HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

ANNUAL GOODWILL DINNER WAS A SUCCESS

Last week, we attended the annual Dinner for our local Goodwill. Over 800 people were in attendance for the event which included local political leaders, volunteers, donors, workers and a cross-section of people from our entire community. It was a wonderful evening. !!! Goodwill does a great job for our local community and we were happy to be a part of this annual celebration.

One topic that a couple of attendees wanted to kid me about was the ‘upbeat’ tone of our weekly eNewsletters. They asked me whether I really believed that the local Real Estate market was as good as it is described in our weekly newsletters.

My heartfelt reply was, and is, that our local market is better than the markets in almost any other metro area in the country. We didn’t feel the home-price drop as dramatically as most other areas and we bottomed out sooner than most. And now we see our local market starting to come back faster than the markets in most of the other metro centers across the country.

I can only emphasize that my enthusiasm and my ‘Buy Now’ tone is not because I’m just looking for a commission, but rather, because I am convinced the people who buy now will benefit greatly in coming years. Prices are low (but rising). Rates are low (but rising). Mortgage money is readily available to people with good credit and our community is thriving.

I urge anyone who would like to cash in on this ‘opportunity market’ to give me a call to discuss what’s happening with Real Estate in our community. Your home-buying decision today could easily be more valuable to you in the future than any IRA.

And that’s not just ‘optimism’ talking ….That’s an opinion based an analysis of the opportunity that our local Real Estate market presents to us.

Want to learn more about how to improve your family’s future financial stability through Real Estate? Call us at 598-3200, or, 800 677-6683 (MOVE).

IT WAS AN INTERESTING WEEKEND …. OUR ‘OPEN HOUSE’ VISITORS WERE EAGER TO BUY !!

Last weekend, we offered two Open Houses to the public. Over the course of the two days, we had the opportunity to speak with quite a few visitors and discovered that many of them are facing the same circumstances, namely, …..They’re waiting for their present home to sell, before they upgrade to their next home. Based upon their comments, we thought it might be productive to list some facts and conclusions about our present market:

• There are a lot of prospective homebuyers out there who want to buy upgraded homes as soon as their present homes close. That’s good news for the housing industry
• Most people who have had their homes on the market for a while have finally reconciled themselves to the fact that, when they do sell, the price will not be as high as they had hoped for a few years ago. However, they also recognize that, when they do buy, current prices are a real bargain. Therefore, they understand that the money they might ‘lose’ when they sell will be more than recovered when they buy
• Home prices are starting to rise, so more prospective buyers are starting to look around at what’s available and are making plans to buy sometime this year
• Foreclosures are slowing down (-11.3% in the first quarter and -24.1% year-over-year, according to the Colo. Div. of Housing). This is good news for Sellers because a lower inventory of available homes creates upward pressure on prices.
• ‘Low-ball’ offers are quickly becoming a thing of the past. The two reasons for this are that homes are now being priced more realistically and competition between buyers is growing. This is especially true here in Colorado Springs ….(Out-of-town Realtors and homeowners alike tell us they envy our local market’
• People with good credit are not having a problem getting a new mortgage …at great rates

The Bottom Line for me was that 2012 should be a great year for Real Estate.

THE BIDDING WARS FOR HOMES ARE BACK
The Wall Street Journal, April 30, 2012

A new development is catching home buyers off guard as the spring sales season gets underway: Bidding wars are back.

From California to Florida, many buyers are increasingly competing for the same house. These bidding wars are primarily the result of supply shortages, as inventories of available homes are shrinking.

We have experienced this new development in our local market. These bidding wars are confirmation that home prices are now on the rise. It’s about time. !!!

If you have been considering putting your home on the market, this ‘bidding war’ trend will affect your listing price. If you would like to discuss prices in your local neighborhood, or in any of our local neighborhoods, please call us at 598-3200, or, 800 677-6683 (MOVE).

NOT READY TO MOVE, BUT WANT TO CASH IN ON THE RISING REAL ESTATE MARKET ?

In our current market, it is difficult for people who have poor credit to obtain home loans. Therefore, many of the families who have lost their homes to foreclosure or short-sale have been forced to become renters. These families are caught in a real squeeze …rents are going up, but lenders are getting tougher to deal with, so purchasing another home is not an option. These facts have expanded our pool of prospective renters and have made rental property more profitable for investors than ever.

If you would like to discuss acquiring rental property, please give us a call. The market is excellent, prices are low, mortgage rates are still very attractive, the inventory of homes is still relatively high and the pool of prospective renters has grown tremendously over the past few years. ….and rents are going up at a fast rate.

Call us at 598-3200, or, 800 677-6683 (MOVE), to discuss this wonderful opportunity to add a valuable asset to your retirement package.

5 WAYS TO SELL A HOME FASTER, FOR MORE MONEY
Daily Real Estate News, April 25, 2012

24/7 Wall St. recently asked Real Estate experts and several Real Estate organizations to weigh in on how sellers can get their house sold at the best price and in the shortest amount of time.

Here’s what they had to say as some of the best ways to get the “sold” sign out this spring:

1. Pay attention to “curb appeal”: First impressions are critical, and homes with inviting landscapes and exteriors tend to sell better, agents say. Pay attention that the driveway is in good condition, lawn well-kept, and the house looks freshly painted.
2. Set the right price: Real Estate professionals know how to set the price and prepare a home for sale. Agents use comparable sales of homes sold in the last 60 days to help set the most realistic price for the sales price of a home. By setting a realistic price from the beginning, sellers should be reminded that this will prevent having to drop the price of the home several times before getting it sold and having it linger on the market. If no recent comps are available, some experts recommended sellers get an appraisal, which will also offer a realistic price that the bank may be willing to take when a buyer tries to qualify for financing the home.
3. Talk about energy efficiency: Many buyers don’t fully understand “green” homes but they understand savings. Sellers should point out any features in their homes — such as energy-efficient windows or appliances — that could save buyers money with utility costs.
4. Give the home Web appeal: Good photographs make a home stand-out online and help lure more potential buyers to the front door. Realtor.com says that more than 6,300 photos are viewed per minute on listings posted at its site.
5. Make it: move-in ready Fix any needed repairs, such as water stains, creaky doors, and windows that don’t shut. Flaws in the home — even if relatively minor — can distract buyers, and should be fixed before the home is even listed. Some agents recommend that sellers get a home inspection prior to putting the home up for sale, which can help sellers be proactive in identifying any potential problems that could potentially derail a sale later on. Once a problem is uncovered, sellers are obligated to disclose it or fix it.

And we would like to add 1 more tip for selling your home faster, for more money ….Work with a professional Realtor who is well acquainted with the local market. The selling environment for Real Estate changes quickly and your Realtor should be well-aware of what’s happening in every neighborhood in your area on a daily basis.

Call us at 598-3200, or, 800 677-6683 (MOVE). We will be happy to discuss your best options.

SALES AND LISTING STATISTICS

Click here to see the most recent Sales and Listing information for the Pikes Peak area. These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).

LET US TAKE YOU OUT TO THE BALLGAME !!!

If you like baseball, here’s your chance to see the Sky Sox play FREE.

The Sky Sox baseball team is our local AAA Top Affiliate of the Colorado Rockies. And, because we are long-time supporters of our Sky Sox, we have 4 free tickets to all Sky Sox home games available to our readers. These 4 tickets are in the first row, right behind the home dugout.

If you would like to see the Sky Sox play, just give us a call ….but remember, it’s “First Come, First Served”, so you had better call now.

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

And, please remember, I would be honored to serve as your Broker for all of your residential Real Estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local Real Estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 677-MOVE (6683).

JOKE OF THE WEEK

A guy stuck his head into a barbershop and asked, 'How long before I can get a haircut?
The barber looked around the shop full of customers and said, 'About 2 hours.'

The guy left.

A few days later, the same guy stuck his head in the door and asked, 'How long before I can get a haircut?'
The barber looked around at the shop and said, 'About 3 hours.'

The guy left.

A week later, the same guy stuck his head in the shop and asked, 'How long before I can get a haircut?
The barber looked around the shop and said, 'About an hour and a half.'

The guy left.

The barber turned to his friend and said, 'What’s this guy’s problem? Hey, Bob, do me a favor , follow him and see where he goes. He keeps asking how long he has to wait for a haircut, but he never comes back.'

A little while later, Bob returned to the shop, laughing hysterically.
The barber asked, 'So, where does he go when he leaves here?'

Bob looked up, wiped the tears from his eyes and said,

'Your house!'

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

GOOD NEWS...HOME PRICES ARE ON THE REBOUND AND COLORADO SPRINGS IS LEADING THE WAY

Realtor.com just published their Monthly Housing Summary which shows that, on the national level, inventory of for-sale single family homes declined by -21.48% in March, 2012, compared to a year ago, and declined in one month in all but two of the 146 markets covered by Realtor.com.

The median age of the national inventory fell 19.82% on a year-over-year basis last month and the median national list price was up by 5.56% last month, compared to March 2011.

These positive indicators contrast with the situation at the beginning of the 2011 home buying season, when the median list price was down by 4.81% on an annual basis and the age of the inventory was up by 26.14%.

In the Realtor.com report, Colorado Springs comes in at #55 out of the 146 national markets covered, which puts us in the top third of all markets. In fact, in a year-to-year comparison, our median prices were up 6.9% over last year.

Lawrence Yun, NAR chief economist, said, “The recovery is happening. We have seen nine consecutive months of year-over-year sales increases. With job growth, low interest rates, bargain home prices and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year”.

The bottom line: Realtor.com predicts that 2012 could well mark the beginning of a broad-based housing recovery.

SO, WHO’S HAPPY ABOUT THE REBOUND?

Well, it’s obvious that Sellers are very happy with the rebound in home prices. They have gone through several years of seeing the value of their homes decline. They have seen their homes stay on the market for unreasonable lengths of time while receiving offers that were unacceptably low.

Sellers are now recognizing the improved market and are beginning to demand offers that reflect the recent increase in home values and sales activity. (Just last week, we worked with a buyer who ended up having to pay full list price for a local home. …That’s a very encouraging sign for all prospective sellers.)

SO, WHO’S NOT SO HAPPY ABOUT THE REBOUND?

Well, given the fact that home prices are going up and mortgage interest rates are predicted to rise, prospective buyers who delay the purchase of their new homes will definitely not be happy if they postpone their purchase much longer.

According to Fannie Mae’s March 2012 consumer attitudinal National Housing Survey, more consumers are now looking to purchase homes. ….And that means that home prices will continue to rise !!!

In addition, 44% of the respondents believe their personal finances will get better over the next year.

The bottom line: 73 % of Americans now believe it is a good time to buy a home.

Doug Duncan, vice president and chief economist of Fannie Mae, puts it this way, “Conditions are coming together to encourage people to want to buy homes. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey.

With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, many survey respondents are convinced that renting is becoming more costly and homeownership is a more compelling housing choice.”

Fannie Mae’s National Housing Survey Results

• 33% of respondents expect home prices to increase over the next 12 months… That’s the highest level over the past 12 months.
• 39% of Americans say that mortgage rates will go up in the next 12 months
• 73% of respondents say it is a good time to buy ….That’s the highest level in over a year
• 14% of respondents say it is a good time to sell.
• 48% of respondents think that home rental prices will go up …That’s the highest number recorded to date
• 66% of respondents say that, if they were going to move, they would buy their next home, rather than rent,.

The bottom line for prospective buyers …..Call us right now to discuss your new home. Next year and for many years to come, you will be happy you made your move today !!!

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

FANNIE, FREDDIE ACCELERATING SHORT SALES - LOAN SERVICERS MUST MAKE DECISION IN 30 DAYS
By Inman News, Wednesday, April 18, 2012.

Fannie Mae and Freddie Mac will require loan servicers who need more than 30 days to make a decision on a short-sale offer to provide weekly status updates and give a thumbs-up or thumbs-down no later than 60 days after receiving an offer.

The new short-sale timelines, announced this week by Fannie and Freddie's regulator, the Federal Housing Finance Agency, take effect in June as the first step in a broader effort to help more homeowners avoid foreclosure.

FHFA said it expects additional changes to be in place by the end of the year that address borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance.

Freddie Mac issued more specifics on its new short-sale timeline, which applies not only to offers on properties in Freddie Mac's traditional short-sale program, but to requests from borrowers to be considered for a short sale or deed-in-lieu of foreclosure under the Home Affordable Foreclosures Alternatives (HAFA) program.

If a loan servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower's response.

"Short sales are more complex than routine home sales since they may involve multiple parties and long-distance negotiating," said Tracy Mooney, Freddie Mac senior vice president. "Freddie Mac's new timelines are intended to help make the decision process more transparent and timely for short sales under the Obama administration's HAFA program or Freddie Mac's traditional short-sale option."

Along these same lines, last week, Bank of America announced it has cut decision times on short-sale offers to no more than 20 days, down from 45 days or longer. If offers fall through, agents have five days instead of 14 days to submit a backup offer.

These new, more efficient procedures should eliminate the delays that buyers and Realtors have encountered when attempting to purchase ‘short-sale’ properties and should encourage more activity for short-sales.

Call us to learn more about these new policies and how they might help you obtain your new home. Call us at 598-3200, or, 800 677-6683 (MOVE).

LET’S GET TOGETHER THIS WEEKEND.!!!!

As you may have read in the Gazette, this weekend is National Open House Weekend. As our contribution to the event, we will be holding two open houses …On Saturday the 28th, we will be at 2620 Tamara Way (In Mountain Shadows). This magnificent hillside home features 6 bedrooms and 5 bathrooms. See our “Featured Listing” section, below for complete details of this gorgeous home.

On Sunday the 29th, we will be at 5062 Farris Creek Court, in Cordera. (That’s near Powers and Briargate Parkway, in the Northeast end of town). This beautiful Ranch Home features 5 bedrooms, 3 bathrooms and a finished basement. We are also featuring this listing, below.

We hope you come by to say “Hello” on Saturday or Sunday. This is a great opportunity for us to meet some new friends, to catch up on what’s new with some of our long-time friends and to show you a couple of beautiful homes that are now available at wonderful prices, and …if that’s not enough, You will be able to Register to win some prizes (The Grand Prize is $500 cash).

We will be at our open houses from 1pm to 4pm and we really look forward to seeing you this weekend.

SALES AND LISTING STATISTICS

Click here to see the most recent Sales and Listing information for the Pikes Peak area. These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).

LET US TAKE YOU OUT TO THE BALLGAME !!!

If you like baseball, here’s your chance to see the Sky Sox play FREE.

The Sky Sox baseball team is our local AAA Top Affiliate of the Colorado Rockies. And, because we are long-time supporters of our Sky Sox, we have 4 free tickets to all Sky Sox home games available to our readers. These 4 tickets are in the first row, right behind the home dugout.

If you would like to see the Sky Sox play, just give us a call ….but remember, it’s “First Come, First Served”, so you had better call now.

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

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 677-MOVE (6683).

JOKE OF THE WEEK

$250 IS A LOT OF MONEY

Elmer had always wanted to take a ride in an airplane. When it was announced that plane rides would be offered at the State Fair, Elmer told Sarah, his wife, that they should sign up to take a ride. It would only cost $250.

Sarah said, “$250 is a lot of money”. But Elmer persisted and they finally went to the airport to sign up.

The whole time they were negotiating with the pilot, Sarah kept saying, “$250 is a lot of money”. Finally the pilot said, “OK. I’ll make a deal with you. If you agree not to speak even one word during the flight, I’ll take you up for free!! (The pilot was convinced they wouldn’t be able to handle the stunts without screaming).

Sarah finally said, “$250 is a lot of money, but, if we don’t have to pay if we keep quiet, let’s do it.

So, they took off and the pilot put them through all the stunts he could think of ….barrel rolls, stalls, upside down flying, dives, etc. … and he never heard a word out of his two passengers in the rear seat.

After about 20 minutes, the pilot landed and Elmer climbed out of the plane and collapsed to the ground. The pilot said, “Congratulations, Elmer. You never said a word during the whole flight. I guess you just got a free flight.”

Elmer replied, “Well, I almost said something when Sarah fell out, but I kept thinking, …$250 is a lot of money”.

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

LET’S GET TOGETHER THIS WEEKEND.!!!!

As you may have read in the Gazette, this weekend is National Open House Weekend. As our contribution to the event, we will be holding two open houses …On Saturday the 28th, we will be at 2620 Tamara Way (In Mountain Shadows). This magnificent hillside home features 6 bedrooms and 5 bathrooms. See our “Featured Listing” section, below for complete details of this gorgeous home.

On Sunday the 29th, we will be at 5062 Farris Creek Court, in Cordera. (That’s near Powers and Briargate Parkway, in the Northeast end of town). This beautiful Ranch Home features 5 bedrooms, 3 bathrooms and a finished basement. We are also featuring this listing, below.

We hope you come by to say “Hello” on Saturday or Sunday. This is a great opportunity for us to meet some new friends, to catch up on what’s new with some of our long-time friends and to show you a couple of beautiful homes that are now available at wonderful prices, and …if that’s not enough, You will be able to Register to win some prizes (The Grand Prize is $500 cash).

We will be at the open houses from 1pm to 4pm and we really look forward to seeing you this weekend.

LOCAL SALES TAX REVENUE IS UP IN FIRST 2 MONTHS OF 2012
Colorado Springs Business Journal. April 11th, 2012

Colorado Springs sales-and-use tax collections are up in the first two months of 2012, higher than the first two months of 2011.

Overall, collections are 6.9 percent higher than at this time last year, according to the collections report released by the city Tuesday.

In February, the city reported that sales and use tax was $8.6 million, or 6 percent more than the same month in 2011. In March, collections are $9 million, or 10 percent higher than in the previous year.

According to the report, Restaurants are up 11 percent, auto dealers are up 12 percent and grocery stores are up 10 percent.

This is a good sign that consumer confidence is growing and the economy is going in the right direction.

MORE GOOD NEWS FOR BUYERS …BANK OF AMERICA IS STREAMLINING ITS SHORT-SALE PROCEDURES
By Inman News, Tuesday, April 10, 2012.

Bank of America says it's making changes to its short-sale procedures that will shorten decision times on short sale offers to 20 days, down from 45 days or longer.

