HARRY'S BI-WEEKLY UPDATE 1.9.17
January 9, 2017
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my 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.
HARRY A. SALZMAN, THE real estate THERAPIST
SO, YOU’RE PROBABLY WONDERING….
I have so many titles and designations in the real estate arena that I figured adding one more that really suits me best might be in order. Thus, THE real estate THERAPIST it is!
After all, when I think about the integral function of my special brand of customer service, serving as a sounding board and helping figure out what an individual or family needs in terms of housing is probably the most essential part of my work.
I need to know what makes my clients tick. Do they want to live near schools…in a home or townhome… near downtown or out in the forest? Are they gourmet chefs and need a super kitchen…do they entertain and want an extra large “great room”…or need a large recreational area in the yard? What about an oversized garage for multiple cars or RV’s? Do they work from home and need a quiet home office located away from the hustle and bustle of everyday life?
And what about finding the best financing and taking care of listing their present home if that’s a consideration? Those stresses are ones I handle for my clients so they can better enjoy the process and excitement of moving into a new home.
All of this and so much more goes into play before I begin the search for the best fit for my clients’ needs, wants and budget considerations.
That’s not even taking into consideration what I do for those who relocate, either to or from the Pikes Peak area. As most of you know, that’s a big part of my business and where “therapy” really comes into play. Is there a trailing spouse who may not be so thrilled about the move? Or children that have to be uprooted from their friends and schools? Educating those folks about the many advantages of living in Colorado Springs is especially important and I always take time to fully understand the issues and pressures that go into relocation—be it for an individual or a family.
So while I may not have an accredited degree in Psychology, I think most of you would agree that I play the role of The real estate Therapist with every transaction. Thus, this new addition to my many other titles.
* * * And…once again…Happy New Year to you and yours.* * *
THE LOCAL housing market CONTINUES IT’S UPWARD TREND
December PPAR statistics show the Pikes Peak housing market continuing to perform extraordinarily well and we now have 29 consequent months of year-over-year increased local Residential real estate sales.
Homes are selling at 99.4% of listing price with the average days on the market at 38. This continues to be great news for both buyers and sellers, despite the fact that interest rates have started to rise.
As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 15.6% and 14.7% respectively for year-over-year. And, it’s the second consecutive year setting an annual record in sales. This is fabulous news for local homeowners.
The Monthly Summary shows that compared to a year ago, total active listings are down 28.0% for Single Family/Patio Homes and 25.1% for Condo/Townhomes, continuing a downward trend that tends to favor sellers. New listings are down 1.2% for Single Family/Patio Homes and up 8.3% for Condo/Townhomes. This is reflective of the holiday season and I anticipate new listings to increase along with the rising interest rates. Those who have waited are beginning to realize that they can wait no longer if they want to take advantage of still historically low, but increased interest rates.
Even with new listings down for the month in Single Family/Patio Homes, I’m finding that there are homes available in most neighborhoods and price ranges. The biggest issue is knowing what you need, want and can afford prior to beginning the process of selling to trade up or move to a new location. Most homes do sell quickly so having those decisions made in advance can make a lot of difference if your home sells fast. Pre-approval from your lender is also a requisite in this fast paced market.
If you have been thinking of listing your home, I cannot emphasize strongly enough that NOW is the time.
With interest rates increasing and home equity building at a steady pace, it’s time to make your move either to sell and trade up or buy for the first time or for investment purposes. To get the ball rolling, simply call me at 598.3200 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you, your family members or co-workers.
DECEMBER 2016 WAS THE 29TH STRAIGHT MONTH OF INCREASED LOCAL RESIDENTIAL real estate SALES
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the December 2016 PPAR report. Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.
