Real Estate Information

November 25, 2023

 

 

 

HARRY’S THANKSGIVING GREETING

 

 

 

Wishing you and yours a happy, safe, and plentiful Thanksgiving holiday…

 

 

 

 

 

 

November 22, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

LOOKING AHEAD TO A BRIGHTER 2025 housing market

 

The Residential real estate Market has seen a lot of volatility over the last several years with both buyers and sellers skeptical of “what’s to come”.  

Now is the time of year when I begin to look ahead to develop my “Market Wisdom” for the coming year. I use my 51 plus years in the local housing arena coupled with my investment banking background and the predictions of real estate economists to come up with what I consider to be a realistic picture of the year ahead.

I see our market moving in a positive direction with mortgage rates falling, more homes coming into the market, total home sales to rise and prices to increase at a more reasonable rate than that of several years ago.

This will help with housing affordability for those who were priced out of the market as well as provide better choices for those who have been waiting to sell to trade-up or move to a new neighborhood or out of state.

Existing-home sales across the country ticked up in October compared to the same time last year due to the short-lived drop in mortgage rates.  This was the first year-over-year increase in sales since 2021.

According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), “People are accepting that the mortgage rates, the new normal, are not going to be 3% or 4% or 5%.”  

“We’ve seen after presidential elections—and it doesn’t matter who wins—that there’s usually a slight boost in home sales.  It removes some of the uncertainty.  Now you know it’s the policy (of President-elect Trump) and you can make predictions about what will happen and make a decision on that,” he added.

 

Home Sales to Rise

With the improving job numbers and recent gains in the stock market, Yun predicted that more Americans may be motivated to act.  He predicts an uptick of nearly 2 million jobs for 2025 and another nearly 2 million increase in 2026, which could bode well for the housing market nationally. (and here, too, as well)

“2023 and 2024 were both difficult years in the housing market,” Yun said.  But with the 3% year-over-year gain in September and the October year-over-year increase I mentioned earlier, Yun indicated that “maybe the worse is over”.  

 

Here is Yun’s forecast over the next two years:

 

• 2025 Sales Projection:  Existing-home sales to rise 9% year-over-year; New home sales to jump by 11%.

 

• 2026 Sales Projection:  Existing-home sales to rise 13% year-over-year; New home sales to increase by 8%.

 

Mortgage Rates to Moderate

Obviously, mortgage rates have had a bearing on how the housing market has fared.

According to Freddie Mac, the average 30-year fixed-rate mortgage has ranged from 6.08% to 7.44% over the past 52 weeks.  Yun says the rates should stabilize at the low end of that range for 2025 and 2026.

Yun said that the “locked-in” effect of homeowners feeling stuck-in-place with 2% or 3% mortgage rates from recent years will lessen over time.  

 

Home Prices Increase Slowly After Rapid Rises

As I mentioned earlier, home prices are going to continue to rise, although at a more “normalized” rate.

Yun’s forecast (this is national…and Colorado Springs normally tends to have greater home values and increases than the U.S. average):

 

• 2025 Median Home Price:  $410,700, up 2% over 2024.

 

• 2026 Median Home Price:  $420,000, up 2% over 2025.

 

A Different Type of Buyer

From a newly released NAR  2024 Profile of Home Buyers and Sellers:

 

• More buyers are skipping the mortgage.  Due to the sizable housing equity gains many owners have experienced, all-cash buyers have surged to record highs, accounting for 26% of home sales over the past year. Thirty-one percent of repeat buyers paid all-cash for their next home purchase.

 

 

• First-time buyers are getting older.  The median age of a first-time buyer was 38—an all-time high.  According to the survey, “They are having to save for a longer period of time or maybe wait for the ‘bank of mom and dad’ to give them the funds to buy” . Twenty-five percent of first-time buyers used a gift or loan from a relative or friend for their home purchase; 20% took money out of financial assets like stocks, 401ks or cryptocurrency to afford homeownership; and 7% used inheritance money for their purchase—a record high.  First-time buyers are coming up with the highest down payments in nearly 30 years—at 9%--in order to afford the higher home prices.

 

 

• The allure of cities grows.  The pandemic may have unleashed a trend of suburban movers, but people are not heading back to city centers—the largest uptick in a decade, according to the study.

 

 

• More buyers are pooling their money.  The number of multigenerational households surged to an all-time high of 17% over the last year.  According to the survey, “The number one reason is for cost savings.  They’re combining incomes in order to afford homeownership.”  They’re also buying a multigenerational home to take care of aging parents because of young adults moving back home.

 

• Single women buyers continue to outpace single men buyers.  A drop in marriage rates has triggered more consumers to enter the housing market on their own.  Single women held a 24% share of the home-purchase market over the past year.  For single men it was 11%.

 

So, folks, there you have it.  Both my predictions and those of Lawrence Yun as well as information from the NAR study.

I also look at what’s happening specifically in the Colorado Springs area and there appears to be a lot of good news there as well.

We keep seeing companies wanting to expand their workforce as well as new companies wanting to relocate here.  With that comes a great need for housing and no matter how you look at it—buying is preferable to renting when it comes to amassing wealth.  Folks who are able will find a way to purchase a home if at all possible.

Our fabulous work/life balance makes Colorado Springs a very desirable place to live as those of us who already live here know.  

I for one wish they would leave their cars elsewhere as the traffic sure has gotten worse in recent years, but in comparison to most other large communities, we’ve got nothing to complain about.  

 

It’s not too early to start implementing a plan for your 2025 buying or selling needs and the sooner we start talking, the sooner you will have that plan ready and you’ll be that much further ahead of those who wait.

I look forward to meeting with you sooner than later because…Time is of the Essence… or “the early bird gets the worm” as they say.  

In this case, the early bird gets the opportunity to grow their personal assets first.  I like to see my clients get a jump on the rest as I know the excellent opportunities of which they can avail themselves.

 

Give me a call today at 719.593.1000 or email me at Harry@HarrySalzman.com and together let’s see how your Residential real estate dreams can become reality in the best time frame for you.

 

And, if you’ve got two minutes and 14 seconds, check out my new and improved video podcast 

                                                            

Click on the link below and you will be directed to my personal YouTube channel.

 

https://youtu.be/HoQKABwbQYg

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!)

 

November 8, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

GREETINGS FROM A SNOWED-IN COLORADO SPRINGS…

 

When I trudged down the driveway to get the mail today, I turned and saw our metal flag buried high in the snow—the top normally reaches my shoulders!!  

