Real Estate Information

December 22, 2021

 

HARRY’S HOLIDAY HUMOR

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

 

 

       

December 21, 2021

 

HARRY’S HOLIDAY GREETING

 

 

December 6, 2021

 

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.

 

 

JUST LIKE CHESS…BUYING AND SELLING A HOME TODAY REQUIRES SOME STRATEGIC MOVES

While it’s always been important to have a strategy for your individual situation when you want to buy, sell, or purchase for investment, today’s Residential real estate market requires strategic moves that even a master chess player might find interesting.

This is normally a “quiet” time in the housing market with the holiday season already underway.  However, nothing in the past couple of years has been “normal” and with home prices continuing their upward climb, and mortgage rates likely due to increase soon, folks who might have waited in the past are on the move or getting ready to do so.  

There continues to be a shortage of existing homes for sale even though there are more than a year ago.  New home construction is booming, but prices keep escalating due to lumber increases once again, as well as a shortage of materials.  Demand is so high that builders are “taking names” and the fortunate buyers-to -be have no more than half an hour to make a decision in some cases.  

Needless to say, stress levels are high for both buyers and sellers and that is not likely to change any time soon.  

As you will see later in this eNewsletter, Colorado Springs has gone from # 20 to #14 in the top 100 of the Federal Housing Finance Agency’s third quarter report of “Metro House Price” changes.  

That just tells us what we already know—Colorado Springs and its fabulous work/life balance options is no longer our “little” hometown.  We are growing steadily, and the end is nowhere in sight.  Good for the city’s economy, good for all the new and exciting times to come, but not so good for finding a home at a low price point.  And that hits first time buyers even harder than most.

The good news for current homeowners is that your present home is more than likely worth a lot more than you might imagine.  Therefore, your equity will help considerably with the down payment on a new place.  So even though you will be paying more for the next home, at today’s still low interest rates it’s possible that your monthly output will not increase by much.

The bright side in all of this?

Me, of course.  

With my 48+ years in the local Residential real estate arena, coupled with my Investment Banking background, I’ve mastered the “strategic moves” necessary to wade through the current “battleground” per se. 

I’ve experienced more than most and can help make the buying and selling process a bit less painful, if possible.  I used to say I could make it fairly “stressless”, but unfortunately that’s no longer a given.  I continue, however, to do my best to make purchasing what is often your most valuable investment as pleasant an experience as I am able.  

They say the “early bird gets the worm” and those who are starting now rather than waiting for the traditional “spring buying season” will have a head start in making their Residential real estate dreams come true.

To get the ball rolling early, just give me a call and together we can devise the best plan for your individual family situation. 

I can be reached at 719.593.1000 or by email at Harry@HarrySalzman.com  and I look forward to putting my special brand of customer service to work for YOU.

 

NOVEMBER 2021

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

Here are some highlights from the November 2021 PPAR report.  The 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 11.  For condo/townhomes it was 13.  

Also in El Paso County, the sales price/list price for single family/patio homes was 101.8% and for condo/townhomes it was 102.2%.  

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 November 2021 to November 2020 for All Homes in PPAR:

                        

                       Single Family/Patio Homes:

·       New Listings were 1,201, Up 9.0%

·       Number of Sales were 1,466, Down 1.1%

·       Average Sales Price was $507,507, Up 18.3%

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

·       Total Active Listings are 855, Up 26.7%

·       Months Supply is 0.6, Down 24.7%

 

Condo/Townhomes:

·       New Listings were 198, Up 19.3% 

·       Number of Sales were 229, Down 3.8%

·       Average Sales Price was $336,208, Up 22.1%

·       Median Sales Price was $325,000, Up 23.5%

·       Total Active Listings are 115, Up 49.4%

·       Months Supply is 0.5, Down 13.1%

 

Now a look at more statistics…

 

NOVEMBER 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 Down 9.3%

 

• Median Sales Price for All Properties was Up 17.6%

 

• Active Listings on All Properties were Down 3.4%

 

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

 

COLORADO SPRINGS RANKS EVEN HIGHER IN THE Q3 FHFA HOUSE PRICE INDEX

FHFA, 11.30.21

The recently published FHFA House Price Index for third quarter 2021 lists Colorado Springs as #14 out of the top 100 in house price changes during that quarter.  We moved up from #20 in the Q2 report and I would expect us to keep moving up in the future.   

House prices in all 50 states and the District of Columbia rose between the second and third quarter.  Of the nine census divisions, the Mountain region, home of Colorado Springs, recorded the strongest four-quarter appreciation.  

Here is a copy of the Colorado Springs changes:

If you are interested in seeing the entire list of 100 cities in ranking order, please click here.  And, if you have any questions, you know who to call.

 

LOAN LIMIT INCREASES FOR 2022

The new conforming/jumbo cut-off on mortgage loans is $647,200.  This was a surprise since most lenders expected it to be $625,000, so good news for buyers.

VA loan cutoffs will be at $647,200 as well.

FHA loans in El Paso and Teller counties will be $460,000, while Pueblo will be $420,680.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 11.29.21

As always, I’ve included 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 levels.  

You can click here to read the entire report and if you have any questions, please give me a call.

 

IS THIS A GOOD TIME TO BUY OR SELL A HOUSE?

UBS, 11.2.21, Keeping current matters, 11.18.21

These are questions I’m asked a lot.  My answer is always the same—if you are wanting to move and the numbers can work for you, it’s always a good time to buy and or sell.  In most cases, the decision to purchase a home is one of the most emotional, difficult and financially impactful investments one can make.  

And while I strongly believe each client’s specific needs, wants and budget contribute to the overall answer, it’s still important to consider timing when possible.

The information from several articles I recently read can help answer these questions as well.

 

Is this a good time to buy a house?

Here are five questions that UBS asks clients to consider:

• Is the house being purchased for shelter, a long-term investment, or for a fix and flip?
• What is the anticipated time horizon for living in the house?
• What are the individual’s near-term, medium-term, and long-term liquidity needs?
• Will purchasing the house significantly change one’s lifestyle?
• Should the house suffer a significant decline in value—say 20%--will that change one’s lifestyle?

While there are no right or wrong answers to those questions, answering them tends to remove a substantial emotional component of the purchase decision.  For example, someone who is buying a house for shelter purposes, anticipates owning it for an extended period of time and has the liquidity profile to own the home and maintain their lifestyle, can be less focused on what is the “exact right time to buy”.

