Harry Salzman's Blog

Want to know something that you didn't know before?

Mon, 06 Feb 2012 01:00:00 GMT

February 6, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

21st ANNUAL IREM BREAKFAST PRESENTS ROSY ECONOMIC FORECAST

On Thursday, Feb. 2, 2012, along with about 275 other attendees, we attended the Institute of Real Estate Management’s 21st Annual Breakfast at the Doubletree Hotel. The meeting featured speakers from the real estate profession and from the City of Colorado Springs’ Economic Vitality Division.

Their annual forecast included overviews of all aspects of the real estate market ….Multi-family, residential, commercial, etc. The consensus of the speakers was that our local real estate picture is improving, with some segments growing faster than others, and we were especially pleased to hear their optimistic view of our local residential real estate market.

Some of the factors that were noted as boosting our local residential real estate market were:

• Inventory of homes is down (3,157- the lowest total for any month since 3,116 listings in Feb. 2002)
• Foreclosures are down
• Short sales are down
• Interest rates are down
• Unemployment is down
• Troop levels at Ft. Carson are growing
• Consumer confidence is growing

As for rentals, rental occupancy is currently at 94% and pressure increases daily for higher rents. Since 2006, monthly rental prices have risen steadily, from $909 in 2006 to $1163 in 2011. The average lease price (rent) is up 18%. These factors all lead the experts to say, “Buy rentals now and hold them as they increase in value”.

In our current market, the strategy that many experts are recommending for investment buyers is based upon the fact that single-family home prices went up 12.6% in the second half of 2011, while prices for condos and townhouses during that same period have not yet started to rise, but appear to have bottomed-out.

If we had to boil all of the presentations down to a single strategy for our readers, it would be to give serious consideration to:

• Upgrading to a better home, without significantly increasing your monthly payment. (If you can afford a $1000 mortgage payment monthly for 30 years, the current low prices and low mortgage rates would enable you to buy a $250,000 home right now) ……. and,
• Retain your current home as an investment property, rather than selling it ……..Or, at least
• Refinance right now, to take advantage of the current, record-low mortgage rates.
• Keep in mind that, if you wait too long to buy, hoping that prices will go down, you might wind up spending a little less for your house, but a lot more for your mortgage.

Give us a call to discuss your options, at 598-3200, or 800 677-6683(MOVE).

BUILDING PERMITS UP IN 2012 AND LOCAL UNEMPLOYMENT RATE STAYS AT 9%

The Pikes Peak Regional Building Department reports a January 3.7% gain in single-family building permits over January of 2011. John Cassiani, board president of the Housing and Building Association of Colorado Springs, stated, “The economy is getting better. You’ve got a lower unemployment rate in Colorado and in Colorado Springs, and I just think all the signs out there seem to be positive in terms of getting the housing industry back in the right direction.”

In a related story, the U.S. Bureau of Labor Statistics reports that the latest 9% unemployment rate in November and December remains the lowest in more than two year and is down sharply from a record 10% last February.

FEWER FORECLOSURES LOCALLY IN JANUARY

Fewer homeowners fell into foreclosure in January in the Colorado Springs area, which continued a trend of reduced foreclosure activity during 2011, according to Tom Mowle, head of the El Paso County Public Trustee’s Office.

Mr. Mowle stated, “The people who have taken out loans the last four to five years will be less likely to find themselves in default and the people who took out the creative loans six to eight years ago have either been renegotiated with lenders or fallen into foreclosure”

Foreclosure sales in El Paso County totaled 2,060 last year, down 21.7% from 2010.

SPRINGS COST OF LIVING STILL BELOW U.S. AVERAGE

Living costs in Colorado Springs were 6.8% below the national average during 2011, according to a survey by the Council for Community and Economic Research.

“The cost of living here remains well below the national average, which has always been a strength for Colorado Springs”, said Tom Binnings, a senior partner with Summit Economics, a local economic research and consulting firm.

Local utilities costs still remain 9.4% below the national average, while our overall energy costs are the lowest in the state. Dave Grossman, a spokesman for Colorado Springs Utilities stated, “the average monthly residential electric bill rose last year to $65.77, while the average natural gas bill fell 2.3% to $48.28.

Local costs for housing and transportation also moved further below the national average.

HERE’S SOME MORE LOCAL GOOD NEWS

According to the Gazette, in Colorado Springs in January:

• Initial claims for unemployment were down 3.7%
• The unemployment rate was down to 9%
• New auto and truck registrations were up 35.2%
• Foreclosure filings were down 16.4%

DID YOU KNOW THAT JANUARY IS THE BEST MONTH TO BUY A HOME?

In reviewing the sales statistics for the past 20 years, we notice that January is the slowest sales month in every year. In every January there are fewer sales and the average selling price is at its lowest level for the year. This January, for example, sales totaled 474, which was 3% more than last January. The median price was $172,250. There were 3157 listings available (which is 27% fewer than last year [4326] and represents the lowest number of available homes since February of 2002. 86% of all sales in January were below $299,999.

After January, both sales and prices start to go up, so call us to take advantage of the lowest prices you will see in 2012.

SALES AND LISTING STATISTICS

CLICK HERE to see the latest Sales and listing statistics for the Pikes Peak area.

And be sure to give us a call, if you have any questions, or would like to discuss these statistics in more detail.

Call us at 598-3200, or, 800 677-6683.

THINKING OF BUYING A FORECLOSURE? BE SURE TO ASK THESE 4 QUESTIONS
Daily Real Estate News | Tuesday, January 31, 2012

Foreclosures can offer big bargains, but buyers need to be careful that they don’t get over their heads in purchasing a home that may need more repairs than they bargained for.

Foreclosures are usually sold as-is, and homes that are left vacant standing too long can have a lot of maintenance problems.

Real estate experts suggest buyers consider the following questions:

1. How long has the home been vacant? Be cautious of a foreclosed home that has stood vacant for more than a few weeks or had its utilities shut off a long time. Marvin Goldstein, a home inspector for many foreclosed properties, says a home can deteriorate quickly when heating, cooling, electricity, and running water have been turned off for a while.
2. How old is the home? Goldstein says that homes that are more than 50 years old may have a failing plumbing system or inadequate electrical wiring.
3. How does the home look? Are there broken windows, gutters hanging down, or damaged siding? “Trust your instincts. If the house looks bad from the outside, it's probably worse than you think,” Goldstein said.
4. Is there anything missing? Sometimes former owners remove anything of value from the home, such as built-in light fixtures, bathroom tile, water heaters, air-conditioning units, and hardwoods, says Bill Jacques, president-elect of the American Society of Home Inspectors.

Housing experts encourage buyers to get a home inspector to look at the property, even if it is sold as-is, so that home buyers know any repairs needed and cost estimates before they purchase the home.

“Buying a bank-owned home gives you the opportunity to enter the market at a very low price level,” says Dorcas Helfant, a past president of the National Association of REALTORS®. “You can find terrific values among foreclosures, especially if they're not in too bad shape. But, remember, these houses are discounted for a reason.”

Editor’s note: We totally agree with the 4 points made in the article and, for many years, we have consistently worked with our clients to address these problem areas. We also suggest that you call us, if you are considering buying a foreclosed home. We have access to a lot of information that does not appear in the listing and would be happy to share it with you.

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

WANT TO KNOW SOMETHING THAT YOU DIDN’T KNOW BEFORE?

"Stewardesses" is the longest word typed with only the left hand
And "lollipop"is the longest word typed with your right hand.
No word in the English language rhymes with month, orange, silver, or purple.
"Dreamt" is the only English word that ends in the letters "mt".
Our eyes are always the same size from birth, but our nose and ears never stop growing.
The sentence: "The quick brown fox jumps over the lazy dog" uses every letter of the alphabet.
The words 'racecar,' 'kayak' , and 'level' are the same whether they are read left to right or right to left (palindromes).
There are only four words in the English language which end in "dous": tremendous, horrendous, stupendous, and hazardous
There are two words in the English language that have all five vowels in order: "abstemious" and "facetious."
TYPEWRITER is the longest word that can be made using the letters only on one row of the keyboard.
A cat has 32 muscles in each ear.
A goldfish has a memory span of three seconds.
A "jiffy" is an actual unit of time for 1/100th of a second.
A shark is the only fish that can blink with both eyes.
Almonds are a member of the peach family.
An ostrich's eye is bigger than its brain. (I know some people like that also)
Babies are born without kneecaps. They don't appear until the child reaches 2 to 6 years of age.
February 1865 is the only month in recorded history not to have a full moon.
In the last 4,000 years, no new animals have been domesticated.
If the population of China walked past you, 8 abreast, the line would never end because of the rate of reproduction.
Leonardo Da Vinci invented the scissors.
Peanuts are one of the ingredients of dynamite!
Rubber bands last longer when refrigerated.
The average person's left hand does 56% of the typing.
The cruise liner, QE 2 moves only six inches for each gallon of diesel that it burns.
The microwave was invented after a researcher walked by a radar tube and a chocolate bar melted in his pocket.
The winter of 1932 was so cold that Niagara Falls froze completely solid.
There are more chickens than people in the world.
Winston Churchill was born in a ladies' room during a dance.
Women blink nearly twice as much as men.
All the ants in Africa weigh more than ALL the Elephants!!

Now you know (a little) more than you did before!!

WHAT CAN WE DO FOR YOU THAT THE INTERNET CAN'T?

Mon, 30 Jan 2012 01:00:00 GMT

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.

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.

SO, WHAT DOES OUR LOCAL SURVEY TELL US?

Mon, 23 Jan 2012 01:00:00 GMT

January 23, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

SOUTHERN COLORADO ECONOMIC FORUM PREDICTS GROWTH IN 2012

Last Thursday, we had the opportunity to attend the economic forecast breakfast of the SCEF, at the Cheyenne Mountain Resort. The event was sponsored by VectraBank. About 240 people attended the meeting which featured presentations by Ted Mossman, Pikes Peak Market President of VectraBank Colorado, Dr. Thomas Zwirlein, Professor of Finance at UCCS, and George Feiger, President and CEO of Contango Capital Advisors.

The SCEF is forecasting a 2-3% growth for our region in 2012, primarily as a result of the troops returning to our area from Afghanistan.

Dr. Zwirlein stated he was a little more optimistic than he was last fall, when the forum released its forecast for the year.
“National employment figures are improving, industrial production is looking better and the number of housing permits is getting back to a more normal level”.

By the end of the year, Colorado metro areas are expected to have recovered 48% of the jobs lost since the peak, on par with the recovery rate for all U.S. metro areas.

El Paso County is projected to create 23,000 jobs by 2019. Meanwhile, the population is expected to increase by 100,000. “We need 43,000 jobs to keep unemployment at its current level.” Dr. Zwirlein said. “We need 58,000 jobs to get it back to 5% unemployment.

The attendees at the forum seemed upbeat about the coming year, but agreed that our major problem will be creating more jobs.

AN OVERVIEW OF REAL ESTATE MEDIA SHOWS THAT BETTER TIMES ARE NOW HERE

As we read the various resources for Real Estate news and information, it is obvious that the mood of the “experts” is upbeat. As evidence of this optimistic view of the Real Estate market, we offer these examples of recent news items:

• DECEMBER EXISTING-HOME SALES SHOW UPTREND (Realtor Magazine) ”Record-low mortgage rates, job growth and bargain home prices are giving consumers the confidence they need to enter the market. These are the early signs of what may be a sustained recovery.” (Lawrence Yun, chief economist for the National Association Of Realtors)

For all of 2011, existing-home sales rose 1.7% to 4.26 million from 4.19 million in 2010, and are expected to increase 12% this year, following a 2% jump last year, according to Moody’s Analytics.

Single-family home sales increased 4.6% to an annual rate of 4.11 million in December, up from 3.93 million in November, and are 4.3% higher than the 3.94 million-unit pace a year ago.

NAR President Moe Veissisaid is quoted as saying, “More Buyers are expected to take advantage of market conditions this year. 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. When people buy homes, they stimulate a lot of related goods and services”.

• BUILDERS FEEL THE MOST UPBEAT IN MORE THAN 4 YEARS (Realtor Magazine) Builder confidence is at its highest level since June 2007. For the fourth consecutive month, builder sentiment for newly-built, single-family homes was on the rise, according to the National Association of Home Builders and Wells Fargo Housing Market Index.

USA Today is quoted as saying, “Investors are starting to get optimistic about the possibility of a rebound too, and are turning to homebuilding stocks. These equities have recently outperformed the broader stock market, and the S&P 1500 homebuilding index has increased 38% since mid-October”.

• 2012 IS THE YEAR OF THE POLITICAL ECONOMY (RISMedia) “Consumers seem to have gotten out of their summer rut due in large part to improving labor market conditions and improving attitudes toward employment prospects and future income. As consumer sentiment shows signs of improvement, so do recent housing indicators, which are trending in a positive direction, with incremental improvement expected to continue through 2012.”

• HOT RENTAL MARKET OFFERS REAL ESTATE OPPORTUNITY (INMAN NEWS) The Rental market has gotten hotter. Phillip Lee, co-founder and CEO of RentMatch is quoted as saying, “Buying a house has always been the American dream, but rentals are the American reality, right now. Economic uncertainty, credit histories marred by foreclosures and short sales, and strict lending standards have helped keep many potential Homebuyers off the market, contributing to a rental boom”.

This is good news for Investors, however, keep in mind that, because of low home prices and record-low mortgage rates, housing affordability is now at a 40-year high. So, because rents are rising and house payments are falling, it’s getting to the point where it makes more sense for people to buy. (Ed. Note. Give us a call at 598-3200, or 800-677-6683(MOVE), to explore your options. Now might be the right time for you to make that decision to buy).

• CORELOGIC SAYS HOUSING MAY TURN THE CORNER IN 2012 (DSNEWS) Mark Fleming, CoreLogic’s chief economist, says housing statistics and the duration of the downturn indicate 2012 may be the year the housing market begins to turn the corner.

“The time is right in 2012 for prices to begin growing again”, Fleming said, “and housing affordability will put a floor under any further significant declines”.

• FREDDIE MAC APPROACHES 2012 WITH ‘CAUTIOUS OPTIMISM’ (DSNEWS) Frank Nothaft, chief economist for Freddie Mac, says Freddie Mac expects a 2%-5% increase in home sales in 2012, according to the GSE’s U.S. Economic and Housing Market Outlook for January. He states, “Housing is starting to raise hopes for continued gradual economic recovery”.

Citing a survey from the Mortgage Bankers Association, Mr. Nothaft points out that, “Almost 80% of households say now is a good time to purchase a home”.

• SALES STIR HOPE FOR HOUSING MARKET (The Wall Street Journal Jan. 21, 2012) The article points out that the increase in sales in 2011 was the result of low mortgage-interest rates, low prices, active Investor-Buyers and increasing consumer confidence. As a result, the supply of homes listed for sale is at the lowest level since 2006 and offers a glimmer of hope that the housing market could be starting to climb out of the downturn. ..(Ed. Note: That’s certainly the situation in Colorado Springs. Surveys show that we are better off than most other major metropolitan areas in the U.S and are more likely to see a quicker recovery.).