In comparing December 2016 to December 2015 in PPAR:
Single Family/Patio Homes:
- New Listings are 763, Down 1.2%
- Number of Sales are 1,236 Up 46.7%
- Average Sales Price is $287,294, Up 7.8%
- Median Sales Price is $255,000 Up 6.3%
- Total Active Listings are 1,536, Down 28.0%
Condo/Townhomes:
- New Listings are 104, Up 8.3%
- Number of Sales are 159, Up 0.6%
- Average Sales Price is $190,543, Up 15.8%
- Median Sales Price is $177,000, Up 11.0%
- Total Active Listings are 140, Down 25.1%
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
December 2016 December 2015
Black Forest $455,000 $417,000
Briargate $350,000 $285,000
Central $208,950 $172,000
East $225,000 $207,450
Fountain Valley: $224,300 $215,000
Manitou Springs: $370,500 $307,000
Marksheffel: $311,000 $252,500
Northeast: $250,000 $235,500
Northgate: $422,927 $275,003
Northwest: $335,000 $310,250
Old Colorado City: $236,500 $223,000
Powers: $249,900 $229,000
Southwest: $262,500 $249,000
Tri-Lakes: $445,000 $394,000
West: $250,000 $239,950
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
RENOVATION…WILL YOU GET A RETURN ON YOUR INVESTMENT?
Rismedia, 11.16
One question I get asked over and over is: “How much will a renovation of (fill in the blank) add to the value of my home?”
If you’re looking for a return on investment when upgrading certain items in your home, it’s good to know what to prioritize first. This is especially relevant when selling your home or investment property.
The chart below will give you an idea of the ROI’s for various renovation projects:
SOME ADDITIONAL STATISTICS FOR COLORADO SPRINGS…
#16 in “America’s Hottest Markets for real estate in December”—realtor.com©
#6 in “10 Hottest real estate Markets to Watch in 2017”—Forbes Magazine
HOUSING VALUE IS AT A RECORD HIGH. WILL BUYERS BE ABLE TO KEEP UP?
Rismedia.com, 1.1.17
With housing’s collective value growing to $29.6 trillion last year—a record high reflecting 5.7% appreciation--and marking a full recovery since the crash—there is potential to push more prospective homebuyers to the sidelines.
“Housing is incredibly important to us personally and to the economy as a whole,” said Zillow Chief Economist Dr. Svenja Gudell. “The U.S. housing stock is worth more than ever, which is a sign of the ongoing housing recovery. As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing. The total value of the housing stock grew nearly 6 percent this year (2016), a pace that will likely mean some American families are priced out of homeownership.”
Despite the year’s appreciation, approximately 60 percent of housing markets remain below values reached during the bubble years according to a recently released analysis by Zillow.
Since Colorado Springs was not hit as hard during the housing crash as many other areas, our recovery, along with a 15-year low in foreclosures, has been good; however, if home prices keep accelerating and mortgage interest rates keep rising, this could be a concern for us too.
This is just another reason to call me sooner than later if you’ve been thinking of getting into a new home or looking for investment property. I can help you determine whether this is the right time for you to act on whatever housing thoughts you might have.
COLORADO SPRINGS HOME CONSTRUCTION IS HIGHEST IN 10 YEARS
The Gazette, 1.4.17
Another sign of improvement in the local housing market is marked by the number of permits issued to builders for the construction of single-family homes in the Pikes Peak Region. This past year the pace of new construction was at it’s highest since 2006.
The demand for housing, a stronger economy and the low unemployment rate has builders predicting that the upward trend will continue in 2017 in the Colorado Springs area.
This is one more indicator that our City is thriving. If you are considering new construction, there are options in all price ranges and locations. Simply give me a call and let’s see if there might be something just right for you.
HOUSEHOLD WEALTH RISE TO A RECORD HIGH—FUELED BY real estate AND STOCKS
The Wall Street Journal, 12.16
While incomes for many have stagnated, the wealth of U.S. households climbed to a record $90.2 trillion in the third quarter 2016, driven by a strong buildup in real estate and stocks.
Stocks—directly and through retirement savings accounts such as 401(k)s--climbed by $494 billion in the third quarter while real estate, which is primarily people’s homes, rose in value by $554 billion, according to the Federal Reserve.
I’ve been publishing articles over the past several years that have shown real estate to be a better investment than stocks for many folks. I don’t want to say, “I told you so”, but I told you so.
