Real Estate Information

May 9, 2022

 

HARRY’S BI-WEEKLY UPDATE

           A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

IN RESIDENTIAL real estate, THE WORD OF THE YEAR IS “UP” …

…and it’s “up” in so many, many ways.

Let’s begin with prices.  In April, the Colorado Springs area average sales price for a single family/patio home was $561,907 which is up 16.6% year-over-year. That’s $60,000 more than the same time last year!  For condo/townhomes the average sales price was $387,761, up 19.6% year-over-year.  

The next “up” is mortgage interest rates.  At an average of 5.27% as of last week for a 30-year fixed-rate loan, they are now the highest they have been in nearly 13 years.  From January to April, rates rose at their fastest three-month pace since 1994.  And like housing prices, interest rates show no sign of slowing down their upward trend.  Some experts are predicting rates to go as high as 6% this year.  

Everything to do with Residential real estate is moving fast and will continue as the traditional spring buying season gets fully underway.

As I’ve been telling you, one of the reasons for the continued high escalation of prices is the shortage of available homes for sale.  With so few on the market over the past year, bidding wars and sales considerably over the listing price have become the norm.  When there are more homes for sale, price appreciation should begin to normalize, making it more affordable and hopefully less fiercely competitive for potential buyers.

In the recent past, higher interest rates might have meant slower sales, but at present we are not seeing that happen.  It could prevent some first-time buyers from qualifying, but in general there are so many folks wanting to buy homes that the interest rate, while considerably higher than what it was, is still low compared to years past and will not deter them from the search for a new home.  According to Ralph McLaughlin, real-estate economist for The Wall Street Journal, “We’ve never seen a time where mortgage rates have risen as quickly as they have and the market hasn’t cooled off”.

We are beginning to see more listings and I’m guessing that homeowners who were on the fence these last few years are realizing that the time to sell and trade up or move to a new neighborhood is NOW.  Home prices aren’t going to get any lower and mortgage rates likely aren’t going back down anytime soon. 

Another reason for the uptick in listings is that a year ago potential sellers were still concerned with having buyers in their homes, or themselves looking at new homes, due to the COVID pandemic.  Today this is not as much of a concern and sellers who were waiting are now entering the market.

It is still a Seller’s Market even with more listings and will continue that way until listings are considerably higher than at present. If you’re holding back from buying a house because of the rise in rates, consider that inflation is up even more!  

We haven’t seen inflation this high since the early 1980’s and if it continues, owning a home is an excellent cushion against rising inflation. Houses, like most physical assets, retain their value during high inflation and have done better than most such assets. 

In any case, there are a lot of things to consider if you are wanting to make a move.  To begin with, you will need to decide upfront exactly what your needs, wants and budget considerations are because when you find a home there is no time to delay in making your best offer.  And when I say best offer, I mean that.  Today’s market finds very creative offers that buyers are hoping will set them apart from the rest.  There is essentially no room for renegotiation and contingencies on the buying side.  

U.S. home prices are predicted to rise another 10% this year (and Colorado Springs area homes will likely rise conservatively 10 to 12%), so there’s no time like the present to start your search.

It is more important than ever to have a professional, seasoned, well-respected real estate broker such as me on your side because experience and negotiation expertise such as mine is more crucial than ever before.  Sellers are wanting their brokers to work with brokers on the other side who they know can bring an offer to closing.  

With the stock market in a slump, I’ve seen an uptick in those seeking homes for investment purposes.  Over the long haul, real estate has surpassed stock and bond returns and today even more so.  That, unfortunately, is adding to the housing shortage and hurting first-time buyers even more.

I truly believe that, while it may take considerably longer than in the past, there is most definitely a home for everyone.  It may not be exactly what you want, but especially for first-time buyers, homeownership is a far better option than renting if possible.  Homes can be updated and renovated, and when the time is right, can likely be sold for a profit or used as a rental property when it’s time to move on or trade up.

There’s a lot to discuss if a move is a consideration and I’ve got the experience to guide you when you’re ready.  

So, if Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

 

And now for statistics…

 

APRIL 2022

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

Here are some highlights from the April 2022 PPAR report:

 

In El Paso County, the average days on the market for single family/patio homes was a very low 10.  For condo/townhomes it was 14.  

Also in El Paso County, the sales price/list price for single family/patio homes was 104.2% and for condo/townhomes it was 104.1%. 

In Teller County, the average days on the market for single family/patio homes was 17 and the sales/list price was 104.1%. 

 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing April 2022 to April 2021 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 2,223, Up 18.3%

·       Number of Sales were 1,489, same as 1 year ago

·       Average Sales Price was $561,907, Up 16.6%

·       Median Sales Price was $484,450, Up 14.0%

·       Total Active Listings are 969, Up 74.0%

·       Months Supply is 0.7, no change

 

Condo/Townhomes:

·       New Listings were 248, Up 14.3% 

·       Number of Sales were 227, Up 2.7%

·       Average Sales Price was $387,761, Up 19.6%

·       Median Sales Price was $365,000, Up 19.7%

·       Total Active Listings are 79, Up 5.3%

·       Months Supply is 0.3, Up 2.0%

 

Now a look at more statistics…

 

APRIL 2022 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:

 

• Sold Listings for All Properties were Up 0.4%

 

• Median Sales Price for All Properties was Up 15.0%

 

• Active Listings on All Properties were Up 6.5%

 

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

 

 

COLORADO SPRINGS HOME PRICES TO SURPASS MUCH OF THE COUNTRY IN THE FIRST QUARTER OF 2022

The National Association of Realtors, 5.3.22

In the recently published report, 70% of the 185 Metropolitan Statistical Areas (MSAs) surveyed quarterly by the National Association of Realtors (NAR) reached double-digit median home price appreciation in the first quarter of 2022, surpassing the 66% of the previous quarter.

The median price nationally rose 15.7% quarter-over-quarter to $368,200.

Colorado Springs surpassed that, with the median price of single-family homes jumping 17.4% to $455,000 during the first quarter of the year.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 32^nd highest of the cities surveyed.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver, Boulder and Fort Collins areas, which makes our city more attractive to potential companies and individuals wanting to relocate to Colorado.

This graphic depicts areas with the largest percent gain:

 

To see all 185 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  Or you can click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

And if you have any questions, you know where to reach me.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 4.29.22

Here is the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.

 

 

For those of you who like to plan ahead, the always informative UCCS Economic Forum Event this year will be held at the ENT Center for the Arts on Thursday, September 1, 2022, from 1:30-4:30, with a networking and happy hour to follow.  Full agenda and registration will be available next month.

April 19, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

 

IT SEEMS THE ONLY WAY IS UP WHEN IT COMES TO HOME APPRECIATION…AND NOW FOR MORTGAGE INTEREST RATES AS WELL…

As you are aware, home prices are continuing their upward trend with no realistic end in sight until there are more available homes for sale.  However, now there’s a wrinkle in the equation, and just in time for the “normally” busy spring buying season.

With mortgage interest rates rising their fastest in 35 years, and now at a more than 10-year high of over 5% as of last Thursday, this can increase a homeowner’s monthly borrowing costs by hundreds of dollars at a time when everything from gasoline to groceries are also increasing.

Most mortgage economists are saying that if this results in a decrease in buyer activity over the next few months, it will only moderately cool the market.  According to the National Association of Realtors (NAR), about 25% of existing homes bought in February nationwide were bought with cash.  And households that are moving from high-cost areas to more affordable ones might be less affected by rising mortgage rates.

According to a broker in Westminster, a suburb of Denver, “If half our buyers got priced out of the market, we would still have eight buyers for every listing”.  

A number of buyers are still actively looking and wanting to buy before interest rates rise any higher.  Lawrence Yun, chief economist of NAR recently said, “The early months of the rising rates don’t see much of a change in the buyer intensity, but inevitably there will be a reduction in the buyer pool”.  He said even as higher rates slow demand, it can take months for sellers to cut prices as their homes linger on the market.

I’ve been telling you for some time that if you’ve been sitting on the fence, NOW is the time to get the ball rolling.  If you are waiting for prices to drop you might be waiting a very long time.  And during that time, it’s likely that interest rates will continue to rise.  

Experts who have said that the days of 3% mortgage rates are gone are now beginning to wonder if possibly the days of 4% mortgage rates are a thing of the past as well.

The competition for available homes is still high and the equity in your present home is likely higher than you might know, but if you’ve even considered a move, now is the time to find out what your wants, needs and budget requirements dictate for your next home.

That’s where I can help.  Together we can develop a plan that could work for your individual family situation, but don’t wait too long.  The search isn’t getting much easier even with the higher interest rates and the competition for homes in the Colorado Springs area continues to heat up. 

My 50 years in the local arena give me a distinct advantage over many other brokers.  I’ve witnessed every cycle possible during that time and know the ins and outs of home buying and selling.  My background in Investment Banking, coupled with my expertise in negotiation, go to work in your favor.

