March 5, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

LATEST LOCAL STATISTICS ARE LOOKING GOOD !!

The February PPAR statistics were just released today, and our numbers are looking good. The number of sales in February was up 8.4%, the average sales price went up 3.8% in one month, and the median sales price went up 2.6% in one month. Those numbers indicate that our local market is getting much more active. .

Another indicator that things are getting better is that our inventory of available homes has gone down by over 1000 homes since last year (3224 vs 4315). That’s a 25.3% reduction and a good indication that we are working through the foreclosure problem.

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, LOCAL, NEW-HOME CONSTRUCTION IS UP

The Gazette (March 2, 2012) tells us that last month was the 2nd- best February in 5 years for home building permits. Permits totaled 110 in February in Colorado Springs and El Paso County, according to the Pikes Peak Regional Building Department. That’s up nearly 70% over the same month in 2011. And, for the first two months in 2012, permits totaled 195, a one-third, year-over-year increase.

 

PENDING SALES OF EXISTING HOMES UP TO ALMOST A TWO-YEAR HIGH

RIS Media - March 4, 2012

More Americans are signing contracts to buy existing homes than at any time in nearly two years, boosting the housing industry’s slow recovery, according to the National Association of REALTORS®’ index of pending home sales.

The measure is up 2 percent to 97 in January after slipping 1.9 percent in December. The index of deals for previously owned homes is up 8 percent compared with January of 2011.

Last month saw the highest point on the index since April 2010, when consumers drawn by a home-buyer tax credit pushed the figure to 111.3. That was the last time the measure exceeded 100 — the benchmark for industry health. The REALTORS® group said last week that existing home sales in January were up more than 4 percent to an annual rate of 4.57 million.

Housing experts such as Lawrence Yun, NAR’s chief economist, credit the sliding unemployment rate—which fell in January to its lowest point in three years —as well as a downward trend in home prices and a supply of homes that is at a nearly seven-year low.

“Movements in the index have been uneven, reflecting the head winds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,” Yun says in a statement.

 

HOW IS THE NATIONAL ECONOMY DOING? IT LOOKS LIKE IT IS PICKING UP SPEED

The Gazette (Thursday, March 1, 2012) reports that stronger hiring and higher pay and savings should support solid growth for the economy in coming months, according to a recent report on economic growth from the Commerce department.

The economy grew at a 3% annual rate in the October-December quarter, up from the previous estimate of 2.8%, the Commerce department said.

Economists stressed that the fundamental drivers of the economy – incomes, consumer spending and business investment – are rising.

The unemployment rate has fallen for five straight months. Consumer confidence rose in February to the highest point in a year, which should lead to more spending and faster growth

The Fed said Wednesday that all 12 of its banking districts reported some level of growth in January.

In a related story, The Wall Street Journal (Friday, March 2, 2012) also reported that there are other hopeful signs that the foundation for healthy growth are beginning to take root. Recent job gains have been broader-based and longer-lasting than at other points in the recovery. Household saving is up and the home-building market is showing signs of improvement.

Finally, REALTORMag (Feb. 28, 2012) reports the inventory of new homes on the market shrank to its lowest point on record in January, marking a 5.6 month supply at the current sales pace, according to the Commerce Department. They also noted that new home sales were up 3.5%, compared to the same time last year.

“This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth”, said David Crowe, the National Association of Home Builders chief economist.

“Increasingly, potential buyers are feeling better about their financial situation and their ability to buy a home, but the challenges posed by tight credit conditions and appraisal issues continue to slow that process”, Crowe said.

 

FINALLY, EVEN WARREN BUFFETT SAYS IT’S TIME TO BUY

In his Feb. 25 letter to Berkshire Hathaway Inc., Warren Buffet says. “I’m optimistic again. Housing will come back- you can be sure of that. Every day we are creating more households than housing units. People may postpone getting married during uncertain times, but eventually hormones take over and, while ‘doubling up’ may be the initial reaction during a recession, living with in-laws can quickly lose its allure”

That Warren sure is a romantic son of a gun.

 

BOTTTOM LINE: IT’S TIME TO GET OFF THE FENCE AND BUY THAT NEW HOME

Prices are down ….rates are low …Inventory is beginning to shrink and you’ll never see this kind of opportunity again.

Call us at 598-3200, or, 800 677-6683(MOVE).

 

AND, IF ALL OF THIS DOESN’T PERSUADE YOU, HERE’S ANOTHER REASON TO BUY NOW …FHA WILL SOON RAISE ITS FEES

In an effort to try to recoup some of its depleted reserves, and in an effort to encourage the return of more private capital to the market, FHA announced on Monday, Feb. 27, 2012, that it will soon raise its fees.

Specifically, FHA will increase two fees that borrowers pay. Starting April 1, it will increase its annual mortgage insurance premiums for loans under $625,500, bringing the total cost from 1.15% of the loan amount to 1.25%. Starting June 1, 2012, larger loan premiums will see an increase of 0.35% of a percentage point, bringing the total premium costs up to 1.5% of the loan amount.

FHA also announced it will raise a fee for the upfront mortgage premium by 0.75 of a percentage point, which will now total 1.75% of the loan amount

These new fees will also apply to home owners who want to refinance their mortgages, the agency announced

BOTTOM LINE: Call us at 598-3200, or, 800 677-6683(MOVE) to discuss these fee increases and to discuss how they could affect your home-buying decision.

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.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, please contact us.

 

JOKE OF THE WEEK

On the first day, God created the monkey and said, "Enjoy yourself, entertain people, do tricks, and make them laugh. For this, I'll give you a thirty-year life span." The monkey said, "Monkey tricks for thirty years? That's a pretty long time to perform. How about I give you back twenty?"

And God, again saw that it was good.

On the second day, God created the cow and said, "You must go into the field with the farmer all day long and suffer under the sun, have calves and give milk to support the farmer's family. For this, I will give you a life span of sixty years." The cow said, "That's kind of a tough life you want me to live for sixty years. How about twenty and I'll give back the other forty?" 

And God agreed that it was good.

On the third day, God created the dog and said, "Sit all day on the front porch of your owner’s house and bark at anyone who walks past or tries to come in. For this, I will give you a life span of twenty years." The dog said, "That's a long time to be barking. How about only ten years and I'll give you back the other ten"

And God saw that it was good.

On the fourth day, God created humans and said, "Eat, sleep, play, marry and enjoy your life. For this, I'll give you twenty years." But the human said, "Only twenty years? Could you possibly give me my twenty, the twenty the monkey gave back, the forty the cow gave back and the ten the dog gave back; that makes eighty, okay?"

"Okay," said God, "You asked for it."

So that is why for our first twenty years, we eat, sleep, play and cavort like monkeys. For the next forty years, we slave in the sun to support our family. And for the last ten years, we sit on the front porch and bark at everyone. 

Life has now been explained to you. There is no need to thank me for this valuable information. I'm doing it as a public service. 

If you are looking for me I will be on the front porch.