On the other hand, someone who is considering a fix and flip, is more liquidity constrained and risks a lifestyle impairment should they not be able to sell the house in a timely manner, might want to reconsider the purchase option.

In addition, it’s also crucial that a house be factored into one’s overall asset and liability profile.  It is very important to include a primary residence in all of your long-term financial planning scenarios.

In short, again, there is no simple answer about the “right” time to buy a house.  Working closely with your financial advisors and a seasoned professional like myself will help you get the answers for your personal situation.

 

Is this a good time to sell a house?

Putting your home on the market now will get you one step ahead of your neighbors who might be waiting for the traditional “spring buying season”.  If you want to stand out from the crowd, this holiday season is the best time to make sure your house is available for buyers.  

The number of existing homes for sale is still historically low and putting your home on the market now will give you the best chance to be in front of buyers competing for these homes.  

As mortgage rates begin to increase next year, more folks will be entering the selling market before the current frenzy ends.  By selling now, your home will get the most exposure and you will be ahead of the game.

Even though it’s the holiday season, don’t think there aren’t a number of potential buyers who are out looking every day.  Today’s buyers are still dealing with a limited number of homes for sale and are competing with each other for their dream home.  When that happens, if your house is one of the few on the market, you may find your home in a bidding war and possibly going for over the asking price.

Creative offers are coming in for most homes these days and chances are you might get one that will waive contingencies and will pay the difference, if any, over the home appraisal.  Making your move to list your home today will get you in ahead of those who are waiting until after the holidays.

 

These are just some of the things to consider when wondering about a good time to buy or sell.  And once again, the best answer I can give you is that if, after all considerations, the time is right for YOU, then most ANY time can be the right time.

November 24, 2021

 

HARRY’S BLACK FRIDAY SPECIAL

 

 

 

November 23, 2021

 

        

November 22, 2021

 

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.

 

 

SOME DAYS THERE SEEMS TO BE MORE QUESTIONS THAN ANSWERS…

You know, after 48+ years in local Residential real estate, along with my Investment Banking background, I’ve become somewhat of an expert in these arenas.  Some days I wish I had a crystal ball because oftentimes there is no definitive answer to a lot of the questions I’m asked.  

It’s easy for me to understand why Zillow ended its iBuying department.  Buying and selling Residential real estate is not for the timid…or for those with limited experience.

Are prices going to continue to climb?  Are interest rates going to go up as well?  Is it a good time to purchase a home for investment purposes?  Am I better off looking at new construction because of the lack of existing homes for sale? Is this the best time to sell my present home and trade up?

Those are just a few of the questions I field daily.  If I knew all the answers to those inquiries, it sure would make life easier for not only me, but for my clients as well.   

However, I do have some answers that have remained true for as long as I’ve been working in Residential real estate.  

All answers need to first be based on LOCAL statistics.  When you see on national news that home prices are going up or down—always remember they are talking about the U.S.A. in general.  As I’ve been saying for quite some time now, Colorado Springs as a city is seeing spectacular growth.  When the housing crisis enfolded in 2007-8, we were not hit nearly as hard as the rest of the country and thus were able to recover at a faster pace.  

During the recent pandemic as folks were leaving big cities or starting to work from home (WFH), Colorado Springs was the choice of many.  

As more and more companies are moving here and relocating employees with them, those folks are needing places to live as well. 

When you add that to our excellent work/life balance…well, I think you get the picture.

While looking at the local picture is important, the primary place to look is at your individual situation.  

When I’m asked, “Is now good time to buy or sell?”, I always answer the same way.  “If it’s right for YOU, then it’s a good time to buy or sell.”  There’s no standard formula for buying and selling a home and that’s why I spend time with each client to determine what is best for their situation.  

It’s important to find out what someone is looking for and determine why they want to buy, sell, or invest in a home as everyone has different wants, needs and budgets. Those type of questions need to be addressed upfront and we can proceed from there.

Yes, it’s not easy out there in Residential real estate territory these days, but when you’ve got me on your team, you’ll win in the end.  It may take longer than usual to find exactly what you want, but if there’s any way possible, I will work to make it happen for you and your family.

And the best move you can make at present is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your Residential real estate questions answered. If I don’t have the answer, I sure do know where to get it, and that’s as important as “knowing it all”.

I look forward to speaking with you.

 

COLORADO SPRINGS HOME PRICES JUMP HIGHER IN THIRD QUARTER 2021…AMONG MOST EXPENSIVE IN THE COUNTRY

The National Association of Realtors, 11.10.21 

Median prices of single-family homes across the nation rose double-digits for Quarter Three 2021 in 99% of the 183 metro areas surveyed quarterly by The National Association of Realtors (NAR), with the median price nationally rising 16.0% to $363.700.

Colorado Springs surpassed that, with the median price of single-family homes jumping 18.6% to $441,200 during the third quarter of the year.  Prices reflect detached, single-family and patio homes but not townhomes or condominiums. 

The median price in the Springs ranked 29^th 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 and others wanting to relocate here.

Qualifying income for local mortgages continues to rise, however, increased home value in your present home can likely give you a larger down payment.   That could possibly keep your monthly output lower than you might expect, even in a more expensive new home. 

To see all 183 metro areas in alphabetical order, please click here.  To see them in ranking order, click here.   To see the qualifying income necessary for mortgages, click here.  

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

 

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

ERAShields, 10.31.21

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.  

HOMES SELLING IN ONE WEEK, FORCING BUYERS TO TAKE RISKS

The Wall Street Journal, 11.12.21

This recent article wasn’t news to me, as I’ve been encountering similar situations for over a year now, but it’s interesting to see that buyers all over the country are also having difficulty in purchasing existing homes for sale in this seller’s market.

According to a survey by the National Association of Realtors, “Homes sales between July 2020 and June 2021 sat on the market for a median period of one week before going under contract.”  That is down from three weeks a year earlier and marks a record low in data going back to 1989.

This rapid turnover helps explain how the number of homes sold rose to multiyear highs during the Covid-19 pandemic, even as the inventory of homes for sale remained so low.

The pandemic sparked the biggest housing boom in more than a decade…for many of the reasons I mentioned before.  