Give me a call sooner than later at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s see how we can help make your Residential real estate dreams come true.

 

MARCH 2022 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

These are usually published in the first eNewsletter of the month and were not available at press time two weeks ago, so I am including them here.

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 1.2%

 

• Median Sales Price for All Properties was Up 15.6%

 

• Active Listings on All Properties were Up 0.9%

 

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

          

 

MARCH 2022 PPAR STATISTICS LINK

Some readers had trouble opening the link in the last eNewsletter showing the full PPAR report for March 2022.  I’ve included it again here in case you missed it.  As stated:

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

THE FUTURE OF HOME PRICE APPRECIATION AND WHAT IT MEANS TO YOU

KeepingCurrentMatters, 4.7.22

Some consumers are wondering how the recent run-up in home prices will affect them and if it will lead to a similar situation to the housing crash 15 years ago.

However, experts continue to say the market is totally different today—just as I’ve been telling you for the past couple of years. 

According to Odeta Kushi, Deputy Chief Economist at First American, “…we do need price appreciation to slow today (it is not sustainable over the long run), but high price growth today is supported by fundamentals—short supply, lower rates and demographic demand.  And we are in a much different and safer place:  better credit quality, low debt-to-income ratio, and tons of equity.  Hence, a crash in prices is very unlikely.”

To return to a more realistic market, appreciation does need to slow down.  In the latest Home Price Expectation Survey—a survey of a national panel of over 100 economists, real estate experts and investment and market strategists, it forecasts that home prices will continue appreciating over the next five years.  Here are the expected year-over-year rates of home price appreciation on the average of all 100+ projections (keep in mind that this is a national forecast, and as you’ve seen in my monthly reports, the Colorado Springs area has shown higher home appreciation than the national average):

 

• 2022: 9% (my personal forecast for the local market is estimated to be between 10-12% for 2022)

 

• 2023:  4.74%

 

• 2034:  3.67%

 

• 2025:  3.41%

 

• 2026:  3.57%

 

What does this mean for you as a buyer?  With limited homes available for sale and mortgage rates on the rise, it can still be a challenging market to navigate as a buyer.  But buying a new home sooner than later has its benefits—if you wait to buy, you’ll pay more in the future.  And if you buy now, you’ll actually be in the position to make future price increases work for you.  Once you own the home, the rising home prices will help you build equity, and by extension, your own household wealth will increase.

 

Here’s an example based on a home purchased in January of this year at $360,000 (the median price nationallyaccording to NAR, rounded up to the nearest $10k).  If you factor in the forecast for appreciation from the Home Price Expectation Survey, you could accumulate over $96,000 in household wealth over the next five years:  

 

(Once again, keep in mind this is a national average and the Colorado Springs area will be both higher in price as well as percentage of appreciation)

 

The key to trying to decide if now is the time to buy is knowing where home prices are heading.  With experts saying that prices will continue to climb in the years ahead, although at a more sustainable rate, if you’re ready to buy…NOW is the time.  ​​

 

April 6, 2022

 

HARRY’S BI-WEEKLY UPDATE

               A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

“IT’S THE SIGN OF THE TIMES” ... AT LEAST FOR THE FORESEEABLE FUTURE

As many of you know, it’s still quite the “Seller’s Market” here in Colorado Springs and around most of the country.  

Rising homes prices, bidding wars, offers considerably over list price and all-cash offers with no contingencies are pretty much the norm now.

And, unfortunately, until there are more available homes for sale this is not going to change a lot.  However, we are starting to see an uptick in new home construction here and that will help the situation somewhat.  Unfortunately, building materials are still scarce and timelines for completion aren’t set in stone, so to speak.  

With interest rates on an upward trajectory, folks who have been sitting on the fence, or waiting to see if home prices would fall, are starting to see that there’s no time like the present to see what they might do to make a move that is right for them.

New listings, as you will see below, are up considerably from March, however, that doesn’t equate to more choices.  As soon as a home gets listed, there is often a line of potential buyers waiting to grab it, some even sight unseen.  

While the chart below shows 705 single-family/patio homes for sale, as of last Sunday there were actually only 458 available in El Paso County and 45 in Teller County!  And the City of Colorado Springs makes up 358 of those 458 homes available in El Paso County!  Not great numbers for certain.

Two things I’ve been saying for some time now are happening.  The mortgage rate increases are now happening.  But while they are higher than several months ago, they are still quite reasonable compared to the not-so-distant past and current equity in your present home will likely make little difference in your monthly output for a new home.  

And, as I have predicted, average home prices are lower than they have been, but at 14.1% for existing homes in March year-over-year, they are still trending toward my forecast of 10%-12% year-over-year by the end of 2022. 

It is actually good to see the average prices trending down a bit as it will make up for the higher mortgage interest rates, as well as make it easier for first-time home buyers to enter the market.

Rents are rising so fast all over the nation, and especially here at home, and that’s another factor driving the rush toward homeownership. 

Traditionally, April, May and June make up about 40% of the home sales annually, both nationally and locally.  However, as you might imagine, nothing is traditional at the present, and homes are going faster than I have ever seen.

That brings me to a very important consideration for those of you either buying or selling.  It is more important than ever to use a seasoned professional real estate broker like me in all your transactions.  In this highly competitive market, I’ve seen some agents make promises to potential clients simply to get a listing.  Not only is this ethically wrong, but it’s also not fair to the potential seller or buyer. 

While homes ARE selling for more than list price in many instances, it’s still wise when listing your home to know it’s true value.  That’s what comparables are for.  As well as good advice from your listing or selling broker.  Yes, if you are selling, it’s likely you will get more than you expect for your home, but first you need to get folks to come look at it.  If it’s listed too high, you’ve already eliminated some who might want to buy your home.  The bidding wars, etc. can come later, but it’s so important to list your home “right” to begin with.  

For those of you who are looking to buy, it’s important to really know your needs, wants and budget and not to get caught up in “winning” a bidding war for the sake of winning.  

I’ve been in the local Residential real estate area for 50 years this month and I’ve seen it all.  I not only know how to “price” a listing, but how to advice a client when they will “win” by walking away.  I’ve seen every cycle imaginable and my expertise in negotiation is especially needed at times like now.

Speaking of negotiation, I just completed another continuing education National Association of Realtors (NAR ) class entitled “real estate Negotiation Expert”, thus reaffirming my title of “Mr. Negotiator”!

If buying or selling is something you’ve even considered, there’s no time to wait.  Let’s get together and put your needs, wants and budget requirements together to find the home you desire for you and your family.

Please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make your residential real estate dreams a reality.

 

And now for statistics…

 

MARCH 2022

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

Here are some highlights from the March 2022 PPAR report:

In El Paso County, the average days on the market for single family/patio homes was a very low 11.  For condo/townhomes it was 14.  

Also in El Paso County, the sales price/list price for single family/patio homes was 104.1% and for condo/townhomes it was 102.9%. 

In Teller County, the average days on the market for single family/patio homes was 22 and the sales/list price was 100.9%.   For Teller County condo/townhomes the average days on the market was 14 and the sales to list price was 101.1%.

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing March 2022 to March 2021 for All Homes in PPAR:

                        

                        Single Family/Patio Homes:

·       New Listings were 1,834, Up 13.2%

·       Number of Sales were 1,361 Up 1.4%

·       Average Sales Price was $539,684, Up 14.1%

·       Median Sales Price was $475,000, Up 15.9%

·       Total Active Listings are 705, Up 52.6%

·       Months Supply is 0.5, Up 37.2%

 

Condo/Townhomes:

·       New Listings were 234, Down 7.9% 

·       Number of Sales were 249, Up 18.6%

·       Average Sales Price was $381,852, Up 16.8%

·       Median Sales Price was $365,000, Up 20.4%

·       Total Active Listings are 74, Down 20.4%

·       Months Supply is 0.3, Down 1.1%

 

Normally I provide you with more neighborhood statistics here but they were not available at press time so I will put them in the mid-month eNewsletter.

 

WHAT’S UP WITH MORTGAGE RATES AND WHERE ARE THEY GOING?

KeepingCurrentMatters 3.30.22

Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year and the rate jumped more than a quarter of a point from just a week ago.  The graph below shows you how the mortgage rate movement was steady in 2021 compared to the rapid increase in rates this year:

 

 

Only a few months ago, Freddie Mac projected that mortgage rates would average 3.6% in 2022 and earlier this year Fannie Mae forecast mortgage rates would average 3.8% in 2022.  As you can see above, rates have already surpassed those projections.

 

Where are the Mortgage Rates Going from Here?

In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward:

 

Greg McBride, Chief Financial Analyst, Bankrate:

“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”

 

Nadia Evangelou, Sr. Economist and Director of Forecasting, NAR:

“While higher short-term rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation.  This, I expect the 30-year fixed mortgage to continue to rise, although we aren’t likely to see the big jumps that occurred over the past few weeks.”

