February 27, 2012


HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET


BABY BOOMERS MEAN BIG BUSINESS FOR EL PASO COUNTY
The Gazette (Feb. 24th, 2012)

Brent Green, CEO of Brent Green & Associates and an expert in generational marketing, discussed "Marketing to Baby Boomers" this week in Colorado Springs. His message was that El Paso County baby boomers could mean big business for those who figure out how to market and create new products and services for the generation with spending power.

Green was among a group of marketing and economic experts who spoke Friday at the Business of Aging Summit, sponsored by the Greater Colorado Springs Chamber and Economic Development Corps.

“Baby boomers are where the wealth and income are –they spend about $2.3 trillion a year and own about $28 trillion in assets. Colorado Springs had better think about how it will develop around this generation with deep pockets.”, said Green.

The boomer population in El Paso County increased nearly 40 percent from 2000 to 2010. That’s double the increase of the total population, according to a report from Innovations in Aging Collaborative and Tucker Hart Adams, from Summit Economics.

Colorado Springs has the assets to become an international test market and incubator for the “longevity revolution, a global business opportunity,” Green said. Boomers will be in search of lifestyle pursuits, adventure vacations and natural and energy efficient products.

And, 26 million of the boomers will relocate. With Colorado Springs being in the top ten targets for retiring boomers, that’s good news for our local housing market.

The business opportunities are endless, Green said. Sixty-seven percent of boomers believe the best years are still ahead of them. “Billions will be made in helping boomers live on their own,” Green said.

“Those who warn of economic catastrophes due to population aging too often peer into the future through a rear view mirror,” Green said. “I propose that the boomer future is robust with transformative business opportunities.”


WHAT’S GOING ON HERE??? ALONG WITH THE GROUNDHOG, THE OPTIMISTS ARE NOW COMING OUT

It has been a long time since we have read any optimistic predictions about the housing market, but this past week has seen some very upbeat news and articles about the real estate market in 2012. The following is a compilation of some of these optimistic articles:


THE WALL STREET JOURNAL SEES RISING HOME SALES AS A HEALTHY SIGN (WSJ Feb. 23, 2012.)

WASHINGTON—Sales of previously owned homes in the U.S. rose last month to the highest level in nearly two years, and the inventory of unsold homes contracted to a level considered healthy by economists, positive signs for the housing market. Compared with January a year ago, sales rose 0.7%.

"We're slowly improving for the right reasons: more jobs, more credit availability and affordability of homes," said Stuart Hoffman, chief economist with PNC Financial Services Group.

Guy Berger, U.S. economist with RBS Capital Markets, wrote, “It seems that the housing sector may have turned the corner."


FEWER HOME OWNERS BEHIND ON PAYMENTS
Daily real estate News | Tuesday, February 21, 2012

The number of home owners behind on their mortgage payments dropped to the lowest level in three years, according to a report of data from the fourth quarter of 2011 released by the Mortgage Bankers Association.

"Mortgage performance is also improving faster than the overall economy," says Jay Brinkmann, MBA's chief economist.

The lower delinquencies serve as an important sign needed for a healing housing market.


HOUSING INVENTORIES DROP, LIST PRICES RISE
Daily real estate News | Tuesday, February 21, 2012

In a growing number of housing markets, sellers are facing less competition now compared to a year ago.
Inventory of for-sale homes has dropped by about 23 percent compared to this time last year and fell by 6 percent alone from December 2011 to January 2012, according to Realtor.com data.

Meanwhile, as inventory is falling, the median list price has been on the rise: up nationally more than 3 percent year-over-year.

“Over the past year, an increasing number of markets have registered year-over-year increases in median list prices while fewer markets have experienced year-over-year list price declines,” a statement by Realtor.com notes.


HOME SALES ON THE RISE: READY FOR SPRING BUYING SEASON?
Daily real estate News | Thursday, February 23, 2012

Existing-home sales rose 4.3 percent in January to a seasonally adjusted annual rate of 4.57 million, marking the third gain for home sales in the last four months, the National Association of REALTORS® reports.

“The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents,” NAR’s Chief Economist Lawrence Yun says.

