Real Estate Information Archive

March 24, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

RESIDENTIAL real estate SALES AND PRICES CONTINUE THEIR STATUS QUO…

Good news for many, but not so good for others. 

As you will see in the following story, the average American homeowner gained more than $55,000 in equity over 2021.  While that is a mind-boggling figure for those of us who have been in the business for many, many years and great news for current homeowners, it’s concerning for first-time buyers and those who want to sell and trade up.

I’ve been writing about the low number of existing homes for sale over the last couple of years and not much has changed.  It’s still Econ 101—Supply and Demand.  When there are fewer homes for sale, the “Seller’s Market” means higher list prices with bidding wars and sales way over list price.  That in turn helps raise the equity in all homes since scarcity of anything means it will cost more to buy.

A good example is a home I sold this past week.  It was listed at $479,000 and went on MLS Friday morning.  After the first showing we had an excellent offer and by the end of the day, there were more.  More than half of the offers had escalation clauses which meant the buyer was willing to go $1000 or more over the highest bid up to a set amount, which in one case was $550,000!

Yes…you read that right...one of the offers was up to $71,000 over the list price of the home!  

That’s what I mean about crazy times in the Residential real estate market. With interest rates on the rise, folks who have been taking a wait and see attitude are now jumping in before rates and home prices get any higher.  That’s making for an even more competitive market, and buyers are having to come up with inventive ways to get the seller to even consider their offer.  I recently read in The Wall Street Journal about how home buyers are getting very creative in their offers.  One example referred to an offer made by a potential buyer to the seller for a 50% discount for a year at his Washington, D.C. restaurant.  Yes, creative incentives are the norm these days and the more creative the better.

With rental rates at an all-time high, home ownership is on the mind of many renters.  However, first-time buyers are having a tough time qualifying for these higher priced homes.  I’ve had several parents who have used the equity in their present home to help their children with down payments on first homes.

It’s also a great time to buy an investment property if that’s something you have considered.  It’s not for everyone, but if it’s something you’ve considered, talk to your tax and investment advisors and then give me a call.

Today’s market makes it more important than ever to work with a seasoned, knowledgeable real estate broker like me.  I’ve worked in the local Residential Real Estate arena for almost 50 years and have seen just about every cycle imaginable.  I know how to write an offer that gets attention and coupled with my expertise in negotiation, I can make the whole process smoother.  Another important factor is my relationship with other brokers, since most that have dealt with me in the past know when I present an offer it’s very likely to close. 

And for my sellers, I provide the ability to review offers and point out the pros and cons of each.  This could mean taking a little less but knowing that it’s an offer that will close.  

After all, offers are only offers until they close.  So, turning away good offers for one that might offer a little more cash could hurt in the long run if it’s not a viable offer that can make it to the closing table.

For those of you who have waited, wait no longer.  NOW is the time to make your move.  While there are not a lot of existing homes from which to choose, we can usually find one that can work for you.  New home construction is also an option and that’s an area where I can assist you as well, for no additional cost to you.  

But don’t delay.  If you’ve even considered a move, either to sell and trade up or move to a new neighborhood, the best move you can make now is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s figure out how we can make your Residential real estate dreams come true.

 

THE AVERAGE AMERICAN HOMEOWNER GAINED MORE THAN $55K IN EQUITY LAST YEAR

KeepingCurrentMatters, 3.21.22

As I just mentioned, home values are on the rise due to low supply and high demand.  Bidding wars are driving up prices and will continue to do so until there are more existing homes for sale.

According to Dr. Frank Nothaft, chief economist at CoreLogic, “Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest in its 45-year history, generating a big increase in home equity wealth”.

In the latest Home Equity Insights from Corelogic, it showed that the average homeowner’s equity has grown by $55,300 over the last 12 months.  As I’ve mentioned before, our local average price increases have been considerably over the U.S. average for some time now.

Below is a graphic showing what’s happening across the United States.  It measures gains year-over-year for the 4^thQuarter 2021.

 

What does this mean to you?  Well, if you are considering selling to trade up or move elsewhere, the equity in your present home will likely mean a larger down payment on your next home.  If you’ve worried about rising home prices, your current equity can likely go a long way to helping even things out.

If you want to know how much equity you have in your present home, give me a call and I can help you with that.  I believe you might be surprised what you can easily afford and keep your monthly output close to what you are currently paying.

 

WHAT YOU NEED TO KNOW IF YOU’RE THINKING ABOUT BUILDING A HOME

KeepingCurrentMatters, 3.23.22

With options for existing homes nothing like they once were, you might be considering new construction as an option. Homebuilders today are doing all they can to keep up with the demand, but they are currently facing obstacles outside of their control.

Supply chain issues are a big hurdle.  According to a recent article from HousingWire, “nearly everything needed in the homebuilding process is facing some sort of delay and subsequent price increase.”

And it’s not just lumber. Roofing materials, windows, garage doors, siding, and gypsum (which is used in drywall) are also affected.

When supplies are low, charges inevitably go up and a lack of availability is causing delays, meaning builders are struggling to stay on schedule.

Another challenge is the skilled labor shortage.  It’s nothing new since it’s been an issue for more than a decade now, but the good news is that a February jobs report shows employment in the construction industry is showing gains.  

How does this impact you?

When you weigh your options in trying to decide between buying an existing home or building a new one, factor the potential delay in the new home construction into your decision.  It doesn’t mean you shouldn’t consider new home construction, but it does mean you should consider your timeline and if you are willing to wait while your home is being constructed.

And once again, if new construction is in your plans, I’m your guy.  I can help with site and elevation selection as well as help in getting you the best mortgage to fit your needs.  This all comes as part of my special brand of customer service and at no additional cost to you.  So, if new home construction is in your plans, I’m only a phone call away.

 

WHAT ARE THE BENEFITS OF BUYING AND OWNING A RENTAL PROPERTY?

American Family Insurance, 3.8.22

Investment properties can be an appealing source of income, even to those who have never considered it before.  The benefits of investing in rental property can help you advance towards your long-term financial goals.

Buying an investment property is not a lot different from purchasing a single-family home for private use.  The process is very much the same, from making an offer to closing the deal.  real estate professionals such as me, work with investor buyers just as we do buyers for homes of their own.

Selecting the property is somewhat the same, as you will want to look at the property through a similar lens—seeking the perfect blend of affordability, financial opportunity, and potential resale value.

Fixer-uppers have great potential here in that rental properties that require a bit of an up-front investment are worth your consideration.  

As I’ve mentioned in the past, I’ve also had investors purchase newly constructed homes with the idea that there would be little, if any, required maintenance for many years and they could attract long term renters at a better monthly rental fee.

There are a number of benefits of investing in rental properties which include:

• Generating a monthly passive income stream
• Making the right purchase can increase your resale price
• Rental unit furniture, appliances and other items may qualify for a tax deduction
• Write off of your landlord insurance
• Through 2025, there is a special income tax deduction that affords business owners a deduction up to 20% of net rental income or 2.5 percent of the purchase price of the property and/or other expenses likes salaries for rental property employees.  Please check with your tax attorney or CPA for details.
• Renters pay down your principal

 

Now, the potential problems with owning a rental property:

• Troublesome tenants
• Lack of liquidity
• Maintenance Costs
• Insuring your investment

 

There are lots of things to take into account when considering becoming a landlord.  As I’ve said time and again, this is something you need to discuss with your tax and investment advisors.

The bottom line is that over the long haul, the appreciation of single-family homes has been greater than the growth of public stocks on the NYSE.  This is certainly something worth considering in your long-term financial goals.

I’ve been a landlord for many, many years and would be happy to share the upside as well as the downside with you.  Just give me a call and we can discuss.

 

PRICING YOUR HOME RIGHT IS CRITICAL

KeepingCurrentMatters,

The price you set for your house sends a message to potential buyers.  Price it too low and it might raise questions about the condition of the home.  Price it too high and you might deter potential buyers.

Even in a Seller’s Market, it’s crucial to send the right message to potential buyers.  You need top aim directly for the center…not too low and not too high:

Don’t try to figure this out by yourself.  When you’re ready to list your home, give me a call.  I can help you determine the correct listing price, based on actual facts and comparables.  That way you will be able to get the very best price possible for your present home.

March 9, 2022

HARRY’S BI-WEEKLY UPDATE

    A Current Look at the Colorado Springs Residential real estate Market

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

 

ANOTHER MONTH AND MORE OF THE SAME…

What can I say?  The Residential real estate Market in Colorado Springs is hot, hot, hot.  And it would even be hotter if there were more existing homes for sale.  

Our average sales price for single family/patio homes was $514,757 in February!  That number is even astonishing to me, having worked in this arena for 50 years next month.  I can still remember average home prices in the $25,000 range.  Of course, I can also recall interest rates of 16% so while home prices have risen, interest rates have declined sharply, which has helped keep monthly payments more affordable than you might expect.

That’s why I tell my clients to look at their total monthly output rather than focusing on the higher prices of today.  The still historically low rates have made it easier on the pocketbook, but rates are beginning to rise and will do so slowly over the next year.  I don’t see them getting to 16% anytime soon, but they will be higher by year-end according to most economists.

With the traditional spring buying season just about here, it’s definitely time to consider your options if a move is even remotely in your future.  Homes sell faster than ever before and multiple offers and ones over list price have become the norm in recent times.  

Just this past week, a broker in our office listed a home for $425,000 and it had 24 offers! The accepted offer was far above list price.  Hard to imagine, but there are a lot of folks looking for homes and very few existing ones to choose from.  It’s most definitely still a Seller’s market and will continue that way until more homes come up for sale.  As you will see below, at the end of February there were only 487 active listings of single-family/townhomes in the Pikes Peak Area MLS and 63 condo/townhomes.  With so few homes available you can see why competition is so fierce.