SO, WHAT DOES OUR LOCAL SURVEY TELL US?

Now, all of the above-referenced sources have been fairly accurate in the past in identifying trends in housing, but we have an even better measure of the condition of the local housing market, namely, the annual, official- but-unscientific, Harry Salzman Survey of Home Improvement Stores. We take this survey by asking the Managers of our local Lowe’s, Home Depot and Ace Hardware outlets a simple question……We ask them, “How’s business?”

Last week, as we conducted this survey, the answers of all of these Managers were unanimous. “Business is booming”, they tell us.

“Homeowners are fixing up their homes like we haven’t seen in a long time. They seem to feel better about the future and they are now willing to put more money in their homes …either to get them ready to sell, or, just to enjoy their homes more”.

These comments reinforce the article in the Wall Street Journal (Friday, Jan. 20, 201) that declared, “HOMEOWNERS STOP WAITING TO SPRUCE UP”. The article points out that, “…Americans are stepping up spending on home improvements for the first time in years”.

The bottom line is that consumers seem to be more confident in the economy and are willing to start spending, again. That results in more local jobs and more tax revenues to pay for local government services.

2012 is beginning to look really good. It’s about time !!!!

LATEST STATISTICS

CLICK HERE to see the latest Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

LEXIPHILES WILL LOVE THESE

To write with a broken pencil is pointless.
When fish are in schools they sometimes take debate.
A thief who stole a calendar got twelve months.
When the smog lifts in Los Angeles , U.C.L.A.
The professor discovered that her theory of earthquakes was on shaky ground.
The batteries were given out free of charge.
A dentist and a manicurist married. They fought tooth and nail.
A will is a dead giveaway.
If you don't pay your exorcist you can get repossessed.
With her marriage, she got a new name and a dress.
Show me a piano falling down a mineshaft and I'll show you A-flat miner.
You are stuck with your debt if you can't budge it.
Local Area Network in Australia : The LAN down under.
A boiled egg is hard to beat.
When you've seen one shopping center you've seen a mall.
Police were called to a day care where a three-year-old was resisting a rest
Did you hear about the fellow whose whole left side was cut off? He's all right now
If you take a laptop computer for a run you could jog your memory.
A bicycle can't stand alone; it is two tired.
In a democracy it's your vote that counts; in feudalism, it's your Count that votes
When a clock is hungry it goes back four seconds
The guy who fell onto an upholstery machine was fully recovered.
He had a photographic memory which was never developed.
Those who get too big for their britches will be exposed in the end.
When she saw her first strands of gray hair, she thought she'd dye.
Acupuncture: a jab well done.

PPAR RELEASES YEAR-END REAL ESTATE STATISTICS

Mon, 16 Jan 2012 01:00:00 GMT

January 16, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

PPAR RELEASES YEAR-END REAL ESTATE STATISTICS

The Pikes Peak Association of Realtors has just released the 2011 Sales and Listing statistics for the Pikes Peak area. Here are some of the more significant statistics contained in this year-end PPAR report:

• The total number of single-family home sales in 2011 was up 3.3% over 2010 (8459 vs. 8185)
• The number of home sales in December of 2011 (651) were 3.5% higher than December of 2010
• 2011 was the sixth-straight year of year-over-year increases in sales
• The average sales price for a home in 2011 was 4.9% less than in 2010 ($217,829 vs. $229,152)
• Our “For Sale” inventory as of Dec.31, 2011 was 24.1% less than it was in 2010 (3285 vs. 4327)
• In December of 2011, the typical local home sold for 97.5% of the Sellers’s listing price.

One big reason for the reduction in inventory is probably that many Sellers have removed their homes from the market, either because they were not highly motivated to sell, or, because they were not willing to list their homes at a realistic price.

The current 2.5% difference between listing prices and sales prices indicates that today’s Sellers are being more realistic about their expectations. Because “All Real Estate Is Local” you would be wise to consult with a qualified Realtor who has experience in your specific neighborhood, before you list your home. We would be happy to assist you with that task.

If you would like to find out what a realistic selling price for your home would be in today’s market, just give us a call. We would be happy to discuss a realistic price for your current home, for your next home, or for an investment property. Call us at 598-3200, or, 800-677-6683 (MOVE). There are a lot of excellent deals out there right now.!!!

All-in-all, the year-end numbers give us reason to believe that 2012 will be a better year for Real Estate than 2011 was. The statistics and the experts agree that 2012 should show a modest rise in sales and prices (probably around .2% in 2012 and .3-.4% in 2013).

To see a complete copy of the PPAR Sales and Listing statistics for December, 2011, CLICK HERE

HOME AFFORDABILITY NOW AT 1971 LEVELS ….WOW!!!

Realtor Magazine (Jan. 11, 2012) tells us that, because of falling home prices and record-low mortgage rates, home affordability is at 1971 levels, according to the U.S. Department of Housing and Urban Development.

Home owners are bringing in nearly double the median income they need to cover the cost of an average home, HousingPredictor reports.

Bob Nielsen, chairman of the National Association of Home Builders, said, “With interest rate at historically low levels and markets across the country beginning to improve, home ownership is within the reach of more households”.

As a result of these factors, home sales have been ticking up, according to the National Association of Realtors.

Some of the other signs that things are getting better;

• Clear Capital says home prices in 2012 will go up slightly (0.2%). This will represent the first rise since 2006 and will put national home prices near levels not seen since 2001. Half of the 50 major metro markets included in the ClearCapital annual survey are expected to post gains for the year.
• Foreclosures across the U.S. decreased 34% in 2011, according to RisMedia. In fact, December activity hit a 49 month low, even though scheduled auctions were up in the fourth quarter.

And don’t forget, another positive factor to consider as you make your decision about buying that new home is the deductibility of your mortgage interest payments. As an example, if you are in a 28% tax bracket and your mortgage interest rate is 3.75%, your mortgage interest deduction would effectively reduce your mortgage-interest expense to 2.75% out of your pocket. That really makes home ownership a realistic possibility for many people.

Also, as you consider buying that new home, you might consider is a 15 year mortgage, rather than the traditional 30 year mortgage. Depending upon your circumstances, the 15 year mortgage can cut your mortgage interest rate even further. Here again, we will be happy to explain all of your options and the tax advantages that are available to you.

Give us a call at 598-3200, or 800-677-6683(MOVE).

WHAT ARE SELLERS DOING TO MAKE THEIR HOMES MORE ‘BUYER FRIENDLY’ ?

Some of the ‘extras’ that Sellers are now using to ‘sweeten the deal’ are:

• Reducing prices
• Paying closing costs
• Making deferred repairs
• Buying home warranties
• Paying originations fees or points

Sellers are also using ‘staging’ to make their homes more appealing to prospective Buyers.

Give us a call to discuss how we might market your home to make it a more appealing prospect for Buyers.

CONSUMER CONFIDENCE IS RISING

Here are some interesting results from the recent Fannie Mae national housing survey :

• Most respondents believe home prices will edge up at least 0.8% in 2012.
• 40% expect their financial situations to improve in 2012
• More than 20% said their incomes are significantly higher than they were a year ago

Fannie Mae chief economist Doug Duncan summarized the survey results by saying, “There is marked improvement in consumer sentiment regarding the direction of the economy, personal finances and future home price expectations”.

Ironically, “This increase in optimistic Americans is tempered by overall consumer attitudes that remain at depressed levels with more than two-thirds of those interviewed saying the economy is heading down the wrong track”.

So, what’s the bottom line? You tell me!!!

MORTGAGE RATES STILL HOLDING, BUT WHAT HAPPENS IF FHA GETS IN TROUBLE?

Freddie Mac recently released the results of its Primary Mortgage Market Survey, showing mortgage rates easing to new all-time record lows. The average for the 30-year fixed mortgage rate has been below 4% for six consecutive weeks.

At the same time, the FHA’s cash reserves have shrunk and that agency may have to seek a capital infusion from the taxpayers, if the housing slump continues, according to Bloomberg BusinessWeek. (Jan. 15, 2012).

If the government does end up giving FHA additional funds, then we can expect mortgage rates to rise, which would negatively affect he entire housing market.

Bottom Line: If you are thinking of buying a home, you had better buy now, before rates start going up.

EL PASO COUNTY APPROVES PLAN TO EASE RESTRICTIONS ON BUSINESS

On Thursday, the Barriers to Business committee brought its first set of recommendations to the El Paso County commissioners, who unanimously approved them. The vote reduces the number of commercial and industrial zones in unincorporated areas of the county from five to three, and axes a five-year limit on special uses and variances.

The changes give businesses more opportunity to go into areas where they might not have been allowed before, and lessens the need for special hearings, application fees and a whole lot of forms.

Commission chair Amy Lathen said, “It’s more common sense and it eliminates time, paperwork and cost. It gives businesses more opportunity, but does it while preserving the master plan of the area”.

Bottom line: To us, it sounds like a step forward in attracting more businesses to our area. Good work, guys!!

NEW MERGED CHAMBER/EDC HOPES TO FOCUS ON EDUCATION

In a “State of Education” luncheon on Wednesday, Dave Csintyan, president and CEO of the Greater Colorado Springs Chamber of Commerce, said the business community needs to partner with public schools to ensure a well-trained future workforce. “Our newly merged organization has to be thematically relevant and part of that should be education” he stated.

Csintyan said he realized the importance of the business community’s input when he recently encountered a young store clerk who couldn’t figure out how to make change for an $18.16 purchase from a $20 bill.

Dr. Nicholas Gledich, Colorado Springs School District 11 superintendent, said he welcomes the business community involvement in the schools. The economic benefits to the business community of graduating 100% of the student body equal millions of dollars, he stated. In Colorado Springs, 2,000 students dropped out of the class of 2010, he said. If half of those graduated they would have contributed $11 million to the economy.

Sounds like all of us would benefit if the Chamber could help our school districts improve their graduation rates.

JOKE OF THE WEEK

"Do you believe in life after death?" the boss asked one of his employees.
"Yes, sir," the clerk replied.
"That's good," the boss said. "After you left early yesterday to go to your grandmother's funeral, she stopped in to see you."

WHAT'S GOING TO HAPPEN WITH REAL ESTATE IN COLORADO SPRINGS IN 2012?

Mon, 09 Jan 2012 01:00:00 GMT

Jan.9, 2012

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

HOW ABOUT THEM BRONCOS !!!! WHAT A WAY TO START THE YEAR !!!

WHAT'S GOING TO HAPPEN WITH REAL ESTATE IN COLORADO SPRINGS IN 2012?

Many of our friends and clients ask us for our prediction of where Real Estate is going this year. So, here's our take on what's going to happen.

First of all, Colorado Springs Real Estate has not felt the recession as badly as most other parts of the country. Add to that the fact that we are better poised for a recovery than most other cities. As we cited in previous issues, both Forbes and Kiplinger have listed Colorado Springs as one of the top ten places where recovery will be the fastest.

So, based upon the national picture, the local picture and my 39 years of experience in our local market, my opinion is that we should see a marked increase in home-values and home sales in 2012. As evidence that this increase will take place, just consider the following factors:

• Both National and local statistics indicate that we have reached bottom, where home-prices are concerned. NAR is projecting an increase in home values of 2% in 2012, 3% in 2013 and 4% in 2014. My prediction is that we will exceed those increases by at least another 1%.
• In Colorado Springs, there is an increasing demand for housing based upon an increase in our military population (with hundreds of troops returning from Iraq and Afghanistan) plus our typical population increase because of retirees (our city is one of the prime retirement cities in the country) and a slow but steady increase in businesses (as a result of our city council actively promoting our city nationally).
• There is a sizable pent-up demand for housing because of tight mortgage credit conditions which have been artificially holding back sales for several years….and the government is eagerly seeking to loosen up the requirements for borrowers (See “FED URGES ACTION ON EASING LENDING RESTRICTIONS”, below)

The bottom line is that the Colorado Springs Real Estate market looks very good in 2012, for Homeowners, Homebuyers, Homesellers and Investors alike.

Call us to discuss what these trends could mean for you. 598-3200, or, 800-677-6683(MOVE).

EXISTING HOME SALES CONTINUE TO CLIMB IN NOVEMBER

Realtor Magazine reports (12/21/2011) that existing home sales rose again in November and remain above a year ago, according to NAR.

Lawrence Yun, NAR chief economist said more people are taking advantage of the buyers' market. "Sales reached the highest mark in 10 months and are 34% above the cyclical low point in mid-2010 ....A genuine recovery appears to be developing. We've seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today's market for buyers with long-term plans".

This is all great news !!!

MORTGAGE RATES MATCH RECORD LOWS THIS WEEK

Daily Real Estate News reports (Jan. 6, 2012) that, for the fifth consecutive week, 30-year fixed-rate mortgages have averaged below 4%, which was unheard of until a few months ago.

30-year fixed-rate mortgages are averaging 3.91%, compared with 4.77% one year ago.
15-year fixed rate mortgages are averaging 3.23%, compared with 4.13% one year ago.

If you have not refinanced, you should seriously consider it. You could save hundreds of dollars a month.

Call us, if you would like to discuss this opportunity, at 598-3200,or 800 677-6683(MOVE).

COLORADO SPRINGS NUMBER OF FORECLOSURES FALLS AND BUILDING PERMITS PREDICTED TO RISE

The Gazette (Jan.4, 2012) reports that foreclosure filings in 2011 fell 25.4% in 2011, compared with 2010. This means that fewer homeowners were in trouble with their mortgages. Public Trustee Tom Mowle says he expects that trend to continue.

This reduction in foreclosures is accompanied by a forecast by the board president of the Housing and Building Association, John Cassiani, that there will be a 55 – 10% increase in building permits in 2012.

“It’s not going to be a rapid jump, but I think the uptick has started”, Mr. Cassiani said.

Considering both of these trends, things are looking very good for 2012 !!

AREA JOBLESS RATE DROPS TO LOWEST LEVEL IN 2 YEARS

The Gazette reports (Thursday, Jan. 5, 2012) that the Colorado Springs-area unemployment rate fell in November to its lowest level in more than two years. The area jobless rate fell to 9%, matching September 2009 as the lowest rate in the past 26 months.

At the Pikes Peak Workforce Center, a spokesman said that they are seeing a lot of recent hiring by call centers, a few high-tech companies and some seasonal jobs, such as landscaping. Sales and banking are also strong areas for hiring.

FED URGES ACTION ON EASING LENDING RESTRICTIONS

The Wall Street Journal (Thursday, Jan 5, 2012) reports that the Federal Reserve, in an unusual foray into housing policy, has called for more aggressive action from Congress to loosen mortgage-lending standards. The Fed stated that tight lending policies were holding back the recovery. They also urged more aggressive use of Fannie Mae and Freddie Mac to support a housing recovery.

The Fed's argument is that, although mortgage rates have been at record lows, there are many borrowers who have not been able to take advantage of the low rates because of blemishes on their credit histories, uneven incomes, or because their home values have left them with no, or very low equity.

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.