As I looked at it I was thinking how much has changed in the last couple of days.  Some are thrilled, some not so much, but I think we can all agree that as Americans it will be nice to hopefully get back to a less contentious time.

I was also thinking how quickly the lovely fall weather turned into a major snowstorm that disrupted travel and plans for lots of folks.  That too will change soon, and we Coloradans can get back to enjoying our great outdoors without freezing and too much snow.

There are lots of statistics to share so I will get to them quickly.  I am confident that the housing market will soon be seeing a lot more action as mortgage rates go down and more homes come on the market.

Things have been slow these last few months, both here and nationally.  In fact, home sales for 2024 are on track for the worst year since 1995—hitting their lowest point in 30 years last month.  Most of that is attributable to the higher mortgage rates, a shortage of available homes for sale and folks waiting for  results of the presidential election.  Many national economists seem hopeful that 2025 will see lower rates which should make homes more affordable for most and we are starting to see more home listings and sales locally.

But no matter what, the slower sales have NOT much affected home values which keep rising here and, in most U.S. major metro areas, as you will see below.  What that means is that homes are NOT going to get any cheaper.  Buying today and refinancing later could be an option, especially considering it’s likely that the home you purchase will be earning equity in the meantime, thus increasing your net wealth.

In my more than 51 years in the local Residential real estate arena I’ve seen most every cycle imaginable, and this is just one of many.  Yes, homes were probably averaging $30,000 or less when I got started, but then I’ve also seen mortgage interest rates as high as 18%. So, like they say…it’s all relative.

All in all, as I perpetually contend, there will always be those who want or need to sell and those who need or want to buy.  And I’ve been here through the years to help them get the very best for their individual wants, needs and budget requirements.  

My investment banking background has been quite helpful in insuring that my clients are able to find the best lending opportunities and I’m proud of the fact that I am now working with not only children, but also grandchildren of some original clients.  That’s such a wonderful full circle thing for me and I never take it for granted.

 

So, without further ado…. here comes lots of statistics.

As always, if you have any questions or just want to chat about the possibilities available for you and your family, you can reach me at 719.593.1000 or email me at Harry@HarrySalzman.com.  I look forward to speaking with you soon.

 

OCTOBER 2024

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

Here are some highlights from the October 2024 PPAR report.  You might note that while homes are selling at close to asking price as in the past several months, the days on the market are a tad longer.  I expect both to change if interest rates go down more.

 

In El Paso County, the average days on the market for single family/patio homes was 40.  For condo/townhomes it was 57.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 98.0% and for condo/townhomes it was 98.9%.  

 

In Teller County, the average days on the market for single family/patio homes was 66 and the sales/list price was 98.0%.

 

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 October 2024 to October 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,408, Up 18.8%

·       Number of Sales were 998, Up 17.3%

·       Average Sales Price was $557,741, Up 0.1%

·       Median Sales Price was $475,000, Down 2.1%

·       Total Active Listings are 3,394, Up 35.5%

·       Months Supply is 3.4, Down 2.1%

 

 

Condo/Townhomes:

·       New Listings were 198, Up 7.0% 

·       Number of Sales were 159, Up 24.2%

·       Average Sales Price was $353,312, Down 5.3%

·       Median Sales Price was $335,000, Down 4.3%

·       Total Active Listings are 640, Up 69.3%

·       Months Supply is 4.0, Up 2.9%

 

 

OCTOBER 2024 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 were Up 21.4%

 

• Median Sales Price for All Properties was Down 2.4%

 

• Active Listings on All Properties were Up 30.1%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

COLORADO SPRINGS HOME PRICES CONTINUE TO RISE IN THIRD QUARTER 2024

The National Association of Realtors, 11.7.24

In the just released report from the National Association of Realtors (NAR), single-family, existing-home prices grew in 87% of measured metro areas.  This is down from 89% the previous quarter.

According to Lawrence Yun, chief economist for NAR:

“Home prices remain on solid ground as reflected by the vast number of markets experiencing gains.  A typical homeowner accumulated $147,000 in housing wealth in the last five years.  Even with the rapid price appreciation over the last few years, the likelihood of a market crash is minimal.  Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows.”

Compared to one year ago, the national median single-family existing-home price climbed 3.1% to $418,700.  In the prior quarter, the year-over-year national median price increased 4.9%.

The median price of single-family homes in Colorado Springs rose 1.5% to $473,200 compared to one year ago per NAR.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 49^th highest of the 226 cities surveyed.  

Housing affordability slightly improved in the third quarter as mortgage rates trended lower.  The monthly payment (nationally) on a typical existing single-family home with a 20% down payment was $2,137, down 5.5% from the second quarter ($2,262) and 2.4% - or $52 – from one year ago.  Families typically spent 25.2% of their income on mortgage payments, down from 26.9% in the prior quarter and 27.1% one year ago.

“Housing affordability has been a challenge, but the worst appears to be over, Yun said.  “Rising wages are outpacing home price increases.  Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels.  More inventory is reaching the market and providing additional options for consumers.”

To see all 226 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  Or click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

If you have any questions, please give me a call.

 

ERA SHIELDS STAT PACK

Data through October 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, October 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD   

UCCS College of Business/Economic Forum, Updated October 2024

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr. Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here. 

 

October 23, 2024

 

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

THE QUESTIONS KEEP ON COMING…… My Answers Remain the Same. 

 

Is now a good time to buy or sell?

 

What’s going to happen with mortgage rates?

 

Should I wait until next year?

 

Well, I don’t have a crystal ball, but I can give answers based on my 51 plus years in the local Residential real estate arena coupled with my background in Investment Banking.

It’s always a good time to buy and sell depending on your individual situation.  As I’ve said time and again, there are always those who want or need to buy and those who want or need to sell.  That’s been true for my entire career and will likely hold true for years to come.

What also has held true, most especially in the Colorado Springs area is that home prices are not likely to go down and ARE likely to continue to rise.  Each month you don’t buy you are likely losing equity and thus losing greater wealth for you and your family.

As you will see later in this eNewsletter, more folks here and nationally are entering the market at a time that is normally slower than in the spring and summer months.

Why is that?  I’ve explained it below but suffice it to say that many folks have been waiting the last few years to either buy for the first time, sell and trade up or downsize.  Whatever the reason, more homes are entering the market at present and that’s a plus for buyers.

The pickings have been sparce during the last year or so when mortgage interest rates were rising.  Now that they are on their way down, although fluctuating, folks who have been sitting on the fence are ready to jump in.

