Colorado Springs Colorado Real Estate News & Listings Presented By Salzman Real Estate Services, Ltd

Post Title- March 8, 2010

Mon, 08 Mar 2010 08:02:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL REAL ESTATE MARKET

DO YOU HAVE MONEY TO BURN ?

If you are not under contract by April 30, 2010 to buy your new home, you will be throwing away your chance to cash in on the federal tax credit of between $8000 and $6500. That’s when this program expires (and it doesn’t look like it will be renewed). Also, consider this: New FHA rules go into effect on April 5, 2010 and they will make it even more expensive for you to buy your home after that date.

Finally, just one more piece of evidence that inflation will begin to hit the housing market within the next two quarters (and thus, will increase the price you will have to pay for your new home) ….Builders use lots of copper in the construction process (wiring, piping, etc.) and earthquake-stricken Chile is the 3rd largest producer of copper in the world. In our last issue, we pointed out that a lumber shortage is beginning to affect building prices. Now it appears that a shortage of copper will also begin to be a factor for builders. Don’t be a Mugwump. Call us.

IT’S HARD TO CLIMB INTO THE LIFEBOAT WHILE YOU’RE STILL UNDER WATER

The Wall Street Journal (March 3, 2010) featured an interesting article explaining why the federal programs designed to help troubled homeowners stay in their homes have had such limited success. In theory, homeowners should be lined up to take advantage of these programs. Around 37% of all borrowers with 30-year conforming fixed-rate mortgages have mortgage rates of 6% or higher. Many of these homeowners could refinance at today’s rates and reduce their rates by a full percentage point, thus saving, on-average, $2,600 every year. Yet, through December, only 188,000 borrowers who owe between 80% and 105% of the value of their homes had refinanced.

Some mortgage bankers say that higher fees by lenders have undermined the effort to encourage refinancing. For example, a borrower with 20% down and a 695 credit score seeking to refinance must pay fees equal to 1% of the loan amount. These fees rise for borrowers with weaker credit scores, higher loan-to-value ratios or other risk factors. These fees “have defeated the Fed’s purchase program”, according to Alan Boyce, a mortgage-securities-market veteran. These loan fees are “partly responsible for why there’s been no refinancing boom.”

Furthermore, many homeowners are so far underwater that refinancing is out of the question. For example, John Albright, a retired Navy officer in Manassas, VA,, hasn’t been able to refinance because the value of his home has plunged. He figures the market-value of his home is now around $275,000, but he and his wife owe more than $500,000 on their mortgage. When he tried to refinance, his lender told him he would have to come up with about $200,000 to pay down his mortgage before refinancing would be possible. Falling home values are one of the biggest factors raising borrowers refinancing costs. Furthermore, borrowers with less than 20% equity may have to pay for mortgage insurance.

As a result of all of these factors, borrowers who are now refinancing tend to be those who need it least. They are people who have very good credit “and the savings really aren’t going very far down the credit spectrum”, according to Michael Fratantoni, the head of research and economics for the MBA.

The Obama administration is planning to extend for a year a program launched last April to help homeowners with little or no equity to refinance. Last September, it was even expanded to include borrowers who owe up to 125% of their home value, but fewer than 2,000 borrowers have used the program through December. The program, which had been set to expire this June, was called “a failure” last week by analysts at Barclays Capital.

The bottom line is that, unless something changes, it looks like troubled homeowners will just have to keep paddling as fast as they can for a while.

HOMEBUYERS EXPECT THEIR AGENTS TO BE GOOD NEGOTIATORS

In 2009, the National Association of Realtors published the results of their survey of home Buyers and Sellers. The comments from the survey respondents reinforced our long-held opinion that that the negotiating skills of agents are a huge factor in bringing Real Estate transactions to successful and satisfying conclusions. Some of the survey responses indicated that:

99% of Buyers believe negotiation skills are “Very Important”. or, “Somewhat Important” in their Real Estate agent
Only 42% of all Buyers felt that their agent negotiated “better contract terms” on their behalf
Only 36% of all Buyers felt that their agents “negotiated a better price”
Buyers gave “Negotiating Skills” the lowest satisfaction rating of all agent skills and qualities.