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

LATEST STATISTICS

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area. Note that these statistics are generated every month by the Pikes Peak Association of Realtors and they are one of the important tools that we use in assisting Buyers and Sellers to establish realistic listing/buying prices. Also note that the data is broken down into specific neighborhoods in the Pikes Peak area.

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

As you can see from the statistics, the local market, mortgage rates and trends are constantly changing, even within our local neighborhoods. That’s why you should seek help and advice from a reliable, professional Realtor.

If you are looking for a new home or an investment property, we can show you how to receive the most current listings sent directly to your computer
We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

JOKE OF THE WEEK

So, Brett Favre dies and goes to heaven. Because he was such a famous person, God himself shows him around. After showing Brett all of the sights, God shows Brett what his home will be for all eternity….. a beautiful cottage, with a Packers flag in the front yard.

Brett thanks God, but then notices the house next door, which is a huge mansion with a swimming pool, a four car garage, a heliport in back, several orange and blue banners hanging from the porch and a giant Broncos flag flying from a pole in the front yard.

Brett says, “Lord, I don’t want to seem ungrateful, but I played in the NFL for many years, was MVP for several seasons, I won several Super Bowls and still own many passing records. …and I end up with this little cottage in Heaven? Tim Tebow, on the other hand has only won one measly playoff game, and he gets that huge mansion? ..It just doesn’t seem fair. !!!

God replies, “Oh no, Brett. You don’t understand. That mansion isn’t for Tim Tebow …That’s my house “

ASKING TOO MUCH? REAL ESTATE AGENTS MAY NOT LIST YOUR HOME

Mon, 12 Dec 2011 01:00:00 GMT

December 12, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

LOCAL JOBLESS RATE DROPS – AND 2012 LOOKS EVEN BETTER
Gazette, Wed. Dec. 7, 2011

The unemployment rate in the Colorado Springs area dropped in October to its lowest level in nearly two years, according to the U.S. Bureau of Labor Statistics

The local jobless rate fell to 9.2% in October from 9.3% in September, matching November 2009 as the lowest rate in the past two years.

Tom Binnings, a senior partner in Summit Economics, LLC, a local economic research and forecasting firm said, “We continue to see slight improvement in the local economy, despite the gloom-and-doom forecasts that the nation is going to head back into a recession because of the European debt crisis”.

Other experts were even more optimistic, with the University of Colorado at Boulder Leeds School of Business forecasting 23,000 more jobs in Colorado in 2012, on top of the estimated 27,500 jobs the state gained this year.

Service providers will supply most of the growth, according to the forecasts.

HOW IS HOUSING DOING? THE EXPERTS SAY THINGS ARE LOOKING UP

HousingWire (Dec. 12, 2011) reports that Barclays Capital predicts a housing recovery buoyed by improving job numbers and the fact that prices for undistressed homes will have stabilized without government support.

“In the absence of government homebuyer incentives, prices for non-distressed homes sales have stabilized for almost a year,” says Barclays analyst Stephen Kim. “This is the most important trend in the housing industry right now, and we are amazed at how little attention it has been getting from the media and the street. This stability on the part of non-distressed prices has occurred despite a very high share of distressed activity and continued declines in overall prices.”

Barclays said recent economic data – including higher job creation – point to some improvement potential in the sector.

Fannie Mae’s November National Housing Survey also sees a rise in consumer sentiment in November, as improved economic data pushed home price expectations into positive territory, for the first time in six months.

According to the Fannie Mae report, more respondents expect home prices to increase by at least 0.2% over the next year.

All of these factors are on the minds of voters as they approach the coming elections. In fact, in a recent survey by HouseLogic.com, the consumer website from the National Association of Realtors, voters say that jobs and the housing market will be two of the most important issues for them as they head for the polls in November.

With unemployment still high, it is easy to see why so many Americans are concerned about the job market, however, employment and the housing market are inextricably linked because economic growth and job creation cannot occur without a housing recovery.

Housing accounts for more than 15% of the U.S. Gross Domestic Product – It’s a key driver of the national economy. Home sales generate jobs. In fact, NAR estimates that, for every two homes sold, one job is created. And new spending on homebuilding products, furniture, etc. also have a significant economic impact.

ASKING TOO MUCH? REAL ESTATE AGENTS MAY NOT LIST YOUR HOME

In the Gazette, Tuesday, Dec. 6, 2011, we were interviewed as to why local real estate listings are down to their lowest point in nearly seven years. In the article, we pointed out that home listings in November plummeted to 3,667 – the fewest in any month since 3,557 in January 2005. (See our Sales and Listings statistics, below).

As we noted in the interview, there are several reasons for the decline, but the most widespread reason is that homeowners are reluctant to list their homes at prices which are below their expectations. Unfortunately, in most cases, their expectations are too high, based upon the decline in values which the recession has caused.

The good news is that the decline in prices seems to have come to a halt, and many experts are predicting a modest rise in home prices in 2012. When that rise occurs, many homeowners who have been holding back will probably list their homes for sale, and the selection of homes available to Buyers will dramatically expand.

If you have been reluctant to list your home because you are concerned about the current market prices, give us a call to discuss the current value of your home. Prices vary from neighborhood to neighborhood and the market is changing daily. You might be pleasantly surprised to see what prices your home might bring.

Call us at 598-3200 or 1-800-677-6683 (MOVE).

LATEST SALES AND LISTING STATISTICS AS OF NOVEMBER 30, 2011

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

3 LOCAL SCHOOL DISTRICTS EARN HIGHEST COLORADO GRADES

The Gazette (Dec. 12, 2011) informs us that three local school districts are among 18 statewide that received the highest marks under the Colorado Department of Education’s new accreditation standards.

For the second consecutive year, Academy School District 20, Cheyenne Mountain School District 12 and Lewis-Palmer School District 38 were deemed “accredited with distinction”.

Congratulations to our three champions and it is also encouraging to note that none of our local districts were given the lowest designation by the new accreditation system.

EDC LUNCHEON RECOGNIZES 22 LOCAL COMPANIES

On December 8, 2011, the Colorado Springs Regional Economic Development Corporation recognized 22 owner/executives from local companies which had relocated to, or expanded their existing operations in the local area during 2011.

The awards luncheon was a good indication of how the EDC is helping to build our city and strengthen our economy.

To see more about these expanding companies, CLICK HERE

Nice work, guys. Keep it up.

COLORADO RANKS 9TH AMONG HEALTHY STATES

The Colorado Springs Business Journal reports that Colorado ranks ninth among states with a healthy population, according to America’s Health Rankings. That’s an increase of four spots from last year, and once again, Colorado was named the least obese state.

The rankings are published by the United Health Foundation, the American Public Health Association and the Partnership for Prevention.

The state earned the Above-average ranking because of low levels of air pollution, lower levels of obesity and low prevalence of diabetes.

However, the report also states that our state has 814,000 obese people, an increase of 360,000 individuals over the past 10 years.

Overall, the country did not improve in health standards, meaning that there was a total balance between improvements and detriments in all 23 areas measured.

HEY, IT’S THE SLOW TIME OF THE YEAR – COME VISIT US AND HAVE A CUP OF COFFEE !!

This is the slow time of the year for Realtors, and most people are not looking to move or to list their homes for sale during the holidays, so we are getting lonely. Give us a call and come by for a visit and a cup of coffee !!

We appreciate our readers and we enjoy hearing from you. We get a lot of comments and suggestion about our weekly update and we want to tailor our weekly update so as to give you the most helpful Real Estate information available. Your input will help us improve the eNewsletter.

As a matter of fact, several of our readers have asked us where we get the information that we publish in these emails. Well, here is a partial list of the publications and sources we read on a regular basis, in order to keep abreast of the market for our eNewsletter readers:

Natl. Assoc. of Realtors news
Colo. Assoc. of Realtors news
Pikes Peak Assn. of Realtors news
The Gazette
Wall Street Journal
Bloomberg Businessweek
Forbes Magazine
Worldwide ERC (Relocation Industry)
Housing Wire
Inman News – Daily
Colo. Springs Business Journal
DS News – Daily
Relocation Directors Council
RIS Media – Daily
UCCS Quarterly Updates and Estimates (The Que)

And, if you would like us to add anyone to our subscription list (It’s free), just let us know.

JOKE OF THE WEEK

When Prince Phillip was visiting the United States recently, the Commandant of West Point invited him to visit West Point, review the troops and see some of our modern weapons.

The parade commenced with a battalion of tanks, followed by a division of infantry, followed by armored personnel carriers and mobile artillery. There were mobile ballistic missile launchers, electronic jamming vehicles, and throughout the entire time the formations were overflown by squadrons of the most advanced interceptors, fighters, and long-range tactical and strategic bombers.

Prince Phillip was suitably impressed. Then he noticed that, way back at the end of the parade, there was a disorganized, messy bunch of men in rumpled suits tagging along behind the last artillery pieces.

"Who are they?" he asked.

"Ah," said the General, "those are our economists!"

"But what are economists doing in a military parade?” asked Prince Phillip.

"Your Highness” replied the General, "The rest of our weapons can wipe out specific targets, but those men can destroy an entire country”

"Black Friday" is still available for Real Estate Buyers

Mon, 05 Dec 2011 01:00:00 GMT

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

"BLACK FRIDAY" IS STILL AVAILABLE FOR REAL ESTATE BUYERS

The great deals that Buyers line up for at retail stores on the day after Thanksgiving are still available in spades for real estate Buyers.

In real estate, the period between Thanksgiving and Christmas is the slowest time of the year. Most people are so busy buying presents and Christmas trees, that they don't have time to buy houses.

So, if you're a prospective Buyer, this time of the year presents a great opportunity to get some wonderful deals on houses. Not only are prices and mortgage rates low, but Sellers are not getting any offers, so they are very eager to negotiate with the few prospective shoppers who are willing to buy during this slow time of the year.

Now, if you're a Seller, this means that you should make sure you are making your home look as good as possible during this slow time of the year. Price it right and make it look good, both inside and outside.

Most real estate professionals advise Sellers to list their homes during the holiday season rather than waiting, citing more serious Buyers and less competition among properties, according to a recent survey.

In their recent survey of 429 real estate professionals, Holiday Home Selling Survey found that 60% said they would always advise a Seller to list a home during the holiday season and agreed that "it's a good time to sell".

The vast majority of respondents, 79 %, said more serious Buyers were one of the biggest benefits of listing during the holidays, while 61 percent said less competition among homes was a plus.

But the biggest challenge, noted by 63% of respondents, was keeping a home "open house ready," meaning clean and staged, during this time of year.

The majority of respondents, 74 percent, said pricing a home to sell was even more important during the holiday season, and 40 percent said staging a home was more important at this time of year. Nearly a third said being flexible with contract terms such as move-in dates and when closing costs were paid was more essential during the holidays.

The way a home is staged during this time of year is also significant, according to the survey. Almost all respondents said they advised Sellers to put up some seasonal decorations.

Eighty percent of respondents said they encourage Sellers to light their fireplace when staging a home during the holiday season, while 62 percent said they suggested Sellers update outdoor lighting because the Buyer is more likely to see the home at night due to shorter days.

Other popular staging advice for Sellers included using winter-scented home fragrances before an open house, making the home feel more cozy through reading nooks and blankets on couches and beds, setting the table to showcase holiday entertaining, and playing seasonal music that is not specific to a particular holiday, the survey said.

If you would like to find your new home before Christmas, or sell your new home before the end of the year, just call us at 598-3200, or, 800-677-MOVE (6683).

GAZETTE REPORTS "HOUSING MARKET IN POSITIVE TERRITORY"

On Friday, Dec. 2, 2011, the Gazette reported that the pace of homebuilding increased last month in the Colorado Springs area while foreclosure filings fell, continuing a positive trend for the local housing market over the past few months.

Single-family homebuilding permits in El Paso County totaled 122 in November, up 27.2% from the same month last year, according to figures released Thursday by the Pikes Peak Regional Building Department. Year-over-year permit totals have increased in five of the past six months.

Local economists and housing officials track single-family permits as a measure of the health of the building industry and economy. When the economy is going well, permits are on the rise; when the economy goes south, so does the pace of homebuilding.

Permits are also tracked by local governments; lumber, drywall and other building materials that are purchased to construct houses generate millions in sales tax revenues that governments use to fund their annual budgets.

THERE’S GOOD NEWS IN THREE MORE AREAS

Three recent news stories all point to the fact that things are looking up.

First, NAR reports that the inventory of homes for sale is getting smaller. That's an indication that the glut of foreclosed properties which was artificially distorting inventories and prices is being absorbed by the market. That's good news. It means the real estate market is returning to normal.(The 'not so good' reason for this shrinking inventory is that some potential Sellers are 'underwater' with their mortgages and are waiting for their equity to come back, before they list their homes for sale. However, the rising prices of homes for sale could solve that problem within the next year.)

In fact, just this week we were interviewed by the Gazette to comment on the shrinking inventory of homes for sale and we pointed out that our current inventory of available homes (3667) is actually the lowest it has been since January of 2005, when it was 3725.

The Second piece of good news is that there was a jump in pending home sales in October.

Realtor.org. November 30, 2011, reports that pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010 when it stood at 85.5.

Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from Buyers who normally would have entered the market in recent years. We hope this is indicates more Buyers are taking advantage of the excellent affordability conditions,” he said.

“Many consumers are recognizing that home Buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,” Yun added.

Locally, home sales totaled 758 in October, a 20% jump over the same month last year. It was the fourth consecutive month of year-over-year increases in home sales.

The third piece of good news is that the Wall Street Journal (Dec. 1, 2011) reported that private businesses added 206,000 jobs in November, according to their latest survey.

So, SMILE !!!! Things are getting better every day !!!

STRONG TEMPTATIONS FOR HOME BUYING

Daily Real Estate News | Tuesday, November 29, 2011

The monthly cost of owning a home is more affordable now than in the past 15 years, and is less expensive than renting in numerous cities, according to The Wall Street Journal’s third-quarter survey.

Low home prices mixed with low mortgage rates—hovering at 4 percent or even lower—are creating an appealing Buyer’s market, analysts say. For example, buyers today have a 77 percent increase in their borrowing power compared to 1991, The Wall Street Journal points out that, in 1991 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage, whereas today the home owner taking advantage of current low rates can get a $350,000 loan for that same mortgage payment amount.

To illustrate, in 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage, whereas today the home owner taking advantage of current low rates can get a $350,000 loan for that same mortgage payment amount.

In the 28 cities that The Wall Street Journal tracked, it found monthly mortgage payments on the median-priced home—including taxes and insurance—to be lower than the average rent levels in 12 of the metro areas.

Nationwide, apartment rents are expected to rise by about 4 percent this year, which may make the owning vs. renting picture tilt even higher, according to some analysts.

BOOMERS MORE WILLING TO HELP KIDS WITH DOWN PAYMENTS
Daily Real Estate News | Wednesday, November 30, 2011

Two-thirds of baby boomers say they want to help their children or grandchildren with a home down payment, according to a study of more than 1,000 baby boomers age 45 and up conducted by Meredith Research Solutions for Better Homes and Gardens

In fact, one in five boomers surveyed say they've already loaned their children money, cosigned a mortgage, or given a cash gift for a down payment on a home.