There are a lot of things to consider if you are wanting to make a move.  To begin with, you will need to decide exactly what your needs, wants and budget considerations are upfront because when you find a home there is no time to delay in making your best offer.  And when I say best offer, I mean that.  Today’s market finds very creative offers that buyers are hoping will set them apart from the rest.  There is essentially no room for renegotiation and contingencies on the buying side.  

However, with U.S. home prices predicted to rise another 10% this year (and Colorado Springs area homes will likely rise conservatively 10 to 12%), there’s no time like the present to start your search.

I realize this sounds a bit crazy, but it’s today’s reality.  It is more important than ever to have a seasoned professional, well respected real estate broker such as me on your side because experience and negotiation expertise such as mine is more crucial than ever before.  Sellers are wanting their brokers to work with brokers on the buying side who they know can bring an offer to closing.  

Lately with the stock market in a slump, I’ve seen an uptick in those seeking homes for investment purposes.  Over the long haul, real estate has surpassed stock and bond returns and today even more so.  That, unfortunately, is adding to the housing shortage and hurting first-time buyers even more.

However, it’s not all dismal news.  I truly believe that, while it may take considerably longer than in the past, there is most definitely a home for everyone.  It may not be exactly what you want, but especially for first-time buyers, homeownership is a far better option than renting if possible.  Homes can be updated and renovated, and when the time is right, can likely be sold for a profit or used as a rental property when it’s time to move on or trade up.

There’s a lot to discuss if a move is a consideration and I’ve got the experience to guide you when you’re ready.  

So, if Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

FEBRUARY 2022

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

Here are some highlights from the February 2022 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a very low 10.  For condo/townhomes it was 11.  

Also in El Paso County, the sales price/list price for single family/patio homes was 103.0% and for condo/townhomes it was 103.1%. 

In Teller County, the average days on the market for single family/patio homes was 20 and the sales/list price was 101.6%. 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing February 2022 to February 2021 for All Homes in PPAR:                     

                        Single Family/Patio Homes:

·       New Listings were 1,186, Down 12.1%

·       Number of Sales were 1,015, Up 3.5%

·       Average Sales Price was $514,757, Up 13.2%

·       Median Sales Price was $465,000, Up 15.4%

·       Total Active Listings are 487, Up 5.4%

·       Months Supply is 0.5, Up 1.6%

 

Condo/Townhomes:

·       New Listings were 199, Up 3.1% 

·       Number of Sales were 160, no change from last February

·       Average Sales Price was $353,683, Up 17.6%

·       Median Sales Price was $362,500, Up 22.9%

·       Total Active Listings are 63, Down 11.3%

·       Months Supply is 0.4, no change from last February

 

Now a look at more statistics…

 

FEBRUARY 2022 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 1.1%

 

• Median Sales Price for All Properties was Up 16.0%

 

• Active Listings on All Properties were Down 20.2%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

RENTAL PROPERTIES IN COLORADO SPRINGS SEE SIGNIFICANT SPIKE IN 2021

Colorado Springs Business Journal, 2.25-3.3.22

Rental rates in Colorado Springs have continued their upward climb according to rental listing site Dwellsy.    The Colorado Springs Metropolitan Statistical Area (MSA) shows a very significant 42.6 percent jump in median monthly rent prices from January to December 2021.

One of the driving factors is the demand for single or multi-family rental properties.  Median monthly rent prices for single-family properties rose 42 percent from January to December, reaching $2,300 per month, while rent prices for multi-family units alone went up by 21 percent to $1,325 per month, according to the Dwellsy analysts who separated the two categories.

RentPath reported an average rental listing price of $1,150 per month for one-bedroom units and $1,327 per month for two-bedroom units in December.

This illustrates the demand for and availability of homes for rent vs. apartments last year.  With more folks working from home, there is a greater demand for space, which often translates to a single-family rental.

The chart below illustrates the rental increases in Colorado Springs and other Colorado cities in 2021 vs the U.S. market as a whole:

 

 

As I have been telling you, investment properties have become a hot commodity as they represent not only extra monthly income, but home appreciation is significantly outperforming stocks and bonds at present and has done so consistently over the years.  

This is also just another reason contributing the housing shortage as properties bought for investment take homes away from those who are looking for homes to buy for themselves and their families.

If you are renting or know someone who is, now is the best time to start looking toward homeownership if possible.  Not only are you essentially investing in yourself rather than contributing to someone else’s income, you are building equity in your own home.

There are lots of possible ways to get into homeownership and/or investment property purchases.  If either of these are something you are now considering, please give me a call and let’s see how we can make it work for you.

 

ERA SHIELDS “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW

ERAShields, 2.28.22

As always, I am pleased to provide you with all the most current local information.  This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.  

Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety.  

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 2.25.22.22

Here is the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.

If you have any questions, please give me a call.

And for those of you who like to plan ahead, the always informative UCCS Economic Forum Event this year will be held at the ENT Center for the Arts on Thursday, September 1, 2022, from 1:30-4:30, with a networking and happy hour to follow.  Full agenda and registration will be available in June.

 

 

FEATURED LISTING:

YOURS, HERE?  IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.

February 22, 2022   2.22.22 (in case you missed it!)

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

QUESTIONS ASKED AND ANSWERED…

Today’s unprecedented Residential real estate market has brought with it many new questions.  In most cases they can be given old answers.  

My clients have been wondering how the home prices and mortgage rates are going to affect them.  They also wonder if this is a good time to sell and move up or purchase for investment purposes.  

As I’ve said time and again, the only right time to buy and sell is when it’s right for you.  Period.  Prices change all the time, as do mortgage rates.  It’s important to realize that when it’s the right time for you, we can find a way to work with your needs, wants and budget.

Just because median home prices are continuing to rise and mortgage rates are at their highest level in three years, it doesn’t mean you have to stay where you are if that’s not your desire.  Your current home is likely worth a lot more then you might imagine, and that equity will go a long way to keeping your monthly output lower than you might guess. It’s simply a matter of sitting down with me and figuring it all out.  

If you or a family member are currently renting, you already know that rents are at an all time high.  Most often these days it’s a lot less expensive to buy than to rent if possible, and the result will be equity building for you rather than for your landlord.  I tell folks they need to start somewhere and then move on from there.

As you might imagine, investment properties are another question.  And the answer again is, if it’s right for you, then it can be a great idea.  However, there are a number of considerations such as whether you want to be a landlord or want to pay a property manager to handle things for you.  It’s also important to check with your tax and investment counselors to make certain that purchasing an investment property fits into your long-term financial planning.  

If the answer is yes, then I’m most definitely your guy, as I own investment properties and have for most of my almost 50 years in the local Residential real estate arena.  I can give you the pros and cons from my personal experience and that type of information is invaluable.

One of the most asked questions these days is, “Are we facing a housing bubble?”.  And the answer to that is no.  Every housing economist has said that this current market is very different than it was during the housing crash 15 years ago.  

To begin with, in 2010 the U.S. Congress enacted the “Dodd-Frank Wall Street Reform and Consumer Protection Act”,a United States federal law that overhauled financial regulation in the aftermath of the Great Recession.  It made changes affecting all federal financial regulatory agencies and almost every part of the nation’s financial services industry.  

This Act created agencies to ensure that consumers were protected against abuses related to credit cards, mortgages, and other financial products.  The types of mortgage loans that helped contribute to the housing crash 15 years ago are no longer around and the definition of credit worthiness has changed substantially as well.

I have excerpted some thoughts and graphs from an article I read last week in Keeping Current Matters to illustrate this.  The article was written to address the fact that many recently surveyed consumers do believe that there’s a housing bubble beginning to form.  It’s a bit lengthy but a great answer to the question I’m so often asked these days. 

Here are four key reasons that explain why today is nothing like the last time:

 

Houses Are Not Unaffordable Like They Were During the Housing Boom.

There are three components to the affordability formula:  the price of the home, wages earned by the purchaser, and the mortgage rate available at the time.  Conventional lending standards say a purchaser should not spend more than 28% of their gross income on their mortgage payment.

Fifteen years ago, prices were high, wages were low and mortgage rates were over 6%.  Today, prices are still high.  Wages, however, have increased and the mortgage rate, even after the recent spike, is still well below 6%.  That means the average purchaser today pays less of their monthly income toward their mortgage payment than they did back then.  

According to the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta addressed that exact point:  

“The average wage earner can still afford the typical home across the U.S., but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward.”

Affordability is not as strong as it was last year, but it’s much better than it was during the boom.  Here’s a chart showing that difference:

 

 

Mortgage Standards Were Much More Relaxed During the Boom.

During the housing bubble it was much easier to get a mortgage than it is today.  For example, let’s review the number of mortgages granted to purchasers with credit scores under 620.  According to credit.org, a credit score between 550-619 is considered poor.  In defining scores below 620 they explain:

“Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk.”

Buyers can still qualify for a mortgage with a credit score that low, but they’re considered riskier borrowers.  Here’s a graph showing the mortgage volume issued to purchasers with a less than 620 credit score during the housing boom and the subsequent volume in the 14 years since:

 

Mortgage standards are nothing like they were last time.  Purchasers that acquired a mortgage over the last ten years are much more qualified.  (Thank you, Congress, for the Dodd Frank Act)

Here’s a look at what that means going forward.

 

The Foreclosure Situation Is Different Now.

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst.  The Federal Reserve issues a report showing the number of consumers with a new foreclosure notice.  Here are the numbers during the crash compared to today:

 

There’s no doubt the 2020 and 2021 numbers are impacted by the forbearance program created to help homeowners facing uncertainty during the pandemic.  However, there are fewer than 800,000 homeowners left in the program today, and most will be able to work out a repayment plan with their lenders.

Rick Sharga, executive vice president of RealtyTrac, explains: 

“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging.  It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect.”

Why so few foreclosures today?  Well, quite simply, homeowners are equity rich, not tapped out.

