August 16, 2010

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

INTERNET RADIO IS ALIVE AND DOING VERY WELL !!!

We received a lot of positive feedback from our 50-minute interview on www.VoiceAmerica.com. On the show, Deborah Hoskins, JD, CFP, the host of "The Wise and The Wary", asked me about some innovative, aggressive and creative marketing ideas for closing real estate deals in today's market.

The VoiceAmerica Talk Radio Network is the single largest producer of original Internet talk radio programming in the world. If you didn't hear the live interview and would like to hear it, please click here.  

Give us a call and let us know how you liked the interview.

 

LATEST LOCAL STATISTICS

The latest statistics from the Pikes Peak Association of Realtors confirm that the federal tax credit for Homebuyers was an inducement for some prospective Homebuyers to make their move by April 30, 2010, in order to qualify for the tax credit. Unfortunately, however, while the tax credit did create some Buyers and persuaded other prospective Buyers to buy in the Spring, rather than in the Summer, the bottom line was that the buying "spree" died along with the tax credit. As a result, July sales were slightly down.

As the July statistics also show, total residential sales in July, 2010 decreased to 713, a decrease of 21.9% from June, 2010 and a decrease of 24.6% from July, 2009.

The good news is that, although the median sales price in July, 2010 ($237,029) remained basically the same as June, 2010, it did show an increase of 5.1% over July, 2009.

Note that the total active listings amounted to 5955, which is .6% above June, 2010, and 16% above July, 2009.   

All of these figures demonstrate that we are in a Buyers' market. Prospective Buyers have their choice of houses at very competitive prices and Sellers are really in a squeeze. They must be willing to spend whatever is necessary to make their homes visually attractive and must be willing to price aggressively, to make their homes economically attractive.

The result of this "squeeze" on Sellers is that we meet prospective Sellers every day who are holding their homes off the market "until the market improves". Normally, that decision makes sense. However, considering the current large inventory of available homes (which will delay any significant increase in home prices in the immediate future) and the availability of extremely low interest rates (which will not last forever), we are encouraging prospective Buyers to consider listing their homes at a competitive price RIGHT NOW.

Consider these scenarios:

  • Seller #1 has to reduce his selling price, in order to make the sale. He then becomes a prospective Buyer. Thus, the money he "loses" when he sells, he makes up for by buying his next home at the low prices and low interest rates that are now available. He has, essentially, taken money out of one pocket and put it back into another

.and he ends up with very low mortgage payments for the next 30 years.

 

  • Seller #2 holds his home off the market until the market "comes back". When prices eventually go up, he will get a higher price for his house, but will pay more for his next house when he buys. The money he has "made" by waiting, he "loses" when he buys his next home. He has simply put money into one pocket and taken it out of another.

.and he ends up with higher mortgage payments for the next 30 years.  

 Bottom line ?  Let us help you sell your home right now. Call us.

 

COLORADO SPRINGS SALES TAX COLLECTIONS MAINTAIN UPWARD SWING

Sales tax collections in July rose 8% from July 2009, according to the Gazette (August 11, 2010). That makes 9 months in a row that sales tax collections have increased, compared to a year earlier. Much of the increase was because of the increase in auto sales. (Just one more reason we should thank our returning troops).

Fred Crowley, Chief Economist at the University of Colorado at Colorado Springs, explained, "We're at that re-buying stage right now. It's a classic inventory-recovery, post-recession period"

 

WHAT DOES THE NATIONAL MARKET LOOK LIKE?

On August 11, 2010, the National Association of Realtors released its quarterly performance report on the 155 largest metropolitan statistical areas in the nation (MSAs). The survey includes all MLS sales. The report shows that, compared with the same period in 2009, the second quarter of 2010 showed higher median prices for existing family homes in 100 of the 155 MSAs.

(Note: "Median Price" represents the exact middle of the price range i.e. half of the homes sold for more and half sold for less than the median price). The median price is considered to be the most accurate housing price index.

At the end of June, the national median price for existing, single-family homes was $176,900, up 1.5% from the same period one year ago. In Colorado Springs, however, the median price went up 4.1%. That's almost three times more than the national median price increase. Hooray for us !!

In spite of that piece of good news, it's still apparent that sales are lagging both nationally and locally and Realtors nationwide report that the federal tax credit was just a temporary fix for the problem.  

 

LET US "TAKE YOU OUT TO THE BALLGAME"

We are one of the original supporters of the Colorado Springs Sky Sox, the AAA Affiliate of the Colorado Rockies Baseball Club. So, as part of the Sky Sox Sponsor-Appreciation Nights, we have been given 50 free tickets to the Sky Sox games on Tuesday, August 24 (featuring the always-popular $2 Coors and $2 parking), Wednesday, August 25 (featuring the annual Bark in the Park. All dogs admitted free) and Thursday, August 26 (with live entertainment and Wing Fest 2010. Sample the Best Wings in Colorado Springs for free). Game times are 6:05pm. These are reserved-seat tickets and we will give them out to our enewsletter subscribers on a first-come, first-served basis (Maximum 4 tickets per person).

If you would like to see some exciting baseball, just drop by our office and pick up your free tickets. .and we won't even ask you to buy us some peanuts and CrackerJacks.  

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

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us. 

 

QUESTION OF THE WEEK

Please choose whichever one of the following statements makes more sense to you:

a. The government will give $3 billion to unemployed homeowners who are delinquent in their mortgage payments, so they can delay eventual foreclosure.

Or

b. The government will spend $3 billion to assist small businesses which will hire unemployed homeowners, thus helping them catch up on their delinquent mortgage payments.

Maybe it's just us, but it seems to be an example of the ancient saying, "Give a man a fish and he will eat for a day, but, teach a man to fish and he will be able to feed himself for the rest of his life".

Duh !!!

 

JOKE OF THE WEEK

Short real estate Jokes

My buyer told me that he lived in the same house for 10 years. When I checked, I found out he'd still be there today if the Governor hadn't pardoned him.

The sellers told me their house was near the water. It was in the basement.

How much are they asking for your rent now? Oh, about twice a day.

I have a temporary mortgage. What do you mean temporary? Until they foreclose.

Realtor: first you folks tell me what you can afford, then we'll have a good laugh and go on from there.

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.

There is no longer a need for the neutron bomb. We already have something that destroys people and leaves buildings intact. It's called a mortgage.

If you think no one cares you're alive, miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they won't pay.

I listed a maintenance free house. In the last 25 years there hasn't been any maintenance.

Did you hear about Robin Hood's house? It has a little John.

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

Houses today don't have enough closet space. Sure they do. They're just called guest bedrooms.

"A lot of homes have been spoiled by inferior desecrators".--Frank Lloyd Wright

The house is only 5 minutes from shopping . . .if you've got an airplane.

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

A man's home is his castle. That's how it seems when he pays taxes on it.

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

This house has an all-electric home. Everything in it is charged.

My buyers want a new home on the outskirts---of their income, that is.

By the time you pay for a home in the suburbs, it isn't.