Even baby boomers not considered wealthy are willing to offer help on down payments. While baby boomers who make more than $75,000 a year were found to be the most willing to offer help, 46 percent of baby boomers who make less than $75,000 per year say they also plan to help their child with a future home purchase, according to the survey.

So why are baby boomer parents so willing to help their children out with a home down payment? About 75 percent of boomers said they believe owning a home is a good investment for their children, and 58 percent said they think it’s still part of the American dream.

LATEST SALES AND LISTING STATISTICS AS OF NOVEMBER 30, 2011

Some of the more pertinent data contained in these statistics are median and average prices and price spreads within neighborhoods.

We would be happy to discuss these statistics with you and to answer any questions you might have about how they can be used. Just give us a call at 598-3200, or, 800 877-MOVE (6683).

JOKE OF THE WEEK

Are Things Looking Up? Here's a few sources that think so.

Mon, 21 Nov 2011 01:00:00 GMT

November 21, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

BREAKING NEWS …U.S. WILL REMAIN A NATION OF HOMEOWNERS

The U.S. will not become a nation of renters; there are just too many benefits, both financial and otherwise, to own versus rent. That’s according to the combined findings of several recent studies presented during the "Buyer or Renter Nation?" session held during the 2011 Realtors Conference and Expo last week and also the NAR annual survey which was released last week.

One analysis of homeowners which spanned a 31-year period compared the ownership benefits in terms of appreciation and interest deductibility and costs homeowners incur with down payment, taxes, insurance and maintenance and, in the analysis, 84% of homeowners came out ahead.

According to the most recent data from the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s.

"We knew that homeowners, on average, accumulate more wealth than renters", said Ken Johnson, editor, Journal of Housing Research at Florida International University. "These findings indicate that homeownership is a self-imposed savings plan."

"Homeownership is more affordable today than at any time over the last 30 years", Johnson said.

The NAR survey shows that 78% of recent homebuyers say their home is a good investment and 45% believe it’s better than stocks.

Another analysis conducted by Johnson, Beracha, Hilla Skiba and Mark Hirschey determined that housing affordability is at record levels.

Twenty-three states are at 30-year record levels of affordability based on price-to-income ratios, and all 50 states are at record affordability levels based on mortgage- payment-to-income ratios.

Beyond the financial advantages of homeownership, Johnson also cited several studies that have demonstrated how homeownership enhances civic pride, improves voter turnout, increases personal happiness, reduces crime, and provides a better familial environment.

Some of the other data presented in the NAR survey were:

First-time buyers who financed their purchase used a variety of resources for their down-payment. 75% tapped into savings. 26% received a gift from a friend or relative, 7% received a loan from a friend or relative. 9% sold stocks or bonds. 8% tapped into a 401(k) fund.

94% of entry-level buyers chose a fixed-rate mortgage

54% of first-time buyers financed with a low-down-payment FHA mortgage and 6% used the VA loan program which requires no down-payment.

64% of all buyers are married couples

18% are single women

10% are single men

7% are unmarried couples

The biggest factors influencing neighborhood choice were (in descending order) quality of the neighborhood, convenience to jobs, affordability, convenience to family and friends, neighborhood design, convenience to shopping, quality of school district, convenience to schools, and convenience to entertainment or leisure activities.

The typical home seller was 53 years old and their income was $101,500.

The typical seller who purchased a home nine years ago realized a median equity gain of $26,000, a 16% increase, while sellers who were in their homes for 11 to 15 years saw a median gain of $57,900, or 39%. Over time, the survey findings consistently show that the longer you own, the larger your return.

From our standpoint, it was interesting to note that home buyers thought the most important services agents provide are helping find the right house and negotiating price and sales terms.

Some other interesting facts were that 91% of buyers who used the Internet to search for a home, purchased through a real estate agent, as did 70% of non-Internet users, who were more likely to purchase directly from a builder or from an owner they already knew.

Like sellers, buyers most commonly choose an agent based upon a referral from a friend, neighbor or relative, with trustworthiness and reputation being the most important factors. That explains why, after 39 years of serving the Pikes Peak Area, we rely almost completely on referrals from our friends and past clients for our business.

Give us a call to discuss your real estate needs. We will do a great job for you…just ask our past clients. Call us at 598-3200, or, 1 800 677-6683 (MOVE).

ARE THINGS LOOKING UP? …HERE’S A FEW SOURCES THAT THINK SO

Realtor Magazine (November 18, 2011) says that the housing picture is expected to brighten in 2012. They cite a forecast by Fiserv, a financial information services firm which predicts that 95% of the 384 metro areas it tracks will see home prices rise in 2012…..and a survey by MacroMarkets of 100 economists and real estate professionals that predicts a rise in home values of .25% in the new year.

Bloomberg reports that economists at J.P.Morgan Chase & Co. now see gross domestic product rising 3% in the final quarter and Morgan Stanley & Co. is looking for a 3.5%. They also predict that the strengthening economy will help lift US stock prices. They also say the economic pick-up may also push up yields on Treasury securities.

Karen Hoguet, chief financial officer for Macy’s Inc. says, "We’ll have a spectacular Christmas".

Lawrence Yun, chief economist for the national Association of Realtors is quoted in Realtor Magazine as saying, "Housing affordability is about the best it’s ever been. Investors can anticipate strong rent returns and solid home appreciation. Nor is there any reason to believe this rent growth will cool. If annual rent gains stay near 3.5%, rents will double in 20 years. If they reach 5%, rent doubling will occur in 14 years. That means home prices could also double in 14 to 20 years."

The Gazette (November 17, 2011) reports that US manufacturing is recovering from a slump, and inflation may be peaking. Strong consumer spending helped the economy grow at an annual rate of 2.5% in the July-September quarter. Retail sales rose in October, leading economists to predict similar growth in the final three months of the year.

Finally, a report issued by the Mortgage Bankers Association shows that the share of households delinquent on their mortgage payments has fallen to the lowest level since the end of 2008, offering signs that modest job gains are stemming further damage in the US housing sector.

And you thought we were the only optimists on the planet ……SMILE !!! 2012 is going to be a great year.

NAR TO THE RESCUE

The National Association of Realtors notified us last Friday that Congress had restored the loan limits for the Federal Housing Administration (FHA) for two years. This reversal by Congress represents a victory for all prospective home Buyers, for the real estate market nationally, and for the national economy.

The National Association of Realtors (NAR) had lobbied intensely for this reversal, to help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties and 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000.

The new regulation reinstates the FHA loan limits through 2013 at 125% of local area median homes, up to a maximum of $729,750 in

the highest cost markets, the floor will remain at $271,050. However, Congress chose not to apply the loan limits restoration to Fannie Mae and Fredddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115% of local area median home prices up to $625,500.

The bill also provides for a short-tern extension of the National Flood Insurance Program through December 16, 2011. NAR promised to continue to press Congress to authorize a five-year extension of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.

As the Wall Street Journal points out (Nov. 17, 2011) "Five years ago, it was too easy to get a mortgage. Today, it’s probably too hard". This reversal by Congress will help address that problem.

Good Work, NAR. We’re proud to be a member.

THE LATEST QUE IS OUT – HAVE YOU SEEN IT ???

Every quarter, the College of Business and Administration of the University of Colorado at Colorado Springs publishes the Quarterly Updates and Estimates for El Paso County. This in-depth analysis of every aspect of our local economy is a valuable tool for personal and business planning. It is full of helpful charts and graphs about the real estate market, auto sales, tax revenues, employment trends, wages and even features a measurement of the local "Misery Index".

If you would like a copy of this very informative analysis of our local economy in the third quarter of 2011, produced by Fred Crowley, chief economist for the Southern Colorado Economic Forum, CLICK HERE.

IN 2012, JUST LIKE ALWAYS, POLITICS WILL TRUMP PESSIMISM

Our annual prediction is that, because 2012 is an election year, Washington will pull out all the stops and do whatever is necessary to boost our economy, so that voters will not go to the voting booths mad. In the time-honored tradition of "Bread and Circuses", we will see steps taken to help the housing market, increase employment and put "a chicken in every pot and a car in every garage".

So, relax. 2012 should be a great year for all of us.

LATEST SALES AND LISTING STATISTICS

CLICK HERE to see the latest statistics about real estate sales and listings in the Pikes Peak area.

JOKE OF THE WEEK

Ducking into confession with a turkey in his arms, Brian said, "Forgive me, Father, for I have sinned. I stole this turkey to feed my family. Would you take it and settle my guilt?"

"Certainly not," said the Priest. "As penance, you must return it to the one from whom you stole it."

"I tried," Brian sobbed, "but he refused. Oh, Father, what should I do?"

"If what you say is true, then it is all right for you to keep it for your family."

Thanking the Priest, Brian hurried off.

When confessions were over, the Priest returned to his residence. When he walked into the kitchen, he found that someone had stolen his turkey.

Tips for selling a home in the winter

Mon, 14 Nov 2011 01:00:00 GMT

November 14, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

COLORADO SPRINGS IS LISTED AS ONE OF THE “TOP-8 HEALTHIEST HOUSING MARKETS”

Realtor Magazine (November 8, 2011) cites a survey of the healthiest housing markets in the U.S., conducted by Builder Magazine. Builder teamed with Hanley Wood Market Intelligence to compile its annual list, factoring in housing projections from Moody’s Economy.com. The list is based on projected price appreciation, population growth, income growth and improving employment picture.

As the Realtor article points out, the U.S. housing markets projected to have the biggest gains into 2012 tend to be home to major universities, strong private sector employment, or have nearby military bases. Those criteria describe Colorado Springs exactly.

Builder Magazine lists Colorado Springs as number “8” on its list, and points out that troops returning from Afghanistan will boom our economy. Local home prices are predicted to rise 2.6%. Employment is predicted to grow by 1.4% and households to increase by 1.8% in 2012.

Ain’t you glad you live here??

HOME PRICES DROPPED IN 2011 …BUT COLORADO SPRINGS IS BETTER OFF THAN MOST OTHER AREAS

Last week the National Association of Realtors released their current analysis of the previous four quarters of median home prices in the largest 150 communities in the U.S. As expected, in the four quarters ending September 30, 2011, prices declined an average of 4.7% nationally. But the good news is that Colorado Springs median home prices dropped only 3.8%. In other words, we are 19% better off than the rest of the country…..

How might this data affect your decision to buy a home now? Well, let’s look at a specific example. Let’s say you have been considering buying your $250,000 home in Colorado Springs. With a 3.5% down-payment of $8,750, that would bring the amount financed to $241,250. To that number, we must add the FHA mortgage insurance (a one-time 1.5% payment) of $3,618.75. So, the entire amount financed by the lender would be $244,868.75. In today’s market, the numbers would work out like this:

Monthly Principal and Interest payment (3.75%) $1,134

Monthly mortgage premium (.5% MIP) $102

Estimated monthly Real Estate taxes $125

Estimated monthly home insurance premium $80

Total monthly payment $1441

But that doesn’t tell the whole story. Don’t forget that, as a homeowner, you get to deduct several expenses from your taxable income. Using the example we cited, above, your annual deductions would amount to:

Home Interest payments $9,106
Property taxes (estimated) $1,500
Total $10,606

Assuming that your tax bracket is 28%, those two credits would mean an annual tax credit to you of $2,970, or $248 a month. When you deduct that tax credit, it brings down your actual cost of ownership to a monthly expense of $1,193. ($1,441 - $248)

The bottom line is that, if you are paying anything like $1,193 a month in rent, you are missing out on the opportunity to build your total worth (equity) and your estate, the ability to put a lid on your housing expense for the next thirty years (thus avoiding the constant problem of ever-increasing rents) and the satisfaction of owning your own home….And, by the way, the Gazette (Friday, Nov. 11, 2011) notes that rents in Colorado Springs soared to a record-high in the third quarter and are expected to keep climbing as demand remains strong ….In fact, if you are now living as a renter in that same home we used in our example, you are probably paying approximately $1,450 a month….That means it is costing you $257 more per month to rent that house than it would cost you to own it. …Strange, but true !!!

And, keep in mind that these numbers won’t look this good forever. The fact is that, with every passing day, as foreclosures and short-sales are absorbed back into the market, there will be fewer homes in the inventory, thus increasing prices,….also, there will absolutely be increases in interest rates (We are currently at an historically low rate) ….and, inflation is also scheduled to drive up home prices dramatically.

Bottom line: It is less expensive to own a home in Colorado Springs than it is to rent.

Call us at 598-3200, or 1-800-677-6683 to discuss this once-in-a-lifetime opportunity. Act now, and you will be sending me ‘Thank-You’ notes for the next 30 years.

FORECLOSURE FILINGS AND SALES DOWN IN EL PASO COUNTY

The Colorado Springs Business Journal reports that third quarter foreclosure filings and sales at auction were down statewide and in El Paso County. Foreclosure filings dropped nearly 25% in the third quarter of this year, according to a Colorado Division of Housing report.

The number of foreclosure home sales dropped more than a third from 746 in the third quarter of 2010 to 497 in the third quarter of 2011.

While new filings are on the rise for the year, 2011 is still shaping up to have the lowest number of foreclosure filings and sales at auction since 2009, according to the state division of housing.

Although it’s probably too soon to start singing, “Happy Days Are Here Again”, it looks like the band should begin to tune up.

SURVEY REVEALS WHY BUYERS ARE WAITING ON THE SIDELINES

According to Realtor Magazine (Nov.9,2011), a recent survey by Move, Inc. shows that 27% of Americans say they plan to buy a home in the future (with most saying in two or more years), and only 2% say they plan to purchase a home in the next 12 months. So, why are so many buyers continuing to wait when home affordability is so high and interest rates are so low?

About 23% of those surveyed say they are delaying buying a home because they are concerned about the real estate market in their local area, particularly with concerns about the future of home values, the economy and jobs, as well as difficulty in saving for a down-payment.

Nearly 35% of those surveyed say their inability to get credit or find affordable credit are the main reasons why they are putting off purchasing a home.

The survey also found that younger adults tend to spend more on housing than older adults. For example, the survey revealed that two out of five – or, about 40% of millennials, say they should spend 30% to 60% of their gross monthly income on housing. More than half of older Americans, on the other hand, say they plan to spend less than 30% of their gross wages on housing.

The survey also discovered that seven out of ten Americans say that candidates’ positions on housing will be very important to them in the 2012 presidential and congressional elections.

Survey respondents identified the following top housing priorities for the next president’s first 100 days in office:

Helping homeowners avoid foreclosure
Keeping interest rates low
Making more affordable mortgage credit available

Errol Samuelson, chief revenue officer of Move, Inc., said in a statement, “Our survey found that 27.3% of Americans still plan on buying a home. The survey illustrates candidates who share the concerns of the American people and make housing a top priority will win their confidence.”

TIPS FOR SELLING A HOME IN THE WINTER

Experts offer some of the following tips for selling a home in the winter.

Stage it:

Arrange furniture so the selling-points in the home are not overlooked

Paint rooms inviting colors

Display pictures of the home in warmer, summer months

Turn up the heat to a comfortable level. Cold homes don’t sell

Price it right

Keep sidewalks and driveways clear of snow, ice and leaves – giving potential buyers a clear path to your front door.