In the run-up to the housing bubble some homeowners were using their homes as a personal ATM machine.  Many withdrew their equity as it built up.  When home values began to fall, some found themselves in a negative equity situation.  Some of those households decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales) which sold at huge discounts, thus lowering the value of other homes in the area.

Today’s homeowners have learned their lessons.  Prices have risen considerably in the last few years, leading to over 40% of homes in the country having more than 50% equity.  But owners have not been tapping into it like last time, as evidenced by the fact that national tappable equity has increased to a record $9.9 trillion.  With the average home equity now at $300,000, what happened last time won’t happen today.

The latest Home Equity Insights report from Corelogic explains:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

There will be nowhere near the same number of foreclosures as we saw during the crash. 

What does this mean for the housing market?

 

We Don’t Have a Surplus of Homes on the Market—We Have a Shortage

The supply of inventory needed to sustain a normal real estate market is approximately six months.  Anything more is an overabundance and will cause prices to depreciate.  Anything less is a shortage and will lead to continued price appreciation. 

As you will see in the following graph, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures) and that caused prices to tumble.  Today there is a shortage of inventory, which is causing the acceleration in home values to continue, and most especially here in Colorado Springs.

Inventory is nothing like last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a shortage of homes for sale.

A long answer to an often-asked question, but I think after reading this you might understand better why I say it’s always a good time to buy and sell if it’s the right time for YOU.  

Yes, there are not a lot of homes for sale at present, but there’s always a home somewhere for someone, even in new construction, and I can assist in helping make the whole process less of a burden than it has become in this market.  

Consider that U.S. homes sales jumped 6.7% in January despite the record-low inventory, as buyers rushed to purchase homes as the mortgage rates began to rise. The housing market remains extremely competitive and potential first-time buyers are now reluctant to wait as their leases are coming due.  

Folks don’t want to see the affordability factor go away and potential sellers are starting to consider all their options.

If you even considered a move or have a family member, coworker or friend considering the same, please give me a call sooner than later. My almost 50-year experience in the Colorado Springs housing market coupled with my investment banking background and expertise in negotiation gives me a heads up on most.  I can be reached at 719.593.1000 or by email at Harry@HarrySalzman.com. 

I look forward to talking with you soon.

 

COLORADO SPRINGS HOME PRICES CONTINUED TO SOAR IN 2021 AND CONTINUED TO SURPASS MUCH OF THE COUNTRY

The National Association of Realtors, 2.10.22

In the recently published report, 67% of the 183 Metropolitan Statistical Areas (MSAs) surveyed quarterly by the National Association of Realtors (NAR) reached double-digit median home price appreciation in the fourth quarter of 2021.  This is less than the 78% of the third quarter but still a significant figure. 

The median price nationally rose 14.6% quarter-over-quarter to $361,700.

Colorado Springs surpassed that, with the median price of single-family homes jumping 19.2% to $442,700 during the final quarter of the year.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 31^st highest of the cities surveyed.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver and Boulder areas, which makes our city more attractive to potential companies wanting to relocate.

To see all 183 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  

You can also click here to see, in alphabetical order, the change in median sales price of existing single-family homes over the past three years or click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

And if you have any questions, you know where to reach me.

 

real estate IS VOTED “BEST INVESTMENT” EIGHT YEARS IN A ROW

Keeping Current Matters, 2.21.22

In a just released annual Gallup poll, Americans chose real estate as the best long-term investment.  This is nothing new, since it has topped the list for the past eight years, consistently gaining traction as the best long-term investment.

It’s also not the first time you’ve read this in one of my eNewsletters, as I have been saying this myself for way more than eight years.  And, as I mentioned earlier, I put my money where my mouth is, and residential real estate plays a major part in my own investment portfolio.

 

If you’ve even considered buying a home this year for yourself or for investment purposes, this poll should reassure you.  Even when inflation is rising like it is today, Americans agree that as an investment, real estate truly shines.

 

Why Is real estate a Great Investment During Times of High Inflation?

With inflation at its highest level since the1980’s, it is more important than ever to understand the financial benefits of homeownership.  

Rising inflation means that prices are increasing in all areas, including goods, services, housing costs and more.  

However, when you purchase a home, you lock in your monthly principle and interest payments, effectively shielding yourself from increasing housing payments. Property taxes will rise, and you may incur other expenses, but a fixed-rate mortgage allows the biggest portion of monthly housing expenses to remain the same.

For renters, there is no protection against increases in housing costs, especially with rising rental prices.  

 

History Shows During Inflationary Periods, Home Prices Rise as Well

As a homeowner, your house is an asset that typically increases in value over time, even during inflation.  That’s because, as prices rise, the value of your home does as well.  Therefore, buying a home is a great hedge during periods of inflation.

According to Natalie Campisi, Advisor Staff for Forbes, “Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times”.

 

Bottom Line?

Once more, with feeling…if you’ve even thought about buying a home for personal or investment reasons, there’s no time like NOW.  Let’s get together and see how we can help increase your personal assets while better hedging against inflation.

 

ERA SHIELDS “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW

ERAShields, 1.31.22

As always, I am pleased to provide you with the most current local information.  This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.  

Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety.  

 

February 8, 2022

 

HARRY’S BI-WEEKLY UPDATE

          A Current Look at the Colorado Springs Residential real estate Market

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

 

AND SO IT GOES…

As we wave goodbye to January 2022, with it we begin our goodbye to the historically low interest rates of recent times.  While today’s rates are certainly much lower than the 12-15% APRs of the 1980’s, they are inching up and each increase has the possibility of increasing the monthly output for mortgage loans.

The good news is that while home appreciation is still high, it is finally starting to normalize a bit, and should be right around the 12-14% increase I have predicted for 2022.  

Let’s talk for a minute how this can affect you.  For those looking to sell, either to trade up or move to a new neighborhood or another state to be closer to family, the equity in your present home is likely higher than you might think.  This is going to give you a greater down payment, so despite the rising mortgage rates and the higher price you will pay for your next home, it’s possible you can keep your monthly payment close to what you currently pay.

I’ve been getting calls from folks who are worried they have missed out on the recent boom, but I have assured them, and can assure you, that the time to buy or sell a home is when YOU are ready.  Is the present time good for buying and selling?  You bet it is.  But, if it’s not right for YOU, then it’s not a good time.  

If you’ve been thinking of a move, the best thing you can do is meet with a seasoned real estate professional like me to discuss all the issues involved so that when you decide it’s right, then you can pounce.  

Today’s market is unlike any I’ve seen in my almost 50 years in the local Residential real estate arena, and it takes a lot of planning, perseverance, and professional help to guide you in the right direction.  Those “Three P’s”, along with my superb negotiation skills, make all the difference to a successful and hopefully less stressful moving experience.

As I mentioned in the last eNewsletter, Colorado Springs has a record low number of existing homes for sale, thus continuing the Seller’s Market that we’ve been experiencing for quite some time now.  There are a number of reasons for this, among them the new wants and needs made evident from the pandemic and work-from-home status of many.  The low interest rates have given renters an impetus to move to homeownership, and Colorado Springs is seeing new businesses relocating here and with them come employees looking for a place to live.  When you add them up, bingo—not a lot of homes left for sale.

New home construction is ramping up as fast as possible but shortages of materials such as lumber, concrete, aluminum, and more are not only holding up building, but adding to the cost of these homes as well.  

I even have investor clients who have gone the new construction route as it has provided them with the opportunity for longer term renters and less home repairs than that of older homes.  

If new construction is something you have considered, I’m your guy for that as well.  I have l long time working relationships with a number of local builders and I can help you with site and home selection as well as assist you in securing the best mortgage for your individual situation.  Did I mention this comes at no additional cost to you?  It’s certainly an offer you won’t want to pass on if new construction is in your future.

As most of you know, I’ve been a relocation specialist for many, many years and while I have a number of clients who move for career purposes, I’ve recently had some moving to be closer to family or to a warmer climate as they retire.  I have a network of realtors that I’ve known for years who I can refer to you if moving out of state is in your future. That helps take off some pressure when you get ready to make that move.

The gist of this column is…. I know how things can get a bit overwhelming in the current residential real estate market and that’s why you have me.  I’ve seen it all and can help you navigate the current buying and selling wars.  That’s my commitment to each and every client.  Your goals are mine and I take that personally.  It’s one of the reasons I’m still here enjoying the challenge, and why I am so fortunate to find myself working with children and grandchildren of past and present clients.  

If Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

JANUARY 2022

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

Here are some highlights from the January 2022 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 14.  For condo/townhomes it was 17.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.6% and for condo/townhomes it was also 101.1%.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing January 2022 to January 2021 for All Homes in PPAR:                       

                        Single Family/Patio Homes:

·       New Listings were 1,180, Up 6.1%

·       Number of Sales were 1,058 Up 9.0%

·       Average Sales Price was $494,954, Up 14.2%

·       Median Sales Price was $445,000, Up 15.6%

·       Total Active Listings are 549, Up 19.3%

·       Months Supply is 0.5, Up 2.2%

 

Condo/Townhomes:

·       New Listings were 205, Up 28.1% 

·       Number of Sales were 158, Up 1.9%

·       Average Sales Price was $342,524, Up 19.9%

·       Median Sales Price was $345,000, Up 23.5%

·       Total Active Listings are 79, Up 23.4%

·       Months Supply is 0.5, Down 12.1%

 

Now a look at more statistics…

 

JANUARY 2022 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 4.9%

 

• Median Sales Price for All Properties was Up 17.6%

 

• Active Listings on All Properties were Down 12.7%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

CONGRATS TO ME…

As we went to press, I received notification from ERA real estate that I have again qualified for “Circle of Achievement” recognition, a top honor at our national company.  Just another notch in my almost 50-year-old belt of real estate accolades, but I never take any of them for granted. 

I don’t work for the rewards…I work for YOU, but I will admit that it is nice to be recognized from time to time.  

