Real Estate Information

Oct. 3, 2011

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

PENDING HOME SALES CLIMB 7.7% ABOVE LAST YEAR
 
Although August 2011 national home sales dipped slightly from July, 2011, they rose 7.7% compared with sales in August, 2010.

Lawrence Yun, NAR Chief Economist stated that “The market is underperforming, given a pent-up demand in household formation.

“The unnecessarily restrictive mortgage underwriting standards are attenuating the housing recovery and are a risk factor for the overall economy. We need to remove the road blocks to the housing recovery for people who are trying to take advantage of excellent affordability conditions”, Yun stated.

LATEST SALES AND LISTING STATISTICS

So that you might see how our local real estate market is faring, we have linked to the most recent Sales and Listing data for the Pikes Peak area, issued by the Pikes Peak Association of Realtors. At our publication time, statistics for September Sales had not yet been released, but we will include them in next week’s issue. Click here for the latest available statistics.

39 YEARS IN THE BUSINESS, AND WE CAN STILL BE SURPRISED !!!

Last week, we arranged for a 30 year, fixed-rate mortgage for an Investor-client. One of our local lenders wrote the loan at an interest rate of 4.375% for a non-owner occupied property

Our client reported that, considering the 4.375% rate and our local vacancy rate, he would show a positive income starting the first month after closing.

Last week, for an Owner-occupied home, we arranged for a 15 year, fixed-rate loan at 3% and 30 year loans were available at 3.75%.

These are the lowest rates we have ever seen.

If you’re thinking of buying, now’s the time to do it.

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

TWO MORE JOB-BUILDING PROJECTS FOR COLORADO SPRINGS ANNOUNCED

Agilent Technologies is moving forward on a $121 million, 55,000 square-foot expansion to their Garden-of-the-Gods campus. The project will include a 20,000 square-foot data center and a 35,000 square-foot technology center.

The economic impact of the Agilent expansion to Colorado Springs will match the expansion of the Wal-Mart data processing facility near Interquest parkway, which was announced in July. Wal-Mart has now finalized its purchase of the 24 acres required for the expansion, at a cost of $5.3 million for the land. Local government officials and business leaders projected that the new facility will pump about $488 million into the local economy over the first 15 years.

Both of these projects will create many new high-paying jobs in our local economy and our Mayor and City Council deserve a vote of thanks for aggressively pursuing these opportunities.

Keep up the good work !!

And, to add some icing on the cake, Tom Binnings, a senior partner in Summit Economics LLC, a Springs economic research and consulting firm, predicts that Colorado Springs job growth should resume next year as major construction projects take hold, including Fort Carson expansion, the Southern Delivery System water pipeline and several apartment complexes.

According to Binnings, some of the other positive factors that will impact Colorado Springs will be:

• Continued Population growth
• A resurgence of entrepreneurship
• Capital access
• Private sector company growth to replace expected government jobs losses
• Troops returning to and remaining at Fort Carson
• A modest resurgence of homebuilding.

And, best of all, we get to see the aspens turning for the next several weeks. …And to think, many people actually choose to live somewhere else…..on purpose. … Go figure !!

WANT TO LEARN WHERE OUR CITY WILL BE IN THE FUTURE? 
REGISTER FOR THE 15TH ANNUAL SCEF

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum will be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

FACING A TRANSFER ? BE AWARE THAT relocation BENEFITS ARE CHANGING

As a result of the decline in home-values and ‘upside-down’ mortgages, many companies are no longer able to simply ‘buy-out’ the homes of their employees who are transferring out of town. Instead, they are using ‘tiered policies’ or ‘Cafeteria relocation Benefits’ to assist their transferred employees moving to new locations.

According to the recent Worldwide ERC Survey, “relocation Assistance: Transferred Employees”, 73% of organizations now report they use tiered policies, compared to 10% in 1988. These companies use three or more tiered policies to better align policy with job or salary levels, homeowner/renter status and other criteria. 

Companies which use tiered policies report they must maintain some flexibility in these polices, or run the risk of alienating existing talent, but also must retain some rigidity, or exceptions become the rule and benefits can become inequitable.

Cafeteria relocation Benefits are offered by 24% of organizations (as compared with 13% in 1997).  These plans offer the company a menu of several benefits, such as:

• Homefinding trips
• En route travel
• Temporary living
• Shipment of household goods, autos and pets
• Home purchase assistance
• Home purchase assistance
• Spouse career transition
• Settling-in services
• Property management
• Child/elderly care assistance

As a long-time member of Worldwide ERC, we have many years of experience working with companies and transferees to assist them with their relocation needs and we would be pleased to discuss this important topic with you.

Give us a call at 598-3200, or, 800 677-MOVE (6683).

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 podcast for this month …

JOKE OF THE WEEK

A bird was flying south for winter, but the weather turned cold early and he was frozen solid in a storm.

He dropped down, frozen and exhausted, into a pile of manure in a cow pasture.

At first, the bird was disgusted, until he realized that the manure was thawing him out! He was so happy to be warm again that he started singing for joy.

A cat that was nearby heard the singing, walked over, saw the bird and ate it

There are three morals to this story:
1. Not everyone who covers you with manure is your enemy
2. Not everyone who gets you out of the manure is your friend
3. If you happen to find yourself in manure, keep your mouth shut

September 26, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THANKSGIVING IS JUST AROUND THE CORNER ....SO, LET'S TALK TURKEY

The Internet is a marvelous invention. You can use it to find members of your high-school class, the parts list for a 1937 LaSalle, the first movie that Clark Gable ever made and almost anything else you can possibly want to know.
Unforthunately, this wonderful source of information can also produce a state of mental paralysis called 'information overload'.

As we speak with prospective real estate Buyers and/or Sellers, we find that many people who have used the Internet (and their neighbors) to advise them about their Real Estate decision are suffering from this confusing problem of 'information overload'. ...and who can blame them?

On any given day, various media sources tell them that "The real estate market is looking much better" and, on the same day, another media source
warns them that "The real estate market has never looked worse".

They read that "mortgage rates are very low", .......but that "the government will soon cause mortgage rates to rise".

They are told that "this is a terrific time to buy", but that "thousands of people are losing their homes".

They hear one of their neighbors tell them they sold their home in three weeks, while another neighbor has had their home on the market for 18 months.

As a result of all of this contradictory information and advice, it is not surprising that the most-asked question we hear from our clients today is, "What would you do?"

So, we thought it would be helpful if "talked turkey" about how we are advising our prospective clients in this confusing market.

First, keep in mind that our personal business philosophy puts the long-term improvement of our clients'  financial welfare at the top of our list. You can't be sucessful and respected for 39 years in this business, if your main goal is just to 'make a buck'.

Building a client base of loyal friends requires that we always tell clients what we think is best for them, even though that means that we sometimes have to recommend not buying that home they just fell in love with, or, to suggest delaying putting their home on the market until their personal finances improve.

Second, remember that all real estate is local. The fact that housing sales in Las Vegas are in the tank, doesn't mean that home sales in Colorado Springs are necesarily terrible. In fact, even within our small segment of the national market, our sales and listing statistics are usually much better than the national statistics.

Using national home price averages to figure out local price trends makes about as much sense as using a national weather forecast to make plans for a picnic in the park.

As a matter of fact, even within the Pikes Peak region, real estate prices and activity can vary greatly based upon such factors as the age of the neighborhood, price range, time of the year, size of the home, improvements, proximity to schools ...and even how the local schools are rated.

You will note that, because both of these elements (your long-term financial welfare and local pricing factors) are based upon your personal situation (financial status, credit rating, your job security, the ages of you and of your children, etc.), the Internet cannot be of much help to you as you try to make your real estate decisions.

That's why you need some impartial advice from someone who has the answers abour what's really happening in our local market.

OK, let's get specific. I am thinking of selling my house. Is this a good time to list it?