The new task flow in Bank of America's short-sale management platform, Equator, will enable short-sale specialists to conduct tasks like document collection, valuations and underwriting simultaneously. Agents will have five days instead of 14 days to submit a backup offer.

If any of our readers have experienced the frustration of waiting for Short-Sale offers to be considered, they will be relieved to hear this good news.

Give us a call to see if this new B of A process might be of help to you in making an offer on a short-sale property.

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

IS THIS A GOOD TIME TO BUY REAL ESTATE? AIG SAYS IT IS.
The Wall Street Journal Wednesday, April 11, 2012

American Investment Group (AIG) has repaid the government most of its $182.3 billion federal bailout and is now planning to jump back into U.S. property investing, reversing its yearslong effort to downsize its real estate business.

This decision demonstrates that the “big guys” are convinced that real estate is now on the way up and will pay-off big in the future.

In fact, as Daily Real Estate News reports(Wednesday, April 11, 2012), more home buyers may jump off the sidelines this spring as they get more urgent about purchasing a home, fearing that home price and mortgage rate increases are on the horizon.

Housing surveys in recent weeks have shown that more Americans are seeing now a great time to purchase a home. In the most recent survey, 73 percent of Americans say now is a good time to buy, according to the latest Fannie Mae Housing Survey conducted in March. That’s up from 70 percent in February who said it was a great time to buy.

"Conditions are coming together to encourage people to want to buy homes," says Doug Duncan, Fannie Mae’s chief economist. "With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is a more compelling housing choice."

Indeed, more buyer urgency is evident in the market. Thirty-three percent of those surveyed by Fannie say they expect home prices soon to increase, which is the highest percentage in a year. What’s more, nearly 40 percent say they expect mortgage rates to rise in the next year too, which is also up from previous surveys.

Coupled with that, 48 percent of Americans say they expect rents to continue to climb, and 44 percent say they expect their financial situation to improve in the next year.

We agree, and we urge our readers to seriously consider buying their new homes right now, while prices are still low, mortgage rates are still low, inventories are still high and inflation has not yet kicked in.

HOUSING CRUNCH COMING TO OLDER AMERICANS
Daily Real Estate News | Monday, April 09, 2012

By 2050, the population of Americans 65 and older will more than double and is expected to grow at a faster rate than any other age group, according to U.S. Census data. By that time, one in five Americans will be over the age of 65, and a new report says that growing population will likely face increasing difficulty in finding suitable housing to meet their needs.

The report from the Center for Housing Policy (“Housing an Aging Population — Are We Prepared?”) warns a severe housing cost burden is looming for the country as the older adult population soars.

Older adults are more likely than younger adults to spend more than half their income on housing, the study found. Home owners who are 65 and older are more likely than younger households to have their mortgages paid off, but other housing-related costs continue to bite into their more limited incomes. Property taxes, home maintenance, and utility costs continue to be a burden to even mortgage-free home owners, the study says.

“As the older population grows, meeting the housing needs of older adults is certain to become a significant challenge across the nation,” says Rodney Harrell, a policy adviser at AARP’s Public Policy Institute. “States and communities need to effectively respond by adopting policies that ensure adequate, affordable housing for people of all ages.”

The report calls for a variety of housing to meet the needs of older adults, including a growth in assisted-living residences, continuing care retirement communities, and congregate housing. The authors also urge for the availability of housing grants and loans to assist with modifying a current home so older adults can age-in-place as well as property tax abatement or housing voucher programs to help alleviate housing costs.

Speaking as one of the “Older Americans” myself, I can sympathize with our older clients who have special housing needs and I would be happy to lend my 39 years of real estate expertise to assist them in their search for housing, or for assistance with listing their present homes.

Us “Old Timers” have to stick together !!! Call me at 598-3200, or, 800 677-6683 (MOVE).

SALES AND LISTING STATISTICS

Click here to see the most recent Sales and Listing information for the Pikes Peak area. These statistics are published by the Pikes Peak Association of Realtors and can be helpful to you in evaluating and comparing current listings in the various neighborhoods in our area. If you would like to ask any questions about this data, please give us a call at 598-3200, 0r, 800 677-6683 (MOVE).

LET US TAKE YOU OUT TO THE BALLGAME !!!

If you like baseball, here’s your chance to see the Sky Sox play FREE.

The Sky Sox baseball team is our local AAA Top Affiliate of the Colorado Rockies. And, because we are long-time supporters of our Sky Sox, we have 4 free tickets to all Sky Sox home games available to our readers. These 4 tickets are in the first row, right behind the home dugout.

If you would like to see the Sky Sox play, just give us a call ….but remember, it’s “First Come, First Served”, so you had better call now.

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

AND, IF ALL OF THIS IS NOT ENOUGH EXCITEMENT FOR YOU, KEEP IN MIND THAT IT’S JUST TWO MORE DAYS UNTIL THE BIG CELEBRATION – TAX FREEDOM DAY !!!

On April 17th, we can all celebrate Tax Freedom Day. That’s the day of the year when we can start working for ourselves, rather than for the government. Up until April 17th, everything we have made during 2012 has gone for taxes. YIPPEE!

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 677-MOVE (6683).

JOKE OF THE WEEK

This is the story of the GHL (Green Haired Lady) flying in a two-seater airplane with just the pilot. He has a heart attack and dies. She, frantic, calls out a May Day.

"May Day! May Day! Help me! Help me! My pilot had a heart attack and is dead, and I don't know how to fly. Help me! Please help me!"

She hears a voice over the radio saying:

"This is Air Traffic Control and I hear you loud and clear. I will talk you through this and get you back on the ground. I've had a lot of experience with this kind of problem.

'Now, just take a deep breath. Everything will be fine! ……….Now give me your height and position."

She says, "I'm 5'4" and I'm in the front seat."

(Pause)
O.K." says the voice on the radio.... "Repeat after me: Our Father. Who art in Heaven..."

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

THE LATEST PPAR SALES AND LISTING STATISTICS FOR THE PIKES PEAK AREA

Sometimes we are asked why we regularly feature the latest PPAR statistics in our eNewsletter. After all, statistics are pretty boring and they are tough to put into context. However, if you are in the market for a new home, or are considering putting your present home on the market, these statistics will be invaluable in helping you determine what your listing price or your probable purchasing price will be, by showing you what comparable properties are selling and listing for, in the neighborhoods you are considering.

In fact, these PPAR statistics are one of the more important tools we utilize when we consult with our clients. Setting realistic listing prices is the key to selling properties as quickly as possible. Most of the horror stories you hear about houses sitting on the market for extended periods of time are the result of unrealistic listing prices. By using these statistics properly, we can help our clients to avoid these basic mistakes.

The PPAR statistics are also used by Real Estate experts and business writers to develop a clear picture of trends and business conditions within our local area. As an example of this, we reprint excerpts from a recent feature story from the Gazette, which is based on the PPAR statistics and on an interview which we did with Rich Laden of the Gazette:

LOCAL HOME SALES FALL, BUT PRICES RISE –

The Gazette, April 03, 2012 1:54 PM (Rich Laden)

“Colorado Springs-area home sales fell last month for the first time since mid-2011, but prices rebounded — rising for the first time in more than a year, a Pikes Peak Association of Realtors’ report shows.

For the first quarter of 2012, sales totaled 1,711, or a 1.5 percent gain over the same period in 2011.

Of homes that sold in March, the median sales price rose to $189,000, a 5 percent increase from the same month last year. The median is the midpoint of all sale prices; in March, half of those prices were more than $189,000 and half were less.

The one-month decline in sales shouldn’t be enough to blunt momentum that’s built up in the re-sale market, said Harry Salzman of Salzman Real Estate Services in Colorado Springs.

Some homebuyers possibly put off their purchases in March, deciding to wait until summer when their kids are out of school, he said. But the increase in price is a good sign, Salzman said.

As buyers take advantage of low mortgage rates and attractive prices, their purchases mean that many homeowners who had been unable to sell their properties finally are able to do so. In turn, those sellers are moving up to bigger and more expensive homes — purchases that likely helped pull up the median price of homes sold in March, Salzman said.”

If you are now in the market to buy or sell a home, you now have at your disposal the same statistics that your Realtor uses.

If you would like clarification of these statistics, or, if you have any other questions about our local market, please do not hesitate to give us a call. We will be happy to answer your questions and to use our 39 years of experience in the local market to advise you about any of the neighborhoods which PPAR covers.

Click Here to see the complete PPAR Listing and Sales statistics for March, 2012

SOME HOME MAINTENANCE TIPS FOR SPRING – WHETHER YOU’RE SELLING OR NOT !!!

1. Get your curb appeal ‘up to snuff’ !!! THIS IS REALLY IMPORTANT FOR SELLERS !!! Today’s Buyers are doing their preliminary shopping online and then doing a ‘drive-by’ to see if they want to investigate further. This really emphasizes the old adage, “You only get one chance to make a good first impression”. If your home fails the ‘drive-by’ test. You won’t see many Buyers.
2. Roofing repairs: If you suspect winter storms may have damaged your roof, it needs to be inspected.
3. Check gutters and downspouts: Clean leaves and debris to be ready for spring and summer rains.
4. Fences and gates: Replace any posts that have rotted.
5. Fans and air conditioners: Check the operation of cooling fans, air conditioners and whole-house fans.
6. Check and adjust sprinklers
7. Check vent blocks and faucet covers:
8. Turn on the water supply to outdoor faucets if it's been shut off.
9. Change furnace filters:
10. Check smoke detectors: Replace the batteries and test the detector's operation.

FHA FEES INCREASE TODAY – HOW LONG BEFORE VA AND CONVENTIONAL LOANS FOLLOW?
Daily Real Estate News

The upfront insurance premium charged on FHA-insured mortgages for home purchases increases today from 1 percent to 1.75 percent on April 9, and the annual FHA mortgage insurance premiums rises by one-tenth of a percentage point.

The cost of a $200,000 FHA mortgage will now rise by about $24 a month, assuming the borrower includes the upfront charge in the amount financed through a 30-year mortgage; a fee increase for jumbo loans and some 15-year loans will be added June 11.

The fourth fee increase in the last three years should boost the FHA's reserves by more than $1 billion through 2013, according to HUD.

Editor’s Note: Our concern is that VA and conventional loans will soon follow this trend and raise their rates, as well.

The bottom line for our readers is: BUY NOW !!!

AS RENTS RISE, OWNING IS REGAINING ITS APPEAL
The Wall Street Journal – and RealtorMag - April 6, 2012

As demand increases throughout the US, rents continue to rise, increasing 5% over the past 12 months. Meanwhile, the asking prices for homes fell 0.7% in that time, according to a new report released Thursday by Trulia Inc.

“Buying a home is now more affordable than renting in almost every part of the US.” Says Jed Kolka, Trulia’s chief economist.

“A lot of people who were owners lost their homes in the bust in these places”, Kolko says. “As a result, many of these former home owners have turned to renting, which has been ramping up demand and driving up rents across the country”

However, as the Wall Street Journal points out, the tide is beginning to turn. Climbing rents are combining with a continued decline in home prices to push once-reluctant home buyers into finally taking the plunge, helping what appears to be a good start to the housing industry’s all-important spring-selling season.

Real estate agents report they are fielding more calls from anxious tenants complaining about rising rents. The bottom line is that “The entry-level market is back”.

If you are a renter who is getting squeezed by rising rents, give us a call. We can help you compare what your costs will be if you move out of your rental into a home of your own.

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

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

WHO IS YOUR ROLE MODEL ??

1) Pick your favorite number between 1-9
2) Multiply by 3
3) Add 3, then multiply again by 3
4) You'll get a 2 or 3 digit number ..
5) Add the digits together

Now, using that number, see who your ROLE MODEL is from the list below:

1. Einstein
2. Nelson Mandela
3. John Wayne
4. Helen Keller
5. Bill Gates
6. Gandhi
7. George Clooney
8. Thomas Edison
9. Harry Salzman
10. Kermit the Frog

I know... I just have that effect on people.
P.S. Stop picking different numbers. It always works

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

FORECLOSURE RATE IN COLORADO SPRINGS BETTER THAN REST OF STATE AND NATION
Colorado Springs Business Journal – March 27, 2012

The rate of foreclosure among all outstanding mortgages in Colorado Springs fell to 1.39 percent in January, according to a report from CoreLogic, a real estate market information and analysis firm. The rate is a decrease of 0.42 percent from January of 2011 when it was 1.81 percent.

Foreclosure activity in Colorado Springs is also significantly lower than the national average, where 3.6 percent of all outstanding mortgages go into foreclosure. Colorado Springs rate was also slightly below the Colorado average of 1.44 percent.

The city is also showing improvement among the percentage of mortgages 90 days or more delinquent. That rate fell from 4.44 percent in January, 2011 to 4.04 percent this January. While that rate is slightly higher than the state average, it’s well-below the national average of 7.24 percent.

The Gazette reports that foreclosures have fallen, in part, because the pool of homeowners falling into foreclosure – people who have lost jobs or had bought houses using non-traditional, risky mortgages – is dwindling.

This is good news for our local housing market and is an indication that local home prices will now start to rise. Sellers will be happy to hear that and will probably start re-listing their homes. Buyers should take note of all of these factors as they decide whether to buy now or continue to wait.

In fact, now is the best opportunity for buyers to make their move. Prices and mortgage rates are still very low, and the inevitable inflation that will soon affect home prices and rates has not kicked in yet.

Another factor that will trigger a rise in home prices is that many prospective buyers have been waiting for prices to stop falling, before they committed to buy. When all of these Mugwumps start looking to buy, prices will definitely rise even further.

Contact us to discuss the local market in more detail. Should you buy, rent, refinance, or list?? We can help you make the decision that will be best for you. Call us at 598-3200, or, 1-800-677-6683.

HAPPY DAYS ARE HERE AGAIN, ACCORDING TO 38 LEADING REAL ESTATE EXPERTS

A new Urban Land Institute survey of 38 leading real estate economists and analysts from across the US projects broad improvements for the nation’s economy, real estate capital markets, real estate fundamentals and the housing industry through 2014.

The survey, conducted during late February and early March, is a consensus view and reflects the median forecast for 26 economic indicators, including property transactions, vacancy rates and rents, housing starts and home prices.

Some of the consensus predictions are:

• Rents are expected to increase for all property types, with 2012 apartment rent increases of 5%
• Housing starts will nearly double by 2014 and home prices will begin to rise, with prices increasing by 3.5% in 2014.

Lawrence Yun, chief economist for the National Association of Realtors, echoed the survey results. He stated, “The spring home buying season looks bright because of an elevated level of contract offers so far this year. If activity is sustained near present levels, existing home sales will see their best performance in five years. Based on all the factors in the current market, we’re expecting sales rising 7%-10% in 2012”.

The surveyed experts also predict a GDP growth of 2.5% this year, 3% in 2013 and 3.2% in 2014. They also predict a decrease in unemployment, down to 6.9% in 2014.

The down-side of these positive predictions is that the improving economy will likely lead to higher inflation and interest rates.

Freddie Mac reflected these trends by stating, “We can expect 30-year fixed-rate mortgages to gradually increase throughout the year to about 4.5%”.(March 29, 2012).

Frank Nothaft, Freddie Mac’s chief economist noted that “As if awakening from hibernation, housing starts and home sales have moved to a higher level of activity”.

Keep in mind, however, that if you wait another six months to buy your new home, both the price for the home and the mortgage rate will probably be higher than they are today.

Call us at 598-3200, or 1-800-677-6683.

BUYING A HOME? THE COST IS MORE IMPORTANT THAN THE PRICE
The KCM Crew, March 19, 2012

KCM is a respected source of in-depth information about the real estate market. They recently published a timely reminder for prospective buyers, advising them to consider the total cost of their home purchase, as opposed to merely the price of the house. We thought you would be interested in their comments:

“We have often advised buyers to look at the COST of purchasing a house more than the PRICE of the home. Obviously, price is part of the cost equation. The other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost. Recently, there are more people talking about the possibility that mortgage rates could begin to increase”.

They point out that, over the life of a 30-year mortgage, a 1.5% increase in interest rate will cost the homeowner over $40,000. And, when we consider that NAR is predicting that mortgage rates will soon be rising from 3.9% to as much as 4.6%, it’s obvious that waiting may not be in your best interests.

Furthermore, considering the projected rise in rents and the fact that, as a homeowner, you have tax advantages that you don’t enjoy as a renter, the total cost to you of delaying your home purchase may be greater than you think.

In fact, if you are considering buying a home in today’s market, there are 4 things that you should be discussing with your real estate agent:

1. Would you be better off buying or renting?
2. What are the advantages of owning a home, including the non-financial advantages?
3. Why the financial gurus are saying that NOW IS THE TIME TO BUY
4. Why Real Estate will be a GREAT investment moving forward.

We would be happy to discuss all of these factors with you. Call us at 598-3200, or 1-800-677-6683.

And, please remember, I would be honored to serve as your Broker for all of your residential Real Estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local Real Estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing Relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area. These statistics can help you evaluate prices and neighborhoods. Call us, if you have any questions.

JOKE OF THE WEEK

As part of our effort to achieve world peace, we have developed a list of “Men’s Rules”.

These rules are meant to clarify some aspects about men’s behavior which sometimes lead to misunderstandings, arguments and/or hurt feelings
Please note.. These are all numbered "1 "…….on purpose!

