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."

July 11, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

YOU MAY BE ABLE TO AFFORD YOUR NEW HOME TODAY  .BUT WILL YOU BE ABLE TO AFFORD IT TOMORROW?

The Wall Street Journal (July 26, 2011) warns that, as of October 1, 2011, many prospective homebuyers will be frozen out of the home market by the changes which will go into effect on that date.

On October 1, 2011, maximum loan limits for loans backed by FHA will decline in around 600 counties throughout the US and maximums for loans backed by Fannie Mae and Freddie Mac will decline in around 250 counties. In El Paso County, the maximum available FHA mortgage amount will be reduced from $325,000 to $271,050, a reduction of $53,950. (And, if history is our guide, conventional and VA loans will probably also reduce their maximums soon thereafter)

Some lenders are already warning borrowers that they will stop accepting applications for loans that exceed the new limits much sooner than October 1, to ensure the loans are funded before the cutoff date.

Homeowners whose mortgages are too big to qualify for a government-backed mortgage will probably have to seek a "jumbo loan" which often carries a higher interest rate as well as a higher down payment, sometimes more than 20%

To make matters worse for prospective Home Buyers, there are also widespread rumors that FHA down payment requirements will soon be increased from 3.5% to 5%.

And, if that's not bad enough, credit requirements are tightening.

The result of all of these changes will be that, after October 1, 2011, many prospective homeowners will no longer be eligible for FHA loans and will have to settle for renting, for the foreseeable future.

All of these changes reflect the fact that the government is getting out of the housing market, where it currently stands behind more than nine out of ten new mortgages.

If you have been waiting for the "perfect time" to buy your new home, these new regulations might serve as a warning that you had better make your move now.

Call us to discuss it at 598-3200 or 800-677 MOVE (6683). 

HEY, MAN, EVERBODY HAS TO BE SOMEWHERE !!

That's the punch line to an old joke, but it also applies to our present rental market. Every family that has been foreclosed on, or has been forced to short-sell their home, has to be somewhere. So, not by choice, they have become "New Renters".

Unfortunately, these "New Renters" can't afford the down payment on another home, their credit is bad and the new, tighter regulations that are coming to us in October make it even less likely they will be able to buy another home in the near future.

Their plight explains why local vacancy rates are so low and why more and more Investors are buying rental properties.

If you would like to discuss what investment property can do for your future, now is the time to call us. Call 598-3200 or 800-677 MOVE (6683). 

FORBES PUTS COLORADO SPRINGS IN THE TOP 30 CITIES FOR BUSINESS

Every year, Forbes measures the top 200 U.S. cities for their list of "Best Places for Business and Careers". This year, Colorado Springs comes in at #30, beating out such cities as Albuquerque, Atlanta, New York, and Indianapolis.

This survey was taken before our new mayor and city council kicked off their aggressive push for new businesses, so we are expecting to be even higher on next year's list.

For a complete list of the top cities, click here.

FIRST CHAMBER LUNCHEON WITH OUR NEW MAYOR IS A RECORDBREAKER

On Thursday, June 30^th, the Colorado Springs Chamber of Commerce held their annual State of the City Luncheon. This marked the first time that the luncheon was attended by our newly-elected Mayor, Steve Bach.

There were a record number of Chamber members in attendance which reflected the widespread enthusiasm expressed by everyone in attendance. The Mayor commented upon the fact that he is constantly receiving calls and emails from every segment of our population, offering to help him with whatever is necessary to stimulate new jobs for our city. He pledged to work with the Chamber and the Economic Development Council to attract new businesses and jobs to our community.

The mood of the meeting was very upbeat and the city council members in attendance echoed that positive attitude. As Councilmember Brandy Williams stated, "I am most proud of the exciting collaboration between the city, the county, the mayor, the Chamber the community and others".

To sum up the meeting, it looks like there are some great years ahead for our city.

MORE INTERESTING FACTS FROM "ENGAGE -COLORADO SPRINGS"

Here are some more good reasons for living in Colorado Springs:

The national cost of living index is 100, but the cost of living index in Colorado Springs is 92.

Source: C2ER-COLI 1^st Quarter 2011

Business Climate taxes:

MN       9.8%

CA        8.84%

OR       7.6%

ID         7.6%

NM       7.6%

NY        7.1%

AZ        6.9%

UT        5%

CO       4.630%

Source: Federal Tax Administrators Internet, January 2011

*Note: Engage is a supplement to the Colorado Springs Business Journal and is available from CSBJ. (719) 634-5905. www.csbj.com

OUR LOCAL STATISTICS CAN HELP YOU MAKE YOUR PURCHASING DECISION

Every week, we publish the PPAR statistics which cover our local real estate market. These statistics can assist you in analyzing our market by presenting a huge number of vital facts, such as listing and selling prices in each of our local neighborhoods. As of June 30, 2011, for example, these stats show that:

• There were 872 home sales in the Pikes Peak region. That's the highest number of homes sold since June, 2010, when the federal tax credit was still available.
• The average sales price in June, 2011, was @215,741, up 1% from the previous month, however, it was down from $237,318 last June, before the tax credit expired.
• The "average days on the market" is now 94 (Sellers, take note).
• Overall, the average percentage of selling price to listing price in June was 97.6%, which indicates that Sellers are now pricing their home more realistically than they did in past years.

CLICK HERE to see the complete June PPAR report. Then, if you would like to discuss these figures in more detail, please give us a call.

Note that right now, there are great opportunities to build your investment portfolio, but the window of opportunity will not last forever.

Call us 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 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. 

JOKE OF THE WEEK

Top Ten Things You Wouldn't Know Without Movies

1.  It is always possible to park directly outside any building you are visiting.
2. A detective can only solve a case after he has been suspended from duty.
3. If you decide to start dancing in the street, everyone you bump into will know all the steps
4. Most laptop computers are powerful enough to override the communication systems of any invading alien civilization.
5. It does not matter if you are heavily outnumbered in a fight involving martial arts - your enemies will wait patiently to attack you one by one by dancing around in a threatening manner until you have knocked out their predecessors.
6. No one involved in a car chase, hijacking, explosion, volcanic eruption or alien invasion will ever go into shock.
7. When they are alone, all foreigners prefer to speak English to each other.
8. You can always find a chainsaw when you need one.
9. Any lock can be picked by a credit card or a paper clip in seconds, unless it's the door to a burning building with a child trapped inside.
10. Television news bulletins usually contain a story that affects you personally at that precise moment you turn the television on.

June 27, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

SPRINGS SLOWDOWN NOT SO BAD, STUDY FINDS

According to the Gazette, a growing military presence helped the Colorado Springs economy avoid the worst of the recession, but a lack of other economic drivers (translation: JOBS) has kept it from recovering significantly from the downturn, according to a study by the Brookings Institution.

The study found that both Colorado Springs and Denver ranked among the top 20 of the nation's 100 largest metropolitan areas in their economic performance since the start of the recession, as measured by changes in employment, unemployment rates, economic output, housing prices and rate of mortgage foreclosures.

On the bright side, the recent announcement of troop reductions in Afghanistan should add about 1500 additional troops to our area, which will also help boost our economy.

A spokesman for the study stated "The economy will not roar back, but Colorado Springs is at a much better starting point than its peers".

That's good news !!!

EXPERTS AGREE PRICES HAVE BOTTOMED OUT AND WILL STAY THERE

U.S. house prices rose slightly in April for the first month-to-month increase since last May, according to new numbers released today by the Federal Home Finance Agency, a branch of the Treasury Department.

Prices rose 0.8 percent on a seasonally adjusted basis from March to April, according to the FHFA's monthly House Price Index. For the 12 months ending in April, U.S. prices fell 5.7 percent.

A significant majority of the 108 economists and experts participating in MacroMarkets' June Price Home Expectations panelists believe that the bottom for home prices arrived in the first quarter or will arrive sometime before year-end.

The FHFA numbers echo similar data from FNC, Altos, ClearCapital, Move and other sources reporting an uptick in prices in April, following the double dip in prices during the first quarter.

However, expectations for the pace of recovery fell.  The group of 69 panelists who are currently forecasting a 2011 turning point predict less than two percent average annual growth in nominal home prices over the five-year period ending December 2015. The average expected cumulative home price change between Q4 2010 and Q4 2015 is just 5.71 percent, $1.2 trillion less in aggregate U.S. single-family housing wealth at the end of 2015 than projected just six months ago.

Looking at expected housing market performance through the five year period ending 2015, the most optimistic quartile of panelists projects 15.3 percent average price growth, while the most pessimistic quartile of panelists projects 6.0 price average price erosion from Q4 2010 levels. This spread is huge, representing almost $4 trillion in housing market value.

COLORADO GAINS 11,000 JOBS IN FIRST FIVE MONTHS OF 2011

Colorado's job market turned a corner from losses to gains during the first five months of 2011, which is good news for job seekers in the state who had little to celebrate in 2010.

Average employment in the state is up by about 11,000 so far this year over the same period last year, a 0.5 percent gain, compared with a loss of 25,000 jobs last year.

There are encouraging signs in the numbers, particularly in retail, professional services and manufacturing.

Retail employment, an indicator of consumer demand, has climbed 2.7 percent since the beginning of the year, adding 6,200 jobs.

Manufacturing has added 2,900 jobs, a 2.3 percent gain.

Leisure and hospitality is up slightly, with 700 new jobs.

Professional, scientific and technical services - which includes lawyers, accountants, architects, advertising reps and scientists - is up 4,500 jobs or 2.7 percent.

Even construction, the hardest-hit sector in the state and down 5.9 percent for the year, added 2,000 jobs in May, after seasonal adjustments.

The growth in manufacturing and professional services is encouraging because it's an indicator of underlying economic activity.

Overall, the private sector in Colorado has created jobs at an annual rate of about 0.8 percent so far this year, compared with a loss of 1.5 percent last year. That qualifies as a slow rebound.