Yes, interest rates are still somewhat high but as I’ve said before…shopping around for rates can result in some happy surprises.  Lenders are chomping at the bit to lend and are doing everything possible to work with buyers.

You can also find some sellers, as well as home builders, who are offering a “buy down”—essentially help with lowering the interest rate for a set period of time until you are able to refinance and lower the interest rate yourself.  (see my YouTube video link below)

Some of these options can sound confusing but that’s why you’ve got me.  I’ve been around for most every cycle imaginable and know the in’s and out’s of it all so you don’t have to.  I can work with your needs, wants and budget requirements to help you find something that is just the right fit for you and your family.

 

Perhaps you’ve waited until after election day to buy or sell?  Well, that day will soon be here.

 

Perhaps you want to wait until next year to buy or sell?  That day will soon be here as well.

 

It’s not too early to start implementing a plan for your 2025 buying or selling needs and the sooner we start talking, the sooner you will have that plan ready and you’ll be that much further ahead of those who wait.

 

I look forward to meeting with you sooner than later because as you’ll see as you read further down…Time is of the Essence…. or “the early bird gets the worm” as they say.  In this case, the early bird gets the opportunity to grow their personal assets first.  I like to see my clients get a jump on the rest as I know the excellent opportunities of which they can avail themselves.

 

Give me a call today at 719.593.1000 or email me at Harry@HarrySalzman.com and together let’s see how your Residential real estate dreams can become reality in the best time frame for you.

 

And, if you’ve got two minutes, check out my new and improved video podcast and discover how you can purchase a fabulous home at a “buy down” on the mortgage which essentially means a lower monthly payment for the first year or two.   Here’s a picture of a chart I featured in the video.  If you have any questions, just ask.

 

                                                                                            (*all financial numbers are approximate)

 

Click on the link below and you will be directed to my personal YouTube channel.

 

https://youtu.be/mADrPVkY1lE

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!)

 

MORE PEOPLE ARE LISTING THEIR HOMES RECENTLY…WHY?

Keeping Current Matters, 10.17.24

As I mentioned earlier, most “normal” or “traditional” housing cycles see around 40% of the buying and selling take place between April and June each year.  

Well, there’s been nothing quite “normal” in the Residential real estate market for some time now. This year we saw mortgage interest rates come down at the same time the number of homes on the market usually starts to decline.  So, what happened?  More homeowners decided to sell, so more homes came on the market.  This is true here in Colorado Springs as well as nationally.

The most recent data from Realtor.com reveals that in September the number of homes put up for sale increased by 11.6% nationally compared to this time last year.  Locally, we saw an increase in listings of 7.1% in single-family/patio homes and 34.4% for condo/townhomes.  

As the green circle in the graph below shows, the typical September decline nationally in homes coming to the market did not happen—the number actually went up.  See below:

 

 

Ralph McLaughlin, senior economist at Realtor.com explains why there was an unseasonable rise: “This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”

 

So, What Does This Mean If You’re Looking to Buy a Home?

It means more fresh options to choose from than you have had for a while—not the ones that have simply been sitting around unsold.

However, keep in mind that mortgage rates have been ticking up a bit slightly in recent weeks, which could limit the number of folks who feel comfortable with the idea of selling in the months ahead.  And in the recent market, it’s mortgage rates that are largely driving homeowner decisions.

 

Why Buy Now, Rather Than Wait?

As I mentioned earlier, whether you are looking for a starter home, an upgrade or hoping to downsize, you have more homes from which to choose right now.  And if you can find what you are looking for, remember that these new fresh options won’t be on the market forever.  

One month does not make a trend. So, what does that mean going forward?  Whether more homeowners continue to put their homes on the market will largely depend on what happens with the mortgage rates and the economic factors that impact them, like inflation, employment and the reactions by the Federal Reserve.  

 

With that in mind—if you are ready, willing and able, now might be the best moment while more homes are available.

Lawrence Yun, chief economist at the National Association of Realtors (NAR) explains:

“The rise in inventory—and, more technically, the accompanying months’ supply—implies home buyers are in a much-improved position to find the right home and at more affordable prices.”

 

Bottom Line?

Once again—if you are ready, willing and able—NOW is the time for us to get together and see how we can make all the above work for your individual situation.  Just give me a call and we can get the ball rolling.

 

AND IN THE SAME VEIN….an Infographic

Keeping Current Matters, 10.18.24

 

A Few Highlights:

• You may be torn between buying a home now or waiting.  But don’t forget to factor in the equity you’ll gain as prices rise as well as the greater choices you have now.

 

• Experts forecast prices will climb over the next 5 years—and based on those forecasts you could gain about $90k in equity in that time.

 

• You could wait, but you’ll miss out on a lot of equity if you do.  So why not start growing your wealth now in a home that fits your present and future life.

 

• Once again…. let’s talk and see if this is the right time for you.  Call me at 719.593.1000 today.

 

ERA SHIELDS QUARTERLY STAT PACK

Data through September 2024, ERA Shields

Here is data from my company’s quarterly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

 

 

FEATURED LISTING:  

It’s the one I featured in my YouTube video link above with the “buy down” offer.  

Be sure to check it out.  I don’t expect it to last long.

October 10, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

MORTGAGE RATES HAVE FALLEN TO THEIR LOWEST LEVEL IN TWO YEARS… BUT BUYERS AND SELLERS ARE STILL MOVING SLOWLY

Last week the average 30-year mortgage rate dropped to 6.08% from 7.31% one year ago.  The last time the average rate was lower was on September 15, 2022, when it was 6.02%.  And rates for 15-year fixed rate mortgages rose a bit from 5.15% to 5.16% last week, according to Freddie Mac.

While these rates are certainly better, they don’t appear to be incentive enough to convince those who have been waiting to sell to enter the market.  And why is that?

Well, several reasons come to my mind.  To begin with there are those who refinanced when rates were historically low several years ago and they don’t want to give up those low rates.

Then there are those who are waiting for the Federal Reserve to lower the Fed Fund rate even more in hope that mortgage interest rates will follow.

And lastly, there are those who are waiting for the outcome of the Presidential election before committing to a move.

All of these reasons are understandable and when you look at the new statistics below you can see how they are affected by the above reasons.  

Compared to a year ago in single-family/patio homes, sales are down, new listings are holding steady, and home values are holding their own.  The median sales price is up 2.1%.

For condos/town homes most everything is up compared to last year.