1..Men are not mind readers. (first & foremost rule)
1..Learn to work the toilet seat. You're a big girl. If it's up, put it down. We need it up, you need it down. (You don't hear us complaining about you leaving it down. )
1..Sunday sports, it's like the full moon, or the changing of the tides. Let it be.
1..Crying is blackmail.
1..Ask for what you want. Let us be clear on this one: Subtle hints do not work! Strong hints do not work! Obvious hints do not work! Just say it!
1.."Yes" and "no" are perfectly acceptable answers to almost every question.
1..Come to us with a problem only if you want help solving it. That's what we do. Sympathy is what your girlfriends are for.
1..Anything we said 6 months ago is inadmissible in an argument. In fact, all comments become null and void after 7 days.
1..If you think you're fat, you probably are. Don't ask us.
1..If something we said can be interpreted two ways and one of the ways makes you sad or angry, we meant the other one
1..You can either ask us to do something, or tell us how you want it done....not both. (if you already know best how to do it , just do it yourself. )
1..Whenever possible, please say whatever you have to say during commercials..
1..Christopher columbus did not need directions and neither do we.
1..All men see in only 16 colors, like windows default settings. Peach, for example, is a fruit, not a color. Pumpkin is also a fruit. (we have no idea what mauve is.)
1..If it itches, it will be scratched. We do that.
1..If we ask what is wrong and you say "nothing," we will act like nothing's wrong. (we know you are lying, but it is just not worth the hassle..)
1..If you ask a question you don't want an answer to, expect an answer you don't want to hear.
1..When we have to go somewhere, absolutely anything you wear is fine... Really .
1..Don't ask us what we're thinking about unless you are prepared to discuss such topics as football,hockey, hunting, or fishing.
1..You have enough clothes.
1..You have too many shoes.
1..I am in shape. (round is a shape!)

Thank you for reading this. .....yes, I know, I have to sleep on the couch tonight;
(but did you know men really don't mind that? It's like camping.)

Pass this to as many men as you can -
To give them a laugh.

Pass this to as many women as you can -
To give them a bigger laugh.

LOCAL ECONOMY GAINING JOBS IN PAST 18 MONTHS
The Gazette, Saturday, March 24, 2012

Thought the unemployment rate in the Colorado Springs area remains at a stubborn 9%, there is good news. The local economy has been adding jobs, rather than losing them, according to the revised payroll data released Friday by the U.S. Bureau of Labor Statistics.

The revisions add more than 4,600 jobs per month to last year’s employment totals and reflect a local economy that began recovering from the most recent recession in late 2010, said Tom Binnings, a senior partner of Summit Economics, LLC, a Colorado Springs-based economic research and forecasting firm.

“This is what we were forecasting for last year but wasn’t reflected in the survey numbers, that the economy was much better than was estimated by BLS. We are very pleased that the local economy is gaining traction.’ Binnings said.

“If you look at the other economic indicators for the area,such as sales tax collections, vehicle sales and housing construction, they support that employment was higher than originally reported”, said Fred Crowley, senior economist for the Southern Colorado Economic Forum.

“All indications ar that the local economy is in recovery after bottoming out in early 2009 and has been moving forward at a faster pace than it originally appeared to be”, Crowley said.

That’s good news for our area !!!!

BUYING BEATS RENTING IN COLORADO SPRINGS
by Inman News, Thursday, March 22, 2012.

Thanks to nationwide price declines and rising rents, buying a home is now cheaper than renting one in 98 of the nation's 100 major metropolitan areas, according to a rent vs. buy index from real estate search and marketing site Trulia.

The rent vs. buy index is based on a price-to-rent ratio of asking prices to asking rents for properties on Trulia.com between Dec. 1, 2011 and Feb. 29. 2012, after adjusting for property and neighborhood attributes.

A price-to-rent ratio of 15 or below indicates it is less expensive to buy than to rent in an area.
The top 10 metro areas where it is cheaper to buy than to rent are:

Rank US Metro Price:Rent Ratio

1 Honolulu 17
2. San Francisco 15.5
3. New York 14.5
4. San Jose, CA 14.3
5. Orange County, CA 13.5
6. Los Angeles, CA 13
7 San Diego, CA 12.7
8. Colorado Springs, CO 12
9. Boston, MA 12
10 Albuquerque, NM 11

As rents rise and prices stagnate, homeownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring homeowners face.”

Paul Dales, senior economist at Capital Economics, estimated decreased vacancies in the home-rental market will push average rental rates up as much as 5% by early 2013, compared to 2.4% in January.

He expects rents to rise at an annual rate of 3% this year and remain at that level in 2013. "Assuming that the economic recovery gains firmer footing, in future years there is scope for rents to rise by around 4% a year," Dales said.

The bottom line for our local, Colorado Springs readers is that you should check with us to see if, considering your circumstances and present market conditions, buying might be better for you than renting, or, if your portfolio would profit from purchasing a rental property, we will be pleased to discuss that option with you. Call us at 598-3200,or,1-800-677-MOVE(6683) to discuss these opportunities.

IT’S TIME TO STOP BEING A MUGWUMP

A Mugwump is a bird that sits on a fence with his ‘mug’ on one side and his ‘wump’ on the other.

For the past few years, the real estate market has been full of prospective buyers (Mugwumps) who have delayed their purchasing decision, as they wait for mortgage rates to go even lower.

Well, folks, if you have been a Mugwump, it’s now time to get off the fence. All the evidence points to the fact that rates are not going to go down, but are even now starting to rise.

Within the past week, the Wall Street Journal, DS News, Housingwire and InmanNews have all featrured stories about the rise in mortgage interest rates. In addition to this rise in rates, you have to add in the fact that FHA costs are rising, the inventories of available homes is shrinking and, in many markets, credit scores are beginning to present problems for prospective buyers.

Locally, Tom Monroe of Residential Mortgage of Colorado LLC just quoted me some current data that emphasize this trend. For example:

• A 30-year, fixed rate, conventional mortgage, with a minimum 20% down payment is now going for around 4.375% - 4.5%....That still extremely low, but it’s higher than it was two weeks ago
• A 15 year, fixed rate, conventional mortrgage is now about 4.0%
• A 30 year, fixed rate for an FHA mortgage is now about 4%
• Our inventory of available homes is shrinking, and, as we all know, when supply shrinks, prices tend to rise.

Real estate agents also see the lack of inventory as a problem . The number of homes for sale is down sharply from a year ago. That may stem partly from would-be sellers waiting for prices to firm up.

We strongly urge you to contact your local lender to see how the recent changes in rates, closing costs and FHA fees might affect your loan …and then call us for assistance in getting the best deal possible on your new home.

Call us at 598-3200, or, 1-800-677-MOVE(6683) to discuss the present opportunity for you to buy your home….and leave the other Mugwumps on the fence !!!

FEBRUARY NATIONWIDE HOME SALES UP STRONGLY FROM A YEAR AGO

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, are 8.8 percent higher than the level in February 2011.

Lawrence Yun, NAR chief economist, says underlying factors are much better compared to one year ago. “The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market,” he says. “Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy.”

“The bottom line is investors and first-time buyers are competing for bargain-priced properties in much of the country, with home prices showing signs of stabilizing in many areas. People realize that homeownership is an investment in their future. Given an apparent over-correction in most areas, over the long term home prices have nowhere to go but up.”

Call us at 598-3200, or, 1-800-677-MOVE(6683) to discuss the present opportunity for you to buy your home.

CONSUMER CONFIDENCE RISES NATIONALLY

A new national survey released by Prudential, shows that Americans are significantly more optimistic about home ownership than they were a year ago. According to the survey, a full 60 percent of Americans have favorable views toward the real estate market. That is up eight points since last year.
More details from the national Prudential Survey:

• With interest rates at historically low levels, 96 % agree or somewhat agree that now is a good time to buy.
• A full 70 % of respondents have some degree of confidence that property values will improve over the next two years; with an eight-point increase in those “very confident”, or “confident” compared to last year.
• 63 % believe that real estate is a good investment despite the recent market volatility; that is up 11 points from last year.

And, please remember, I would be honored to serve as your Broker for all of your residential Real Estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.
 

Also if you know of anyone who desires to buy or sell local Real Estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing Relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast.

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area. These statistics are issued each month by the Pikes Peak Association of Realtors and enable us to help you determine current Listing prices and Sales prices in every neighborhood in this area. Please give us a call, if you have any questions about the numbers.

JOKE OF THE WEEK

OK, we know that some people are offended by ‘blonde jokes’, so we have edited the following to refer to ‘Green-Haired-Ladies’ (GHL). There, now. Nobody has to be offended, so just enjoy!!!

FIRST DEGREE
A married couple were asleep when the phone rang at 2 in the morning.
His GHL wife picked up the phone, listened a moment and said 'How should I know,
that's 200 miles from here!' and hung up. The husband said, 'Who was that?'
The wife answered, 'I don't know, some woman wanting to know if the coast is clear.'

SECOND DEGREE
Two GHLs are walking down the street. One notices a compact on the sidewalk and leans down to pick it up. She opens it, looks in the mirror and says, 'Hmm, this person looks familiar.'
The second GHL says, 'Here, let me see!' So, the first GHL hands her the compact.
The second GHL looks in the mirror and says, 'You dummy , it's me!'

THIRD DEGREE
A GHL suspects her boyfriend of cheating on her, so she goes out and buys a gun. She goes to his apartment unexpectedly and when she opens the door she finds him in the arms of a redhead. Well, the GHL is really angry. She opens her purse to take out the gun, and as she does so, she is overcome with grief. She takes the gun and puts it to her head. The boyfriend yells, 'No, honey, don't do it!!!' The GHL replies, 'Shut up, you're next!'

FOURTH DEGREE
A GHL was bragging about her knowledge of state capitals. She proudly says, 'Go ahead, ask me, .. I know 'em all.' A friend says, 'OK, what's the capital of Wisconsin ?'
The GHL replies, 'Oh, that's easy . it's W.'

FIFTH DEGREE
Q: What did the GHL ask her doctor when he told her she
was pregnant? A: 'Is it mine?'

SIXTH DEGREE
Bambi, a GHL in her fourth year as a UCLA Freshman, sat in her US Government class The professor asked Bambi if she knew what Roe vs. Wade was about. Bambi pondered the question; then, finally, said, 'That was the decision George Washington had to make before he
crossed the Delaware .'

SEVENTH DEGREE
Returning home from work, a GHL was shocked to find her house ransacked and burglarized. She telephoned the police at once and reported the crime. The police dispatcher broadcast the call on the radio, and a K-9 unit, patrolling nearby, was the first to respond. As the K-9 officer approached the house with his dog on a leash, the GHL ran out on the porch, shuddered at the sight of the cop and his dog, then sat down on the steps. Putting her face in her hands, she moaned, 'I come home to find all my possessions stolen. I call the police for help, and what do
they do? They send me a BLIND policeman!'

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

GOOD NEWS !!! COLORADO SPRINGS HOMES SELLING BETTER IN 2012 THAN LAST YEAR
The Gazette, Wednesday Mar. 7, 2012

The Gazette reports that local home sales hit 514 in February, 2012. This represents a 14.7% rise in sales over 2011 and marks the 8th straight month of increasing local sales. So far in 2012, our local housing market has shown an 8.8% rise in the number of sales over the same period last year.

Considering the fact that this is an election year, it is very likely that the government will take whatever actions are necessary to boost home prices during the rest of the year. So, with higher prices, low rates, shrinking inventory ….If you have been on the fence about buying or selling your home, now is certainly the time to make your move.

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

HOUSING AFFORDABILITY REACHES NEW RECORD HIGH

Housing affordability rose to a record high during the fourth quarter of 2011, which means that a home buyer’s purchasing power is greater than it has ever been since record-keeping began in 1970, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.

NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power.

An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent down payment and 25 percent of gross income devoted to mortgage principal and interest payments. For first-time buyers making small down payments, the affordability levels are relatively lower. Based upon these parameters, the Index showed that 75.9% of all new and existing homes sold in the fourth quarter were affordable to families earning the national median income of $64,200. This marks the highest percentage recorded in the index’s 20-year history.

NAR President Moe Veissi, said this latest data underscores buyer opportunities in today’s market. “This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home,” he said. “For buyers who can qualify for a mortgage, now is a very good time to become a homeowner.”

NAR projects the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year. “Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country,” Veissi said. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”

Considering today’s low prices, low mortgage-interest rates and high inventories of available homes, it’s obvious that now is the time to buy your new home, or to acquire that rental property.

Call us at 598-3200, or, 800-677-6683, to discuss this opportunity.

WHAT YOU NEED TO KNOW ABOUT CANCELATION OF MORTGAGE DEBT
By Linda Goold, Tax Counsel for National Association of REALTORS®.

A lender will, on occasion, forgive some portion of a borrower’s debt. The general tax rule that applies to any debt forgiveness is that the amount forgiven is treated as taxable income to the borrower. Some exceptions to this rule are available, but, until recently, the borrower was required to pay tax on the debt forgiven. A new law enacted in December 2007 provides relief to troubled borrowers when some portion of mortgage debt is forgiven. However, this relief expires on December 31, 2012 and NAR will be working to obtain an extension throughout the year.

Below is some general information you need to know about this law and cancellation of mortgage debt.

General Rule for Debt Forgiveness
If a lender forgives some or all of an individual’s debts, the general rule is that the forgiven amount is treated as ordinary income and the borrower must pay tax on the forgiven amount. Exceptions apply for bankruptcy, insolvency and certain other situations, including mortgage debt.

Current Law for Mortgage Debt
(Jan. 1, 2007 through Dec. 31, 2012): A borrower can be excused from paying tax on forgiven mortgage debt. The debt must be secured by a principal residence and the total amount of the outstanding obligation may not exceed the original mortgage amount plus the cost of any improvements.

Does the relief apply only to a sale?
No. The provision has broader application. Lenders might forgive some portion of mortgage debt in a short sale (when value at sale is less than the amount owed) or in a foreclosure where the debt is wiped out. In addition, if a borrower still living in the home is able to make an arrangement with a lender that reduces the principal balance of a mortgage, the amount forgiven in that workout will not be taxed.

Can the homeowners in a short sale or foreclosure claim a loss?
No. The loss is considered a personal loss and is, therefore, ineligible for either capital loss or ordinary loss treatment.

What happens to the seller when mortgage debt is forgiven?
Until January 1, 2013, the homeowner will pay no tax on any forgiven amount.

Does this provision apply to a refinanced mortgage?
Only in limited circumstances. The relief provision can apply to either an original or a refinanced mortgage. If the mortgage has been refinanced at any time, the relief is available only up to the amount of the original debt (plus the cost of any improvements). Tax relief is generally not available for second mortgages or home-equity lines of credit where the funds are not used for home improvement. Any amount that is not eligible for the relief provision will be taxed as ordinary income.

How does the homeowner get the correct information to the IRS?
The lender is required to provide the homeowner and the IRS with a Form 1099 reflecting the amount of the forgiven debt. The borrower/homeowner must file a Form 982 to reflect the amount forgiven and to show the reason why the forgiven amount is not taxable. Any taxable portion of forgiven debt will then be reported on the homeowner’s Form 1040 for the tax year in which the debt was forgiven.

What if a property declines in value but the owner stays in the house?
The provision would not apply. The provision applies only at the time of sale or other disposition or when there is a workout (reduction of existing debt) with the lender.

Do all lenders forgive mortgage debt when property values decline or the home is in foreclosure?
No. Some states have laws that allow a lender to require a repayment arrangement, particularly if the borrower has other assets. Forgiveness of debt is always at the lender’s discretion.

SMALL BUSINESS OWNERS, TAKE NOTE. …CUSTOMERS ARE LOOKING FOR YOU ONLINE
Real Estate Trends March 11, 2012

As a business owner operating in a local market, the reliance of consumers on their smart phone and tablet devices has put you in the position to capitalize more so than ever before. The way in which the technology, mobile apps and social media have come together has placed the focus on “local” more so than ever before.

A recent study by comScore revealed that 64 percent of tablet owners are searching weekly and 61 percent of smart phone users conduct local searches from their device. In addition, the report shows a 67 percent increase in social network local business searches since 2010. One thing we know about social network users is that they are in large part accessing from their mobile device.

Take for a moment a real life scenario; you’re out to dinner with friends and you mention you are going to need a plumber. Your friend replies, “I know a great company you should work with.” The common practice in many social circles now-a-days is to immediately Google or look up that recommendation through a social network from your mobile device. We’ve all done this in one form or another.

This means that your information not only needs to be accessible and updated in the various business profiles and on maps in engines like Google, Bing and Yahoo, but it also means that the link to your website needs to work on mobile and tablet devices as well as it does on PCs. Your brand and your information need to be consistent no matter the device the consumer is using.

The old days of just advertising your business in the Yellow Pages are gone forever.

SALES AND LISTING STATISTICS

Click here to see the latest PPAR statistics regarding area sales and listings And be sure to give us a call, if you have any questions, or would like to discuss these statistics in more detail. Call us at 598-3200, or, 800 677-6683.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

RETIRED/BORED HUSBAND

After I retired, my wife insisted that I accompany her on her trips to Target. Unfortunately, like most men, I found shopping boring and preferred to get in and get out. Equally unfortunate, my wife is like most women - she loves to browse. Yesterday my dear wife received the following letter from the local Target:

Dear Mrs. Harris, Over the past six months, your husband has caused quite a commotion in our store. We cannot tolerate this behavior and have been forced to ban both of you from the store. Our complaints against your husband, Mr. Harris, are listed below and are documented by our video surveillance cameras:
• June 15: He took 24 boxes of condoms and randomly put them in other people's carts when they weren't looking.
• July 2: Set all the alarm clocks in Housewares to go off at 5-minute intervals.
• July 19: Walked up to an employee and told her in an official voice, 'Code 3 in Housewares. Get on it right away'. This caused the employee to leave her assigned station and receive a reprimand from her Supervisor that in turn resulted with a union grievance, causing management to lose time and costing the company money.
• August 4: Went to the Service Desk and tried to put a bag of M&Ms on layaway.
• August 14: Moved a 'CAUTION - WET FLOOR' sign to a carpeted area.
• August 23: When a clerk asked if they could help him he began crying and screamed, 'Why can't you people just leave me alone?' EMTs were called.
• September 10: While handling guns in the hunting department, he asked the clerk where the antidepressants were.
• October 3: Darted around the Store suspiciously while loudly humming the ' Mission Impossible' theme.
• October 18: Hid in a clothing rack and when people browsed through, he yelled 'PICK ME! PICK ME!'
• October 22: When an announcement came over the loud speaker, he assumed a fetal position and screamed 'OH NO! IT'S THOSE VOICES AGAIN!'
And last, but not least:
• October 23: Went into a fitting room, shut the door, waited awhile, and then yelled very loudly, 'Hey! There's no toilet paper in here.' One of the clerks passed out.

Some people just have no sense of humor !!!

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

LATEST LOCAL STATISTICS ARE LOOKING GOOD !!