Light it up:

Keep all the light on, even when you’re not there

Open the blinds and drapes

Hire me as your agent (I just stuck that in there, to remind you that a good agent can help you get your house sold. Give us a call at 598-3200, or, 800-677-6683 (MOVE).

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

THERE WAS LIFE BEFORE THE COMPUTER

An application was for employment
A program was a TV show
A cursor used profanity
A keyboard was a piano!

Memory was something that you lost with age
A CD was a bank account!
And if you had a broken disk,
It would hurt when you found out!

Compress was something you did to garbage
Not something you did to a file
And if you unzipped anything in public
You'd be in jail for awhile!

Log on was adding wood to a fire
Hard drive was a long trip on the road
A mouse pad was where a mouse lived
And a backup happened to your commode!

Cut--you did with a pocket knife
Paste you did with glue
A web was a spider's home
And a virus was the flu!

I guess I'll stick to my pad and paper
And the memory in my head
I hear nobody's been killed in a computer crash
But when it happens they wish they were dead!

Rental Yields Look Better Than Ever

Mon, 07 Nov 2011 01:00:00 GMT

November 7, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

GOOD NEWS – LOCAL HOME SALES RISE WHILE PRICES FALL

The Gazette (November 5, 2011) notes that local home sales totaled 758 in October, a 20.1% jump over the same month last year. This increase in home sales was the fourth consecutive month of year-over-year increases in home sales.

Through the first 10 months of 2011, single family home sales totaled 7,164 in the Pikes Peak region, a 2.3% increase over the same period last year.

Another good sign that our local market is stabilizing and starting to grow was the fact that the inventory of available homes fell to 3,959. That’s its lowest point in nearly two years and represents a 22.7% decline from the same month last year, and the fewest number of listings in any month since December of 2009, when 3,951 homes were listed.

Some of the other indicators that point to a recovering local housing market and a great opportunity for homebuyers are:

? Low mortgage rates are still available ….Buyers can still get an FHA 3.75%, 30 year, fixed-rate, residential mortgage, with a minimum down-payment of 3.5%.

? The local unemployment rate in September fell to 9.3%, the lowest level in nearly two years, as nearly 1,800 residents returned to the job market, and even more than that found work, according to the U.S. Bureau of Labor Statistics.

? According to the Gazette (Friday, Nov. 4, 2011), U.S. merchants are reporting solid gains for October, a sign that consumers are starting to spend, again…..a sure sign that the economy is still on track to recover…And, as a result of the influx of troops returning to Fort Carson, our local retail sales will even outdistance the national figures.

? Experts are predicting that the housing market will show some very encouraging signs of recovery in the second quarter of 2012, as the inventory of foreclosures shrinks and as the federal government introduces some housing programs designed to stimulate the housing market (just in time for the upcoming elections).

The bottom line for Buyers is that, as mortgage rates and home prices start to rise (as they definitely will) and as the inventory of available homes continues to shrink, the people who buy their new home today will look back in two years and see that they made one of the best investments of their lifetime.

Call us at 598-3200 or, 800 677-6683 (MOVE) to discuss this present market and where it is headed. Don’t miss the boat !!!

HOMEOWNERSHIP RATE RISES ONLY SLIGHTLY AFTER TWO YEARS OF DECLINE –

After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report released Wednesday.

With foreclosures forcing homeowners out of their homes and buyers waiting on the sidelines as home values declined, the homeownership rate has been on the decline for quite some time. In fact, according to Bloomberg, the rise in the third quarter of 2011 is the first in two years, according to the most recent Census figures.

However, the 0.4% increase, which brought the homeownership rate from 65.9% to 66.3% for the third quarter of 2011, was not large enough to result in an annual increase.

The declining homeownership rate is a reflection of the increase in foreclosures and of the economic uncertainty which has plagued all segments of our economy.

One result of this decline in homeownership is that investors are now looking at an increase in the number of families which have now become prospective renters, rather than homeowners. These investors are seeing a unique opportunity and they are putting their investment money into rental property. For more details, see the following article……

RENTAL YIELDS LOOK BETTER THAN EVER

As homeownership has been declining, rentals have become a more significant factor within the Real Estate industry. In fact, rental property now presents a great opportunity for investors. Capital Economics predicts that, "Rental yields will soon rise above 5.5%, comfortably beating the yields available on Treasuries and equities."

As evidence that the local "Smart Money" is betting on the value of investment property, note that 3 upscale apartment projects were recently announced for the Springs.

The Gazette (November 5, 2011) reported that over $100 million will be spent on "an explosion of apartment development taking place in the Pikes Peak region".

Norwood Development Group and Western National Group will partner to develop the projects on Nor’wood sites on the city’s east, northeast and northwest sides. The complexes will add about 835 units at a time when apartment vacancy rates have plunged to single digits and rents are soaring.

The complexes will feature one-, two-, and three bedroom units, with rents ranging from about $850 to $1,400.

Call us at 598-3200 or, 800 677-6683 (MOVE) to explore the investment opportunities currently available for smart investors. You may not want to buy a new residence, but you should consider buying some investment property. It’s a great opportunity and a chance to build your retirement plan.

PACE OF LOCAL HOMEBUILDING PICKS UP

The Gazette reports (Wednesday, November 2, 2011) that Colorado Springs –area builders saw a big jump last month in the pace of home construction.

Single-family building permits in the Springs and El Paso County totaled 139 in October, a 36.3% increase over the same month a year ago, according to a report released Tuesday by the Pikes Peak Regional Building department.

Kyle Campbell, board president of the Housing and Building Association of Colorado Springs said single-family permits were issued across a wide range of prices. Campbell said he couldn’t pinpoint a single factor for the uptick in construction activity, but pent-up demand on the part of recession-weary consumers and mortgage rates that remained at the lowest level in decades are possible reasons.

It’s a good sign that things are picking up !!!

WHY 20% DOWNPAYMENTS DON’T ALWAYS MAKE SENSE

Those buyers who have enough money to put 20% - or more- down on the purchase of a home may want to consider another approach –preserving some of their cash for savings, investing or other purposes.

With today’s interest rates and the competitive pricing of private mortgage insurance, borrowers can retain some of their money by putting less money down on a home- say only 10% - and still get a low monthly payment.

In the past, the adage was’ "The more you borrow, the more you leverage". In today’s financial times, the scenario is much different. Today, borrowers can leverage private mortgage insurance to put as little as 5% down on home and still have a competitive payment. By utilizing this strategy, home buyers are able to leverage their current assets, while still keeping sufficient cash reserves.

Give us a call at 598-3200 or, 800 677-6683 (MOVE) to discuss this strategy and we will be pleased to explore your various options with you.

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

We just had a great idea for balancing the federal budget.

The present plan calls for a panel of really smart guys to balance the budget by a certain date and, if they can’t, then the Defense budget gets cut.

Our idea is that, if these geniuses fail to balance the budget by deadline time, the salaries of all Congressmen and Senators would get cut.

Wanna bet on how fast the budget would get balanced?

HOW'S OUR LOCAL ECONOMY DOING? ....PRETTY GOOD, ACTUALLY

Mon, 31 Oct 2011 01:00:00 GMT

October 31, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

HOW’S OUR LOCAL ECONOMY DOING? …..PRETTY GOOD, ACTUALLY

When comparing data from September 2011 with data from September 2010, The Gazette (Oct. 30, 2011) points out that seven out of eight indicators in our local economy look positive.

The “good news” is that:

Initial claims for unemployment were down 9.4%
Unemployment rate was down 8.6%
Single-family home permits were up 53.1%
New auto and truck registrations were up 10.5%
Taxable retail sales were up 2%
Hotel occupancy rate was up to 76.5%
Foreclosure filings were down 20.4%

As always, the trouble spot is the employment picture, with wage and salary jobs down 0.8%. This troubled aspect of the economy seems to be a national phenomenon and explains why all of the candidates for office are emphasizing “Jobs, jobs, jobs”.

We are happy to see that our new Mayor and City Council are concentrating on attracting new businesses to our area, so that our employment picture improves.

BUILDER MAGAZINE SAYS COLORADO SPRINGS LOOKS GOOD

The Gazette, Oct. 30, 2011

Colorado Springs’ housing market will be among the country’s best next year, according to a national forecast by Builder Magazine. The Springs ranks #7 in Builder’s Top 20 list of healthiest markets for 2012.

Builder publishes the Top 20 list in conjunction with parent company Hanley Woods, a real estate media and information services firm. Its projections use data from Moody’s Economy.com, which focuses on jobs, price appreciation, population growth and other factors that drive housing.

Incentives Grow to Get Struggling Home Buyers Moving

Daily Real Estate News | Friday, October 21, 2011

With distressed properties accounting for 30 percent of existing-home sales, more Realtors are finding a growing part of their job is offering struggling home owners “cash for keys,” according to a recent article at MSNBC.com.

In the “Cash for Keys” program, home owners who are facing foreclosure are typically offered between $500 to $2,500 if they agree to move out within 30 days (and leave the place clean, too). The benefits of this program for the cash-strapped homeowner are:

· It frees home owners from their mortgage obligations and provides them with some money for moving expenses
· It helps avoid a ruined credit profile from a foreclosure.

The benefit to the lender is that it allows him to avoid the extra costs of an eviction.

The “Cash for Keys” program is expected to become a more mainstream option for handling short sales too, not just foreclosures. For example, Bank of America is piloting a program in Florida that will pay up to $20,000 to short sellers as well as forgive their loan deficiency.

Banks are looking at offering more incentives to short sales since their losses tend to be far less than a foreclosure. For example, foreclosure properties tend to sell for 40 percent below non-comparable non-distressed properties while short sales tend to sell for only 20 percent less.

“The more the lender’s inventory builds up, the more generous they tend to be with “Cash for Keys”, says Benjamin Barber, a senior sales specialist at Green River Capital LC in West Valley, Utah, in an interview with MSNBC.com.

Realtors are often the ones who deliver the “cash for keys” offer to home owners. And as more real estate professionals continue to find foreclosures and short sales as an increasing part of their job description, they’re even taking training classes on how to negotiate such situations with home owners and navigate these often-complex transactions.

About 21 percent of National Association of REALTORS® members now hold special certifications that help agents better handle distressed property — that’s up from 12 percent last year.

NEW Survey Reveals 5 Home Buying Myths

Daily Real Estate News | Friday, October 28, 2011

Overall, today’s home buyers tend to be fairly knowledgeable about the real estate market, but there are still a few points of confusion about the process. A new survey of 1,000 potential home buyers by Zillow finds five main areas of confusion:

Appreciation: About 42 percent of home buyers believe home values will appreciate by 7 percent a year. Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year.
2. Mortgage insurance: 41 percent of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their downpayment. Reality: Buyers only need to purchase PMI if their downpayment is less than 20 percent of the home’s purchase price.
3. Appraisals: 56 percent of the buyers said the purpose of the appraisal was to determine if a home was in good condition. Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value.
4. Home owner’s insurance: 37 percent of home buyers said that buying home owner’s insurance is optional. Reality: Lenders require homebuyers to purchase homeowner’s insurance.
5. Ownership: 47 percent of home buyers said a prospective buyer owns a home after the purchase contract is signed. Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership.

Let us help guide you through the home-buying process by explaining the realities you might not be aware of as you look for your new home. Call us at 598-3200,or, (800) 677-MOVE (6683).

and, as long as we are talking about real estate myths, here are

7 COMMONLY HELD myths about Home Inspections

Source: American Society of Home Inspectors, Des Plaines, Ill.

An estimated 70 percent of all homes sold annually receive a home inspection. Still, confusion persists over what the process does, and doesn’t, involve. Here are seven common misconceptions:

1. Licensing ensures a professional home inspection. Wrong. Currently, 29 states have some form of inspector regulation—but state requirements vary widely. Verifying the inspector’s credentials, experience, and adherence to professional standards is still important, even in a state with licensing.
2. A home inspection is designed to identify problems that might be the basis for renegotiating the purchase offer. Wrong. The inspector’s service is primarily one of education, providing buyers with a better understanding of the physical condition of the home and giving them the knowledge to make smart decisions. The inspector’s observations or recommendations might help to dispel buyer anxieties and provide useful home repair and maintenance suggestions. When areas of concern or problems are identified, the inspector should play no role in fixing them or addressing them with the seller.
3. Home inspections are needed for existing homes only. Wrong. New construction is often the most in need of a thorough inspection. Many professionals offer “phase inspections” in which the property can be checked at various stages of completion.
4. Having an appraisal, code inspection, and termite or other hazard inspection eliminates the need for a separate home inspection. Wrong. While each of these inspections is valuable, these should never be used in place of a complete home inspection. Similarly, a home inspection should never take the place of other prescribed inspections.
5. Home inspections are for the buyer. It’s true, most inspections are conducted on buyers’ behalf during the purchase process, but prelisting inspections for sellers also can be beneficial. Prelisting inspections can identify areas of concern to be addressed before the sale and can assist in disclosure matters. The American Society of Home Inspectors recommends that a home be inspected every 10 years, regardless of whether a sale is taking place.
6. Home inspectors are too nitpicky and will identify every little problem in the home. A professional home inspection is an objective examination of the condition of the visible and accessible components of a home on the day of the inspection. Professional home inspectors don’t point out every small problem or defect in a home. Minor or cosmetic flaws, for example, should be apparent without the aid of a professional.
7. All home inspector certification and credentialing programs are equal. Some organizations for inspectors offer credentials in return for nothing more than an annual payment, while others are new or exist mainly online. When selecting a home inspector, look at the background, history, and reputation of the person’s certifying organization.

This is another area in which we can assist you. Give us a call at 598-3200,or, (800) 677-MOVE (6683).

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, as published by the Pikes Peak Association of Realtors.

JOKE OF THE WEEK

We came across this joke on the Internet, and the timing seemed right !

The government is recommending another ‘Economic Stimulus’ aimed at pumping money into the economy, to help pull us out of the recession (which officially ended several months ago, in case you hadn’t noticed).

This is indeed a very interesting idea, but many people don’t understand how to best spend their stimulus money in order to help the economy, so, we’ll explain it by using a Q & A format:

Q. What is an 'Economic Stimulus' payment ?
A. It is money that the federal government will send to taxpayers.

Q.. Where will the government get this money ?
A. From taxpayers.

Q. So the government is giving me back my own money ?
A. Only a smidgen of it.

Q. What is the purpose of this payment ?
A. The plan is for you to use the money to purchase a high-definition TV set, thus stimulating the economy.

Q. But isn't that stimulating the economy of China ?
A. Shut up.

Below is some helpful advice on how to best help the U.S. economy by spending your stimulus check wisely:

* If you spend the stimulus money at Wal-Mart, the money will go to China or Sri Lanka .

* If you spend it on gasoline, your money will go to the Arabs.

* If you purchase a computer, it will go to India, Taiwan or China .

* If you purchase fruit and vegetables, it will go to Mexico, Honduras and Guatemala .