Well, let's talk about selling in today's market. You should be aware that the selling price for your home in today's market will probably be less that you would like. Keeping that in mind, however

• If you are just moving to a comparable home closr to your work, remember that whatever financial "loss" you suffer when you sell, will be made up for when you buy your new home at a price that has also been reduced. So, you're not gaining anything by waiting to sell
   
• If you are selling to reduce your monthly payments, consider re-financing your present home, instead of selling. At today's historically-low refinancing rates, you could stay in your home  and still end up with lower monthly payments.
   
• If you are considering selling because you want to upgrade to a better home in a better part of town, you might consider buying your upgraded home and then, rather than selling, keeping your present home as a rental property. Occupancy rates are high, available inventory offers you a wide selection of properties and you will get a terrific mortgage rate on your new home. But there are drawbacks to becoming a landlord and you should discuss this option with us, to avoid some of the unwanted 'surprises' that this option sometimes involves
   
• If you are selling because you are 'underwater' with your mortgage, I'm afraid there are no easy answers. Some of the variables that affect 'short-sale' properties are: Who holds the mortgage (Some lenders are reasonable to work with ...but some are not). How long can the prospective buyer wait to occupy the home (The short-sale process can take many months to complete) The bottom line here is, call us to discuss your specific situation.

As you can see, there is no easy answer to the question "Is this a good time to sell".
 
OK, Should I consider buying a house in today's market?

Absolutely !!!!! New homeowners and Investors alike are going to come out ahead, if they buy now. Low prices, Large inventories, Great mortgage rates (the lowest in history), Low Vacancy rates, a ballooning supply of new renters are all combining to offer a wonderful opportunity for Buyers. Call us to discuss the window of opportunity that is now open.

P.S. If you're on the fence about buying, call us to get the straight scoop on how much your payments would be on a new home. You might find that it would be cheaper than the rent you are now paying

One thing is for sure. The Internet can't give you the kind of advice you need when deciding to buy or sell a home.

Better give us a call at 598-3200 or 800-677 move (6683). We will be pleased to discuss the real estate options that are available to you.

LATEST SALES AND LISTING STATISTICS

Click here for the latest sales and listing statistics for the Pikes Peak area.

Our local sales reflected the national trend in August. Home sales jumped from a year ago by the biggest percentage in nearly 1 1/2 yearsSales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. According to NAR President Ron Phipps, the biggest factors keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers and appraised valuations below the negotiated price.
 

MORTGAGE RATES DIP AGAIN

Within the past few days, mortgage rates for a 30-year, fixed-rate mortgage dropped to 3 3/4%. Many other types of mortgages, like various adjustable loans went even lower. Call us to find out how this might affect your refinancing plans.

THE LATEST GOOD NEWS FOR COLORADO SPRINGS - FROM THE GAZETTE

Initial claims for unemployment were down 23.2%
Unemployment rate was down to 9.3%
New auto and truck registrations were up 42.4%
Taxable retail sales were up 11.9%
Hotel occupancy rate was up to 77.8%
Foreclosure filings were down 21.8%

But the best news of all is that, when you wake up every morning, you get to see the most beautiful sight in the world ...the sun shining on Pikes Peak. No wonder it inspired the song, "America the Beautiful"

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 podcast for this month …

JOKE OF THE WEEK

Two social engineers were discussing social policy and the first one says: "I believe in fairness. ...a share and share alike policy. We should all have an equal share of wealth."

"Well" replied the other social engineer "I'm not sure about that. What you mean is that if you have two yachts you'd give me one?"

"Of course" says the first.

The second social engineer continued: "and if you had two factories, you'd give me one of them too?"

"Absolutely"

"So" says the second social engineer, "if you had two cars then you'd give me one of them?"

"Ah, now hang on a minute" says the first, "That's not fair. You know I've got two cars!"

September 19, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

CONSIDERING RELOCATING FOR A BETTER JOB? …HERE ARE 5 GOOD REASONS YOU SHOULD CONSULT A relocation EXPERT.

The Kelly Workforce Global Index released earlier this year found that more than three quarters of the people surveyed said they would be willing to move for the right job. At the same time, however, the Society of Human Resources Management reports that many employers are reducing or freezing their company-paid relocation programs.

One individual who recently moved to Colorado Springs reported to us that the move cost him almost $10,000 for which he received no compensation from his employer.

So, if you are offered the opportunity of taking a promotion that would require you to assume some of the costs of relocating, you should consider the following five questions, as you make your decision.

1. Can I afford it? There are a number of moving calculators available online, but according to Worldwide ERC, a workforce mobility association of which we are members, the average cost of shipping household goods for a domestic relocation was over $12,000 in 2010.

Also consider the cost of breaking a lease or selling your home (assuming you can find a buyer) and traveling back and forth between your old and new locations.

Because of the shaky market, you may have trouble selling your present home and may have to rent in your new location, until your present home sells.

Keep in mind that, under certain circumstances, the IRS allows you to deduct reasonable moving expenses, but tax deductions are not as valuable as tax credits and are only applicable if you itemize. Expenses for breaking a lease or buying and selling your home are not deductible. Call us to discuss this deduction.

We are very experienced in relocations and can assist you on both ends of the relocation process. We can help you sell your present home and buy your new home, regardless of where you live.

2. What's the local cost of living? Determine whether your new salary will cover living expenses in your new home by looking at cost-of-living calculators and talking to people in the area.

Food costs, utility (air conditioning and heating) costs, etc. vary depending upon what part of the country you are moving to. We can provide you with living-cost statistics for all areas in the U.S.

3. Is the company (and the local industry) stable? If a company is paying for all or part of your relocation costs, they are investing in you over the long term. But there's always the risk that you'll uproot yourself and your family for an opportunity that fizzles out. It can happen that, if the company goes under, you could find yourself without friends or a support system in an unfamiliar community. That’s especially risky if you're expected to turn things around at a troubled company.

Therefore, you should consider what other opportunities are available in the area, should you find yourself without a job. Talking to your relocation expert can help you do your research in this area.

4. Who else would need to relocate? It's much easier (and cheaper) for an individual to relocate than it is for an entire family, especially one with children and two working spouses. You should consider your spouse's career goals, your kid's ages, and how invested your family is in the local community.

5. Is telecommuting a possibility? Before relocating yourself and your family, consider whether you or your spouse might telecommute instead of physically reporting to an office. Often, that depends on the culture of the organization. Within some companies, telecommuting is a way of life. People are all over the country because their clients are all over the country, so it really doesn't matter where you're living. That said, your spouse might be able to telecommute to his or her current job instead of searching for a new one, which could help ease the transition financially.

Using the services of a relocation expert will help you address these questions and the myriad of other topics that can complicate the relocation process. Salzman real estate Services is a long-time member of Worldwide ERC, an organization that specializes in assisting their clients relocate all over the world.

If you are considering moving in or out of the Pikes Peak area, we can help make it a problem-free process.

Call us at 800-667-6683, or, 719 598-3200. We would be happy to discuss your relocation needs.

JUST WHAT IS IT THAT A REALTOR DOES??

Many people think that all a Realtor does is put a “FOR SALE” sign in the front yard and wait for someone to come along and make an offer. But a good Realtor does much more than that.

We recently participated in the sale of a local residence that illustrates how an experienced Realtor can help both the Buyer and the Seller to achieve their goals in a “Win-Win” home-sale transaction.

We were asked to list a local home that was part of an estate sale. The three heirs of the estate lived in different states and wanted to dispose of their deceased father’s home.

Our inspection of the home and our analysis of the neighborhood comparables led us to recommend to the Sellers that some renovating on the inside of the home would be necessary to bring the property up to a competitive level. We also recommended a competitive, fair listing price.

The Sellers went along with our recommendations and we listed the home for sale.

Rather than sitting around waiting for someone to knock on our door with an offer, we contacted several prospective Buyers ….people who had spoken with us in the past about their interest in that particular neighborhood.

One of these prospective Buyers had always been a Renter, and was hesitant to take on the responsibilities of homeownership, but, after we explained to her that present market prices were lower than we would ever see again, that mortgage rates were historically low, and that her monthly payment for the house would be approximately 30% lower than she was currently paying for rent, she decided to take the plunge into homeownership.

