June 20, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

 

EL PASO COUNTY FORECLOSURE FILINGS FALL 33%

New foreclosure filings and foreclosure sales at auction continued to fall in May across the state and in El Paso County, according to a report released on June 14, from the Colorado Department of Housing.

While the state saw a 24% decline in May foreclosure filings year-over-year, El Paso County had a 32.5% drop. That's welcome news.

Foreclosure sales at auction dropped 12.2% in El Paso County and by 20% statewide.

Foreclosure sales at auction are at a 26-month low and, statewide, new filings are the lowest they've been in four years, according to the report.

Some experts estimate that, at the present rate, it will take another three years to get through all of the homes at risk of foreclosure, but, based upon these current numbers, the worst of the crisis seems to be over.

 

AREA EMPLOYERS ARE OPTOMISTIC

Colorado Springs area employers are the most optimistic about their hiring plans than they have been in nearly three years, according to a quarterly employment survey by temporary-staffing giant Manpower.

It's quite a turnaround for the Springs, which just three months ago was ranked among the nation's worst job markets.

The percentage of local employers adding staff exceeds the percentage planning cutbacks by more than double, with 26% hiring and 12% making cuts during the July-to-September quarter. This is the most upbeat employment outlook for the area since the final quarter survey of 2008, which was taken just before the financial crisis hit.

In this latest survey, the Springs is tied with Denver and 10 other cities for the 34th -best among the nation's 100 largest metropolitan areas. Three months ago, the Springs tied with three other cities for the nation's eighth-worst outlook.

Things are definitely looking up.!!!

 

KEYBANK TAKES THE LEAD IN OFFERING AN EXCITING NEW LOAN FOR HOMEBUYERS

KeyBank has announced the introduction of the KeyCommunity loan, which offers prospective HomeBuyers with good credit, but little cash, the opportunity to buy their new home with only $500 down.

Some of the program details are: 

  • Borrowers need only $500 upfront
  • Satisfactory 12 month rental history at 100% LTV, or, no-rental history at 95% LTV
  • Seller contributions max 3%
  • 620 FICO Score - 100% LTV
  • 600 FICO Score - 97% LTV
  • No Credit Score - 100% with 4 alternate tradelines (24 months history) and satisfactory rental history
  • Debt to Income Maximum 42%
  • 2 year employment history
  • 1 month reserves (PITI)
  • Manufactured homes also eligible at lowered LTVs
  • Max Loan Amount - $417,000

We are very pleased to be able to work with our clients to obtain this new concept in financing. It addresses the widespread need for financing assistance to credit-worthy Borrowers who can afford the payments on new home, but may be strapped for cash.

Call us about this program at 598-3200, or, 800 677-MOVE (6683).

 

WHAT'S THE BOTTOM LINE FOR BUYERS AND SELLERS IN OUR CURRENT MARKET?

The fact is that First-Time-Buyers make-up a huge percentage of all home sales. As these First-Time Buyers enter the market, they help to push current Homeowners up the ladder, by providing them with the funds necessary to move up.

This market-dependence on First-time Buyers is demonstrated by the fact that 57% of all home sales are for homes under $200,000 and 82% of all home sales are for homes under $300,000. This data reflects the fact that First-Time Buyers usually buy in at the low end of the market. It also emphasizes the fact that, if a Seller has a home worth more than $300,000, he/she will attract only 18% of prospective Buyers.

So, if you're a Seller in today's market, and your home is priced under $300,000, you should aim at the First-time Buyers.

If, on the other hand, your home is worth more than $300,000, you have to understand that the selling process may take longer than you expected. Give us a call to discuss this.

Here's some good advice for Sellers:

3 Tips for the Home Seller

Sellers are steeling themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready.

For first-time sellers who have never been through the process before, it's a different world. One where the value of the house isn't measured in the profit made on the sale, but by the enjoyment the owners had from living in the home. .and by the opportunity to Sell Low and Buy Low.

Here are three things experienced sellers would tell you, if they could.

Price it realistically from the start

Your largest number of showings will occur in the first two to three weeks. One reason: The multiple listing services and the Internet tend to drive the majority of showings. Many buyers are plugged in electronically. So the minute something new pops up that meets their criteria, they want to see it.

Take advantage of that sweet spot by pricing the house competitively right out of the gate.

Be prepared to lose some money now, but make up for it when you buy

Want to sit with a house that won't move, waiting for what you think your house is worth?  In today's market, the tax assessor's estimate or whatever you paid a few years ago doesn't matter. Be prepared to take less on the sale of your present home, and make up for the loss by getting a great deal on your new, move-up home. Or, you can just hold out for a couple of years, waiting for prices to "come back". But, if you do, be prepared to lose out on the kind of deals you could get today if you bought right now..

As the old ad used to say, "Pay me now, or, pay me later".

The truth is that your house is worth what buyers are willing to pay. No more.

Your best guide will be an experienced Realtor who can show you comparables when setting your asking price. Selling prices, not asking prices should be your guide. Asking prices are simply wish lists. Selling prices are reality. Call us.

Who are you trying to sell to?

You also have to consider who your most likely buyers are for what you're selling and cater to that group of people. Will your prospective Buyer be a 20-something, or a downsizing empty nester?

Here, again, we can help you analyze your neighborhood's current history to help you aim at the appropriate pool of potential Buyers.

Don't forget to smile for the camera

Don't neglect the modern version of curb appeal. Does you home look like a place that Buyers would like to live in? Use lots of photos on your real estate listing's website. You will need a good number of clear, well-lit, professional-quality pictures that show your house at its best.

Finally, if, as a Seller, you are discouraged by the competitive nature of our present market, be consoled by the fact that Colorado Springs is much better off than most other parts of the country. We have consistently outperformed most of the other 153 largest metropolitan area of the country and we are one of the most envied cities in the U.S. Click here to see how we are selling ourselves to the rest of the country.

For Buyers, the bottom line is that the iron is red hot, so strike now. Low-prices, large inventory, great financing packages and wonderful opportunities for Investors make this a true Buyers' market. Let us show you how an investment in today's Colorado Springs' real estate market makes a lot of sense and could well be your transition to a rewarding life now and a foundation for comfortable retirement.

 Call us at 598-3200, or, 800 677-MOVE (6683).

 Remember, today is better than yesterday and tomorrow looks like it will be great.

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 39 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, please contact us.

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

 

JOKE OF THE WEEK

A carpet layer had just finished installing carpet for a lady. He stepped out for a smoke, only to realize he'd lost his cigarettes.

He went back in and in the middle of the room, under the carpet, was a bump. "No sense pulling up the entire floor for one pack of smokes," he said to himself.

He got out his hammer and flattened the hump.

As he was cleaning up, the lady came in. "Here," she said, handing him his pack of cigarettes. "I found them in the hallway."

"Now," she said, "If only I could find my parakeet."