The February PPAR statistics were just released today, and our numbers are looking good. The number of sales in February was up 8.4%, the average sales price went up 3.8% in one month, and the median sales price went up 2.6% in one month. Those numbers indicate that our local market is getting much more active. .

Another indicator that things are getting better is that our inventory of available homes has gone down by over 1000 homes since last year (3224 vs 4315). That’s a 25.3% reduction and a good indication that we are working through the foreclosure problem.

The most recent PPAR statistics regarding sales and listings in the Pikes Peak area will provide you with extensive data to assist you with your decision about buying or selling your home. We would be happy to discuss these statistics with you and to review the sales history of the neighborhoods that interests you.. Just call us at 598-3200 or 800 677-6683(MOVE)

Click here to see the most recent statistics

AND, LOCAL, NEW-HOME CONSTRUCTION IS UP

The Gazette (March 2, 2012) tells us that last month was the 2^nd- best February in 5 years for home building permits. Permits totaled 110 in February in Colorado Springs and El Paso County, according to the Pikes Peak Regional Building Department. That’s up nearly 70% over the same month in 2011. And, for the first two months in 2012, permits totaled 195, a one-third, year-over-year increase.

PENDING SALES OF EXISTING HOMES UP TO ALMOST A TWO-YEAR HIGH

RIS Media - March 4, 2012

More Americans are signing contracts to buy existing homes than at any time in nearly two years, boosting the housing industry’s slow recovery, according to the National Association of REALTORS®’ index of pending home sales.

The measure is up 2 percent to 97 in January after slipping 1.9 percent in December. The index of deals for previously owned homes is up 8 percent compared with January of 2011.

Last month saw the highest point on the index since April 2010, when consumers drawn by a home-buyer tax credit pushed the figure to 111.3. That was the last time the measure exceeded 100 — the benchmark for industry health. The REALTORS® group said last week that existing home sales in January were up more than 4 percent to an annual rate of 4.57 million.

Housing experts such as Lawrence Yun, NAR’s chief economist, credit the sliding unemployment rate—which fell in January to its lowest point in three years —as well as a downward trend in home prices and a supply of homes that is at a nearly seven-year low.

“Movements in the index have been uneven, reflecting the head winds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,” Yun says in a statement.

HOW IS THE NATIONAL ECONOMY DOING? IT LOOKS LIKE IT IS PICKING UP SPEED

The Gazette (Thursday, March 1, 2012) reports that stronger hiring and higher pay and savings should support solid growth for the economy in coming months, according to a recent report on economic growth from the Commerce department.

The economy grew at a 3% annual rate in the October-December quarter, up from the previous estimate of 2.8%, the Commerce department said.

Economists stressed that the fundamental drivers of the economy – incomes, consumer spending and business investment – are rising.

The unemployment rate has fallen for five straight months. Consumer confidence rose in February to the highest point in a year, which should lead to more spending and faster growth

The Fed said Wednesday that all 12 of its banking districts reported some level of growth in January.

In a related story, The Wall Street Journal (Friday, March 2, 2012) also reported that there are other hopeful signs that the foundation for healthy growth are beginning to take root. Recent job gains have been broader-based and longer-lasting than at other points in the recovery. Household saving is up and the home-building market is showing signs of improvement.

Finally, REALTORMag (Feb. 28, 2012) reports the inventory of new homes on the market shrank to its lowest point on record in January, marking a 5.6 month supply at the current sales pace, according to the Commerce Department. They also noted that new home sales were up 3.5%, compared to the same time last year.

“This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth”, said David Crowe, the National Association of Home Builders chief economist.

“Increasingly, potential buyers are feeling better about their financial situation and their ability to buy a home, but the challenges posed by tight credit conditions and appraisal issues continue to slow that process”, Crowe said.

FINALLY, EVEN WARREN BUFFETT SAYS IT’S TIME TO BUY

In his Feb. 25 letter to Berkshire Hathaway Inc., Warren Buffet says. “I’m optimistic again. Housing will come back- you can be sure of that. Every day we are creating more households than housing units. People may postpone getting married during uncertain times, but eventually hormones take over and, while ‘doubling up’ may be the initial reaction during a recession, living with in-laws can quickly lose its allure”

That Warren sure is a romantic son of a gun.

BOTTTOM LINE: IT’S TIME TO GET OFF THE FENCE AND BUY THAT NEW HOME

Prices are down ….rates are low …Inventory is beginning to shrink and you’ll never see this kind of opportunity again.

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

AND, IF ALL OF THIS DOESN’T PERSUADE YOU, HERE’S ANOTHER REASON TO BUY NOW …FHA WILL SOON RAISE ITS FEES

In an effort to try to recoup some of its depleted reserves, and in an effort to encourage the return of more private capital to the market, FHA announced on Monday, Feb. 27, 2012, that it will soon raise its fees.

Specifically, FHA will increase two fees that borrowers pay. Starting April 1, it will increase its annual mortgage insurance premiums for loans under $625,500, bringing the total cost from 1.15% of the loan amount to 1.25%. Starting June 1, 2012, larger loan premiums will see an increase of 0.35% of a percentage point, bringing the total premium costs up to 1.5% of the loan amount.

FHA also announced it will raise a fee for the upfront mortgage premium by 0.75 of a percentage point, which will now total 1.75% of the loan amount

These new fees will also apply to home owners who want to refinance their mortgages, the agency announced

BOTTOM LINE: Call us at 598-3200, or, 800 677-6683(MOVE) to discuss these fee increases and to discuss how they could affect your home-buying decision.

And, please remember, I would be honored to serve as your Broker for all of your residential Real Estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local Real Estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing Relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, please contact us.

JOKE OF THE WEEK

On the first day, God created the monkey and said, "Enjoy yourself, entertain people, do tricks, and make them laugh. For this, I'll give you a thirty-year life span." The monkey said, "Monkey tricks for thirty years? That's a pretty long time to perform. How about I give you back twenty?"

And God, again saw that it was good.

On the second day, God created the cow and said, "You must go into the field with the farmer all day long and suffer under the sun, have calves and give milk to support the farmer's family. For this, I will give you a life span of sixty years." The cow said, "That's kind of a tough life you want me to live for sixty years. How about twenty and I'll give back the other forty?" 

And God agreed that it was good.

On the third day, God created the dog and said, "Sit all day on the front porch of your owner’s house and bark at anyone who walks past or tries to come in. For this, I will give you a life span of twenty years." The dog said, "That's a long time to be barking. How about only ten years and I'll give you back the other ten"

And God saw that it was good.

On the fourth day, God created humans and said, "Eat, sleep, play, marry and enjoy your life. For this, I'll give you twenty years." But the human said, "Only twenty years? Could you possibly give me my twenty, the twenty the monkey gave back, the forty the cow gave back and the ten the dog gave back; that makes eighty, okay?"

"Okay," said God, "You asked for it."

So that is why for our first twenty years, we eat, sleep, play and cavort like monkeys. For the next forty years, we slave in the sun to support our family. And for the last ten years, we sit on the front porch and bark at everyone. 

Life has now been explained to you. There is no need to thank me for this valuable information. I'm doing it as a public service. 

If you are looking for me I will be on the front porch.  

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

BABY BOOMERS MEAN BIG BUSINESS FOR EL PASO COUNTY
The Gazette (Feb. 24th, 2012)

Brent Green, CEO of Brent Green & Associates and an expert in generational marketing, discussed "Marketing to Baby Boomers" this week in Colorado Springs. His message was that El Paso County baby boomers could mean big business for those who figure out how to market and create new products and services for the generation with spending power.

Green was among a group of marketing and economic experts who spoke Friday at the Business of Aging Summit, sponsored by the Greater Colorado Springs Chamber and Economic Development Corps.

“Baby boomers are where the wealth and income are –they spend about $2.3 trillion a year and own about $28 trillion in assets. Colorado Springs had better think about how it will develop around this generation with deep pockets.”, said Green.

The boomer population in El Paso County increased nearly 40 percent from 2000 to 2010. That’s double the increase of the total population, according to a report from Innovations in Aging Collaborative and Tucker Hart Adams, from Summit Economics.

Colorado Springs has the assets to become an international test market and incubator for the “longevity revolution, a global business opportunity,” Green said. Boomers will be in search of lifestyle pursuits, adventure vacations and natural and energy efficient products.

And, 26 million of the boomers will relocate. With Colorado Springs being in the top ten targets for retiring boomers, that’s good news for our local housing market.

The business opportunities are endless, Green said. Sixty-seven percent of boomers believe the best years are still ahead of them. “Billions will be made in helping boomers live on their own,” Green said.

“Those who warn of economic catastrophes due to population aging too often peer into the future through a rear view mirror,” Green said. “I propose that the boomer future is robust with transformative business opportunities.”

WHAT’S GOING ON HERE??? ALONG WITH THE GROUNDHOG, THE OPTIMISTS ARE NOW COMING OUT

It has been a long time since we have read any optimistic predictions about the housing market, but this past week has seen some very upbeat news and articles about the real estate market in 2012. The following is a compilation of some of these optimistic articles:

THE WALL STREET JOURNAL SEES RISING HOME SALES AS A HEALTHY SIGN (WSJ Feb. 23, 2012.)

WASHINGTON—Sales of previously owned homes in the U.S. rose last month to the highest level in nearly two years, and the inventory of unsold homes contracted to a level considered healthy by economists, positive signs for the housing market. Compared with January a year ago, sales rose 0.7%.

"We're slowly improving for the right reasons: more jobs, more credit availability and affordability of homes," said Stuart Hoffman, chief economist with PNC Financial Services Group.

Guy Berger, U.S. economist with RBS Capital Markets, wrote, “It seems that the housing sector may have turned the corner."

FEWER HOME OWNERS BEHIND ON PAYMENTS
Daily Real Estate News | Tuesday, February 21, 2012

The number of home owners behind on their mortgage payments dropped to the lowest level in three years, according to a report of data from the fourth quarter of 2011 released by the Mortgage Bankers Association.

"Mortgage performance is also improving faster than the overall economy," says Jay Brinkmann, MBA's chief economist.

The lower delinquencies serve as an important sign needed for a healing housing market.

HOUSING INVENTORIES DROP, LIST PRICES RISE
Daily Real Estate News | Tuesday, February 21, 2012

In a growing number of housing markets, sellers are facing less competition now compared to a year ago.
Inventory of for-sale homes has dropped by about 23 percent compared to this time last year and fell by 6 percent alone from December 2011 to January 2012, according to Realtor.com data.

Meanwhile, as inventory is falling, the median list price has been on the rise: up nationally more than 3 percent year-over-year.

“Over the past year, an increasing number of markets have registered year-over-year increases in median list prices while fewer markets have experienced year-over-year list price declines,” a statement by Realtor.com notes.

HOME SALES ON THE RISE: READY FOR SPRING BUYING SEASON?
Daily Real Estate News | Thursday, February 23, 2012

Existing-home sales rose 4.3 percent in January to a seasonally adjusted annual rate of 4.57 million, marking the third gain for home sales in the last four months, the National Association of REALTORS® reports.

“The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents,” NAR’s Chief Economist Lawrence Yun says.

While sales ticked up, inventories of for-sale homes also continued to show improvement, NAR reported. At the end of January, total housing inventory fell 0.4 percent to 2.31 million existing homes for sale, which represents a 6.1-month supply at the current sales pace.

Unsold listed inventory has steadily dropped since reaching a peak of 4.04 million in July 2007. It now is 20.6 percent below where it was a year ago, NAR reports.

Housing Affordability Improves

As home prices have fallen and mortgage rates at all-time record lows, housing affordability is at some of its highest levels on record.

“Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” says NAR President Moe Veissi. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”

EXISTING-HOME SALES RISE AGAIN IN JANUARY, INVENTORY DOWN
Real Estate Trends - February 23, 2012

Existing-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011.

Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent month’s show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals— pent-up household formation, record-low mortgage interest rates, bargains home prices, sustained job creation and rising rents.”

Total housing inventory at the end of January fell 0.4 percent to 2.31 million existing homes available for sale, which represents a 6.1-month supply at the current sales pace, down from a 6.4-month supply in December.

Total unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 20.6 percent below a year ago.

“Home buyers over the past three years have had some of the lowest default rates in history,” Yun says. “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”

In light of all these optimistic reports and predictions, the bottom line for our readers is:

If you are a Seller, you should consider putting your home back on the market as soon as possible. With inventories falling, you won’t have as much competition as you have had in recent years and your home will attract more attention. Keep in mind, however, prices are trending up, so give us a call to help you price your home properly.
Call us at 598-3200 or 800 677-6683(MOVE)

If you are a Buyer, it’s becoming obvious that the home you buy today will be worth more tomorrow, so don’t wait around for lower prices. They probably won’t happen. ….And, the longer you wait, the smaller inventory you will have to choose from.
Call us at 598-3200 or 800 677-6683(MOVE)

INVESTORS, TAKE NOTE !!! THE NEW TAX ON SOME INVESTMENT INCOME BEGINS JANUARY 1, 2013

We received a lot of response from our readers about our article in our last Weekly Update concerning the new tax on some investment income. Apparently, this new tax did not receive much publicity in the general media and it took some investors by surprise. So, in case you missed the article, we are reprinting it here:

New tax legislation will affect some real estate income, beginning January 1, 2013. This new tax will affect some, but not all real estate transactions and holdings. Because this is a complicated tax, you should consult with your CPA about its possible effects upon you and your holdings.

Bottom line: If you are planning to sell any investment property, this new tax might affect your decision regarding the timing of the sale. NAR has developed a complete analysis of how the new law might affect you. To see a copy of this informative analysis, CLICK HERE

SALES AND LISTING STATISTICS

The most recent PPAR statistics regarding sales and listings in the Pikes Peak area will provide you with extensive data to assist you with your decision about buying or selling your home. We would be happy to discuss these statistics with you and to review the sales history of the neighborhoods that interests you.. Just call us at 598-3200 or 800 677-6683(MOVE)

Click here to see the most recent statistics.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200, or, 800 877-MOVE (6683).

JOKE OF THE WEEK

THE IMPORTANCE OF WALKING

Walking can add minutes to your life.
This enables you at 85 years old to spend an additional 5 months in a nursing home at $4,000 per month.

My grandpa started walking five miles a day when he was 60.
Now he's 97 years old and we have no idea where the hell he is.

I like long walks, especially when they are taken by people who annoy me.

The only reason I would take up walking is so that I could hear heavy breathing again.

I have to walk early in the morning, before my brain figures out what I'm doing...

I joined a health club last year, spent about 250 bucks. Haven't lost a pound.
Apparently you have to go there!

Every time I hear the dirty word 'exercise', I wash my mouth out with chocolate.

I do have flabby thighs, but fortunately my stomach covers them.

The advantage of exercising every day is so when you die, they'll say,
'Well, he looks good doesn’t he?'

If you are going to try cross-country skiing, start with a small country.

I know I got a lot of exercise the last few years,...... just getting over the hill.

We all get heavier as we get older, because there's a lot more information in our heads.
That's my story and I'm sticking to it.

AND

Every time I start thinking too much about how I look, I just find a bar with a Happy Hour ….
and by the time I leave, I look just fine.

You could run this over to your friends ….But just e-mail it to them …It will save you the walk!

Keep walking! And, have a good laugh

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

THE “QUE” SAYS COLORADO SPRINGS ECONOMY IS THE STRONGEST IN TWO YEARS

The College of Business of the University of Colorado at Colorado Springs has just released its quarterly Update and Estimates for our local economy. This quarterly report, commonly referred to as the “QUE”, has become the authoritative source for information about how our local economy is doing and where it is headed. The following comments about the recent QUE are extracted from the article in the Colorado Springs Business Journal, which reviewed the latest report.

Fred Crowley, chief economist for the Southern Colorado Economic Forum, says, “There are signs that people are ready to spend. The El Paso County economy showed its strongest growth in two years and it did so without artificial efforts like home-buying incentives programs or reinvestment job act money. This time, the economy showed improvement all on its own.”

The report shows strong increases in single-family home sales, car sales and wages. “All of these are really strong indicators”, emphasized Crowley.

“First and foremost, single-family home sales are up 30%. This is a huge number. Single-family permit activity was higher in 10 of the last 12 months and home prices are heading up, while foreclosures continue to head downward. These figures all indicate that the housing market is on its way to becoming stable. …something that did not exist in the last two years.” Crowley stated.

And, there’s good news for the city, too. .In December, sales tax revenues were up 7.1% from a year earlier, to a record $13.4 million. Overall, sales tax collections for the year were up almost 4%.

Crowley summarized, “The local economy is much stronger than I thought it would be. Overall, the news is very positive”.

It looks like our local economy is headed back up….That’s great news !!!

If you would like to see the complete quarterly report (The Que), CLICK HERE.

COLORADO SPRINGS NAMED IN TOP TEN FOR DATA CENTER RELOCATION

The Boyd Company, a New Jersey-based firm that’s established itself as an industry authority for corporate relocations and expansion, places Colorado Springs in the top 10 cities for data security – an industry that’s booming thanks to new banking rules, a digitized health-care industry and high-profile cases of hackers who steal information.

“Colorado Springs has a number of the qualities that match what data companies are looking for, including low operating costs, a strong telecommunications infrastructure and a well-trained workforce” said John Boyd, the firm’s principal.

“The geographical location of Colorado Springs keeps it safe from natural disasters such as earthquakes and hurricanes and data centers would be a good financial partner for the Springs”, Boyd said “because they bring in millions in construction work, offer jobs that pay about $80,000 a year and contribute to the tax base”.

“The government is going to want to get out of the high-cost areas like Washington D.C., New York City and the Bay Area and head inland in favor of more affordable land and operations costs”, Boyd Said.

As for location, Boyd noted, “Colorado Springs is 52% more likely to attract data centers than any other city. And companies looking to build data centers may look favorably because of the number of data centers that already are located here. (Federal Express, Hewlett-Packard, Quantum, Wal-Mart, etc.).”

“We do have quite a few data center projects in the pipeline and, in our judgment, over the course of the next year or so, you will see expansion happening here”, Boyd concluded.

That’s great news for our area.

