January 30, 2012


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.