Supply is still constrained, and buyers are having to pounce quickly once they find what they are looking for.  As I’ve told you in previous articles, many buyers have waived their rights to terminate a contract because of a low appraisal or unfavorable inspection.  In fact, several my buyers have bought homes without ever seeing them in person.  

This has been especially true of new construction where there are only so many lots released at a time and buyers must get in line to purchase.  I’ve gone to those sites for my clients and selected lots and home elevations, and we have communicated through Zoom calls so the clients can make a quick decision based on my input.  This is a service I provide at no additional cost to the buyer and can make a difference, especially when time is of the essence.  

One of my recent clients did not get their first choice due to not committing to the lot immediately.  They were able to get their second choice, but the homebuilder required a commitment on the phone with a signed contract emailed immediately thereafter. 

Fortunately, I have good working relationships with most local builders but even that doesn’t always get me to the front of the line.  Lately it’s been via a lottery type of situation and buyers only have x amount of time to commit.  

Whether it’s new construction or purchasing an existing home, the most important thing is knowing your wants, needs and budget before even starting to look.  

After you make those decisions, the next best one is to call me and get the ball rolling.  It’s going to take longer than you might expect and the sooner we start, the sooner you can be living in the home of your dreams.

 

HARRY’S JOKE OF THE DAY:   

 

 

Even though it’s a “corny” joke, there’s a double meaning in here.  

As we approach the Thanksgiving holiday, I always start by giving thanks for my family and you, my clients and friends.  

Have a safe and happy Thanksgiving.

November 4, 2021

 

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.

 

 

I HAD INTENDED TO INCLUDE THIS WITH MY “JOKES OF THE DAY” BUT…

…unfortunately this crazy Residential real estate market is in no way a joke.  Every time I think we have reached our “new normal” it keeps changing.

I was hoping that when we started to have a few more existing homes for sale that most of those bidding wars and winning bids over list price would settle down a bit.  But I was wrong.  Let me give you a recent example.

Last Thursday I listed a home for $540,000.  When the showings began that day, I received a call from a broker who wanted to make an offer, sight unseen, for their buyer.  I let that broker know that the seller was not going to accept any offer immediately.  He said that was fine and that his buyer would put in a purchase price increase clause that would allow his bid to go $3,000 higher than the highest bid--to a high of $605,000.

As the day progressed and showings began, we received a number of offers.  And then the bidding war began.  Since the first offer had indicated they were willing to bid $3,000 over the highest bid, that offer was accepted on that same day one!  Selling price?  $598,000. 

Yes, you read that right.  The home sold for $58,000 more than the asking price in one day—that’s 10% OVER the listing price.  And the best news for my seller was that the buyer was putting down more than 50% cash, thus negating the need for an appraisal which possibly could have come in at under the selling price!

And the moral of this story?  

If you’ve even considered the possibility of selling to trade up or move to a new neighborhood, NOW is the time for more reasons than the above.

Mortgage interest rates which have been staying at historical lows are projected to rise.  I can’t tell you when that might happen, but most economists are saying the rates can’t stay this low.  

Home prices are continuing to rise which means two things if you are looking to move.  First of all, your present home is more than likely worth more than you might imagine, thus providing you extra equity to put into your next one.  

Therefore, even though your next home will also likely cost more, the size of your down payment could possibly help keep your monthly output close or not too much more than what it is currently.

The downside at the moment is still the shortage of existing homes for sale.  So you really do need to know where you intend to move prior to listing your present home.  It’s possible to request to lease your home back from the buyer for a certain period of time, but that is not always an option.

I wish I could tell you that new home construction is the answer and in a number of cases it is, but I’ve lately seen the implementation of “lotteries” in order to deal with only so many available lots and oh, so many potential buyers.  

Homebuilders are working as fast as they can to rectify this, but at the moment it’s a bit hard to navigate through those “wars” as well.  And if new home construction is what you are seeking, I can help you there as well, without any additional cost to you.

The one bright side in all of this?

Me, of course.  

With my 48+ years in the local Residential real estate arena, coupled with my Investment Banking background, I’ve experienced a lot and can help make the buying and selling process a bit less painful, if possible.  I used to say I could make it fairly “stressless”, but unfortunately that’s not the case at present.  I continue, however, to do my best to make purchasing what is often your most valuable investment as pleasant an experience as I am able.  

So, if you’re ready…I’m willing and able to help you make your Residential real estate dreams come true.

The very best move you can make right now is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  

I look forward to speaking with you.

 

OCTOBER 2021

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

Here are some highlights from the October 2021 PPAR report.  The 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 11.  For condo/townhomes it was 8.  

Also in El Paso County, the sales price/list price for single family/patio homes was 102.0% and for condo/townhomes it was 101.9%.  

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

 

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

 

                        Single Family/Patio Homes:

·       New Listings were 1,596, Up 2.4%

·       Number of Sales were 1,641, Down 5.3%

·       Average Sales Price was $510,180, Up 18.0%

·       Median Sales Price was $446,000, Up 16.3%

·       Total Active Listings are 1,048, Up 19.0%

·       Months Supply is 0.6, Down 3.6%

 

Condo/Townhomes:

·       New Listings were 248, Up 7.8% 

·       Number of Sales were 250, Down 3.8%

·       Average Sales Price was $326,622, Up 18.3%

·       Median Sales Price was $326,272, Up 24.5%

·       Total Active Listings are 129, Up 27.7%

·       Months Supply is 0.5, Down 7.2%

 

Now a look at more statistics…

 

OCTOBER 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 Down 7.0%

 

• Median Sales Price for All Properties was Up 16.8%

 

• Active Listings on All Properties were Down 9.1%

 

You can click here to read the 15-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update.  I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse.  As an example, here is a detailed report on the Colorado Springs area in general:

 

NATIONAL housing market PREDICTIONS FOR 2021 & 2022 

Keeping Current Matters, 10.26.21

Despite all the ups and downs this past year, one thing we know for sure is that the real estate market in 2021 not only met expert predictions, it surpassed them and broke records along the way.

That, of course, brings up the future.  Will the 2022 housing market continue to follow that same trajectory, or are we facing a possible downturn?

The following is a deep dive into what leading real estate experts are projecting for the final quarter of 2021 and what to expect in 2022 so you, as a potential buyer and/or seller have the knowledge and confidence you need to be successful.