It looks like we're over the hump.

WHERE HAVE ALL THE REALTORS GONE??

Some of our friends and clients have mentioned that there seem to be fewer Realtors active in our community, since the recession started. Well, their observations are correct. Many of our local Realtors have decided to cut back or retire, as a result of our lagging housing market. .

Fortunately, thanks to our loyal clientele, we have been able to weather the storm and are still very active in the market. What's the secret to succeeding in a down real estate market?

Actually, there is no secret. It's just a matter of earning client loyalty by being committed to advancing your interests and following a few effective rules for offering the best service available.

Some of our 'Rules' for dealing with our clients are: 

• Listening carefully to make sure YOUR objectives are understood
• Explaining the home selling process thoroughly
• Pricing your home correctly
• Helping you stage your home correctly
• Implementing a proven marketing plan
• Making every effort to sell your home promptly
• Generating and following-up on leads
• Communicating consistently, so you know what to expect
• Networking with the entire broker population regarding your property
• Diligently tracking the closing process on the sale of your home

It also helps that we have over 39 years of experience in our local market and have first-hand knowledge of every neighborhood in the Pikes Peak region. We also have good working relationships with every lender, appraiser and service provider in the area and, because of our background in the relocation industry, are able to assist our clients with any out-of-state questions and problems.

It just goes to prove that, "The harder your work, the luckier you get". 

Give us a call at 598-3200, or, 800 677-MOVE (6683) and we'll show you what we mean.

THE COLORADO SPRINGS BUSINESS JOURNAL

MAKES A GREAT PITCH FOR OUR CITY

The Colorado Springs Business Journal, in partnership with the Colorado Springs Regional Economic Development Corporation, the Colorado Springs Chamber of Commerce and the Colorado Springs Convention and Visitors Bureau, has just published a beautiful business development and relocation guide for Colorado Springs.

The 91 page guide features articles about our local attractions, events and statistics about the region. It covers such topics as History, Socioeconomic, Government, Top 100 Primary Employers, Fortune 500 Companies, Business Resources, Sports, Housing and a broad variety of data about our city.

From time-to-time, we will publish some of the fascinating information that is contained in the guide. For example:

             Population of El Paso County in 1995                469,693

            Population of El Paso County in 2010                622,263

             Median Household Income in Colorado Springs  $53,359

            Median Household Income in El Paso County     $56,570

To obtain your copy of this fact-filled guide, contact the Colorado Springs Business Journal at 719 634-5905, or, on the web at www.csbj.com.

NAR URGES YOU TO HELP PROTECT YOUR ACCESS TO AFFORDABLE MORTGAGES

On Thursday, June 23, 2011, we received notification from the National Association of Realtors that, effective September 30, 2011, the Federal Housing Administration will significantly decrease its loan limits. This change will make mortgages more expensive for households nationwide.

The problem with this change is that private investors have not yet returned to the housing market and FHA and GSE mortgages together continue to constitute the vast majority of home financing available today, which makes it particularly crucial to maintain the current limits. Lowering the loan limits at this critical stage in our recovery will leave credit-worthy borrowers without access to affordable financing and will prolong our housing crisis.

Nationally, the decrease in loan limits will cost homebuyers more than $68,000 and will apply to over 669 counties in 49 states. This reduction in loan limits will negatively affect Buyers, Sellers and Lenders and will drastically reduce the number of homes sold.

In El Paso County, Colorado, for example, this change means that the FHA limit on loans will drop from $325,000 to $271,050, a decrease of $53,950.

Considering the fragile state of our current housing market and the importance of the housing market in leading the entire economy of the country, it does not make sense to make the purchase of housing even more expensive than it currently is.

To avoid the disastrous effects of this change by FHA, H.R. 1754 has been introduced in the House of Representatives by Reps. Miller (R-CA) and Sherman (D-CA) to make our current loan limits permanent. NAR is urging all citizens to contact their congressional representatives and express their support for this Bill.

We believe that this change by FHA will make it more difficult to buy and sell homes, and we support NAR in their efforts to encourage public support for H.R 1754.

Click here to learn more about this change in loan limits

Click here to see how this change will affect 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 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 to see the latest Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

FROM YOUR I.T. DEPARTMENT

How to Make your I.T. Department Happy

01. When you call us to have your computer moved, be sure to leave it buried under half a ton of postcards, baby pictures, stuffed animals, dried flowers, bowling trophies and children's art. We don't have a life, and we find it deeply moving to catch a fleeting glimpse of yours.

02. Don't write anything down. Ever. We can play back the error messages from here.

03. When an I.T. person says he's coming right over, go for coffee. That way you won't be there when we need your password. It's nothing for us to remember 700 screen saver passwords.

04. When you call the help desk, state what you want, not what's keeping you from getting it. We don't need to know that you can't get into your mail because your computer won't power on at all.

05. When I.T. support sends you an E-Mail with high importance, delete it at once. We're just testing.

06. Send urgent email all in uppercase. The mail server picks it up and flags it as a rush delivery.

07. When the photocopier doesn't work, call computer support. There's electronics in it.

08. When something's wrong with your home PC, dump it on an I.T. person's chair with no name, no phone number and no description of the problem. We love a puzzle.

09. When an I.T. person tells you that he'll be there shortly, reply in a scathing tone of voice: "And just how many weeks do you mean by shortly?" That motivates us.

10. When the printer won't print, re-send the job at least 20 times. Print jobs frequently get sucked into black holes.

11. When the printer still won't print after 20 tries, send the job to all 68 printers in the company. One of them is bound to work.

12. Don't learn the proper term for anything technical. We know exactly what you mean by "My thingy blew up".

13. Don't use on-line help. On-line help is for wimps.

June 20, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

EL PASO COUNTY FORECLOSURE FILINGS FALL 33%

New foreclosure filings and foreclosure sales at auction continued to fall in May across the state and in El Paso County, according to a report released on June 14, from the Colorado Department of Housing.

While the state saw a 24% decline in May foreclosure filings year-over-year, El Paso County had a 32.5% drop. That's welcome news.

Foreclosure sales at auction dropped 12.2% in El Paso County and by 20% statewide.

Foreclosure sales at auction are at a 26-month low and, statewide, new filings are the lowest they've been in four years, according to the report.

Some experts estimate that, at the present rate, it will take another three years to get through all of the homes at risk of foreclosure, but, based upon these current numbers, the worst of the crisis seems to be over.

AREA EMPLOYERS ARE OPTOMISTIC

Colorado Springs area employers are the most optimistic about their hiring plans than they have been in nearly three years, according to a quarterly employment survey by temporary-staffing giant Manpower.

It's quite a turnaround for the Springs, which just three months ago was ranked among the nation's worst job markets.

The percentage of local employers adding staff exceeds the percentage planning cutbacks by more than double, with 26% hiring and 12% making cuts during the July-to-September quarter. This is the most upbeat employment outlook for the area since the final quarter survey of 2008, which was taken just before the financial crisis hit.

In this latest survey, the Springs is tied with Denver and 10 other cities for the 34^th -best among the nation's 100 largest metropolitan areas. Three months ago, the Springs tied with three other cities for the nation's eighth-worst outlook.

Things are definitely looking up.!!!

KEYBANK TAKES THE LEAD IN OFFERING AN EXCITING NEW LOAN FOR HOMEBUYERS

KeyBank has announced the introduction of the KeyCommunity loan, which offers prospective HomeBuyers with good credit, but little cash, the opportunity to buy their new home with only $500 down.

Some of the program details are: 

• Borrowers need only $500 upfront
• Satisfactory 12 month rental history at 100% LTV, or, no-rental history at 95% LTV
• Seller contributions max 3%
• 620 FICO Score - 100% LTV
• 600 FICO Score - 97% LTV
• No Credit Score - 100% with 4 alternate tradelines (24 months history) and satisfactory rental history
• Debt to Income Maximum 42%
• 2 year employment history
• 1 month reserves (PITI)
• Manufactured homes also eligible at lowered LTVs
• Max Loan Amount - $417,000

We are very pleased to be able to work with our clients to obtain this new concept in financing. It addresses the widespread need for financing assistance to credit-worthy Borrowers who can afford the payments on new home, but may be strapped for cash.

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

WHAT'S THE BOTTOM LINE FOR BUYERS AND SELLERS IN OUR CURRENT MARKET?

The fact is that First-Time-Buyers make-up a huge percentage of all home sales. As these First-Time Buyers enter the market, they help to push current Homeowners up the ladder, by providing them with the funds necessary to move up.

This market-dependence on First-time Buyers is demonstrated by the fact that 57% of all home sales are for homes under $200,000 and 82% of all home sales are for homes under $300,000. This data reflects the fact that First-Time Buyers usually buy in at the low end of the market. It also emphasizes the fact that, if a Seller has a home worth more than $300,000, he/she will attract only 18% of prospective Buyers.

So, if you're a Seller in today's market, and your home is priced under $300,000, you should aim at the First-time Buyers.

If, on the other hand, your home is worth more than $300,000, you have to understand that the selling process may take longer than you expected. Give us a call to discuss this.

Here's some good advice for Sellers:

3 Tips for the Home Seller

Sellers are steeling themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready.

For first-time sellers who have never been through the process before, it's a different world. One where the value of the house isn't measured in the profit made on the sale, but by the enjoyment the owners had from living in the home. .and by the opportunity to Sell Low and Buy Low.

Here are three things experienced sellers would tell you, if they could.

Price it realistically from the start

Your largest number of showings will occur in the first two to three weeks. One reason: The multiple listing services and the Internet tend to drive the majority of showings. Many buyers are plugged in electronically. So the minute something new pops up that meets their criteria, they want to see it.

Take advantage of that sweet spot by pricing the house competitively right out of the gate.