The biggest take from all of this is that home values are not going down and are continuing to rise.  

What does that mean if you have been sitting on the fence when it comes to making a move?  Well, you’re going to pay more for your new home than you might today. So, the possibility of a lower interest rate might not make a lot of difference if your new home costs more than it would today.

I don’t have a crystal ball and can’t predict what will happen to rates or what will happen in the Presidential election.  But I can say with conviction that home prices are not going to be going down anytime soon, if ever.

As I’ve always said and will repeat again—there are always those who need or want to buy and those who need or want to sell.  

What that means is that there are always going to be potential buyers for your home if you are thinking of making a move.  Homes are not going to sell in record time with multiple offers over list price, but if your home is priced right, you are likely to find a buyer.

Listings are slowly going up as I mentioned and as that continues there will be much more competition for your home than if you put it on the market now.  With fewer available homes for sale, your home is likely to get more attention today.

How does this affect you?  If you’ve even been thinking of making a move, NOW is a great time.  It’s never too early for us to get together and see how we can begin to get a better picture of how to take your wants, needs and budget requirements and use them for the best outcome for you and your family. 

With 51+ years in the local Residential real estate arena couple with my investment banking background, I’m your guy when it comes to helping you put all the pieces of the buying and selling process together.

Simply email me at Harry@HarrySalzman.com or call me at 719.593.1000 and let’s get started today. 

 

And, if you’ve got one minute and 59 seconds, check out my new and improved video podcast. Click on the link below and you will be directed to my personal YouTube channel.

https://youtu.be/FTIurvVlCsc

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!)

 

To my Jewish friends and clients, I’d like to wish you a very healthy, happy New Year.

 

Now for statistics…

 

SEPTEMBER 2024

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

Here are some highlights from the September 2024 PPAR report.  You might note that while homes are selling at close to asking price as in the past several months, the days on the market are a bit longer.  I expect both to change if interest rates go down more.

 

In El Paso County, the average days on the market for single family/patio homes was 40.  For condo/townhomes it was 55.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.2% and for condo/townhomes it was 98.7%.  

 

In Teller County, the average days on the market for single family/patio homes was 63 and the sales/list price was 97.7%.

 

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 September 2024 to September 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,331, Up 7.1%

·       Number of Sales were 933, Down 7.4%

·       Average Sales Price was $535,023, Down 1.1%

·       Median Sales Price was $485,000, Up 2.1%

·       Total Active Listings are 3,392, Up 36.6%

·       Months Supply is 3.65, Down 4.9%

 

 

Condo/Townhomes:

·       New Listings were 250, Up 34.4% 

·       Number of Sales were 140, Up 6.9%

·       Average Sales Price was $385,706, Up 4.4%

·       Median Sales Price was $370,000, Up 5.7 %

·       Total Active Listings are 627, Up 71.3%

·       Months Supply is 4.5, Up 10.4%

 

SEPTEMBER 2024 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 were Down 7.2%

 

• Median Sales Price for All Properties was Up 0.1%

 

• Active Listings on All Properties were Up 29.6%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

THE TOP THREE REASONS AFFORDABILITY IS IMPROVING

Keeping Current Matters, 10.4.24

 

Some Highlights:

 

• Affordability is based on three key factors:  mortgage rates, home prices and wages.

 

• Today, it’s improving quickly as rates come down, prices level off, and wages climb.

 

• If you’ve put your search on pause, now is the perfect time to get ready to jump back in.  Give me a call today and let’s see how all three factors can work for you.

 

 

AND ONE OF THE QUESTIONS I’M ASKED THE MOST…” BUY NOW OR WAIT UNTIL AFTER THE PRESIDENTIAL ELECTION?”

Keeping Current Matters, 9.27.24

 

Bottom Line:

• If you, like many others, are wondering if you should wait until after the election or buy now here’s what you might want to know:

 

• If you wait for rates to drop more, you’ll likely have to deal with more competition and higher prices when additional buyers jump back in the market.  But if you buy now, you’ll be getting ahead of that and have the chance to start building equity now.

 

• I can help you look at all the options and see what could work best for your individual situation.

 

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, September 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD   

Updated September 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr.Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here.  

 

 

September 24, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

RATES, RATES, AND MORE  (LOWER) RATES…

As you’ve probably heard, the Federal Reserve finally lowered the short-term federal funds rate last week by ½ a percentage point.  Some say too little too late, but for those who have been waiting for a drop in the home mortgage lending rates, some relief will likely soon be coming.

While mortgage rates are not directly tied to the federal funds rate, the lowering of that rate usually is followed by a reduction in the home lending rates as well.  And, as you probably know, mortgage rates have been slowing going down in recent days,

This will certainly help those who have been waiting for rates to drop but for those who are nostalgic for the historic rates of several years ago…sorry…I doubt we will ever see rates that low again.  

The current conventional rates of around 5.875 for a 30-year fixed-rate mortgage (FHA/VA are around 5.375 for same terms) are quite normalized and should be dropping a bit more before year’s end.  Having been in this business for 51+ years, I’ve seen rates as high as 18% so today’s rates don’t look too bad.

But let’s talk more about rates for a moment, shall we?  High interest rates can keep some, and most especially first-time buyers, out of the market. However, it’s very good to remember a couple of very important things.

As you’ve probably seen from our local Residential real estate statistics that I publish the first eNewsletter of each month…our home values are continuing to appreciate which means that home equity is growing for most all local homeowners.  

What that means is if you are delaying a move due to the interest rates you are likely going to be paying more for your next home.  And your present home is probably worth more than you might think which could provide you with additional dollars to put down on the next home.  

Together those two facts can make it easier to understand exactly what a new home will cost you.  On top of that, if the rate drops, you can always refinance down the line, all the while earning equity on your new home which you’d likely pay more for later.

Make sense?

Essentially, it’s important to know what your wants, needs and budget requirements are before beginning the search and that will make everything much easier.  

Just give me a call today at 719.593.1000 or email me at Harry@HarrySalzman.com and together let’s see how your Residential real estate dreams can become reality.  

 

THEY DON’T CALL ME “MR. NEGOTIATOR” FOR NOTHING

With my background in Investment Banking and 51+ years working for clients in the local Residential real estate arena, my expertise in negotiation is legendary.  That is a big plus for my clients and one that has saved them a lot of time and money over the years.

I just came across a quote attributed to President John F. Kennedy and I could totally relate so wanted to share it with you.  I’m fairly certain he wasn’t thinking of Residential real estate when he said it, but it’s applicable none the less:

 

“Let us never negotiate out of fear but let us never fear to negotiate.”

