Sept. 16, 2012

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET


COLORADO IS ONE OF THE 5 STRONGEST PERFORMING HOUSING MARKETS IN THE USA
Daily real estate News | Tuesday, September 11, 2012

Several real estate markets are showing signs of recovery, with median home prices and sales rising. But which markets are showing some of the strongest signs of recovery?

24/7 Wall St. recently evaluated home price changes for the year ending in July, foreclosure data, the unemployment rate, and other factors to help determine which housing markets are performing the strongest.

The states that emerged on top of the list are:
1. Arizona
2. Idaho
3. Utah
4. South Dakota
5. Colorado - Home price change in the last year: +7.3%. Median home price: $240,000

And keep in mind that Colorado Springs historically beats the rest of the state in these areas !!!


TRULIA SAYS BUYING A HOME IN COLORADO SPRINGS IS CHEAPER THAN RENTING
TruliaTrends – Sept. 13, 2012

The most important housing decision that most consumers face is whether to rent or to buy. So to help them with this decision, Trulia took a look at the key market factors affecting the cost of homeownership. First off, asking home prices have risen by 2.3% year over year in August (3.8% excluding foreclosures); however, rents have risen more (4.7%). This means that prices are lower relative to rents than they were a year ago.

But more importantly, mortgage rates have fallen: the best rates this summer have been around 3.5%, while last summer rates were closer to 4.5%. Based on asking prices and rents during the summer of 2012, buying is now cheaper than renting in the 100 largest U.S. metros. There is no market where the financial decision is even close, so long as you plan to stay in the home for at least seven years, get 3.5% mortgage, and itemize your tax deductions.

As noted in the Trulia survey of the top 100 metro areas in the US, the monthly cost of homeownership in Colorado Springs is $741. The monthly cost of renting is $1,291. That’s a difference of 43%, or, $550 per month more in your pocket.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss what this could mean to your financial security.


FEWER HOMEOWNERS UPSIDE DOWN ON MORTGAGES
THE GAZETTE September 12, 2012 12:04 PM

The picture has brightened for local homeowners who had been underwater on their properties.
In Colorado Springs, 19.9 percent or 30,584 of all residential properties with a mortgage were in negative equity during the second quarter of this year, according to a report released Wednesday by California-based housing data firm CoreLogic.

Negative equity refers to owners who owe more on their properties than what they are worth — known as being underwater or upside down. A decline in home values, an increase in mortgage debt or a combination of the two contribute to negative equity, according to CoreLogic.

The latest Colorado Springs figure was an improvement from the first quarter, when 23.4 percent or 35,833 local properties were underwater, CoreLogic’s report shows. During the second quarter of 2011, the figures were 22.1 percent or 34,109 properties.

Colorado Springs’ figures mirror state and national trends:
• In Colorado, 18.2 percent of residential property owners were underwater in the second quarter, compared with 20.7 percent in the first quarter and 20.6 percent in the second quarter of 2011.
• Nationally, 22.3 percent of all residential properties with a mortgage were underwater in the second quarter, compared with 23.7 percent or in the first quarter and 22.5 percent in the second quarter of last year.
• Nevada had the highest percentage of mortgaged properties in negative equity — 59 percent, according to CoreLogic.

Soaring home prices during the spring and summer, lower inventory levels and declining numbers of bank-owned home sales all have contributed to the improvement in the numbers and percentages of upside down properties, Mark Fleming, CoreLogic’s chief economist, said in a news release.

It’s obviously time for Sellers to put their homes back on the market. Prices are rising and there is a shortage of “homes for sale”.

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


GOOD NEWS FOR HOMEBUYERS - FED MOVES TO KEEP RATES LOW
Daily real estate News | Friday, September 14, 2012

The Federal Reserve announced Thursday that, in an effort to re-ignite economic recovery, it was taking aim at mortgage rates — a move that will likely take rates even lower from their current record lows.

The Federal Reserve announced it will purchase $40 billion of mortgage-backed securities that will help boost the recovery in the housing market. What’s more, the central bank said that it will continue with the purchase program until the economy shows greater improvement, particularly with unemployment.

"These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative," according to the Fed in a public statement.

As mortgage rates sink lower, home shoppers have been taking advantage. The Mortgage Bankers Association announced this week that mortgage applications for home purchases were up 8.1 percent for the week ending Sept. 7. Mortgage applications for purchases also were up 7 percent from year-ago levels, MBA said.

"While low interest rates impose some costs, Americans will ultimately benefit most from the healthy and growing economy that low interest rates promote," Fed Chairman Ben Bernanke said Thursday following the Fed committee’s meeting.


SURVEY: HOMES ARE SELLING FASTER
Daily real estate News | Friday, September 07, 2012

Sales are quickening their pace as the time to sell a home decreases and falls more in line with a “balanced” housing market, according to new research by the National Association of REALTORS®.

The median time a home listed for sale was on the market in July was 69 days, down from 98 days one year earlier. Broken down further, one-third of homes purchased in July were on the market for less than a month, and one in five of homes purchased in July were on the market for at least six months.

“As inventory has tightened homes have been selling more quickly,” says Lawrence Yen, Nar’s chief economist. “A notable shortening of time-on-market began this spring, and this has created a general balance between home buyers and sellers in much of the country. This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.”

By the end July, a 6.4-month supply of homes were on the market at the current sales pace. That is 31.2 percent below year-ago levels, when there was a 9.3-month supply.

With supplies of homes tighter, economists expect home prices to continue their trend upward.

“Our current forecast is for the median existing home price to rise 4.5 to 5 percent this year and about 5 percent in 2013, which is somewhat stronger than historic norms because of the inventory shortfall that is most pronounced in the low price ranges,” Yen says.

Call us at 598-3200, or, 800 677-6683 (MOVE) to discuss how rising home prices might affect your decision to buy now !!

 

LATEST LOCAL STATISTICS FROM PPAR

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, 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 40 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 last, but not least… to all of our Jewish friends and clients, Happy New Year – 5773.


JOKE

A local United Way office realized that the organization had never received a donation from the town's most well-entrenched politician. The person in charge of contributions called him to persuade him to contribute.

"Our research shows that out of a yearly income of at least $500,000, you give not a penny to charity. Wouldn't you like to give back to the community in some way?"

The politician mulled this over for a moment and replied, "First, did your research also show that my mother is dying after a long illness, and has medical bills that are several times her annual income?"

Embarrassed, the United Way rep mumbled, "Um ... no."

The politician interrupts, "or that my brother, a disabled veteran, is blind and confined to a wheelchair?"

The stricken United Way rep began to stammer out an apology, but was interrupted again.

"or that my sister's husband died in a traffic accident," the politician's voice rising in indignation, "leaving her penniless with three children?!"

The humiliated United Way rep, completely beaten, said simply, "I had no idea..."

On a roll, the politician cut him off once again, "So if I don't give any money to them, why should I give any to you?"