As always, please remember that these predictions are generalized on the national level, and when I write about trends it is more localized.  For example, when you read about unemployment further down, remember that Colorado Springs was not hit nearly as hard as a lot of the country, and we have rebounded at a faster pace.  Our home prices have risen at a pace higher than much of the USA and due to the desirability of working and living here, we will undoubtedly continue to outpace a good portion of the country in the coming year and more.

 

housing market FORCAST:

 

• Interest rates are rising but projected to stay low.  This is good news because affordability reached one of the highest levels in 30 years due to the low rates.  And as I mentioned earlier, although prices continue to rise, homes are still affordable to purchase, although slightly less so than earlier this year.

 

• Home sales are slowing but still strong.  While the last two years have been some of the craziest I’ve seen during my 48+ years in the business and home sales are slightly slowing, that definitely doesn’t mean the market is slow.  It’s simply returning to a more balanced one than we have been witnessing these last few years.

 

• Home prices are appreciating slower too.  The constant battle between high buyer demand and low inventory this year led to a surge in home values that left a number of folks scared we were headed for another housing bubble.  And while this year’s price escalation has been a bit excessive, it was just a result of Econ 101—high buyer demand coupled with extremely low supply.  As inventory starts to rise, experts anticipate price appreciate will slow.

• Foreclosures will happen—but won’t lead to price declines.  The massive wave of unemployment caused by the pandemic led many homeowners across the country to enter mortgage forbearance.  While unemployment is slowly but surely declining ahead of expectations, it will be awhile for much of the country to reach the pre-COVID levels.  This will cause foreclosures to rise.  Experts don’t anticipate this will lead to anything resembling the foreclosure crisis of 2008 and they don’t expect it to lead to the major home value depreciation that followed.  (remember that I’m reporting “national” news and that Colorado unemployment rate is again quite low).

​

IS THE housing market GOING TO CRASH BEFORE 2021 ENDS?

 

The answer, according to top real estate experts, is a big NO.  While memories of the housing crash of 2008 still linger on the minds of many buyers and sellers, today’s market conditions resemble nothing close to what caused it.

Home price appreciation may be high but again, it’s a result of supply and demand.  The foreclosure situation should be balanced out by the large amount of equity homeowners currently have which means they can choose to sell rather than foreclose.

Plus, while affordability may be decreasing, historically speaking it’s still high compared to most other years.

 

WHAT DOES THIS MEAN FOR BUYERS AND SELLERS FOR THE REST OF 2021?

 

There is still a lot of motivation for both buyers and sellers in today’s market and that’s not expected to change in the next couple of months.  

With both inventory and mortgage rates remaining low, both sides of the real estate transaction stand to benefit from making a move before the end of the year.

real estate is still strong and waiting until next year could mean losing out on a less competitive market and better affordability—the two big factors positively impacting buyers and sellers today.

 

2022 housing market PREDICTIONS

 

Here’s what industry experts are saying about what they anticipate for the 2022 housing market:

 

HOME PRICES

 

It is important to remember again that the 2021 market was anything but normal, and that escalating home values were a direct result of the record-low inventory.  Experts predict that the inventory situation should improve in the coming year, stabilizing price appreciation across the nation.

But will home prices depreciate in 2022?  More than 100 industry experts don’t think so.  Instead, they are projecting a more modest appreciation of 5.82% nationally in the next 12 months compared to the 11.74% rise seen nationally on average in 2021. 

 

MORTGAGE RATES

 

In case I haven’t mentioned it enough, the past year saw the lowest mortgage rates in the history of real estate.  So, if you are waiting for those rates to come back down or go down more, you may be waiting a very long time.

While homes right now may be less affordable than they were a year ago, they’re still extremely affordable.  

If you look at the 30-year mortgage rate chronicled by Freddie Mac, you can see the average rates by decade:

 

• 1970’s:  8.86%
• 1980’s:  12.7%
• 1990’s:  8.12%
• 2000’s:  6.29%
• 2010’s:  4.09%

 

While experts don’t project that mortgage rates will rise a huge amount, any increase would mean an increase in monthly mortgage payments.  A couple of decimal points may not seem like a lot to most, but it could make or break a buyer’s budget.

If you play the waiting game, a rise in mortgage rates coupled with the continued home price appreciation means just one thing—paying more for the same house you could buy now. 

 

HOUSING INVENTORY

 

Inventory has been the biggest player in the anything but ordinary real estate market of the past two years.  

With the bidding wars and such going on you might be wondering if housing inventory will increase in 2022.  The good news is that there are many factors that lead industry experts to anticipate a rise in homes for sale.

Here’s why:

 

• Homeowners may be more confident putting their homes on the market as COVID numbers continue to drop and more people become vaccinated.

 

• Many of the obstacles halting or slowing new construction start to fade and those homes come on the market, adding new inventory and meeting the needs of population growth.

 

• As forbearance comes to a close, experts predict a wave of new homes coming on the market.  However, they don’t anticipate the majority of those to be foreclosures.  Instead, because of built-up equity, homeowners in this position will have the opportunity to sell instead.

 

BOTTOM LINE

If I’ve taught you anything in these eNewsletters it should be that while the future can be projected, it can’t be predicted.

While industry experts don’t expect the 2022 housing market to be as crazy as 2020 or 2021, it’s important to keep reading my eNewsletters to get current information on our local residential real estate status.

Better yet, give me a call and we can discuss your individual situation and how to best take advantage of making your wants, needs and budgetary requirements get you into the home of your dreams.

 

UCCS ECONOMIC FORUM UPDATE

College of Business, UCCS, updated 10.28.21

As always, I’ve included 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 levels.  

I’ve reproduced just one of the charts below.  You can click here to read the entire report and if you have any questions, please give me a call.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 26, 2021

 

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.

 

 

 

IF A PICTURE IS WORTH 1,000 WORDS…. THE ONE ABOVE COULD MEAN HUNDREDS OF THOUSANDS (OF DOLLARS) TO YOU…

Home sales are picking up again and for many good reasons.  Interest rates have remained historically low, but the recent talk of possible increases, along with more available homes for sale, has been good incentive for some of my clients to sit down and discuss whether now is the time for action.

As I’ve said forever, I can’t begin to predict which way rates will go.  But I can tell you that these very low ones won’t be around forever.  The Fed has been discussing inflation and what can be done to curb it so today’s low interest rates could be a thing of the past sooner than later.  And with more and more folks choosing to work from home (WFH), their wants and needs are far different than prior to the pandemic.