 

Len Kiefer, Deputy Chief Economist, Freddie Mac:

“Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.”

 

Danielle Hale, Chief Economist, realtor.com:

“…As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months.”

 

What does this mean for potential buyers?

With both mortgage rates and home values expected to increase throughout the year, it would be wiser to buy sooner than later if you are able because it will cost you more the longer you wait.  

However, as I’ve been saying, there is a possible upside to buying now.  While you’ll likely be paying a higher price and a higher mortgage rate than you might have last year, rising prices have a long-term benefit once you buy.

Purchasing a home today at $400,000 with 10% down, you would be taking out a $360,000 mortgage. According to mortgagecalculator.net, at a 4.42% fixed-rate mortgage, your payment would be $1,807 a month (not including insurance, taxes and other fees that vary by location).

Let’s put that mortgage payment into a new perspective based on the substantial growth in equity that comes with the escalation in home prices.  Pulsenomics surveys a panel of over 100 economists, investment strategist and housing market analysts every quarter about their expectations for future home prices in the United States. Several weeks ago, Pulsenomics released their latest Home Price Expectation Survey which revealed that the average of the experts’ forecasts call for a 9% increase in home values in 2022.  (As I’ve been telling you, for Colorado Springs I predict an average of 10%-12% for 2022).

Based on the 9% projection, a $400,000 house you buy today (optimistic in the Springs!) could be valued at $436,000 by this time next year ($440,000 - $448,000 in the Springs).  Broken down, that means the equity in your home would increase by $3000+ a month over that period.  That is greater than the estimated monthly payment above.  

And while your net worth is tied to the home, it is still one way to put the home price appreciation to use in a way that benefits you and your family.

 

Bottom Line?

While paying a higher price coupled with a higher mortgage for a home can be hard to swallow, waiting will cost you even more.  

If YOU are ready, willing, and able, I’m equally ready, willing, and able to assist you in finding the situation that can work for you.

 

WHAT TO EXPECT FROM THE SPRING housing market?

KeepingCurrentMatters 3.24.22

While there are multiple factors causing some uncertainty, including the conflict overseas, rising inflation, and the first rate increase from the Federal Reserve in over three years—the housing market appears to be relatively immune.

Here’s what experts are saying:

 

1. Mortgage Rates Will Climb.  As I mentioned earlier, Freddie Mac has reported that the 30-year fixed mortgage has increased by more than a full point in the past six months.  And despite some mild fluctuation in recent weeks, experts believe rates will continue to edge up over the next 90 days.

 

2. Housing Inventory Will Increase. Realtor.com recently reported that the number of newly listed homes has grown for each of the last two months nationally and NAR announced that the months’ supply of inventory increased for the first time in eight months.  Since inventory of existing homes usually grows each spring, and based on recent activity, the next 90 days could bring more listings to the market, but the demand will still be great, and you will need to be prepared to make a decision quickly. And if you are thinking of selling, it would be wise to list your home sooner than later as your leverage in any negotiation will be impacted as additional homes come to the market.

 

3. Home Prices Will Rise.  Econ 101 again, folks. Prices are determined by supply and demand and even thought the number of homes entering the market is increasing, buyer demand remains and will continue to remain very strong.  In the realtor.com recent Housing Report:

“During the final two weeks of the month, more new sellers entered the market than during the same time last year…however, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”

 

4. Won’t Increasing Mortgage Rates Cause Home Prices to Fall?  While some may believe a 1% increase in mortgage rates will impact demand so dramatically that homes prices will have to fall, experts say otherwise.  According to Doug Duncan, Sr. Vice President and Chief Economist at Fannie Mae, “What I will caution against is making the inference that interest rates have a direct impact on house prices. That is not true.”

Freddie Mac studied the impact that mortgage rates increasing by at least 1% had on home prices in the past and here are the results of that study:

Bottom Line?  Once more with feeling, if you’ve even remotely considered a move, NOW is that time.  Waiting will hit you in the pocketbook.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 3.30.22 

Here is the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.

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

 

Also, be sure to mark your calendar for the always informative UCCS Economic Forum Event this year will be held at the ENT Center for the Arts on Thursday, September 1, 2022, from 1:30-4:30, with a networking and happy hour to follow.  Full agenda and registration will be available in June.

 

FEATURED LISTING:

YOURS, HERE?  IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.

March 24, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

 

RESIDENTIAL real estate SALES AND PRICES CONTINUE THEIR STATUS QUO…

Good news for many, but not so good for others. 

As you will see in the following story, the average American homeowner gained more than $55,000 in equity over 2021.  While that is a mind-boggling figure for those of us who have been in the business for many, many years and great news for current homeowners, it’s concerning for first-time buyers and those who want to sell and trade up.

I’ve been writing about the low number of existing homes for sale over the last couple of years and not much has changed.  It’s still Econ 101—Supply and Demand.  When there are fewer homes for sale, the “Seller’s Market” means higher list prices with bidding wars and sales way over list price.  That in turn helps raise the equity in all homes since scarcity of anything means it will cost more to buy.

A good example is a home I sold this past week.  It was listed at $479,000 and went on MLS Friday morning.  After the first showing we had an excellent offer and by the end of the day, there were more.  More than half of the offers had escalation clauses which meant the buyer was willing to go $1000 or more over the highest bid up to a set amount, which in one case was $550,000!

Yes…you read that right...one of the offers was up to $71,000 over the list price of the home!  

That’s what I mean about crazy times in the Residential real estate market. With interest rates on the rise, folks who have been taking a wait and see attitude are now jumping in before rates and home prices get any higher.  That’s making for an even more competitive market, and buyers are having to come up with inventive ways to get the seller to even consider their offer.  I recently read in The Wall Street Journal about how home buyers are getting very creative in their offers.  One example referred to an offer made by a potential buyer to the seller for a 50% discount for a year at his Washington, D.C. restaurant.  Yes, creative incentives are the norm these days and the more creative the better.

With rental rates at an all-time high, home ownership is on the mind of many renters.  However, first-time buyers are having a tough time qualifying for these higher priced homes.  I’ve had several parents who have used the equity in their present home to help their children with down payments on first homes.

It’s also a great time to buy an investment property if that’s something you have considered.  It’s not for everyone, but if it’s something you’ve considered, talk to your tax and investment advisors and then give me a call.

Today’s market makes it more important than ever to work with a seasoned, knowledgeable real estate broker like me.  I’ve worked in the local Residential Real Estate arena for almost 50 years and have seen just about every cycle imaginable.  I know how to write an offer that gets attention and coupled with my expertise in negotiation, I can make the whole process smoother.  Another important factor is my relationship with other brokers, since most that have dealt with me in the past know when I present an offer it’s very likely to close. 

And for my sellers, I provide the ability to review offers and point out the pros and cons of each.  This could mean taking a little less but knowing that it’s an offer that will close.  

After all, offers are only offers until they close.  So, turning away good offers for one that might offer a little more cash could hurt in the long run if it’s not a viable offer that can make it to the closing table.

For those of you who have waited, wait no longer.  NOW is the time to make your move.  While there are not a lot of existing homes from which to choose, we can usually find one that can work for you.  New home construction is also an option and that’s an area where I can assist you as well, for no additional cost to you.  

But don’t delay.  If you’ve even considered a move, either to sell and trade up or move to a new neighborhood, the best move you can make now is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s figure out how we can make your Residential real estate dreams come true.

 

THE AVERAGE AMERICAN HOMEOWNER GAINED MORE THAN $55K IN EQUITY LAST YEAR

KeepingCurrentMatters, 3.21.22

As I just mentioned, home values are on the rise due to low supply and high demand.  Bidding wars are driving up prices and will continue to do so until there are more existing homes for sale.

According to Dr. Frank Nothaft, chief economist at CoreLogic, “Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest in its 45-year history, generating a big increase in home equity wealth”.

In the latest Home Equity Insights from Corelogic, it showed that the average homeowner’s equity has grown by $55,300 over the last 12 months.  As I’ve mentioned before, our local average price increases have been considerably over the U.S. average for some time now.

Below is a graphic showing what’s happening across the United States.  It measures gains year-over-year for the 4^thQuarter 2021.

 

What does this mean to you?  Well, if you are considering selling to trade up or move elsewhere, the equity in your present home will likely mean a larger down payment on your next home.  If you’ve worried about rising home prices, your current equity can likely go a long way to helping even things out.

If you want to know how much equity you have in your present home, give me a call and I can help you with that.  I believe you might be surprised what you can easily afford and keep your monthly output close to what you are currently paying.

 

WHAT YOU NEED TO KNOW IF YOU’RE THINKING ABOUT BUILDING A HOME

KeepingCurrentMatters, 3.23.22

With options for existing homes nothing like they once were, you might be considering new construction as an option. Homebuilders today are doing all they can to keep up with the demand, but they are currently facing obstacles outside of their control.