Be prepared to lose some money now, but make up for it when you buy

Want to sit with a house that won't move, waiting for what you think your house is worth?  In today's market, the tax assessor's estimate or whatever you paid a few years ago doesn't matter. Be prepared to take less on the sale of your present home, and make up for the loss by getting a great deal on your new, move-up home. Or, you can just hold out for a couple of years, waiting for prices to "come back". But, if you do, be prepared to lose out on the kind of deals you could get today if you bought right now..

As the old ad used to say, "Pay me now, or, pay me later".

The truth is that your house is worth what buyers are willing to pay. No more.

Your best guide will be an experienced Realtor who can show you comparables when setting your asking price. Selling prices, not asking prices should be your guide. Asking prices are simply wish lists. Selling prices are reality. Call us.

Who are you trying to sell to?

You also have to consider who your most likely buyers are for what you're selling and cater to that group of people. Will your prospective Buyer be a 20-something, or a downsizing empty nester?

Here, again, we can help you analyze your neighborhood's current history to help you aim at the appropriate pool of potential Buyers.

Don't forget to smile for the camera

Don't neglect the modern version of curb appeal. Does you home look like a place that Buyers would like to live in? Use lots of photos on your real estate listing's website. You will need a good number of clear, well-lit, professional-quality pictures that show your house at its best.

Finally, if, as a Seller, you are discouraged by the competitive nature of our present market, be consoled by the fact that Colorado Springs is much better off than most other parts of the country. We have consistently outperformed most of the other 153 largest metropolitan area of the country and we are one of the most envied cities in the U.S. Click here to see how we are selling ourselves to the rest of the country.

For Buyers, the bottom line is that the iron is red hot, so strike now. Low-prices, large inventory, great financing packages and wonderful opportunities for Investors make this a true Buyers' market. Let us show you how an investment in today's Colorado Springs' real estate market makes a lot of sense and could well be your transition to a rewarding life now and a foundation for comfortable retirement.

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

 Remember, today is better than yesterday and tomorrow looks like it will be great.

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

A carpet layer had just finished installing carpet for a lady. He stepped out for a smoke, only to realize he'd lost his cigarettes.

He went back in and in the middle of the room, under the carpet, was a bump. "No sense pulling up the entire floor for one pack of smokes," he said to himself.

He got out his hammer and flattened the hump.

As he was cleaning up, the lady came in. "Here," she said, handing him his pack of cigarettes. "I found them in the hallway."

"Now," she said, "If only I could find my parakeet."

June 13, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET 

GROWING RENTAL MARKET BENEFITS LANDLORDS ..PROSPECTIVE INVESTORS, TAKE NOTE

Millions of foreclosures have turned former homeowners into renters. In fact, there's been a nearly 34 percent increase in rentals over the last decade, according to a USA Today analysis of U.S. Census data. That means that in 2010, nearly 35 percent of occupied homes were rented.

This data supports our advice to our readers that it's time to consider buying investment property, or renting out their present homes while the purchasing opportunities are still hot. If you're interested in discussing this opportunity, give us a call at 598-3200, or, 800-677-MOVE (6683).

And, before you make your decision, consider the following tips:

• Understand how debt affects your ability to qualify for a loan. First, if you're just getting started and are looking to purchase a property to later rent, consider that Freddie Mac guidelines typically require a maximum debt-to-income ratio of 45 percent.
• Be prepared to put more money down. Owner-occupied properties have the advantage of requiring a smaller down-payment (VA=0%, FHA=3.5%) than investor mortgages which sometimes require as much as 20 percent. Also keep in mind that when buying a property for investment purposes, the down payment and/or the closing costs cannot be from gift money.
• Know your market and ability to rent your property. Overall rental growth is increasing while homeownership is declining. According to the Census data, The number of renter households has grown, on average, by nearly 700,000 a year since the housing peak in 2006 and the number of owner households is shrinking, on average, by just over 200,000 a year.
• This could be good news if you're planning to rent your home. But supply and demand are key. So call us to discuss your local rental market carefully before you buy or place your home for rent.
• Rents may rise if the market doesn't get too saturated. As more homeowners decide to hang on to their homes and list them for rent instead of for sale, they're finding that it can be beneficial for them.
• Some experts still say that there will be a boost in rental growth for at least the next couple of years due to foreclosures, housing prices being uncertain and causing people to wait to buy, and government homeownership subsidies being cut.
• Set your rent at the right price. Experts advise that if a rental home is listed for longer than about 30 to 45 days, it might be time to reduce the rent. Also, keep in mind that rental properties are just like other for-sale properties, needing to be kept in good condition and have their upgraded amenities showcased. Let us help you highlight your property, arrange for proper management  and get it rented quickly.

However, surveys show that owning a home is still preferred. Regardless of the growth in renters, the idea of homeownership is still the American dream; 74 percent of renters think owning is superior to renting, according to a recent survey by mortgage giant Fannie Mae.

In fact, the following article supports the idea that homeownership is still a vital part of the American dream, especially in the Colorado Springs area, where we have consistently outperformed almost every other city in the U.S. Please give us a call to discuss our record as compared to the other 154 major metropolitan areas surveyed.

OWNING A HOME ESSENTIAL TO THE AMERICAN DREAM, SURVEY SHOWS

Despite the ups and downs of the housing market, home owners and non-owners alike consider owning a home essential to the American Dream.

That's the key finding of a recent survey of 2000 people likely to vote in 2012 that was conducted on behalf of the National Association of Home Builders (NAHB) by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C.

"The survey results show that Americans see beyond the immediate housing market to the enduring value of homeownership," says NAHB Chairman Bob Nielsen "An overwhelming 75 percent of the people who were polled said that owning a home is worth the risk of the fluctuations in the market, and 95 percent of the home owners said they are happy with their decision to own a home," Nielsen says.

"Homeownership is worth the risk, pure and simple," says Neil Newhouse, a partner and co-founder of Public Opinion Strategies. "Even though the market is weak, people who don't own say they want to buy a house. Almost three-quarters of those who do not currently own a home, 73 percent, said owning a home is one of their goals. And among younger voters who are most likely to be in the market for a home in the next few years, the percentages are even higher," Newhouse says.

One of the more striking aspects of the survey results is the intensity of sentiment among potential voters, according to Celinda Lake, president of Lake Research Partners. "People believe overwhelmingly that owning a home is an anchor to the American Dream," she says. "It's an anchor to your retirement, and it's an anchor to your personal economic well-being."

Among the other survey results:

• Homeownership and a retirement savings program are considered by voters to be their best investments.
• 80 percent of home owners would advise a close friend or family member just starting out to buy a home.
• Saving for a down payment and closing costs is the biggest barrier to homeownership.
• Americans believe that owning their own home is as important as being successful at their job or being able to pay for a family member's education.

"Owning a home isn't just a policy to people," says Lake. "It isn't just a commodity to people. It is a core value."

And ..just to sweeten the pot, the Colorado Springs housing market has consistently outperformed almost every other major metropolitan area in the country.

9 REASONS TO BUY A HOUSE RIGHT NOW ...ACCORDING TO FORBES MAGAZINE

If you're planning to buy a house right now, the next few months may be the best time to buy. Waiting for both housing prices and interest rates to fall may not be a good strategy for potential homebuyers since analysts don't expect any significant declines in these two most important home-buying factors. Here's nine real estate trends that suggest you should get into the housing market sooner than later.

1. Lowest Housing Prices in Years
Nobody knows when the housing market will hit bottom, but prices are at their lowest in several years and may soon start inching back up again. So buying now or in the near future may be the right time. An abundance of bargain-priced housing is now available because of foreclosures and falling prices.

2. Interest Rates at a 50-Year Low
Interest rates are near a 50-year low, according to housing analysts. By the second week of May, 2011, 30-year fixed mortgage rates had fallen to their lowest rates of the year at 4.49%. Although mortgage rates vary from day to day, the 30-year rate at this level is an attractive inducement to first-time buyers, or buyers who want to either move up to larger residences, or others, including many empty-nesters wanting to sell and move to smaller houses or condos. (For a complete breakdown of mortgage rates, see below).

3. Interest Rates Expected to Go Up
As the economic recovery gains momentum, interest rates are expected to increase, making mortgages more expensive. Even a half-percent increase in mortgage interest can add a hundred dollars or more to your monthly payments, depending on the amount of your loan.

4. Adjustable Rate Mortgages at Record Lows
Adjustable Rate Mortgages (ARMs) are also lower now. For new buyers who are sure they'll have enough income to meet payment obligations, an ARM may be the best way to buy a house.

5. Low Down Payment Mortgages Available
Low-down-payment financing through Federal Housing Administration-insured mortgages is available as an additional inducement to buy a house now. Down payment minimum requirements may increase as the market heats up, so potential buyers with less cash to consummate a deal may be well-advised to buy now. 

6. Easy to Qualify, Easy to Borrow
Lending standards have become less rigid recently, so qualifying for a mortgage may be easier. Experts advise that a potential buyer become pre-approved for a loan by a lending institution - meaning that a lender guarantees to make the loan contingent on an appraisal of the property. But the good news in seeking pre-approval is that lenders are now willing to let a potential buyer take on more debt than the previous formula allowed - a percentage of monthly income.

7. Lenders Offer No-Fee Mortgages
Many banks and other lending institutions are waiving mortgage loan generation and other fees and points (each point represents 1% of the loan amount), thereby reducing the cost of buying.

8. Home Builders Eager to Sell, Offer Incentives
Home builders, competing with the resale market, are offering incentives to potential buyers to reduce their inventory of unsold new homes. Incentives may include cash for furniture or free refrigerators, washers and dryers. Specific demographic groups, including military personnel, police, firefighters and health-care workers, have been targeted by builders for special offers. But virtually anyone who can qualify for a mortgage is likely to get a good deal from a homebuilder who is eager to sell.  

