HARRY'S BI-WEEKLY UPDATE 3.8.2021
March 8, 2021
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.
IF I SOUND LIKE A BROKEN RECORD AT TIMES, IT’S ONLY BECAUSE I WANT TO PUT MORE MONEY IN YOUR POCKET…
As the saying goes, “Time is Money”, and in the case of Residential real estate that could not be more true.
You will see in the monthly statistics below that our local home appreciation is continuing its steady climb, and while it should slow down a bit when we have more available homes for sale, it’s not likely to stop its upward trend.
Mortgage rates, however, are slowing heading up, and while they are still historically low, no one knows how long they will remain at today’s rates.
Put those two things together and voila…there’s no better time than NOW to begin your residential real estate search if you’ve even considered a move or want to buy for the first time or for investment purposes.
Nationally, home ownership is on an upward trend and is likely to remain so for quite some time. This has been driven by a number of factors such as Millennials wanting to settle down and raise families, folks discovering new wants and needs fueled by the current pandemic, and by rental prices rising so high that home ownership becomes a viable option for those who can make that happen.
We in Colorado Springs are witnessing a lot of new business growth, and with that comes relocated employees who are searching for places to live. The arrival of Southwest Airlines who will begin flights out of COS this Wednesday is making it much easier for business and personal travel alike—helping folks avoid the long drive to DIA.
The city’s economic strength is strong thanks to the foresight and planning of Mayor John Suthers and the Colorado Springs City Council as well as Dirk Draper, CEO of the Chamber & EDC and Doug Price, CEO of Visit Colorado Springs, among others. Those of us who live here are fortunate to have those folks working diligently to help our city remain on the “Top 10” lists such as Best Places to Live, Best Places for Small Business, Best Work/Life Balance and many more.
In fact, US News & World Report recently listed Colorado Springs as #4 in the most recent “Best Places to Live in the U.S.”
The rankings were based on 150 metro areas in the United States as to the quality of life and job market in each area, as well as the value of living there and people’s desire to live there.
According to the article:
“Colorado Springs’ construction is booming, with new residences popping up alongside quality schools, parks and cultural attractions. This area, which is filled with natural wonders of its own, has the additional allure of proximity to ski resorts like Aspen and Vail without the associated steep costs of living and high levels of traffic. And even though its quaint downtown might not have big name stores, Denver’s lineup of storefronts is just an hour’s drive away.”
The article went on to say:
“The overall cost of living in Colorado Springs is slightly more expensive compared with the national average, but residents spend slightly less than the average American for groceries, utilities and transportation.”
Rankings such at that, combined with new options of working from home (WFH) are contributing to the influx of folks wanting to relocate here. Let’s face it, if you could choose to live most anywhere, Colorado Springs is pretty close to ideal. We have it all, and like it or not, more and more people are choosing our city as their home as well.
This brings me back to putting more money in your pocket.
Home appreciation is going to continue to rise and the cost of materials such as lumber, cement, copper and aluminum are rising faster than ever which is affecting not only new construction, but existing home renovations as well. Mortgage rates aren’t going to remain historically low forever and rental prices will continue to rise due to the shortage of available homes for sale.
Fortunately for you, I’ve been in the local Residential real estate arena for just about 48 years now and I’ve seen most every cycle imaginable. With a certification in Negotiation and a background in Investment Banking, I can help when it comes to getting you the best deal possible in today’s tough market. And, if I think something really won’t work for your individual situation, I’ll be the first to tell you that, too. I’m in business for long term relationships, not for a quick sale. That’s why I so enjoy selling homes to the children and even grandchildren of former clients who I knew as children!
If you’ve considered a move, your present home is likely worth more than you might imagine, and you can use that equity toward a new home. With the current low mortgage interest rates, you could possibly make that move without adding too much more to your monthly output.
However, you won’t know any of this unless you ask.
And it all starts with a simple phone call to 593.1000 or an email to Harry@HarrySalzman.com to get the ball rolling. Please call me even if you are considering a move…because you won’t know until you talk it through and see it on paper if this is the right time or right decision for your personal situation.
I look forward to speaking with you soon.
And now for statistics…
FEBRUARY 2021
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the February 2021 PPAR report. Remember 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 a very low 15. For condo/townhomes it was 9.
Also in El Paso County, the sales price/list price for single family/patio homes was 102.3% and for condo/townhomes it was 103.1%.
