HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

EXISTING HOME SALES SURGE IN MOST STATES IN FOURTH QUARTER

The National Association of Realtors has just published the report on the median sales prices of single-family homes for the fourth quarter, ending December 31, 2009. The report includes statistics from the 151 largest metropolitan markets. Here are some of the highlights:

  • Sales were up 27.2% in the last quarter of 2009, compared to the same period in 2008.
  • That represents an increase of 13.9% in the number of sales over the previous quarter.
  • Prices rose in 67 of the 151 markets covered, while prices dropped in the other 84
  • The national median price of existing single-family home sales for the quarter fell to $171,900 (4.1%), representing the smallest decline in over 2 years.
  • The surge in home sales was driven by two factors: The Federal Home Buyers tax credit and the record-low mortgage interest rates.
  • Comparing the fourth quarter of 2009 with the fourth quarter of 2008, Colorado Springs showed a 1.5% increase in the median sales price of single-family homes.

These figures show an encouraging growth for the nation and for our local market.

HIGHER RATES AND INFLATION ARE BOTH ON THE HORIZON

Last week, Ben Bernanke, Chairman of the Federal Reserve, warned that the Fed will likely raise its rates to banks “at some point”. Based upon current market fragility and the history of past Fed actions, the increase will probably not take place immediately, but will probably take place in the second half of the year.

The Fed plans to end a $1.25 trillion mortgage-bond-purchase program that has helped keep mortgage interest rates near a record-low 5%. The Mortgage Bankers Association, an industry trade group, predicts the end of the Fed mortgage-bond-purchase program could push rates up by roughly 0.5%. For a $300,000 fixed-rate mortgage, that would increase the monthly payment by $125.

Coupled with this Fed-activated increase in the cost of mortgages will be the inevitable increases in the cost of everything that will result from inflation. The currently-proposed budget will definitely trigger some inflation and, if the proposed health-care and cap-and-trade bills, etc. are passed, the looming inflation will increase even more.

The good news is that you can now buy your home at an attractive price and at an excellent mortgage-interest rate. Furthermore, when inflation kicks in, the home you buy today will increase in value. The bad news is that, if you don’t act decisively now, the home you buy next year will have a higher price tag and a higher interest rate. Call me.  

COLORADO SPRINGS COST-OF-LIVING IS BELOW NATIONAL AVERAGE

According to the data released this week by the Council for Community and Economic Research, 2009 living costs in the Colorado Springs area dropped to the lowest level in 19 years. The survey, which studies 322 national metropolitan areas, shows our local cost-of-living in 2009 was 7.2% below the national average …the lowest level for any full year since 1990. From the workers’ perspective, this good news is balanced out by the fact that our average wages are 8% to 10% below the national average, so our lower cost of living does not necessarily result in a higher standard-of-living, but, from the perspective of outside companies looking to reduce their expenses, the lower costs of doing business in Colorado Springs could be a significant benefit to their bottom line. Considering the skyrocketing business-tax rates in many other parts of the country, our area looks better and better as the place to relocate businesses.  

SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”

Salzman real estate Services can now provide clients with a 15% discount on all painting and decorating products, through the Sherwin Williams “Neighborhood Preferred Customer Program”. As a member of this money-saving program, we can now offer these discounts to our clients in every part of the country, whether they are buying or selling their home. Please contact us for the details of this helpful service.

REALTOR MAGAZINE LISTS 4 REASONS TO SELL NOW

Selling a property in this tough market can seem like a challenge, but Realtor® Magazine lists 4 factors that make this a good time to sell.

  • Sell low and Buy low. Because all property values are down, the loss on the property a home owner sells is really a paper loss, because the next property he buys will also be a bargain. If he buys smartly, when prices come back in a few years, he’ll be in better shape.
  • Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
  • Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
  • Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.

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. 

JOKE OF THE WEEK

In honor of Mardi Gras, the following check list will help you determine whether you are really a Louisiana native:

...When out of town, you stop and ask someone where there is a drive-thru daiquiri place, and they look at you like you have three heads. ... Every so often, you have waterfront property. ...You learned to drive a boat before you could drive a car. ... You can name all of your 3rd cousins. ...You can plan your wedding around hunting season & LSU football. ...Your burial plot is six feet over rather than six feet under. ...You're not afraid when someone wants to "ax you something". ...You don't worry when you see ships riding higher in the river than the top of your house. ...The smell of a crawfish boil turns you on more than HBO. ... You assume everyone has mosquito swarms in their backyard. ...You like your rice and politics dirty. ...You pronounce the largest city in the state as "Newawlins". ...You know those big roaches can fly, but you're able to sleep at night anyway. ...You can't think of anybody that can cook better than your momma. ...Your last name isn't pronounced the way it's spelled.