9. Motivated Home Owners Desperate to Sell
Desperate sellers of existing homes have also been offering attractive inducements to potential home buyers, including warranties on appliances, air conditioners and furnaces. Some sellers are even offering cash or have included furnishings, refrigerators, washers and dryers as a bonus to potential buyers. With so many existing homes in foreclosure or underwater - bargain prices are abound in this depressed market. 

The Bottom Line
With a convergence of the factors above, all of which are favorable to the prospective home buyer, there may not be a better time to buy than right now. It's a buyer's market, but like everything else in life, the bargain deals won't last.

And, if it's true for the whole USA, the statistics demonstrate that it's even more true in Colorado Springs.

WAITING TO BUY YOUR NEW HOME ??? PLEASE NOTE: HOME LISTING PRICES ARE RISING IN MAJOR U.S. CITIES

According to the Movoto search engine, home listing prices are starting to rise in major cities. Their report says that the median listing price in 16 major metropolitan areas rose in May, leading analysts to believe the market may be hitting bottom.

Movoto compiles data from multiple listing services in 16 major cities around the country. They found the median listing price increased 2.5% from April to May. The Standard & Poor's/Case-Shiller index, on the other hand, reported the median home sales price fell during the first quarter.

Standard and Poor's sale price figure, when compared to Movoto's listing price figure indicate that house sellers are asking for more, while buyers want to pay less. No surprise there.

Analysts state that these figures indicate the real estate market has bottomed out. Just as list prices increased in May, so did the amount of inventory on the market. Homes for sale for less than $100,000 - usually distressed or real estate owned - fell to 28.1% of market inventory in May. This is the first time all year those homes did not comprise the majority of homes on the market.

Homes in the $250,000 to $500,000 range make up the largest share of inventory at 29.3%. Almost 24% of market inventory is attributable to homes between $150,00 and $250,000, while homes more than $500,000 account for 18% of the sale market.

The biggest challenge now is to clear the inventory of these foreclosed properties which are skewing the prices.  

HERE'S THREE STORIES THAT GIVE US REASSURANCE THAT OUR LOCAL ECONOMY IS ON THE MEND

COLORADO SPRINGS SALES TAX COLLECTIONS RISE

Colorado Springs sales tax collections rose a strong 8.92% in May from a year before, led by a gain in auto sales, the city reported Friday. May collections reflect purchases in April.

Sales tax collections have now posted year-over-year gains for 19 consecutive months, though gains had dwindled early in the year- down to less than 1% in March. April's collections, however were up 7.85%, and May's gains were the strongest since May of last year.  Sales tax collections so far this year are up 5.6% from the same point last year.

U.S.HOUSEHOLD NET WORTH CLIMBS 1.2%

Wall Street Journal, Friday, June 10, 2011

The Federal Reserve said Thursday that average household wealth - stocks, bonds, homes and other assets, minus mortgages and other debts - rose 1.2% to $58.1 trillion in the first quarter.

The increase should bolster the U.S. economy, because as individuals' net worth rises, they tend to become more confident about their financial future and willing to spend. Notwithstanding the recent decline in stock prices, "in general, financial wealth has been increasing, which would tend to increase consumer spending", said Goldman Sachs economist Andrew Tilton.

MORTGAGE RATES MOVE EVEN LOWER THIS WEEK

According to Freddie Mac (June 9, 2011), fixed and adjustable-rate mortgages sank to new lows for the year, continuing a downward spiral for the eighth straight week, following a weak jobs report.

Here's a closer look at how rates fared for the week:

• 30-year fixed-rate mortgages averaged 4.49 percent this week, down from last week's 4.55 percent average. A year ago at this time, 30-year rates averaged 4.72 percent.
• 15-year fixed-rate mortgage rates averaged 3.68 percent--its lowest level since November 2010. A year ago at this time, the 15-year rate averaged 4.17 percent.
• 5-year adjustable-rate mortgages averaged 3.28 percent this week, slipping from last week's 3.41 percent average. A year ago at this time, the 5-year ARM averaged 3.92 percent.

It's a great time to buy. Call us at 598-3200, or, 800-677-MOVE (6683).

HARVARD ISSUES REPORT ON HOUSING

The Joint Center for Housing Studies of Harvard University recently published an extensive report on "The State of the Nations' Housing". If you would like to see the complete report, CLICK HERE.

http://www.jchs.harvard.edu/publications/markets/son2011/son2011.pdf

 LOCAL REALTORS RECEIVE AN UPDATE ON THE NATIONAL AND LOCAL ECONOMIES

On June 3, 2011, Fred Crowley, chief economist for the University of Colorado at Colorado Springs gave an extensive update  on the national and local economy to the Pikes Peak Association of Realtors.

If you would like to see a complete copy of Mr. Crowley's very interesting presentation, 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 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

Murphy's Lesser Known Laws

Light travels faster than sound. This is why some people appear bright until you hear them speak.

He who laughs last, thinks slowest.

Change is inevitable, except from a vending machine.

Those who live by the sword get shot by those who don't.

Nothing is foolproof to a sufficiently talented fool.

If you lined up all the cars in the world end to end, someone would be stupid enough to try to pass them, five or six at a time, on a hill, in the fog

The things that come to those who wait will be the things left by those who got there first.

Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat all day drinking beer.

A fine is a tax for doing wrong. A tax is a fine for doing well.

When you go into court, you are putting yourself in the hands of 12 people who weren't smart enough to get out of jury duty.

June 6, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET 

SHOULD YOU BUY NOW?  YOU BETCHA !!!

Thinking of buying a new home or investment property?  Speaking as someone who has had over 39 years of experience as a Realtor in our local real estate market, we can enthusiastically recommend that our readers take advantage of the unique opportunity that now exists for Home Buyers and Investors.

Even the Wall Street Journal agrees that you should make your decision to buy right now. In their Saturday, June 4, 2011 edition, they make their case in a feature article titled, "Why It's Time to Buy". In the article, they cite several reasons for their positive attitude. The interesting fact is that every buying reason the WSJ article cites at the national level, also exists, in spades, in our local market. So, let's examine some of the reasons why WSJ thinks it's the time to buy.

Why the happy face?

One might ask, "How can you be so positive about real estate, when many "experts" are crying Doom and Gloom. The answer is that most media "experts" base their observations about the Real Estate market upon Standard and Poor's Case Schiller Index, which bases their data exclusively upon the largest 20 cities in the US...and those top 20 cities are in real trouble in almost every area of their economy. The smaller US cities, like Colorado Springs, are in much better shape than the Case Schiller Index would have us believe.

In fact, the CoreLogic Index, which examines data which is more current and from a broader range of cities than Case Schiller, reports that home prices increased .7% from March to April of 2011. This rise marked the first month-over-month increase in home prices since the Home Buyer tax credit expired in 2010 and represents a positive sign for the real estate market.

Another national survey company, Altos, reports a 0.93 percent increase in its national home price composite between April and May and says that the May numbers showed an increase in median prices across the board. They also state that the seasonal price bump for the spring will likely take until late summer or early fall before it shows up in the Case-Shiller numbers.

And keep in mind that, as with politics, "All real estate is Local", and Colorado Springs looks much better than most other parts of the country. As an example, Realtor.com lists our city as #7 in the top 10 markets in which prices and property values have stabilized, and points towards these 10 cities as "potential outliers in a housing market recovery".

To quote from Realtor.com's recent article, "Colorado Springs comes in at #7 nationally. Prices in Colorado Springs have fallen a mere 12% since the peak, while housing demand has risen along with the area's population growth rate of 9% from 2000-2005. Median list prices were even with last year, though they ticked up 1.53% over February. With a median inventory age of 113, well below the national median and 11.02% lower than February's median inventory age, Colorado Springs rose a notch from 65th to 64th most searched market from February to March."

To put this into context, our local median sales price has risen from $173,995 in May of 2002, to $185,000 in May of 2011. Considering what has happened to home prices in the rest of the country during that period, that's a darned good growth record.  

Can I get a loan?

Another incentive to buy now is the availability of low-cost financing.

Lenders are frantically competing for what business there is and, because of credit problems caused by foreclosure, and because many prospective borrowers cannot qualify to refinance because of lack of equity in their homes, fewer families are qualifying for loans. Just last week, the number of mortgage applications dropped 4%, despite interest rates hitting new lows for the year.

 Be aware that, as the economy revives and as more people qualify for loans, demand for money will go up and so will rates. The moral to the story is ..Better Buy Now.

How about prices?

Another piece of good news for Buyers is that prices are still low. For example, we recently listed a home in the Springs Ranch area. The original price for the home in 2009 was $357,500. Today, the house is listed at $325,000, because the Seller has to sell quickly because of a transfer.

There are many great deals like this one just waiting for you. ..But, keep in mind that, according to the recent survey by Zelman Associates, 67% of renters surveyed said they planned to buy a home in the next five years. As our available inventory is reduced, prices will definitely go up.

Unless you plan on winning the lottery, that's about as good a deal as you will ever get.

How about mortgage rates?

For nearly two months, mortgage rates have been steadily dropping and this week's rates reached another low for the year. Our most recent drop in rates put the rate for a 30 year mortgage at 4.55%, down from 4.79% a year ago. The drop is the result of a lower demand for financing.

For example, if someone buys the home listed above, the FHA rate for a 30-year, fixed-rate mortgage would be 4.38%. That's almost a historically-record-low rate.

Here's a closer look at average mortgage rates for the week:

• 30-year fixed-rate mortgage: The most popular financing choice among buyers, the 30-year fixed-rate mortgage continued to drop this week, averaging 4.55 percent. Last week it had hit a 2011 low at 4.60 percent. Last year at this time, the 30-year rate averaged 4.79 percent.
• 15-year fixed-rate mortgage: It averaged 3.74 percent this week, down from last week's 3.78 percent. Last year at this time, 15-year rates averaged 4.20 percent.
• 5-year adjustable-rate mortgage: It held steady at 3.41 percent this week. A year ago, the 5-year ARM averaged 3.94 percent.
  