Colorado Springs is also seeing quite a resurgence as a place that young professionals want to work and live due to our fabulous work/life balance and new companies are relocating here as well.  Downtown has “come back” and then some, with the addition of museums such as the U.S. Olympic and Paralympic Museum and various sports venues, as well as new restaurants, shops, apartments, and other living spaces.

We’re starting to feel like a “big” city, while fortunately retaining many of the things that may us proud and happy to call Colorado Springs our hometown.  I won’t talk about traffic since my friends who live elsewhere think we don’t have any, but…if you’ve lived here for any length of time you know what I mean.  

Amazon recently opened their largest distribution center in the four surrounding states near our airport and many of those employees (the non-robotic ones!) are looking for homes.  So are the ones choosing to relocate here with their companies.  Having more homes available for sale has been a blessing for those folks and as new homebuilding continues to ramp up, this has been the choice for many of them as well.

In fact, I’ve helped some relocatees purchase new home construction, often without them seeing a model home in person.  Lot and home elevation selections have been completed via video and I’ve been their “eyes” in making certain that the builders follow through with all the particulars.  My long-standing relationship with many local builders has made that process easier for my clients and this is a service I provide at no additional cost to the buyer.  

I’m starting to find myself as busy as ever, and if there were more existing homes for sale, I’d be even busier.  When homes get listed, my clients are ready to pounce, but unfortunately so are a number of other potential buyers.

This leads me to tell you that even though there are more homes for sale at present, we are still seeing multiple offers, many over listing price, and quick turnarounds.  Bidding wars apparently are here to stay for a while, so it’s as important as ever to know what you want, need, and can afford PRIOR to the search.  Once you find the home you want there is little time to “think it over”.  

If you’ve even considered a new home or neighborhood, let’s talk and see how together we can make your present home help you work toward that goal.  There’s no better time than now to make all your Residential real estate dreams come true.

And…the best move you can make at present is to call me at 719.593.1000 or email me at Harry@HarrySalzman.com to get the ball rolling.  

I look forward to speaking with you.

 

HOME SALES AND PRICES JUMPED IN SEPTEMBER

The Wall Street Journal, 10.22.21

As depicted in the illustration above, U.S. home sales surged last month with their strongest showing since January, ending a months-long stretch when housing market activity slowed from its frenzied pace and high prices put the brakes on a number of buyers.

The dip in mortgage rates and activity at the high end of the market helped existing-home sales rise 7% in September nationally from the prior month to a seasonally adjusted annual rate of 6.29 million, according to the National Association of Realtors (NAR).  

While demand from buyers has exceeded supply for more than a year, economists said that last month was still a standout.

“This autumn season looks to be one of the best autumn home-sale seasons in 15 years,” said Lawrence Yun, NAR’s chief economist. 

And though prices remain near record highs, the pace of price growth is slowing, which will allow for a more “normal” appreciation.  

Again, what all this means is that NOW is the time to get off the fence if you’ve even considered a move.  The sooner you begin, the sooner you will be in a new home.  Don’t delay, call me today.  If there’s a way to get you where you want to be, I’m the guy who can get you there.

 

SALES TAX COLLECTIONS IN COLORADO SPRINGS JUMP

The Gazette, 10.23.21

Colorado Springs is continuing a robust recovery 1 ½ years after the onset of the COVID-19 pandemic.  The city saw another double-digit percentage gain in sales tax collections last month, a good sign for the Pike’s Peak region’s economy.

It’s evident that folks are busy spending on things such as cars, appliances, TVs, apparel and building materials, among other items—and the 2% sales tax levied on such generated nearly $19 million in revenue in September according to a report released last Friday by the Colorado Springs Finance Department.

That’s 22% higher than the same month a year ago and continues the double digit increases that began in March.

According to Tatiana Bailey, director of the University of Colorado at Colorado Springs Economic Forum, “It’s an overall indicator of continued economic growth.  We’ve regained all of our jobs in the region.  It’s all good news and great news for the mayor’s office and having the tax revenues we need.”

Since Colorado Springs’ sale tax is a critical revenue source and closely watched by city officials and local economists because it funds more than half of the Springs’ annual general fund budget, this is exceptionally good news all around.

Bravo to all of us for helping to boost the local economy.

 

ERA SHIELDS QUARTERLY “STAT PACK”

I want to share with you the quarterly “Residential Review” for El Paso County that is compiled by my company. The data provided is through the Third Quarter, 2021.   You can click here to read the report, along with charts, in its entirety.

The graph below compares the number of homes on the market (active) to the number of homes sold.  It determines how many months it would take to sell through the current listing inventory.  Most economists consider 6.0 months to be a “balanced” market:

 

 

 

And some quick facts you might find interesting:

 

• New Listings Input for the Quarter were up 472 units from 2020 (9%)

 

• Sales for the Quarter were down 7% (4490 vs 4854)

 

• Median Price for the Quarter is up to $445,667 (16%)

 

• Average Price for the Quarter went up to $500,433 (16%)

 

• Just 4% of sales in the Quarter were under $300k (in 2020 it was 15%, 2019 it was 37%)

 

• 50 homes sold for $1 million+ during the Quarter (21 sold during the same period last year)

 

• Single-Family building permits this year are up 356 units (9%)

 

• 30-year Fixed-Rate Mortgages are right at 3%

 

SHOULD YOU RENOVATE OR MOVE…THE BIG QUESTION

Keeping Current Matters, 10.13.21

 

As I’ve been mentioning a lot, the last 18 months have changed what many buyers are looking for in a home.  The American Institute of Architects recently released their AIA Home Design Trends 66667uSurvey, and it reveals the following:

 

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% or respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

 

If you are like any of these respondents and want to add any of the above, you have two options:  renovate your current home or buy a home that already has the spaces you desire.  The decision you make could be determined by factors such as:

 

1. A possible desire to relocate

 

2. The difference in the cost of a renovation versus a purchase

 

3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

 

In either case you will need access to the funds for either a renovation or the down payment your next home would require.  The great news is that the money you need probably already exists in the equity of your current home.