 

AND NOW MORE ON THE NEW CHANGES TO COMMISSIONS ON RESIDENTIAL real estate

The Wall Street Journal

I wanted to share this link to a podcast from The Wall Street Journal.  Simply scan the QR Code below for information on the settlement that was reached and find out how this has changed the way real estate agents collect commissions.  You can refer to my last several eNewsletters for additional information or simply give me a call and I’ll do my best to explain it further.

 

 

HOW GROWING INVENTORY BENEFITS TODAY’S BUYERS…an Infographic

Keeping Current Matters, 8.23.24

Some Thoughts:

• Our total active listings on single family/patio homes in El Paso County are up 37.2% year-over-year and new listings are up 14.1% year-over-year as of the end of August 2024.
• What that means to you is that when you buy you have more negotiation power (that’s where I come in!).  

 

SHOULD YOU SELL NOW?  LIFESTYLE FACTORS THAT COULD TIP THE SCALE

Keeping Current Matters, 9.3.24

If you are on the fence about whether to sell now or hold off, you’re not alone.  It’s a common dilemma, but a key point is that your lifestyle might be the biggest factor in your decision.  While financial aspects are important, at times the personal motivations for moving are reason enough to make the move now rather than wait.

An annual report from the National Association of Realtors (NAR) offers some insight into why homeowners might choose to sell.  All of the top reasons are related to life changes, as the graph below highlights:

 

 

The biggest motivators were the desire to be closer to friends or family, outgrowing their current house, or experiencing a significant life change like getting married or having a baby.  The need to downsize or relocate for work also made the list as you can see.

As Danielle Hale, chief economist at Realtor.com explains:

“A consideration today’s homeowners should review is what their home equity picture looks like.  With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion.  This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next purchase.”

If any of these factors are important to you at present, just give me a call and let’s discuss how I can help make your move an easier one, and one based on informed, confident facts that fit your individual situation.

After all, no two houses are exactly alike, and no two families are either.  That’s why I find it so important when we’re discussing what is likely your most expensive investment to make sure all the pieces of the puzzle fit perfectly for you and your family.

 

ERA SHIELDS STAT PACK

Data through August 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

 

September 10, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

LOTS OF INFORMATION HERE SO I’LL LET IT SPEAK FOR ITSELF…

The good news is that it looks like the Fed will lower rates a bit, which should start a downward trend for 2025.  I’ve included a lot of good info on 2025 predictions and more below, including a link to my podcast where I talk about some new lower rates that are currently available.

And, of course, as always, if you’ve even been thinking of making a move, it’s never too early for us to get together and see how together we can begin to get a better picture of how to take your wants, needs and budget requirements and use them for the best outcome for you and your family. 

Simply email me at Harry@HarrySalzman.com or call me at 719.593.1000 and let’s get started today. 

 

And, if you’ve got one minute and 53 seconds, check out some of the current mortgage interest rates that are looking oh, so good that I refer to on my new and improved video podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

To watch, click here:

https://youtu.be/K1ZNOTtPhWs

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

AUGUST 2024

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

Here are some highlights from the August 2024 PPAR report.  You might note that while homes are selling at close to asking price as in the past several months, the days on the market are a bit longer.  I expect both to change once the interest rates go down more.

 

In El Paso County, the average days on the market for single family/patio homes was 34.  For condo/townhomes it was 47.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.3% and for condo/townhomes it was 98.3%.  

 

In Teller County, the average days on the market for single family/patio homes was 61 and the sales/list price was 98.4%.

 

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 August 2024 to August 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,605, Up 14.1%

·       Number of Sales were 1,064, Down 0.3%

·       Average Sales Price was $558,409, Up 0.8%

·       Median Sales Price was $490,000, Up 2.1%

·       Total Active Listings are 3,320, Up 37.2%

·       Months Supply is 3.1, Down 132.3%

 

 

Condo/Townhomes:

·       New Listings were 249, Up 8.3% 

·       Number of Sales were 157, Down 16.9%

·       Average Sales Price was $364,968, Up 1.1%

·       Median Sales Price was $347,200, Down 0.1%

·       Total Active Listings are 597, Up 69.6%

·       Months Supply is 3.8, Down 4.1%

 

AUGUST 2024 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 were Down 2.1%

 

• Median Sales Price for All Properties was Up 3.7%

 

• Active Listings on All Properties were Up 33.1%

 

You cant click here o read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

COLORADO SPRINGS RANKS #87 IN THE Q2 2024 FHFA HOUSE PRICE INDEX

Federal Housing Finance Agency, August 2024

The recently published FHFA House Price Index for second quarter 2024 lists Colorado Springs as #87 out of the top 100 in house price changes during that quarter. 

We are still in the top 100 and moved up two spots from Second Quarter 2023.  Our lack of available homes for sale has kept us from ranking considerably higher and I am hopeful that things will soon begin to turn around.

We are ranked just slightly below Denver which ranked number 81.  

Below are copies of the entire list as well as of the Colorado Springs changes.  Any questions?  You know where to reach me.

 

HOW THE FEDERAL RESERVE’S NEXT MOVE COULD IMPACT THE housing market

Keeping Current Matters, 9.4.24

With a lot of eyes on the Federal Reserve (the Fed) now that it’s September, the overwhelming expectation is that they will cut the Federal Funds Rate at their upcoming meeting due to recent signs of inflation cooling and the job market slowing down.

Mark Zandi, chief economist at Moody’s Analytics, said; “They’re ready to cut, just as long as we don’t get an inflation surprise between now and September, which we won’t.”

What does this mean for the housing market, and most especially to you as a potential home buyer or seller?

 

Why a Federal Funds Rate Cut Matters

 

The Federal Funds Rate is one of the key factors that influences mortgage rates—things like the economy, geopolitical uncertainty, and more also have an impact.

When the Fed cuts the Federal Funds Rate, it is a signal of what’s happening in the broader economy, and mortgage rates tend to respond.  A single rate cut may not lead to a dramatic drop in mortgage rates, but it could contribute to the gradual decline that’s already happening.

As Mike Fratantoni, chief economist at the Mortgage Bankers Association (MBA) points out, “Once the Fed kicks off a rate-cutting cycle, we do expect that mortgage rates will move somewhat lower.”