  Rates can't stay this low forever. Call us at 598-3200, or 800-677-MOVE (6683).

Bottom Line?

In addition to the short-term advantages to buying a home now (price, rates, inventory choices, etc.), the Wall Street Journal article also emphasizes that there are long-term advantages to buying now, including affordability. For example, the inventory of available homes will shrink dramatically in the years ahead. Hundreds of thousands of First-time Buyers are entering the marketplace simply because of population increases. This increase in competition for homes, plus inflation, will steadily raise home prices (and the value of your home investment) in the years ahead.

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

"RETIRE IN COLORADO SPRINGS", SAYS FORBES  

Forbes Magazine (May 2011) has issued its annual list of "Best retirement places". The list of seven cities includes Colorado Springs as being among the more affordable retiree cities. The complete list includes:

• Colorado Springs, Colo.: Affordable housing and low cost of living.
• Indianapolis: Very affordable housing.
• Fargo, N.D.: Lowest crime rate on the list and inexpensive living costs
• Charlotte, N.C.: Affordable housing as well as cost of living
• Charleston, S.C.: Lowest taxes of all the cities Forbes evaluated.
• Jacksonville, Fla.: No state income or estate tax
• Pittsburgh: Tax breaks for retirees.

AND HERE'S SOME MORE REASONS TO LIVE HERE

According to the Gazette (May 29, 2011) the month of May saw:

• Foreclosure filings: down 42.1%
• Initial claims for unemployment: down 2.6%
• Unemployment rate: down to 9.1%
• Single-family home permits: up 7.1%
• New auto and truck registrations: up 9.7%
• Taxable retail sales: up 7.9%
• Hotel occupancy rate: up to 59.0%

WHAT DO YOU HAVE TO LOSE?  DON'T WAIT TO FIND OUT THE HARD WAY. ..GET YOUR INVENTORY RECORDS UP-TO-DATE

With natural disasters being reported everyday, it's a reminder that you should have a current, detailed list of all your belongings, big and small. Such an inventory list can be a lifesaver in the event your home is ever lost to fire, flood, tornado or other disaster.

When home owners lose everything in a disaster, they assume their home insurance will cover everything lost. But without documenting all your belongings, you may never recover all of your losses. As a recent article at AOL real estate notes "a claim is only as strong as the inventory list."

Therefore, good record-keeping is critical. A basic pen-and-paper list stored in a safe deposit box can suffice. The list should include everything from bedsheets to clothes to furniture. However, if a home is destroyed, the pen-and-paper list may be destroyed too.

Your inventory list will be even more valuable to you if you include photographs of every room in your home. As they say in the insurance business, "A picture is worth a thousand claims".

Some Web sites are popping up to help home owners create an inventory record-keeping list that can be stored on remote servers and accessed from anywhere. One Web site, DocuHome.com, allows you to upload room photos and then tag furniture and belongings. You can then create an inventory spreadsheet from all of the tags and enter values or other notes on items.

LATEST STATISTICS

The Pikes Peak Association of Realtors just released the latest Sales and Listing statistics for May 2011. The figures show that there were 780 sales in May, which is 4.3% better than April's sales. The average median sales price was $185,000 and the city average of "Sales to Listing Price" was 97.3%.

An analysis of our local sales data shows that 82% of all our sales were for homes under $300,000 and 57.4% were for homes under $200,000.

Things are getting better !!!.

To see all of the PPAR data for May, Click here.

LET US TAKE YOU OUT TO THE BALL GAME

Just a reminder that we have 4 tickets for all Sky Sox games that are available to our readers, on a first-come basis. These are great seats .the front row, right behind the Sky Sox dugout.

Call us, if you're interested.

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

Computers are wonderful. My spellchecker tells me that the following poem has no errors in it.

I halve a spelling checker,
It came with my pea see.
It plainly marks four my revue
Mistakes I dew knot sea.

Eye strike a key and type a word
And weight four it two say
Weather eye am wrong oar write
It shows me strait aweigh.

As soon as a mist ache is maid
It nose bee fore two long
And eye can put the era rite
Its rarely ever wrong.

I've scent this massage threw it,
And I'm shore your pleased too no
Its letter prefect in every weigh;
My checker tolled me sew.

May 23, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

NOTES FROM VEGAS

Well, it’s great to get back home.

The best way to appreciate our wonderful city is to visit somewhere else. Las Vegas was exciting, but Colorado Springs is heaven !!!

This year’s meeting of the “Worldwide ERC, the Workforce Mobility Association” had almost 2000 attendees and featured speakers from companies representing every aspect of the relocation industry. It was a great opportunity to hear what the “big boys” are saying about the economy and about the outlook for the future. It certainly gave us the opportunity to see how Colorado Springs stacks up against the rest of the country…..and believe me, we are looking very good, compared to most other cities in the U.S.

We have attended every one of these conferences since 1977 and, this year we were the only Realtor, or Broker/Owner from Colorado Springs in attendance.

Here are some of the significant changes that our weak economy is producing, as pointed out by many of the speakers at the conference:

• There has been a huge increase in the number of renters ….families who have lost their homes and their credit ratings because of foreclosure (Investors, take note!)
• More employees are turning down promotion opportunities which would require them to relocate. They can’t afford to take the loss in equity that selling their present home would require.
• More companies are cutting back on subsidizing the cost of relocating employees, except for their top executives. This makes it difficult for companies to offer their employees upward mobility within the company.
• It is not unusual for homes in some areas of a given city to take over a year to sell.
• real estate prices in most cities in the U.S. have not “bottomed out” yet.
• Colorado Springs is showing better numbers than approximately 60% - 70% of other cities nationwide.

The bottom line for Transferees is that they face a difficult choice in today’s market …Sell their present home at a loss, or, turn down the opportunity to advance within their company (and, as we all know, the opportunity to advance within a company is usually offered only once).

To bring the numbers into focus for our city, we see that, according to the latest statistics published by the Pikes Peak Association of Realtors, our average sales price for the past 4 months is up 1.1% over the same period last year. Admittedly, that’s not much of an increase, but it’s better than the situation in most other cites, which are still showing losses. In fact, according to Fiserv and Moody’s survey, the national U.S. home price average will show a 3 percent decline in the first half of this year. (See the following article, “Turnaround: 4 Months and Counting).

TURNAROUND: 4 MONTHS AND COUNTING?

The latest prediction from the authoritative Moody’s Analytics and Fiserv, Inc, which tracks home price trends in 375 U.S. markets, is that the national residential market is stabilizing, but will still show a 3% decline in the first half of this year. This is quite a different story from our local increase of 1.1% for the first quarter of 2011. Compared with other parts of the country, we’re doing great !!!

The survey also predicts that prices in the hardest-hit markets will take until the end of 2012 to level out.

Relative to household income, affordability is at or close to pre-bubble levels in nearly every metro area across the U.S. This dynamic, combined with growing economic strength, leads Fiserv and Moody’s Analytics to project that average U.S. home prices will stabilize in the third quarter of this year.

Even as balance returns to the housing market, the survey data forecasts the pace of recovery will be uneven across U.S. metro areas.

Although our local market is recovering at a good pace, there is still a great opportunity for Investors to build their investments by purchasing rental property. A larger pool of prospective Renters, plus the tightening credit requirements which make it difficult for former- home-owners to qualify for financing, plus the record-low cost of homes, plus the low interest rates which are still available, all combine to make rental properties a great investment.

To explore how investment properties might enhance your financial future, call us at 598-3200,or,1-800-677-MOVE(6683)

HERE’S ANOTHER PIECE OF GOOD NEWS FOR COLORADO SPRINGS

The Business section of the Gazette on Friday featured the story, “LOCAL JOBLESS RATE DIVES FOR SECOND STRAIGHT MONTH”.

The area’s jobless rate fell to 9.2% in April, from 9.7% the month before, the state Department of Labor and Employment reported Friday. That drop matched the one in March, when the jobless rate fell to 9.7% from a revised 10.2% in February.

The local job market is still struggling, but is showing improvement with 3,100 fewer people unemployed since January, despite a small increase in the labor force during the same period, said Fred Crowley, senior economist for the Southern Colorado Economic Forum.

All the numbers show that we’re a heck of a lot better off than most other parts of the country …..and we don’t have any problems that won’t be solved by JOBS, JOBS, JOBS.

Looks like our new mayor has his job cut out for him.

MORTGAGE RATES REACH ANOTHER LOW FOR 2011

For the fifth straight week, mortgage rates inched down again--this time reaching the lowest level of the year as well as lowest year-to-date. The 30-year fixed-rate mortgage averaged 4.61 percent this week, while the 15-year rate averaged 3.80 percent, Freddie Mac reports in its weekly mortgage market survey.

The 30-year mortgage hasn’t reached 4.61 percent or below since December 2010. Last year at this time, it averaged 4.84 percent while the 15-year fixed-rate mortgage averaged 4.24 percent.

The falling rates may be yet another lure to buyers during real estate’s traditionally prime home buying season. Owning a home has also recently been found to be more affordable than renting in 78 percent of the major U.S. cities, according to the latest data from Trulia.

WHERE ARE MORTGAGE RATES HEADED?

We often talk about the COST of buying a house vs. the PRICE of the home. The price obviously is a major component of the cost. The other major component is the interest rate on your mortgage. A small hike in mortgage interest rate can have a dramatic impact on your monthly payment. For that reason we try to keep you current on what is projected for rates in the future.

Four major institutions project rates: The National Association of Realtors (NAR), Fannie Mae, Freddie Mac and PMI. Here is what each is seeing in the next year.

By the Second Quarter of 2012:

• Fannie Mae predicts an interest rate of    5.6%
• PMI predicts an interest rate of              5.95%
• Freddie Mac predicts an interest rate of   5.6%
• NAR predicts an interest rate of              5.9%

Bottom Line

If you are looking to buy a house and are waiting to see what will happen with prices, remember interest rates will also impact your housing cost.