Supply chain issues are a big hurdle.  According to a recent article from HousingWire, “nearly everything needed in the homebuilding process is facing some sort of delay and subsequent price increase.”

And it’s not just lumber. Roofing materials, windows, garage doors, siding, and gypsum (which is used in drywall) are also affected.

When supplies are low, charges inevitably go up and a lack of availability is causing delays, meaning builders are struggling to stay on schedule.

Another challenge is the skilled labor shortage.  It’s nothing new since it’s been an issue for more than a decade now, but the good news is that a February jobs report shows employment in the construction industry is showing gains.  

How does this impact you?

When you weigh your options in trying to decide between buying an existing home or building a new one, factor the potential delay in the new home construction into your decision.  It doesn’t mean you shouldn’t consider new home construction, but it does mean you should consider your timeline and if you are willing to wait while your home is being constructed.

And once again, if new construction is in your plans, I’m your guy.  I can help with site and elevation selection as well as help in getting you the best mortgage to fit your needs.  This all comes as part of my special brand of customer service and at no additional cost to you.  So, if new home construction is in your plans, I’m only a phone call away.

 

WHAT ARE THE BENEFITS OF BUYING AND OWNING A RENTAL PROPERTY?

American Family Insurance, 3.8.22

Investment properties can be an appealing source of income, even to those who have never considered it before.  The benefits of investing in rental property can help you advance towards your long-term financial goals.

Buying an investment property is not a lot different from purchasing a single-family home for private use.  The process is very much the same, from making an offer to closing the deal.  real estate professionals such as me, work with investor buyers just as we do buyers for homes of their own.

Selecting the property is somewhat the same, as you will want to look at the property through a similar lens—seeking the perfect blend of affordability, financial opportunity, and potential resale value.

Fixer-uppers have great potential here in that rental properties that require a bit of an up-front investment are worth your consideration.  

As I’ve mentioned in the past, I’ve also had investors purchase newly constructed homes with the idea that there would be little, if any, required maintenance for many years and they could attract long term renters at a better monthly rental fee.

There are a number of benefits of investing in rental properties which include:

• Generating a monthly passive income stream
• Making the right purchase can increase your resale price
• Rental unit furniture, appliances and other items may qualify for a tax deduction
• Write off of your landlord insurance
• Through 2025, there is a special income tax deduction that affords business owners a deduction up to 20% of net rental income or 2.5 percent of the purchase price of the property and/or other expenses likes salaries for rental property employees.  Please check with your tax attorney or CPA for details.
• Renters pay down your principal

 

Now, the potential problems with owning a rental property:

• Troublesome tenants
• Lack of liquidity
• Maintenance Costs
• Insuring your investment

 

There are lots of things to take into account when considering becoming a landlord.  As I’ve said time and again, this is something you need to discuss with your tax and investment advisors.

The bottom line is that over the long haul, the appreciation of single-family homes has been greater than the growth of public stocks on the NYSE.  This is certainly something worth considering in your long-term financial goals.

I’ve been a landlord for many, many years and would be happy to share the upside as well as the downside with you.  Just give me a call and we can discuss.

 

PRICING YOUR HOME RIGHT IS CRITICAL

KeepingCurrentMatters,

The price you set for your house sends a message to potential buyers.  Price it too low and it might raise questions about the condition of the home.  Price it too high and you might deter potential buyers.

Even in a Seller’s Market, it’s crucial to send the right message to potential buyers.  You need top aim directly for the center…not too low and not too high:

Don’t try to figure this out by yourself.  When you’re ready to list your home, give me a call.  I can help you determine the correct listing price, based on actual facts and comparables.  That way you will be able to get the very best price possible for your present home.

March 9, 2022

HARRY’S BI-WEEKLY UPDATE

    A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

ANOTHER MONTH AND MORE OF THE SAME…

What can I say?  The Residential real estate Market in Colorado Springs is hot, hot, hot.  And it would even be hotter if there were more existing homes for sale.  

Our average sales price for single family/patio homes was $514,757 in February!  That number is even astonishing to me, having worked in this arena for 50 years next month.  I can still remember average home prices in the $25,000 range.  Of course, I can also recall interest rates of 16% so while home prices have risen, interest rates have declined sharply, which has helped keep monthly payments more affordable than you might expect.

That’s why I tell my clients to look at their total monthly output rather than focusing on the higher prices of today.  The still historically low rates have made it easier on the pocketbook, but rates are beginning to rise and will do so slowly over the next year.  I don’t see them getting to 16% anytime soon, but they will be higher by year-end according to most economists.

With the traditional spring buying season just about here, it’s definitely time to consider your options if a move is even remotely in your future.  Homes sell faster than ever before and multiple offers and ones over list price have become the norm in recent times.  

Just this past week, a broker in our office listed a home for $425,000 and it had 24 offers! The accepted offer was far above list price.  Hard to imagine, but there are a lot of folks looking for homes and very few existing ones to choose from.  It’s most definitely still a Seller’s market and will continue that way until more homes come up for sale.  As you will see below, at the end of February there were only 487 active listings of single-family/townhomes in the Pikes Peak Area MLS and 63 condo/townhomes.  With so few homes available you can see why competition is so fierce.

There are a lot of things to consider if you are wanting to make a move.  To begin with, you will need to decide exactly what your needs, wants and budget considerations are upfront because when you find a home there is no time to delay in making your best offer.  And when I say best offer, I mean that.  Today’s market finds very creative offers that buyers are hoping will set them apart from the rest.  There is essentially no room for renegotiation and contingencies on the buying side.  

However, with U.S. home prices predicted to rise another 10% this year (and Colorado Springs area homes will likely rise conservatively 10 to 12%), there’s no time like the present to start your search.

I realize this sounds a bit crazy, but it’s today’s reality.  It is more important than ever to have a seasoned professional, well respected real estate broker such as me on your side because experience and negotiation expertise such as mine is more crucial than ever before.  Sellers are wanting their brokers to work with brokers on the buying side who they know can bring an offer to closing.  

Lately with the stock market in a slump, I’ve seen an uptick in those seeking homes for investment purposes.  Over the long haul, real estate has surpassed stock and bond returns and today even more so.  That, unfortunately, is adding to the housing shortage and hurting first-time buyers even more.

However, it’s not all dismal news.  I truly believe that, while it may take considerably longer than in the past, there is most definitely a home for everyone.  It may not be exactly what you want, but especially for first-time buyers, homeownership is a far better option than renting if possible.  Homes can be updated and renovated, and when the time is right, can likely be sold for a profit or used as a rental property when it’s time to move on or trade up.

There’s a lot to discuss if a move is a consideration and I’ve got the experience to guide you when you’re ready.  

So, if Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

FEBRUARY 2022

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

Here are some highlights from the February 2022 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a very low 10.  For condo/townhomes it was 11.  

Also in El Paso County, the sales price/list price for single family/patio homes was 103.0% and for condo/townhomes it was 103.1%. 

In Teller County, the average days on the market for single family/patio homes was 20 and the sales/list price was 101.6%. 

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing February 2022 to February 2021 for All Homes in PPAR:                     

                        Single Family/Patio Homes:

·       New Listings were 1,186, Down 12.1%

·       Number of Sales were 1,015, Up 3.5%

·       Average Sales Price was $514,757, Up 13.2%

·       Median Sales Price was $465,000, Up 15.4%

·       Total Active Listings are 487, Up 5.4%

·       Months Supply is 0.5, Up 1.6%

 

Condo/Townhomes:

·       New Listings were 199, Up 3.1% 

·       Number of Sales were 160, no change from last February

·       Average Sales Price was $353,683, Up 17.6%

·       Median Sales Price was $362,500, Up 22.9%

·       Total Active Listings are 63, Down 11.3%

·       Months Supply is 0.4, no change from last February

 

Now a look at more statistics…

 

FEBRUARY 2022 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 1.1%

 

• Median Sales Price for All Properties was Up 16.0%

 

• Active Listings on All Properties were Down 20.2%

 

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

 

RENTAL PROPERTIES IN COLORADO SPRINGS SEE SIGNIFICANT SPIKE IN 2021

Colorado Springs Business Journal, 2.25-3.3.22

Rental rates in Colorado Springs have continued their upward climb according to rental listing site Dwellsy.    The Colorado Springs Metropolitan Statistical Area (MSA) shows a very significant 42.6 percent jump in median monthly rent prices from January to December 2021.

One of the driving factors is the demand for single or multi-family rental properties.  Median monthly rent prices for single-family properties rose 42 percent from January to December, reaching $2,300 per month, while rent prices for multi-family units alone went up by 21 percent to $1,325 per month, according to the Dwellsy analysts who separated the two categories.

RentPath reported an average rental listing price of $1,150 per month for one-bedroom units and $1,327 per month for two-bedroom units in December.