Within one week after listing, both the Seller and the Buyer got exactly what they were looking for …a quick sale at a fair price.

That’s the kind of involvement that a good Realtor can bring to a transaction and the kind of commitment to the welfare of both parties that Buyers and Sellers have a right to expect from their Realtor.

Call us at 800-667-6683, or, 719 598-3200, to discuss your specific housing wants and needs. Let us help you achieve your real estate and/or investment goals.

MARK YOUR CALENDAR NOW FOR THE 15th Annual Southern Colorado Economic Forum

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum wiill be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

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.

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

And please take note, you can click on the icon at the top of this email to listen to my latest podcast. ….

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

JOKE OF THE WEEK

Two deputies in the Sheriff's Office, one who had been in town for ten years and the other who had just transferred, answered an emergency call. When they walked into the house, they found the nude bodies of a man and a woman in the bedroom. They had been shot to death.

When they went to the living room, they found the body of a man with a gun at his side.

"No doubt about it," the new deputy said, "This was a double murder and suicide. This guy came home and found his wife in bed with somebody else and shot them both. Then he shot himself."

"You're right," the experienced deputy replied. "But I'll bet you when the sheriff gets here he's going to say, 'It could have been worse'."

"No way. You're on."

The old sheriff arrived at the scene. "No doubt about it," the sheriff said, shaking his head. "It was a double murder and suicide." After hesitating for a moment, the old sheriff looked his deputies in the eyes. "But, you know," he said, "it could have been worse."

The deputy who had lost the bet jumped up and shouted, "Sheriff, how could it have been worse? There are three people in this house, and all three of them are dead. It couldn't have been worse."

"Yes, it could," the sheriff retorted. "You see that guy there on the floor? If he had come home yesterday, that would be me!"

August 29, 2011

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

CSCC AND CSREDC UNIFY TO BRING MORE JOBS TO COLORADO SPRINGS

The Boards of Directors of the Greater Colorado Springs Chamber of Colorado Springs (CSCC) and the Colorado Springs Regional Economic Development Corporation (CSREDC) have decided to unify the two organizations to maximize their efforts to attract new jobs to the area.

In announcing the new, unified organization, Bill Hodgkins, Chair of the Board for CSCC said, “Both organizations are currently strong, but they will be even stronger together’.

Doug Quimby, Chair of the Board for CSREDC, stated, “We need integrated strategy for economic development, and a strong force to ensure it is successful. We now have the means and opportunity to do so”.

Quimby also stated, “Small business is the backbone of our economy. We support the Chamber’s key initiatives of fighting for small business, supporting our military and focusing on our defense economy. We believe this new organization can only reinforce these critical initiatives”

Editor’s note: We applaud this decision to focus the efforts of both of these organizations in attracting new jobs to our area. The Pikes Peak Area has everything a business could want to help them succeed and all we need is a vehicle for getting that message out to the rest of the country. This new organization should help us spread the word. …Want more proof of our great business environment, see the following item.

KIPLINGER’S PERSONAL FINANCE RATES COLORADO SPRINGS AMONG THE BEST

The September 2011 isssue of Kiplinger’s Personal Finance magazine rates Colorado Springs as the fourth best city in the nation for value.

Kiplinger’s states that “This burgeoning Western town is filled with transplants drawn by spectacular outdoor beauty, 300 days of sunshine a year, a relatively low cost of living and a vibrant business community that finds little conflict between economy and ecology”.

The article also points out that our city is home to more than a dozen colleges and actively woos companies with tax incentives and a highly educated workforce.

The city offers 150 parks and 260 miles of trails and the Pike National Forest, which borders the city, offers camping, fly-fishing, camping, biking, horseback riding and scenery that extends as far as the eye can see.

Rents and real estate are reasonable, too. The median home sells for less than $199,000 and monthly rent on a two-bedroom apartment is less than $800.

Editor’s note: Another indication of the health of our local economy is the fact that Colorado Springs foreclosure filings are down 32.6% from January 2010.

LAST WEEK’S ARTICLE ON INVESTMENT PROPERTY STIRRED UP A LOT OF INTEREST

We received a lot of feedback relating to the article in last week’s eNewsletter regarding investment property. Realtors and prospective Buyers from around the US contacted us to learn more about the opportunities that are now present in the market. We thought the response merited some further comments about this unique opportunity.

Just to review the window of opportunity that now presents itself to all prospective Buyers:

• Prices are ridiculously low …probably lower than you will ever see again
• Mortgage Rates are historically low… probably lower than you will ever see again
• The inventory of available homes is very high. It is a Buyers’ market and you have your ‘pick of the litter’ for both new and   resale homes, thanks to foreclosures and short sales.
• The high volume of ‘New Renters’ (thanks to foreclosures) has resulted in record low vacancy rates for rentals. Your investment property is almost guaranteed to rent.

And, to cite a couple of reasons to buy now

• Lenders are starting to tighten lending requirements and loans will soon become more difficult to obtain
• As of October 1, 2011, FHA maximum loan amounts will drop from $325,000 to $272,800 for most communities in the US, including Colorado Springs.

The Wall Street Journal, Wed. Aug 17, 2011 stated, “Investors can cover their monthly costs and make an 8% -12% profit pretty easily. We haven’t seen that in 20 years”.

As an example, let’s take a look at what we discussed with one of our clients just last week, as we helped him build his retirement portfolio with an investor property. The following figures are based on realistic estimates in our local; market.
Purchase price $200,000
Down Payment $50,000
Loan Amount $150,000

Using today’s investment interest rate of only 4.5% for non-owner occupied property, on a 30-year fixed loan (and assuming a tax bracket of 33%), here’s how the numbers work out:

Monthly payment P&I $760
Estimated taxes $120
Estimated Insurance $ 80
Total Monthly Payment $960

Typical one-year tax deduction
Interest deduction $6,700
Estimated property tax $1,440
Total deduction $8,140

Annual Income-tax savings $2,686

Net cost of the property
Monthly payment $ 960
Less tax savings $(224)
Net cost $736

The monthly rental net income (after estimating repairs and vacancies) would be $1,054

On a monthly basis, that works out to:
Income $1,054
Loan cost $ (736)
Income before depreciation $ 318
Depreciation per month $ (390)
Actual loss per month ($72)

Bottom line: This investment property would actually cost you only $72 a month.

Further, the estimated annual depreciation would be $4,675.

Now, let’s look at the long-term numbers. If you held this property for 10 years, assuming typical inflation and appreciation, you could expect an average annual growth of 3% per year. Thus, the market value would go from $200,000 to $260,000.

At the end of the ten years, your balance on the loan would be at $120,134 and your equity would be $139,866 from your original investment of $50,000. That’s 27.97% growth per year as your rate of return.

Finally, in the event that there is absolutely no growth for ten years, (and not even the most pessimistic economists are predicting that), your rate of return would still be approximately 16%. In a zero-growth economy, that would be fantastic !!

The icing on the cake is that these figures don’t even take into account your annual tax benefits/deductions. …That alone puts an additional $8,140 per year in your pocket.

And you thought Stocks were the way to go

If you would like us to go into more personal detail about these numbers, please call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

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 podcast for this month …

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak region

JOKE OF THE WEEK

10 Office Rules:

10. Never walk without a document -- People with documents look like hardworking employees headed to important meetings. People with nothing in their hands look like they're headed for the cafeteria. Above all, make sure you carry loads of stuff home with you at night, thus generating the false impression that you work longer hours than you really do.

9. Use computers to look busy -- Any time you use a computer, it looks like "work" to the casual observer. When you get caught by your boss -- and you will get caught -- your best defense is to claim you're teaching yourself to use new software, thus saving valuable training dollars.

8. Messy desk -- only top management can get away with a clean desk. For the rest of us, it looks like we're not working hard enough. Build huge piles of documents around your workspace. Pile them high and wide. If you know somebody is coming to your cubicle, bury the document you'll need halfway down in an existing stack and rummage for it when he/she arrives.