 

Home equity is skyrocketing due to the record-setting increases in home prices over the past two years.  The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:

 

 

The money you need to purchase the perfect home or renovate your current house may be right at your fingertips.  However, waiting to make your decision may increase the cost of tapping that equity.

 

If you decide to renovate, you’ll need to refinance or take out an equity loan to access the equity.  If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between your down payment and the cost of your new home.

 

Mortgage rates are forecast to increase over the next year, so waiting to leverage your equity will probably mean you’ll pay more to do so.  According to the latest data from the Federal Housing Finance Agency (FIFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below.  If you are one of those homeowners, you can keep your mortgage under 4% by doing it now.  If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

 

First Step:  Determine the Amount of Equity in Your Home

 

If you’re ready to either redesign your current home or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home.  To do that, you’ll need two things:

 

1. The current mortgage balance on your home

 

2. The current value of your home

 

You can more than likely find the mortgage balance on your monthly mortgage statement.  To discover the current market value of your house you can pay several hundred dollars for an appraisal, or you can contact me, and I will be able to give you a professional equity assessment report at no cost to you.

 

Bottom Line?  If you are one of the many who have refocused your thoughts on what you want from your home over the past 18 months, now may be the very best time to either renovate or make a move to the perfect home.

 

Any Questions?  Contact me and I will more than happy to give you answers.  And if I don’t have the answers, you can be sure I know how and where to get them for you.

 

HARRY’S HALLOWEEN JOKES OF THE DAY:  

 

 

 

 

 

 

 

October 7, 2021

 

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.

 

 

NOW THAT I’VE GOT YOUR ATTENTION…REPEAT AFTER ME…IT’S STILL A SELLERS’ MARKET

Things haven’t changed much in the last month which is continuing to make it difficult for those wanting to sell and trade up, relocate to another area, or purchase a home for the first time.

The infographic above is based on national figures and our local numbers are even better than those depicted, as you will see in the August statistics below.

It’s difficult for anyone to predict what will happen to interest rates with all the political discourse currently taking place and a number of buyers are rushing to take advantage of the current rates before they are gone.  

Supplies are still going for a premium if they are even available and that’s another problem both homebuilders and home renovators are facing.  

If this all sounds a bit pessimistic for a perennial optimist like me, well, not to worry.  I just want to tell it to you straight.  However, as you already know by now, I can always find a way around most obstacles. And when you’ve got me in your corner, the battle is half won before you even begin.

That’s not to say it’s easy when it comes to buying a home today, but after 48 plus years in local Residential real estate I’ve become known for my “can do” attitude and one way or another will help my clients find a way to realize their real estate dreams.

Selling is another story entirely.  It’s likely that your present home will sell fast, making it difficult if you have not yet decided where you want to move.  That’s one reason why it’s smart to know your wants, needs and budget BEFORE you even begin the process of selling to trade up or move to another neighborhood.  

My advice to you?  If you’ve even considered a move, NOW is the time to get started. Prices aren’t going down anytime soon, and as I mentioned, mortgage rates essentially have nowhere to go but up. 

The very best move you can make today is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get any and all of your questions answered.  Together we can work to find the best options for your individual family situation.

I look forward to speaking with you soon.

 

SEPTEMBER 2021

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

Here are some highlights from the September 2021 PPAR report.  The 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 9.  

Also in El Paso County, the sales price/list price for single family/patio homes was 102.3% and for condo/townhomes it was 102.7%.  

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

 

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

                        

                     Single Family/Patio Homes:

·       New Listings were 1,829, Up 9.8%

·       Number of Sales were 1,758, Down 2.5%

·       Average Sales Price was $498,003, Up 15.5%

·       Median Sales Price was $440,000, Up 14.3%

·       Total Active Listings are 1,184, Up 18.9%

·       Months Supply is 0.7, Up 22.0%

 

Condo/Townhomes:

·       New Listings were 288, Up 12.9% 

·       Number of Sales were 302, Up 15.7%

·       Average Sales Price was $335,905, Up 13.8%

·       Median Sales Price was $318,500, Up 15.0%

·       Total Active Listings are 142, Up 6.0%

·       Months Supply is 0.5, Down 8.4%

 

Now a look at more statistics…

 

SEPTEMBER 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 Down 7.6%

 

• Median Sales Price for All Properties was Up 14.8%

 

• Active Listings on All Properties were Down 14.9%

 

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

 

And now some advice for BUYERS:

 

 

EARLY OCTOBER IS THE “SWEET SPOT” FOR BUYERS

KeepingCurrentMatters, 9.28.21

 

If you’re looking to buy a new home, here’s some better news for you.  Even though the housing market news has recently been focused on “sellers” and their perks while discussing the bidding wars and other obstacles for buyers, there are some clear signs that buyers may have more opportunities this fall and winter.

According to realtor.com, the sweet spot for buyers is right now.  A recent study looking at housing market trend data from the past several years and applying it to the current market found:

 

“Nationally, the best time to buy in 2021 is the week of October 3-9.  This week historically has shown the best balance of market conditions that favor buyers.”

 

So, if you’re looking to buy a home, the best time to start is TODAY.  And here are a few reasons why:

 

1. Increased Housing Supply.  The number of homes for sale should be increasing.  According to realtor.comyou can expect to see more new listings come to market this week.  The findings estimate we should see roughly 17.6% more homes available for sale nationally than we saw at the start of the year. This means more options from which to choose, which should be a welcome relief in this market with tight housing supply.

 

2. Fewer Bidding Wars.  With more homes available you should also see a slight decline in the number of bidding wars.  This means when you write an offer, you may have less competition and a better chance of being the top bid.  But remember, it’s still important to come in with a strong offer if you want that offer to be accepted.

 

3. Adjusted Home Prices.  Heading toward the end of the year, the findings from realtor.com note that this week may also be one of the peak weeks for price reductions in 2021.  Historically the data shows that an average of 7.0% of homes nationally have a price reduction this week.  Why?  When housing supply increases, sellers need to look for other ways to make their home stick out. So, while prices continue to increase overall, you may see some homes with price adjustments from eager sellers.  For sellers who want to close before year end, they may be more motivated this month.

 

Bottom Line:  If you’re in the market for a home, NOW is the time.  October may give you the long-awaited opportunity to find what you’ve been wanting.  Call me sooner than later and let’s see how we can make your dreams a reality.

 

IF YOU’RE A BUYER, IS OFFERING ASKING PRICE ENOUGH?