IS THE NATIONAL ECONOMY RISING? THE STOCK MARKET SAYS, “YES”

On Friday, Feb. 17, 2012, the Wall Street Journal featured an article titled, “Dow Ends Near 4-Year High”. The WSJ credited the rise to signs of an accelerating economic recovery and glimmers of hope on the Greek debt crisis.

If traditional wisdom is correct, the stock market usually indicates what the state of the economy will be for the next 2 quarters. If that’s correct, we can expect the national economy to rise through September of 2012.

That’s good news for the nation and it coincides with the predictions about our local economy that were published in the most recent quarterly report from the UCCS College of Business, (See Above)

HOUSING AFFORDABILITY REACHES NEW RECORD HIGH

Housing affordability rose to a record high during the fourth quarter of 2011, which means that a home buyer’s purchasing power is greater than it has ever been before, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.

The Index showed that 75.9% of all new and existing homes sold in the fourth quarter were affordable to families earning the national median income of $64,200. This marks the highest percentage recorded in the index’s 20-year history.

Considering today’s low prices, low mortgage-interest rates and high inventories of available homes, it’s obvious that now is the time to buy your new home, or to acquire that rental property.

Call us at 598-3200, or, 800-677-6683, to discuss this opportunity.

INVESTORS, TAKE NOTE !!! NEW TAX ON SOME INVESTMENT INCOME BEGINS JANUARY 1, 2013

New tax legislation will affect some real estate income, beginning January 1, 2013. This new tax will affect some, but not all real estate transactions and holdings. Because this is a complicated tax, you should consult with your CPA about its possible effects upon you and your holdings.

Bottom line: If you are planning to sell any investment property, this new tax might affect your decision regarding the timing of the sale. NAR has developed a complete analysis of how the new law might affect you. To see a copy of this informative analysis, CLICK HERE.

WHEN THE BOOMERS BAIL – A COMMUNITY ECONOMIC SURVIVAL GUIDE –

The Senior Resource Council, the Greater Colorado Springs Chamber of Commerce and the EDC are combining to present this month’s Business of Aging Summihas t luncheon. The featured speaker will be Mark Lautman, an economics expert and author of “When the Boomers Bail”, a book which addresses the issue of what communities can do to attract and keep entrepreneurs and young professionals.

Lautman’s approach to the problem of attracting and retaining workers in a labor-starved market is to analyse exit interviews, and then figure out “What things can be fixed and what”.

The luncheon will be held at the Crowne Plaza Hotel, 2886 S. Circle Drive on February 23, 2012.

To register, go to www.coloradospringschamber.org and click on Calendar of Events.

SALES AND LISTING STATISTICS

Click here to see the latest PPAR statistics regarding area sales and listings And be sure to give us a call, if you have any questions, or would like to discuss these statistics in more detail.

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

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

* The problem with political jokes is they get elected. ~Henry Cate, VII

* We hang the petty thieves and appoint the great ones to public office. ~Aesop

* If we got one-tenth of what was promised to us in these speeches, there wouldn't be any inducement to go to heaven. ~Will Rogers

* Those who are too smart to engage in politics are punished by being governed by those who are dumber. ~Plato

* Politicians are the same all over. They promise to build a bridge even where there is no river. ~Nikita Khrushchev

* When I was a boy I was told that anybody could become President; I'm beginning to believe it. ~Clarence Darrow

* Why pay money to have your family tree traced; go into politics and your opponents will do it for you. ~Author Unknown

* If God wanted us to vote, he would have given us candidates. ~Jay Leno

* Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel. ~John Quinton

* Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

* The Democrats are the party that says government will make you smarter, taller, and remove the crabgrass on your lawn, fix all your problems, just give us your money. The Republicans are the party that says government doesn't work and then they get elected and prove it. ~P. J. O'Rourke

* I offer my opponents a bargain: If they will stop telling lies about us, I will stop telling the truth about them. ~Adlai Stevenson, campaign speech, 1952

* A politician is a fellow who will lay down your life for his country. ~Texas Guinan

* Any American who is prepared to run for president should automatically, by definition, be disqualified from ever doing so. ~Gore Vidal

* I have come to the conclusion that politics is too serious a matter to be left to the politicians. ~Charles de Gaulle

* Instead of giving a politician the keys to the city, it might be better to change the locks. ~Doug Larson

* There ought to be one day - just one - when there is open season on senators. ~Will Rogers

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

NOTABLE QUOTE OF THE WEEK:

“Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.”
Jack Welch

JOB MARKET GETTING BETTER? WSJ SAYS IT IS ….IF YOU HAVE SOMETHING TO SELL

The Wall Street Journal (Friday, Feb. 10, 2012) featured an article titled, “Job-Market Bellweather Strengthens”, in which the author points out that “The number of people applying for benefits each week has fallen steadily in recent months and is now down to levels not seen since the early months of the recession, a sign that hiring has accelerated. If claims stay where they are, there is no reason to think the trend of 200,000-plus monthly growth (in jobs) can’t continue” says the author.

In a related article, the Gazette (Wednesday, Feb. 8, 2012) points out that job openings approached a 3-year high in December, as Companies and governments posted 3.38 million job openings. That’s up from the 3.12 million advertised in November and nearly matches the three-year high reached in September. December job openings in the private sector reached the highest point in almost 3 ½ years, according to the Labor Department.

It is worthwhile to note, however, that the jobs that are available are for people with marketable skills. They include everything from doctors and electronic technicians to diesel mechanics. The outlook for graduates with degrees in English, Political Science and Interpretive Dance doesn’t look very promising.

Bottom line: If you have a child just graduating from high school. It might be a good idea to offer him/her a deal. You’ll put them through college, if they agree to graduate from a diesel mechanics’ school first.

WHAT DO THE RECENT FIGURES ON MEDIAN HOME PRICES TELL US?

On Thursday, Feb. 9, 2012, the National Association of Realtors released the data on Median Sales Prices of existing single-family homes for 149 of the major US metropolitan areas in 2011. As we study these statistics, it is obvious that the national, median price for homes is stabilizing. Many of the metropolitan areas that showed the biggest dip in home values during the recession are coming back, and actually showed a dramatic rise in value in 2011.

Communities like Fort Myers, FL (up 25.58%) and Detroit Michigan (up 9.83%) which were hard-hit by the recession are showing healthy increases in home values. Nationally, although home prices continued to drop during 2011 (-4.2%), the pace of decline has slowed and, in many places, has started to rise from the ashes (although Phoenix still showed a 10.2% drop).

Colorado Springs, because we did not suffer the disastrous decline in home prices that many other communities experienced during the recession, did not have as deep a hole to climb out of, so our median prices tended to follow the national trend more closely (-6.5%), however, there are strong indications that 2012 will see our local home-prices stabilize and begin to grow again.

Housing inventories are shrinking, mortgage rates are historically low, housing affordability is at record highs and the job market is slowly improving.

Existing-home sales have been edging up in recent months, and for-sale housing inventories were at nearly 2.4 million units in December, reaching its lowest point since 2005, according to NAR.

The National Association of Home Builders is also predicting an improvement this spring. They predict an increase in building of 18%, after facing their lowest growth on record in 2011.

However, the threats to housing recovery still loom. Strict mortgage lending is keeping some buyers on the sidelines and foreclosures continue to put downward pressure on home prices in many markets.

Celia Chen, senior housing economist with Moody’s Analytics, predicts that “Ultimately, by the end of this year, we should see the housing market on a more solid footing”

That sounds good to us !!!!

THE FED CALLS FOR NEW POLICIES TO HELP HOUSING ….LIKE THE RECENT FORECLOSURE DEAL

The Wall Street Journal (Friday, Feb. 10, 2012) quotes Federal Reserve Chairman Ben Bernanke as calling for new policies to help the nation’s housing market, saying it was an impediment to economic recovery.

“We need to continue to develop and implement policies that will help the housing sector get back on its feet” he said.

Mr. Bernanke’s remarks were made in a speech to the National Association of Homebuilders and came a day after the announcement by government officials of a $26 billion settlement over alleged foreclosure abuses that will, in part, offer reductions in loan principal to some homeowners.

Under the terms of this settlement, Colorado will receive $204.6 million worth of relief for homeowners. That includes $73.3 that will be available to grant principal reductions on loans to make mortgage modification possible.

“This settlement will not solve every problem with the housing market, but it goes a long way to helping homeowners in distress now and leveling the playing field for consumers”, said Colorado Attorney General John Suthers.

Meanwhile, Mr. Bernanke said the central bank was “intensely focused” on improving credit conditions.

Bottom Line: We urge our readers to advise any of their friends, relatives and neighbors who might have had any foreclosure concerns to contact their lender to see if this settlement could help them.

INVESTORS, TAKE NOTE !!! RENTS ARE PREDICTED TO CONTINUE TO RISE

The Gazette (Thursday, Feb. 9, 2012) tells us that rents at Colorado Springs apartments hovered near a record-high in late 2011 …part of a two-year climb in renter costs that’s expected to continue to rise as demand for multifamily properties remains strong, industry experts say.

Colorado Springs’ monthly rents averaged $775.44 in the fourth quarter of 2011, about $37 more than the same period in 2010, according to a report released Wednesday by the Colorado Division of Housing and the Apartment Association of Southern Colorado. It was the eighth consecutive year-over-year quarterly increase in rents, the report showed.

Rents are up because demand is on the rise. This is a result of thousands of homeowners who have lost their homes to foreclosure and other prospective homeowners who can’t qualify for a mortgage because of tougher borrowing requirements by lenders.

This higher demand for rentals has also resulted in triggering construction of several apartment projects in Colorado Springs, Fountain and Monument.

The bottom line for our readers is that you should consider investing in rental property. Realtor Magazine, in their Jan/Feb. issue, lists rental properties as one of the strongest areas for growth in 2012. The return on investment from your rental property could easily outmatch the income you are now realizing from any of your other investments.

Call us at 598-3200,or, 800 877-MOVE (6683) to discuss this.

SALES AND LISTING STATISTICS
 

CLICK HERE to see the latest Sales and listing statistics for the Pikes Peak area.

And be sure to give us a call, if you have any questions, or would like to discuss these statistics in more detail. Call us at 598-3200, or, 800 677-6683.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

I don’t get to travel much !!

I've never been in Cahoots. Apparently, you can't go alone. You have to be in Cahoots with someone.

I've also never been in Cognito. I hear no one recognizes you there.

I have, however, been in Sane. They don't have an airport; you have to be driven there. I have made several trips there, thanks to my friends, family and work. I live close so it's a short drive.

I would like to go to Conclusions, but you have to jump, and I'm not too much on physical activity anymore.

I have, however, been in Doubt. That is a sad place to go, and I try not to visit there too often.

I've been in Flexible, but only when it was very important to stand firm.

Sometimes I'm in Capable, and I go there more often as I'm getting older.

One of my favorite places to be is in Suspense! It really gets the adrenalin flowing and pumps up the old heart! At my age I need all the stimuli I can get!

And, sometimes I think I am in Vincible but life shows me I am not.

People keep telling me I'm in Denial but I'm positive I've never been there before!

I have been in Trouble many times; the older I get, the easier it is to get there and my honey arranges many of those trips, it seems. I actually kind of enjoy it there.

So far, I haven't been in Continent; but my travel agent says I'll be going soon.

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

21st ANNUAL IREM BREAKFAST PRESENTS ROSY ECONOMIC FORECAST

On Thursday, Feb. 2, 2012, along with about 275 other attendees, we attended the Institute of Real Estate Management’s 21st Annual Breakfast at the Doubletree Hotel. The meeting featured speakers from the real estate profession and from the City of Colorado Springs’ Economic Vitality Division.

Their annual forecast included overviews of all aspects of the real estate market ….Multi-family, residential, commercial, etc. The consensus of the speakers was that our local real estate picture is improving, with some segments growing faster than others, and we were especially pleased to hear their optimistic view of our local residential real estate market.

Some of the factors that were noted as boosting our local residential real estate market were:

• Inventory of homes is down (3,157- the lowest total for any month since 3,116 listings in Feb. 2002)
• Foreclosures are down
• Short sales are down
• Interest rates are down
• Unemployment is down
• Troop levels at Ft. Carson are growing
• Consumer confidence is growing

As for rentals, rental occupancy is currently at 94% and pressure increases daily for higher rents. Since 2006, monthly rental prices have risen steadily, from $909 in 2006 to $1163 in 2011. The average lease price (rent) is up 18%. These factors all lead the experts to say, “Buy rentals now and hold them as they increase in value”.

In our current market, the strategy that many experts are recommending for investment buyers is based upon the fact that single-family home prices went up 12.6% in the second half of 2011, while prices for condos and townhouses during that same period have not yet started to rise, but appear to have bottomed-out.

If we had to boil all of the presentations down to a single strategy for our readers, it would be to give serious consideration to:

• Upgrading to a better home, without significantly increasing your monthly payment. (If you can afford a $1000 mortgage payment monthly for 30 years, the current low prices and low mortgage rates would enable you to buy a $250,000 home right now) ……. and,
• Retain your current home as an investment property, rather than selling it ……..Or, at least
• Refinance right now, to take advantage of the current, record-low mortgage rates.
• Keep in mind that, if you wait too long to buy, hoping that prices will go down, you might wind up spending a little less for your house, but a lot more for your mortgage.

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

BUILDING PERMITS UP IN 2012 AND LOCAL UNEMPLOYMENT RATE STAYS AT 9%

The Pikes Peak Regional Building Department reports a January 3.7% gain in single-family building permits over January of 2011. John Cassiani, board president of the Housing and Building Association of Colorado Springs, stated, “The economy is getting better. You’ve got a lower unemployment rate in Colorado and in Colorado Springs, and I just think all the signs out there seem to be positive in terms of getting the housing industry back in the right direction.”

In a related story, the U.S. Bureau of Labor Statistics reports that the latest 9% unemployment rate in November and December remains the lowest in more than two year and is down sharply from a record 10% last February.

FEWER FORECLOSURES LOCALLY IN JANUARY

Fewer homeowners fell into foreclosure in January in the Colorado Springs area, which continued a trend of reduced foreclosure activity during 2011, according to Tom Mowle, head of the El Paso County Public Trustee’s Office.

Mr. Mowle stated, “The people who have taken out loans the last four to five years will be less likely to find themselves in default and the people who took out the creative loans six to eight years ago have either been renegotiated with lenders or fallen into foreclosure”

Foreclosure sales in El Paso County totaled 2,060 last year, down 21.7% from 2010.

SPRINGS COST OF LIVING STILL BELOW U.S. AVERAGE

Living costs in Colorado Springs were 6.8% below the national average during 2011, according to a survey by the Council for Community and Economic Research.

“The cost of living here remains well below the national average, which has always been a strength for Colorado Springs”, said Tom Binnings, a senior partner with Summit Economics, a local economic research and consulting firm.

Local utilities costs still remain 9.4% below the national average, while our overall energy costs are the lowest in the state. Dave Grossman, a spokesman for Colorado Springs Utilities stated, “the average monthly residential electric bill rose last year to $65.77, while the average natural gas bill fell 2.3% to $48.28.

Local costs for housing and transportation also moved further below the national average.

HERE’S SOME MORE LOCAL GOOD NEWS

According to the Gazette, in Colorado Springs in January:

• Initial claims for unemployment were down 3.7%
• The unemployment rate was down to 9%
• New auto and truck registrations were up 35.2%
• Foreclosure filings were down 16.4%

DID YOU KNOW THAT JANUARY IS THE BEST MONTH TO BUY A HOME?

In reviewing the sales statistics for the past 20 years, we notice that January is the slowest sales month in every year. In every January there are fewer sales and the average selling price is at its lowest level for the year. This January, for example, sales totaled 474, which was 3% more than last January. The median price was $172,250. There were 3157 listings available (which is 27% fewer than last year [4326] and represents the lowest number of available homes since February of 2002. 86% of all sales in January were below $299,999.

After January, both sales and prices start to go up, so call us to take advantage of the lowest prices you will see in 2012.

SALES AND LISTING STATISTICS

CLICK HERE to see the latest Sales and listing statistics for the Pikes Peak area.

And be sure to give us a call, if you have any questions, or would like to discuss these statistics in more detail.

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

THINKING OF BUYING A FORECLOSURE? BE SURE TO ASK THESE 4 QUESTIONS
Daily Real Estate News | Tuesday, January 31, 2012

Foreclosures can offer big bargains, but buyers need to be careful that they don’t get over their heads in purchasing a home that may need more repairs than they bargained for.

Foreclosures are usually sold as-is, and homes that are left vacant standing too long can have a lot of maintenance problems.

Real estate experts suggest buyers consider the following questions:

1. How long has the home been vacant? Be cautious of a foreclosed home that has stood vacant for more than a few weeks or had its utilities shut off a long time. Marvin Goldstein, a home inspector for many foreclosed properties, says a home can deteriorate quickly when heating, cooling, electricity, and running water have been turned off for a while.
2. How old is the home? Goldstein says that homes that are more than 50 years old may have a failing plumbing system or inadequate electrical wiring.
3. How does the home look? Are there broken windows, gutters hanging down, or damaged siding? “Trust your instincts. If the house looks bad from the outside, it's probably worse than you think,” Goldstein said.
4. Is there anything missing? Sometimes former owners remove anything of value from the home, such as built-in light fixtures, bathroom tile, water heaters, air-conditioning units, and hardwoods, says Bill Jacques, president-elect of the American Society of Home Inspectors.

Housing experts encourage buyers to get a home inspector to look at the property, even if it is sold as-is, so that home buyers know any repairs needed and cost estimates before they purchase the home.

“Buying a bank-owned home gives you the opportunity to enter the market at a very low price level,” says Dorcas Helfant, a past president of the National Association of REALTORS®. “You can find terrific values among foreclosures, especially if they're not in too bad shape. But, remember, these houses are discounted for a reason.”

Editor’s note: We totally agree with the 4 points made in the article and, for many years, we have consistently worked with our clients to address these problem areas. We also suggest that you call us, if you are considering buying a foreclosed home. We have access to a lot of information that does not appear in the listing and would be happy to share it with you.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

WANT TO KNOW SOMETHING THAT YOU DIDN’T KNOW BEFORE?