And any upcoming Federal Funds Rate cut likely won’t be a one-time event.  Lawrence Yun, chief economist of the National Association of Realtors (NAR) says, “Generally the rate-cutting cycle is not one-and-done.  Six to eight rounds of rate cuts all through 2025 look likely.”

 

The Projected Impact on Mortgage Rates

 

Here’s what experts in the industry project for mortgage rates through 2025.  One contributing factor to this ongoing gradual decline is the anticipated cuts from the Fed.  The graph below shows the latest forecasts from Fannie Mae, MBA, NAR and Wells Fargo.

 

 

So, with the recent improvements in inflation and a cooling job market, a Federal Funds Rate cut is likely to lead to a moderate decline in mortgage rates (shown in the dotted lines).  

 

Two big reasons why that’s good news for both buyers and sellers:

 

It Helps Alleviate the Lock-in Effect  

 

For current homeowners, lower mortgage rates could help ease the lock-in effect.  That’s when people feel stuck in their present home because today’s rates are higher than what they locked in when they bought that house.

If the fear of losing your low-rate mortgage and facing higher costs has kept you out of the market, a slight reduction in rates could make selling a bit more attractive again.  However, this isn’t expected to bring a flood of sellers to the market as many homeowners may still be cautious about giving up their existing mortgage rate.

 

It Should Boost Buyer Activity

 

For potential homebuyers, any drop in mortgage rates will provide a more inviting housing market.  Lower mortgage rates can reduce the overall cost of homeownership, making it more feasible for you, if you’ve been waiting to make a move.

 

What Should You Do?

 

While the probable upcoming Federal Funds Rate cut is not expected to drastically lower mortgage rates, it will likely contribute to the gradual decrease that’s already happening.

And while the anticipated rate cut represents a positive shift for the future of the housing market, it’s important to consider your options right now.  

Jacob Channel, senior economist at LendingTree, sums it up well:  

“Timing the market is basically impossible.  If you’re always waiting for perfect market conditions, you’re going to be waiting forever.  Buy now only if it’s a good idea for you.”  

 

If you have any questions as to whether it’s a good time for YOU, please give me a call and we can look at your individual situation and help determine if it’s the right time for you.  

 

EARLY FORECASTS FOR THE 2025 housing market…an Infographic

Keeping Current Matters, 9.6.24

 

Some Highlights:

If you’ve been thinking about making a move in 2025 and have been wondering what to expect, here’s what expert forecasts say lies ahead.

 

• Mortgage rates will come down slightly.
• More homes will sell.
• And prices will rise more moderately.

 

It’s never too early to start thinking about how the 2025 market will affect you if you have been considering a move.

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, August 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM  

Registration is open for the annual UCCS Economic Forum on September 26^th at the Ent Center for The Arts.

Get ready for a day filled with insightful economic trends, valuable connections, and plenty of opportunities to learn and grow.

Doors open at noon.

To register and for more information, click on the link below: 

https://click.com.uccs.edu/?qs=f946e6de056a12e9aacbad0867bbfaff4e1b8963ba7fc72fe47d1a0d24f1c946c09f9c016ace1cb1ed28c5d4f6b9fc53a1ebdde35ca2215d

I hope to see you there.

 

August 21, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

FIRST UP…A WORD FROM ME…

 

 

I’ve briefly explained some important news in my latest podcast, so if you’ve got 2 minutes and 28 seconds, you will get a brief idea of the new changes that affect all Residential real estate transactions nationwide effective last Saturday.  These are explained in greater detail in the article below.

 

Click on this link to watch my podcast:    https://youtu.be/4u15MWmxnaU

 

 

WHAT TO KNOW ABOUT RESIDENTIAL real estate COMMISSION CHANGES

The Wall Street Journal 8.15.24

As I mentioned above, change is in the air, and these are some of the biggest changes in decades to the way real estate agents get paid.  The National Association of Realtors (NAR) reached a landmark settlement earlier this year over commissions, and as of last Saturday, August 17, most of its 1.5 million members will be subject to the new rules.  

Here is a synopsis of some things home buyers and sellers need to know.

 

How did the system work up until last Saturday and how is it changing:

For the last 30 or more years the seller has typically paid the agents on both sides of a home sale transaction and decided how much both agents get paid.  Usually, sellers agreed to pay their agent a certain amount—often 5% or 6% of the sale price—and the seller’s agent split this with the buyer’s agent.  When a home was listed for sale, the listing says how much the buyer’s agent can expect to be paid.

Two main changes are now happening.  First, listings in local multiple-listing services (MLS) will no longer show whether a seller is offering to pay a buyer’s agent, or how much.  Second, buyers will be required to sign agreements specifying how much their agent will be paid.  Buyers will do this before they start looking at homes with agents.

This means that buyers should negotiate directly with their agents instead of letting the seller decide how much the buyer’s representative earns.

These changes are taking effect across most of the U.S., but not everywhere.  They ARE taking effect in Colorado.

 

Is this going to bring home prices down?

This does NOT mean that real estate agents’ commissions will go down.  That will be up to buyers and what fees they negotiate with their agents.

If commissions do fall, buyers could benefit by paying lower home prices or sellers could benefit by keeping more profit, depending on how competitive and fast-moving the market is.

 

Am I eligible to receive money as part of the NAR settlement?

If you sold a home in the U.S. in the past decade or so you might be one of some 50 million sellers who are eligible for a modest payout.

 

I’m planning to buy a home soon.  Do I need to use a real estate agent?

This depends on how much time you want to spend overseeing the home search and on your confidence as a skilled negotiator.  Almost 90% of buyers used an agent in the year ended in June 2023, according to NAR.  

However, like home sellers, home buyers can choose to skip the agent and go it alone or use an attorney instead.  

 

If I do want to use an agent, how much will that cost?

You and your agent will agree on compensation upfront.  Buyers’ agents today are usually paid a percentage of the sale price, often 2.5% or 3% but it differs from agent to agent.  

You can also sign a non-exclusive agreement, so you can work with other agents too.   However, most reputable agents such I will only work on an exclusive buyer relationship.

 

What if I want to just tour a home or go to an open house without committing to an agent?

The new rules require buyers to sign agreements with agents BEFORE touring homes.  The agreement can be limited to just one home.  But if you aren’t ready to commit, you can go to an open house without an agent.  Open houses are hosted by the seller’s agent.

You can also ask sellers’ agents to give you tours.  In that case, the seller’s agent isn’t working for you, unless you both agree otherwise.

 

Do I have to pay my agent myself?