7. Voice mail -- Never answer your phone if you have voice mail. People don't call you just because they want to give you something for nothing -- they call because they want YOU to do work for THEM. If somebody leaves a message for you and it sounds like impending work, respond during lunch hour when you know they're not there

6. Look impatient and annoyed -- According to George Costanza, one should also always try to look impatient and annoyed to give off the impression that you're always busy.

5. Leave the office late -- Always leave the office late, especially when the boss is still around. Make sure you walk past the boss' room on your way out. Send important e-mails at unearthly hours (i.e. 9:35pm, 7:05am, etc.) and during public holidays.

4. Creative sighing for effect -- Sigh loudly when there are many people around, giving the impression that you are under extreme pressure.

3. Stacking strategy -- It is not enough to pile lots of documents on the table. Put lots of books on the floor, etc. (thick computer manuals are the best).

2. Build vocabulary -- Read up on some computer magazines and pick out all the jargon and new products. Use the phrases freely when in conversation with bosses. Remember, they don't have to understand what you say, but you sure sound impressive.

1. MOST IMPORTANT -- DON'T forward this to your boss by mistake!

September 12, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

WHEN YOU DECIDE TO INVEST, LET US HELP YOU AVOID THE PITFALLS

As we have been emphasizing in recent issues of our Enewsletters, there are great opportunities for investors in our Colorado Springs real estate market. Low prices, low mortgage interest rates, large inventories of available homes, low vacancy rates, etc. all combine to offer a window of opportunity for investment that may never open again.

In fact, according to Realtor Magazine, more homes are turning into rentals. Nearly 35% of occupied homes were rented in 2010, which is a 33.8% increase from 2000.

Furthermore, Hotpads.com, a real estate research firm, states that the vacancy rate for rentals is at its lowest level since 2003 and the average nationwide rent increased to $1,320 in 2010, for a jump of 11.6%.

However, smart investors in real estate should be aware of some of the potential problems they might run into, when they jump into the investment market. As the Wall Street Journal points out (Sept. 10-11, 2011), first-time investors frequently make one or more of the following mistakes:

• Confusing a cheap deal with a good deal. Location is still the most important factor for an investor. Are renters likely to want to live in the property? That’s where we can help you analyze the specific local neighborhood history.
• Overlooking key costs. Closing costs, maintenance, etc. will all impact your eventual profit. We are very aware of all of these ‘add-ons’ and can help you evaluate the true cost of your prospective property.
• Forgetting that time is money.You lose money when your property is empty, whether you are painting it, or between tenants. Knowing how to adjust your rents accordingly is something we can help you with.
• Assuming you will sit back and watch the money roll in. Unless you are willing to devote yourself exclusively to maintaining your rental property, you will probably need the assistance of a good property management firm to screen tenants, handle maintenance, etc. We can help you contact a reputable individual or company to handle the day-to-day management issues that are a necessary part of your investment.
• Underestimating repair costs. Unless you have experience with home repairs and intend to do your own maintenance, you will probably be surprised by the routine costs involved in the maintenance of rental properties. (Many experts recommend setting aside a reserve fund to handle such maintenance). Again, we will be happy to work with you in determining how much ‘set-aside’ you should plan for.
• Assuming that owning a rental is the same as owning a home. You are willing to put up with many small inconveniences and defects in your own home that renters will not accept. Here again, a good property manager can take over that aspect of investment property. Give us a call to discuss this aspect of investment.

Investors used to aim for rents that amounted to 1% of the purchase price of their investment. (That’s $1000 a month in rent for a $100,000 home). That equals an annual gross return of 12%

Today, however, because of the factors discussed above, many investors are getting rents that equal 2% of the purchase price. That’s quite an inducement to acquire an investment property before the window closes on this opportunity.

Call us at 598-3200, or (800) 677-MOVE(6683) and we will be happy to chat with you about the investment opportunities available in our local market.

TWO MORE REASONS FOR BUYING NOW !!!!

On October 1, 2011, the FHA maximum loan amount available from FHA will drop in most cities, including Colorado Springs, from $325,000 to $272,200. Experts warn that this change in policy will prevent Fannie Mae and Freddie Mac from financing a significant segment of the real estate market and will put a lot of Buyers out of the market.

This drop in the conforming loan limit is expected to affect 2% of all homes nationwide.

Another reason for buying now is that many lenders are getting reluctant to lend to anyone except those who have ‘pristine credit’. Even the Wall Street Journal (Tuesday, Sept. 6, 2011) noted that many prospective Buyers with excellent credit have been turned away by some lenders.

Fortunately, we have good, working relationships with our local lenders and we have not had any trouble getting our clients financed. If you have had any problems in this area, give us a call. (598-3200, or (800) 677-MOVE(6683).

Bottom line: Better Buy Now.!!

THE BROOKINGS INSTITUTE SAYS COLORADO SPRINGS IS POISED FOR RECOVERY

According to a recent study by the Brookings Institute, Colorado Springs is ninth among the nation’s 100 largest metropolitan areas in a ranking looking at the resiliency of an area’s industries and the gap between the education of its workforce and the needs of its employers.

Jonathan Rothwell, a Brookings senior research analyst and the author of the report, stated, “There is no reason Colorado Springs shouldn’t bounce back once the nation’s economy begins improving. Colorado Springs has one of the best balanced economies between workers’ education related to the needs of their jobs”.

LATEST STATISTICS FOR COLORADO SPRINGS

The most recent Sales and Listing report of statistics for the Pikes Peak area, published by the Pikes Peak Association of Realtors, shows that home sales in August jumped from a year ago by the biggest percentage in nearly 1 ½ years.

Sales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. This was the largest increase since March of 2010, when sales benefited from the federal tax credit for first-time homebuyers (A program which expired in June of 2010).

The August increase followed an 11.9% gain in July, the first indication of improvement after sales fell in 10 of the previous 12 months.

Most experts agree that the current rise in sales is due to the low interest mortgage rates which are currently available.

Click here for the latest Sales and Listing statistics for the Pikes Peak area

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

We thought you might be interested in the Winner of the Top Ten Dumbest Criminals of 2010

THE WINNER!

A Charlotte, NC, a man purchased a case of very rare, very expensive cigars. He proceeded to insure them against, among other things, fire.

Within a month, having smoked his entire stockpile of cigars and without having made even his first premium payment on the policy, the man filed a claim against the insurance company. In his claim, the man stated the cigars were lost "in a series of small fires."

The insurance company refused to pay, citing the obvious reason that the man had consumed the cigars in the normal fashion. The man sued....and won.

In delivering the ruling the judge agreeing that the claim was frivolous, stated nevertheless that the man held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure against fire, without defining what it considered to be "unacceptable fire," and was obligated to pay the claim.

Rather than endure a lengthy and costly appeal process the insurance company accepted the ruling and paid the man $15,000 for the rare cigars he lost in "the fires." After the man cashed the check, however, the company had him arrested on 24 counts of arson. With his own insurance claim and testimony from the previous case being used against him, the man was convicted of intentionally burning his insured property and sentenced to 24 months in jail and a $24,000 fine.

The moral of the story?

Darned if we can tell.

August 22, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HOMEOWNERSHIP: IT’S STILL THE AMERICAN DREAM

Fannie Mae and Freddie Mac just released the results from their NATIONAL HOUSING SURVEY. We thought you might like to see some of the results.

First, let’s look at Rent vs Buy:

•  63% of renters have aspirations of someday owning their own home
• 72% of renters think that owning is superior to renting
• 95% of homeowners see homeownership as a positive experience.
• 96% of homeowners live in a single-family residence, while 46% of renters live in a multi-unit building

The survey also shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, were:

1. It means having a good place to raise children and provide them with a good education
2. It provides a structure where you and your family feel safe
3. It allows you to have more space for your family
4. It gives you control of what you do with your living space (renovations and updates)

How about homeownership as an investment? Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what survey respondents had to say about that:

• 65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
• 56% believe that homeownership has more potential as an investment than any other traditional asset class.
• 69% think that now is a good time to buy a home (this number has increased in each of the last two quarters).

