October 17, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

Because there are a lot of interesting developments in the real estate market, we are calling this issue,

“BITS AND PIECES”

THE relocation MARKET ….IS THAT PROMOTION REALLY WORTH IT??

At the recent Denver meeting of Worldwide ERC, several interesting aspects of relocating employees were explored. The decline in home prices which resulted in many employees being “underwater” with their mortgages has forced companies to revise their policies regarding employee transfers:

• Unless you are a top-level manager, your company may not buy out your present mortgage. Instead, they may give you a rental allowance in your new city, encourage you to rent out your home in the city you are leaving and subsidize the rental differential (if your rental income does not pay for your mortgage payments) for some specified period of time. There can be tax implications for you, should this happen.
• If you end up renting out your present home, because of relocation, you become a landlord and will probably have to hire a management company to handle your property. Obviously, the relocation process is a much more complicated process than it was when employers could simply buy out your mortgage.

Does this affect employers’ relocation policies? You bet. In fact 65% of companies now offer some form of pre-decision support to their employees who must move and 65% of employees who are offered a job that requires a transfer don’t accept the offer because of the housing issue.

Bottom line - Better check all of this out, before you take that promotion!!! If you are an employer who is trying to work out the best possible solutions to your relocation policies, or, if you are an employee who is facing relocation, we would be happy to share our expertise with you.


IS NOW A GOOD TIME TO BUY? GUESS WHAT MY ANSWER IS.

Many of our readers kid us about the fact that we constantly say, “Now is the time to buy”. But seriously, folks, it’s true. Look at what experts are saying:

• The Wall Street Journal (Saturday, Oct. 15, 2011) says, “It’s Time to Buy That House”. The article points out that it’s an excellent time to buy a house to live in for the long term, or for investment income (but not for a quick flip) because of two factors:

The nation’s ratio of house prices to yearly rents is nearly restored to it pre-bubble average and

When mortgage rates are taken into consideration, houses are the most affordable they have been in decades

The article goes on to point out that, “if you have good credit, a job and a downpayment, you can get a mortgage. There’s more paperwork and scrutiny than five years ago, but things are pretty much like they were in the ‘80s and ‘90s.

“Houses aren’t the magic wealth creators they were made out to be during the bubble, but when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump”.

• Bloomberg Businessweek (Oct. 17 – Oct. 23, 2011) states that “Epic Home Deals Await the Creditworthy”.

“Bargains abound, and rates are at record lows – for those who qualify”

“Buyers “won’t gain anything by playing the waiting game”

The Bloomberg article points out that the current market features lower prices, but tomorrow’s market will feature higher rates. For example, the house that lists for $300,000 today, with a 4% mortgage, will require a $60,000 downpayment, and monthly payments of $1,145, for a 30 year total of $472,200.

That same house in 2012 will probably list for $289,000, with a 4.5% mortgage and will require a $57,800 downpayment and monthly payments of $1,171, for a 30 year total of $479,360.

So, it’s not just us that’s saying it, folks. NOW really is a great time to buy.

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


WHAT DID THE SCEF PREDICT FOR COLORADO SPRINGS?

As we have mentioned in our previous enewsletters, last week at the Antlers-Hilton, the Southern Colorado Economic Forum presented their analysis of what will happen in our area in 2012. There were several great presentations, but a few speakers merit some special attention.

Jim Paulsen, chief investment strategist for Wells Capital Management showed several charts and graphs which tracked the recoveries from the recessions of the early 1990s and 2001 and our present recovery. Surprisingly, every aspect of the economy that was charted showed almost identical recovery lines and timeframes for all three recoveries. The only major segment of the economy that is not on the typical recovery track this time is housing. (Tell me about it).

Fred Crowley and Tom Zwirlein of the forum made presentations indicating that the nation and the world should expect another, smaller recession in 2012, but the impact on our local economy should be cushioned by the return to Fort Carson of between 7000 and 8000 troops now deployed in the two wars in the middle east. Spending by those troops should likely create another 3000 to 6000 local jobs

One startling statement made at the forum was that 10% of total defense expenditures within the US are made in the Colorado Springs area. No wonder our economy looks so much better than many other US cities.

The bottom line is that Colorado Springs is on track for recovery, and 2012 should see improvement in every economic area, but probably not more than 4%.


SO, HOW’S COLORADO SPRINGS LOOKING TO THE REST OF THE COUNTRY?

Colorado Springs has been rated:

• 9th for recovery from the recession by the Brookings Institute because of a combination of a well-educated workforce and industries that have not been hit as hard in the recession.(09/11)
• 11th Best Drivers by Allstate Report compared to America’s 200 largest cities (09/11)
• 4th Best Value City by Kiplinger’s Personal Finance for low living cost, strong economies and great amenities(07/11)
• 15th Best City for Families according to Parenting.com for quality of schools, affordable homes, low crime rates, jobs and parkland (07/11)
• 6th best in getting the “Bang for your Buck” metropolitan areas in America by U.S. News. Results are from the Council for Community Economic Research which looked at prices on a variety of basic goods and services, groceries, housing, utilities, healthcare, transportation and common expenses like movie tickets and newspapers (06/11)
• Garden of the Gods ranked 2nd Great Public Space by American Planning Association.(10/11)

In addition, Colorado was rated

• 3rd in the US by TechAmerica Foundation for concentration of high-tech workers, wages, trends in high-tech employment and other key economic factors (10/11)
• 5th Best State for Business by CNBC, which looked at cost of doing business, workforce, quality of life, transportation and infrastructure, economy, education, technology and innovation, business friendliness, access to capital and cost of living.(06/11)

And Tim Tebow will start as Quarterback for the Denver Broncos this Sunday. Who could ask for anything more?


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 Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

In surfing through several “Joke” sites, we came across a list of “Dumb Colorado Laws”. We are reprinting them here, together with our reactions to them. (We were going to reprint the “Dumb Federal Laws”, but had to abandon that idea when the list grew to 247 pages).

Dumb Colorado Laws
It is illegal to ride a horse while under the influence. (Well, there goes half of my vacation).
Tags may not be ripped off of pillows and mattresses. (Apparently, using a flamethrower is legal.)

Colorado Springs
It is permissable to wear a holstered six-gun within city limits, except on Sunday, Election Day, or holidays. (Great !!!! Just when you need them the most)

Cripple Creek
It is illegal to bring your horse or pack mule above the ground floor of any building. (Especially if they are “under the influence”).

Denver
It is unlawful to lend your vacuum cleaner to your next-door neighbor. (Again, does this apply to flamethrowers as well?)

It is illegal to mistreat rats in Denver, Colorado. (Fill in your own comments on this one)

You may not drive a black car on Sundays. (This makes arranging funerals a little tricky)

Durango
It is illegal to go out in public dressed in clothes "unbecoming" on one's sex. (We’ll pass on this one, too)

Logan County
It is illegal for a man to kiss a woman while she is asleep. (Well, there goes the other half of my vacation.)

Pueblo
It is illegal to let a dandelion grow within the city limits. (If it weren’t for dandelions, my house wouldn’t have any landscaping at all).
 
Sterling
Cats may not run loose without having been fitted with a taillight. (Instead of an office party this year, we are all going to Sterling to watch the fitting process. Be sure to bring plenty of Band-Aids and ear-plugs.)