When you see the banner below you will know what it stands for:

 

 

WHY NOW IS A ONCE-IN-A-LIFETIME OPPORTUNITY FOR SELLERS

KeepingCurrentMatters, 1.27.22

If you’ve considered selling your home this year, you truly have a once-in-a-lifetime opportunity.  Whenever you chose to sell anything, you always hope for strong demand coupled with a limited supply to get your maximum leverage when negotiating the sale.

Home sellers are in the position at this very moment and here’s why:

 

Demand Is Very Strong

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021.  This was the largest number of home sales in 15 years. Lawrence Yun, chief economist for NAR explains:

“Sales for the entire year finished strong, reaching the highest annual level since 2006…With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers were intent on avoiding the inevitable rate increases.”

Demand isn’t expected to weaken this year, either.  As a matter of fact, the Mortgage Finance Forecast, published several weeks ago by the Mortgage Bankers Association (MBA) calls for existing-home sales to reach 6.4 million homes this year.

 

Supply Is Very Limited

In the same report from NAR, it reveals that that months’ supply of inventory just hit the lowest number of the century.  It states:

“Total housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million).  Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.”

In reality, inventory normally decreases every December due to seasonal trends.  However, the following graph emphasizes how this past December was lower than any other December going all the way back to 1999.

 

 

Right Now, Sellers Have Maximum Leverage

As I said before, when considering any type of sale, when there’s a strong demand and a limited supply, the seller has the maximum leverage in the negotiation.  

For homeowners who are thinking about selling, there may never be a better time than right now.  With demand this high and inventory this low, you’ll have leverage in all aspects of the sale of your house.

Today’s buyers are aware they need to be flexible negotiators who make very competitive first offers, so here are a few areas that could tip in your favor when your house goes on the market:

• Competitive sales price
• Flexible closing date
• Potential for a leaseback to all allow you more time to find a home
• Minimal offer contingencies

Bottom Line

If you’re even thinking of selling your home, contact me sooner than later and let’s discuss how you can maximize the potential available in today’s market.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 1.31.22

Here is the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.

If you have any questions, please give me a call.

 

January 25, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

LOW INTEREST RATES ARE ON THE RISE AND SO IS HOME APPRECIATION.  THE TIME TO JUMP IN IS NOW…BUT TIME IS NOT ON YOUR SIDE FOR MUCH LONGER.

I rarely begin my eNewsletter on a less than positive note, but I hope this headline got your attention.

I’ve been saying for a while now that while home appreciation is continuing its upward trend, the low mortgage interest rates of yesterday are soon to be history.  And recently, the Federal Reserve has indicated that they intend to raise their rates for banks four times this year to help curb inflation. Mortgage interest rates are sure to follow, and in fact have been rising for the last month.  It’s doubtful we will see the historically low rates again in our lifetime, if ever. 

Today’s rates are still a bargain compared to rates of even five or six years ago, so if you have even considered a buying a home, there’s not any time to waste. Here are some of my thoughts to consider if you are thinking of getting into the market:

 

• As of Sunday, there were 308 home listings for existing homes in Colorado Springs and another 111 in the other areas of El Paso County.   That’s a total of 419 single family detached homes for sale—a less than two-week supply!

 

• Interest rates are slowly rising—the 30-year fixed-rate ones are currently the highest they’ve been in two years--and will continue to rise until inflation is curbed.

 

• Rental rates are higher than ever and will continue to rise with demand.  It’s proven to be cheaper to be a homeowner than a renter if possible and sometimes that means modifying your expectations in order to purchase a home now.  Home appreciation like that we have been experiencing will likely provide the equity you will need when you are ready to upgrade or trade up.

 

• I believe that we will continue to experience home appreciation in Colorado Springs of between 12-14% in 2022 and this presents a great opportunity for investors to consider buying rental properties.  If you’ve looked at the volatility of the stock market in recent days you can understand the prudence of this.  The huge drop this past week, although with a quick recovery of sorts yesterday, illustrates this point.

 

• Costs of new construction materials such as lumber, cement, copper, aluminum, cotton and more continue to rise and with them the price of new homes.  Locking in a home now, if that is the direction you wish to go, is essential.  Some builders are not even quoting exact prices, but the sooner you begin the search the sooner you will at least be on the list for a new home.

 

• Single family/patio homes in Colorado Springs and El Paso County sold for 103.2% of their listing price for all of 2021.  In Teller County that number was 101.3% of list price.  Your present home will likely sell quickly and for more than you might expect.

 

• Colorado Springs is going to continue to be a favored place for companies and individuals when it comes to relocation.  I see no end to this trend and expect it to continue more than ever due to the work-from-home situations that allow folks to work from wherever they choose.  Many are choosing and will continue to choose Colorado Springs.

 

Let’s discuss interest rates.  Yes, they are going up.  However, they are still low and when you consider the appreciation, you will make back the difference faster than any ever.  A home represents one of the biggest investments most families ever make, and today’s home appreciation will likely provide a far better return than day trading or short-term investments.  

A home is a long-term investment which will provide you and your family personal enjoyment.  Or it can be a rental home for investment purposes which will provide not only monthly income but an appreciation considerably better than the stock market.  In fact, a number of my investment buying clients are supplementing their retirement income with the income from their rentals, while that home is gaining appreciation year after year.

Read further in this eNewsletter to see more highlights of what’s happening now and is predicted to happen in Residential real estate as 2022 progresses.

And, if you’re ready or even thinking of being ready, pick up the phone and give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s discuss any and all possibilities for making your Residential real estate dreams come true.

 

AMERICANS CHOOSE real estate AS THE BEST INVESTMENT

Keeping Current Matters, 1.21.22

As I mentioned earlier, more and more Americans are choosing real estate as “The Best Investment”.  This infographic illustrates it well:

 

Some highlights:

• According to a Gallup poll, real estate has been rated the best long-term investment for eight years in a row.

 

• real estate tops the list because you’re not just buying a place to call home—you’re investing in your future.  Real estate is typically considered a stable and secure asset that can grow in value over time.

 

• If you’re ready to invest in your family’s future, give me a call sooner than later and let’s get started!

 

WHAT 2022 MEANS FOR HOMEBUYERS

Associated Press, 1.23.22

(Excerpted from an interview with Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):

 

How do you see the housing market’s trajectory shaping up this year?

 

Mortgage rates will definitely be higher, which means that people who were barely able to qualify last year will not be able to do so this year.  Combine that with some increase in supply. Builders have the profit motive.  Lumber prices and other materials costs are rising, but they’re simply tacking on those additional costs to consumers, who are willing to buy.  Price growth (nationally) will be something around 5% in 2022, which will be a very normal rate of increase.

 

Fair to say homeowners who are selling will still have an edge on buyers nationally?

 

We’re in a housing shortage of roughly 3 or 4 million.  And given that homebuilders can probably at the maximum put up maybe 2 million homes, more likely 1.7 or 1.8 million homes (a year), this housing shortage will persist this year and probably linger on somewhat next year.  Hence, the market in 2022 will still favor sellers.

 

How high do you see mortgage rates going this year?

 

My best guess at the moment is about 3.7%.  It could be a little lower or a little higher, but it’s going to certainly be higher than the 3% people enjoyed last year.

 

To what degree will higher rates dampen home sales?

 

Rising home prices have hindered affordability, but now rising interest rates are another thing that will begin to shave off some of the demand potential from first-time buyers.  My official forecast for home sales this year is they will come down about 2% from last year.

 

Has the pandemic led to any enduring changes to the way Americans buy and sell homes?

 

The pandemic will come to an end.  Hopefully, the sooner the better.  But the work-from-home situation, that development is here to stay.  That will be the key factor driving the housing market preference and demand.

 

What’s the biggest worry you have about the housing market now?

 

The concern is really first-time buyers.  If we don’t increase supply sufficiently, we will have a situation where the country becomes more divided.  Homeowners are feeling very wealthy.  Renters are feeling very frustrated, beginning to see accelerating rents.  So, we need to ensure that housing supply continues to increase.

 

ERA SHIELDS “2021 ANNUAL REVIEW OF COLORADO SPRINGS RESIDENTIAL real estate AND 2022 FORECAST

I want to share with you the “2021 Annual Review and 2022 Forecast” compiled by my company.  

Some interesting facts taken from the report:

 

 “Fun Facts from 2021 (El Paso County):

• Most expensive sale—an amazing home near The Broadmoor sold for $8,000,000
• Largest home sold—The $8,000,000 home was also the largest at 16,594 square feet
• Cheapest home sold—A single-wide in Ramah on a foundation sold for $52,000
• Smallest home sold—In old-town Fountain, a 400 square foot home

 

“Quick Hits from 2021 (El Paso County)

• Number of units sold was an all-time high at 14,803 (up 1%)
• Average sales prices for the year were $487,876 (up 18%)
• Median sales price was $431,250 (up 18%)
• Inventory levels for the year averaged just 2 weeks
• New home permits hit 2862 for Colorado Springs (down 3%)
• 391 homes sold for $1,000,000 or more (just 38 in 2015)
• 73 homes sold for under $200,000 (3,736 in 2015)
• Mortgage rates hit an all-time low of 2.65% in January, and peaked in April at 3.18%

You can click here to read the 12-page report, along with charts, in its entirety.  If you have any questions, please give me a holler.  

 

January 7, 2022

 

HARRY’S BI-WEEKLY UPDATE

         A Current Look at the Colorado Springs Residential real estate Market

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

 

 

HAPPY NEW YEAR…AND WELCOME TO 2022

As we bid adieu to a another unprecedented but better to handle year, here’s wishing you a very Happy, Healthy 2022.  While we are not yet, and maybe will never, return to what we used to consider “normal”, at the very least most of us are learning to navigate in this “new normal” as best we can.

Two years ago, I wrote about my “2020 Vision” and predicted that local home appreciation would remain high, new construction would become a viable choice for many, and interest rates appeared likely to remain low for the foreseeable future.  

