April 6, 2015

 

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.

 

THANK YOU.  I’M HUMBLED BY THE MANY RESPONSES I RECEIVED

I’ve been writing this eNewsletter for around 12 years and often get responses for each issue and I try to respond to each.  That being said, the number of responses and emails I received this past week just blew me away.  I heard from clients and friends, some of whom I haven’t heard from since I sold them a home more than 20 years ago.  It was heartwarming to know that not only did you take the time to write me, but that you also take the time to read the eNewsletter. 

With the move and all that it entailed, I was not able to respond to the hundreds of emails I received so I want to take a minute now to thank you for all your good wishes.  As you might imagine, this was not an easy decision, and knowing that my clients and friends “have my back” and took the time to let me know, made it so much easier. 

I look forward to welcoming you all to my new office and to working with you again in all your Residential real estate needs.  For those of you who missed the article concerning my move last week in The Gazette, you can click here to read it. 

Again, thank you.  And now enough of me, let’s get on with the “news”:

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SPRING IS HERE…AND THE BALL IS IN YOUR COURT…LITERALLY

Baseball season begins this Thursday and as most of you are aware, Salzman real estate Services has four front row season tickets for all Colorado Springs Sky Sox home games.  These are available on a first-come, first-served basis so simply give me a call at 598.3200 or email me at Harry@HarrySalzman.com and get your requests in early.  Most Friday night games are followed by a fireworks display, so it’s a great family evening, compliments of me.

Big changes came with this season.  After 20 plus years of affiliation with the Colorado Rockies, the Sky Sox are now the AAA team affiliated with the Milwaukee Brewers.  This appears to be a great association and we look forward to another record setting season, especially in terms of game attendance.

Spring is also a time of “Residential real estate Frenzy” and this year seems to be starting early as those who have been waiting for either higher prices for their current homes or lower interest rates are finally waking up from hibernation and realizing that this could be the last chance for a great deal. 

I’ve been telling you about the predictions of higher interest rates and it appears that the Federal Reserve is finally going to be addressing this at their June meeting.  No one can predict the outcome.  However, I can predict that historically low interest rates won’t be around by this time next year or maybe even by the summer’s end. 

If you’ve been waiting for the “right” time, I’d suggest you wait no longer.  With fewer listings, it’s a great time to put your present home on the market.  While you won’t have as many choices as last year at this time, we can still help you find the home of your dreams that will fit your needs, wants and budget. 

An added advantage for first time homebuyers with good credit is the 3% down mortgage loans available through Fannie Mae and Freddie Mac.  Parents can also help out with down payments on most of these special loans so potential borrowers don’t have to show large savings deposits. 

I’ve given you my “pitch” and the “ball is in your court”.  Give me a call and let’s see what we can do to make your dreams a reality.  Time is no longer on your side and I’d like to see you take advantage of interest rates that we are not likely to see again for a long time, if ever. 

 

MARCH LOCAL STATISTICS CONTINUE TO SHOW POSITIVE RESULTS IN HOUSING

Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS

According to these statistics it does appear that the Spring Buying season began early again this year. The number of sales are up, the prices are up and homes are being listed, but not in the numbers of several years ago.  Some of that is due to foreclosures going steadily down and the recovery of equity that has helped some people keep their homes or borrow against it for home improvements.

March was the eighth straight monthly increase in sales.  With sales from January through March totaling 2,362, this was the best quarter for any year since 2006.  These numbers reflect stronger consumer confidence along with continued historically low interest rates that many Buyers feel will soon go up and don’t want to miss out on.

Here are some highlights from the monthly PPAR report.  Please click here to view the detailed 13-page report.  If you have any questions, please give me a call.

In comparing March 2015 to March 2014 in PPAR:                      

                        Single Family/Patio Homes:

  • New Listings are 1623, Up 1.8%
  • Number of Sales are 1,009, Up 21.3%
  • Average Sales Price is $259,352, Up 9.3%
  • Median Sales Price is $225,000, Up 7.1%
  • Total Active Listings are 2,538**

                        Condo/Townhomes:

  • New Listings are 176, Down 4.3%
  • Number of Sales are 151, Up 64.1%
  • Average Sales Price is $153,200 , Up 2.4%
  • Median Sales Price is $143,000, Up 10.5%
  • Total Active Listings are 262**

**The Active numbers are real time only.  Due to the Matrixc conversion it is not possible to determine those figures for March 2014.

 

COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*

                                                Median Sales Price             Average Sales Price

Black Forest                            $389,950                              $472,645

Briargate                                  $317,500                             $329,913        

Central                                     $163,000                              $184,024

East                                          $180,000                              $194,499

Fountain Valley:                      $189,900                              $200,860

Manitou Springs:                    $277,000                              $291,666

Marksheffel:                             $268,000                              $271,489

Northeast:                                $215,500                              $236,495

Northgate:                                $354,790                              $391,934          

Northwest:                               $335,000                              $362,496

Old Colorado City:                  $205,000                              $204,503

Powers:                                    $219,950                              $225,854

Southwest:                              $269,500                              $396,468

Tri-Lakes:                                $420,000                              $453,879

West:                                        $214,650                              $233,914

*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.

 

U.S. HOME PRICES CONTINUE TO CLIMB, TIGHT SUPPLY HINDERS SALES

Realtor Mag 3.26.15, The Gazette, 4.1.15

Existing-home sales continued to improve slightly in February but remain constrained by low inventories of homes-for-sale that are pushing price growth to the fastest pace in a year, according to the NAR.

