HARRY’S COLUMN

THE COMING YEAR LOOKS GOOD FOR COLORADO SPRINGS real estate

 As we have mentioned in previous issues, the August issue of Forbes Magazine named Colorado Springs as one of the top three cities in the nation for housing recovery. As evidence that Forbes’ prediction is accurate, at the recent Southern Colorado Economic Forum, the University of Colorado in Colorado Springs School of Business analyzed 58 distinct local economic indicators, all of which pointed to the fact that our local economy is well on the road to recovery from the recession.

At the national level, Lawrence Yun, Chief Economist for NAR, speaking at the recent NAR Convention, indicated that home prices should show modest growth in 2010, after the worst downturn since the Great Depression. Prices should climb about 4% in 2010, compared to a projected decline of 13% during 2009.

Mr. Yun also predicted a 38% increase in new home sales in 2010. This should be very encouraging news to city planners, since every new home sold generates a significant amount of sales tax revenue. In Colorado Springs, for example, every new home sold contributes approximately $8000 in sales tax revenue. The recent Southern Colorado Economic Forum predicts an increase of 250 single-family home permits in Colorado Springs in 2010. This translates into additional sales tax revenues of $2 million and doesn’t even include the additional revenues from commercial and multi-family permits.

During the coming year, NAR also predicted that mortgage interest rates in 2010 will rise by .75% - 1% (Today, we can still obtain 30 year fixed rates of 5%) and that foreclosures should peak in the first half of 2010. To put all this into perspective, it means that the $250,000 home you are considering buying today will probably cost you $260,000 next year. And, considering the predicted .75% rise in interest rates, the monthly payment on that home will be approximately $165 more per month next year than it would be today.

 And finally, to add just one more incentive to buy now, remember that, if you delay signing a contract on that new home beyond May 1, 2010, you will lose out on the tax credit that Congress has just extended and expanded (See the article on the Homebuyers Tax Credit, below).

Bottom line ……Call me !!!

 By the way, if you are located out of this area and are considering moving into the Pikes Peak region, but are in need of some assistance in selling your present home, please remember that we specialize in relocation assistance, including the marketing of your present home. We would be happy to assist you with all of the various tasks involved in relocating.   

HOME BUYERS’ TAX CREDIT EXTENDED AND EXPANDED

 The big news this week is that Congress has extended the First-time Home Buyers tax credit and has also expanded the program to include repeat buyers. Click here to see the details of this very significant government program. It might be just the ticket to get you into that new home.

THIRD QUARTER STATISTICS ON HOME PRICES NOW AVAILABLE

 The National Association of Realtors has just released the sales price statistics for the third quarter of 2009. The report shows that the median sales price of existing single-family homes in the 153 metropolitan areas represented in the survey declined 11.2%, compared to the third quarter of 2008. The good news is that, in Colorado Springs, the decline was only 6.2% over the same period. This is another indication that our local economy has turned the corner and we are well on our way back to recovery. If you would like to discuss the specific numbers for your city, please give us a call.    

GET MAXIMUM EXPOSURE FOR YOUR LISTING ON LISTHUB

We are pleased with the response from our Sellers to our recent affiliation with ListHub. This new relationship enables us to promote our listings on a wide variety of real estate websites and give maximum internet exposure to our clients’ listings. To see the various sites on which our listings will now appear, click here.

 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. 

Finally, if you would like any of your business associates to receive these newsletters, please send us their email addresses and we will add them to our subscriber list. Thank you.

JOKE OF THE WEEK

 The Three Sons and the Parrot

Three sons left home, went out on their own and prospered. Getting back together, they discussed the gifts they were able to give their elderly Mother.

The first said, "I built a big house for our Mother."

The second said, "I sent her a Mercedes with a driver."

The third smiled and said, "I've got you both beat. You remember how Mom enjoyed reading the Bible? And you know she can't see very well any more. I sent her a remarkable parrot that recites the entire Bible. It took Elders in the church 12 years to teach him. He's one of a kind. Mama just has to name the chapter and verse, and the parrot recites it."

Soon thereafter, Mom sent out her letters of thanks:

"Milton," she wrote one son, "the house you built is so huge. I live in only one room, but I have to clean the whole house."

"Gerald," she wrote to another, "I am too old to travel any more. My eyesight isn't what it used to be. I stay most of the time at home, so I rarely use the Mercedes. And the driver is so rude!"

"Dearest Donald," she wrote to her third son, "you have the good sense to know what your Mother likes. The chicken was delicious!"

The third son replied. “Mama, how could you have eaten that valuable parrot? He knew how to recite the entire bible.”

His mother replied, “Well, if he was that smart, he should have said something”