All of this has remained true for the last two years…and for many of the reasons I mentioned.  Those included the historically low inventory of existing homes for sale, the influx of new businesses and their relocated employees, and the high rental rates which would drive more folks to homeownership.  And millennials are now aging into their prime home-buying years as well. 

More than 18,100 homes were sold in the Colorado Springs area in 2021—the largest number ever and almost double the 9,146 sold in 2012.  And home prices in the area have more than doubled over the last decade as well.  The year-end median home price in 2012 was $209,700.  In 2021 the year-end median home price was $450,000.  And we have consistently done considerably better than the U.S. housing market in general.

The housing market has been strong thanks to rock-bottom mortgage rates, a limited supply of homes on the market and pent-up demand from consumers locked in last year due to the pandemic. 

In 2021 Americans borrowed more than ever to buy homes.  Lenders issued $1.6 trillion in purchase loans last year according to estimates by the Mortgage Bankers Association.  That’s up slightly from $1.48 trillion in 2020 and above the previous record of $1.51 trillion in 2005.  

The mortgage boom is another reflection of the low interest rates, as well as the desire for bigger homes due to the pandemic.  Also, many folks were able to build up savings during the pandemic and a lot of that went into housing.

However, as the saying goes, “all good things must come to an end”, and while home prices are predicted to keep rising, interest rates will soon be joining them.

I’ve been telling you for some time now that I couldn’t predict “when” interest rates would rise, but that they weren’t going to stay at the historical lows forever.  Well, Wednesday was a wakeup call when the Federal Reserve announced that interest rates would be rising as soon as April of this year.  And within minutes the Dow Jones Index dropped more than 650 points!  While they didn’t mention “mortgage” interest rates, the National Association of Realtors (NAR) has forecasted that mortgage interest rates will also rise.

What does that mean for you?  For most, your home will likely continue to be your largest and fastest growing investment.  That’s great news for homeowners who have low interest rates and are happy with their present living situation.  

For others who have waited for various reasons but still have the desire to sell and trade up or purchase for the first time or for investment purposes, this news might not be so welcome.

As a result of the pandemic, many are still working from home (WFH) and home schooling. Both have changed what folks are looking for in their living situations and has driven a lot of home renovation and ideas of what is not only needed, but wanted, in a new home.  As you might imagine, larger kitchens, home offices, private spaces and outdoor entertainment areas continue to be popular.

And with WFH becoming so prevalent even after companies have started to return to offices, there has been an exodus from the bigger cities toward places with access to “the great outdoors”.  As most of you can attest, Colorado Springs most certainly has that…and so much more.  We have had a number of new companies relocate here this year and there are more to come.

As I mentioned earlier, folks coming here all need housing, either home purchases or rentals, and this is adding to the home shortage we’ve experienced for the last several years.  Those moving from states with very high home prices are coming in and paying cash and participating in bidding wars to get what they want.  This makes it more difficult for locals looking to move, but it’s still possible to find what you want, need, and can afford. 

It just takes more advanced planning and faster decision making. And of course, a professional, seasoned, and knowledgeable real estate agent like me on your side.  It’s easy to see why companies such as Zillow have gotten out of the “selling” aspect of real estate.  In today’s market it’s not for the timid or inexperienced.  

My almost 50 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Historically low interest rates will be going, going, gone and with today’s inflation it’s doubtful we will see those rates again, if ever.  If you’re in the market, or even considering your options, time is no longer on your side if you delay.

If you’ve even considered selling your present home, now is the time.  You’ve probably got more equity than you might imagine and when coupled with the “current” low interest rates—it might just make sense for you to make a move now--and most likely you can ‘trade up”.  It’s the monthly payments that you need to consider, not the price of the new home.  At today’s interest rates it’s possible that you can get “more” on a different home for not much more than you currently pay.  

If you are curious as to what your present home might be worth today, simply call me for an appointment to view your home and provide you with comparables.

A new year brings with it a lot of new hopes and dreams. If Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

DECEMBER 2021

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

Here are some highlights from the December 2021 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 13.  For condo/townhomes it was 16.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.4% and for condo/townhomes it was also 101.4%.  

Since these are year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2021 to 2020.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing December 2021 to December 2020 for All Homes in PPAR:                      

                        Single Family/Patio Homes:

·       New Listings were 995, Up 6.0%

·       Number of Sales were 1,443 Up 4.9%

·       Average Sales Price was $505,852, Up 15.7%

·       Median Sales Price was $450,000, Up 18.4%

·       Total Active Listings are 659, Up 24.3%

·       Months Supply is 0.5, Up 5.0%

 

Condo/Townhomes:

·       New Listings were 140, Down 13.0% 

·       Number of Sales were 219, Down 1.4%

·       Average Sales Price was $351,825, Up 19.2%

·       Median Sales Price was $335,000, Up 15.5%

·       Total Active Listings are 89, Up 30.9%

·       Months Supply is 0.4, Down 22.9%

 

The Cumulative YTD Summary: (comparing Jan-Dec 2021 to Jan-Dec 2020)

                        Single Family/Patio Homes:

• New Listings were 19,654, Up 4.8%
• Sales were 18,159, Up 4.7 %
• Average Sales Price was $491,768, Up 18.4%
• Volume was $8,930,015,112, Up 22.4%

 

Condo/Townhomes:

• New Listings were 2,795, Up 2.8%
• Sales were 2,688, Up 6.8%
• Average Sales Price was $327,364, Up 19.7%
• Volume was $879,954,432, Up 27.9%

 

Now a look at more statistics…

 

DECEMBER 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 3.2%

 

• Median Sales Price for All Properties was Up 18.6%

 

• Active Listings on All Properties were Down 6.8%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

housing market FORECAST FOR 2022

Keeping current matters, 12.17.21, CNN, 12.27.21 

 

Experts are saying:

 

• No more record low mortgage rates.  Lawrence Yun, chief economist for NAR expects the 30-year fixed mortgage rate to increase to 3.7% by the end of next year, but he noted that this will still be lower than the pre-pandemic rate of around 4%.

 

• Inventory will remain tight.  Even as more properties became available as the spring buying season heated up this year, there were also more people looking to buy, creating fierce competition and pushing prices skyward.  While the inventory picture is expected to improve in 2022, it will remain limited and grow only 0.3% this year, according to a Realtor.com forecast.

 

• Prices will keep rising.  Home prices rose nearly everywhere in 2021 and while existing homes were up 13.9% nationally (ours were considerably higher), new construction prices nationally were about 19% higher than a year ago.  That was another record.

A group of 20 top economic and housing experts brought together by NAR projected that median home prices nationally will increase by 5.7% in 2022.  (I feel that Colorado Springs will be double that number.) The NAR survey participants said they expect the housing market and broader economy to normalize this year as the Fed tries to tame inflation.

 

• First-time buyers will continue to face challenges.  The prevalence of all-cash offers, few available homes and skyrocketing prices pushed many first-time buyers out of the market last year.  By the end of November, the share of first-time buyers had fallen to 26% from 32% a year before, the lowest level since NAR began tracking in 2008.

“We are creating a divided society”, said Yun.  “People don’t feel like they are participating in what they consider to be American life through homeownership.  All their work to build up savings can feel less meaningful in the face of rising prices.”

 

So, once more with feeling... if you’ve even thought about a new home, there’s no time to waste.  Time is money, as we all know, and waiting to make a move is most definitely going to hit you in the wallet.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 12.23.21

As always, I'm providing you with the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

Please click here to read the report in its entirety and if you have any questions, please give me a call.

 

December 6, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

JUST LIKE CHESS…BUYING AND SELLING A HOME TODAY REQUIRES SOME STRATEGIC MOVES

While it’s always been important to have a strategy for your individual situation when you want to buy, sell, or purchase for investment, today’s Residential real estate market requires strategic moves that even a master chess player might find interesting.

This is normally a “quiet” time in the housing market with the holiday season already underway.  However, nothing in the past couple of years has been “normal” and with home prices continuing their upward climb, and mortgage rates likely due to increase soon, folks who might have waited in the past are on the move or getting ready to do so.  

There continues to be a shortage of existing homes for sale even though there are more than a year ago.  New home construction is booming, but prices keep escalating due to lumber increases once again, as well as a shortage of materials.  Demand is so high that builders are “taking names” and the fortunate buyers-to -be have no more than half an hour to make a decision in some cases.  

Needless to say, stress levels are high for both buyers and sellers and that is not likely to change any time soon.  

As you will see later in this eNewsletter, Colorado Springs has gone from # 20 to #14 in the top 100 of the Federal Housing Finance Agency’s third quarter report of “Metro House Price” changes.  

That just tells us what we already know—Colorado Springs and its fabulous work/life balance options is no longer our “little” hometown.  We are growing steadily, and the end is nowhere in sight.  Good for the city’s economy, good for all the new and exciting times to come, but not so good for finding a home at a low price point.  And that hits first time buyers even harder than most.

The good news for current homeowners is that your present home is more than likely worth a lot more than you might imagine.  Therefore, your equity will help considerably with the down payment on a new place.  So even though you will be paying more for the next home, at today’s still low interest rates it’s possible that your monthly output will not increase by much.

The bright side in all of this?

Me, of course.  

With my 48+ years in the local Residential real estate arena, coupled with my Investment Banking background, I’ve mastered the “strategic moves” necessary to wade through the current “battleground” per se. 

I’ve experienced more than most and can help make the buying and selling process a bit less painful, if possible.  I used to say I could make it fairly “stressless”, but unfortunately that’s no longer a given.  I continue, however, to do my best to make purchasing what is often your most valuable investment as pleasant an experience as I am able.  

They say the “early bird gets the worm” and those who are starting now rather than waiting for the traditional “spring buying season” will have a head start in making their Residential real estate dreams come true.

To get the ball rolling early, just give me a call and together we can devise the best plan for your individual family situation. 