KeepingCurrentMatters, 9.27.21

 

As I’ve been saying for some time now, the “new normal” in writing an offer for a home shouldn’t include the expectation that you will be able to negotiate a lower than listing sales price.  In other times, buyers often tried to determine how much less than the asking price they could offer and still get the home.  From there, the buyer and seller would typically negotiate and agree on a price somewhere in the middle.

 

Things are different today. 

 

Today’s housing market is anything but normal.  According to the National Association of Realtors (NAR), on a national level, homes are receiving an average of 3.8 offers and selling in just 17 days.  Locally our average selling time is just 10 days!  

Selma Hepp, Deputy Chief Economist at CoreLogic explains how low supply and high demand can impact buyers:

“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months.  Now, almost 6 in 10 homes listed are selling for over the asking price.”  

In El Paso County the average sales to list price in September was 102.3% for single family and patio homes and 102.7% for condos and townhomes.  Once again, when it comes to market conditions, you must look at the LOCAL trends.  Colorado Springs has consistently performed better than the national average for some time now.

 

You may need to rethink how you look at a home’s asking price.

What this means is that if you’ve found your dream home, you need to be realistic about this “new normal” and how that impacts the offer you’ll make.  Offering below or even at a home’s asking price may not cut it.  In today’s market, somewhat like an auction, the highest bidder often wins the home.

Currently, the asking price is often the starting point in the negotiation rather than the ceiling.  If you really love a home, it may ultimately sell for more than the sellers are asking—in some cases, a lot more.  That’s important to remember when we sit down to craft your offer.

 

Understand that an appraisal gap could happen.

Appraisal gaps—the gap between the price of your contract and the appraisal of the home—are more frequent in today’s market due to home appreciation and the auction-like atmosphere in the selling process.

According to Corelogic:  “Beginning in January 2020, nationally, 7% of purchase transactions had a contract price above the appraisal, but by May 2021, the frequency had increased to 19% of purchase transactions.”

When this occurs, your lender won’t loan you more than the home’s appraised value, and the seller may ask you to make up the difference out of pocket.  Buyers today need to be prepared for this possibility.  It’s important to know your budget, know what you can afford, and we can write the offer in such a way to cover the possibility of an appraisal gap.

All of these things will come into play when you find the home you wish to buy.  This is just another reason why it’s important to have a seasoned real estate professional like me on your side as you tread the “new normal” of making an offer that not only excites the seller, but one that makes it to the closing table.

The 25^th Annual UCCS Economic Forum will be held virtually again this year on Thursday, October 14^th from 1-4 p.m.  It will be presented at NO COST to registrants; however, registration is required.

As you might be aware, I’ve been a sponsor of this event since its inception and the annual event is one that no Colorado Springs businessperson should ever miss.

For more information and to register please go to:

 http://uccseconomicforum.com/registration/

 

September 22, 2021

 

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.

 

 

YOU’RE PROBABLY WONDERING WHY I PUT THIS INFOGRAPHIC UP FRONT…AND I’M ABOUT TO TELL YOU…

As I’ve been saying for the last couple of years, there is no “normal” anymore when it comes to buying and selling Residential real estate.  And the “new normal” keeps changing all the time.  

We all keep hearing about how homes are appreciating faster than ever, mostly due to the lack of available homes for sale and the historically low interest rates.  And with the internet, it’s easy today to seek out prices of homes that sold in your own neighborhood or what Zillow or other sites say your home is worth.  This can be very misleading, and I’ll relate a recent experience I had so that illustrates this.

I had clients who had already purchased a new home and wished to sell their current one.  They had looked at what homes in their neighborhood had recently sold for and had decided that considering the recent buying frenzy, their home was worth a certain amount, and they would take nothing less for it.

When I did the research and then went to their home, I knew that the figure they had in mind was not realistic and that it wouldn’t get a lot of potential buyers at that price.  I gave them my estimate and explained my reasoning and they did not agree with it due to their previous “research”.  Against my advice, it was listed it for what they requested.  After several initial showings and no offers, the general feedback from showing brokers was that the house was overpriced.  

I tried to explain this to my clients, but they still did not agree.  Not to get into any greater detail and to make a long story short… after three weeks and two price reductions, the house did sell at the price that I had originally told them I thought was reasonable.  

The point I’m making here is that seasoned, knowledgeable real estate professionals are the best investment a seller can make when it’s time to list their home.  And listening to what they have to say regarding the price point and other matters can make all the difference in getting an offer that not only is acceptable but will likely make it to the closing table.  

When I see commercials on television where real estate agents are quoting very low commission fees, and more, I think to myself, “well, you get what you pay for!”.  There is so much that goes into getting a home ready for sale and not taking it step by step can make a lot of difference in the selling experience for a client.  

I’ve sold thousands of homes in the last 48+ years and have found that my recommendations for fixups, selling price and more have made a big difference in how the entire process goes.  

The market is a bit less frenetic now with a few more homes coming available, but multiple offers and ones over listing price are continuing to happen.  Knowing which offer will likely make it to closing is an important part of my job and I’m not simply in this for a quick sale.  I am in this business to make long lasting relationships and am thrilled when I get a call from children and even grandchildren of past clients who want me to represent them in buying and/or selling a home.

If you’ve even considered a move, let’s talk and see how together we can make your wants, needs and budget work toward that goal.  There’s no better time than now to make all of your Residential real estate dreams come true.

And…the best move you can make at present is to call me at 593.1000 or email me at Harry@HarrySalzman.com to get the ball rolling.  

I look forward to speaking with you.

 

THE BIGGEST MISTAKE HOME BUYERS AND SELLERS CAN MAKE

The Wall Street Journal, 9.20.21

I woke up yesterday morning to this headline when I opened The Wall Street Journal and I had to smile.  The whole front page of the Journal’s Wealth Management section had that headline.  The subtitle said:

“For many people, it’s their largest investment—and their most emotional one.  That can be a bad combination.”

And I thought to myself, “I could have written this”!  So, I’d like to share with you some excerpts from the article.

 

BUYING MISTAKES:

 

1. Picking a so-so location.  Too often people may fall in love with a house and forgive it for the company it keeps.  There could be a lot of distracting outside noise, or other such problems.  This violates the first rule of real estate which is:  location, location, location.  