* If you buy an efficient car, it will go to Japan, Korea or Finland .

* If you purchase useless stuff, it will go to Taiwan .

* If you pay your credit cards off, or buy stock, it will go to management bonuses and they will hide it offshore.

Instead, if you want to keep the money in America, you should consider:

1) Spending it at a yard sale, or

2) Going to a ball game, or

3) Spending it on prostitutes, or

4) Beer, or

5) A tattoo.

(These are the only American businesses still operating in the U.S. )

Conclusion:

When you receive your stimulus money, the most patriotic thing you can do with it is, go to a ball game and drink beer all day with a tattooed prostitute that you met at a yard sale. !

No need to thank us, we’re just glad we could be of help.

THE NEW GAME PLAN FOR THE DENVER BRONCOS

Mon, 24 Oct 2011 01:00:00 GMT

October 24, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

AT LAST !!! A GOVERNMENT PROGRAM TO HELP THE GOOD GUYS

The Wall Street Journal (Monday, Oct. 24, 2011), as well as Fox News and MSNBC describe an upcoming major overhaul of an under-used mortgage-refinance program designed to help millions of Americans whose home values have tumbled. Federal regulators plan to announce the program today, in an effort to revive the stagnant housing market caused by a surfeit of homeowners who have been unable to re-finance their ‘underwater’ homes.

The overhaul will, among other things, let borrowers who have good credit and who have kept up their mortgage payments, refinance regardless of how far their homes have fallen in value.

The plan would streamline the refinance process by eliminating appraisals and extensive underwriting requirements for most borrowers, as long as the homeowners are current on their mortgage payments.

Fannie Mae and Freddie Mac have also agreed to waive some fees which have made refinancing less attractive to many homeowners.

Officials at FHA, which regulates Fannie and Freddie, estimate that the plan will enable between 800,000 and 1,000,000 more borrowers to refinance at lower rates and thus, be able to continue to pay their mortgages.

CoreLogic, a company that tracks 85% of all mortgages, estimates that 20 million borrowers with equity in their homes could cut the interest rates on their homes by more than one percentage point, if they could refinance. That’s about a quarter of all the homeowners in the country.

Pricing details won’t be published until mid-November, and lenders could begin financing loans under the re-tooled program as soon as December 1, according to federal officials.

Bottom Line: If you bought your present home with a loan amount of $250,000 and an interest rate of 6.5%, this new program would allow you to re-finance to a rate of 4% and thus lower your monthly mortgage payment by approximately $520 per month. …Even if your home is currently ‘under water’.

If your present mortgage rate is 5.5%, your re-financed 4% loan would save you approximately $312 per month.

This new money in your pocket should now enable you to pay for Junior’s college, or, if you wish to upgrade to a better home and cash in on the current opportunities in the housing market, you could:
1. Re-finance your current home.
2. Rent it out (it’s a hot rental market right now), and
3. Buy that better residence at a very low price and a historically-low interest rate.

Call us at 598-3200, or 800-677-MOVE (6683) to discuss what this new opportunity could mean to you

…… It’s nice to see the good guys win, for a change !!!

DOES RENTING OUT YOUR PRESENT HOME MAKE GOOD SENSE?

Daily Real Estate News (Tuesday, October 18, 2011) Identifies the rental market as housing’s bright spot.

“With rental demand rising and apartment economics improving, the multifamily sector is a positive signal for the U.S. housing industry,” writes Frank Nothaft, Freddie Mac’s Chief Economist, in the October 2011 U.S. Economic and Housing Market Outlook.

An increase of 1.4 million households moved into rental housing in the year ending June 2011--a 4 percent rise in the number of tenant households in one year alone, the Census Bureau reports. Meanwhile, the home ownership rate dropped about 1.5 percent over the past year.

Rents are rising at a 5.17 percent annual rate — up from last year’s 4.72 percent rate. If rents continue to grow at their current pace, they won’t be too far behind the record-high reached in 2000 of 6.18 percent, according to Axiometrics Inc.

The rental market has added about 1.4 million new renters this year, some of whom were former home owners who faced foreclosure or a short sale. Renters are increasingly showing an appetite for single-family homes owned by investors
.
As such, the number of investors in the market is growing. Investors make up anywhere between 20 and 40 percent of monthly existing home sales, according to home-sale data. With home prices and interest rates low, more aspiring investors are jumping in. Nearly 60 percent of investors in a recent survey by Realtor.com considered themselves newcomers to real estate investing.

The increase in rental demand is due partially to some households who may have faced a short sale or foreclosure of a home they owned. However, most of the rental demand is coming from young and newly formed households, who are postponing home ownership. The home ownership rate for household heads under 30 years of age has fallen the sharpest in recent years.

As demand increases, vacancy rates are dropping and rents are rising.

Keep in mind that rents are a steady return on your investment through the years, leaving you with an attractive asset when prices improve. And they will. The best profits in real estate accrue to long-term investors who take a long-term view.

Call us at 598-3200, or 800-677-MOVE (6683) to discuss this great opportunity

RIDING THE INVESTOR WAVE
By Lawrence Yun, NAR Chief Economist

Interest rates continue at historic lows. Home prices in many markets are more affordable than ever. Indeed, housing affordability conditions are among the best they have ever been.

Especially for investors with cash, the situation is providing them with a golden opportunity. The investor share of home purchases has been creeping up. Investors accounted for 18 percent of home purchase activity in July; the share reached 22 percent in August. (The first-time homebuyer share fell after the homebuyer tax credit expired last year, and investors stepped in to fill much of the gap).

A significant share of investors is purchasing properties via all-cash transactions. All-cash purchases represented 30 percent of all home sales transactions across the country and accounted for over half of the sales in hard-hit regions like Las Vegas and Miami.

At the same time, higher rents are also attracting investors to the market and the attractive rates of return from rising rental income is a strong lure.

Rents rose at a better than 3 percent annualized rate in the third quarter of 2011, according to government data, and private data sources suggest even faster rent growth. If annual rent gains remain near 3.5 percent, rents will double in 20 years. If the rents rise 5 percent a year, rents will have doubled in 14 years.

In addition to strong returns on rental property, investors can anticipate solid home price appreciation over the long haul.

Given that the housing bubble has virtually deflated, the future path for home prices path should follow the future path for rent growth. That means home prices could also double in 14 to 20 years, though it is unclear as to when home prices will begin to catch up with rents. But long-term investors are sure to catch some if not most of the upward ride.

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

LOCAL HOMEBUILDERS PICK UP PACE IN SEPTEMBER

Local Homebuilders started projects in September at the fastest pace in 17 months, a hopeful sign for the economy.

Single-family building permits in Colorado Springs totaled 124 in September, a 53.1% increase over the same month last year.

It was the third year-over-year gain in permits during the past four months.

Looks like we're on track for a modest recovery this year.

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

Joke #1

Bronco’s Coach Fox has a new plan for insuring a victory every Sunday.

He will let Tim Tebow take a nap before every game and then, right before the game begins, he will wake Tim up and whisper in his ear, “Tim, wake up. There’s only five minutes left to play before the game ends.”

Joke #2

We think we used this joke before, but it is still appropriate

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.

If you think no one cares you're alive, just miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they can’t pay.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

This country is great. It's the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage and call yourself a homeowner.

The trouble with owning a home is that no matter where you sit, you're looking at something you should be doing.

WHAT DID THE SCEF PREDICT FOR COLORADO SPRINGS?

Mon, 17 Oct 2011 01:00:00 GMT

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.)

WHAT’S THE LATEST ON OUR LOCAL REAL ESTATE MARKET ?

Mon, 10 Oct 2011 01:00:00 GMT

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.

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?"

39 YEARS IN THE BUSINESS, AND WE CAN STILL BE SURPRISED !!!

Mon, 03 Oct 2011 01:00:00 GMT

Oct. 3, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

PENDING HOME SALES CLIMB 7.7% ABOVE LAST YEAR

Although August 2011 national home sales dipped slightly from July, 2011, they rose 7.7% compared with sales in August, 2010.

Lawrence Yun, NAR Chief Economist stated that “The market is underperforming, given a pent-up demand in household formation.

“The unnecessarily restrictive mortgage underwriting standards are attenuating the housing recovery and are a risk factor for the overall economy. We need to remove the road blocks to the housing recovery for people who are trying to take advantage of excellent affordability conditions”, Yun stated.

LATEST SALES AND LISTING STATISTICS

So that you might see how our local Real Estate market is faring, we have linked to the most recent Sales and Listing data for the Pikes Peak area, issued by the Pikes Peak Association of Realtors. At our publication time, statistics for September Sales had not yet been released, but we will include them in next week’s issue. Click here for the latest available statistics.

39 YEARS IN THE BUSINESS, AND WE CAN STILL BE SURPRISED !!!

Last week, we arranged for a 30 year, fixed-rate mortgage for an Investor-client. One of our local lenders wrote the loan at an interest rate of 4.375% for a non-owner occupied property

Our client reported that, considering the 4.375% rate and our local vacancy rate, he would show a positive income starting the first month after closing.

Last week, for an Owner-occupied home, we arranged for a 15 year, fixed-rate loan at 3% and 30 year loans were available at 3.75%.

These are the lowest rates we have ever seen.

If you’re thinking of buying, now’s the time to do it.

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

TWO MORE JOB-BUILDING PROJECTS FOR COLORADO SPRINGS ANNOUNCED

Agilent Technologies is moving forward on a $121 million, 55,000 square-foot expansion to their Garden-of-the-Gods campus. The project will include a 20,000 square-foot data center and a 35,000 square-foot technology center.

The economic impact of the Agilent expansion to Colorado Springs will match the expansion of the Wal-Mart data processing facility near Interquest parkway, which was announced in July. Wal-Mart has now finalized its purchase of the 24 acres required for the expansion, at a cost of $5.3 million for the land. Local government officials and business leaders projected that the new facility will pump about $488 million into the local economy over the first 15 years.

Both of these projects will create many new high-paying jobs in our local economy and our Mayor and City Council deserve a vote of thanks for aggressively pursuing these opportunities.

Keep up the good work !!

And, to add some icing on the cake, Tom Binnings, a senior partner in Summit Economics LLC, a Springs economic research and consulting firm, predicts that Colorado Springs job growth should resume next year as major construction projects take hold, including Fort Carson expansion, the Southern Delivery System water pipeline and several apartment complexes.

According to Binnings, some of the other positive factors that will impact Colorado Springs will be:

• Continued Population growth
• A resurgence of entrepreneurship
• Capital access
• Private sector company growth to replace expected government jobs losses
• Troops returning to and remaining at Fort Carson
• A modest resurgence of homebuilding.

And, best of all, we get to see the aspens turning for the next several weeks. …And to think, many people actually choose to live somewhere else…..on purpose. … Go figure !!

WANT TO LEARN WHERE OUR CITY WILL BE IN THE FUTURE?
REGISTER FOR THE 15TH ANNUAL SCEF

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum will be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

FACING A TRANSFER ? BE AWARE THAT RELOCATION BENEFITS ARE CHANGING

As a result of the decline in home-values and ‘upside-down’ mortgages, many companies are no longer able to simply ‘buy-out’ the homes of their employees who are transferring out of town. Instead, they are using ‘tiered policies’ or ‘Cafeteria Relocation Benefits’ to assist their transferred employees moving to new locations.

According to the recent Worldwide ERC Survey, “Relocation Assistance: Transferred Employees”, 73% of organizations now report they use tiered policies, compared to 10% in 1988. These companies use three or more tiered policies to better align policy with job or salary levels, homeowner/renter status and other criteria.

Companies which use tiered policies report they must maintain some flexibility in these polices, or run the risk of alienating existing talent, but also must retain some rigidity, or exceptions become the rule and benefits can become inequitable.

Cafeteria Relocation Benefits are offered by 24% of organizations (as compared with 13% in 1997). These plans offer the company a menu of several benefits, such as:

• Homefinding trips
• En route travel
• Temporary living
• Shipment of household goods, autos and pets
• Home purchase assistance
• Home purchase assistance
• Spouse career transition
• Settling-in services
• Property management
• Child/elderly care assistance

As a long-time member of Worldwide ERC, we have many years of experience working with companies and transferees to assist them with their relocation needs and we would be pleased to discuss this important topic with you.

Give us a call at 598-3200, or, 800 677-MOVE (6683).

Just click on the icon at the top of this email to listen to my podcast for this month …

JOKE OF THE WEEK

A bird was flying south for winter, but the weather turned cold early and he was frozen solid in a storm.

He dropped down, frozen and exhausted, into a pile of manure in a cow pasture.

At first, the bird was disgusted, until he realized that the manure was thawing him out! He was so happy to be warm again that he started singing for joy.

A cat that was nearby heard the singing, walked over, saw the bird and ate it

There are three morals to this story:
1. Not everyone who covers you with manure is your enemy
2. Not everyone who gets you out of the manure is your friend
3. If you happen to find yourself in manure, keep your mouth shut

THANKSGIVING IS JUST AROUND THE CORNER ....SO, LET'S TALK TURKEY

Mon, 26 Sep 2011 01:00:00 GMT

September 26, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

THANKSGIVING IS JUST AROUND THE CORNER ....SO, LET'S TALK TURKEY

The Internet is a marvelous invention. You can use it to find members of your high-school class, the parts list for a 1937 LaSalle, the first movie that Clark Gable ever made and almost anything else you can possibly want to know.
Unforthunately, this wonderful source of information can also produce a state of mental paralysis called 'information overload'.

As we speak with prospective Real Estate Buyers and/or Sellers, we find that many people who have used the Internet (and their neighbors) to advise them about their Real Estate decision are suffering from this confusing problem of 'information overload'. ...and who can blame them?

On any given day, various media sources tell them that "The Real Estate market is looking much better" and, on the same day, another media source
warns them that "The Real Estate market has never looked worse".

They read that "mortgage rates are very low", .......but that "the government will soon cause mortgage rates to rise".

They are told that "this is a terrific time to buy", but that "thousands of people are losing their homes".

They hear one of their neighbors tell them they sold their home in three weeks, while another neighbor has had their home on the market for 18 months.

As a result of all of this contradictory information and advice, it is not surprising that the most-asked question we hear from our clients today is, "What would you do?"

So, we thought it would be helpful if "talked turkey" about how we are advising our prospective clients in this confusing market.

First, keep in mind that our personal business philosophy puts the long-term improvement of our clients' financial welfare at the top of our list. You can't be sucessful and respected for 39 years in this business, if your main goal is just to 'make a buck'.

Building a client base of loyal friends requires that we always tell clients what we think is best for them, even though that means that we sometimes have to recommend not buying that home they just fell in love with, or, to suggest delaying putting their home on the market until their personal finances improve.

Second, remember that all Real Estate is local. The fact that housing sales in Las Vegas are in the tank, doesn't mean that home sales in Colorado Springs are necesarily terrible. In fact, even within our small segment of the national market, our sales and listing statistics are usually much better than the national statistics.

Using national home price averages to figure out local price trends makes about as much sense as using a national weather forecast to make plans for a picnic in the park.