This illustrates the demand for and availability of homes for rent vs. apartments last year.  With more folks working from home, there is a greater demand for space, which often translates to a single-family rental.

The chart below illustrates the rental increases in Colorado Springs and other Colorado cities in 2021 vs the U.S. market as a whole:

 

 

As I have been telling you, investment properties have become a hot commodity as they represent not only extra monthly income, but home appreciation is significantly outperforming stocks and bonds at present and has done so consistently over the years.  

This is also just another reason contributing the housing shortage as properties bought for investment take homes away from those who are looking for homes to buy for themselves and their families.

If you are renting or know someone who is, now is the best time to start looking toward homeownership if possible.  Not only are you essentially investing in yourself rather than contributing to someone else’s income, you are building equity in your own home.

There are lots of possible ways to get into homeownership and/or investment property purchases.  If either of these are something you are now considering, please give me a call and let’s see how we can make it work for you.

 

ERA SHIELDS “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW

ERAShields, 2.28.22

As always, I am pleased to provide you with all the most current local information.  This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.  

Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety.  

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 2.25.22.22

Here is the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.

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

And for those of you who like to plan ahead, the always informative UCCS Economic Forum Event this year will be held at the ENT Center for the Arts on Thursday, September 1, 2022, from 1:30-4:30, with a networking and happy hour to follow.  Full agenda and registration will be available in June.

 

 

FEATURED LISTING:

YOURS, HERE?  IT MOST CERTAINLY WILL GET A LOT OF ATTENTION—NOT ONLY FROM ME, BUT ALSO FROM MY READERS AND ANYONE LOOKING TO BUY.

February 22, 2022   2.22.22 (in case you missed it!)

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

QUESTIONS ASKED AND ANSWERED…

Today’s unprecedented Residential real estate market has brought with it many new questions.  In most cases they can be given old answers.  

My clients have been wondering how the home prices and mortgage rates are going to affect them.  They also wonder if this is a good time to sell and move up or purchase for investment purposes.  

As I’ve said time and again, the only right time to buy and sell is when it’s right for you.  Period.  Prices change all the time, as do mortgage rates.  It’s important to realize that when it’s the right time for you, we can find a way to work with your needs, wants and budget.

Just because median home prices are continuing to rise and mortgage rates are at their highest level in three years, it doesn’t mean you have to stay where you are if that’s not your desire.  Your current home is likely worth a lot more then you might imagine, and that equity will go a long way to keeping your monthly output lower than you might guess. It’s simply a matter of sitting down with me and figuring it all out.  

If you or a family member are currently renting, you already know that rents are at an all time high.  Most often these days it’s a lot less expensive to buy than to rent if possible, and the result will be equity building for you rather than for your landlord.  I tell folks they need to start somewhere and then move on from there.

As you might imagine, investment properties are another question.  And the answer again is, if it’s right for you, then it can be a great idea.  However, there are a number of considerations such as whether you want to be a landlord or want to pay a property manager to handle things for you.  It’s also important to check with your tax and investment counselors to make certain that purchasing an investment property fits into your long-term financial planning.  

If the answer is yes, then I’m most definitely your guy, as I own investment properties and have for most of my almost 50 years in the local Residential real estate arena.  I can give you the pros and cons from my personal experience and that type of information is invaluable.

One of the most asked questions these days is, “Are we facing a housing bubble?”.  And the answer to that is no.  Every housing economist has said that this current market is very different than it was during the housing crash 15 years ago.  

To begin with, in 2010 the U.S. Congress enacted the “Dodd-Frank Wall Street Reform and Consumer Protection Act”,a United States federal law that overhauled financial regulation in the aftermath of the Great Recession.  It made changes affecting all federal financial regulatory agencies and almost every part of the nation’s financial services industry.  

This Act created agencies to ensure that consumers were protected against abuses related to credit cards, mortgages, and other financial products.  The types of mortgage loans that helped contribute to the housing crash 15 years ago are no longer around and the definition of credit worthiness has changed substantially as well.

I have excerpted some thoughts and graphs from an article I read last week in Keeping Current Matters to illustrate this.  The article was written to address the fact that many recently surveyed consumers do believe that there’s a housing bubble beginning to form.  It’s a bit lengthy but a great answer to the question I’m so often asked these days. 

Here are four key reasons that explain why today is nothing like the last time:

 

Houses Are Not Unaffordable Like They Were During the Housing Boom.

There are three components to the affordability formula:  the price of the home, wages earned by the purchaser, and the mortgage rate available at the time.  Conventional lending standards say a purchaser should not spend more than 28% of their gross income on their mortgage payment.

Fifteen years ago, prices were high, wages were low and mortgage rates were over 6%.  Today, prices are still high.  Wages, however, have increased and the mortgage rate, even after the recent spike, is still well below 6%.  That means the average purchaser today pays less of their monthly income toward their mortgage payment than they did back then.  

According to the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta addressed that exact point:  

“The average wage earner can still afford the typical home across the U.S., but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward.”

Affordability is not as strong as it was last year, but it’s much better than it was during the boom.  Here’s a chart showing that difference:

 

 

Mortgage Standards Were Much More Relaxed During the Boom.

During the housing bubble it was much easier to get a mortgage than it is today.  For example, let’s review the number of mortgages granted to purchasers with credit scores under 620.  According to credit.org, a credit score between 550-619 is considered poor.  In defining scores below 620 they explain:

“Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk.”

Buyers can still qualify for a mortgage with a credit score that low, but they’re considered riskier borrowers.  Here’s a graph showing the mortgage volume issued to purchasers with a less than 620 credit score during the housing boom and the subsequent volume in the 14 years since:

 

Mortgage standards are nothing like they were last time.  Purchasers that acquired a mortgage over the last ten years are much more qualified.  (Thank you, Congress, for the Dodd Frank Act)

Here’s a look at what that means going forward.

 

The Foreclosure Situation Is Different Now.

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst.  The Federal Reserve issues a report showing the number of consumers with a new foreclosure notice.  Here are the numbers during the crash compared to today:

 

There’s no doubt the 2020 and 2021 numbers are impacted by the forbearance program created to help homeowners facing uncertainty during the pandemic.  However, there are fewer than 800,000 homeowners left in the program today, and most will be able to work out a repayment plan with their lenders.

Rick Sharga, executive vice president of RealtyTrac, explains: 

“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging.  It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect.”

Why so few foreclosures today?  Well, quite simply, homeowners are equity rich, not tapped out.

In the run-up to the housing bubble some homeowners were using their homes as a personal ATM machine.  Many withdrew their equity as it built up.  When home values began to fall, some found themselves in a negative equity situation.  Some of those households decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales) which sold at huge discounts, thus lowering the value of other homes in the area.

Today’s homeowners have learned their lessons.  Prices have risen considerably in the last few years, leading to over 40% of homes in the country having more than 50% equity.  But owners have not been tapping into it like last time, as evidenced by the fact that national tappable equity has increased to a record $9.9 trillion.  With the average home equity now at $300,000, what happened last time won’t happen today.

The latest Home Equity Insights report from Corelogic explains:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

There will be nowhere near the same number of foreclosures as we saw during the crash. 

What does this mean for the housing market?

 

We Don’t Have a Surplus of Homes on the Market—We Have a Shortage

The supply of inventory needed to sustain a normal real estate market is approximately six months.  Anything more is an overabundance and will cause prices to depreciate.  Anything less is a shortage and will lead to continued price appreciation. 

As you will see in the following graph, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures) and that caused prices to tumble.  Today there is a shortage of inventory, which is causing the acceleration in home values to continue, and most especially here in Colorado Springs.

Inventory is nothing like last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a shortage of homes for sale.

A long answer to an often-asked question, but I think after reading this you might understand better why I say it’s always a good time to buy and sell if it’s the right time for YOU.  

Yes, there are not a lot of homes for sale at present, but there’s always a home somewhere for someone, even in new construction, and I can assist in helping make the whole process less of a burden than it has become in this market.  

Consider that U.S. homes sales jumped 6.7% in January despite the record-low inventory, as buyers rushed to purchase homes as the mortgage rates began to rise. The housing market remains extremely competitive and potential first-time buyers are now reluctant to wait as their leases are coming due.  

Folks don’t want to see the affordability factor go away and potential sellers are starting to consider all their options.

If you even considered a move or have a family member, coworker or friend considering the same, please give me a call sooner than later. My almost 50-year experience in the Colorado Springs housing market coupled with my investment banking background and expertise in negotiation gives me a heads up on most.  I can be reached at 719.593.1000 or by email at Harry@HarrySalzman.com. 

I look forward to talking with you soon.