 

This is probably truer today than in the past as desperate buyers find themselves pushed out of coveted neighborhoods due to the shortage of available homes.

 

If at all possible, try to find a home in an area that fits what you want and need because some day when you go to sell that home, location will likely play an important role there, especially if the market isn’t as hot as it is today. You can always add a bathroom or other things, but you can never change the home’s location.

 

2. Buying a house sight unseen.  Oftentimes an online listing may include professional photography, 3-D floor plans and virtual walk-throughs, but nothing can replace an in-person visit.  

 

Today’s market can make buyers feel they need to make a decision without seeing the home in person or without other family members who will be living there but be prepared for things to be quite different than they might look in a listing.

 

3. Waiving the inspection.  In today’s market, a number of buyers have offered to waive preliminary inspections to make their offers more enticing to the sellers.  That can often be a big mistake and a costly one.  Even if one is planning to raze a home to build a new one, it’s important to have an inspection.  Some old homes can have asbestos in the roof or air-conditioning or an inground septic tank, which would be important to determine prior to tearing down the home.

 

4. Getting a high maintenance vacation home.  When buying a weekend retreat or vacation home, most people focus on the properties they have “dreamed about”, rather than the cost of ownership.  It’s important to remember that you don’t want your second home to become a “second job”.

 

5. Tying your own hands.  Do you want to be told what color to paint your home or where to park your car?  Or how often to mow your lawn?  If the answer to those questions is no, you might not want to buy in any community controlled by a homeowner’s association.  It’s important to read the rules and regulations of the HOA prior to buying a home in that community.

 

SELLING MISTAKES:

 

1. Showing the house at its worst.  We are all so connected to our homes that sometimes we don’t see its flaws.  But the buyers will.  They want to picture themselves living in the home and if it’s too cluttered or full of your personal mementos that makes it more difficult for the potential buyer to see themselves living there.  Get rid of clutter and do everything to help show the home in its best light.

 

2. Not planning for capital-gains taxes.  If your home has appreciated in value, which is quite likely in today’s market, the profit could be subject to capital-gains taxes.  Certain home improvements can potentially help reduce the tax bill—but only if the seller has documentation showing that the improvements increased the home’s market value, prolonged its useful life, or adapted it to new uses.  

 

3. Mishandling the sale of an estate.  The impact of a mistake is not felt just when the owner is alive.  If a homeowner doesn’t provide a detailed estate plan—and have clear communications with heirs—disputes over the estate can delay or even scrub a home sale after the owner dies. ​Similarly, homeowners who bequeath a home to heirs in hopes of keeping it in the family often fail to provide funds to cover the annual costs of maintaining it.  As a result, heirs may be forced to sell, even if a down market prevents the house from getting top dollar.

 

4. Fudging facts and flaws.  “Maybe they won’t notice” is sometimes a mantra of sellers who are hoping that buyers won’t see the problem with the roof, or the signs of former water damage—even though sellers by law are required to disclose any known deficiencies in a home.

 

It’s important to establish trust between the buyers and sellers.  That’s how you can get the best price for your home.  When you withhold information, the buyer can get more aggressive if they feel you are hiding something from them and this could affect the potential buyer’s price offer.

So there you have it.  Just some random thoughts from The Wall Street Journal and me!  Any questions, just give me a holler.  

 

IS THE housing market SLOWING DOWN?

Keeping Current Matters, 9.21.21

This is the question I’ve been asked for the last year and there’s no denying these are interesting times in Residential real estate.  

And there is no easy answer.

The Millennial generation, long known for putting home buying on hold, has become ready for ownership.  As more and more young people across the country started looking, they added to the already record breaking buyer traffic.

The only problem was the lack of available homes to meet the demand.  That inequity in the market is the root cause of the price appreciation that has many worried that we’re in another “housing bubble”.  But unlike 2008, the rise in home values was warranted.  It wasn’t price inflation.  It was price appreciation caused by simple economics:  a lack of supply and high demand.

Today, economists are noticing a softening in the market, but nothing that should alarm potential buyers or sellers.

That doesn’t mean it’s crashing.  It means it’s finally leveling out to a more normal market with more normal appreciation.  

Like any other year, buyer traffic peaked in April and May (the spring market) and is slowing as summer ends.  However, it’s important to note that those levels remain similar to where we were one year ago, which is great news for both buyers and sellers.  As competition slowly declines and inventory levels rise, experts project a steady softening of the steep high appreciation we’ve seen in the past year.

 

HAVE YOU EVER SEEN A housing market LIKE THIS?  (Infographic)

Keeping Current Matters, 9.17.21

I thought you’d like to see this infographic but keep in mind that as good as some of this looks, Colorado Springs’ numbers look even better!

 

 

Bottom Line?  Whether you’re buying, selling, or both, today’s housing market has lots of good news for you.  And if you’re currently renting, there’s no better time to start looking to own than the present.   A note to investors—with rents rising all the time, buying an investment property might be something worth considering.  

 

BUILDING MATERIAL PRICES SEE LARGE INCREASES YEAR TO DATE

National Association of Homebuilders, 9.9.21

I’ve been writing about how new home construction has been a challenge this year, with rising costs of materials, backorders for much of the same and high demand from sellers.  In fact, some homebuilders are quoting price “estimates” with no guarantee of delivery dates at times!  I thought the information here might explain some of those reasons.

While the recent drop in softwood lumber prices since early summer has helped bring down costs (after having drastically driven them up earlier in the year), the decline has been offset by large increases of several other building materials.

The prices of these 10 have increased the most thus far in 2021, and all are up at least 30%:

• Steel mill products
• Building paper and building board mill products
• Asphalt
• Plastic water pipe
• Fertilizer materials

 

And between April and July, these materials experienced price increases exceeding 20%:

• Laminated veneer lumber
• Building paper & building board mill products
• Fertilizer materials
• Plastic water pipe
• Fabricated structural metal
• Other engineered structural wood members
• Copper pipe and tube
• Steel mill products
• Aluminum base scrap

 

As you might imagine, this has made it quite difficult for home builders, but it is also affecting those of us who are renovating our present homes.  We’ve been doing just that at our home, and it is taking far longer for materials and even for workers to become available than I can ever remember.  

My advice?  Just be patient.  It’s all we can do at present.  And we can hope that materials, delivery times and worker availability will start to normalize sometime soon!