As a matter of fact, even within the Pikes Peak region, Real Estate prices and activity can vary greatly based upon such factors as the age of the neighborhood, price range, time of the year, size of the home, improvements, proximity to schools ...and even how the local schools are rated.

You will note that, because both of these elements (your long-term financial welfare and local pricing factors) are based upon your personal situation (financial status, credit rating, your job security, the ages of you and of your children, etc.), the Internet cannot be of much help to you as you try to make your Real Estate decisions.

That's why you need some impartial advice from someone who has the answers abour what's really happening in our local market.

OK, let's get specific. I am thinking of selling my house. Is this a good time to list it?

Well, let's talk about selling in today's market. You should be aware that the selling price for your home in today's market will probably be less that you would like. Keeping that in mind, however

If you are just moving to a comparable home closr to your work, remember that whatever financial "loss" you suffer when you sell, will be made up for when you buy your new home at a price that has also been reduced. So, you're not gaining anything by waiting to sell
If you are selling to reduce your monthly payments, consider re-financing your present home, instead of selling. At today's historically-low refinancing rates, you could stay in your home and still end up with lower monthly payments.
If you are considering selling because you want to upgrade to a better home in a better part of town, you might consider buying your upgraded home and then, rather than selling, keeping your present home as a rental property. Occupancy rates are high, available inventory offers you a wide selection of properties and you will get a terrific mortgage rate on your new home. But there are drawbacks to becoming a landlord and you should discuss this option with us, to avoid some of the unwanted 'surprises' that this option sometimes involves
If you are selling because you are 'underwater' with your mortgage, I'm afraid there are no easy answers. Some of the variables that affect 'short-sale' properties are: Who holds the mortgage (Some lenders are reasonable to work with ...but some are not). How long can the prospective buyer wait to occupy the home (The short-sale process can take many months to complete) The bottom line here is, call us to discuss your specific situation.

As you can see, there is no easy answer to the question "Is this a good time to sell".

OK, Should I consider buying a house in today's market?

Absolutely !!!!! New homeowners and Investors alike are going to come out ahead, if they buy now. Low prices, Large inventories, Great mortgage rates (the lowest in history), Low Vacancy rates, a ballooning supply of new renters are all combining to offer a wonderful opportunity for Buyers. Call us to discuss the window of opportunity that is now open.

P.S. If you're on the fence about buying, call us to get the straight scoop on how much your payments would be on a new home. You might find that it would be cheaper than the rent you are now paying

One thing is for sure. The Internet can't give you the kind of advice you need when deciding to buy or sell a home.

Better give us a call at 598-3200 or 800-677 move (6683). We will be pleased to discuss the Real Estate options that are available to you.

LATEST SALES AND LISTING STATISTICS

Click here for the latest sales and listing statistics for the Pikes Peak area.

Our local sales reflected the national trend in August. Home sales jumped from a year ago by the biggest percentage in nearly 1 1/2 yearsSales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. According to NAR President Ron Phipps, the biggest factors keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers and appraised valuations below the negotiated price.

MORTGAGE RATES DIP AGAIN

Within the past few days, mortgage rates for a 30-year, fixed-rate mortgage dropped to 3 3/4%. Many other types of mortgages, like various adjustable loans went even lower. Call us to find out how this might affect your refinancing plans.

THE LATEST GOOD NEWS FOR COLORADO SPRINGS - FROM THE GAZETTE

Initial claims for unemployment were down 23.2%
Unemployment rate was down to 9.3%
New auto and truck registrations were up 42.4%
Taxable retail sales were up 11.9%
Hotel occupancy rate was up to 77.8%
Foreclosure filings were down 21.8%

But the best news of all is that, when you wake up every morning, you get to see the most beautiful sight in the world ...the sun shining on Pikes Peak. No wonder it inspired the song, "America the Beautiful"

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

Two social engineers were discussing social policy and the first one says: "I believe in fairness. ...a share and share alike policy. We should all have an equal share of wealth."

"Well" replied the other social engineer "I'm not sure about that. What you mean is that if you have two yachts you'd give me one?"

"Of course" says the first.

The second social engineer continued: "and if you had two factories, you'd give me one of them too?"

"Absolutely"

"So" says the second social engineer, "if you had two cars then you'd give me one of them?"

"Ah, now hang on a minute" says the first, "That's not fair. You know I've got two cars!"

Just What Is It That A Realtor Does ?

Mon, 19 Sep 2011 01:00:00 GMT

September 19, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

CONSIDERING RELOCATING FOR A BETTER JOB? …HERE ARE 5 GOOD REASONS YOU SHOULD CONSULT A RELOCATION EXPERT.

The Kelly Workforce Global Index released earlier this year found that more than three quarters of the people surveyed said they would be willing to move for the right job. At the same time, however, the Society of Human Resources Management reports that many employers are reducing or freezing their company-paid relocation programs.

One individual who recently moved to Colorado Springs reported to us that the move cost him almost $10,000 for which he received no compensation from his employer.

So, if you are offered the opportunity of taking a promotion that would require you to assume some of the costs of relocating, you should consider the following five questions, as you make your decision.

1. Can I afford it? There are a number of moving calculators available online, but according to Worldwide ERC, a workforce mobility association of which we are members, the average cost of shipping household goods for a domestic relocation was over $12,000 in 2010.

Also consider the cost of breaking a lease or selling your home (assuming you can find a buyer) and traveling back and forth between your old and new locations.

Because of the shaky market, you may have trouble selling your present home and may have to rent in your new location, until your present home sells.

Keep in mind that, under certain circumstances, the IRS allows you to deduct reasonable moving expenses, but tax deductions are not as valuable as tax credits and are only applicable if you itemize. Expenses for breaking a lease or buying and selling your home are not deductible. Call us to discuss this deduction.

We are very experienced in relocations and can assist you on both ends of the relocation process. We can help you sell your present home and buy your new home, regardless of where you live.

2. What's the local cost of living? Determine whether your new salary will cover living expenses in your new home by looking at cost-of-living calculators and talking to people in the area.

Food costs, utility (air conditioning and heating) costs, etc. vary depending upon what part of the country you are moving to. We can provide you with living-cost statistics for all areas in the U.S.

3. Is the company (and the local industry) stable? If a company is paying for all or part of your relocation costs, they are investing in you over the long term. But there's always the risk that you'll uproot yourself and your family for an opportunity that fizzles out. It can happen that, if the company goes under, you could find yourself without friends or a support system in an unfamiliar community. That’s especially risky if you're expected to turn things around at a troubled company.

Therefore, you should consider what other opportunities are available in the area, should you find yourself without a job. Talking to your relocation expert can help you do your research in this area.

4. Who else would need to relocate? It's much easier (and cheaper) for an individual to relocate than it is for an entire family, especially one with children and two working spouses. You should consider your spouse's career goals, your kid's ages, and how invested your family is in the local community.

5. Is telecommuting a possibility? Before relocating yourself and your family, consider whether you or your spouse might telecommute instead of physically reporting to an office. Often, that depends on the culture of the organization. Within some companies, telecommuting is a way of life. People are all over the country because their clients are all over the country, so it really doesn't matter where you're living. That said, your spouse might be able to telecommute to his or her current job instead of searching for a new one, which could help ease the transition financially.

Using the services of a relocation expert will help you address these questions and the myriad of other topics that can complicate the relocation process. Salzman Real Estate Services is a long-time member of Worldwide ERC, an organization that specializes in assisting their clients relocate all over the world.

If you are considering moving in or out of the Pikes Peak area, we can help make it a problem-free process.

Call us at 800-667-6683, or, 719 598-3200. We would be happy to discuss your relocation needs.

JUST WHAT IS IT THAT A REALTOR DOES??

Many people think that all a Realtor does is put a “FOR SALE” sign in the front yard and wait for someone to come along and make an offer. But a good Realtor does much more than that.

We recently participated in the sale of a local residence that illustrates how an experienced Realtor can help both the Buyer and the Seller to achieve their goals in a “Win-Win” home-sale transaction.

We were asked to list a local home that was part of an estate sale. The three heirs of the estate lived in different states and wanted to dispose of their deceased father’s home.

Our inspection of the home and our analysis of the neighborhood comparables led us to recommend to the Sellers that some renovating on the inside of the home would be necessary to bring the property up to a competitive level. We also recommended a competitive, fair listing price.

The Sellers went along with our recommendations and we listed the home for sale.

Rather than sitting around waiting for someone to knock on our door with an offer, we contacted several prospective Buyers ….people who had spoken with us in the past about their interest in that particular neighborhood.

One of these prospective Buyers had always been a Renter, and was hesitant to take on the responsibilities of homeownership, but, after we explained to her that present market prices were lower than we would ever see again, that mortgage rates were historically low, and that her monthly payment for the house would be approximately 30% lower than she was currently paying for rent, she decided to take the plunge into homeownership.

Within one week after listing, both the Seller and the Buyer got exactly what they were looking for …a quick sale at a fair price.

That’s the kind of involvement that a good Realtor can bring to a transaction and the kind of commitment to the welfare of both parties that Buyers and Sellers have a right to expect from their Realtor.

Call us at 800-667-6683, or, 719 598-3200, to discuss your specific housing wants and needs. Let us help you achieve your Real Estate and/or investment goals.

MARK YOUR CALENDAR NOW FOR THE 15th Annual Southern Colorado Economic Forum

This year’s Forum wiill be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

And please take note, you can click on the icon at the top of this email to listen to my latest podcast. ….

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

JOKE OF THE WEEK

Two deputies in the Sheriff's Office, one who had been in town for ten years and the other who had just transferred, answered an emergency call. When they walked into the house, they found the nude bodies of a man and a woman in the bedroom. They had been shot to death.

When they went to the living room, they found the body of a man with a gun at his side.

"No doubt about it," the new deputy said, "This was a double murder and suicide. This guy came home and found his wife in bed with somebody else and shot them both. Then he shot himself."

"You're right," the experienced deputy replied. "But I'll bet you when the sheriff gets here he's going to say, 'It could have been worse'."

"No way. You're on."

The old sheriff arrived at the scene. "No doubt about it," the sheriff said, shaking his head. "It was a double murder and suicide." After hesitating for a moment, the old sheriff looked his deputies in the eyes. "But, you know," he said, "it could have been worse."

The deputy who had lost the bet jumped up and shouted, "Sheriff, how could it have been worse? There are three people in this house, and all three of them are dead. It couldn't have been worse."

"Yes, it could," the sheriff retorted. "You see that guy there on the floor? If he had come home yesterday, that would be me!"

When You Decide to Invest, Let Us Help You Avoid the Pitfalls

Mon, 12 Sep 2011 01:00:00 GMT

September 12, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL REAL ESTATE MARKET

WHEN YOU DECIDE TO INVEST, LET US HELP YOU AVOID THE PITFALLS

As we have been emphasizing in recent issues of our Enewsletters, there are great opportunities for investors in our Colorado Springs Real Estate market. Low prices, low mortgage interest rates, large inventories of available homes, low vacancy rates, etc. all combine to offer a window of opportunity for investment that may never open again.

In fact, according to Realtor Magazine, more homes are turning into rentals. Nearly 35% of occupied homes were rented in 2010, which is a 33.8% increase from 2000.

Furthermore, Hotpads.com, a real estate research firm, states that the vacancy rate for rentals is at its lowest level since 2003 and the average nationwide rent increased to $1,320 in 2010, for a jump of 11.6%.

However, smart investors in Real Estate should be aware of some of the potential problems they might run into, when they jump into the investment market. As the Wall Street Journal points out (Sept. 10-11, 2011), first-time investors frequently make one or more of the following mistakes:

Confusing a cheap deal with a good deal. Location is still the most important factor for an investor. Are renters likely to want to live in the property? That’s where we can help you analyze the specific local neighborhood history.
Overlooking key costs. Closing costs, maintenance, etc. will all impact your eventual profit. We are very aware of all of these ‘add-ons’ and can help you evaluate the true cost of your prospective property.
Forgetting that time is money.You lose money when your property is empty, whether you are painting it, or between tenants. Knowing how to adjust your rents accordingly is something we can help you with.
Assuming you will sit back and watch the money roll in. Unless you are willing to devote yourself exclusively to maintaining your rental property, you will probably need the assistance of a good property management firm to screen tenants, handle maintenance, etc. We can help you contact a reputable individual or company to handle the day-to-day management issues that are a necessary part of your investment.
Underestimating repair costs. Unless you have experience with home repairs and intend to do your own maintenance, you will probably be surprised by the routine costs involved in the maintenance of rental properties. (Many experts recommend setting aside a reserve fund to handle such maintenance). Again, we will be happy to work with you in determining how much ‘set-aside’ you should plan for.
Assuming that owning a rental is the same as owning a home. You are willing to put up with many small inconveniences and defects in your own home that renters will not accept. Here again, a good property manager can take over that aspect of investment property. Give us a call to discuss this aspect of investment.

Investors used to aim for rents that amounted to 1% of the purchase price of their investment. (That’s $1000 a month in rent for a $100,000 home). That equals an annual gross return of 12%

Today, however, because of the factors discussed above, many investors are getting rents that equal 2% of the purchase price. That’s quite an inducement to acquire an investment property before the window closes on this opportunity.

Call us at 598-3200, or (800) 677-MOVE(6683) and we will be happy to chat with you about the investment opportunities available in our local market.

TWO MORE REASONS FOR BUYING NOW !!!!

On October 1, 2011, the FHA maximum loan amount available from FHA will drop in most cities, including Colorado Springs, from $325,000 to $272,200. Experts warn that this change in policy will prevent Fannie Mae and Freddie Mac from financing a significant segment of the Real Estate market and will put a lot of Buyers out of the market.

This drop in the conforming loan limit is expected to affect 2% of all homes nationwide.

Another reason for buying now is that many lenders are getting reluctant to lend to anyone except those who have ‘pristine credit’. Even the Wall Street Journal (Tuesday, Sept. 6, 2011) noted that many prospective Buyers with excellent credit have been turned away by some lenders.

Fortunately, we have good, working relationships with our local lenders and we have not had any trouble getting our clients financed. If you have had any problems in this area, give us a call. (598-3200, or (800) 677-MOVE(6683).

Bottom line: Better Buy Now.!!

THE BROOKINGS INSTITUTE SAYS COLORADO SPRINGS IS POISED FOR RECOVERY

According to a recent study by the Brookings Institute, Colorado Springs is ninth among the nation’s 100 largest metropolitan areas in a ranking looking at the resiliency of an area’s industries and the gap between the education of its workforce and the needs of its employers.

Jonathan Rothwell, a Brookings senior research analyst and the author of the report, stated, “There is no reason Colorado Springs shouldn’t bounce back once the nation’s economy begins improving. Colorado Springs has one of the best balanced economies between workers’ education related to the needs of their jobs”.

LATEST STATISTICS FOR COLORADO SPRINGS

The most recent Sales and Listing report of statistics for the Pikes Peak area, published by the Pikes Peak Association of Realtors, shows that home sales in August jumped from a year ago by the biggest percentage in nearly 1 ½ years.