While sales ticked up, inventories of for-sale homes also continued to show improvement, NAR reported. At the end of January, total housing inventory fell 0.4 percent to 2.31 million existing homes for sale, which represents a 6.1-month supply at the current sales pace.

Unsold listed inventory has steadily dropped since reaching a peak of 4.04 million in July 2007. It now is 20.6 percent below where it was a year ago, NAR reports.

Housing Affordability Improves

As home prices have fallen and mortgage rates at all-time record lows, housing affordability is at some of its highest levels on record.

“Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” says NAR President Moe Veissi. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”


EXISTING-HOME SALES RISE AGAIN IN JANUARY, INVENTORY DOWN
real estate Trends - February 23, 2012

Existing-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011.

Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent month’s show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals— pent-up household formation, record-low mortgage interest rates, bargains home prices, sustained job creation and rising rents.”

Total housing inventory at the end of January fell 0.4 percent to 2.31 million existing homes available for sale, which represents a 6.1-month supply at the current sales pace, down from a 6.4-month supply in December.

Total unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 20.6 percent below a year ago.

“Home buyers over the past three years have had some of the lowest default rates in history,” Yun says. “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”

In light of all these optimistic reports and predictions, the bottom line for our readers is:

If you are a Seller, you should consider putting your home back on the market as soon as possible. With inventories falling, you won’t have as much competition as you have had in recent years and your home will attract more attention. Keep in mind, however, prices are trending up, so give us a call to help you price your home properly.
Call us at 598-3200 or 800 677-6683(MOVE)

If you are a Buyer, it’s becoming obvious that the home you buy today will be worth more tomorrow, so don’t wait around for lower prices. They probably won’t happen. ….And, the longer you wait, the smaller inventory you will have to choose from.
Call us at 598-3200 or 800 677-6683(MOVE)

 

INVESTORS, TAKE NOTE !!! THE NEW TAX ON SOME INVESTMENT INCOME BEGINS JANUARY 1, 2013

We received a lot of response from our readers about our article in our last Weekly Update concerning the new tax on some investment income. Apparently, this new tax did not receive much publicity in the general media and it took some investors by surprise. So, in case you missed the article, we are reprinting it here:

New tax legislation will affect some real estate income, beginning January 1, 2013. This new tax will affect some, but not all real estate transactions and holdings. Because this is a complicated tax, you should consult with your CPA about its possible effects upon you and your holdings.

Bottom line: If you are planning to sell any investment property, this new tax might affect your decision regarding the timing of the sale. NAR has developed a complete analysis of how the new law might affect you. To see a copy of this informative analysis, CLICK HERE

SALES AND LISTING STATISTICS

The most recent PPAR statistics regarding sales and listings in the Pikes Peak area will provide you with extensive data to assist you with your decision about buying or selling your home. We would be happy to discuss these statistics with you and to review the sales history of the neighborhoods that interests you.. Just call us at 598-3200 or 800 677-6683(MOVE)

Click here to see the most recent statistics.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200, or, 800 877-MOVE (6683).


JOKE OF THE WEEK


THE IMPORTANCE OF WALKING

Walking can add minutes to your life.
This enables you at 85 years old to spend an additional 5 months in a nursing home at $4,000 per month.

My grandpa started walking five miles a day when he was 60.
Now he's 97 years old and we have no idea where the hell he is.

I like long walks, especially when they are taken by people who annoy me.

The only reason I would take up walking is so that I could hear heavy breathing again.

I have to walk early in the morning, before my brain figures out what I'm doing...

I joined a health club last year, spent about 250 bucks. Haven't lost a pound.
Apparently you have to go there!

Every time I hear the dirty word 'exercise', I wash my mouth out with chocolate.

I do have flabby thighs, but fortunately my stomach covers them.

The advantage of exercising every day is so when you die, they'll say,
'Well, he looks good doesn’t he?'

If you are going to try cross-country skiing, start with a small country.

I know I got a lot of exercise the last few years,...... just getting over the hill.

We all get heavier as we get older, because there's a lot more information in our heads.
That's my story and I'm sticking to it.

AND

Every time I start thinking too much about how I look, I just find a bar with a Happy Hour ….
and by the time I leave, I look just fine.

You could run this over to your friends ….But just e-mail it to them …It will save you the walk!

Keep walking! And, have a good laugh