 

COLORADO SPRINGS HOME PRICES CONTINUED TO SOAR IN 2021 AND CONTINUED TO SURPASS MUCH OF THE COUNTRY

The National Association of Realtors, 2.10.22

In the recently published report, 67% of the 183 Metropolitan Statistical Areas (MSAs) surveyed quarterly by the National Association of Realtors (NAR) reached double-digit median home price appreciation in the fourth quarter of 2021.  This is less than the 78% of the third quarter but still a significant figure. 

The median price nationally rose 14.6% quarter-over-quarter to $361,700.

Colorado Springs surpassed that, with the median price of single-family homes jumping 19.2% to $442,700 during the final quarter of the year.  This price reflects detached, single-family and patio homes but not townhomes or condominiums.  

The median price in the Springs ranked 31^st highest of the cities surveyed.  And once more, the good news is that while our home values are increasing, they are still less than those in the Denver and Boulder areas, which makes our city more attractive to potential companies wanting to relocate.

To see all 183 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.  

You can also click here to see, in alphabetical order, the change in median sales price of existing single-family homes over the past three years or click here to see what income levels are required to purchase homes based on either a 5, 10 or 20 percent down-payment.

And if you have any questions, you know where to reach me.

 

real estate IS VOTED “BEST INVESTMENT” EIGHT YEARS IN A ROW

Keeping Current Matters, 2.21.22

In a just released annual Gallup poll, Americans chose real estate as the best long-term investment.  This is nothing new, since it has topped the list for the past eight years, consistently gaining traction as the best long-term investment.

It’s also not the first time you’ve read this in one of my eNewsletters, as I have been saying this myself for way more than eight years.  And, as I mentioned earlier, I put my money where my mouth is, and residential real estate plays a major part in my own investment portfolio.

 

If you’ve even considered buying a home this year for yourself or for investment purposes, this poll should reassure you.  Even when inflation is rising like it is today, Americans agree that as an investment, real estate truly shines.

 

Why Is real estate a Great Investment During Times of High Inflation?

With inflation at its highest level since the1980’s, it is more important than ever to understand the financial benefits of homeownership.  

Rising inflation means that prices are increasing in all areas, including goods, services, housing costs and more.  

However, when you purchase a home, you lock in your monthly principle and interest payments, effectively shielding yourself from increasing housing payments. Property taxes will rise, and you may incur other expenses, but a fixed-rate mortgage allows the biggest portion of monthly housing expenses to remain the same.

For renters, there is no protection against increases in housing costs, especially with rising rental prices.  

 

History Shows During Inflationary Periods, Home Prices Rise as Well

As a homeowner, your house is an asset that typically increases in value over time, even during inflation.  That’s because, as prices rise, the value of your home does as well.  Therefore, buying a home is a great hedge during periods of inflation.

According to Natalie Campisi, Advisor Staff for Forbes, “Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times”.

 

Bottom Line?

Once more, with feeling…if you’ve even thought about buying a home for personal or investment reasons, there’s no time like NOW.  Let’s get together and see how we can help increase your personal assets while better hedging against inflation.

 

ERA SHIELDS “STAT PACK” PROVIDES A GOOD RESIDENTIAL real estate OVERVIEW

ERAShields, 1.31.22

As always, I am pleased to provide you with the most current local information.  This easy-to-understand report, along with graphs, gives you a good idea of the state of local Residential real estate.  

Below I’ve reprinted the first page of the report and you can click here to read the report in its entirety.  

 

February 8, 2022

 

HARRY’S BI-WEEKLY UPDATE

          A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

AND SO IT GOES…

As we wave goodbye to January 2022, with it we begin our goodbye to the historically low interest rates of recent times.  While today’s rates are certainly much lower than the 12-15% APRs of the 1980’s, they are inching up and each increase has the possibility of increasing the monthly output for mortgage loans.

The good news is that while home appreciation is still high, it is finally starting to normalize a bit, and should be right around the 12-14% increase I have predicted for 2022.  

Let’s talk for a minute how this can affect you.  For those looking to sell, either to trade up or move to a new neighborhood or another state to be closer to family, the equity in your present home is likely higher than you might think.  This is going to give you a greater down payment, so despite the rising mortgage rates and the higher price you will pay for your next home, it’s possible you can keep your monthly payment close to what you currently pay.

I’ve been getting calls from folks who are worried they have missed out on the recent boom, but I have assured them, and can assure you, that the time to buy or sell a home is when YOU are ready.  Is the present time good for buying and selling?  You bet it is.  But, if it’s not right for YOU, then it’s not a good time.  

If you’ve been thinking of a move, the best thing you can do is meet with a seasoned real estate professional like me to discuss all the issues involved so that when you decide it’s right, then you can pounce.  

Today’s market is unlike any I’ve seen in my almost 50 years in the local Residential real estate arena, and it takes a lot of planning, perseverance, and professional help to guide you in the right direction.  Those “Three P’s”, along with my superb negotiation skills, make all the difference to a successful and hopefully less stressful moving experience.

As I mentioned in the last eNewsletter, Colorado Springs has a record low number of existing homes for sale, thus continuing the Seller’s Market that we’ve been experiencing for quite some time now.  There are a number of reasons for this, among them the new wants and needs made evident from the pandemic and work-from-home status of many.  The low interest rates have given renters an impetus to move to homeownership, and Colorado Springs is seeing new businesses relocating here and with them come employees looking for a place to live.  When you add them up, bingo—not a lot of homes left for sale.

New home construction is ramping up as fast as possible but shortages of materials such as lumber, concrete, aluminum, and more are not only holding up building, but adding to the cost of these homes as well.  

I even have investor clients who have gone the new construction route as it has provided them with the opportunity for longer term renters and less home repairs than that of older homes.  

If new construction is something you have considered, I’m your guy for that as well.  I have l long time working relationships with a number of local builders and I can help you with site and home selection as well as assist you in securing the best mortgage for your individual situation.  Did I mention this comes at no additional cost to you?  It’s certainly an offer you won’t want to pass on if new construction is in your future.

As most of you know, I’ve been a relocation specialist for many, many years and while I have a number of clients who move for career purposes, I’ve recently had some moving to be closer to family or to a warmer climate as they retire.  I have a network of realtors that I’ve known for years who I can refer to you if moving out of state is in your future. That helps take off some pressure when you get ready to make that move.

The gist of this column is…. I know how things can get a bit overwhelming in the current residential real estate market and that’s why you have me.  I’ve seen it all and can help you navigate the current buying and selling wars.  That’s my commitment to each and every client.  Your goals are mine and I take that personally.  It’s one of the reasons I’m still here enjoying the challenge, and why I am so fortunate to find myself working with children and grandchildren of past and present clients.  

If Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

JANUARY 2022

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

Here are some highlights from the January 2022 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 14.  For condo/townhomes it was 17.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.6% and for condo/townhomes it was also 101.1%.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing January 2022 to January 2021 for All Homes in PPAR:                       

                        Single Family/Patio Homes:

·       New Listings were 1,180, Up 6.1%

·       Number of Sales were 1,058 Up 9.0%

·       Average Sales Price was $494,954, Up 14.2%

·       Median Sales Price was $445,000, Up 15.6%

·       Total Active Listings are 549, Up 19.3%

·       Months Supply is 0.5, Up 2.2%

 

Condo/Townhomes:

·       New Listings were 205, Up 28.1% 

·       Number of Sales were 158, Up 1.9%

·       Average Sales Price was $342,524, Up 19.9%

·       Median Sales Price was $345,000, Up 23.5%

·       Total Active Listings are 79, Up 23.4%

·       Months Supply is 0.5, Down 12.1%

 

Now a look at more statistics…

 

JANUARY 2022 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 4.9%

 

• Median Sales Price for All Properties was Up 17.6%

 

• Active Listings on All Properties were Down 12.7%

 

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

 

CONGRATS TO ME…

As we went to press, I received notification from ERA real estate that I have again qualified for “Circle of Achievement” recognition, a top honor at our national company.  Just another notch in my almost 50-year-old belt of real estate accolades, but I never take any of them for granted. 

I don’t work for the rewards…I work for YOU, but I will admit that it is nice to be recognized from time to time.  

When you see the banner below you will know what it stands for:

 

 

WHY NOW IS A ONCE-IN-A-LIFETIME OPPORTUNITY FOR SELLERS

KeepingCurrentMatters, 1.27.22

If you’ve considered selling your home this year, you truly have a once-in-a-lifetime opportunity.  Whenever you chose to sell anything, you always hope for strong demand coupled with a limited supply to get your maximum leverage when negotiating the sale.

Home sellers are in the position at this very moment and here’s why:

 

Demand Is Very Strong

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021.  This was the largest number of home sales in 15 years. Lawrence Yun, chief economist for NAR explains:

“Sales for the entire year finished strong, reaching the highest annual level since 2006…With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers were intent on avoiding the inevitable rate increases.”

Demand isn’t expected to weaken this year, either.  As a matter of fact, the Mortgage Finance Forecast, published several weeks ago by the Mortgage Bankers Association (MBA) calls for existing-home sales to reach 6.4 million homes this year.