APRIL EXISTING-HOME SALES EASE 

Existing-home sales slipped in April, although the market has managed six gains in the past nine months, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said the market is underperforming. “Given the great affordability conditions, job creation and pent-up demand, home sales should be stronger,” he said. “Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations.”

A parallel NAR practitioner survey shows 11 percent of Realtors® report a contract was cancelled in April from an appraisal coming in below the price negotiated between a buyer and seller, 10 percent had a contract delayed, and 14 percent said a contract was renegotiated to a lower sales price as a result of a low appraisal.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84 percent in April, unchanged from March; the rate was 5.10 percent in April 2010.

“Although sales are clearly up from the cyclical lows of last summer, home sales are being held back 15 to 20 percent due to the very restrictive loan underwriting standards,” Yun said.

All-cash transactions stood at 31 percent in April, down from a record level of 35 percent in March; they were 26 percent in March 2010; investors account for the bulk of cash purchases.

NAR President Ron Phipps said the lending community needs to return to sensible standards. “We want to ensure that qualified buyers will be able to own their property on a sustained basis from a sound credit evaluation, but banks needn’t be so stingy as to only lend to those with the highest credit scores,” he said.

First-time buyers purchased 36 percent of homes in April, up from 33 percent in March; they were 49 percent in April 2010 when the tax credit was in place. Investors slipped to 20 percent in April from 22 percent of purchase activity in March; they were 15 percent in April 2010. The balance of sales was to repeat buyers, which were 44 percent in April.

Phipps added that proposals and regulations are being considered in Washington that could further constrain the housing market. “One of the most damaging proposals would effectively raise down-payment requirements to 20 percent, which would slam the brakes on the housing market,” he said. “What we need to do is simply return to the sound standards that were in place before the introduction of risky mortgage products.”

Ironically, low down-payment FHA and VA loans, which are so critical to this segment, have performed well and never needed a taxpayer bailout because those borrowers stayed well within their budgets.

NAR consumer survey data shows 56 percent of entry level buyers in the past year financed with an FHA loan.

BUYERS WANT MOVE-IN READY HOMES

Is a little elbow grease needed? Selling an "as-is" home may turn off buyers, according to a recent survey of real estate professionals.

The survey found that 87 percent of first-time buyers don't want to buy a home that requires them to do a lot of work; instead they want "move-in" ready. There's no doubt about it, a fixed-up home sells faster and agents say it sells for more money.

When contractor work totaled nearly $40,000, those repairs added more than $100,000 to the asking price! Of course, not all homes will require that amount of money and repairs. The point is putting a little effort, money, repairs, and tender loving care into it. This could go a long way at the time of the sale.

Repairing things like leaky pipes, broken windows, worn ceilings, as well as replacing old roofs and driveways can go a long way to help increase the listing price. Ripping up carpet and painting the inside and/or outside of the home can also increase buyer appeal.

real estate experts say the renovations don't need to be things like re-doing a kitchen or bath, unless it's tremendously outdated. The risk there is that sellers can put more into the renovation than they'll get out of it at the time of sale. Also, remodels to these areas of the home are quite personal and based heavily on personal taste.

What about clutter? Buyers often see clutter as a bigger issue than just a bunch of stuff strewn about the home. It can make them think that the home is more of a "project" house than it really is. Save yourself any issues and pack up your personal stuff.

Sometimes packing up stuff means storing big items that are cluttering the house. Borrow a friend's garage or rent a storage unit if your next home isn't ready. Unstuffing overly-furnished rooms can really open up the floor plan, allowing buyers to get a good idea of the size of the room.

Not preparing a home for sale can mean having to accept the very unwanted fact of listing it for a lower price.

ATLAS VAN LINES’ ANNUAL CORPORATE relocation SURVEY REFLECTS GROWING ECONOMIC OPTIMISM

After multiple years characterized by doubt and pessimism, relocation managers across the U.S. are expressing optimism that the worst of the recession is now in the rearview mirror. Responding to Atlas Van Lines’ 44th annual Corporate Relocation Survey, 72% of the relocation managers polled say they believe their respective companies will fare better in 2011. The optimism rate among large firms surveyed (more than 5,000 workers) jumps to 80%.

“Our relocation research has served as a solid barometer of where the American economy is headed,” said Jack Griffin, president and COO of Atlas World Group, the parent company of Atlas Van Lines. “The good news is that our survey respondents are focusing on growing their businesses and believe there will be abundant opportunity for expansion and increased revenues in 2011. This is encouraging for Atlas Van Lines and our relocation agents.”

Additional encouraging signs include:

• Fifty-four percent of executives surveyed believe the U.S. economy will improve in 2011—the highest rate of such optimism recorded since 2006.
• Thirty percent of companies plan to relocate workers this year—the highest percentage in six years.
• Eighty-seven percent of companies will spend as much or more on relocation in 2011 as in 2010—the most since 2007.
• The Midwest is now the top destination of transfers (37%) followed by the Northeast (31%), the South (28%) and West (20%).

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

On a road through a desert in Arizona, a preacher named Nathaniel Evans walked every day, preaching to the many people who roared past in their cars

"Repent, the End of the World is Nigh!" was his constant theme.

One day, as he was walking, he came to a big lever in the middle of nowhere, just by the side of the road. 'Pull this to end the world' said the sign on it.

Now Nathaniel saw this as the perfect spot for him to preach, and soon many automobiles were parked nearby, the people all swayed by his powerful elocution.

All was well, until there were so many people, and so many cars, that the road was nearly blocked. Then a big 18-wheel rig came down the highway, and couldn't stop in time. The driver had a choice: run over Nathaniel, or run over the Lever.

As the driver explained to the Highway Patrol later, he actually had no choice. Pointing to the red smear on the road that used to be Nathaniel Evans, he said "Better Nate than Lever."

May 16, 2011

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

CITY SALES TAX COLLECTIONS JUMP IN APRIL

Colorado Springs sales tax collections in April rose by the largest percentage since October, increasing 7.85 percent from the same month a year earlier, the city reported Wednesday.

Sales tax collections have now posted year-over-year gains for 18 consecutive months, but gains had dwindled in recent months and were less than 1 percent in the previous month. Collections so far this year are up 4.46 percent from a year ago. But despite the April gains, collections are still down 6.74 percent from peak levels in 2007.

April collections reflect purchases made in March. The gain comes as the Springs area unemployment rate fell in March by the greatest percentage in more than 10 years, from 10.2 percent in February to 9.7 percent.

Fred Crowley, senior economist for the Southern Colorado Economic Forum, said, “The April increase is good and welcome, but may not be sustainable,” he said. “People aren’t getting raises and are spending more on gas, so they will have to cut spending elsewhere.”

Combined sales and use tax collections in April were up 6.83 percent from a year ago to $10.55 million and are up 1.68 percent so far this year.

Why it’s important: Sales and use tax collections fund more than half of the city’s annual budget for police and fire protection, roads and other services. Sales tax is also a primary measurement of consumer spending, making it a key barometer of the vitality of the local economy.

NATIONALLY, HOME VALUES DECLINE AS HOME SALES INCREASE ………
BUT COLORADO SPRINGS’ HOME VALUES ARE HOLDING STEADY

First, let’s talk about home values

According to Daily real estate News, May 10, 2011, in most states, Home values posted the largest decline in the first quarter since late 2008.

Home values (i.e. selling prices) fell 3% in the first quarter from the previous quarter and 1.1% in March from the previous month, pushed down by an abundance of foreclosed homes on the market, according to data released Monday. Prices have now fallen for 57 consecutive months and only 22% of metro areas showed any increase at all since 2009.

However, Lawrence Yun, NAR chief economist, pointed out that home prices are all over the map. “The reading of quarterly price data can be volatile because they are based on the types of homes that are sold during the quarter. When buyers principally purchase distressed properties in a given market, the recorded prices will be very low, which is what we’re seeing now in much of the country,” he said.

The national median existing single-family home price was $158,700 in the first quarter, down 4.6 percent from $166,400 in the first quarter of 2010. (The median is where half sold for more and half sold for less).

In the first quarter, the median existing single-family home price rose in only 34 out of 153 metropolitan statistical areas from the first quarter of 2010, including four with double-digit increases; one was unchanged and 118 areas showed price declines.

One big reason for the decline in values (i.e. selling prices) was the national inventory of Distressed Sales (i.e foreclosures and short-sales) which is forcing artificially low prices on all sales.

In the West, the median existing single-family home price fell 4.7 percent to $197,400 in the first quarter from the first quarter of 2010.

Keep in mind that, during this same period, the Colorado Springs market has shown relatively steady home values for the past four quarters, and has outperformed most other markets, according to the NAR quarterly report of the top 153 cities in the U.S.

During the past year, the national decline in home values was 4.6%, while the Colorado Springs average home value has gone from $184,800 in 2010 to $184,300 in 2011….That’s terrific. !!!

. . …….In terms of home-value, Colorado Springs is definitely better off than most other metropolitan areas in the country.

Now, let’s look at national home-sales

In spite of the national decline in home value, home sales have risen in most states

Existing-home sales continued to recover in the first quarter with gains in 49 states and the District of Columbia, while 22 percent of metropolitan areas saw prices rise from a year ago, according to the latest survey by the NATIONAL ASSOCIATION OF REALTORS®.

Total state existing-home sales, including single-family homes and condos, rose 8.3 percent to a seasonally adjusted annual rate of 5.14 million in the first quarter from 4.75 million in the fourth quarter, and are only 0.8 percent below a 5.18 million pace during the same period in 2010.

Lawrence Yun noted that lower priced homes have seen the best sales performance. “The biggest sales increase has been in the lower price ranges, which are popular with investors and cash buyers,” he said. “The preponderance of sales activity at the lower end is bringing down the median price, so what we’re seeing is the result of a change in the composition of home sales.”