No.  As a buyer, you will be responsible for coming to an agreement with your agent about how much the agent will get paid.  But you can always ask the seller to cover that cost so you don’t have to.

If the seller says no, you can sweeten your offer by raising the price. You can also walk away.

 

What if the seller is offering a different amount than what I have agreed to with my agent?

You have a couple of options to consider.  Let’s say you have agreed to pay your agent $10,000, but then you find a home to buy and the seller has offered to pay a buyer’s agent $20,000.  In that case, it is up to the seller what to do with the extra money.  You can ask the seller to give that extra money back to you, either by lowering the purchase price or by giving you a concession.

Or let’s say you have agreed to pay your agent $10,000 but the seller is offering $5,000.  You can still ask the seller to pay the full $10,000 when you make an offer to buy the home.  You could also go back to your agent and try to renegotiate the fee.

 

I’m planning to sell my home soon.  Should I offer to pay the buyer’s agent?

Sellers now have the flexibility to decide whether to offer a commission to a buyer’s agent.  It is unethical for your agent to tell you that you must pay a commission or that if you don’t, agents won’t bring buyers to see your home.

Here are a few options:

• You can tell buyers’ agents upfront what you are planning to pay them.  You can do this by offering to pay the buyer’s agent directly or by agreeing to pay both commissions to your agent to split with the buyer’s agent.
• You can offer a concession that buyers can use to compensate their agents or for other expenses, such as repairs and closing costs.
• You can offer nothing upfront.  When buyers submit offers, they might ask you to compensate their agents.

 

What happens if a buyer’s agent already agreed to get paid less?

Your contract with your agent should specify whether you want to hold on to any surplus, or have it go to the buyer or to your agent.

 

What happens if the buyer for my home doesn’t have an agent?

In the past, when a buyer didn’t have an agent, the seller’s representative often kept the commission offered to a buyer’s agent.  But you should negotiate upfront with your agent what would happen in that scenario.  Your agent may want additional compensation because it may be more work to close the deal.  You should also discuss whether your agent can agree to represent both sides, if it is allowed.

 

What do I do if I think my agent is breaking the rules?

If you believe your agent is breaking any of the rules explained above, you have a few options.  You can find another agent.  You can report the agent to your state’s real estate commission, to a local Realtor association or to an MLS which sets the rules for home listings.  You can also speak to plaintiff attorneys involved in the settlements or consumer advocates.

 

Below is a chart published in The Wall Street Journal that gives you the changes in a nutshell:

 

 

 

Yes, it’s a lot to take in, even for folks like me and I’ve been working in this industry for 51+ years and have a background in Investment Banking.  We’ve had numerous meetings with our local Pikes Peak Realtors Association (PPAR) and others over the summer and I’m more than happy to explain these changes to you in greater detail.  

Just give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and we can discuss any questions you might have in regard to these changes or anything else.

I hope to be speaking with you soon.

 

HOUSING SUPPLY, OR RATHER, LACK OF IT…IS MAKING THE HOME BUYING MARKET THE TOUGHEST SINCE THE ‘80s…

The Wall Street Journal, 8.12.24

Yes, mortgage rates are better now than they were in the 1980’s but greater supply back then led to better affordability.  

Last fall home buying affordability dropped to the lowest level since September 1985, and it fell near that level again in June.  

In 1985, millions of Americans were in their late 20’s and early 30’s, the prime first-time buying years.  They also found themselves priced out of the market.  However, because buyers in the mid-80’s had much more housing supply, homes became more affordable as mortgage rates fell in subsequent years.

First-time buyers today have it much harder.  While affordability is likely to improve by year end if borrowing rates ease and inventory continues to grow, it won’t get significantly better without more home building, economists say.

The chart below shows the housing affordability index:

 

 

The chart above is based on national statistics and as I’ve always said, “real estate is local”—meaning that the affordability of folks here is considerably better than nationally.  However, that said, we are still suffering from a low supply of existing homes for sale and that is keeping a number of folks from becoming homeowners.  

Recent local stats are looking better in terms of people listing homes for sale and I’m hopeful that as interest rates ease more we will see more of those who have been sitting on the fence making their moves (literally) and the supply of available homes for sale will grow.

 

ERA SHIELDS STAT PACK

Data through July 2024, ERA Shields

Here is data from my company’s monthly “Stat Pack” that can better help you understand the local buying and selling reality.  I have reproduced the first page, and you can click here to get the report in its entirety.

August 8, 2024

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

LOCAL HOME PRICES CONTINUE TO RISE BUT…FOR THE FIRST TIME IN AGES, MORTGAGE RATES ARE DOWN…

I’ve written and talked a lot about mortgage rates in recent months because of their impact on affordability.  If you’re one of the many who have waited to make a move you’ve probably been waiting for the rates to go down.  Well, you are now getting your wish.

The big news for mortgage rates is that mortgage rates are down a full percentage point from the recent high.  This is HUGE.  This chart makes note of it:

 

 

It’s possible you have seen this as well and are still wondering how low rates are going to go.  Well, let me assure you that the rates we saw during the pandemic are a thing of the past.  If you are holding out to see a 3% mortgage rate again, you’ll be waiting for something that experts agree won’t happen.

As Greg McBride, Chief Financial Analyst at Bankrate said:

” The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates…the best we may be able to hope for over the next year is 5.5 to 6%.”

The big decrease in recent weeks is a gift for those who have been sitting on the fence.  This may just the right time for you to get moving…literally.  

As you will see in the statistics below, home appreciation in Colorado Springs is still on the rise and will continue to do so.  What that means is that as home values increase, you are going to pay more because the borrowed amount will be higher, even with lower interest rates.

And, with loan rates decreasing, it’s possible that more and more buyers will be entering the market, thus driving up prices even more and bringing back bidding wars.

So, if you have even thought about making a move, NOW is the TIME.  But you won’t know until you start the process.  

Just email me at Harry@HarrySalzman.com or call me at 719.593.1000 and together we can begin to get a better picture of how to best take your wants, needs and budget requirements and use them for the best outcome for you and your family. 

 

And, if you’ve got two minutes, look at my new and improved video podcast. Simply click on the link below and you will be directed to my personal YouTube channel.

 

To watch, click here:

https://youtu.be/ZHnXnF41mUM

 

While you’re at it you might want to subscribe to my channel, so you won’t miss future broadcasts.  It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!

 

And now for statistics…

 

JULY 2024

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

Here are some highlights from the July 2024 PPAR report. 

 

In El Paso County, the average days on the market for single family/patio homes was 31.  For condo/townhomes it was 38.  