I can be reached at 719.593.1000 or by email at Harry@HarrySalzman.com  and I look forward to putting my special brand of customer service to work for YOU.

 

NOVEMBER 2021

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

Here are some highlights from the November 2021 PPAR report.  The format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was 11.  For condo/townhomes it was 13.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.8% and for condo/townhomes it was 102.2%.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing November 2021 to November 2020 for All Homes in PPAR:

                        

                       Single Family/Patio Homes:

·       New Listings were 1,201, Up 9.0%

·       Number of Sales were 1,466, Down 1.1%

·       Average Sales Price was $507,507, Up 18.3%

·       Median Sales Price was $450,000, Up 18.4%

·       Total Active Listings are 855, Up 26.7%

·       Months Supply is 0.6, Down 24.7%

 

Condo/Townhomes:

·       New Listings were 198, Up 19.3% 

·       Number of Sales were 229, Down 3.8%

·       Average Sales Price was $336,208, Up 22.1%

·       Median Sales Price was $325,000, Up 23.5%

·       Total Active Listings are 115, Up 49.4%

·       Months Supply is 0.5, Down 13.1%

 

Now a look at more statistics…

 

NOVEMBER 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 9.3%

 

• Median Sales Price for All Properties was Up 17.6%

 

• Active Listings on All Properties were Down 3.4%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update.  I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area in general:

 

COLORADO SPRINGS RANKS EVEN HIGHER IN THE Q3 FHFA HOUSE PRICE INDEX

FHFA, 11.30.21

The recently published FHFA House Price Index for third quarter 2021 lists Colorado Springs as #14 out of the top 100 in house price changes during that quarter.  We moved up from #20 in the Q2 report and I would expect us to keep moving up in the future.   

House prices in all 50 states and the District of Columbia rose between the second and third quarter.  Of the nine census divisions, the Mountain region, home of Colorado Springs, recorded the strongest four-quarter appreciation.  

Here is a copy of the Colorado Springs changes:

If you are interested in seeing the entire list of 100 cities in ranking order, please click here.  And, if you have any questions, you know who to call.

 

LOAN LIMIT INCREASES FOR 2022

The new conforming/jumbo cut-off on mortgage loans is $647,200.  This was a surprise since most lenders expected it to be $625,000, so good news for buyers.

VA loan cutoffs will be at $647,200 as well.

FHA loans in El Paso and Teller counties will be $460,000, while Pueblo will be $420,680.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 11.29.21

As always, I’ve included the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the National and Colorado Springs levels.  

You can click here to read the entire report and if you have any questions, please give me a call.

 

IS THIS A GOOD TIME TO BUY OR SELL A HOUSE?

UBS, 11.2.21, Keeping current matters, 11.18.21

These are questions I’m asked a lot.  My answer is always the same—if you are wanting to move and the numbers can work for you, it’s always a good time to buy and or sell.  In most cases, the decision to purchase a home is one of the most emotional, difficult and financially impactful investments one can make.  

And while I strongly believe each client’s specific needs, wants and budget contribute to the overall answer, it’s still important to consider timing when possible.

The information from several articles I recently read can help answer these questions as well.

 

Is this a good time to buy a house?

Here are five questions that UBS asks clients to consider:

• Is the house being purchased for shelter, a long-term investment, or for a fix and flip?
• What is the anticipated time horizon for living in the house?
• What are the individual’s near-term, medium-term, and long-term liquidity needs?
• Will purchasing the house significantly change one’s lifestyle?
• Should the house suffer a significant decline in value—say 20%--will that change one’s lifestyle?

While there are no right or wrong answers to those questions, answering them tends to remove a substantial emotional component of the purchase decision.  For example, someone who is buying a house for shelter purposes, anticipates owning it for an extended period of time and has the liquidity profile to own the home and maintain their lifestyle, can be less focused on what is the “exact right time to buy”.

On the other hand, someone who is considering a fix and flip, is more liquidity constrained and risks a lifestyle impairment should they not be able to sell the house in a timely manner, might want to reconsider the purchase option.

In addition, it’s also crucial that a house be factored into one’s overall asset and liability profile.  It is very important to include a primary residence in all of your long-term financial planning scenarios.

In short, again, there is no simple answer about the “right” time to buy a house.  Working closely with your financial advisors and a seasoned professional like myself will help you get the answers for your personal situation.

 

Is this a good time to sell a house?

Putting your home on the market now will get you one step ahead of your neighbors who might be waiting for the traditional “spring buying season”.  If you want to stand out from the crowd, this holiday season is the best time to make sure your house is available for buyers.  

The number of existing homes for sale is still historically low and putting your home on the market now will give you the best chance to be in front of buyers competing for these homes.  

As mortgage rates begin to increase next year, more folks will be entering the selling market before the current frenzy ends.  By selling now, your home will get the most exposure and you will be ahead of the game.

Even though it’s the holiday season, don’t think there aren’t a number of potential buyers who are out looking every day.  Today’s buyers are still dealing with a limited number of homes for sale and are competing with each other for their dream home.  When that happens, if your house is one of the few on the market, you may find your home in a bidding war and possibly going for over the asking price.

Creative offers are coming in for most homes these days and chances are you might get one that will waive contingencies and will pay the difference, if any, over the home appraisal.  Making your move to list your home today will get you in ahead of those who are waiting until after the holidays.

 

These are just some of the things to consider when wondering about a good time to buy or sell.  And once again, the best answer I can give you is that if, after all considerations, the time is right for YOU, then most ANY time can be the right time.

November 22, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

SOME DAYS THERE SEEMS TO BE MORE QUESTIONS THAN ANSWERS…

You know, after 48+ years in local Residential real estate, along with my Investment Banking background, I’ve become somewhat of an expert in these arenas.  Some days I wish I had a crystal ball because oftentimes there is no definitive answer to a lot of the questions I’m asked.  

It’s easy for me to understand why Zillow ended its iBuying department.  Buying and selling Residential real estate is not for the timid…or for those with limited experience.

Are prices going to continue to climb?  Are interest rates going to go up as well?  Is it a good time to purchase a home for investment purposes?  Am I better off looking at new construction because of the lack of existing homes for sale? Is this the best time to sell my present home and trade up?

Those are just a few of the questions I field daily.  If I knew all the answers to those inquiries, it sure would make life easier for not only me, but for my clients as well.   

However, I do have some answers that have remained true for as long as I’ve been working in Residential real estate.  

All answers need to first be based on LOCAL statistics.  When you see on national news that home prices are going up or down—always remember they are talking about the U.S.A. in general.  As I’ve been saying for quite some time now, Colorado Springs as a city is seeing spectacular growth.  When the housing crisis enfolded in 2007-8, we were not hit nearly as hard as the rest of the country and thus were able to recover at a faster pace.  

During the recent pandemic as folks were leaving big cities or starting to work from home (WFH), Colorado Springs was the choice of many.  

As more and more companies are moving here and relocating employees with them, those folks are needing places to live as well. 

When you add that to our excellent work/life balance…well, I think you get the picture.

While looking at the local picture is important, the primary place to look is at your individual situation.  

When I’m asked, “Is now good time to buy or sell?”, I always answer the same way.  “If it’s right for YOU, then it’s a good time to buy or sell.”  There’s no standard formula for buying and selling a home and that’s why I spend time with each client to determine what is best for their situation.  

It’s important to find out what someone is looking for and determine why they want to buy, sell, or invest in a home as everyone has different wants, needs and budgets. Those type of questions need to be addressed upfront and we can proceed from there.

Yes, it’s not easy out there in Residential real estate territory these days, but when you’ve got me on your team, you’ll win in the end.  It may take longer than usual to find exactly what you want, but if there’s any way possible, I will work to make it happen for you and your family.

And the best move you can make at present is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered. If I don’t have the answer, I sure do know where to get it, and that’s as important as “knowing it all”.

I look forward to speaking with you.

 

COLORADO SPRINGS HOME PRICES JUMP HIGHER IN THIRD QUARTER 2021…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 11.10.21 

Median prices of single-family homes across the nation rose double-digits for Quarter Three 2021 in 99% of the 183 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 16.0% to $363.700.

Colorado Springs surpassed that, with the median price of single-family homes jumping 18.6% to $441,200 during the third quarter of the year.  Prices reflect detached, single-family and patio homes but not townhomes or condominiums. 

The median price in the Springs ranked 29^th highest of the cities surveyed.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver and Boulder areas, which makes our city more attractive to potential companies and others wanting to relocate here.

Qualifying income for local mortgages continues to rise, however, increased home value in your present home can likely give you a larger down payment.   That could possibly keep your monthly output lower than you might expect, even in a more expensive new home. 

To see all 183 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.   To see the qualifying income necessary for mortgages, click here.  

And if you have any questions, you know where to reach me.

 

ERA SHIELDS “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW

ERAShields, 10.31.21

As always, I am pleased to provide you with the most current local information.  This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.  

Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety.  

HOMES SELLING IN ONE WEEK, FORCING BUYERS TO TAKE RISKS

The Wall Street Journal, 11.12.21

This recent article wasn’t news to me, as I’ve been encountering similar situations for over a year now, but it’s interesting to see that buyers all over the country are also having difficulty in purchasing existing homes for sale in this seller’s market.

According to a survey by the National Association of Realtors, “Homes sales between July 2020 and June 2021 sat on the market for a median period of one week before going under contract.”  That is down from three weeks a year earlier and marks a record low in data going back to 1989.

This rapid turnover helps explain how the number of homes sold rose to multiyear highs during the Covid-19 pandemic, even as the inventory of homes for sale remained so low.

The pandemic sparked the biggest housing boom in more than a decade…for many of the reasons I mentioned before.  

Supply is still constrained, and buyers are having to pounce quickly once they find what they are looking for.  As I’ve told you in previous articles, many buyers have waived their rights to terminate a contract because of a low appraisal or unfavorable inspection.  In fact, several my buyers have bought homes without ever seeing them in person.  

