WHAT’S THE LATEST ON OUR LOCAL REAL ESTATE MARKET ?
October 10, 2011
HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET
WHAT’S THE LATEST ON OUR LOCAL real estate MARKET ?
The Gazette reports (Oct. 6, 2011) that local home sales totaled 672 last month, an 11.4% increase over September 2010. This was the third straight month of sales increases.
So, sales are up …That’s good.
What about mortgage rates? Well, during the past year, mortgage rates have dropped approximately 1% (From 4.75% in October of 2010 to 3.75% in October of 2011). This amounts to a reduction of about 20% in the 30 year mortgage interest rate.
So, mortgage rates are lower …..That’s really good, too.
What about the inventory of available homes for sale. Well, our present inventory (4,196) is down 24.5% from September of 2010. This is the lowest number of homes for sale since January, 2010 and is a good indicator that our excess inventory is being cleared out.
On the negative side, the average sales price of local homes has dropped about 5.2% (from $230,419 in September of 2010 to $218,526 in September of 2011). This represents an approximate decline in price of 5.2%. However, indications are that prices have finally bottomed out. In fact, Lawrence Yun, the chief economist of the NAR, is now predicting that, “Despite major hurdles in the housing market, there are signs that sales and prices have reached their bottom”.(Realtor Magazine, October, 2011
So, home prices have fallen …and that’s not so good …but it looks like they may have hit bottom.
OK, what do all these numbers mean to Buyers and Sellers?
Well, the bottom line for Buyers is that the cost of acquiring and owning a home is lower today than it has been in recent history ….. but that could soon change. As our inventory shrinks and as prices seem to be bottoming out, it looks like our “Buyers Market” could be shrinking. ..Better buy now, or miss out on the best deals we have ever seen.
For Sellers, however, the outlook is improving. Increased sales, lower inventories and lower mortgage rates should make it easier for you to sell your home in the coming months.
Call us at 598-3200, or, 800 677-MOVE (6683) to discuss our local market and how current conditions might affect your decision to buy, sell or invest.
And to review all of the latest Sales and Listing statistics for the Pikes Peak area, CLICK HERE.
HOW IS HOMEBUILDING HOLDING UP ?
Locally, Home construction jumped in September by 53.1%, over the same month last year (The Gazette, October 4, 2011).
Also, single-family building permits totaled 124 in September. This figure represents the third increase in the last four months.
This upturn in homebuilding is likely one reaction to the decline in foreclosures. Through the first three quarters of the year, foreclosure filings totaled 2,615, down 26.9% from the same period last year. The area is now on a pace to close the year with about 3,800 foreclosure filings, which would be the fewest since 2007.
The increase in building permits, coupled with the slowdown in foreclosures, are two more indications that our local real estate downturn is coming to an end.
TRANSFORMING THE FUTURE ---WORLDWIDE ERC GLOBAL WORKFORCE SYMPOSIUM
This week, we will be attending the annual ERC Symposium in Denver. The presentations include such interesting topics as: “Help! My mortgage is underwater and my company wants me to move”, “Distressed properties: Challenges, Opportunities and Solutions in Mobility”, and “Changes in the U.S. Mortgage Industry”.
Every time we attend one of these Symposiums, we have the opportunity to hear from the experts and from our peers in the relocation industry. It’s another opportunity to learn how to help our clients with their relocation challenges.
If you are facing any issues related to relocation, please give us a call. We will be happy to hear from you and offer our assistance.
FACING THE LOSS OF YOUR HOME? WHICH IS BETTER, SHORT SALE OR FORECLOSURE?
Unfortunately, because of a loss of income or some other change in circumstances, many
Homeowners find themselves in a situation where they can no longer afford to make their house payments. When this happens, they face a choice of either trying to “short sale” their home (i.e. work out an agreement with the lender who holds the mortgage to accept a buyer’s offer for less than the mortgage balance), or, letting the lender foreclose on the property.
Which of these options is better for the homeowner? Our experience tells us that a short sale is always the better option, for a number of reasons:
• The homeowner’s credit report after a short sale shows that, “Mortgage debt was settled for less than full” and the balance on the mortgage is $0. This opens the door to financial recovery.
• The homeowner’s credit report after a foreclosure indicates, “Foreclosure”, together with an amount that was delinquent. E.g. $150,000. This deficiency balance will create a much larger problem for the homeowner to overcome when he applies for credit in the future.
The short sale also eliminates such insults to the family’s dignity as a Sheriff’s order, or some other type of legal action.
If you face this type of problem, please call us at for advice Call us at 598-3200, or, 800 677-MOVE (6683) to discuss your options.
MAYOR STEVE BACH TO LEAD ANNUAL CHAMBER TRIP TO D.C.
This week, Mayor Steve Bach will lead the Colorado Springs Chamber of Commerce’s annual trip to Washington DC to meet with key lawmakers and public policymakers to discuss issues of importance to the Pikes Peak region. The mayor, along with about 70 local business and civic leaders will meet with the economic development director of the National League of Cities to talk about tools for emerging businesses, small businesses and primary employers, and will also meet with Douglas Holtz-Eakin, president of the American Action Forum. Mr. Holtz-Eakin is also the former chief economist for the President’s Council of Economic Advisors and a former Congressional Budget Office official.
Other scheduled events include meetings with Colorado Senators Bennet and Udall, Rep. Eric Cantor, Rep John Boehner, Rep. Paul Ryan, the chair of the House budget committee, the Department of Defense and U.S. Chamber of Commerce officials.
This year, for the first time, the trip will be lead by our elected Mayor, who has the authority to make budgetary decisions, so, the impact of the trip will be more measurable and productive in developing more business for Colorado Springs.
The primary goal of this annual trip is to stimulate jobs in our region …..and jobs will determine how quickly we are able to put the recession behind us.
We will report about the results of these important, business-building meetings, in future issues.
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 …
JOKE OF THE WEEK
I really don’t know why this joke struck me as being funny.
An elderly couple had been experiencing declining memories, so they decided to take a power memory class where one is taught to remember things by association.
A few days after the class, the old man was outside talking with his neighbor about how much the class helped him.
"What was the name of the Instructor?" asked the neighbor.
"Oh, ummmm, let's see," the old man pondered. "You know that flower, you know, the one that smells really nice but has those prickly thorns, what's that flower's name?"
"A rose?" asked the neighbor.
"Yes, that's it," replied the old man. He then turned toward his house and shouted, "Hey, Rose, what's the name of the Instructor we took the memory class from?"