Sales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. This was the largest increase since March of 2010, when sales benefited from the federal tax credit for first-time homebuyers (A program which expired in June of 2010).

The August increase followed an 11.9% gain in July, the first indication of improvement after sales fell in 10 of the previous 12 months.

Most experts agree that the current rise in sales is due to the low interest mortgage rates which are currently available.

Click here for the latest Sales and Listing statistics for the Pikes Peak area

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, please contact us.

JOKE OF THE WEEK

We thought you might be interested in the Winner of the Top Ten Dumbest Criminals of 2010

THE WINNER!

A Charlotte, NC, a man purchased a case of very rare, very expensive cigars. He proceeded to insure them against, among other things, fire.

Within a month, having smoked his entire stockpile of cigars and without having made even his first premium payment on the policy, the man filed a claim against the insurance company. In his claim, the man stated the cigars were lost "in a series of small fires."

The insurance company refused to pay, citing the obvious reason that the man had consumed the cigars in the normal fashion. The man sued....and won.

In delivering the ruling the judge agreeing that the claim was frivolous, stated nevertheless that the man held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure against fire, without defining what it considered to be "unacceptable fire," and was obligated to pay the claim.

Rather than endure a lengthy and costly appeal process the insurance company accepted the ruling and paid the man $15,000 for the rare cigars he lost in "the fires." After the man cashed the check, however, the company had him arrested on 24 counts of arson. With his own insurance claim and testimony from the previous case being used against him, the man was convicted of intentionally burning his insured property and sentenced to 24 months in jail and a $24,000 fine.

The moral of the story?

Darned if we can tell.

KIPLINGER’S PERSONAL FINANCE RATES COLORADO SPRINGS AMONG THE BEST

Mon, 12 Sep 2011 01:00:00 GMT

August 29, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

CSCC AND CSREDC UNIFY TO BRING MORE JOBS TO COLORADO SPRINGS

The Boards of Directors of the Greater Colorado Springs Chamber of Colorado Springs (CSCC) and the Colorado Springs Regional Economic Development Corporation (CSREDC) have decided to unify the two organizations to maximize their efforts to attract new jobs to the area.

In announcing the new, unified organization, Bill Hodgkins, Chair of the Board for CSCC said, “Both organizations are currently strong, but they will be even stronger together’.

Doug Quimby, Chair of the Board for CSREDC, stated, “We need integrated strategy for economic development, and a strong force to ensure it is successful. We now have the means and opportunity to do so”.

Quimby also stated, “Small business is the backbone of our economy. We support the Chamber’s key initiatives of fighting for small business, supporting our military and focusing on our defense economy. We believe this new organization can only reinforce these critical initiatives”

Editor’s note: We applaud this decision to focus the efforts of both of these organizations in attracting new jobs to our area. The Pikes Peak Area has everything a business could want to help them succeed and all we need is a vehicle for getting that message out to the rest of the country. This new organization should help us spread the word. …Want more proof of our great business environment, see the following item.

KIPLINGER’S PERSONAL FINANCE RATES COLORADO SPRINGS AMONG THE BEST

The September 2011 isssue of Kiplinger’s Personal Finance magazine rates Colorado Springs as the fourth best city in the nation for value.

Kiplinger’s states that “This burgeoning Western town is filled with transplants drawn by spectacular outdoor beauty, 300 days of sunshine a year, a relatively low cost of living and a vibrant business community that finds little conflict between economy and ecology”.

The article also points out that our city is home to more than a dozen colleges and actively woos companies with tax incentives and a highly educated workforce.

The city offers 150 parks and 260 miles of trails and the Pike National Forest, which borders the city, offers camping, fly-fishing, camping, biking, horseback riding and scenery that extends as far as the eye can see.

Rents and real estate are reasonable, too. The median home sells for less than $199,000 and monthly rent on a two-bedroom apartment is less than $800.

Editor’s note: Another indication of the health of our local economy is the fact that Colorado Springs foreclosure filings are down 32.6% from January 2010.

LAST WEEK’S ARTICLE ON INVESTMENT PROPERTY STIRRED UP A LOT OF INTEREST

We received a lot of feedback relating to the article in last week’s eNewsletter regarding investment property. Realtors and prospective Buyers from around the US contacted us to learn more about the opportunities that are now present in the market. We thought the response merited some further comments about this unique opportunity.

Just to review the window of opportunity that now presents itself to all prospective Buyers:

• Prices are ridiculously low …probably lower than you will ever see again
• Mortgage Rates are historically low… probably lower than you will ever see again
• The inventory of available homes is very high. It is a Buyers’ market and you have your ‘pick of the litter’ for both new and resale homes, thanks to foreclosures and short sales.
• The high volume of ‘New Renters’ (thanks to foreclosures) has resulted in record low vacancy rates for rentals. Your investment property is almost guaranteed to rent.

And, to cite a couple of reasons to buy now

• Lenders are starting to tighten lending requirements and loans will soon become more difficult to obtain
• As of October 1, 2011, FHA maximum loan amounts will drop from $325,000 to $272,800 for most communities in the US, including Colorado Springs.

The Wall Street Journal, Wed. Aug 17, 2011 stated, “Investors can cover their monthly costs and make an 8% -12% profit pretty easily. We haven’t seen that in 20 years”.

As an example, let’s take a look at what we discussed with one of our clients just last week, as we helped him build his retirement portfolio with an investor property. The following figures are based on realistic estimates in our local; market.
Purchase price $200,000
Down Payment $50,000
Loan Amount $150,000

Using today’s investment interest rate of only 4.5% for non-owner occupied property, on a 30-year fixed loan (and assuming a tax bracket of 33%), here’s how the numbers work out:

Monthly payment P&I $760
Estimated taxes $120
Estimated Insurance $ 80
Total Monthly Payment $960

Typical one-year tax deduction
Interest deduction $6,700
Estimated property tax $1,440
Total deduction $8,140

Annual Income-tax savings $2,686

Net cost of the property
Monthly payment $ 960
Less tax savings $(224)
Net cost $736

The monthly rental net income (after estimating repairs and vacancies) would be $1,054

On a monthly basis, that works out to:
Income $1,054
Loan cost $ (736)
Income before depreciation $ 318
Depreciation per month $ (390)
Actual loss per month ($72)

Bottom line: This investment property would actually cost you only $72 a month.

Further, the estimated annual depreciation would be $4,675.

Now, let’s look at the long-term numbers. If you held this property for 10 years, assuming typical inflation and appreciation, you could expect an average annual growth of 3% per year. Thus, the market value would go from $200,000 to $260,000.

At the end of the ten years, your balance on the loan would be at $120,134 and your equity would be $139,866 from your original investment of $50,000. That’s 27.97% growth per year as your rate of return.

Finally, in the event that there is absolutely no growth for ten years, (and not even the most pessimistic economists are predicting that), your rate of return would still be approximately 16%. In a zero-growth economy, that would be fantastic !!

The icing on the cake is that these figures don’t even take into account your annual tax benefits/deductions. …That alone puts an additional $8,140 per year in your pocket.

And you thought Stocks were the way to go

If you would like us to go into more personal detail about these numbers, please call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

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 region

JOKE OF THE WEEK

10 Office Rules:

10. Never walk without a document -- People with documents look like hardworking employees headed to important meetings. People with nothing in their hands look like they're headed for the cafeteria. Above all, make sure you carry loads of stuff home with you at night, thus generating the false impression that you work longer hours than you really do.

9. Use computers to look busy -- Any time you use a computer, it looks like "work" to the casual observer. When you get caught by your boss -- and you will get caught -- your best defense is to claim you're teaching yourself to use new software, thus saving valuable training dollars.

8. Messy desk -- only top management can get away with a clean desk. For the rest of us, it looks like we're not working hard enough. Build huge piles of documents around your workspace. Pile them high and wide. If you know somebody is coming to your cubicle, bury the document you'll need halfway down in an existing stack and rummage for it when he/she arrives.

7. Voice mail -- Never answer your phone if you have voice mail. People don't call you just because they want to give you something for nothing -- they call because they want YOU to do work for THEM. If somebody leaves a message for you and it sounds like impending work, respond during lunch hour when you know they're not there

6. Look impatient and annoyed -- According to George Costanza, one should also always try to look impatient and annoyed to give off the impression that you're always busy.

5. Leave the office late -- Always leave the office late, especially when the boss is still around. Make sure you walk past the boss' room on your way out. Send important e-mails at unearthly hours (i.e. 9:35pm, 7:05am, etc.) and during public holidays.

4. Creative sighing for effect -- Sigh loudly when there are many people around, giving the impression that you are under extreme pressure.

3. Stacking strategy -- It is not enough to pile lots of documents on the table. Put lots of books on the floor, etc. (thick computer manuals are the best).

2. Build vocabulary -- Read up on some computer magazines and pick out all the jargon and new products. Use the phrases freely when in conversation with bosses. Remember, they don't have to understand what you say, but you sure sound impressive.

1. MOST IMPORTANT -- DON'T forward this to your boss by mistake!

SO, I’M THINKING OF SELLING MY HOME. WHAT SHOULD I BE AWARE OF??

Mon, 22 Aug 2011 15:17:00 GMT

August 22, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

HOMEOWNERSHIP: IT’S STILL THE AMERICAN DREAM

Fannie Mae and Freddie Mac just released the results from their NATIONAL HOUSING SURVEY. We thought you might like to see some of the results.

First, let’s look at Rent vs Buy:

63% of renters have aspirations of someday owning their own home
72% of renters think that owning is superior to renting
95% of homeowners see homeownership as a positive experience.
96% of homeowners live in a single-family residence, while 46% of renters live in a multi-unit building

The survey also shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, were:

It means having a good place to raise children and provide them with a good education
It provides a structure where you and your family feel safe
It allows you to have more space for your family
It gives you control of what you do with your living space (renovations and updates)

How about homeownership as an investment? Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what survey respondents had to say about that:

65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
56% believe that homeownership has more potential as an investment than any other traditional asset class.
69% think that now is a good time to buy a home (this number has increased in each of the last two quarters).

The bottom line is that, even in difficult times, Americans still realize the value of homeownership.

SO, I’M THINKING OF SELLING MY HOME. WHAT SHOULD I BE AWARE OF??

If you want to sell your home right now, there are some factors you should be aware of. First of all, our current Real Estate market is, to use a technical term, “lousy”. Why did this happen and how does it affect you?.

As a result of the national economic decline, foreclosures and short-sale homes have flooded the real estate market, thus creating a temporary oversupply. When there is an oversupply of a product or service, prices tend to go down. …and homes are no exception to that rule.
Again, as a result of the general economic decline, this year’s county assessments of property values show lower values for homes, thus impacting our pricing of homes for sale. The bottom line is that home prices have gone down from their peak of about five years ago.
This temporary oversupply has allowed prospective Buyers to be very selective about the price and condition of any home they look at. What this means to you, as a Seller, is that, if you want to sell right now, you will have to price your home realistically and make sure it is in great condition. Your house will not sell if it is overpriced (compared with your competition) or if there is deferred maintenance, peeling paint, dirty windows, worn carpeting, etc.

All of this means that you will probably have to invest some money in repairing or remodeling your home to bring it up to the quality that today’s Buyers are looking for.

Because of these factors, many homeowners have decided not to sell right now, but rather, to stay put, until prices rebound. They are adding features, finishing basements, remodeling, etc. Some are doing this to prepare their home for eventual sale, Others are doing it to upgrade their present home so they can stay in it, rather than selling it.

Call us now to discuss your options. We are very familiar with every neighborhood in this area and we will be happy to discuss with you the current market value of your present home, the relative merits of selling now, selling later, buying your next home now and converting your present home into an investment property, etc., etc., etc.

Call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

OK, I THINK I’LL HOLD ON TO MY PRESENT HOME FOR NOW …..BUT TELL ME ABOUT INVESTMENT PROPERTY. IS IT REALLY A GOOD IDEA?

There’s a great window of opportunity right now for acquiring some investment property. Why right now? …Because:

Prices are low …probably lower than you will ever see again
Rates are low… probably lower than you will ever see again
The inventory of available homes is very high. You have your ‘pick of the litter’
The high volume of people who, prior to foreclosure, were homeowners, but who are now renters has resulted in very low vacancy rates.
Lenders are starting to tighten lending requirements and loans will soon become more difficult to obtain
As of October 1, 2011, FHA maximum loan amounts will drop from $325,000 to $272,800 for most communities in the US, including Colorado Springs.

The Wall Street Journal, Wed. Aug 17, 2011 stated, “Prices are so low that more investors are scooping up foreclosed properties and renting them out. Investors can cover their monthly costs and make an 8% -12% profit pretty easily. We haven’t seen that in 20 years”.

As a matter of fact, the profit can easily be greater than that.

Purchase price $200,000

Down Payment 50,000

Loan Amount $150,000

Using today’s investment interest rate of only 4.5% for non-owner occupied property, on a 30-year fixed loan (and assuming a tax bracket of 33%), here’s how the numbers worked out:

Monthly payment P&I $760

Estimated taxes $120

Estimated Insurance $ 80

Total Monthly Payment $960

Typical one-year tax deduction

Interest deduction $6,700

Estimated property tax $1,440

Total deduction $8,140

Annual Income-tax savings $2,686

Net cost of the property

Monthly payment $ 960

Less tax savings $(224)

Net cost $736

The monthly rental net income (after estimating repairs and vacancies) would be $1,054

On a monthly basis, that works out to:

Income $1,054

Loan cost $ (736)

Income before depreciation $ 318

Depreciation per month $ (390)

Actual loss per month ($72)

Further, the estimated annual depreciation would be $4,675.

If you held this property for 10 years, assuming typical inflation and appreciation, you could expect an average annual growth of 3% per year. Thus, the market value would go to $260,000.

At the end of the ten years, your balance on the loan would be at $120,134 and your equity would be $139,866 from your original investment of $50,000. That’s 27.97% growth per year as your rate of return.

Finally, in the event that there is absolutely no growth for ten years, i.e. the economy does not grow at all, your rate of return would still be approximately 16%. In a dead economy, that would be fantastic !!

The icing on the cake is that these figures don’t even take into account your annual tax benefits/deductions. …That alone puts an additional $8,140 per year in your pocket.

And you thought Stocks were the way to go

If you would like us to go into more detail about these numbers, please call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

MARK YOUR CALENDAR NOW FOR THE 15th Annual Southern Colorado Economic Forum

This year’s Forum wiill be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

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

Top Ten Things Never Before Said by a Presidential Candidate

10. "Vote for me or I'll slash your tires"

9. "Forget universal health care -- I'm buying every American an XBox"

8. "In a crisis I ask myself, 'What would Regis Philbin do?'?

7. "I'd give you my plan for economic recovery if I actually had one"

6. "If your last name begins with 'M' through 'Z,' sorry -- your taxes are doubling"

5. "We're gonna cut the deficit by selling North Dakota to Canada"

4. "I have tons of experience from being president of the Aston Kutcher fan club"

3. "Lady, that is one ugly baby"

2. "When I'm president, I'm putting Elvis on Mt. Rushmore"

1. "Read my lips: I plan to fire half the people in Washington"