This has been especially true of new construction where there are only so many lots released at a time and buyers must get in line to purchase.  I’ve gone to those sites for my clients and selected lots and home elevations, and we have communicated through Zoom calls so the clients can make a quick decision based on my input.  This is a service I provide at no additional cost to the buyer and can make a difference, especially when time is of the essence.  

One of my recent clients did not get their first choice due to not committing to the lot immediately.  They were able to get their second choice, but the homebuilder required a commitment on the phone with a signed contract emailed immediately thereafter. 

Fortunately, I have good working relationships with most local builders but even that doesn’t always get me to the front of the line.  Lately it’s been via a lottery type of situation and buyers only have x amount of time to commit.  

Whether it’s new construction or purchasing an existing home, the most important thing is knowing your wants, needs and budget before even starting to look.  

After you make those decisions, the next best one is to call me and get the ball rolling.  It’s going to take longer than you might expect and the sooner we start, the sooner you can be living in the home of your dreams.

 

HARRY’S JOKE OF THE DAY:   

 

 

Even though it’s a “corny” joke, there’s a double meaning in here.  

As we approach the Thanksgiving holiday, I always start by giving thanks for my family and you, my clients and friends.  

Have a safe and happy Thanksgiving.

November 4, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

I HAD INTENDED TO INCLUDE THIS WITH MY “JOKES OF THE DAY” BUT…

…unfortunately this crazy Residential real estate market is in no way a joke.  Every time I think we have reached our “new normal” it keeps changing.

I was hoping that when we started to have a few more existing homes for sale that most of those bidding wars and winning bids over list price would settle down a bit.  But I was wrong.  Let me give you a recent example.

Last Thursday I listed a home for $540,000.  When the showings began that day, I received a call from a broker who wanted to make an offer, sight unseen, for their buyer.  I let that broker know that the seller was not going to accept any offer immediately.  He said that was fine and that his buyer would put in a purchase price increase clause that would allow his bid to go $3,000 higher than the highest bid--to a high of $605,000.

As the day progressed and showings began, we received a number of offers.  And then the bidding war began.  Since the first offer had indicated they were willing to bid $3,000 over the highest bid, that offer was accepted on that same day one!  Selling price?  $598,000. 

Yes, you read that right.  The home sold for $58,000 more than the asking price in one day—that’s 10% OVER the listing price.  And the best news for my seller was that the buyer was putting down more than 50% cash, thus negating the need for an appraisal which possibly could have come in at under the selling price!

And the moral of this story?  

If you’ve even considered the possibility of selling to trade up or move to a new neighborhood, NOW is the time for more reasons than the above.

Mortgage interest rates which have been staying at historical lows are projected to rise.  I can’t tell you when that might happen, but most economists are saying the rates can’t stay this low.  

Home prices are continuing to rise which means two things if you are looking to move.  First of all, your present home is more than likely worth more than you might imagine, thus providing you extra equity to put into your next one.  

Therefore, even though your next home will also likely cost more, the size of your down payment could possibly help keep your monthly output close or not too much more than what it is currently.

The downside at the moment is still the shortage of existing homes for sale.  So you really do need to know where you intend to move prior to listing your present home.  It’s possible to request to lease your home back from the buyer for a certain period of time, but that is not always an option.

I wish I could tell you that new home construction is the answer and in a number of cases it is, but I’ve lately seen the implementation of “lotteries” in order to deal with only so many available lots and oh, so many potential buyers.  

Homebuilders are working as fast as they can to rectify this, but at the moment it’s a bit hard to navigate through those “wars” as well.  And if new home construction is what you are seeking, I can help you there as well, without any additional cost to you.

The one bright side in all of this?

Me, of course.  

With my 48+ years in the local Residential real estate arena, coupled with my Investment Banking background, I’ve experienced a lot and can help make the buying and selling process a bit less painful, if possible.  I used to say I could make it fairly “stressless”, but unfortunately that’s not the case at present.  I continue, however, to do my best to make purchasing what is often your most valuable investment as pleasant an experience as I am able.  

So, if you’re ready…I’m willing and able to help you make your Residential real estate dreams come true.

The very best move you can make right now is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  

I look forward to speaking with you.

 

OCTOBER 2021

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

Here are some highlights from the October 2021 PPAR report.  The format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 11.  For condo/townhomes it was 8.  

Also in El Paso County, the sales price/list price for single family/patio homes was 102.0% and for condo/townhomes it was 101.9%.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing October 2021 to October 2020 for All Homes in PPAR:

 

                        Single Family/Patio Homes:

·       New Listings were 1,596, Up 2.4%

·       Number of Sales were 1,641, Down 5.3%

·       Average Sales Price was $510,180, Up 18.0%

·       Median Sales Price was $446,000, Up 16.3%

·       Total Active Listings are 1,048, Up 19.0%

·       Months Supply is 0.6, Down 3.6%

 

Condo/Townhomes:

·       New Listings were 248, Up 7.8% 

·       Number of Sales were 250, Down 3.8%

·       Average Sales Price was $326,622, Up 18.3%

·       Median Sales Price was $326,272, Up 24.5%

·       Total Active Listings are 129, Up 27.7%

·       Months Supply is 0.5, Down 7.2%

 

Now a look at more statistics…

 

OCTOBER 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Down 7.0%

 

• Median Sales Price for All Properties was Up 16.8%

 

• Active Listings on All Properties were Down 9.1%

 

You can click here to read the 15-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update.  I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area in general:

 

NATIONAL housing market PREDICTIONS FOR 2021 & 2022 

Keeping Current Matters, 10.26.21

Despite all the ups and downs this past year, one thing we know for sure is that the real estate market in 2021 not only met expert predictions, it surpassed them and broke records along the way.

That, of course, brings up the future.  Will the 2022 housing market continue to follow that same trajectory, or are we facing a possible downturn?

The following is a deep dive into what leading real estate experts are projecting for the final quarter of 2021 and what to expect in 2022 so you, as a potential buyer and/or seller have the knowledge and confidence you need to be successful.

As always, please remember that these predictions are generalized on the national level, and when I write about trends it is more localized.  For example, when you read about unemployment further down, remember that Colorado Springs was not hit nearly as hard as a lot of the country, and we have rebounded at a faster pace.  Our home prices have risen at a pace higher than much of the USA and due to the desirability of working and living here, we will undoubtedly continue to outpace a good portion of the country in the coming year and more.

 

housing market FORCAST:

 

• Interest rates are rising but projected to stay low.  This is good news because affordability reached one of the highest levels in 30 years due to the low rates.  And as I mentioned earlier, although prices continue to rise, homes are still affordable to purchase, although slightly less so than earlier this year.

 

• Home sales are slowing but still strong.  While the last two years have been some of the craziest I’ve seen during my 48+ years in the business and home sales are slightly slowing, that definitely doesn’t mean the market is slow.  It’s simply returning to a more balanced one than we have been witnessing these last few years.

 

• Home prices are appreciating slower too.  The constant battle between high buyer demand and low inventory this year led to a surge in home values that left a number of folks scared we were headed for another housing bubble.  And while this year’s price escalation has been a bit excessive, it was just a result of Econ 101—high buyer demand coupled with extremely low supply.  As inventory starts to rise, experts anticipate price appreciate will slow.

• Foreclosures will happen—but won’t lead to price declines.  The massive wave of unemployment caused by the pandemic led many homeowners across the country to enter mortgage forbearance.  While unemployment is slowly but surely declining ahead of expectations, it will be awhile for much of the country to reach the pre-COVID levels.  This will cause foreclosures to rise.  Experts don’t anticipate this will lead to anything resembling the foreclosure crisis of 2008 and they don’t expect it to lead to the major home value depreciation that followed.  (remember that I’m reporting “national” news and that Colorado unemployment rate is again quite low).

​

IS THE housing market GOING TO CRASH BEFORE 2021 ENDS?

 

The answer, according to top real estate experts, is a big NO.  While memories of the housing crash of 2008 still linger on the minds of many buyers and sellers, today’s market conditions resemble nothing close to what caused it.

Home price appreciation may be high but again, it’s a result of supply and demand.  The foreclosure situation should be balanced out by the large amount of equity homeowners currently have which means they can choose to sell rather than foreclose.

Plus, while affordability may be decreasing, historically speaking it’s still high compared to most other years.

 

WHAT DOES THIS MEAN FOR BUYERS AND SELLERS FOR THE REST OF 2021?

 

There is still a lot of motivation for both buyers and sellers in today’s market and that’s not expected to change in the next couple of months.  

With both inventory and mortgage rates remaining low, both sides of the real estate transaction stand to benefit from making a move before the end of the year.

real estate is still strong and waiting until next year could mean losing out on a less competitive market and better affordability—the two big factors positively impacting buyers and sellers today.

 

2022 housing market PREDICTIONS

 

Here’s what industry experts are saying about what they anticipate for the 2022 housing market:

 

HOME PRICES

 

It is important to remember again that the 2021 market was anything but normal, and that escalating home values were a direct result of the record-low inventory.  Experts predict that the inventory situation should improve in the coming year, stabilizing price appreciation across the nation.

But will home prices depreciate in 2022?  More than 100 industry experts don’t think so.  Instead, they are projecting a more modest appreciation of 5.82% nationally in the next 12 months compared to the 11.74% rise seen nationally on average in 2021. 

 

MORTGAGE RATES

 

In case I haven’t mentioned it enough, the past year saw the lowest mortgage rates in the history of real estate.  So, if you are waiting for those rates to come back down or go down more, you may be waiting a very long time.

While homes right now may be less affordable than they were a year ago, they’re still extremely affordable.  