“The rising sales trend in nearly all states is a part of the healing process to clear off inventory. Sales need to rise before prices can firm up,” Yun added.

Although sales are slightly below a year ago, the volume of homes sold for $100,000 or less in the first quarter was 8.9 percent higher than the first quarter of 2010, creating a downward skew on the overall median price.

Existing-home sales in the West jumped 13.5 percent in the first quarter to a level of 1.29 million and are 2.1 percent above a year ago.

The share of all-cash home purchases rose to 33 percent in the first quarter from 27 percent in the first quarter of 2010….a good indication that Investors are seriously into the market.

Who’s Buying?

First of all, there are more Investors in the national market

Investors accounted for 21 percent of first quarter transactions, up from 18 percent a year ago, while first-time buyers purchased 32 percent of homes, down from 42 percent in the first quarter of 2010 when a tax credit was in place. Repeat buyers accounted for a 47 percent market share in the first quarter, up from 40 percent a year earlier.

Some other interesting data show that First-time buyers are down (32% in the first quarter of 2011 vs 42% in 2010) …a reflection on the fact that the federal tax credit did, indeed, result in more sales last year. Repeat buyers are up from 2010 (47% in 2011 vs 40% in 2010).

In addition to the fact that Colorado Springs home values are holding steady, the bottom line for our local economy is that the Business Conditions Index …the overview of all aspects of the Colorado Springs economy issued by UCCS, has grown by 22% in April 2011 vs Feb 2009. That’s quite a leap and a good indicator that our city and our real estate market are moving in the right direction.

If you would like to discuss our local real estate market, Call us at 598-3200,or,1-800-677-MOVE(6683)

PROPOSED HOUSING FINANCE MARKET REFORM MUST ENSURE MORTGAGE AFFORDABILITY, ACCORDING TO NAR

Reforms to America’s housing finance market must ensure a reliable source of affordable mortgage lending for creditworthy consumers. That’s according to REALTORS® and other industry insiders who examined the federal government’s future role in the secondary mortgage market at the “Fannie Mae & Freddie Mac: Obama Options and Beyond” session during the National Association of REALTORS® 2011 Midyear Legislative Meetings & Trade Expo.

Some of the views expressed at the meeting about reforming the government-sponsored enterprises (GSEs) were:

• Reform is required
• Taxpayers must be protected from losses
• The federal government must continue to play a role in the secondary mortgage market to ensure a steady flow of mortgage liquidity in all markets under all economic conditions.
• Reform of the secondary mortgage market needs to be comprehensive and undertaken methodically.
• The government’s large presence in the housing finance is unhealthy and needs to be scaled back.
• Private capital needs to return to the housing finance market, but that most likely won’t happen until the market has stabilized.
• There needs to be more accountability and transparency in the secondary mortgage market so that private investors can best assess their risk and safely get back into the market.
• There should be a very limited government role in the secondary mortgage market.
• The private capital market has the funds and capacity to absorb Fannie Mae and Freddie Mac’s market share.
• Some government backstop will be essential in the future, since the housing and finance markets are sensitive to booms and busts.

Speakers reported that the government’s stated primary objective appears to be twofold: First, to lay out an immediate near-term path for reform, with steps that could be taken the next few years to reduce taxpayer risk and move the housing market to more stable footing, and second, to frame the discussion regarding the government’s long-term role in housing finance.

This topic will continue to be debated in the near-future, as the government decides the future of Fannie Mae and Freddie Mac.

MORTGAGE RATES DROP TO LOWEST LEVEL OF YEAR

According to the Wall Street Journal, May 13, 2011, Mortgage rates declined for the fourth straight week and reached their lowest levels of 2011.

The 30-year fixed-rate mortgage averaged 4.63 percent this week, reports Freddie Mac in its weekly mortgage market survey. Last week, the 30-year mortgage stood at 4.71 percent; compared to last year at this time, it averaged 4.93 percent.

Meanwhile, the 15-year fixed-rate mortgage also reached its lowest level of the year, averaging 3.82 percent this week from 3.89 percent last week. Last year at this time, the 15-year mortgage averaged 4.30 percent.

The 5-year adjustable-rate mortgage averaged 3.41 percent, down from last week’s 3.47 percent average. A year ago, it averaged 3.95 percent.

As rates continue to fall, the number of mortgage applications is increasing. Mortgage applications increased 8.2 percent this week compared to one week earlier, reports the Mortgage Bankers Association. The refinancing index increased 9 percent, the highest level since mid-March. Mortgage applications for purchase also got a boost, rising 7.1 percent compared to the previous week.

All indications point to a growing rate for home mortgages, so, if you are ever going to buy, now is the time.

Call us at 598-3200, or, 1-800-677-MOVE(6683)

VEGAS ….HERE WE COME AGAIN

This week we will be attending the Semi-Annual Conference of the relocation Industry. This meeting will feature speakers from some of the largest employers, corporations and relocation specialists in the nation and will be attended by around 2000 individuals and companies who serve the relocation industry.

It should be a unique view into what the ‘movers and shakers’ are predicting and we will provide you with some highlights next week.

Bye for now.

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

A businessman walked into a New York City bank and asked for the loan officer. He said he needed a loan and wanted to borrow $5000 for two weeks. The man’s credit checked out, so the loan officer said he would O.K. the loan, but the bank would need some security for such a loan.

The business man then handed over the keys to a Rolls Royce that was parked on the street in front of the bank. Everything checked out and the loan officer accepted the car as collateral for the loan. An employee then drove the Rolls into the bank’s underground garage and parked it there.

Two weeks later the businessman returned, repaid the $5,000 and the interest which came to $15.41.

The loan officer said, “We do appreciate your business and this transaction has worked out very nicely, but we are a bit puzzled. While you were away we checked and found that you are a multimillionaire. What puzzles us is why you would bother to borrow $5,000?”

The business man replied: “Where else in New York City can I park my car for two weeks for fifteen bucks?”

May 9, 2011

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

SHOULD YOU BUY THAT NEW HOME OR INVESTMENT PROPERTY NOW? LET’S LOOK AT THE NUMBERS.

WHAT DO THE LATEST NUMBERS FROM PPAR TELL US ABOUT OUR LOCAL real estate MARKET?

Our local market is trending up, and looks promising. In fact, compared to most other parts of the country, our local real estate market is looking fabulous. Here are some examples from the recent PPAR report for April of 2011:

• Average sales price in April - $215,466 (+1.9% from March 2011)
• Median sales price in April - $284,950 (+2.8% from March 2011 and +1.4% from April 2010)
• Average sales price in the first quarter of 2011 - $ 216,714 (+1.1% from 2010)
• Number of Single-family home sales in April – 748 (down 5.6% from 2010, primarily because of the artificial boost to sales caused by federal tax credit that was available in the first part of 2010)
• Number of First Quarter sales in 2011 – 2433 (down 4.6% from 2010, again, because of the artificial boost to sales caused by federal tax credit that was available in the first part of 2010)

It’s interesting to note that April sales of homes in El Paso County under $200,000 represented 56% of total sales. Sales of all homes under $300,000 represented 81% of all sales.

To see the latest Sales and Listing statistics on our local market, CLICK HERE

WHAT DOES THE LATEST “QUE” TELL US ABOUT OUR LOCAL real estate MARKET?

FIRST, WHAT IS THE QUE ?

The Southern Colorado Economic Forum (SCEF), sponsored by the University of Colorado in Colorado Springs, is an organization dedicated to reporting on the economic condition of the Southern Colorado business community. SCEF issues a quarterly report which covers such activities as: Residential sales, Multi family market, Airport trends, Sales taxes, Vehicle sales and registrations, Employment trends, etc. and contains 16 different statistical types of flow charts containing the most recent data. The report, referred to as the “QUE” is issued by Fred Crowley, the chief economist for the SCEF. The most recent QUE contains data for the first quarter of 2011.

To summarize some of the data in the most recent QUE:

• Our local Business Conditions Index (BCI) is 22.2% higher than Feb. 2009
• Our Employment rate, new vehicle registrations earnings and foreclosures are all better than 12 months ago
• Our Residential single-family permit level is improving.
• Our Housing price trends suggest there is stability in the local market.
• The trend over the past 12 months suggests the average sale price for a home over the last 12 months is increasing in the region. This trend suggests the housing market is recovering
• Further increases in housing prices are anticipated
• Increases in real rents are expected in 2011
• President Obama’s goal to end military deployments is expected to boost the local economy in 2012.

However, keep in mind that, as with most other areas of the economy, the future of real estate will be strongly affected by interest rates and job growth.

To see a complete copy of the latest QUE for the first quarter of 2011, CLICK HERE

AND, IF YOU WOULD LIKE TO LEARN MORE ABOUT OUR LOCAL ECONOMY ….

You might want to attend the 15th Annual Southern Colorado Economic Forum, Oct 14, 2011. Salzman real estate Services is proud to be the only residential Real Estate company to be listed as a “Forum Partner” in this annual event which supports the University of Colorado at Colorado Springs. Click here to learn more.

HERE ARE SOME COMMENTS ABOUT OUR CURRENT MARKET FROM ONE EXPERT

The following comments are excerpted from “All this bearish news makes me bullish” by Brett Arends, a senior columnist for MarketWatch and a personal-finance columnist for the Wall Street Journal.

There are several reasons I think this is a good time to buy:

• First, prices in many areas are now cheap. They have corrected a long way since the bubble began to burst five years ago. There are deals aplenty.
• The second reason: There are tons of foreclosures and short sales on the market. And there are plenty more sitting in the wings. Banks are holding back big shadow inventories of homes. And that means you can get a great deal. They have to sell. You don’t have to buy. You hold all the cards. Remember, the name of the game isn’t “let’s make a deal.” It’s “take it or leave it.”
• Third, in many places rental yields are terrific. It’s cheaper to own than to rent. And rents are rising, because so many former owners are now renters.
• The fourth reason I’m bullish is that you can get a very cheap mortgage. Thirty-year conforming loans are going as low as 4.3%. Throw in the tax break on the interest, and you are talking cheap finance.
• The fifth reason is that, as painful as this collapse has been, real estate has historically proven to offer very good long-term protection against inflation. Returns have typically averaged about 1% or 2% above inflation. At a time when everyone has been piling into gold, commodities and TIPS bonds to protect themselves against the possibility of inflation, it seems odd that the most popular and successful hedge, namely real estate, goes a-begging.
• The sixth reason I’m bullish is perverse, but I’m sticking by it. Everyone else is bearish. You cannot find a real-estate bull anywhere. No one wants to own this asset. No one wants to talk about it. No one wants to hear about it. Everyone seems to agree it’s just going down, down, down — forever. They said much the same about stocks in 1987, 2002 and 2009; Treasury bonds in 1982; and gold in 2000. I cannot prove this is capitulation, but it sure smells something like it.
• There are good homes out there going really cheap. If you hunt down the bargains, you’re disciplined about price, you get the right financing, and you hold on for five years or more, you’ll probably do pretty well from here.

If it’s good enough for the personal finance columnist of the Wall Street Journal, it’s good enough for me. Where do I sign Up ???

JUST IN TIME FOR BUYING SEASON, RATES HIT YEARLY LOWS
Daily real estate News | May 6, 2011

The 30-year fixed-rate mortgage, a popular choice among buyers, sank even lower this past week, matching its yearly low of 4.71 percent from January, reports Freddie Mac in its weekly mortgage market survey. Last year at this time, the 30-year fixed-rate mortgage averaged 5 percent.

Meanwhile, the 15-year fixed-rate hit a new yearly low of 3.89 percent this week. Last week, the 15-year fixed-rate mortgage averaged 3.97 percent. The 15-year rate averaged 4.36 percent last year at this time. It reached its lowest level on record in November when it averaged 3.57 percent.

The one-year adjustable-rate mortgage averaged 3.14 percent, down from last week’s 3.15 percent. Last year at this time, it averaged 4.07 percent.

"Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week,” says Frank Nothaft, Freddie Mac’s chief economist.

Source: “30-Year Fixed-Rate Mortgage Matches Yearly Low of 4.71 Percent,” Freddie Mac (May 5, 2011)

BIG JUMP EXPECTED IN NEW U.S. HOUSEHOLDS
Daily real estate News May 4, 2011

Millions of young adults are beginning to move out of their parents’ homes and create new households at the fastest rate since 2007. Some housing experts are predicting these young adults may provide a major jump to U.S. housing starts--possibly by more than 50 percent, even by next year--and increase housing consumption at a rate nearly double that of the past two years, Bloomberg News reports.

In 2011, between 750,000 and 1 million new households are expected to be created, says UBS Securities LLC’s Maury Harris and IHS Global Insight’s Patrick Newport. In the year ended March 2010, new households stood at 357,000--the lowest on record, according to U.S. Census data. The “depressed rate” in new household formation has continued to jeopardize the housing market’s recovery, experts say.

But as the employment picture continues to improve, more young adults are leaving Mom and Dad’s house and making a new home for themselves. The “moving-back-in-with-Mom-and-Dad phenomenon” had caused a backlog of pent-up households, Charles Lieberman, chief investment officer with Advisors Capital Management LLC in Hasbrouck Heights, N.J., told Bloomberg News. “Improved economic conditions” will “enable these households to split up and resume living in their own residences.”

Housing starts are expected to get a boost to about 648,000 this year and near 900,000 in 2012 (it stood at 586,800 last year), says Brad Hunter, chief economist and national director of consulting for Metrostudy. The increase in housing starts, he says, reflects a “shadow demand” for new homes among family members who have moved in together because of economic conditions.

“The demographic component of housing demand is strong," he says. "It’s just the economic and psychological components that are holding things back.”

This increase in households is great news for Homebuilders, Sellers and Investors. A rising tide of Households raises all boats.

Call us at 598-3200, or, 1-800-677-MOVE(6683)

GALLUP SAYS IT’S TIME TO BUY
Rismedia, May 5, 2011

Consumer attitudes towards the housing markets are echoing views in the years immediately preceding the peak of the housing boom, according to a new national survey by the Gallup poll.

Americans continue to see a buyer’s market in housing, according to an April 2011 Gallup poll. Sixty-nine percent of respondents say now is a good time to buy a house.

Historic Gallup data shows that many Americans also thought it was a good time to buy between 2003 and 2005, when housing prices were increasing and getting financing was relatively easy. Those attitudes began to change in 2006 as some homebuyers began to realize a housing bubble was taking shape in local markets across the country.

Men (74 percent) are about 16 percent more likely to see now as a good time to buy a home than women (64 percent). Americans making $75,000 or more a year (86 percent) are 18 percent more likely to see 2011 as a good time to buy a home than those making $30,000 – $75,000 (73 percent), and 72 percent more likely than those making less than $30,000 (50 percent).

Americans’ expectations for home prices in their local markets are slightly better now than they were in January. Currently, 30 percent of Americans say home prices will increase and 28 percent say they will decrease in the next year.

HERE’S SOME STARTLING NEWS ….NEARLY HALF OF HOME BUYERS SURVEYED DON’T UNDERSTAND ESSENTIAL INFORMATION ABOUT MORTGAGES
RISMEDIA, May 5, 2011

As the housing market continues to struggle, home buyers appear ill-prepared to take out a mortgage, answering basic questions about mortgage information wrong nearly half (46 percent) of the time, according to a recent Marketplace survey. In fact, 44 percent admitted they are not confident in their knowledge of mortgages or the mortgage process. The Marketplace survey surveyed prospective home buyers, asking them to gauge their own knowledge of mortgages, and asking basic questions about mortgage facts.

More than half (57 percent) of prospective home buyers who were polled do not understand how adjustable rate mortgages (ARMs) work. When asked if interest rates on 5/1 ARMs always reset higher after five years, the majority of home buyers answered yes. In fact, the interest rate will adjust to the prevailing rate after five years, even if rates have declined. Currently, many borrowers whose ARMs have recently reset have lower interest rates than they did when they took out the loan.

Additionally, one-third (34 percent) of the respondents who are prospective home buyers do not understand that lender fees are negotiable and that they vary by lender. They believe lenders are required by law to charge the same fees for credit reports and appraisals, when in fact home buyers can save money by shopping for the lowest fees.

Additional Survey Findings

• More than half (55 percent) of prospective home buyers in the study do not understand that mortgage rates vary throughout the day. In reality, mortgage rates can change rapidly, similar to how stock prices can change throughout the day. To get the optimum rate, it is important to monitor rates and shop around.
• More than one-third (37 percent) of prospective home buyers who were polled believe that pre-qualifying for a loan means they have secured financing. In fact, “pre-qualification” is used to describe the earliest step in the process when a lender approximates how much you can afford, but does not run your credit or request any sort of documentation to verify the information you provide. Although there is not a reliable industry standard definition of pre-qualification, it is not until a lender has approved your loan application without conditions that you can rest assured that the lender has committed to financing your loan.
• More than two in five (42 percent) of the polled prospective home buyers do not understand that Federal Housing Administration (FHA) loans are available to ALL buyers. Instead, they believe only first-time buyers qualify. FHA loans can cost less for many buyers, including repeat buyers with low to average credit scores and with down payments of less than 20 percent.
Let us help you negotiate your way through the mortgage maze. Call us at (719) 598-3200, or, 1-800-677-MOVE(6683)

LANDLORDS SAY THEY'LL RENT TO THE FORECLOSED
Daily real estate News - May 4, 2011

Eighty-two percent of independent landlords say they would rent to someone who had lost a home in foreclosure, if the applicant had otherwise good credit, according to a new survey by The National Association of Independent Landlords.

"Landlords typically won't rent to applicants with poor credit--and a foreclosure will absolutely slam someone's scores,” says Tracey Benson, president of The National Association of Independent Landlords. “The exception is when they see people who have paid their bills their whole life, but lost their job, can't meet their mortgage and must hand their keys back to the bank.”

Benson says that applicants with a foreclosure aren’t necessarily bad credit risks. “Often, they lost their jobs and homes through no fault of their own," she says.

As such, "because of this abundance of defaults, there is a greater need for rental property, so landlords should carefully vet applicants," Benson says, adding that landlords should do a thorough background check to determine whether defaulting applicants were a victim to financial woes or following a lifelong trend of not paying bills.

Investors, take note !!!

Let us localize this situation to Colorado Springs residential real estate investments. Call us at 598-3200, or, 1-800-677-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.
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JOKE OF THE WEEK

The worried housewife sprang to the telephone when it rang and listened with relief to the kindly voice in her ear. "How are you, darling?" it said. "What kind of a day are you having?"

"Oh, mother," said the housewife, breaking into bitter tears, "I've had such a bad day. The baby won't eat and the washing machine broke down. I haven't had a chance to go shopping, and besides, I've just sprained my ankle and I have to hobble around. On top of that, the house is a mess and I'm supposed to have two couples to dinner tonight."

The mother was shocked and was at once all sympathy. "Oh, darling," she said, "sit down, relax, and close your eyes. I'll be over in half an hour. I'll do your shopping, clean up the house, and cook your dinner for you. I'll feed the baby and I'll call a repairman I know who'll be at your house to fix the washing machine promptly. Now stop crying. I'll do everything. In fact, I'll even call George at the office and tell him he ought to come home and help out for once."

"George?" said the housewife. "Who's George?" "Why, George! Your husband! Is this 223-1374? "No, this is 223-1375." "Oh, I'm sorry. I guess I have the wrong number."

There was a short pause and the housewife said, "Does this mean you're not coming over?"