The bottom line is that, even in difficult times, Americans still realize the value of homeownership.

SO, I’M THINKING OF SELLING MY HOME. WHAT SHOULD I BE AWARE OF??

If you want to sell your home right now, there are some factors you should be aware of. First of all, our current real estate market is, to use a technical term, “lousy”. Why did this happen and how does it affect you?.

• As a result of the national economic decline, foreclosures and short-sale homes have flooded the real estate market, thus creating a temporary oversupply. When there is an oversupply of a product or service, prices tend to go down. …and homes are no exception to that rule.
• Again, as a result of the general economic decline, this year’s county assessments of property values show lower values for homes, thus impacting our pricing of homes for sale. The bottom line is that home prices have gone down from their peak of about five years ago.
•  This temporary oversupply has allowed prospective Buyers to be very selective about the price and condition of any home they look at. What this means to you, as a Seller, is that, if you want to sell right now, you will have to price your home realistically and make sure it is in great condition. Your house will not sell if it is overpriced (compared with your competition) or if there is deferred maintenance, peeling paint, dirty windows, worn carpeting, etc.

All of this means that you will probably have to invest some money in repairing or remodeling your home to bring it up to the quality that today’s Buyers are looking for.

Because of these factors, many homeowners have decided not to sell right now, but rather, to stay put, until prices rebound. They are adding features, finishing basements, remodeling, etc. Some are doing this to prepare their home for eventual sale, Others are doing it to upgrade their present home so they can stay in it, rather than selling it.

Call us now to discuss your options. We are very familiar with every neighborhood in this area and we will be happy to discuss with you the current market value of your present home, the relative merits of selling now, selling later, buying your next home now and converting your present home into an investment property, etc., etc., etc.

Call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

OK, I THINK I’LL HOLD ON TO MY PRESENT HOME FOR NOW …..BUT TELL ME ABOUT INVESTMENT PROPERTY. IS IT REALLY A GOOD IDEA?

There’s a great window of opportunity right now for acquiring some investment property. Why right now? …Because:

• Prices are low …probably lower than you will ever see again
• Rates are low… probably lower than you will ever see again
• The inventory of available homes is very high. You have your ‘pick of the litter’
• The high volume of people who, prior to foreclosure, were homeowners, but who are now renters has resulted in very low vacancy rates.
• Lenders are starting to tighten lending requirements and loans will soon become more difficult to obtain
• As of October 1, 2011, FHA maximum loan amounts will drop from $325,000 to $272,800 for most communities in the US, including Colorado Springs.

The Wall Street Journal, Wed. Aug 17, 2011 stated, “Prices are so low that more investors are scooping up foreclosed properties and renting them out. Investors can cover their monthly costs and make an 8% -12% profit pretty easily. We haven’t seen that in 20 years”.

As a matter of fact, the profit can easily be greater than that.

As an example, let’s take a look at what we discussed with one of our clients just last week, as we helped him build his retirement portfolio with an investor property. The following figures are based on realistic estimates in our local; market.

Purchase price                          $200,000

Down Payment                              50,000

Loan Amount                            $150,000

Using today’s investment interest rate of only 4.5% for non-owner occupied property, on a 30-year fixed loan (and assuming a tax bracket of 33%), here’s how the numbers worked out:

Monthly payment P&I                $760

Estimated taxes                       $120

Estimated Insurance                  $  80

Total Monthly Payment            $960

Typical one-year tax deduction

            Interest deduction          $6,700

            Estimated property tax  $1,440

            Total deduction            $8,140

Annual Income-tax savings        $2,686

Net cost of the property

            Monthly payment           $ 960

            Less tax savings           $(224)

            Net cost                        $736

The monthly rental net income (after estimating repairs and vacancies) would be $1,054

On a monthly basis, that works out to:

            Income                                     $1,054

            Loan cost                                 $ (736)

            Income before depreciation          $  318

            Depreciation per month               $ (390)

            Actual loss per month                   ($72)

Further, the estimated annual depreciation would be $4,675.

If you held this property for 10 years, assuming typical inflation and appreciation, you could expect an average annual growth of 3% per year. Thus, the market value would go to $260,000.

At the end of the ten years, your balance on the loan would be at $120,134 and your equity would be $139,866 from your original investment of $50,000. That’s 27.97% growth per year as your rate of return.

Finally, in the event that there is absolutely no growth for ten years, i.e. the economy does not grow at all, your rate of return would still be approximately 16%. In a dead economy, that would be fantastic !!

The icing on the cake is that these figures don’t even take into account your annual tax benefits/deductions. …That alone puts an additional $8,140 per year in your pocket.

And you thought Stocks were the way to go

If you would like us to go into more detail about these numbers, please call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

MARK YOUR CALENDAR NOW FOR THE 15th Annual Southern Colorado Economic Forum

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum wiill be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

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 podcast for this month …

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

Top Ten Things Never Before Said by a Presidential Candidate

10. "Vote for me or I'll slash your tires"

9. "Forget universal health care -- I'm buying every American an XBox"

8. "In a crisis I ask myself, 'What would Regis Philbin do?'?

7. "I'd give you my plan for economic recovery if I actually had one"

6. "If your last name begins with 'M' through 'Z,' sorry -- your taxes are doubling"

5. "We're gonna cut the deficit by selling North Dakota to Canada"

4. "I have tons of experience from being president of the Aston Kutcher fan club"

3. "Lady, that is one ugly baby"

2. "When I'm president, I'm putting Elvis on Mt. Rushmore"

1. "Read my lips: I plan to fire half the people in Washington"

August 15, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

IS NOW A GOOD TIME TO BUY YOUR NEW HOME?

LET'S LOOK AT THE FACTS

No matter what news outlets you read, the scary headlines about the housing market may have convinced you to postpone the purchase of your new home until the market "settles down".

Unfortunately, if you have been influenced by these depressing news stories into postponing your home purchase, you will be missing out on the opportunity of a lifetime.

Let's take a cold, hard look at our local housing market to see what the facts are.

HOW IS COLORADO SPRINGS DOING ?? 

Actually, compared with most other parts of the country, Colorado Springs is doing quite well. The national statistics from the National Association of Realtors and the local statistics from the Pikes Peak Association of Realtors show that, over the past four years, i.e. the period that encompasses the much-publicized decline in the housing market, the national median home price, according to NAR, has gone from $223,500 in July of 2007 to $171,900 in July of 2011. That's a decline of approximately 23%.

However, during that same period (July of 2007 to July of 2011) our local median home price has only gone from $227,000 to $194,000. That's a decline of approximately 10%. .that's 13% better than the national average for home prices (and much, much better than your retirement fund has done)

The bottom line is that "all real estate is local", and therefore, the headline that laments that "You can buy a home in Detroit for $50", doesn't really have any meaning in our local market. Our prices have held up remarkably well. In fact, they appear to have 'bottomed out' and have started to climb again.

AREN'T FORECLOSURES STILL CAUSING A PROBLEM??

In fact, the worst of the foreclosure problem came two years ago. Since then, most of the 'at risk' Homeowners have been weeded out. Foreclosure filings in El Paso County in the second quarter of 2011 dropped 36.1% from the same period in 2010 and first-half foreclosure sales were down 15.6% from last year. As a reflection of this drop, new construction is picking up. Single-family building permits are up and El Paso County is seeing more construction activity than any other major metro area in the state.

However, one significant effect that foreclosures are having on the market is that everyone who has lost a home through foreclosure has become a renter. This has resulted in a very low local vacancy rate, an increase in rents and a rise in the sale of investment properties. You may never have thought of yourself as a landlord, but you should give some serious consideration to purchasing a rental property. Prices are low, Interest rates are at record-lows and there is a big demand for homes and apartments, so rents are rising rapidly.

WHAT IS HAPPENING WITH MORTGAGE RATES? ......OR...........

HOW MUCH HOUSE WILL MY MONTHLY P&I PAYMENT GET ME ?? 

Here's some great news for prospective Buyers. This week, mortgage rates have gone down to as low as 3.875% for a 30 year, fixed-rate mortgage. As Karen Moore of Mortgage Loan Originator Residential Mortgage of Colorado, one of our preferred lenders points out, "These rates are lower than I have seen in my 29 years of mortgage banking".

To put these rates into real numbers, in 2007, the monthly principal and interest payments on a $200,000 home with a 6.5% mortgage was $1264.14.Today, a $200,000 home with an 3.875% mortgage would have a P&I monthly payment of only $940.47. That's a savings of $323.67, or around 25% less expense every month for the lucky HomeBuyer who decides to buy right now.

Take a look at how much your monthly Principal and Interest payment would buy at today's mortgage interest rate of 3.875%.

Approximate loan amount                       Monthly P&I                          

$212,659                                                           $1,000

$255,190                                                           $1,200

$318,988                                                           $1,500

$382,786                                                           $1,800

Keep in mind that these prices are based upon the 3.875% rate for Owner-occupied properties, but the current Investment property rate is still a very low 4.625%. It's not unusual that, considering today's high rents and the depreciation tax write-off, an investment home can generate enough income to pay for itself. In other words, the Owner has a "free" home which can be held forever, or, can be sold at a profit when prices rebound.

So, there may not be any such thing as a "free lunch", but you can now buy a "free house".

Surprised, aren't you?

Call us at (719)598-3200 or (800)677-MOVE (6683).

WHAT ABOUT THE APPRAISAL PROBLEMS WE HAVE BEEN READING ABOUT ?

You are probably referring to the media stories about real estate deals that have fallen apart because of "low" appraisals. Here, again, the headlines don't tell the whole story.

The reason why appraisals can present a problem is that many homes currently on the market are overpriced, either because of inadequate market research by the Realtor, or because the Seller insisted on an unrealistic listing price. Whatever the reason, the fact is that an overpriced house will not sell.

Because we do our research, have extensive knowledge of every neighborhood in the Pikes Peak area and work with our local appraisers, we have had absolutely no problems with appraisals creating closing problems.

Take a minute to think about all of these facts and then call us to discuss our local market, the outlook for real estate in the Pikes Peak area, the opportunities for acquiring your next home or investment property or any other questions you might have about Real Estate in general. Just dial (719)598-3200 or (800)677-MOVE (6683).

We're looking forward to hearing from you. 

NEW MAYOR INITIATES AN "UPDATE EMAIL" TO KEEP US INFORMED

Colorado Springs Mayor Steve Bach has introduced a free email report to keep us advised of the status of the city, budgeting problems and priorities, etc. To see a copy of the recent report, Click here. Or, to get on the mailing list, send your email address to:  stephenbach@comcast.net.

Great idea, Steve !!!

HOW WILL THE CREDIT DOWNGRADE AFFECT MORTGAGES?

"Not much", says Lawrence Yun, Chief Economist & Senior Vice President of the National Association of Realtors. Mr. Yun says that mortgage rates might be impacted by 30 basis points at maximum by the recent S&P downgrade of the U.S. credit rating. He states that it is also possible that the downgrade might have absolutely zero impact, if global bondholders do not care for S&P's opinion.

In a statement issued on August 8, 2011, Mr. Yun points out that, "A 30-year fixed rate rising from 4.3% to 4.6% will not change the housing game that much, but a return to normal underwriting standards and a boost to consumer confidence will be the true game changer".

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 podcast for this month .

LATEST SALES AND LISTING STATISTICS

 To see the latest Sales and Listing statistics from the Pikes Peak Association of Realtors, Click Here

JOKE OF THE WEEK

"How to Succeed in Business" Advice from an Investment Banker

An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The Banker asked how long it took to catch them. The Fisherman replied, "Only a little while." The Banker then asked, "Why didn't you stay out longer and catch more fish?" The Fisherman said, "With this I have more than enough to support my family's needs." The Banker then asked, "But what do you do with the rest of your time?" The Fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."

The American scoffed, "I am a Harvard MBA and I could help you. You should spend more time fishing; and with the proceeds, buy a bigger boat: With the proceeds from the bigger boat you could buy several boats. Eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor; The next step would be to open your own cannery. You would control the product, processing and distribution. Obviously, at that point, you would need to leave this small coastal fishing village and move to the city, where you will run your ever-expanding enterprise."

The Fisherman asked, "But, how long will this all take?" To which the Banker replied, "15 to 20 years." "But what then?" asked the Fisherman. The Banker laughed and said, "That's the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions." "Millions?...Then what?" The Banker replied, "Then you could retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."

This story illustrates the truth of the old saying, "Give a man a fish, and he will be able to eat for a day. Teach a man to fish and he will be able to sit in a boat and drink beer for the rest of his life".

August 8, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THINKING OF BUYING A HOME ?  HERE'S SOME REASONS FOR DOING IT RIGHT NOW

 If you have been delaying buying that new home, either as a residence or as an investment, here are a couple of reasons for getting off the dime and making your move right now:

• Mortgage rates and fees are on the verge of going up. Although you can now get a loan for as low as 4% - 4.25%, that's going to change soon. S&P warned that they may downgrade Fannie Mae and Freddie Mac and that will push rates up. Also, loan fees are going up and credit requirements are tightening. The bottom line is that, if you qualify for a loan today, you had better strike, while the iron is still hot, or, you might have to pay a higher rate tomorrow.  
• If you have been delaying your decision to buy and home prices take another downward slide, you might not end up with as much equity in your present home, thus making it more difficult to qualify for a loan
• Inflation is an inevitable consequence of printing more money ..(and we have done a lot of that lately). The coming Inflation will raise all prices, including home prices.

 And, as far as buying a home as investment property is concerned, remember that, "Everybody has to live somewhere". With homeownership falling (65.9% in 2011 vs. 69.2%in 2004), because of foreclosures and tightening credit requirements, more people are now being forced to rent. This creates an opportunity that has persuaded many smart investors to buy rental property.

 As we emphasized in our last issue, a lot of "Big Money" is getting into the investment property game. Buying foreclosed properties has long been an activity for mom-and-pop investors, but now hedge funds, private equity firms, pension funds and university endowments are dipping into that market. They see that, within the last couple of years, rentals have gone from 20% to 30% of the housing market and they see that the double-digit returns shown by investment property are much better than the low yields which other income investments are showing.

 Keep in mind, also, that Colorado Springs has historically out-performed the rest of the country in real estate appreciation.

 Perhaps you should discuss this option with us. It could improve your entire investment portfolio.

 Call us at (719) 598-3200 or 1-800-877-MOVE (6683)

WAITING FOR 'JUST THE RIGHT MOMENT' TO SELL YOUR HOUSE? READ ON

If you have delayed putting your house on the market until there isn't as much competition (i.e until the inventory of available homes gets smaller), it looks like you might have a long wait. Many experts are predicting that 2011 will see a jump in inventory, as banks dump more foreclosures on the market.

To quote from the KCM blog, here are some of the industry publications that are predicting an increase in inventory and a decline in prices:

• BLOOMBERG BUSINESSWEEK - "Housing prices will decline 6% - 8% nationally, with 6 - 7 million more foreclosures yet to come".
• YAHOO FINANCE - "Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%"
• HOUSING WIRE - "JP Morgan analysts estimate a further drop of 4% in home prices from the first quarter of 2011 to a new bottom next year."
• DS NEWS - "Most analysts expect further declines to characterize the later parts of the year and possibly extend into next year, largely because of the huge supply of foreclosures on the market"

The bottom line for prospective Sellers is that waiting might be a bad strategy. By waiting, if prices dip, your equity could go down and the number of competitors for prospective Buyers could go up.

Bottom line: If you are thinking of selling your home in the next 12 months, you would probably do much better if you sold sooner, rather than later.

Call us at (719) 598-3200 or 1-800-877-MOVE (6683)

LATEST SALES AND LISTING STATISTICS

The latest report from the Pikes Peak Association of Realtors shows that, :

• Number of Sales in July 2011 was up 11.9% over July of 2010 (798 vs 713)
• Prices in July 2011 were down 5.2% from July 2010
• Median prices in July, 2011 were up 7.5% from June, 2011 ($198,950 vs $185,000)
• 80% of all local sales were for homes under $299,999
• There are now 20.8% fewer homes on the market than there were last year.

If you would like to examine all of the local housing statistics for July, 2011, please click here and. if you would like to discuss any aspect of the PPAR report, please give us a call at (719) 598-3200 or 1-800-877-MOVE (6683).

THE PARADE OF HOMES IS NOW OPEN

This year's Parade of Homes opened on August 5^th and features 33 homes and 25 home builders. The main sites are located at Gold Hill Mesa, Cordera and Flying Horse.

We're excited to see that Homebuilders are confident that the market is coming back and we're looking forward to seeing you and the beautiful new homes at the Parade.

If you would like any information about the Parade of Homes, just give us a call at 719-598-3200 or 800 677-MOVE (6683)

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.

Finally, just click on the icon at the top of this email to listen to my podcast for this month.

JOKE OF THE WEEK

After sitting through the recent interminable Football Hall of Fame ceremonies, we were reminded of an old joke:

Three sons left home, went out on their own and prospered. Getting back together, they discussed the gifts they were able to give their elderly mother.

The first son said, "I built a big house for our mother."

The second son said, "I sent her a Mercedes with a driver."

The third son smiled and said, "I've got you both beat. You remember how mom enjoyed reading the Bible? And you know she can't see very well. So I sent her a remarkable parrot that recites the entire Bible and speaks three languages. It took elders in the church 12 years to teach him. He's one of a kind. Mama just has to name the chapter and verse, and the parrot recites it."

Soon thereafter, mom sent out her letters of thanks:

"Milton," she wrote son #1, "The house you built is so huge. I live in only one room, but I have to clean the whole house."

"Gerald," she wrote son #2, "I am too old to travel. I stay most of the time at home, so I rarely use the Mercedes. And the driver is so rude!"

"Dearest Donald," she wrote to her third son, "You have the good sense to know what your mother really likes. The chicken was delicious."

Donald immediately called his mom:

"Good Grief, Mom. That wasn't a chicken. It was a very valuable parrot. He could recite the whole bible and speak three languages".

Mom responded, "My Goodness !!! ..So why didn't he say something??

August 1, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LEMONADE, ANYONE ????

From time to time, our friends kid us about the fact that our Enewsletter always manages to maintain a positive view of the housing market. 

"With all the news about housing sounding so bad, how do you always manage to sound so enthusiastic about our local housing market", they ask.

Well, let's take a look at what's happening in housing and see if the "bad" news is really all "bad", or, can it actually be "good" news, depending upon how you react to it.

In other words, maybe we have to make lemonade out of the lemons that the market has dealt us in the past few years.

True, the news we read in the papers sounds pretty grim. For example, here's a few housing headlines from the past week:

•  HOME SALES, PRICES REFLECT MALAISE - The Wall Street Journal, July 27
• HOUSING PRICES RISE SLIGHTLY, BUT REMAIN WEAK - NY Times, 7-27-11
• GROWTH SLOWS THROUGHOUT U.S. -Gazette, July 31, 2011
• HOUSING SQUEEZE FAILS TO LOOSEN UP- The Wall Street Journal, July 25.

(By the way, this last headline fits right in with our lemonade analogy)

Wow, that paints a pretty bleak picture, doesn't it? But now, let's look at some of the positive aspects of the data that will illustrate there's a fantastic opportunity waiting for you in today's market:

•  Everybody has to live somewhere !!!!!, That means they either buy or rent their home.
• While the population of the Springs has remained fairly stable, the percentage of people who own their homes has gone down (65.9% in June.the lowest level since 1998) and the percentage of people who rent has gone up accordingly. What this means is that the individuals and families who have lost their homes to foreclosure have now become RENTERS !!
• Vacancy rates for apartments and single-family homes are way down and going lower.
• Because vacancy rates are down, rents are going up (In many cases, mortgage payments are cheaper than rent, for the same property)

So, what does this mean to our readers who are thinking of selling their homes?

•  If you don't have to move, or don't want to move right now, just wait for the market to come back (and it will, eventually). Relax, have a glass of lemonade and enjoy life !!!
• If you have to sell right now because of a job transfer, or a change in your family finances, be prepared to price your home realistically, based upon today's market. True, you will probably have to sell at a price lower than you would have gotten three years ago... however, your new home will be a real bargain. ..and remember, for every dollar you "lose" when you sell at today's prices, you will gain one back when you buy your new home.
• If you just want to "move up" to a bigger/nicer home in this area, but don't want to take a 'loss' on the sale of your present home, consider renting out your home. (You might even make more from the rent than you presently spend on mortgage payments). Later, when the market comes back, you can either sell your present home or continue to rent it out. But, before you decide to sell it, keep in mind that there are several financial benefits to being an "investor". (Call us to discuss this. You might be surprised how owning a rental property can improve your retirement plan).

 "OK, Mr. Lemonade. What if I'm a Buyer? "

Well, if you're a Buyer, you are looking at a fantastic opportunity. Some of the reasons for buying your home right now are:

•  Prices are very low ..probably as low as they are ever going to be.
• Interest rates are very low .probably as low as they are ever going to be.
• Down payment requirements are very low .probably as low as they are ever going to be.
• Inventory is very high .probably as high as it is ever going to be.

 (Come to think of it, those also sound like good reasons for buying investment property.)

And, if you need further assurance, just check out the following recent articles.

The Wall Street Journal: Why It's Time to Buy

CBS Money Watch: Why the Time to Buy is Now

Forbes Magazine: 9 Reasons to Buy a House Now

National Public Radio: For Many, It's Still a Good Time to Buy a Home

The bottom line: Call me at 719-598-3200 or 800 677-MOVE (6683) and we'll have a glass of lemonade and talk about your new home.

THE PARADE OF HOMES OPENS ON AUGUST 5^TH

This year's Parade of Homes opens on August 5^th and features 33 homes and 25 home builders. The main sites will be located at Gold Hill Mesa, Cordera and Flying Horse.

We're excited to see that Homebuilders are confident that the market is coming back and we're looking forward to seeing you and the beautiful new homes at the Parade.

If you would like any information about the Parade of Homes, just give us a call at 719-598-3200 or 800 677-MOVE (6683)

See you there.

AND HERE'S SOME MORE GOOD NEWS

Sorry to be so cheerful, but the good news just keeps rolling in. Here are some examples:

•  CoreLogic's July report says that home prices are stabilizing and the number of foreclosures is falling.
• Standard & Poor's Case-Shiller index of home prices in the top 20 metropolitan areas shows a 1% increase.
• On the local scene, WalMart's new $100 million dollar data center will be built near Voyager and Interquest parkways. The center will require an additional $50 - $100 million in machinery and equipment and will initially employ about 30 people with salaries of $30,000 to $70,000. Construction will begin in October and will be completed in late 2012.
• Kiplinger's Personal Finance magazine has named Colorado Springs as #4 in their list of 'Best Value Cities' The list cites "low living costs (8% below the national average), strong economies, great amenities and the high number of 'creative class' workers".

Colorado Springs is profiled in the September issue of Kiplinger's magazine and online at www.kiplingers.com/links/bestcities.

WANT TO KNOW MORE ABOUT HOW COLORADO SPRINGS IS DOING? THE "QUE" WILL TELL YOU

The Southern Colorado Economic Forum issues a quarterly report on our local economy. This 19 page report, called the "QUE" (Quarterly Updates and Estimates), contains graphs and statistics about every facet of our local economy and is invaluable in analyzing our economic progress. The most recent report shows that our economy is struggling to rebound, but slowly.

The "QUE" housing market statistics indicate that our prices and inventory are stabilizing.

Fred Crowley, chief economist for the Forum, states that we are on our way back up, but jobs will still be the critical factor in our recovery.