If you look at the 30-year mortgage rate chronicled by Freddie Mac, you can see the average rates by decade:

 

• 1970’s:  8.86%
• 1980’s:  12.7%
• 1990’s:  8.12%
• 2000’s:  6.29%
• 2010’s:  4.09%

 

While experts don’t project that mortgage rates will rise a huge amount, any increase would mean an increase in monthly mortgage payments.  A couple of decimal points may not seem like a lot to most, but it could make or break a buyer’s budget.

If you play the waiting game, a rise in mortgage rates coupled with the continued home price appreciation means just one thing—paying more for the same house you could buy now. 

 

HOUSING INVENTORY

 

Inventory has been the biggest player in the anything but ordinary real estate market of the past two years.  

With the bidding wars and such going on you might be wondering if housing inventory will increase in 2022.  The good news is that there are many factors that lead industry experts to anticipate a rise in homes for sale.

Here’s why:

 

• Homeowners may be more confident putting their homes on the market as COVID numbers continue to drop and more people become vaccinated.

 

• Many of the obstacles halting or slowing new construction start to fade and those homes come on the market, adding new inventory and meeting the needs of population growth.

 

• As forbearance comes to a close, experts predict a wave of new homes coming on the market.  However, they don’t anticipate the majority of those to be foreclosures.  Instead, because of built-up equity, homeowners in this position will have the opportunity to sell instead.

 

BOTTOM LINE

If I’ve taught you anything in these eNewsletters it should be that while the future can be projected, it can’t be predicted.

While industry experts don’t expect the 2022 housing market to be as crazy as 2020 or 2021, it’s important to keep reading my eNewsletters to get current information on our local residential real estate status.

Better yet, give me a call and we can discuss your individual situation and how to best take advantage of making your wants, needs and budgetary requirements get you into the home of your dreams.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 10.28.21

As always, I’ve included the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the National and Colorado Springs levels.  

I’ve reproduced just one of the charts below.  You can click here to read the entire report and if you have any questions, please give me a call.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 26, 2021

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

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

 

 

 

IF A PICTURE IS WORTH 1,000 WORDS…. THE ONE ABOVE COULD MEAN HUNDREDS OF THOUSANDS (OF DOLLARS) TO YOU…

Home sales are picking up again and for many good reasons.  Interest rates have remained historically low, but the recent talk of possible increases, along with more available homes for sale, has been good incentive for some of my clients to sit down and discuss whether now is the time for action.

As I’ve said forever, I can’t begin to predict which way rates will go.  But I can tell you that these very low ones won’t be around forever.  The Fed has been discussing inflation and what can be done to curb it so today’s low interest rates could be a thing of the past sooner than later.  And with more and more folks choosing to work from home (WFH), their wants and needs are far different than prior to the pandemic.

Colorado Springs is also seeing quite a resurgence as a place that young professionals want to work and live due to our fabulous work/life balance and new companies are relocating here as well.  Downtown has “come back” and then some, with the addition of museums such as the U.S. Olympic and Paralympic Museum and various sports venues, as well as new restaurants, shops, apartments, and other living spaces.

We’re starting to feel like a “big” city, while fortunately retaining many of the things that may us proud and happy to call Colorado Springs our hometown.  I won’t talk about traffic since my friends who live elsewhere think we don’t have any, but…if you’ve lived here for any length of time you know what I mean.  

Amazon recently opened their largest distribution center in the four surrounding states near our airport and many of those employees (the non-robotic ones!) are looking for homes.  So are the ones choosing to relocate here with their companies.  Having more homes available for sale has been a blessing for those folks and as new homebuilding continues to ramp up, this has been the choice for many of them as well.

In fact, I’ve helped some relocatees purchase new home construction, often without them seeing a model home in person.  Lot and home elevation selections have been completed via video and I’ve been their “eyes” in making certain that the builders follow through with all the particulars.  My long-standing relationship with many local builders has made that process easier for my clients and this is a service I provide at no additional cost to the buyer.  

I’m starting to find myself as busy as ever, and if there were more existing homes for sale, I’d be even busier.  When homes get listed, my clients are ready to pounce, but unfortunately so are a number of other potential buyers.

This leads me to tell you that even though there are more homes for sale at present, we are still seeing multiple offers, many over listing price, and quick turnarounds.  Bidding wars apparently are here to stay for a while, so it’s as important as ever to know what you want, need, and can afford PRIOR to the search.  Once you find the home you want there is little time to “think it over”.  

If you’ve even considered a new home or neighborhood, let’s talk and see how together we can make your present home help you work toward that goal.  There’s no better time than now to make all your Residential real estate dreams come true.

And…the best move you can make at present is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get the ball rolling.  

I look forward to speaking with you.

 

HOME SALES AND PRICES JUMPED IN SEPTEMBER

The Wall Street Journal, 10.22.21

As depicted in the illustration above, U.S. home sales surged last month with their strongest showing since January, ending a months-long stretch when housing market activity slowed from its frenzied pace and high prices put the brakes on a number of buyers.

The dip in mortgage rates and activity at the high end of the market helped existing-home sales rise 7% in September nationally from the prior month to a seasonally adjusted annual rate of 6.29 million, according to the National Association of Realtors (NAR).  

While demand from buyers has exceeded supply for more than a year, economists said that last month was still a standout.

“This autumn season looks to be one of the best autumn home-sale seasons in 15 years,” said Lawrence Yun, NAR’s chief economist. 

And though prices remain near record highs, the pace of price growth is slowing, which will allow for a more “normal” appreciation.  

Again, what all this means is that NOW is the time to get off the fence if you’ve even considered a move.  The sooner you begin, the sooner you will be in a new home.  Don’t delay, call me today.  If there’s a way to get you where you want to be, I’m the guy who can get you there.

 

SALES TAX COLLECTIONS IN COLORADO SPRINGS JUMP

The Gazette, 10.23.21

Colorado Springs is continuing a robust recovery 1 ½ years after the onset of the COVID-19 pandemic.  The city saw another double-digit percentage gain in sales tax collections last month, a good sign for the Pike’s Peak region’s economy.

It’s evident that folks are busy spending on things such as cars, appliances, TVs, apparel and building materials, among other items—and the 2% sales tax levied on such generated nearly $19 million in revenue in September according to a report released last Friday by the Colorado Springs Finance Department.

That’s 22% higher than the same month a year ago and continues the double digit increases that began in March.

According to Tatiana Bailey, director of the University of Colorado at Colorado Springs Economic Forum, “It’s an overall indicator of continued economic growth.  We’ve regained all of our jobs in the region.  It’s all good news and great news for the mayor’s office and having the tax revenues we need.”

Since Colorado Springs’ sale tax is a critical revenue source and closely watched by city officials and local economists because it funds more than half of the Springs’ annual general fund budget, this is exceptionally good news all around.

Bravo to all of us for helping to boost the local economy.

 

ERA SHIELDS QUARTERLY “STAT PACK”

I want to share with you the quarterly “Residential Review” for El Paso County that is compiled by my company. The data provided is through the Third Quarter, 2021.   You can click here to read the report, along with charts, in its entirety.

The graph below compares the number of homes on the market (active) to the number of homes sold.  It determines how many months it would take to sell through the current listing inventory.  Most economists consider 6.0 months to be a “balanced” market:

 

 

 

And some quick facts you might find interesting:

 

• New Listings Input for the Quarter were up 472 units from 2020 (9%)

 

• Sales for the Quarter were down 7% (4490 vs 4854)

 

• Median Price for the Quarter is up to $445,667 (16%)

 

• Average Price for the Quarter went up to $500,433 (16%)

 

• Just 4% of sales in the Quarter were under $300k (in 2020 it was 15%, 2019 it was 37%)

 

• 50 homes sold for $1 million+ during the Quarter (21 sold during the same period last year)

 

• Single-Family building permits this year are up 356 units (9%)

 

• 30-year Fixed-Rate Mortgages are right at 3%

 

SHOULD YOU RENOVATE OR MOVE…THE BIG QUESTION

Keeping Current Matters, 10.13.21

 

As I’ve been mentioning a lot, the last 18 months have changed what many buyers are looking for in a home.  The American Institute of Architects recently released their AIA Home Design Trends 66667uSurvey, and it reveals the following:

 

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% or respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

 

If you are like any of these respondents and want to add any of the above, you have two options:  renovate your current home or buy a home that already has the spaces you desire.  The decision you make could be determined by factors such as:

 

1. A possible desire to relocate

 

2. The difference in the cost of a renovation versus a purchase

 

3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

 

In either case you will need access to the funds for either a renovation or the down payment your next home would require.  The great news is that the money you need probably already exists in the equity of your current home.

 

Home equity is skyrocketing due to the record-setting increases in home prices over the past two years.  The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:

 

 

The money you need to purchase the perfect home or renovate your current house may be right at your fingertips.  However, waiting to make your decision may increase the cost of tapping that equity.

 

If you decide to renovate, you’ll need to refinance or take out an equity loan to access the equity.  If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between your down payment and the cost of your new home.

 

Mortgage rates are forecast to increase over the next year, so waiting to leverage your equity will probably mean you’ll pay more to do so.  According to the latest data from the Federal Housing Finance Agency (FIFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below.  If you are one of those homeowners, you can keep your mortgage under 4% by doing it now.  If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

 

First Step:  Determine the Amount of Equity in Your Home

 

If you’re ready to either redesign your current home or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home.  To do that, you’ll need two things:

 

1. The current mortgage balance on your home

 

2. The current value of your home

 

You can more than likely find the mortgage balance on your monthly mortgage statement.  To discover the current market value of your house you can pay several hundred dollars for an appraisal, or you can contact me, and I will be able to give you a professional equity assessment report at no cost to you.

 

Bottom Line?  If you are one of the many who have refocused your thoughts on what you want from your home over the past 18 months, now may be the very best time to either renovate or make a move to the perfect home.

 

Any Questions?  Contact me and I will more than happy to give you answers.  And if I don’t have the answers, you can be sure I know how and where to get them for you.

 

HARRY’S HALLOWEEN JOKES OF THE DAY: