HARRY'S BI-WEEKLY UPDATE 8.17.15
August 17, 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.
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LATEST QUARTERLY NATIONAL COMPARISON SHOWS LOCAL MEDIAN HOME PRICES ARE WAY UP
National Association of REALTORS, 8.11.15
Home sales are up and supply is down and this has caused homes to steadily rise in most metro areas of the U.S.A. While this is good news for almost all areas of the country, it’s even better news for Colorado Springs as our median sales price is 20% better than the average median sales price of the 176 areas that are tracked by NAR.
As most of you are aware, I publish these results each quarter as soon as they become available and for a little while Colorado Springs did not seem to be keeping up with the average of other surveyed metro areas. That changed significantly this past quarter and local median sales prices increased by 10% over the previous quarter to $244,800. The percentage change for the total measured areas total was 8.2% for an average median sales price of $229,400. I actually can’t remember when our statistics were that much better than the average median sales price nationally so this is exciting news for us all.
To view the entire list of 176 metro areas, please click here.
Lawrence Yun, NAR chief economist, says the housing market has shifted into a higher gear in recent months. “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” he said. “While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”
“With home prices and rents continuing to rise and wages showing only modest growth, declining affordability remains a hurdle for renters considering homeownership—especially in higher-priced markets.,’ he added.
This is great news for homeowners, especially those who found themselves “underwater” during the recent recession and couldn’t act sooner. “The ongoing rise in home values in recent years has greatly benefited homeowners by increasing their household wealth,” says Yun. “In the meantime, inequality is growing in America because the downward trend in homeownership rate means these equity gains are going to fewer households.”
My personal experience in recent months has been that fewer homes on the market has resulted in quicker sales and a very high sales to list price ratio. Yes, folks, as I’ve been saying--it’s no longer a Buyer’s Market. Some Sellers are finding themselves with multiple offers and are receiving pretty close to asking price these days. In some cases, Sellers are getting more than asking price.
What does this mean to you? Well, more than likely the equity in your present home has increased, giving you the ability to sell and trade up or relocate to another neighborhood. This also means the home you might be considering has also increased in price. The good news at the moment is that mortgage loan interest rates are still low and this could be the last time we see this for a very long time. Even with the shortage of available homes, I’ve found that most Buyers can find something in almost every neighborhood of their choosing.
If you’ve been considering a move or waiting for the “right” time..NOW is probably the best time to consider all your options. Prices are continuing to rise and pretty soon interest rates will also be on the upswing.
With escalating rental rates, investment properties are still a good option for those in the market, but I wouldn’t advise waiting too long as home prices are rising steadily and there are not as many “bargains” as in the recent past.
Why not give me a call at 598.3200 or email me at Harry@HarrySalzman.com and let’s see what we can come up with that works for your wants, needs and budget?
‘JUMBO’ LOAN TERMS EASED
The Wall Street Journal,, 8.5.15, Housing Wire, 8.6.15
The “big” guys, such as J.P. Morgan Chase & Co., as well as Bank of American Corp and Wells Fargo & Co. have set the pace for easing terms on ‘Jumbo’ loans—those mortgage loans that exceed $417,000 in most parts of the country and $625,500 in pricier markets.
These financial institutions have lowered the FICO credit score requirements, to as low as a minimum of 680 for as little as 15% down payment requirement, depending on the lender.
The jumbo market has recovered as much or more than any other sector of the mortgage market because lenders have more flexibility to change criteria since they generally hold these loans on their own books rather than sell them. Smaller home loans are often sold to Fannie Mae and Freddie Mac and have to conform to the criteria of those mortgage giants.
Chase adjusted its jumbo loan requirements to make the homebuying process easier as part of a firm-wide simplification process and has also rolled out easy to understand guidelines for primary and second-home loans, as well as investment properties and cash-out finance loans. This is so that “homebuyers can easily understand the benefits of financing with Chase”, according to Steve Hemperly, head of mortgage loan originations there.
As soon as these terms were made public, I notified several clients who had been looking at other financing for their ‘jumbo’ loans. Chase offered at least one of them a 30-year-fixed-rate loan for 3.75%. That’s just part of the service I provide my clients. With my eye on the financial markets at all times, my investment banking background has often come in handy when it comes to making certain that all my clients are getting the very best mortgage loan available for their individual situation.
13 TIPS TO MAKE MOVING SLIGHTLY LESS HORRIBLE…or How To Escape With at Least a Shred of Dignity
citylab, 8.14.15
Moving anywhere is a hassle and often makes us wonder what we were thinking when we bought all those books, DVDs, or collections or anything. And the proliferation of boxes, wrapping paper and tape, not to mention the wear and tear on bodies!
While it is NEVER fun, moving is a great time to start over and purge stuff you no longer need, as well as look forward to your new living environment, be it a first home, new home or rental.
Some experts have provided suggestions on how to prevent moving from becoming the worst day of your life. For those who are moving pros, you might pick up a few pointers. For those moving for the first time, this advice is invaluable. Here goes:
Before You Start
- Photograph your cords. Take photos or make notes on how all of your media equipment is set up: television, sound equipment, modems and computer equipment. Keeping tabs on the cords will help you get connected quickly in your new place.
- Change your address. Doing this a week or two in advance will help ensure that you get important items, such as bills, and don’t have a lag in services that are tied to a mailing address associated with a credit card (like Netflix or Seamless).
- Set up utilities. You don’t have to wait until you’re settled in to make arrangements for the wi-fi or gas. Once you know your move-in date, call ahead and schedule whatever you will need.
- Make a plan for your pets. Moving is stressful for animals, too. Consider making arrangements to leave your pet with a friend or boarding service in order to keep them calm and prevent them from accidentally slipping out a propped-open door.
- Schedule touch-up paint. This is especially important for renters who might be responsible for a new paint job according to the terms of their lease. Waiting for the last minute could be a logistical nightmare if you no longer have possession of the keys.
- Ask for help. If you’re not hiring a moving company, enlist friends for family and be sure to repay them with money or lots and lots of snacks.
Packing
- Designate a “first night” box. You can plan on being exhausted once you get moved in and putting all your essentials such as a toothbrush, change of clothes, medications, etc. in a separate box can make it much easier.
- Start with the stuff you use least often. This will help you in deciding whether or not those things are really “essential” or should be donated or thrown away.
- Use suitcases wisely. As long as they have to moved, you might as well fill them with stuff. Large suitcases are great for lightweight, non-breakable items—such as clothes or bedding.
- Separate cleaning supplies. You will want to unload your things onto clean surfaces, so instead of tossing cleaners in with the rest of the bathroom or kitchen supplies, put them in a separate box so that you can wipe off any crud on the counters or shelves prior to unpacking.
- Don’t stow your important documents. Be sure to put your birth certificate, passport, and other important papers in a separate folder and keep them with you.
Unpacking
- Put up a schematic for furniture. Tape up photos or signs indicating where your couch, coffee table, and other big items should go. This will help the movers figure out approximately where you want things positioned.
- Save your receipts. In some cases, moving expenses are deductible from federal income taxes. If you’re moving due to a change in employment you may be able to claim this deduction even if you do not itemize. To maximum these deductions, keep track of all costs incurred during the moving process and consult your tax attorney for advice.
HARRY’S JOKES OF THE DAY
Why don't real estate agents read novels?
Because the only numbers in them are page numbers.
Why do appraisers carry a wasp in their hand?
Value is in the eye of the bee holder.
What's the difference between a real estate agent and an accountant?
The accountant knows he is boring.
What is the study of real estate?
Homology
Why didn't the hipster real estate agent show the ocean-side mansion?
It was too current.
What's a mortgage broker?
A real estate agent without the sense of humor.
What is the definition of a good real estate agent?
Someone who has a mortgage loophole named after him.
Salesman: This computer will cut your workload by 50%.
Property Manager: That's great, I'll take two of them.