 

Also in El Paso County, the sales price/list price for single family/patio homes was 99.5% and for condo/townhomes it was 99.3%.  

 

In Teller County, the average days on the market for single family/patio homes was 48 and the sales/list price was 97.4%.

 

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 July 2024 to July 2023 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,640, Up 12.0%

·       Number of Sales were 1,127, Up 0.7%

·       Average Sales Price was $571,152, Up 5.7%

·       Median Sales Price was $499,000, Up 5.7%

·       Total Active Listings are 3,273, Up 45.2%

·       Months Supply is 2.9, Up 63.2%

 

 

Condo/Townhomes:

·       New Listings were 246, Up 9.8% 

·       Number of Sales were 145, Down 9.4%

·       Average Sales Price was $381,437, Up 4.6%

·       Median Sales Price was $354,900, Up 3.6%

·       Total Active Listings are 596, Up 97.4%

·       Months Supply is 4.1, Down 10.4%

 

JULY 2024 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 were Up 3.0%

 

• Median Sales Price for All Properties was Up 5.4%

 

• Active Listings on All Properties were Up 35.5%

 

You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update.  It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area:

 

ECONOMIC & WORKFORCE DEVELOPMENT REPORT

Data-Driven Economic Strategies, July 2024

As always, I like to share the useful data I receive from our “local economist”, Tatiana Bailey.  You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report. 

This information is especially invaluable to business owners; however, I know you all will all find it worthwhile reading.

Below is a reproduction of the first page of graphics. To access the full report, please click here.  And if you have any questions, give me a call.

 

 

UCCS ECONOMIC FORUM MONTHLY DASHBOARD   

Updated July 2024, UCCS College of Business/Economic Forum

Here is the monthly report from the UCCS College of Business Economic Forum.  It is created by professor Dr.Bill Craighead, who is the Forum Director.  He also publishes an on-line “Weekly Economic Snapshot” you might enjoy. 

I know several of you who like statistics and use this information in your daily business life, and I will share it with you when I receive it each month.  

I’ve reproduced the first page of the charts below.  To access the report in its entirety, please click here.  

 

July 27, 2024

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.

 

 

EVEN WITH HOME PRICES REACHING RECORD HIGHS AND MORTGAGE RATES STILL HOVERING AROUND 7%, THE SECOND HALF OF 2024 MAY STILL PRESENT SOME OPPORTUNITIES FOR YOU

Yes, you read that right.  I know that homes keep appreciating and mortgage rates are still higher than we saw just several years ago, but…2024 could still be the year you can put your wants, needs and budget requirements to work and find a new home for you and your family.

I’ve been in the local residential real estate arena for 51 years now and have seen most every cycle imaginable.  And as I’ve told you time and again, there are always going to be those who need to buy and those who need to sell at any given time.

There are ways to make your dreams a reality, but it takes some work and preparation.  That’s why you’ve got me.  With my years of experience, coupled with my investment banking background, I can often find ways to make things happen that many other brokers can’t.  

If you have been putting off a search you will see some statistics below that can help you understand why NOW may just be the time to jump back in the market.

But you won’t know unless you ask.   If you’ve been waiting, now is a good time to explore the possibilities.  Give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s together see what we can do to make 2024 the year your Residential real estate dreams come true.

 

UNLOCKING HOMEBUYER OPPORTUNITES THIS YEAR

KeepingCurrentMatters, 7.18.24

 

There is no mistaking the fact that 2024 has been a difficult year for homebuyers.  If you’ve put your search on hold, you are not alone in that.  A  Bright MLS study found that some of the top reasons buyers have paused their search in late 2023 and early 2024 were:

• They couldn’t find anything in their price range
• They didn’t have any successful offers or had difficulty competing
• They couldn’t find the right home

If any of those sound like why you stopped looking, here’s what you need to know now.  The housing market is in a transition in the second half of 2024 and here are four reasons why this may be your chance to jump back in the search.

 

1.  The Supply of Homes For Sale is Growing.  One of the most significant shifts in the market this year is how the months’ supply of home for sale has increased.  If you look at data from the National Association of Realtors (NAR) you will see how inventory has grown throughout 2024. See graph below:

 

 

The graph shows the months’ supply of existing homes—homes that were previously lived in by another homeowner.  The upward trend this year means you have a better chance of finding a home that fits your individual wants, needs and budget.

 

2. There’s More New Home Construction.  And, if you don’t find an existing home for sale that’s right for you, another opportunity lies in the rise in new home construction.  Builders are working to increase the supply of newly built homes his year and are turning to smaller, more affordable homes based on the needs of families today.  This could be a viable option and I can help you in this area as well—at no additional cost to you!

According to data from the Census and NAR, one in three homes on the market is a newly built home (see graph below):

 

                        

This means that if you didn’t previously consider newly built homes as part of your search, you may have been cutting down your pool of options by a third.  And some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to get a home they can afford.

 

3. Less Buyer Competition.  Mortgage rates are still around 7% so buyer demand is not a fierce as it once was.  When you combine that with more housing supply you have a better chance of avoiding an intense bidding war like those we saw several years ago.  Danielle Hale, chief economist at Realtor.com highlights the positive trend for the latter half of 2024: “Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs”.

 

4. Home Prices are Moderating.  And speaking of prices, home prices are also showing signs of moderation—a welcome relief after the rapid appreciation seen in recent years (see graph below):

 

This moderation is mostly due to supply and demand.  Supply is growing and demand is easing, so prices are not rising as fast.  But make no mistake—prices are not falling; they are simply rising at a more normal pace.   You can see above that the prices are still increasing, just not as dramatic as it was before.

The average forecast for home price appreciation in 2024 is for positive growth around 3% to 5%, which is more in line with historical norms. 

 

Bottom Line:

If you have put off your dream of homeownership or selling to trade up, the second half of 2024 may be your opportunity to jump back in.  

Simply give me a call and together let’s see how we can make your residential real estate dreams come true.

 

THE BIGGEST MISTAKES HOMEBUYERS ARE MAKING RIGHT NOW..AN INFOGRAPHIC…

KeepingCurrentMatters, 7.18.24

 

Bottom Line:

Once more with feeling…. NOW is a great time to start your search.  You might be pleasantly surprised at what you can afford.  And let’s not forget…. home appreciation, while slower than in the past, is not going to stop.  

If you are renting you are still paying a mortgage…just someone else’s.  Why not put your hard earned money to work for YOU?