"Stewardesses" is the longest word typed with only the left hand
And "lollipop"is the longest word typed with your right hand.
No word in the English language rhymes with month, orange, silver, or purple.
"Dreamt" is the only English word that ends in the letters "mt".
Our eyes are always the same size from birth, but our nose and ears never stop growing.
The sentence: "The quick brown fox jumps over the lazy dog" uses every letter of the alphabet.
The words 'racecar,' 'kayak' , and 'level' are the same whether they are read left to right or right to left (palindromes).
There are only four words in the English language which end in "dous": tremendous, horrendous, stupendous, and hazardous
There are two words in the English language that have all five vowels in order: "abstemious" and "facetious."
TYPEWRITER is the longest word that can be made using the letters only on one row of the keyboard.
A cat has 32 muscles in each ear.
A goldfish has a memory span of three seconds.
A "jiffy" is an actual unit of time for 1/100th of a second.
A shark is the only fish that can blink with both eyes.
Almonds are a member of the peach family.
An ostrich's eye is bigger than its brain. (I know some people like that also)
Babies are born without kneecaps. They don't appear until the child reaches 2 to 6 years of age.
February 1865 is the only month in recorded history not to have a full moon.
In the last 4,000 years, no new animals have been domesticated.
If the population of China walked past you, 8 abreast, the line would never end because of the rate of reproduction.
Leonardo Da Vinci invented the scissors.
Peanuts are one of the ingredients of dynamite!
Rubber bands last longer when refrigerated.
The average person's left hand does 56% of the typing.
The cruise liner, QE 2 moves only six inches for each gallon of diesel that it burns.
The microwave was invented after a researcher walked by a radar tube and a chocolate bar melted in his pocket.
The winter of 1932 was so cold that Niagara Falls froze completely solid.
There are more chickens than people in the world.
Winston Churchill was born in a ladies' room during a dance.
Women blink nearly twice as much as men.
All the ants in Africa weigh more than ALL the Elephants!!

Now you know (a little) more than you did before!!

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

WHAT CAN WE DO FOR YOU THAT THE INTERNET CAN’T?

Many people who are looking for a home today are accustomed to finding everything they need on the Internet. Admittedly, the Internet is a fantastic tool for finding everything from a receipe for brownies to a picture of your long-lost uncle. It can help you sell your car and buy a new one.

But, when it comes to Real Estate, although the Internet can show you listings for the 3225 homes that are for sale in the Pikes Peak area, it cannot tell you about one of the most important factors that should influence your decision to buy, namely the neighborhood.

What kind of ‘neighborhood’ information are we talking about? Well, you should know about the current sales in the neighborhood you are looking at. How well have sales prices held up compared with adjacent neighborhoods? Do the homeowners tend to move in and out frequently, or, are they long-term neighbors? Have prices tended to go down or up in recent years? Are most of the people in this neighborhood retired or young families with lots of small children?
How about the schools …Are they good or not-so-good?

This is the kind of information that could determine whether you will be happy or not in your new home. And it’s the kind of information that you can’t get from the Internet. In fact, you can’t get it from a Realtor who hasn’t been around for a while.

That’s where we can be of assistance to you. We have been active in every neighborhood in the Pikes Peak area for 40 years and are familiar with the ‘personality’ of ever neighborhood in the area. We can show you the market-value trends within each neighborhood and the pros and cons of the various locations within the area. In Real Estate, there is no substitute for experience …and that’s where we shine.

Give us a call at 598-3200 or 800 677-6683, to discuss your needs. You can’t get this kind of help from the Internet !!

EXISTING-HOME SALES SHOW UPTREND IN DECEMBER

Existing-home sales continued on an upward trend in December, rising for three consecutive months and remaining above a year ago, according to the National Association of Realtors.

The latest data show home sales rose 5% in December, prompting Lawrence Yun, NAR chief economist to state, “The pattern of home sales in recent months demonstrates a market in recovery. Record-low mortgage interest rates, job-growth and bargain home prices are giving more consumers the confidence they need to enter the market”.

For all of 2011, existing-home sales rose 1.7% to 4.26 million from 4.19 million in 2010.

NAR President, Moe Veissi states, “The American Dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves”.

Can we have an “Amen” to that ??

TWO MAJOR BANKS SLASH FORECLOSURE SALE TIMELINES

JPMorgan Chase and Wells Fargo trimmed their foreclosure timelines by as much as 100 days in the third quarter of 2012, helping to work though the major backlog of foreclosed homes, according to Moody’s Investor Service. This streamlining of the foreclosure process will come as welcome news to many prospective homebuyers who have been discouraged by the excessive time involved in obtaining bank approval for offers on homes in foreclosure. However, the foreclosure process can still take longer than many homebuyers are willing or able to accept.

We encourage prospective Buyers to contact us about any foreclosed properties they might be considering. In many cases we will be able to work with the lender to speed up the process, or, we might be able to find comparable homes that are not encumbered by the lengthy foreclosure process.

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

HOUSING INVENTORY DOWN 22% FROM YEAR-AGO LEVELS

Realtor.com (Jan. 25, 2012) announced that the national inventory of for-sale single-family homes, condominiums, townhouses and co-ops dropped by 22.29% over the last year.

They also note that median list prices, which have remained essentially unchanged since June, are up by 5.03% nationally, on a year-to-year basis.

Each of these developments can be viewed as “a positive sign that the housing market is holding its own at the national level”, according to Realtor.com.

We should also point out that, as inventory shrinks, prices tend to rise (The old law of ‘supply and demand’), so, call us to get started on the search for your new home, before prices get any higher.

SOME MORE EXAMPLES OF THE POSITIVE TRENDS IN THE ECONOMY

• COLORADO’S UNEMPLOYMENT RATE DIPPED TO 7.9% IN DECEMBER, down one-tenth of a percentage point from the month before and a full point from the 8.9% in December 2010.
• FOURTH QUARTER U.S. GROWTH RATE OF 2.8% IS FASTEST IN 18 MONTHS, according to the Wall Street Journal. (Jan 28-29, 2012)
• DISPOSABLE INCOME ROSE FOR THE FIRST TIME SINCE EARLY 2011. (WSJ Sunday Jan. 28-29, 2012)
• CONSUMER SPENDING PICKED UP 2% IN THE FOURTH QUARTER. This compares with a 1.7% rise in the third quarter. Consumer spending represents about 2/3 of demand in the economy.(WSJ)
• Investment in residential and commercial real estate, equipment and software and inventories was up 20% in the fourth quarter (WSJ, Jan. 28-29, 2012)
• EXPORTS OF GOODS AND SERVICES WERE UP 4.7% IN THE FOURTH QUARTER (WSJ)
• IMPORTS OF GOODS AND SERVICES WERE UP 4.4% IN THE FOURTH QUARTER (WSJ)
• HOUSEHOLD SECTOR SPENDING ON GOODS AND SERVICES WAS UP 2% FROM THE THIRD QUARTER (WSJ)
• BUSINESSES INVESTING MORE AND LAYING OFF FEWER WORKERS (The Gazette Friday, Jan. 27, 2012) “Government figures released Thursday show that business are spending more on new equipment, inventory and capital investments", said Carl Riccadonna, an economist at Deutsche Bank. “The economy is growing and industrial capacity has not kept up”,
• HOMEOWNERS ARE SPENDING MORE MONEY ON FIXING UP THEIR HOMES. For example, Home Depot shares are up 58% since August. This matches their earnings multiple of January 2005, when the housing bubble was in full swing.

In the three months ended in November, home-improvement spending was 4.3% higher than a year before, according to the Census Department.

MORTGAGE INTEREST RATES NOT SCHEDULED TO RISE UNTIL LATE 2014… AT THE EARLIEST

(Wall Street Journal, Thursday, Jan. 26, 2012) Federal Reserve officials said they expect to keep short-term interest rates near zero for almost three more years. That’s good news for both Buyers and Sellers of real estate.

The Fed also announced they might take more action to support the economy, if inflation stays under control and if recovery slows. A bond-buying program to push down long-term interest rates could be the next step.

However, keep in mind that, although mortgage interest rates are staying low, other charges and fees could increase the cost of buying a home, so, don’t delay your decision to get into that new home.

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

NAR SURVEY LOOKS AT FIRST-TIME BUYERS

The National Association of Realtors has issued its 2011 Profile of Home Buyers and Sellers. Their survey of First-Time Buyers shows some interesting facts about those entering the real estate market for the first time. When compared to all Buyers, First-time Buyers tend to:

• Focus more on the monthly mortgage payment
• Focus more on convenience to friends and family
• Focus more on proximity to entertainment and leisure activities
• Rate energy-efficiency high on their list, but are not willing to spend an extra $20,000 just to get solar panels
• Be more willing to compromise on space. They will accept a smaller laundry room, without an attached mud room, a smaller master bedroom and a smaller walk-in closet. ….The median-size of first time buyers’ homes is 1,570 sq.ft.

But the one thing First-Time Buyers aren’t willing to compromise on …Buying a home that needs a lot of repairs.

First-timers don’t have any experience with home maintenance and tend to be afraid of renovations, so,… Sellers take note …Be sure to fix everything you can and make minor home improvements, if you want to appeal to First-Time Buyers.

ARE YOU RENTING? …MAYBE YOU SHOULD THINK ABOUT BUYING !!

RealtorMag points out that the U.S. average for asking rents in 2011 came in at $1.061 per month.

If you are renting, and paying anything near that figure, you should give us a call to discuss buying a home. There are great homes out there that you could be living in and be paying less per month …and getting a break on your income taxes as well.

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

SALES AND LISTING STATISTICS

CLICK HERE to see the latest sales and listing statistics for the Pikes Peak are, issued by the Pikes Peak Association of Realtors and be sure to call us, if you have any questions about the data.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

Bob was in trouble. He forgot his wedding anniversary. His wife was
really pissed.

She told him "Tomorrow morning, I expect to find a gift in the
driveway that goes from 0 to 200 in 6 seconds AND IT BETTER BE THERE !!"

The next morning he got up early and left for work. When his wife woke
up, she looked out the window and sure enough there was a box
gift-wrapped in the middle of the driveway.

Confused, the wife put on her robe and ran out to the driveway, brought
the box back in the house.

She opened it and found a brand new bathroom scale.

Bob has been missing since Friday.

January 23, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

SOUTHERN COLORADO ECONOMIC FORUM PREDICTS GROWTH IN 2012

Last Thursday, we had the opportunity to attend the economic forecast breakfast of the SCEF, at the Cheyenne Mountain Resort. The event was sponsored by VectraBank. About 240 people attended the meeting which featured presentations by Ted Mossman, Pikes Peak Market President of VectraBank Colorado, Dr. Thomas Zwirlein, Professor of Finance at UCCS, and George Feiger, President and CEO of Contango Capital Advisors.

The SCEF is forecasting a 2-3% growth for our region in 2012, primarily as a result of the troops returning to our area from Afghanistan.

Dr. Zwirlein stated he was a little more optimistic than he was last fall, when the forum released its forecast for the year.
“National employment figures are improving, industrial production is looking better and the number of housing permits is getting back to a more normal level”.

By the end of the year, Colorado metro areas are expected to have recovered 48% of the jobs lost since the peak, on par with the recovery rate for all U.S. metro areas.

El Paso County is projected to create 23,000 jobs by 2019. Meanwhile, the population is expected to increase by 100,000. “We need 43,000 jobs to keep unemployment at its current level.” Dr. Zwirlein said. “We need 58,000 jobs to get it back to 5% unemployment.

The attendees at the forum seemed upbeat about the coming year, but agreed that our major problem will be creating more jobs.

AN OVERVIEW OF REAL ESTATE MEDIA SHOWS THAT BETTER TIMES ARE NOW HERE

As we read the various resources for Real Estate news and information, it is obvious that the mood of the “experts” is upbeat. As evidence of this optimistic view of the Real Estate market, we offer these examples of recent news items:

• DECEMBER EXISTING-HOME SALES SHOW UPTREND (Realtor Magazine) ”Record-low mortgage rates, job growth and bargain home prices are giving consumers the confidence they need to enter the market. These are the early signs of what may be a sustained recovery.” (Lawrence Yun, chief economist for the National Association Of Realtors)

For all of 2011, existing-home sales rose 1.7% to 4.26 million from 4.19 million in 2010, and are expected to increase 12% this year, following a 2% jump last year, according to Moody’s Analytics.

Single-family home sales increased 4.6% to an annual rate of 4.11 million in December, up from 3.93 million in November, and are 4.3% higher than the 3.94 million-unit pace a year ago.

NAR President Moe Veissisaid is quoted as saying, “More Buyers are expected to take advantage of market conditions this year. The American dream of homeownership is alive and well. We have a large, pent-up demand, and household formation is likely to return to normal, as the job market steadily improves. When people buy homes, they stimulate a lot of related goods and services”.

• BUILDERS FEEL THE MOST UPBEAT IN MORE THAN 4 YEARS (Realtor Magazine) Builder confidence is at its highest level since June 2007. For the fourth consecutive month, builder sentiment for newly-built, single-family homes was on the rise, according to the National Association of Home Builders and Wells Fargo Housing Market Index.

USA Today is quoted as saying, “Investors are starting to get optimistic about the possibility of a rebound too, and are turning to homebuilding stocks. These equities have recently outperformed the broader stock market, and the S&P 1500 homebuilding index has increased 38% since mid-October”.

• 2012 IS THE YEAR OF THE POLITICAL ECONOMY (RISMedia) “Consumers seem to have gotten out of their summer rut due in large part to improving labor market conditions and improving attitudes toward employment prospects and future income. As consumer sentiment shows signs of improvement, so do recent housing indicators, which are trending in a positive direction, with incremental improvement expected to continue through 2012.”

• HOT RENTAL MARKET OFFERS REAL ESTATE OPPORTUNITY (INMAN NEWS) The Rental market has gotten hotter. Phillip Lee, co-founder and CEO of RentMatch is quoted as saying, “Buying a house has always been the American dream, but rentals are the American reality, right now. Economic uncertainty, credit histories marred by foreclosures and short sales, and strict lending standards have helped keep many potential Homebuyers off the market, contributing to a rental boom”.

This is good news for Investors, however, keep in mind that, because of low home prices and record-low mortgage rates, housing affordability is now at a 40-year high. So, because rents are rising and house payments are falling, it’s getting to the point where it makes more sense for people to buy. (Ed. Note. Give us a call at 598-3200, or 800-677-6683(MOVE), to explore your options. Now might be the right time for you to make that decision to buy).

• CORELOGIC SAYS HOUSING MAY TURN THE CORNER IN 2012 (DSNEWS) Mark Fleming, CoreLogic’s chief economist, says housing statistics and the duration of the downturn indicate 2012 may be the year the housing market begins to turn the corner.

“The time is right in 2012 for prices to begin growing again”, Fleming said, “and housing affordability will put a floor under any further significant declines”.

• FREDDIE MAC APPROACHES 2012 WITH ‘CAUTIOUS OPTIMISM’ (DSNEWS) Frank Nothaft, chief economist for Freddie Mac, says Freddie Mac expects a 2%-5% increase in home sales in 2012, according to the GSE’s U.S. Economic and Housing Market Outlook for January. He states, “Housing is starting to raise hopes for continued gradual economic recovery”.

Citing a survey from the Mortgage Bankers Association, Mr. Nothaft points out that, “Almost 80% of households say now is a good time to purchase a home”.

• SALES STIR HOPE FOR HOUSING MARKET (The Wall Street Journal Jan. 21, 2012) The article points out that the increase in sales in 2011 was the result of low mortgage-interest rates, low prices, active Investor-Buyers and increasing consumer confidence. As a result, the supply of homes listed for sale is at the lowest level since 2006 and offers a glimmer of hope that the housing market could be starting to climb out of the downturn. ..(Ed. Note: That’s certainly the situation in Colorado Springs. Surveys show that we are better off than most other major metropolitan areas in the U.S and are more likely to see a quicker recovery.).

SO, WHAT DOES OUR LOCAL SURVEY TELL US?

Now, all of the above-referenced sources have been fairly accurate in the past in identifying trends in housing, but we have an even better measure of the condition of the local housing market, namely, the annual, official- but-unscientific, Harry Salzman Survey of Home Improvement Stores. We take this survey by asking the Managers of our local Lowe’s, Home Depot and Ace Hardware outlets a simple question……We ask them, “How’s business?”

Last week, as we conducted this survey, the answers of all of these Managers were unanimous. “Business is booming”, they tell us.

“Homeowners are fixing up their homes like we haven’t seen in a long time. They seem to feel better about the future and they are now willing to put more money in their homes …either to get them ready to sell, or, just to enjoy their homes more”.

These comments reinforce the article in the Wall Street Journal (Friday, Jan. 20, 201) that declared, “HOMEOWNERS STOP WAITING TO SPRUCE UP”. The article points out that, “…Americans are stepping up spending on home improvements for the first time in years”.

The bottom line is that consumers seem to be more confident in the economy and are willing to start spending, again. That results in more local jobs and more tax revenues to pay for local government services.

2012 is beginning to look really good. It’s about time !!!!

LATEST STATISTICS

CLICK HERE to see the latest Sales and Listing statistics for the Pikes Peak area.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

LEXIPHILES WILL LOVE THESE

To write with a broken pencil is pointless.
When fish are in schools they sometimes take debate.
A thief who stole a calendar got twelve months.
When the smog lifts in Los Angeles , U.C.L.A.
The professor discovered that her theory of earthquakes was on shaky ground.
The batteries were given out free of charge.
A dentist and a manicurist married. They fought tooth and nail.
A will is a dead giveaway.
If you don't pay your exorcist you can get repossessed.
With her marriage, she got a new name and a dress.
Show me a piano falling down a mineshaft and I'll show you A-flat miner.
You are stuck with your debt if you can't budge it.
Local Area Network in Australia : The LAN down under.
A boiled egg is hard to beat.
When you've seen one shopping center you've seen a mall.
Police were called to a day care where a three-year-old was resisting a rest
Did you hear about the fellow whose whole left side was cut off? He's all right now
If you take a laptop computer for a run you could jog your memory.
A bicycle can't stand alone; it is two tired.
In a democracy it's your vote that counts; in feudalism, it's your Count that votes
When a clock is hungry it goes back four seconds
The guy who fell onto an upholstery machine was fully recovered.
He had a photographic memory which was never developed.
Those who get too big for their britches will be exposed in the end.
When she saw her first strands of gray hair, she thought she'd dye.
Acupuncture: a jab well done.