Just a few of the areas of a typical real estate transaction in which negotiating skills become a factor are:

v Establishing current market value/price

v Listing details – What stays and what goes, allowances, etc.

v Amount of earnest money required

v Choices in financing

v Establishing and coordinating performance dates

v Inspection, replacement, repairs of problems

v Special add-ons such as Warranties, Job-Loss-Protection, etc.

With these facts as background, we were excited to hear that the Real Estate Negotiation Institute had scheduled their Certification Program for Real Estate Professionals this month in Colorado. This would mark the first time this program has been available in our state. Because we have always been convinced that negotiating on behalf of our clients is one of our major responsibilities, we immediately enrolled in this important CNE program and are pleased to announce that we have successfully completed the training and have been awarded the coveted “Certified Negotiation Expert” designation by the CNE. We are especially proud of this achievement, since only 5000 of the 1.1 million Realtors nationwide have been awarded this certification.

And, please remember, I would be honored to use my negotiating skills 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 37 years of providing Relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us.

COLORADO SPRINGS IS WIRED

Forbes.com has ranked Colorado Springs as the nation’s sixth-most-wired city in its annual ranking, ahead of technology hotbeds such as Boston and San Jose, California. Our first appearance on the list was triggered as a result of higher broadband usage than in previous years – 69%. Or, just 2% less than top-ranked Raleigh, NC., and eighth among all cities. We rank 11^th in the number of companies providing broadband access with 15, and also 11^th in Wi-Fi hot spots. How about that !!!

LATEST STATISTICS LOOKING GOOD !!

On Friday, March 5, 2010, The Gazette reported that “home sales and prices rose again last month in the Pikes Peak region, continuing a string of better showings for the local resale market”. Single family/patio home sales in February were 504, compared with 464 in February of 2009. New listings were 1,389, compared with 1,312 in 2009. It was the eighth straight month that year-over-year sales have improved, after nearly three years of declines. For the first two months of the year, sales totaled 1,035, a 12.9% increase over the same period in 2009. It looks like we are well into a rebound from the recession.

LAS VEGAS, HERE WE COME !!

This week, we will be attending the annual meeting of “Leading Real Estate Companies of the World”, in Las Vegas, NV. This is a great opportunity for us to keep current on the latest information about Real Estate and Relocation and it helps us serve our clients more effectively. Many of our readers will also be there, so we look forward to seeing you all there.

JOKE OF THE WEEK

With Springtime just around the corner, we thought it might be time for a couple of jokes about robins from Aesop’s fables. The first one warns us about complacency and the second one urges us to control our appetites.

1 Two robins were sitting in a tree. "I'm really hungry", said the first one. "Me, too," said the second. "Let's fly down and find some lunch." They flew to the ground and found a nice plot of plowed ground full of worms. They ate and ate and ate and ate until they could eat no more. "I'm so full I don't think I can fly back up to the tree", said the first robin. "Me, either. Let's just lay here and bask in the warm sun", said the second. They plopped down, basking in the sun. No sooner had they fallen asleep than a big fat tomcat sneaked up and gobbled them up. As he sat washing his face after his meal, he thought, "I just love baskin' robins."

2 Two robins were sitting in a tree. "I'm really hungry", said the first one. "Me, too," said the second. "Let's fly down and find some lunch." They flew to the ground and, in the middle of the road, they found some road apples (Our urban readers will have to find a horseowner to translate that expression for them). They ate and ate and ate and ate until they could eat no more. Then, they flew into the front yard of the adjacent lot and perched on the handle of the homeowner’s lawnmower to rest. Unfortunately, they had gorged themselves so much that, when they tried to fly off, they both had heart attacks and fell to the ground, dead. The moral to the story is, “ Don’t fly off the handle, if you are full of road apples”.

