Sellers - Take a look at your competition
February 7, 2011
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET
SELLERS – TAKE A LOOK AT YOUR COMPETITION
The Pikes Peak Association of Realtors just released a new monthly report which shows the “Active Listings for Single Family/Patio Homes”, as well as the “Sold Listings” for the previous month and the “Sold Listings” for the same month last year. The data should interest anyone who is trying to sell their home. Using the data reported, if you are currently listing your home for $299,000, let’s see what the numbers tell us:
- There are currently 2,537 homes listed at, or below your listed price.
- Last month, there were 340 sales of homes listed at, or below your listed price. This means that only 13.4% of the homes listed in this price range sold in January.
- The good news is that, in January, sales of homes in your price range, or below, accounted for 83% of all sales, so the Buyers who are interested in your price range are out there. The trick is to get them to look at and buy your home, rather than the other 2,536 comparable homes which are competing for their attention.
If you are a Seller, these numbers tell us that you should not expect a quick, easy sale of your home. Rather, be prepared to negotiate, plan on an aggressive, competitive marketing campaign and don’t expect overnight results. Furthermore, if your home is listed for $300,000 or higher, keep in mind that only 17% of the potential Buyers out there might be interested in your home. Last month, for example, there were only 72 sales of homes over $300,000.
To see the complete report on Active and Sold listings, CLICK HERE.
As always, many of the determining factors that influence prospective Buyers are location, location, location, as well as the condition of the home, neighborhood, proximity to schools, etc., and we would have to visit with you to give you more specific recommendations about your listing, so, call us. We will be happy to help you design and implement an effective campaign to sell your home in this competitive market.
BUYERS – TAKE A LOOK AT THE POSSIBILITIES
The PPAR report listed above will also help Buyers make better purchasing decisions. It’s obvious that our current inventory of available homes is so large and our current sales are so slow that there is a large window for negotiation that is now open for Buyers. Let us help you make the best decision possible about your next home, or investment property. The opportunity to acquire investment real estate has never been better. Low prices, low interest rates, high occupancy rates, rising rents and a large pool of eager sellers all add up to the opportunity of a lifetime for smart Buyers.
One fact that prospective Buyers should keep in mind is that closing costs are negotiable. In an interview, Barry Zigas, director of housing policy at the Consumer Federation of America points out:
“There’s a lot of room for negotiating in the costs of closing and consumers should examine every charge and not hesitate to challenge them and try to bring them down. Closing costs can run anywhere from 3-6% of the price of the property. For example, in 2010, for a $200,000 home, the average closing costs were $3,741, an increase of nearly 37%, according to Bankrate.com.
Simply ask the lender which fees are negotiable and which fees are fixed. Ask, “Who is getting this fee and why am I being asked to pay it?”
As a matter of fact, this is an area where a good Realtor can save you a lot of money. As we cited in one of our previous enewsletters, we recently saved a Buyer approximately $2,500 in closing fees by simply switching to a more “customer-friendly” lender.
Call us and let’s discuss your ideas.
A NEW MAYOR, A NEW COUNCIL, A NEW BEGINNING
For the first time in history, the citizens of Colorado Springs will have the opportunity to elect a city mayor. Until now, the mayor has been appointed by the City Council.
So that voters might get better acquainted with the candidates for the mayoral position, a moderated forum has been scheduled on March 1, 2011, 5:15pm at the Fine Arts Center. The forum will feature six mayoral candidates and will be moderated by Pam Shockley-Zalabak, Chancellor, UCCS. We urge all interested parties to attend this forum, to insure that we end up with the candidate who is most qualified to lead our city into the future.
To register for this event and to learn more about it, CLICK HERE.
See you there.
20TH ANNUAL ECONOMIC FORECAST BREAKFAST
On Feb. 3, we attended the annual Economic Forecast Breakfast, sponsored by the Institute of real estate Management. The 5 presentations covered all aspects of our local real estate market and were very informative, but we thought the presentation on residential real estate might be the one that would be of specific interest to our readers.
Basically, residential sales in 2010 were down from 2009. Sales in the first half of 2010 looked fairly good, as a result of the federal tax credit for first-time Buyers. Sales in the second half of 2010 were slightly down, but selling prices were up.
The average number of “days on the market” for a $250,000 home went from 88 days during the first half of the year to 104 days in the second half.
New Listings in 2010 went from 18,561 in 2009 to 19,203.
Using historical demand as the measure, the inventory of homes under $250,000 would supply the market for 6 months (compared with 4 months one year ago). $350,000-$400,000 inventory is 8.5 months. $600,000-$700,000 inventory is 23.3 months. Homes over $1,000,000 had only 25 sales in the last half of 2010.
Comparing 2010 to 2006, we see sales down 32%. but rents were up 55%. Investors, take note.!!!
The brightest stars in the numbers were rentals. Average monthly rental went from $989 a month in 2006, to $1109 in 2010. That’s one part of the economy that has shown a profit in recent years.
We’re recovering, but slowly.
Jobs are still the key to recovery !! Let’s hope our new Mayor and City Council have that at the top of their priority list.
Click here for the latest Sales and Listing statistics for the Pikes Peak Region.
DAMN THE TORPEDOES, BUT DON’T DAM THE ICE
On Feb. 3, 2011, the Wall StreetJournal featured an article about the potential damage to local homes as a result of “ice dams”. Our recent cold snaps have aggravated the problem and we thought our readers might want to be aware of this problem.
Ice dams form when an under-insulated home’s heat escapes through the attic, warms the roof and melts snow. As water runs down the roof, it can refreeze into an icy dam along the overhang, which is cooler. If the dam gets big enough, it can then block water from running off the roof and force it back up under the shingles, triggering leaks and other damage. Icicles are one symptom of dams forming.
If you have ever had your roof replaced as a result of hail damage, you probably know that the insurance inspector who comes to inspect the roofer’s work will check to see that the roofer has installed an extra layer of protection under the bottom three or four feet of shingles, to prevent water from coming back up under the shingles. If you don’t know whether your home has this protective layer under the shingles, you might want to check it out yourself, or have someone check it out for you.
COMING SOON ……..
On Feb. 10, 2011, the National Association of Realtors will be releasing their report of home sales in all of the top 153 U.S. markets. We look forward to including that report in the next issue of our newsletter and we think you will be surprised and gratified to see how well Colorado Springs is doing, compared with the rest of the country.
And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.
Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.
Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us.
JOKE OF THE WEEK
TOP TEN ECONOMIST VALENTINES
10. YOU RAISE MY INTEREST RATE THIRTY BASIS POINTS WITHOUT A CORRESPONDING DROP OFF IN CONSUMER ENTHUSIASM
9. DESPITE A DECADE OF INFLATION, I STILL DIG YOUR SUPPLY CURVE
8. WHAT DO YOU SAY WE RE-MEASURE OUR CROSS-ELASTICITY
7. YOU BRING THE BUTTER, I'LL BRING THE GUN
6. LET'S RAISE HOUSING STARTS TOGETHER
5. FURTHER STIMULUS COULD RESULT IN UNCONTROLLED EXPANSION
4. TELL ME WHETHER MY EXPECTATIONS ARE RATIONAL
3. LET'S ASSUME A RITZY HOTEL ROOM AND A BOTTLE OF DOM
2. YOU STOKE THE ANIMAL SPIRITS OF MY MARKET
1. A LOAF OF BREAD, A JUG OF WINE, AND THOU BESIDE ME WATCHING RUKEYSER