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

PPAR RELEASES YEAR-END REAL ESTATE STATISTICS

The Pikes Peak Association of Realtors has just released the 2011 Sales and Listing statistics for the Pikes Peak area. Here are some of the more significant statistics contained in this year-end PPAR report:

• The total number of single-family home sales in 2011 was up 3.3% over 2010 (8459 vs. 8185)
• The number of home sales in December of 2011 (651) were 3.5% higher than December of 2010
• 2011 was the sixth-straight year of year-over-year increases in sales
• The average sales price for a home in 2011 was 4.9% less than in 2010 ($217,829 vs. $229,152)
• Our “For Sale” inventory as of Dec.31, 2011 was 24.1% less than it was in 2010 (3285 vs. 4327)
• In December of 2011, the typical local home sold for 97.5% of the Sellers’s listing price.

One big reason for the reduction in inventory is probably that many Sellers have removed their homes from the market, either because they were not highly motivated to sell, or, because they were not willing to list their homes at a realistic price.

The current 2.5% difference between listing prices and sales prices indicates that today’s Sellers are being more realistic about their expectations. Because “All Real Estate Is Local” you would be wise to consult with a qualified Realtor who has experience in your specific neighborhood, before you list your home. We would be happy to assist you with that task.

If you would like to find out what a realistic selling price for your home would be in today’s market, just give us a call. We would be happy to discuss a realistic price for your current home, for your next home, or for an investment property. Call us at 598-3200, or, 800-677-6683 (MOVE). There are a lot of excellent deals out there right now.!!!

All-in-all, the year-end numbers give us reason to believe that 2012 will be a better year for Real Estate than 2011 was. The statistics and the experts agree that 2012 should show a modest rise in sales and prices (probably around .2% in 2012 and .3-.4% in 2013).

To see a complete copy of the PPAR Sales and Listing statistics for December, 2011, CLICK HERE

HOME AFFORDABILITY NOW AT 1971 LEVELS ….WOW!!!

Realtor Magazine (Jan. 11, 2012) tells us that, because of falling home prices and record-low mortgage rates, home affordability is at 1971 levels, according to the U.S. Department of Housing and Urban Development.

Home owners are bringing in nearly double the median income they need to cover the cost of an average home, HousingPredictor reports.

Bob Nielsen, chairman of the National Association of Home Builders, said, “With interest rate at historically low levels and markets across the country beginning to improve, home ownership is within the reach of more households”.

As a result of these factors, home sales have been ticking up, according to the National Association of Realtors.

Some of the other signs that things are getting better;

• Clear Capital says home prices in 2012 will go up slightly (0.2%). This will represent the first rise since 2006 and will put national home prices near levels not seen since 2001. Half of the 50 major metro markets included in the ClearCapital annual survey are expected to post gains for the year.
• Foreclosures across the U.S. decreased 34% in 2011, according to RisMedia. In fact, December activity hit a 49 month low, even though scheduled auctions were up in the fourth quarter.

And don’t forget, another positive factor to consider as you make your decision about buying that new home is the deductibility of your mortgage interest payments. As an example, if you are in a 28% tax bracket and your mortgage interest rate is 3.75%, your mortgage interest deduction would effectively reduce your mortgage-interest expense to 2.75% out of your pocket. That really makes home ownership a realistic possibility for many people.

Also, as you consider buying that new home, you might consider is a 15 year mortgage, rather than the traditional 30 year mortgage. Depending upon your circumstances, the 15 year mortgage can cut your mortgage interest rate even further. Here again, we will be happy to explain all of your options and the tax advantages that are available to you.

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

WHAT ARE SELLERS DOING TO MAKE THEIR HOMES MORE ‘BUYER FRIENDLY’ ?

Some of the ‘extras’ that Sellers are now using to ‘sweeten the deal’ are:

• Reducing prices
• Paying closing costs
• Making deferred repairs
• Buying home warranties
• Paying originations fees or points

Sellers are also using ‘staging’ to make their homes more appealing to prospective Buyers.

Give us a call to discuss how we might market your home to make it a more appealing prospect for Buyers.

CONSUMER CONFIDENCE IS RISING

Here are some interesting results from the recent Fannie Mae national housing survey :

• Most respondents believe home prices will edge up at least 0.8% in 2012.
• 40% expect their financial situations to improve in 2012
• More than 20% said their incomes are significantly higher than they were a year ago

Fannie Mae chief economist Doug Duncan summarized the survey results by saying, “There is marked improvement in consumer sentiment regarding the direction of the economy, personal finances and future home price expectations”.

Ironically, “This increase in optimistic Americans is tempered by overall consumer attitudes that remain at depressed levels with more than two-thirds of those interviewed saying the economy is heading down the wrong track”.

So, what’s the bottom line? You tell me!!!

MORTGAGE RATES STILL HOLDING, BUT WHAT HAPPENS IF FHA GETS IN TROUBLE?

Freddie Mac recently released the results of its Primary Mortgage Market Survey, showing mortgage rates easing to new all-time record lows. The average for the 30-year fixed mortgage rate has been below 4% for six consecutive weeks.

At the same time, the FHA’s cash reserves have shrunk and that agency may have to seek a capital infusion from the taxpayers, if the housing slump continues, according to Bloomberg BusinessWeek. (Jan. 15, 2012).

If the government does end up giving FHA additional funds, then we can expect mortgage rates to rise, which would negatively affect he entire housing market.

Bottom Line: If you are thinking of buying a home, you had better buy now, before rates start going up.

EL PASO COUNTY APPROVES PLAN TO EASE RESTRICTIONS ON BUSINESS

On Thursday, the Barriers to Business committee brought its first set of recommendations to the El Paso County commissioners, who unanimously approved them. The vote reduces the number of commercial and industrial zones in unincorporated areas of the county from five to three, and axes a five-year limit on special uses and variances.

The changes give businesses more opportunity to go into areas where they might not have been allowed before, and lessens the need for special hearings, application fees and a whole lot of forms.

Commission chair Amy Lathen said, “It’s more common sense and it eliminates time, paperwork and cost. It gives businesses more opportunity, but does it while preserving the master plan of the area”.

Bottom line: To us, it sounds like a step forward in attracting more businesses to our area. Good work, guys!!

NEW MERGED CHAMBER/EDC HOPES TO FOCUS ON EDUCATION

In a “State of Education” luncheon on Wednesday, Dave Csintyan, president and CEO of the Greater Colorado Springs Chamber of Commerce, said the business community needs to partner with public schools to ensure a well-trained future workforce. “Our newly merged organization has to be thematically relevant and part of that should be education” he stated.

Csintyan said he realized the importance of the business community’s input when he recently encountered a young store clerk who couldn’t figure out how to make change for an $18.16 purchase from a $20 bill.

Dr. Nicholas Gledich, Colorado Springs School District 11 superintendent, said he welcomes the business community involvement in the schools. The economic benefits to the business community of graduating 100% of the student body equal millions of dollars, he stated. In Colorado Springs, 2,000 students dropped out of the class of 2010, he said. If half of those graduated they would have contributed $11 million to the economy.

Sounds like all of us would benefit if the Chamber could help our school districts improve their graduation rates.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

"Do you believe in life after death?" the boss asked one of his employees.
"Yes, sir," the clerk replied.
"That's good," the boss said. "After you left early yesterday to go to your grandmother's funeral, she stopped in to see you."

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

HOW ABOUT THEM BRONCOS !!!! WHAT A WAY TO START THE YEAR !!!

WHAT'S GOING TO HAPPEN WITH REAL ESTATE IN COLORADO SPRINGS IN 2012?

Many of our friends and clients ask us for our prediction of where Real Estate is going this year. So, here's our take on what's going to happen.

First of all, Colorado Springs Real Estate has not felt the recession as badly as most other parts of the country. Add to that the fact that we are better poised for a recovery than most other cities. As we cited in previous issues, both Forbes and Kiplinger have listed Colorado Springs as one of the top ten places where recovery will be the fastest.

So, based upon the national picture, the local picture and my 39 years of experience in our local market, my opinion is that we should see a marked increase in home-values and home sales in 2012. As evidence that this increase will take place, just consider the following factors:

• Both National and local statistics indicate that we have reached bottom, where home-prices are concerned. NAR is projecting an increase in home values of 2% in 2012, 3% in 2013 and 4% in 2014. My prediction is that we will exceed those increases by at least another 1%.
• In Colorado Springs, there is an increasing demand for housing based upon an increase in our military population (with hundreds of troops returning from Iraq and Afghanistan) plus our typical population increase because of retirees (our city is one of the prime retirement cities in the country) and a slow but steady increase in businesses (as a result of our city council actively promoting our city nationally).
• There is a sizable pent-up demand for housing because of tight mortgage credit conditions which have been artificially holding back sales for several years….and the government is eagerly seeking to loosen up the requirements for borrowers (See “FED URGES ACTION ON EASING LENDING RESTRICTIONS”, below)

The bottom line is that the Colorado Springs Real Estate market looks very good in 2012, for Homeowners, Homebuyers, Homesellers and Investors alike.

Call us to discuss what these trends could mean for you. 598-3200, or, 800-677-6683(MOVE).

EXISTING HOME SALES CONTINUE TO CLIMB IN NOVEMBER

Realtor Magazine reports (12/21/2011) that existing home sales rose again in November and remain above a year ago, according to NAR.

Lawrence Yun, NAR chief economist said more people are taking advantage of the buyers' market. "Sales reached the highest mark in 10 months and are 34% above the cyclical low point in mid-2010 ....A genuine recovery appears to be developing. We've seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today's market for buyers with long-term plans".

This is all great news !!!

MORTGAGE RATES MATCH RECORD LOWS THIS WEEK

Daily Real Estate News reports (Jan. 6, 2012) that, for the fifth consecutive week, 30-year fixed-rate mortgages have averaged below 4%, which was unheard of until a few months ago.

30-year fixed-rate mortgages are averaging 3.91%, compared with 4.77% one year ago.
15-year fixed rate mortgages are averaging 3.23%, compared with 4.13% one year ago.

If you have not refinanced, you should seriously consider it. You could save hundreds of dollars a month.

Call us, if you would like to discuss this opportunity, at 598-3200,or 800 677-6683(MOVE).

COLORADO SPRINGS NUMBER OF FORECLOSURES FALLS AND BUILDING PERMITS PREDICTED TO RISE

The Gazette (Jan.4, 2012) reports that foreclosure filings in 2011 fell 25.4% in 2011, compared with 2010. This means that fewer homeowners were in trouble with their mortgages. Public Trustee Tom Mowle says he expects that trend to continue.

This reduction in foreclosures is accompanied by a forecast by the board president of the Housing and Building Association, John Cassiani, that there will be a 55 – 10% increase in building permits in 2012.

“It’s not going to be a rapid jump, but I think the uptick has started”, Mr. Cassiani said.

Considering both of these trends, things are looking very good for 2012 !!

AREA JOBLESS RATE DROPS TO LOWEST LEVEL IN 2 YEARS

The Gazette reports (Thursday, Jan. 5, 2012) that the Colorado Springs-area unemployment rate fell in November to its lowest level in more than two years. The area jobless rate fell to 9%, matching September 2009 as the lowest rate in the past 26 months.

At the Pikes Peak Workforce Center, a spokesman said that they are seeing a lot of recent hiring by call centers, a few high-tech companies and some seasonal jobs, such as landscaping. Sales and banking are also strong areas for hiring.

FED URGES ACTION ON EASING LENDING RESTRICTIONS

The Wall Street Journal (Thursday, Jan 5, 2012) reports that the Federal Reserve, in an unusual foray into housing policy, has called for more aggressive action from Congress to loosen mortgage-lending standards. The Fed stated that tight lending policies were holding back the recovery. They also urged more aggressive use of Fannie Mae and Freddie Mac to support a housing recovery.

The Fed's argument is that, although mortgage rates have been at record lows, there are many borrowers who have not been able to take advantage of the low rates because of blemishes on their credit histories, uneven incomes, or because their home values have left them with no, or very low equity.

And, please remember, I would be honored to serve as your Broker for all of your residential Real Estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local Real Estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing Relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

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

LATEST STATISTICS

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area. Note that these statistics are generated every month by the Pikes Peak Association of Realtors and they are one of the important tools that we use in assisting Buyers and Sellers to establish realistic listing/buying prices. Also note that the data is broken down into specific neighborhoods in the Pikes Peak area.

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

As you can see from the statistics, the local market, mortgage rates and trends are constantly changing, even within our local neighborhoods. That’s why you should seek help and advice from a reliable, professional Realtor.

If you are looking for a new home or an investment property, we can show you how to receive the most current listings sent directly to your computer
We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

JOKE OF THE WEEK

So, Brett Favre dies and goes to heaven. Because he was such a famous person, God himself shows him around. After showing Brett all of the sights, God shows Brett what his home will be for all eternity….. a beautiful cottage, with a Packers flag in the front yard.

Brett thanks God, but then notices the house next door, which is a huge mansion with a swimming pool, a four car garage, a heliport in back, several orange and blue banners hanging from the porch and a giant Broncos flag flying from a pole in the front yard.

Brett says, “Lord, I don’t want to seem ungrateful, but I played in the NFL for many years, was MVP for several seasons, I won several Super Bowls and still own many passing records. …and I end up with this little cottage in Heaven? Tim Tebow, on the other hand has only won one measly playoff game, and he gets that huge mansion? ..It just doesn’t seem fair. !!!

God replies, “Oh no, Brett. You don’t understand. That mansion isn’t for Tim Tebow …That’s my house “

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

LOCAL JOBLESS RATE DROPS – AND 2012 LOOKS EVEN BETTER
Gazette, Wed. Dec. 7, 2011

The unemployment rate in the Colorado Springs area dropped in October to its lowest level in nearly two years, according to the U.S. Bureau of Labor Statistics

The local jobless rate fell to 9.2% in October from 9.3% in September, matching November 2009 as the lowest rate in the past two years.

Tom Binnings, a senior partner in Summit Economics, LLC, a local economic research and forecasting firm said, “We continue to see slight improvement in the local economy, despite the gloom-and-doom forecasts that the nation is going to head back into a recession because of the European debt crisis”.

Other experts were even more optimistic, with the University of Colorado at Boulder Leeds School of Business forecasting 23,000 more jobs in Colorado in 2012, on top of the estimated 27,500 jobs the state gained this year.

Service providers will supply most of the growth, according to the forecasts.

HOW IS HOUSING DOING? THE EXPERTS SAY THINGS ARE LOOKING UP

HousingWire (Dec. 12, 2011) reports that Barclays Capital predicts a housing recovery buoyed by improving job numbers and the fact that prices for undistressed homes will have stabilized without government support.

“In the absence of government homebuyer incentives, prices for non-distressed homes sales have stabilized for almost a year,” says Barclays analyst Stephen Kim. “This is the most important trend in the housing industry right now, and we are amazed at how little attention it has been getting from the media and the street. This stability on the part of non-distressed prices has occurred despite a very high share of distressed activity and continued declines in overall prices.”

Barclays said recent economic data – including higher job creation – point to some improvement potential in the sector.

Fannie Mae’s November National Housing Survey also sees a rise in consumer sentiment in November, as improved economic data pushed home price expectations into positive territory, for the first time in six months.

According to the Fannie Mae report, more respondents expect home prices to increase by at least 0.2% over the next year.

All of these factors are on the minds of voters as they approach the coming elections. In fact, in a recent survey by HouseLogic.com, the consumer website from the National Association of Realtors, voters say that jobs and the housing market will be two of the most important issues for them as they head for the polls in November.

With unemployment still high, it is easy to see why so many Americans are concerned about the job market, however, employment and the housing market are inextricably linked because economic growth and job creation cannot occur without a housing recovery.

Housing accounts for more than 15% of the U.S. Gross Domestic Product – It’s a key driver of the national economy. Home sales generate jobs. In fact, NAR estimates that, for every two homes sold, one job is created. And new spending on homebuilding products, furniture, etc. also have a significant economic impact.

ASKING TOO MUCH? REAL ESTATE AGENTS MAY NOT LIST YOUR HOME

In the Gazette, Tuesday, Dec. 6, 2011, we were interviewed as to why local real estate listings are down to their lowest point in nearly seven years. In the article, we pointed out that home listings in November plummeted to 3,667 – the fewest in any month since 3,557 in January 2005. (See our Sales and Listings statistics, below).

As we noted in the interview, there are several reasons for the decline, but the most widespread reason is that homeowners are reluctant to list their homes at prices which are below their expectations. Unfortunately, in most cases, their expectations are too high, based upon the decline in values which the recession has caused.

The good news is that the decline in prices seems to have come to a halt, and many experts are predicting a modest rise in home prices in 2012. When that rise occurs, many homeowners who have been holding back will probably list their homes for sale, and the selection of homes available to Buyers will dramatically expand.

If you have been reluctant to list your home because you are concerned about the current market prices, give us a call to discuss the current value of your home. Prices vary from neighborhood to neighborhood and the market is changing daily. You might be pleasantly surprised to see what prices your home might bring.

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

LATEST SALES AND LISTING STATISTICS AS OF NOVEMBER 30, 2011

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area. Note that these statistics are generated every month by the Pikes Peak Association of Realtors and they are one of the important tools that we use in assisting Buyers and Sellers to establish realistic listing/buying prices. Also note that the data is broken down into specific neighborhoods in the Pikes Peak area.

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

3 LOCAL SCHOOL DISTRICTS EARN HIGHEST COLORADO GRADES

The Gazette (Dec. 12, 2011) informs us that three local school districts are among 18 statewide that received the highest marks under the Colorado Department of Education’s new accreditation standards.

For the second consecutive year, Academy School District 20, Cheyenne Mountain School District 12 and Lewis-Palmer School District 38 were deemed “accredited with distinction”.

Congratulations to our three champions and it is also encouraging to note that none of our local districts were given the lowest designation by the new accreditation system.