 

Supply Is Very Limited

In the same report from NAR, it reveals that that months’ supply of inventory just hit the lowest number of the century.  It states:

“Total housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million).  Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.”

In reality, inventory normally decreases every December due to seasonal trends.  However, the following graph emphasizes how this past December was lower than any other December going all the way back to 1999.

 

 

Right Now, Sellers Have Maximum Leverage

As I said before, when considering any type of sale, when there’s a strong demand and a limited supply, the seller has the maximum leverage in the negotiation.  

For homeowners who are thinking about selling, there may never be a better time than right now.  With demand this high and inventory this low, you’ll have leverage in all aspects of the sale of your house.

Today’s buyers are aware they need to be flexible negotiators who make very competitive first offers, so here are a few areas that could tip in your favor when your house goes on the market:

• Competitive sales price
• Flexible closing date
• Potential for a leaseback to all allow you more time to find a home
• Minimal offer contingencies

Bottom Line

If you’re even thinking of selling your home, contact me sooner than later and let’s discuss how you can maximize the potential available in today’s market.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 1.31.22

Here is the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

I’ve reproduced the first page of the graphs and you can click here to see the report in its entirety.

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

 

January 25, 2022

 

HARRY’S BI-WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

As part of my Special Brand of Customer Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

 

LOW INTEREST RATES ARE ON THE RISE AND SO IS HOME APPRECIATION.  THE TIME TO JUMP IN IS NOW…BUT TIME IS NOT ON YOUR SIDE FOR MUCH LONGER.

I rarely begin my eNewsletter on a less than positive note, but I hope this headline got your attention.

I’ve been saying for a while now that while home appreciation is continuing its upward trend, the low mortgage interest rates of yesterday are soon to be history.  And recently, the Federal Reserve has indicated that they intend to raise their rates for banks four times this year to help curb inflation. Mortgage interest rates are sure to follow, and in fact have been rising for the last month.  It’s doubtful we will see the historically low rates again in our lifetime, if ever. 

Today’s rates are still a bargain compared to rates of even five or six years ago, so if you have even considered a buying a home, there’s not any time to waste. Here are some of my thoughts to consider if you are thinking of getting into the market:

 

• As of Sunday, there were 308 home listings for existing homes in Colorado Springs and another 111 in the other areas of El Paso County.   That’s a total of 419 single family detached homes for sale—a less than two-week supply!

 

• Interest rates are slowly rising—the 30-year fixed-rate ones are currently the highest they’ve been in two years--and will continue to rise until inflation is curbed.

 

• Rental rates are higher than ever and will continue to rise with demand.  It’s proven to be cheaper to be a homeowner than a renter if possible and sometimes that means modifying your expectations in order to purchase a home now.  Home appreciation like that we have been experiencing will likely provide the equity you will need when you are ready to upgrade or trade up.

 

• I believe that we will continue to experience home appreciation in Colorado Springs of between 12-14% in 2022 and this presents a great opportunity for investors to consider buying rental properties.  If you’ve looked at the volatility of the stock market in recent days you can understand the prudence of this.  The huge drop this past week, although with a quick recovery of sorts yesterday, illustrates this point.

 

• Costs of new construction materials such as lumber, cement, copper, aluminum, cotton and more continue to rise and with them the price of new homes.  Locking in a home now, if that is the direction you wish to go, is essential.  Some builders are not even quoting exact prices, but the sooner you begin the search the sooner you will at least be on the list for a new home.

 

• Single family/patio homes in Colorado Springs and El Paso County sold for 103.2% of their listing price for all of 2021.  In Teller County that number was 101.3% of list price.  Your present home will likely sell quickly and for more than you might expect.

 

• Colorado Springs is going to continue to be a favored place for companies and individuals when it comes to relocation.  I see no end to this trend and expect it to continue more than ever due to the work-from-home situations that allow folks to work from wherever they choose.  Many are choosing and will continue to choose Colorado Springs.

 

Let’s discuss interest rates.  Yes, they are going up.  However, they are still low and when you consider the appreciation, you will make back the difference faster than any ever.  A home represents one of the biggest investments most families ever make, and today’s home appreciation will likely provide a far better return than day trading or short-term investments.  

A home is a long-term investment which will provide you and your family personal enjoyment.  Or it can be a rental home for investment purposes which will provide not only monthly income but an appreciation considerably better than the stock market.  In fact, a number of my investment buying clients are supplementing their retirement income with the income from their rentals, while that home is gaining appreciation year after year.

Read further in this eNewsletter to see more highlights of what’s happening now and is predicted to happen in Residential real estate as 2022 progresses.

And, if you’re ready or even thinking of being ready, pick up the phone and give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let’s discuss any and all possibilities for making your Residential real estate dreams come true.

 

AMERICANS CHOOSE real estate AS THE BEST INVESTMENT

Keeping Current Matters, 1.21.22

As I mentioned earlier, more and more Americans are choosing real estate as “The Best Investment”.  This infographic illustrates it well:

 

Some highlights:

• According to a Gallup poll, real estate has been rated the best long-term investment for eight years in a row.

 

• real estate tops the list because you’re not just buying a place to call home—you’re investing in your future.  Real estate is typically considered a stable and secure asset that can grow in value over time.

 

• If you’re ready to invest in your family’s future, give me a call sooner than later and let’s get started!

 

WHAT 2022 MEANS FOR HOMEBUYERS

Associated Press, 1.23.22

(Excerpted from an interview with Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):

 

How do you see the housing market’s trajectory shaping up this year?

 

Mortgage rates will definitely be higher, which means that people who were barely able to qualify last year will not be able to do so this year.  Combine that with some increase in supply. Builders have the profit motive.  Lumber prices and other materials costs are rising, but they’re simply tacking on those additional costs to consumers, who are willing to buy.  Price growth (nationally) will be something around 5% in 2022, which will be a very normal rate of increase.

 

Fair to say homeowners who are selling will still have an edge on buyers nationally?

 

We’re in a housing shortage of roughly 3 or 4 million.  And given that homebuilders can probably at the maximum put up maybe 2 million homes, more likely 1.7 or 1.8 million homes (a year), this housing shortage will persist this year and probably linger on somewhat next year.  Hence, the market in 2022 will still favor sellers.

 

How high do you see mortgage rates going this year?

 

My best guess at the moment is about 3.7%.  It could be a little lower or a little higher, but it’s going to certainly be higher than the 3% people enjoyed last year.

 

To what degree will higher rates dampen home sales?

 

Rising home prices have hindered affordability, but now rising interest rates are another thing that will begin to shave off some of the demand potential from first-time buyers.  My official forecast for home sales this year is they will come down about 2% from last year.

 

Has the pandemic led to any enduring changes to the way Americans buy and sell homes?

 

The pandemic will come to an end.  Hopefully, the sooner the better.  But the work-from-home situation, that development is here to stay.  That will be the key factor driving the housing market preference and demand.

 

What’s the biggest worry you have about the housing market now?

 

The concern is really first-time buyers.  If we don’t increase supply sufficiently, we will have a situation where the country becomes more divided.  Homeowners are feeling very wealthy.  Renters are feeling very frustrated, beginning to see accelerating rents.  So, we need to ensure that housing supply continues to increase.

 

ERA SHIELDS “2021 ANNUAL REVIEW OF COLORADO SPRINGS RESIDENTIAL real estate AND 2022 FORECAST

I want to share with you the “2021 Annual Review and 2022 Forecast” compiled by my company.  

Some interesting facts taken from the report:

 

 “Fun Facts from 2021 (El Paso County):

• Most expensive sale—an amazing home near The Broadmoor sold for $8,000,000
• Largest home sold—The $8,000,000 home was also the largest at 16,594 square feet
• Cheapest home sold—A single-wide in Ramah on a foundation sold for $52,000
• Smallest home sold—In old-town Fountain, a 400 square foot home

 

“Quick Hits from 2021 (El Paso County)

• Number of units sold was an all-time high at 14,803 (up 1%)
• Average sales prices for the year were $487,876 (up 18%)
• Median sales price was $431,250 (up 18%)
• Inventory levels for the year averaged just 2 weeks
• New home permits hit 2862 for Colorado Springs (down 3%)
• 391 homes sold for $1,000,000 or more (just 38 in 2015)
• 73 homes sold for under $200,000 (3,736 in 2015)
• Mortgage rates hit an all-time low of 2.65% in January, and peaked in April at 3.18%

You can click here to read the 12-page report, along with charts, in its entirety.  If you have any questions, please give me a holler.  

 

January 7, 2022

 

HARRY’S BI-WEEKLY UPDATE

         A Current Look at the Colorado Springs Residential real estate Market

As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.

 

 

HAPPY NEW YEAR…AND WELCOME TO 2022

As we bid adieu to a another unprecedented but better to handle year, here’s wishing you a very Happy, Healthy 2022.  While we are not yet, and maybe will never, return to what we used to consider “normal”, at the very least most of us are learning to navigate in this “new normal” as best we can.

