SALZMAN NEWSLETTER-JUNE 6, 2009 

HARRY'S COLUMN

 

UP, UP AND AWAY !!!

 

You may have heard the old saying, "When are the two best times to plant trees? Answer: Twenty years ago and today". The same advice goes for buying a house. Considering the 4.75% interest rates available last week, that would have been the best time for you to have purchased your new home. Your next best opportunity to buy your new home would be today. Interest rates are still extremely low (currently running around 5.75%). Added to that, our local statistics show that the value of local homes is now on the rise (In May, the number of sales were up 17% over April, average price was up 5.2%, and median price was up 5.1%). On the other hand, inventory, i.e. listings (the number of available homes) is down 21.2% from May of last year. This reduction in inventory tends to raise home prices. The moral of the story is that you had better buy now, while all the indicators are good.  

 

All things considered, it's obvious that the real estate market in Colorado Springs is turning around. As witness to this, Ben Bernanke, Chairman of the Federal Reserve Board, in his June 6 interview on 60 Minutes, repeated his prediction that a positive forecast of the economy is beginning to emerge. Because all of these positive indicators tend to lead the market by 6 months, the evidence points to a marked rebound in the local Real Estate market by the last quarter of 2009, as we have been predicting in our weekly enewsletters.

 

Bottom line: BUY NOW !!!

 

Latest Local Stats

To review all of the most recent local Real Estate statistics, click here.

 

 

 

WHAT'S NEW ???

 

This week, we have two pieces of good news and one item of not-so-good news for Buyers and Sellers.

 

GOOD NEWS ITEM #1

 

SALZMAN INTRODUCES innovative MORTGAGE PAYMENT PROTECTION

 

In response to the concerns that some prospective homeowners have voiced regarding the possibility of losing their jobs during the present recession, Salzman real estate Services is introducing an innovative new program called the Rainy Day Fund. This non-profit service will offer a product that works much like a home warranty. The Seller offers to buy job loss protection for $500. If, within 24 months after closing, the Buyer loses his or her job and qualifies for unemployment, the program will pay up to $1,800 monthly for as long as 6 months.

 

In announcing this revolutionary new program, Harry A. Salzman stated: "During uncertain economic times, it is understandable that some prospective homebuyers might be concerned about the possibility of losing their jobs and, as a result, falling behind on their mortgage payments. The Rainy Day Fund will ease their concerns by providing mortgage protection, until they find a new job.

 

"I am excited to be able to introduce this highly-innovative new program to my clients. It's a new answer to our new problems"

 

good news item #2  

 

salzman now offering iN-DEPTH MARKET FORECASTS FOR EVERY ADDRESS IN THE PIKES PEaK AREA

 

Salzman real estate Services is now able to offer market forecasts for individual homes in the Pikes Peak area. These forecasts, based on data and analytics, look two years into the future taking into account inventory, valuations, credit information, loan repayment data, delinquencies and foreclosures. They even include satellite images of the property. When used properly, these forecasts can predict whether the property in question is expected to increase in value, decline in value, or remain neutral.

 

The pass-through charges for these forecasts are $3.99 for a summary report which includes a 12 month real estate market forecast and housing supply projections, delinquency and foreclosure trends, a 12 month value projection and summary information about the property. For $9.99, a more comprehensive report provides a 24 month market forecast and other information, including local foreclosure trends and timelines, mortgage delinquency and loan deterioration trends, historical median sales price vs. volume trends, neighborhood lending and sales statistics, average area credit scores, the local percentages of distressed homes compared to state and national levels, average local discounts on bank-owned properties and risk from exotic loan types in the neighborhood.

 

"Here's a new service that will help us offer specific property information to our Buyers and Sellers. This data will enable us to localize, interpret and advise clients more effectively that ever before. It's another example of the innovation that must lead our industry into the future."

 

I'M FROM THE GOVERNMENT AND I'M HERE TO HELP YOU !!

 

In response to the criticism that they made buying homes too easy, Fannie Mae and Freddie Mac have responded by adopting a code which makes buying and selling homes more difficult. The new Home Valuation Code of Conduct, while well-intended, requires that appraisers not be appointed by lending institutions. As a result, lenders are encouraged to outsource appraisals to appraisal-management companies (which take a sizeable cut of the appraisal fee). The result, according to many appraisers, is less accuracy and certainty about a property's actual value. In our local market, for example, it has resulted in appraisers from Denver being assigned to travel to Colorado Springs to appraise properties. Obviously, they don't know the local market as well as our local appraisers and the Denver appraisals tend to be inaccurate, too expensive (and, typically, too low).

 

DON'T COUNT YOUR CHICKENS BEFORE YOU CLOSE

 

How soon should you pack up your belongings when selling your home? Sellers used to start packing as soon as the buyers removed all contingencies from the contract. It was usually smooth sailing from then to closing.

 

Now, there are some sale transactions that don't close on time because lenders take longer to approve loans, often asking for an additional appraisal or more documentation from the buyer before they'll deliver the funds. Occasionally, a transaction doesn't close at the last minute. The lender might cease offering a certain loan program. change the terms of the loan or run out of money.  

 

To avoid moving out before you know the sale is closing, build a few extra days into the purchase contract at the time you negotiate the sale with the buyers. For example, ask to vacate the property within two or three days after closing. That way, if the closing is delayed, you have time to reschedule your move, and to move out and clean the house before the buyers take possession.

 

If you are renting, you should have assurances from your lender that the sale will go through before giving notice to your landlord, unless you have a place to stay temporarily if the closing is delayed.

 

The moral of the story: Don't move your furnishings out until you are sure the transaction is closing, or, you might have to move back in again.

 

And, please remember, I would be honored to serve as your broker for all of your residential real estate needs.

 

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 35 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move.

 

 

JOKE OF THE WEEK

 

In researching for the enewsletter, we found the following story. For some strange reason, it reminded us of our current economic situation.

 

A white-haired old man walked into a jewelry store on a Friday, with a beautiful young lady at his side.

 

 

"I'm looking for a special ring for my girlfriend," he said.

 

 

The jeweler looked through his stock and took out an outstanding ring priced at $5,000. "I don't think you understand. I want something very unique," the man said.

 

 

At that, our now very excited jeweler went and fetched our special stock from the safe. "Here's one stunning ring at $40,000." The girl's eyes sparkled, and the man said that he would take it. 

 

 

"How are you paying?" asked our jeweler.

 

 

"I'll pay by check; but of course the bank will want to make sure that everything is in order, so I'll write a check and you can phone the bank tomorrow, and then I'll fetch the ring on Monday."

 

 

Monday morning, our very disappointed jeweler phoned the man. "You lied, there's no money in that account." 

 

 

"I know, sorry, but can you imagine what a FANTASTIC weekend I had?"