EDC LUNCHEON RECOGNIZES 22 LOCAL COMPANIES

On December 8, 2011, the Colorado Springs Regional Economic Development Corporation recognized 22 owner/executives from local companies which had relocated to, or expanded their existing operations in the local area during 2011.

The awards luncheon was a good indication of how the EDC is helping to build our city and strengthen our economy.

To see more about these expanding companies, CLICK HERE

Nice work, guys. Keep it up.

COLORADO RANKS 9TH AMONG HEALTHY STATES

The Colorado Springs Business Journal reports that Colorado ranks ninth among states with a healthy population, according to America’s Health Rankings. That’s an increase of four spots from last year, and once again, Colorado was named the least obese state.

The rankings are published by the United Health Foundation, the American Public Health Association and the Partnership for Prevention.

The state earned the Above-average ranking because of low levels of air pollution, lower levels of obesity and low prevalence of diabetes.

However, the report also states that our state has 814,000 obese people, an increase of 360,000 individuals over the past 10 years.

Overall, the country did not improve in health standards, meaning that there was a total balance between improvements and detriments in all 23 areas measured.

HEY, IT’S THE SLOW TIME OF THE YEAR – COME VISIT US AND HAVE A CUP OF COFFEE !!

This is the slow time of the year for Realtors, and most people are not looking to move or to list their homes for sale during the holidays, so we are getting lonely. Give us a call and come by for a visit and a cup of coffee !!

We appreciate our readers and we enjoy hearing from you. We get a lot of comments and suggestion about our weekly update and we want to tailor our weekly update so as to give you the most helpful Real Estate information available. Your input will help us improve the eNewsletter.

As a matter of fact, several of our readers have asked us where we get the information that we publish in these emails. Well, here is a partial list of the publications and sources we read on a regular basis, in order to keep abreast of the market for our eNewsletter readers:

Natl. Assoc. of Realtors news
Colo. Assoc. of Realtors news
Pikes Peak Assn. of Realtors news
The Gazette
Wall Street Journal
Bloomberg Businessweek
Forbes Magazine
Worldwide ERC (Relocation Industry)
Housing Wire
Inman News – Daily
Colo. Springs Business Journal
DS News – Daily
Relocation Directors Council
RIS Media – Daily
UCCS Quarterly Updates and Estimates (The Que)

And, if you would like us to add anyone to our subscription list (It’s free), just let us know.

And, please remember, I would be honored to serve as your Broker for all of your residential Real Estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local Real Estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing Relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

JOKE OF THE WEEK

When Prince Phillip was visiting the United States recently, the Commandant of West Point invited him to visit West Point, review the troops and see some of our modern weapons.

The parade commenced with a battalion of tanks, followed by a division of infantry, followed by armored personnel carriers and mobile artillery. There were mobile ballistic missile launchers, electronic jamming vehicles, and throughout the entire time the formations were overflown by squadrons of the most advanced interceptors, fighters, and long-range tactical and strategic bombers.

Prince Phillip was suitably impressed. Then he noticed that, way back at the end of the parade, there was a disorganized, messy bunch of men in rumpled suits tagging along behind the last artillery pieces.

"Who are they?" he asked.

"Ah," said the General, "those are our economists!"

"But what are economists doing in a military parade?” asked Prince Phillip.

"Your Highness” replied the General, "The rest of our weapons can wipe out specific targets, but those men can destroy an entire country”

"BLACK FRIDAY" IS STILL AVAILABLE FOR REAL ESTATE BUYERS

The great deals that Buyers line up for at retail stores on the day after Thanksgiving are still available in spades for real estate Buyers.

In real estate, the period between Thanksgiving and Christmas is the slowest time of the year. Most people are so busy buying presents and Christmas trees, that they don't have time to buy houses.

So, if you're a prospective Buyer, this time of the year presents a great opportunity to get some wonderful deals on houses. Not only are prices and mortgage rates low, but Sellers are not getting any offers, so they are very eager to negotiate with the few prospective shoppers who are willing to buy during this slow time of the year.

Now, if you're a Seller, this means that you should make sure you are making your home look as good as possible during this slow time of the year. Price it right and make it look good, both inside and outside.

Most real estate professionals advise Sellers to list their homes during the holiday season rather than waiting, citing more serious Buyers and less competition among properties, according to a recent survey.

In their recent survey of 429 real estate professionals, Holiday Home Selling Survey found that 60% said they would always advise a Seller to list a home during the holiday season and agreed that "it's a good time to sell".

The vast majority of respondents, 79 %, said more serious Buyers were one of the biggest benefits of listing during the holidays, while 61 percent said less competition among homes was a plus.

But the biggest challenge, noted by 63% of respondents, was keeping a home "open house ready," meaning clean and staged, during this time of year.

The majority of respondents, 74 percent, said pricing a home to sell was even more important during the holiday season, and 40 percent said staging a home was more important at this time of year. Nearly a third said being flexible with contract terms such as move-in dates and when closing costs were paid was more essential during the holidays.

The way a home is staged during this time of year is also significant, according to the survey. Almost all respondents said they advised Sellers to put up some seasonal decorations.

Eighty percent of respondents said they encourage Sellers to light their fireplace when staging a home during the holiday season, while 62 percent said they suggested Sellers update outdoor lighting because the Buyer is more likely to see the home at night due to shorter days.

Other popular staging advice for Sellers included using winter-scented home fragrances before an open house, making the home feel more cozy through reading nooks and blankets on couches and beds, setting the table to showcase holiday entertaining, and playing seasonal music that is not specific to a particular holiday, the survey said.

If you would like to find your new home before Christmas, or sell your new home before the end of the year, just call us at 598-3200, or, 800-677-MOVE (6683).

GAZETTE REPORTS "HOUSING MARKET IN POSITIVE TERRITORY"

On Friday, Dec. 2, 2011, the Gazette reported that the pace of homebuilding increased last month in the Colorado Springs area while foreclosure filings fell, continuing a positive trend for the local housing market over the past few months.

Single-family homebuilding permits in El Paso County totaled 122 in November, up 27.2% from the same month last year, according to figures released Thursday by the Pikes Peak Regional Building Department. Year-over-year permit totals have increased in five of the past six months.

Local economists and housing officials track single-family permits as a measure of the health of the building industry and economy. When the economy is going well, permits are on the rise; when the economy goes south, so does the pace of homebuilding.

Permits are also tracked by local governments; lumber, drywall and other building materials that are purchased to construct houses generate millions in sales tax revenues that governments use to fund their annual budgets.

THERE’S GOOD NEWS IN THREE MORE AREAS

Three recent news stories all point to the fact that things are looking up.

First, NAR reports that the inventory of homes for sale is getting smaller. That's an indication that the glut of foreclosed properties which was artificially distorting inventories and prices is being absorbed by the market. That's good news. It means the real estate market is returning to normal.(The 'not so good' reason for this shrinking inventory is that some potential Sellers are 'underwater' with their mortgages and are waiting for their equity to come back, before they list their homes for sale. However, the rising prices of homes for sale could solve that problem within the next year.)

In fact, just this week we were interviewed by the Gazette to comment on the shrinking inventory of homes for sale and we pointed out that our current inventory of available homes (3667) is actually the lowest it has been since January of 2005, when it was 3725.

The Second piece of good news is that there was a jump in pending home sales in October.

Realtor.org. November 30, 2011, reports that pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010 when it stood at 85.5.

Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from Buyers who normally would have entered the market in recent years. We hope this is indicates more Buyers are taking advantage of the excellent affordability conditions,” he said.

“Many consumers are recognizing that home Buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,” Yun added.

Locally, home sales totaled 758 in October, a 20% jump over the same month last year. It was the fourth consecutive month of year-over-year increases in home sales.

The third piece of good news is that the Wall Street Journal (Dec. 1, 2011) reported that private businesses added 206,000 jobs in November, according to their latest survey.

So, SMILE !!!! Things are getting better every day !!!

STRONG TEMPTATIONS FOR HOME BUYING

Daily Real Estate News | Tuesday, November 29, 2011

The monthly cost of owning a home is more affordable now than in the past 15 years, and is less expensive than renting in numerous cities, according to The Wall Street Journal’s third-quarter survey.

Low home prices mixed with low mortgage rates—hovering at 4 percent or even lower—are creating an appealing Buyer’s market, analysts say. For example, buyers today have a 77 percent increase in their borrowing power compared to 1991, The Wall Street Journal points out that, in 1991 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage, whereas today the home owner taking advantage of current low rates can get a $350,000 loan for that same mortgage payment amount.

To illustrate, in 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage, whereas today the home owner taking advantage of current low rates can get a $350,000 loan for that same mortgage payment amount.

In the 28 cities that The Wall Street Journal tracked, it found monthly mortgage payments on the median-priced home—including taxes and insurance—to be lower than the average rent levels in 12 of the metro areas.

Nationwide, apartment rents are expected to rise by about 4 percent this year, which may make the owning vs. renting picture tilt even higher, according to some analysts.

BOOMERS MORE WILLING TO HELP KIDS WITH DOWN PAYMENTS
Daily Real Estate News | Wednesday, November 30, 2011

Two-thirds of baby boomers say they want to help their children or grandchildren with a home down payment, according to a study of more than 1,000 baby boomers age 45 and up conducted by Meredith Research Solutions for Better Homes and Gardens

In fact, one in five boomers surveyed say they've already loaned their children money, cosigned a mortgage, or given a cash gift for a down payment on a home.

Even baby boomers not considered wealthy are willing to offer help on down payments. While baby boomers who make more than $75,000 a year were found to be the most willing to offer help, 46 percent of baby boomers who make less than $75,000 per year say they also plan to help their child with a future home purchase, according to the survey.

So why are baby boomer parents so willing to help their children out with a home down payment? About 75 percent of boomers said they believe owning a home is a good investment for their children, and 58 percent said they think it’s still part of the American dream.

And, please remember, I would be honored to serve as your Broker for all of your residential Real Estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local Real Estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing Relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Call us at 598-3200,or, 800 877-MOVE (6683).

LATEST SALES AND LISTING STATISTICS AS OF NOVEMBER 30, 2011

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area. Note that these statistics are generated every month by the Pikes Peak Association of Realtors and they are one of the important tools that we use in assisting Buyers and Sellers to establish realistic listing/buying prices. Also note that the data is broken down into specific neighborhoods in the Pikes Peak area.

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

JOKE OF THE WEEK

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

BREAKING NEWS …U.S. WILL REMAIN A NATION OF HOMEOWNERS

The U.S. will not become a nation of renters; there are just too many benefits, both financial and otherwise, to own versus rent. That’s according to the combined findings of several recent studies presented during the "Buyer or Renter Nation?" session held during the 2011 Realtors Conference and Expo last week and also the NAR annual survey which was released last week.

One analysis of homeowners which spanned a 31-year period compared the ownership benefits in terms of appreciation and interest deductibility and costs homeowners incur with down payment, taxes, insurance and maintenance and, in the analysis, 84% of homeowners came out ahead.

According to the most recent data from the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s.

"We knew that homeowners, on average, accumulate more wealth than renters", said Ken Johnson, editor, Journal of Housing Research at Florida International University. "These findings indicate that homeownership is a self-imposed savings plan."

"Homeownership is more affordable today than at any time over the last 30 years", Johnson said.

The NAR survey shows that 78% of recent homebuyers say their home is a good investment and 45% believe it’s better than stocks.

Another analysis conducted by Johnson, Beracha, Hilla Skiba and Mark Hirschey determined that housing affordability is at record levels.

Twenty-three states are at 30-year record levels of affordability based on price-to-income ratios, and all 50 states are at record affordability levels based on mortgage- payment-to-income ratios.

Beyond the financial advantages of homeownership, Johnson also cited several studies that have demonstrated how homeownership enhances civic pride, improves voter turnout, increases personal happiness, reduces crime, and provides a better familial environment.

Some of the other data presented in the NAR survey were:

First-time buyers who financed their purchase used a variety of resources for their down-payment. 75% tapped into savings. 26% received a gift from a friend or relative, 7% received a loan from a friend or relative. 9% sold stocks or bonds. 8% tapped into a 401(k) fund.

94% of entry-level buyers chose a fixed-rate mortgage

54% of first-time buyers financed with a low-down-payment FHA mortgage and 6% used the VA loan program which requires no down-payment.

64% of all buyers are married couples

18% are single women

10% are single men

7% are unmarried couples

The biggest factors influencing neighborhood choice were (in descending order) quality of the neighborhood, convenience to jobs, affordability, convenience to family and friends, neighborhood design, convenience to shopping, quality of school district, convenience to schools, and convenience to entertainment or leisure activities.

The typical home seller was 53 years old and their income was $101,500.

The typical seller who purchased a home nine years ago realized a median equity gain of $26,000, a 16% increase, while sellers who were in their homes for 11 to 15 years saw a median gain of $57,900, or 39%. Over time, the survey findings consistently show that the longer you own, the larger your return.

From our standpoint, it was interesting to note that home buyers thought the most important services agents provide are helping find the right house and negotiating price and sales terms.

Some other interesting facts were that 91% of buyers who used the Internet to search for a home, purchased through a real estate agent, as did 70% of non-Internet users, who were more likely to purchase directly from a builder or from an owner they already knew.

Like sellers, buyers most commonly choose an agent based upon a referral from a friend, neighbor or relative, with trustworthiness and reputation being the most important factors. That explains why, after 39 years of serving the Pikes Peak Area, we rely almost completely on referrals from our friends and past clients for our business.

Give us a call to discuss your real estate needs. We will do a great job for you…just ask our past clients. Call us at 598-3200, or, 1 800 677-6683 (MOVE).

ARE THINGS LOOKING UP? …HERE’S A FEW SOURCES THAT THINK SO

Realtor Magazine (November 18, 2011) says that the housing picture is expected to brighten in 2012. They cite a forecast by Fiserv, a financial information services firm which predicts that 95% of the 384 metro areas it tracks will see home prices rise in 2012…..and a survey by MacroMarkets of 100 economists and real estate professionals that predicts a rise in home values of .25% in the new year.

Bloomberg reports that economists at J.P.Morgan Chase & Co. now see gross domestic product rising 3% in the final quarter and Morgan Stanley & Co. is looking for a 3.5%. They also predict that the strengthening economy will help lift US stock prices. They also say the economic pick-up may also push up yields on Treasury securities.

Karen Hoguet, chief financial officer for Macy’s Inc. says, "We’ll have a spectacular Christmas".

Lawrence Yun, chief economist for the national Association of Realtors is quoted in Realtor Magazine as saying, "Housing affordability is about the best it’s ever been. Investors can anticipate strong rent returns and solid home appreciation. Nor is there any reason to believe this rent growth will cool. If annual rent gains stay near 3.5%, rents will double in 20 years. If they reach 5%, rent doubling will occur in 14 years. That means home prices could also double in 14 to 20 years."

The Gazette (November 17, 2011) reports that US manufacturing is recovering from a slump, and inflation may be peaking. Strong consumer spending helped the economy grow at an annual rate of 2.5% in the July-September quarter. Retail sales rose in October, leading economists to predict similar growth in the final three months of the year.

Finally, a report issued by the Mortgage Bankers Association shows that the share of households delinquent on their mortgage payments has fallen to the lowest level since the end of 2008, offering signs that modest job gains are stemming further damage in the US housing sector.

And you thought we were the only optimists on the planet ……SMILE !!! 2012 is going to be a great year.

NAR TO THE RESCUE

The National Association of Realtors notified us last Friday that Congress had restored the loan limits for the Federal Housing Administration (FHA) for two years. This reversal by Congress represents a victory for all prospective home Buyers, for the real estate market nationally, and for the national economy.

The National Association of Realtors (NAR) had lobbied intensely for this reversal, to help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties and 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000.

The new regulation reinstates the FHA loan limits through 2013 at 125% of local area median homes, up to a maximum of $729,750 in

the highest cost markets, the floor will remain at $271,050. However, Congress chose not to apply the loan limits restoration to Fannie Mae and Fredddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115% of local area median home prices up to $625,500.

The bill also provides for a short-tern extension of the National Flood Insurance Program through December 16, 2011. NAR promised to continue to press Congress to authorize a five-year extension of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.

As the Wall Street Journal points out (Nov. 17, 2011) "Five years ago, it was too easy to get a mortgage. Today, it’s probably too hard". This reversal by Congress will help address that problem.

Good Work, NAR. We’re proud to be a member.

THE LATEST QUE IS OUT – HAVE YOU SEEN IT ???

Every quarter, the College of Business and Administration of the University of Colorado at Colorado Springs publishes the Quarterly Updates and Estimates for El Paso County. This in-depth analysis of every aspect of our local economy is a valuable tool for personal and business planning. It is full of helpful charts and graphs about the real estate market, auto sales, tax revenues, employment trends, wages and even features a measurement of the local "Misery Index".

If you would like a copy of this very informative analysis of our local economy in the third quarter of 2011, produced by Fred Crowley, chief economist for the Southern Colorado Economic Forum, CLICK HERE.

IN 2012, JUST LIKE ALWAYS, POLITICS WILL TRUMP PESSIMISM

Our annual prediction is that, because 2012 is an election year, Washington will pull out all the stops and do whatever is necessary to boost our economy, so that voters will not go to the voting booths mad. In the time-honored tradition of "Bread and Circuses", we will see steps taken to help the housing market, increase employment and put "a chicken in every pot and a car in every garage".

So, relax. 2012 should be a great year for all of us.

And, please remember, I would be honored to serve as your Broker for all of your residential Real Estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local Real Estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing Relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf. Just click on the icon at the top of this email to listen to my podcast for this month …

LATEST SALES AND LISTING STATISTICS

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area.

JOKE OF THE WEEK

Ducking into confession with a turkey in his arms, Brian said, "Forgive me, Father, for I have sinned. I stole this turkey to feed my family. Would you take it and settle my guilt?"

"Certainly not," said the Priest. "As penance, you must return it to the one from whom you stole it."

"I tried," Brian sobbed, "but he refused. Oh, Father, what should I do?"

"If what you say is true, then it is all right for you to keep it for your family."

Thanking the Priest, Brian hurried off.

When confessions were over, the Priest returned to his residence. When he walked into the kitchen, he found that someone had stolen his turkey.