Enewsletter - March 1, 2010

Mon, 01 Mar 2010 14:49:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL REAL ESTATE MARKET

INFLATION IS COMING !! ......... INFLATION IS COMING !!

Last week, we pointed out how the costs of building materials and rising credit card fees were indicators of oncoming inflation. So, it’s no surprise that, this week, the U.S. Commerce Department reported that the U.S. economy grew at the rate of 5.9% in the fourth quarter of 2009. This “good” news was reported in the Wall Street Journal on February 27, 2010. Now, growth is good, but, the rule of thumb that is generally accepted is that quarterly growth over 2-2 ½% in any quarter means that inflation will increase within the following two quarters. That’s the ‘down” side of the good news. The NAR data on the 2009 fourth quarter median prices for homes referenced below, shows that Colorado Springs home prices are going up, which will only add to the inflationary pressure. Better buy now !!!

JOB LOSS PROTECTION PROGRAM JUST GOT BETTER

Last Summer, Salzman Real Estate Services, Ltd. became the only Colorado Springs source for the Job-Loss-Protection Program for Buyers. We are still the only local Realtor to offer this revolutionary program which has been so well-received by local HomeBuyers. The way the program works is that, within two years after closing, if a covered Homebuyer gets laid off from his or her job and is receiving unemployment benefits from their state, the JLP program will make their mortgage payments for them, for up-to six months.

When we introduced this program in 2009, the maximum monthly payment covered by this program was $1800. However, this past week, we were notified by the program sponsor that they had raised the maximum monthly payment to $2000. This increase should make the program even more appealing to prospective HomeBuyers. We are also pleased to announce that, through our network of relocation specialists, we are able to offer this plan to our out-of-state clients, as well.

The Job-Loss-Protection Program is funded by the Rainy Day Foundation, a non-profit organization, based in Washington, DC, and is marketed by Creative Alliances.

CAN MORTGAGE MONEY GET ANY CHEAPER ?

Last week, the great home mortgage rates that are now available were dramatically demonstrated to one of our clients who is moving into the area from Kansas. To their delight, we were able to find them a 30 year mortgage, with a rate of only 4 7/8%. However, after shopping around, we were also able to find them a 15 year mortgage, without any origination fees or discount points, with a rate of 4 3/8%. Just that small difference in rates will enable them to pay off their home in half the time they had planned for. The moral of the story …These rates can’t last forever …Don’t be a “Mugwump”…. Buy now.

LOOKING FOR WORK? CHECK THIS OUT

Every year, we attend the Annual Real Estate Cyberspace Convention. Since 2002, this event has regularly featured exciting ideas and tips about technology and marketing for Real Estate professionals. This year, they also featured a website designed to assist our clients and prospective clients who might be seeking employment. If any of our readers fit into that category, here’s a site that might be of help. www.currentlocaljobs.com. This site claims to have found 4064 jobs in the Colorado Springs area. Good Hunting !!

NAR QUARTERLY REPORT

Call us to receive the Quarterly report of housing prices from the National Association of Realtors.

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.

JOKE OF THE WEEK

It's the first day of school and the teacher thought she'd get to know the kids by asking them their name and what their father does for a living.

The first little girl says: "My name is Mary and my daddy is a postman."

The next little boy says: "I'm Andy and my Dad is a mechanic."

Then one little boy says: "My name is Jimmy and my father is a loser who prefers to lay on the couch all day and watch TV, while Mom goes off to work to support us."

The teacher gasps and quickly changes the subject, but later in the schoolyard the teacher approaches Jimmy privately and asks if it was really true what he had said about his father.

He blushed and said, "I'm sorry but my dad plays hockey for Team USA, and I was just too embarrassed to say so."

Enewsletter - February 22, 2010

Mon, 22 Feb 2010 14:55:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL REAL ESTATE MARKET

ANOTHER REASON TO BUY NOW !!! (OR, WOULD YOU RATHER BE A MULE?)