Two years ago, I wrote about my “2020 Vision” and predicted that local home appreciation would remain high, new construction would become a viable choice for many, and interest rates appeared likely to remain low for the foreseeable future.  

All of this has remained true for the last two years…and for many of the reasons I mentioned.  Those included the historically low inventory of existing homes for sale, the influx of new businesses and their relocated employees, and the high rental rates which would drive more folks to homeownership.  And millennials are now aging into their prime home-buying years as well. 

More than 18,100 homes were sold in the Colorado Springs area in 2021—the largest number ever and almost double the 9,146 sold in 2012.  And home prices in the area have more than doubled over the last decade as well.  The year-end median home price in 2012 was $209,700.  In 2021 the year-end median home price was $450,000.  And we have consistently done considerably better than the U.S. housing market in general.

The housing market has been strong thanks to rock-bottom mortgage rates, a limited supply of homes on the market and pent-up demand from consumers locked in last year due to the pandemic. 

In 2021 Americans borrowed more than ever to buy homes.  Lenders issued $1.6 trillion in purchase loans last year according to estimates by the Mortgage Bankers Association.  That’s up slightly from $1.48 trillion in 2020 and above the previous record of $1.51 trillion in 2005.  

The mortgage boom is another reflection of the low interest rates, as well as the desire for bigger homes due to the pandemic.  Also, many folks were able to build up savings during the pandemic and a lot of that went into housing.

However, as the saying goes, “all good things must come to an end”, and while home prices are predicted to keep rising, interest rates will soon be joining them.

I’ve been telling you for some time now that I couldn’t predict “when” interest rates would rise, but that they weren’t going to stay at the historical lows forever.  Well, Wednesday was a wakeup call when the Federal Reserve announced that interest rates would be rising as soon as April of this year.  And within minutes the Dow Jones Index dropped more than 650 points!  While they didn’t mention “mortgage” interest rates, the National Association of Realtors (NAR) has forecasted that mortgage interest rates will also rise.

What does that mean for you?  For most, your home will likely continue to be your largest and fastest growing investment.  That’s great news for homeowners who have low interest rates and are happy with their present living situation.  

For others who have waited for various reasons but still have the desire to sell and trade up or purchase for the first time or for investment purposes, this news might not be so welcome.

As a result of the pandemic, many are still working from home (WFH) and home schooling. Both have changed what folks are looking for in their living situations and has driven a lot of home renovation and ideas of what is not only needed, but wanted, in a new home.  As you might imagine, larger kitchens, home offices, private spaces and outdoor entertainment areas continue to be popular.

And with WFH becoming so prevalent even after companies have started to return to offices, there has been an exodus from the bigger cities toward places with access to “the great outdoors”.  As most of you can attest, Colorado Springs most certainly has that…and so much more.  We have had a number of new companies relocate here this year and there are more to come.

As I mentioned earlier, folks coming here all need housing, either home purchases or rentals, and this is adding to the home shortage we’ve experienced for the last several years.  Those moving from states with very high home prices are coming in and paying cash and participating in bidding wars to get what they want.  This makes it more difficult for locals looking to move, but it’s still possible to find what you want, need, and can afford. 

It just takes more advanced planning and faster decision making. And of course, a professional, seasoned, and knowledgeable real estate agent like me on your side.  It’s easy to see why companies such as Zillow have gotten out of the “selling” aspect of real estate.  In today’s market it’s not for the timid or inexperienced.  

My almost 50 years in the local residential real estate arena, coupled with my investment banking background, give me an edge that my clients have found to be crucial in helping them and their families realize their personal real estate visions.

Historically low interest rates will be going, going, gone and with today’s inflation it’s doubtful we will see those rates again, if ever.  If you’re in the market, or even considering your options, time is no longer on your side if you delay.

If you’ve even considered selling your present home, now is the time.  You’ve probably got more equity than you might imagine and when coupled with the “current” low interest rates—it might just make sense for you to make a move now--and most likely you can ‘trade up”.  It’s the monthly payments that you need to consider, not the price of the new home.  At today’s interest rates it’s possible that you can get “more” on a different home for not much more than you currently pay.  

If you are curious as to what your present home might be worth today, simply call me for an appointment to view your home and provide you with comparables.

A new year brings with it a lot of new hopes and dreams. If Residential real estate is among your hopes and dreams for 2022, please give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.

And now for statistics…

 

DECEMBER 2021

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

Here are some highlights from the December 2021 PPAR report.  Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood.  However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.

In El Paso County, the average days on the market for single family/patio homes was a low 13.  For condo/townhomes it was 16.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.4% and for condo/townhomes it was also 101.4%.  

Since these are year-end statistics, I am providing you with both the regularly posted year-over-year monthly stats as well as the cumulative year-to-date comparison of 2021 to 2020.  

Please click here to view the detailed 10-page report, including charts.  If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.

 

In comparing December 2021 to December 2020 for All Homes in PPAR:                      

                        Single Family/Patio Homes:

·       New Listings were 995, Up 6.0%

·       Number of Sales were 1,443 Up 4.9%

·       Average Sales Price was $505,852, Up 15.7%

·       Median Sales Price was $450,000, Up 18.4%

·       Total Active Listings are 659, Up 24.3%

·       Months Supply is 0.5, Up 5.0%

 

Condo/Townhomes:

·       New Listings were 140, Down 13.0% 

·       Number of Sales were 219, Down 1.4%

·       Average Sales Price was $351,825, Up 19.2%

·       Median Sales Price was $335,000, Up 15.5%

·       Total Active Listings are 89, Up 30.9%

·       Months Supply is 0.4, Down 22.9%

 

The Cumulative YTD Summary: (comparing Jan-Dec 2021 to Jan-Dec 2020)

                        Single Family/Patio Homes:

• New Listings were 19,654, Up 4.8%
• Sales were 18,159, Up 4.7 %
• Average Sales Price was $491,768, Up 18.4%
• Volume was $8,930,015,112, Up 22.4%

 

Condo/Townhomes:

• New Listings were 2,795, Up 2.8%
• Sales were 2,688, Up 6.8%
• Average Sales Price was $327,364, Up 19.7%
• Volume was $879,954,432, Up 27.9%

 

Now a look at more statistics…

 

DECEMBER 2021 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL

Colorado Association of REALTORS^{® ,} Pikes Peak REALTORS Service Corp, or it’s PPMLS

Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate. 

The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year to Date one-year change:

 

• Sold Listings for All Properties were Up 3.2%

 

• Median Sales Price for All Properties was Up 18.6%

 

• Active Listings on All Properties were Down 6.8%

 

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

 

housing market FORECAST FOR 2022

Keeping current matters, 12.17.21, CNN, 12.27.21 

 

Experts are saying:

 

• No more record low mortgage rates.  Lawrence Yun, chief economist for NAR expects the 30-year fixed mortgage rate to increase to 3.7% by the end of next year, but he noted that this will still be lower than the pre-pandemic rate of around 4%.

 

• Inventory will remain tight.  Even as more properties became available as the spring buying season heated up this year, there were also more people looking to buy, creating fierce competition and pushing prices skyward.  While the inventory picture is expected to improve in 2022, it will remain limited and grow only 0.3% this year, according to a Realtor.com forecast.

 

• Prices will keep rising.  Home prices rose nearly everywhere in 2021 and while existing homes were up 13.9% nationally (ours were considerably higher), new construction prices nationally were about 19% higher than a year ago.  That was another record.

A group of 20 top economic and housing experts brought together by NAR projected that median home prices nationally will increase by 5.7% in 2022.  (I feel that Colorado Springs will be double that number.) The NAR survey participants said they expect the housing market and broader economy to normalize this year as the Fed tries to tame inflation.

 

• First-time buyers will continue to face challenges.  The prevalence of all-cash offers, few available homes and skyrocketing prices pushed many first-time buyers out of the market last year.  By the end of November, the share of first-time buyers had fallen to 26% from 32% a year before, the lowest level since NAR began tracking in 2008.

“We are creating a divided society”, said Yun.  “People don’t feel like they are participating in what they consider to be American life through homeownership.  All their work to build up savings can feel less meaningful in the face of rising prices.”

 

So, once more with feeling... if you’ve even thought about a new home, there’s no time to waste.  Time is money, as we all know, and waiting to make a move is most definitely going to hit you in the wallet.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 12.23.21

As always, I'm providing you with the most recent economic update from the UCCS Economic Forum.  It provides data concerning all aspects of the economy, on both the national and Colorado Springs area levels.

Please click here to read the report in its entirety and if you have any questions, please give me a call.

 

December 22, 2021

 

HARRY’S HOLIDAY HUMOR

(The way houses are selling here it’s almost not funny, but I couldn’t resist!)