgage is underwater and my company wants me to move”, “Distressed properties: Challenges, Opportunities and Solutions in Mobility”, and “Changes in the U.S. Mortgage Industry”.

Every time we attend one of these Symposiums, we have the opportunity to hear from the experts and from our peers in the relocation industry. It’s another opportunity to learn how to help our clients with their relocation challenges.

If you are facing any issues related to relocation, please give us a call. We will be happy to hear from you and offer our assistance.

FACING THE LOSS OF YOUR HOME? WHICH IS BETTER, SHORT SALE OR FORECLOSURE?

Unfortunately, because of a loss of income or some other change in circumstances, many 
Homeowners find themselves in a situation where they can no longer afford to make their house payments. When this happens, they face a choice of either trying to “short sale” their home (i.e. work out an agreement with the lender who holds the mortgage to accept a buyer’s offer for less than the mortgage balance), or, letting the lender foreclose on the property.

Which of these options is better for the homeowner? Our experience tells us that a short sale is always the better option, for a number of reasons:

• The homeowner’s credit report after a short sale shows that, “Mortgage debt was settled for less than full” and the balance on the mortgage is $0. This opens the door to financial recovery.
• The homeowner’s credit report after a foreclosure indicates, “Foreclosure”, together with an amount that was delinquent. E.g. $150,000. This deficiency balance will create a much larger problem for the homeowner to overcome when he applies for credit in the future.

The short sale also eliminates such insults to the family’s dignity as a Sheriff’s order, or some other type of legal action.

If you face this type of problem, please call us at for advice Call us at 598-3200, or, 800 677-MOVE (6683) to discuss your options.

MAYOR STEVE BACH TO LEAD ANNUAL CHAMBER TRIP TO D.C.

This week, Mayor Steve Bach will lead the Colorado Springs Chamber of Commerce’s annual trip to Washington DC to meet with key lawmakers and public policymakers to discuss issues of importance to the Pikes Peak region. The mayor, along with about 70 local business and civic leaders will meet with the economic development director of the National League of Cities to talk about tools for emerging businesses, small businesses and primary employers, and will also meet with Douglas Holtz-Eakin, president of the American Action Forum. Mr. Holtz-Eakin is also the former chief economist for the President’s Council of Economic Advisors and a former Congressional Budget Office official.

Other scheduled events include meetings with Colorado Senators Bennet and Udall, Rep. Eric Cantor, Rep John Boehner, Rep. Paul Ryan, the chair of the House budget committee, the Department of Defense and U.S. Chamber of Commerce officials.

This year, for the first time, the trip will be lead by our elected Mayor, who has the authority to make budgetary decisions, so, the impact of the trip will be more measurable and productive in developing more business for Colorado Springs.

The primary goal of this annual trip is to stimulate jobs in our region …..and jobs will determine how quickly we are able to put the recession behind us.

We will report about the results of these important, business-building meetings, in future issues.

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

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

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

JOKE OF THE WEEK

I really don’t know why this joke struck me as being funny.

An elderly couple had been experiencing declining memories, so they decided to take a power memory class where one is taught to remember things by association.

A few days after the class, the old man was outside talking with his neighbor about how much the class helped him.

"What was the name of the Instructor?" asked the neighbor.

"Oh, ummmm, let's see," the old man pondered. "You know that flower, you know, the one that smells really nice but has those prickly thorns, what's that flower's name?"

"A rose?" asked the neighbor.

"Yes, that's it," replied the old man. He then turned toward his house and shouted, "Hey, Rose, what's the name of the Instructor we took the memory class from?"