December 20, 2018 



         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.


This has been another busy December, which, in the “old days”, would be considered unusual.  Today, it’s becoming the norm.  I’m certain that a lot of it is due to the inevitable rise in mortgage interest rates along with the swift increase in the median home prices locally.  

It’s been a great time to both buy and sell, but it’s been especially great for investors because the number of renters is starting to increase again along with the rates and prices. The volatile stock market is another reason that investors are flocking to purchase homes, as their return on investment, along with monthly income, provides the security they seek.  While there aren’t as many “bargains” as in the not so recent past, there are still a number of properties that are perfect for investors. If you’ve even considered real estate as an investment, give me a call and we can discuss whether or not this is a viable option for you.  And, as always, be sure to talk to your tax advisor also to see what he or she has to say about this possibility.

I was listening to a recent videocast the other day concerning the current state of residential real estate and was surprised at some of the things that were said.  The most amazing was that 73% of all Realtors nationwide were not involved in selling real estate when the mortgage interest rates were above 5%.

This translates to the fact that only 27% of us residential real estate professionals are able to understand what the current trend can mean to potential buyers,sellers and investors. I’ve been in the local real estate arena for more than 46 years and have seen 30-year fixed-rates go as high as 20% and recently as low as 2.75%.  My expertise is especially important with an upward trend in rates as my negotiation skills and special brand of customer service come into play even more during these times.  It’s not terribly difficult for agents to buy and sell homes in a fast-moving market, but when things slow down, as they are beginning to do, that’s when experience and expert knowledge come into play.  

And when it comes to experience and expertise—I’m your man!  Give me a call and let’s discuss how I can put this to use for YOU.

I can be reached at 593.1000 or by email at and welcome talking to you, your co-workers, family and friends.  It’s worth the to find out how to maximize your Residential real estate investment and I’m always happy to be of help. 



Pikes Peak REALTORS®Services Corp., 

These reports contain much greater detail than the first-of-the-month reports I share and cover ALL residential areas in the Pikes Peak Region. 

     The “Activity Snapshot”shows the Year to Date one-year change:

  • Sold Listings for All Properties were down 9.9%
  • Median Sales Price for All Properties was up 5.5%
  • Active Listings on All Properties were up 16.8%.

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the neighborhood of your choice from the 34-page Local Market Update. I recommend that you check out your own neighborhood, or one that you are considering, to get a good idea of the local pulse. I have reprinted just one neighborhood, West, below to show you the type of information available for all local areas.

For questions about any of these reports or just to find out how I can put my special brand of customer service to work for you, please give me a call.



Keeping current matters, 12.4.18

The Federal Reserve conducts their Survey of Consumer Finances every three years and they collect data across all economic and social groups.  Their latest survey data covers responses from 2013-2016.

This study revealed that the median net worth of a homeowner was $231,400—a 15% increase since 2013.  At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

This indicates that the net worth of a homeowner is over 44 times greater than that of a renter.

Many who see that statistic point toward how broad the range of respondents are for the Federal Reserve study since the study includes all economic and social groups and also includes all age groups.  Their argument is that older respondents have a higher likelihood of being homeowners, while the homeownership rate among younger survey takers is much lower.

However, a recent report from the Joint Center for Housing Studies at Harvard University focused on homeowners and renters over the age of 65. This study revealed that the difference in net worth between homeowners and renters at this age group (65+) was actually 47.5 times greater!

Homeowners over the age of 65 are much more financially prepared for retirement and often own their homes outright if they were fortunate enough to purchase their homes before the age of 36.   Their 30 years of mortgage payments have paid off as they gained equity through their monthly payments and as home values appreciated.

It should come as no surprise that lifelong renters have had a difficult time accruing net worth as the latest Census Report shows that the Median Asking Rent has been climbing consistently over the last 30 years.


Bottom Line: 

As a homeowner, no matter your age, you put your monthly mortgage payment to work for you—not someone else—and thus are building your net worth with every payment.



Realtor Mag, 12.14.18

Potential buyers and refinancers saw a little relief in borrowing costs last week as the 30-year fixed-rate mortgage moved to its lowest average since mid-September, according to a report from Freddie Mac.

“Mortgage rates have either fallen or remained flat for five consecutive weeks and purchase applicants are responding with an uptick in demand given these lower rates,” says Sam Khater, Freddie Mac’s chief economist. “While the housing market softened in response to higher rates through most of this year, the combination of a low unemployment and recent downdraft in rates should support home sales heading into the early winter months.”

What does this mean to you? Well, as buyers, sellers or investors, you now have a window of opportunity to take advantage of these still historically low rates.  With the Federal Reserve increasing rates again this week, I’m guessing it won’t’ take long for rates to start back up.  This is possibly the “last hurrah” for lower rates, so if you are even thinking of buying, selling or investing—don’t delay. Call me and let’s see how to make this opportunity work for you.



Keeping current matters, 12.5.18

Since the interest rate you pay on a home mortgage has a direct impact on your monthly payment, the higher the rate, the greater the payment will be.  That’s why it is important to know where rates are headed when deciding to start your home search and as I just mentioned, why NOW is the time to get serious before rates go up.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook.  As you can see, interest rates are projected to increase steadily throughout 2019:

Depending on the amount of the mortgage loan you secure, a half a percent (.5%) increase in interest rate can increase your monthly payment significantly.

This chart takes a look at a historical view of interest rates over the last 45 years.

Basically, what you need to realize is that the prediction of higher interest rates should not stop you from purchasing your dream home.  As you see above, you can be thankful that you can still get a much better interest rate than your parents or others did twenty years ago, and most certainly a better rate than your grandparents did 40 years ago.