Since this is also year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2020 to 2019.
Please click here to view the detailed 10-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 February 2021 to February 2020 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,349, Up 7.6%
· Number of Sales were 981, Down 0.4%
· Average Sales Price was $454,899, Up 17.6%
· Median Sales Price was $403,000, Up 18.2%
· Total Active Listings are 462, Down 57.4%
· Months Supply is 0.5
Condo/Townhomes:
· New Listings were 193, Down 9.8%
· Number of Sales were 160, Up 9.6%
· Average Sales Price was $300,826, Up 18.2%
· Median Sales Price was $295,050, Up 24.5%
· Total Active Listings are 71, Down 36.6%
· Months Supply is 0.4
Now a look at more statistics…
FEBRUARY 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE 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 El Paso and Teller counties for Residential real estate
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 down 1.3%
- Median Sales Price for All Properties was Up 17.5%
- Active Listings on All Properties were Down 56.6%
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 (and more!)
UCCS College of Business, updated 2.26.21
The UCCS 24th Annual Economic Update was recently published, and I am reproducing just one page here for your perusal. This is the Residential real estate Indicators and as always, I was one of the people contacted for my yearly forecast of the same. Here is that report:
I also just received the most recent economic report from the UCCS Economic Forum. It presents both the big picture of the US as well as our local economic trends. Please click here to see the 5-page report and if you have any questions about either this or the above forecast, please give me a call.
FEDERAL HOUSING FINANCE AGENCY (FHFA) JUST RELEASED THE FOURTH QUARTER 2020 RESULTS…AND COLORADO SPRINGS IS NUMBER 17 OUT OF THE TOP 100
FHFA , 2.23.21
The recently released report shows that U.S. home prices rose 10.8% over the last year and were up 3.8% in the fourth quarter. According to Dr. Lynn Fisher, Deputy Director of FHFA’s Division of Research and Statistics, “House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA House Price Index (HPI).”
“Low mortgage rates, pent up demand from homebuyers and a limited housing supply propelled every region of the country to experience faster growth in 2020 compared to a year ago despite the pandemic. In particular, house prices in western states and cities saw the highest rates of growth, where annual gains often rose above 10%,” she added.
Some of the significant findings include:
- House prices have risen for 38 consecutive quarters, or since September 2011.
- House prices rose in all 50 states and the District of Columbia.
- Of the nine census divisions, the Mountain region experienced the strongest four-quarter appreciation, posting a 13.3% gain between the fourth quarters of 2019 and 2020 and a 4.6% increase in the fourth quarter of 2020.
Colorado Springs was ranked number 17 out of the top 100 cities in the survey. Here is a look at how Colorado Springs performed:
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I apologize for the poor reproduction, but it was the best I could do! Once more, any questions, please give me a call.
COLORADO SPRINGS HOMEBUILDING ON A ROLL
The Gazette, 3.4.21
For the first time since April 2005, single-family homebuilding permits in El Paso County topped the 500-mark last month and there doesn’t appear to be an end in sight.
Some of this is of course due to the lack of available existing homes for sale, however there are numerous reasons—including the new wants and needs that folks discovered they had due to working from home, schooling from home, eating at home more often—and more. Low mortgage interest rates and high rental rates undoubtedly also contributed to this increase.
I’ve helped a number of my clients in recent months with the purchase of newly constructed homes. When it comes to site and elevation selection, as well as finding the best mortgage for each individual situation, I’m the guy to see.
My good working relationship with a number of local homebuilders is of great benefit to my clients—and did I mention that this comes at no additional cost to you? Just one of the many services I provide to help make the entire process as stress free as possible.
If new home construction is in your future, or if you are looking to buy for investment purposes as several clients have recently done…just give me a call. With the cost of building materials rising weekly, the sooner you lock in a price the better.
SO, THERE YOU HAVE IT…
I’ve given you a lot of information that, when considered, should get you thinking of what’s best for you in terms of residential real estate.
As I’ve always said, “Knowledge + Implementation = The Best Rate of Return. And that’s what I get for my clients—The BEST rate of return possible.
If you’re ready to talk, I’m ready to listen…and then to help you make all your residential real estate dreams come true.
FEATURED LISTING:
JUST SOLD MY LAST LISTING. YOURS, HERE? IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.
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