The median U.S. existing-home price for all housing types was $202,600 in February—up 7.5% from a year ago.

“Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsustainable levels,” says Lawrence Yun, NAR’s chief economist.  “Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before (mortgage) rates rise.”

While mortgage rates still hover near historical lows, this is not forever.  “With all indications pointing to a rate increase from the Federal Reserve this year—perhaps as early as this summer—affordability concerns could heighten as home prices and rents both continue to exceed wages,” says Yun. 

An NAR study in March found a widening gap between rent and income growth across the country, which is making it more difficult for renters to become homeowners.

According to David Blitzer, chairman of the index committee for Standard and Poor Dow Jones Indices, “Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback.”

Bottom Line?  Once more I’m going to say it.  If you’ve been waiting...wait no more.  While home prices are higher than they were, interest rates are still low.  You will get more for your present home, probably pay more for your “trade up” home than you might have last year, but hopefully the interest rates will stay low for a bit longer and the increased equity from your present home will help offset the difference.  If you are in the market, give me a call and let’s see how we can turn your dreams into reality when it comes to Residential real estate.

 

FOR HOMEOWNERS, SEVEN TIPS FOR TAX TIME

USA Today, 3.19.15

Homeownership is still one of the best tax “deductions” available to most Americans and with a little knowledge and the right documents to back you up, tax time can quickly move from being a “chore” to being a satisfying benefit thanks to deductions on your annual return.

Here are seven important items for homeowners to note so they can take advantage of the biggest possible return on their home ownership.  As always, I encourage each of you to consult with a tax professional to make certain you get the best advice for your individual situation.

  1. PMI Deduction Survives:  In 2014, it was an open question on whether Congress would extend tax provisions including a deduction for personal mortgage insurance, or PMI.  Thankfully for homeowners, legislators passed a package in December to extend a number of tax breaks—including one for PMI.
  2. Mortgage Interest:  A report from Congress’ Joint Committee on Taxation estimates about $70 billion in mortgage interest deductions annually among American taxpayers.  Make certain your get your fair share—not just because mortgage interest can be substantial, but this tax break alone opens the door for many taxpayers to itemize other smaller breaks instead of settling for the standard deduction.  Simply use Form 1098 if you have paid more then $600 in mortgage interest in the tax year.
  3. Local real estate Taxes:  Many taxpayers overlook the fact that homeowners can deduct local, state and even foreign real estate taxes on their federal returns.  There also may be special property tax benefits for lower-income homeowners based on your state or municipality of residence, so be sure to check into that.
  4. Losses By Weather, Fire or Theft:  Form 4684 is designed to specifically help you in the event of casualties and thefts.  While no one is looking for damage or theft, the IRS grants a break to any property or casualty loss that is more than 10% of your gross income and is not reimbursed by insurance.  Documentation is key to prove both value and the circumstances of what was lost.
  5. Renovations Cut Taxes at Sale Time:  While most renovations you make on your home are not tax-deductible, you might still want to hold on to receipts and documents—most particularly if you are in a hot real estate market or have an expensive property.  That’s because the IRS allows sellers “only” a tax-free profit of $250,000 on a primary residence—but—if you’re above the threshold, you can reduce the tax burden on those real estate gains by proving your investment in the property via renovations and other work.  In simple terms, if you spent $30,000 fixing up a kitchen, then you can make $280,00 from your primary residence and not pay any taxes on that profit.
  6. Selling Costs Count, too:  The commission paid to a real estate Agent, as well as any legal fess and closing costs, is tax deductible.
  7. Don’t Forget Moving Expenses:  If you moved more than 50 miles for a new job and started that job less than one year prior to purchasing a home, you might be able to deduct moving expenses.  Refer to IRS publication 521 for more specifics.

 

NEW ROADBLOCKS TO HOMEBUYING DUE IN AUGUST

Inman.com, 4.4.15

On Aug. 1, 2015, a shift is coming to wreak havoc at the closing table for both real estate Agents and clients alike.

On that date, the new TRID (TILA-RESPA Integrated Disclosure) forms replace the HUD-1 Settlement and Good Faith Estimate. The Consumer Financial Protection Bureau’s mission is to rebuild the mortgage banking landscape so that the industry will avoid the type of conditions that led to the Great Recession. The CFPB replaces the Department of Housing and Urban Development for oversight because HUD did not provide specific consumer protection.

While increasing consumer protection is a desirable goal, the unforeseen ripple effects of these changes could seriously disrupt how the closing process is conducted.

The new rules will require a new three-day waiting period when there are any changes in the TRID forms.  It is recommended that an extra 15 days are allowed to close transactions.  In other words, 30-day contracts will now require 45 days and 60-day contracts will require 75 days.

While in most cases these issues are resolved and the transaction closes the next day, there could be instances where multiple properties are involved and the delay on one’s home closing could delay others from closing, too.

Many other things can be affected, such as a moving van ready to move things in or an interest rate lock that could possible expire.  These are just some of the possibilities and just another good reason why I always suggest you hire an experienced, knowledgeable real estate Professional to help you with your sale. 

We do the homework and can help you avoid the aforementioned situations before they can arise.  As regulations get tougher and tougher, this becomes more and more important.  I keep abreast of all new regulations and do my best to make your home Buying and Selling experience as stress-free as possible.

 

HARRY’S JOKE OF THE DAY  (In the spirit of Easter and Passover)