HARRY'S BI-WEEKLY UPDATE 11.6.19
November 6, 2019
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Unique Brand of Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.
IS IT…
TIME TO SELL AND TRADE UP?
BUY FOR THE FIRST TIME?
CONSIDER PURCHASING AN INVESTMENT PROPERTY?
When it comes to residential real estate there are so many variables in play whenever you decide to get in the game. Mortgage interest rates and housing availability play the greatest roles in most all decisions and as I’ve been saying for some time now, there’s no “normal” anymore.
The shortage of existing homes for sale are causing home values and prices to increase and driving folks to consider new construction, especially here in Colorado Springs. Rental prices are the highest they’ve ever been, and some first-time buyers are being priced out of the market or find they are unable to qualify for a mortgage.
Our booming economy and low unemployment rate, on top of being named “Best Place to Live in the USA” and so many other “bests”, is attracting new business to the area and along with them come transferees. Ridiculously high real estate prices in states such as California and Washington are bringing more “transplants” to our city.
Most all of these newcomers will need a place to live and they are vying for the few properties listed for sale. They are also helping to drive up the prices and multiple offers, all-cash offers and bidding wars continue to be the norm.
One of the reasons our local homebuilding is picking up speed is the lack of existing homes for sale. Low interest rates are also driving folks to new construction. The good news there is that those current homeowners who are looking to build will eventually put their present home on the market, hopefully easing the listing shortage.
Homeowners are currently staying put in their present home longer than ever. Nationwide, homeowners are remaining in their homes typically 13 years, which is five years longer than they did in 2010. Those who don’t trade up to a larger home or downsize when children leave are plugging up the market for those buyers coming behind them. Nationally, inventory of homes for sale is as dismal as it is here. However, our home appreciation has been consistently higher than that of the USA in general, which is a blessing for us local homeowners.
Yes, it is going to cost you more than it might have two or three years ago, but the interest rates are still historically low, which can help to keep your monthly payment more manageable. The longer you wait, the more it’s going to cost you.
There are still homes available in most price ranges, but they go quickly—especially at the lower end of the spectrum. Investors are still picking up homes whenever they can since there are more and more renters—either by choice or by necessity—and rental rates keep rising.
Residential real estate is a tough game to play these days and those who choose to play solo are going to get lost in the dust. It’s more important than ever to have a seasoned, knowledgeable real estate professional by your side. Sure, you can buy “on-line” but without an advocate you trust, “let the buyer beware”, as they say.
I’ve been in the local real estate arena for more than 46 years and have seen as many cycles are you can imagine. I know the “ins and outs” of them all and more importantly I know how to expertly negotiate so that you can get the home that best fits your wants, needs and budget. It’s vital to answer those, and many other questions BEFORE you start to look because once you are actively looking, it’s too late.
In today’s market you sometimes have to make a decision even before you set foot in the home. I’ve had that several times in recent months with clients who missed out on previous offers and didn’t want to miss another one. Risky? You bet. But when you’ve got me on your side, it negates a lot of the risk. I know what’s out there as I’ve been around long enough to have seen a good number of the homes in this city being built. Good school district? Good neighborhood? One that meets the needs of your family? I can help you answer those questions and more.
If new construction turns out to be what you want or need, I’m your man there too. I have a good working relationship with most of the area builders and can help you with site, home and builder selection, as well as help you secure the best financing for your individual situation. And did I mention? All of this is provided at NO ADDITIONAL COST TO YOU.
There’s no better time than now to at least get answers to all the residential real estate questions you’ve had over the last few months or years. I can help you with that, and if I don’t know something, I DO know where to get the answers. That’s just another plus for you.
Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com today and let’s see how we can work together to make your real estate dreams come true.
OCTOBER 2019 BROUGHT GAINS IN HOME VALUES AND A SLIGHTLY INCREASED NUMBER OF SALES
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the October 2019 PPAR report. Just a reminder that the new format of this report no longer provides monthly statistics for each individual neighborhood. However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.
In El Paso County, the average days on the market for single family/patio homes was 29. For condo/townhomes is was 17.
The sales price/list price for single family/patio homes was 99.4% and for condo/townhomes was 99.7%.
You can again see from those statistics that buying a home in today’s seller’s market is not as easy as in the past, but with me on your side you’ve got a considerably better than average shot at it.