For a complete copy of the "QUE", Click here.

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 37 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. 

LATEST SALES AND LISTING STATISTICS

Click here for the most recent Sales and Listing statistics from the Pikes Peak Area Realtors Association

JOKE OF THE WEEK

To heck with news about the deficit. Deficit, Schmeficit, Who cares. The important news is that football is back. We thought you might enjoy the following story that illustrates what football means to the typical fan:

A guy named Bob receives a free ticket to the Super Bowl from his company. Unfortunately, when Bob arrives at the stadium he realizes the seat is in the last row in the corner of the stadium he's closer to the Goodyear blimp than the field. About halfway through the first quarter, Bob notices an empty seat that was 10 rows off the field, right on the 50 yard line. He decides to take a chance and makes his way through the stadium and around the security guards to the empty seat.

As he sits down, he asks the gentleman sitting next to him, "Excuse me, is anyone sitting here?"

The man says "No".

Now, very excited to be in such a great seat for the game, Bob again inquires of the man next to him, "This is incredible! Who in their right mind would have a seat like this at the Super Bowl and not use it?"

The man replies, "Well, actually, the seat belongs to me, I was supposed to come with my wife, but she passed away. This is the first Super Bowl we haven't attended together since we got married in 1965."

" Wow, that's really sad," says Bob, "but still, couldn't you find someone to take the seat? .maybe  a relative or close friend?"

No," the man replies, "they're all at the funeral."

July 18, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LOCAL SALES TAX COLLECTIONS UP FOR 20^TH MONTH IN A ROW

Sales Tax collections are a good indicator of the state of a community's economy. Sales and use taxes fund more than half of the city's annual budget for police and fire protection, roads and other services.

The good news is that our local sales tax collections have gone up for the last 20 months in a row.

Categories that showed the largest increases in June were Hotels and Motels, up 15.04% from a year earlier, utilities, up 14.54% and grocery stores, up 8.61%. The four categories with decreases were furniture, appliances and electronics, auto dealers and building materials.

However, the sales tax from medical marijuana jumped 67.87% from a year earlier to a record $71,005 and total new record of $305,454 so far this year. That's a new high. (Pardon the pun).

Who says our economy is going to pot?

FREDDIE MAC SEES BETTER DAYS AHEAD IN HOUSING

Freddie Mac's chief economist is optimistic that the housing market and economy will improve in the second half of 2011.

Quoted in HousingWire, June 27, 2011, Freddie Mac Chief Economist Frank Nothaft said mortgage rates will likely remain historical lows of between 4.5 percent and 5 percent for the remainder of the year. Also, he expects more buyers to stop waiting on the sidelines as recent price drops in home prices have improved affordability.

Nothaft said consumers' uncertainty about the economy has caused them to delay home purchases and other "big-ticket items."

"Some potential buyers who have the means to buy are awaiting clearer signs that home values have firmed," Nothaft says.

But Nothaft says they should be getting their signs in the second half of the year, with projected job gains, and a growing, improved economy.

"Even though near-term concerns over income and sales growth are restraining consumer spending, business hiring, and new building, a number of positive signs in the economy indicate that growth will continue and is likely to accelerate in the second half of this year," Nothaft said. "Look for a gradual improvement in housing activity in the coming year."

Give us a call to discuss our local market and to explore the great opportunities for investment property in our current market at (719) 598-3200, or, 800 677-MOVE (6683).

GEARING UP FOR A HOUSING COMEBACK

Realtor magazine points out that no one knows for sure when residential real estate will officially "recover," but a turnaround may not be far off. When it comes, practitioners and brokers who spent the downturn fundamentally improving their business will be in the best position to take advantage of the upswing, a panel of real estate executives said at the recent REALTORS® Conference & Expo.

"We're in the seventh inning of a full-blown housing correction," said Ron Peltier, chair and CEO of HomeServices of America. "I think what's happening is that all of the nonsense is getting pushed out of the market. If we understand that, we can be better operators."

At this point, there are signs of improvement. For example, as Realogy President and CEO Alex Perriello pointed out, there has been a significant increase this year in home sales over $500,000 and in all-cash transactions. "We're seeing the value buyer getting back into the market; these are people who are well-off financially and very thoughtful. What that tells me is that the smart money is calling bottom," he said.

Peltier added that, for Realtors, deep knowledge of their local market is critical. But one thing the panel repeatedly emphasized was a commitment to helping out consumers, even when there isn't an immediate financial benefit.

"As REALTORS®, we can do a lot to help keep people in their homes. If you do a good job when people need you, those people will be your customers for life. That's your dividend."

Well said, guys. Those are our sentiments, exactly.

COLORADO SPRINGS NEW MAYOR UNVEILS NEW P.R. PUSH .AND IT'S GREAT

On June 30^th, at the Colorado Springs Chamber lunch, we had the opportunity to see what our new mayor and city council have in mind for their push to attract new businesses to our city. .and it was impressive.

First of all, the website, www.springsgov.com, was very well designed, very attractive and very impressive. The link to Springs TV on Demand took us to a beautiful, four-minute video production, "The Spirit of the Springs". This video was developed by the Public Relations department of the City of Colorado Springs and is designed to make everyone aware of our great city, our magnificent attractions, our multiple activities and our unbeatable lifestyle.

If this video doesn't attract new visitors and businesses to our city, nothing will.

Some of the other various links on the website are:

• News (and, if the sheer number of news items on the site doesn't impress you, I'll eat my hat)
• Events (There's something to do every day in our city)
• "I Want To" with links to everything from applying for a building permit, checking airport flight information, obtaining a free prescription discount card, finding Fire Station locations, etc., etc., etc..
• Web Links (Check out Tourism and Attractions .Wow !!.New York City has nothing on us)

We strongly recommend that our readers click on www.springsgov.com to see how our new city administration is hitting the ground running, as they try to attract new visitors and businesses to our unique city. Send this link to your out-of-town friends and relatives and then stand back as the requests to visit you start coming in.

If this is an example of what our new administration is going to do to help build our economy, we can hardly wait to see what will happen next.

Nice going, Mayor Bach.!!!

As a matter of fact, the new Colorado Springs promotional film has us so excited about living here that we will take some time off, just to explore some of the local attractions that we found on the site and didn't even know about .This means that next week, there will be no Weekly Update from Harry Salzman. Sorry, but we'll see you again on August 1, 2011.

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.

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

JOKE OF THE WEEK

Considering the heatwave that is sweeping much of the country, we thought the following heat-related jokes might be appropriate:

Rumor has it that the Florida Marlins will be renamed the "Humidity" so that fans in Florida will be able to say, "It's not the Heat that's so bad, it's the Humidity."

The U.S. has only three hurricane warning centers - Coral Gables, FL, Guam, and Honolulu, HI (recently completed). All three have faced Category 4 hurricanes in the past month. Which only goes to show: If you build it, they will come!

I really don't understand why the federal government was so slow to send aid to the areas hit by Hurricane Andrew. After all, both Florida and Louisiana have oil.

It was so hot today I saw a robin picking earthworms out of the ground with a pair of tongs.

What happens when the smog lifts in California? UCLA.

How to predict weather in Seattle: If you can't see Mt. Ranier, it's raining. If you can see Mt. Ranier, it's about to rain.

An honest weatherman would say, "Today's forecast is bright and sunny with an 80% chance that I'm wrong."

First cave man to 2nd cave man: "I don't care what you say. We never had such unusual weather before they started using bows and arrows."

Nate: "Hey, what's the weather like out there?" Kate: "I don't know. I'll tell you when it clears."

It's a bit "muggy" in New York today.

There's a technical term for a sunny, warm day which follows two rainy days. It's called Monday.

A postcard home: The weather is here. Wish you were beautiful.

A Viking invader is trudging up the beach in the pouring rain. He sees an Englishman and says, "So this is England. What's it like?" The Englishman replies, "Well, if you like the weather, you'll love the food."

A weather forecaster took a job in another part of the country. When asked why he transferred he replied, "The weather didn't agree with me."