Please click here to view the detailed 9-page report, including charts. If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.
In comparing October 2019 to October 2018 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings are 1,467, Up 8.7%
· Number of Sales are 1,448, Up 9.7%
· Average Sales Price is $372,037, Up 7.6%
· Median Sales Price is $335,000, Up 9.8%
· Total Active Listings are 1,940, Down 18.3%
· Months Supply is 1.3
Condo/Townhomes:
· New Listings are 192, Down 9.9%
· Number of Sales are 209, Down 3.2%
· Average Sales Price is $257,005, Up 12.0%
· Median Sales Price is $230,000, Up 8.9%
· Total Active Listings are 188, Down 4.1%
· Months Supply is 0.9
Now a look at more statistics…
OCTOBER 2019 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR LOCAL TRENDS IN DETAIL
Colorado Association of REALTORS® , Pikes Peak REALTORS Service Corp, or it’s PPMLS
Providing greater detail than the above report, this contains information on both Colorado Springs and Teller counties for residential real estate.
It is broken down by geographical areas and you can look to see how your neighborhood is doing in terms of sales, prices, and more.
The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:
- Sold Listings for All Properties were Up 4.1%
- Median Sales Price for All Properties was Up 9.7%
- Active Listings on All Properties were Down 26.2%
You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:
UCCS ECONOMIC FORUM DASHBOARD
UCCS Economic Forum, College of Business, updated 10.31.19
Here are the just published statistics for national and local economy, employment, real estate and much more from the UCCS Economic Forum. Click here for the charts and if you have any questions, just give me a holler.
housing market REMAINS STRONG WHILE ECONOMIC SLOWDOWN LOOMS
Freddie Mac.com, 10.31.19
In September 2019, the unemployment rate was 3.5% nationally, the lowest rate since December 1969. While there appears to be a weakening in the manufacturing segment, the housing market remains on solid ground with housing starts, building permits, existing home sales and new home sales all significantly outperforming consensus expectations in August.
Freddie Mac forecasts that the 30-year mortgage rates will be 3.7% for the remainder of 2019 and will tick up slightly to 3.8% in 2020. They also forecast the market to remain firm with sales rising to 6.0 million for 2019 before increasing to 6.1 million for 2020. Home prices are predicted to increase 3.3% and 2.8% in 2019 and 2020 respectively.
As I mentioned earlier, the Colorado Springs area has consistently fared higher than national statistics and I expect that trend to continue into 2020.
So once more….NOW is the time to make the move you’ve been considering!
real estate TRENDS FOR 2020
Rismedia.com, 10.19
No one can be certain where 2020 is going to take the housing market, but here are some projections to help you get an idea of what you might expect.
Generational Communities
Baby boomers and millennials are causing shifts in the market, especially when looking at the types of housing. To begin with, baby boomers are reaching retirement age. In fact, according to a study by Harvard’s Joint Center for Housing Studies, in 2020, one out of three households will be headed by someone over 65. While some are downsizing, many seniors may opt for active living communities, including upscale apartments.
Millennials are now becoming parents and many young families will be looking for housing in what is dubbed “Hipsturbia”. These are suburbs that are evolving on the outskirts of large cities and often consist of a more diverse community. They are more pedestrian-friendly, as they promote public transit and keeping stores in close proximity.
Technology
Smart home technology is becoming more popular as new devices are released. While this was slow to break through, it is gaining traction in popularity. At the moment, security and energy management are still the top uses for smart home devices, but convenience is also a rising consideration. The expansion of demand for tech friendly homes could affect buyers’ interest in a home as well as increase property values in 2020.
Affordability
As I mentioned earlier, there has been a steady rise in rent and home prices. For minimum wage workers, fair market rent for one-bedroom rentals in 99% of counties in the USA is not affordable, according to the National Low Income Housing Coalition. This could possibly result in a drop in first-time buyers or even renters, as both millennials and Generatiion Z struggle to make ends meet.
The luxury home market saw its challenges in 2019 but 2020 may be a turning point as the market recently saw its first gain since 2010.
However, while rising home costs may prevent some from buying or selling in 2020, lower mortgage rates may enable others to reach their housing goals. Rates are now lower than they were a year ago. So, again, if you’ve been thinking of getting in the market, NOW is a great time.