In previous issues, we have pointed out that when the looming Inflation hits, home prices will necessarily have to increase. Well, it doesn’t look like we will have to wait until the third or fourth quarter for the predicted inflation to begin. Last week, the Wall Street Journal’s Commodities Report noted that lumber prices have climbed 32% since January 1, 2010. This sudden climb in prices is the result of a shortage of lumber caused by the cut-backs of 45% in production at the lumber mills.

Between 2005 and 2009, lumber prices showed a consistent decline. However, as a result of the 2009 fall-off in residential construction, lumber mills laid off workers and decreased inventories. That kind of cut-back cannot be reversed overnight. It will take time for mills to re-hire workers and return to full production, and that will happen only when the mill owners are convinced that there is a sustainable rebound in residential construction. The predictable result of this present lumber-shortage is that builders will now have to delay construction as they wait for deliveries and will have to pay more for lumber, when it becomes available. That cost increase will be passed along to home buyers.

This impending cost increase reflects two basic facts of life. First of all, as we all learned in Economics 101, Supply and Demand will always balance each other out. When a commodity is in short supply, it will cost more…and that includes two-by-fours. The second lesson may not be familiar to most present-day city dwellers. Old-time mule-skinners used to say that the first step in training a mule was to hit him between the eyes with a two-by-four. That got the mule’s attention and helped him concentrate on learning. Well, it seems that the mill-owners have just hit us between the eyes with a two-by-four. Will it help us to learn our lesson?? We remind all prospective home buyers that the home you buy today will definitely be worth more tomorrow.

CREDIT CARD CHARGES GOING UP

As of today, new federal regulations governing credit card companies will go into effect. As with all governmental regulations, these new regulations will increase the credit card companies’ cost of doing business and will be passed along to the users of credit cards (in other words, to everybody). Just another example of how inflation is creeping in.

4TH-QUARTER STATS NOW AVAILABLE FROM SOUTHERN COLORADO ECONOMIC FORUM

The Southern Colorado Economic Forum of the University of Colorado at Colorado Springs has just published its 2009 fourth-quarter report. This comprehensive report contains invaluable information about our local economy and will assist you in making sound decisions about your Real Estate investments. It covers such topics as:

The Business Conditions Index: An overall view of 10 separate activities of products and services
Single-family permit trends
Multi-family permits
Year-to-date single-family home sales
Monthly single-family home sales
Average home-sale prices
Median home-sale prices
El Paso County foreclosure statistics
Multi-family vacancy rates
Emplanement trends at Colorado Springs Airport
Colorado Springs sales-tax collections
New car registration statistics

Please give us a call, if you would like us to forward a complete copy of this report. It will help you analyze our market and make good decisions about your home-buying and/or selling decisions.

ATTENTION !!! HOME BUYERS TAX CREDIT WILL EXPIRE ON APRIL 30, 2010

We urge you to take advantage of the Federal Tax Credit to Home-Buyers and BUY NOW !!!. This valuable tax-credit is a gift to you from Uncle Sam and may not be extended. If you would like to take advantage of this tax-credit, you must be under contract by April 30, 2010 and must close by June 30, 2010.

COLORADO SPRINGS CONSUMERS HAVE DECIDED TO START BUYING AGAIN

This past Wednesday, the city reported that city-sales-tax revenues in January, 2010 were 6.8% higher than in January 2009. While this gain was down 6.9% from the beginning of the Recession in January, 2005, it was still the largest percentage gain in two years. This is a good indication that local consumers are tired of waiting for someone to announce that the recession is over and they have decided that it’s time to start buying again. As the man said, “I heard there was a recession, but, I decided not to participate”. It’s great news !!!

SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”

JOKE OF THE WEEK

Because we are all watching the Winter Olympics on TV, we thought you might like to read the most commonly asked question about Canada and Vancouver. These questions were posted on an international tourism Website.

Q: I have never seen it warm on Canadian TV, so how do the plants grow? (UK)
A: We import all plants fully grown and then just sit around and watch them die.

Q: Will I be able to see Polar Bears in the street? (USA)
A: Depends how much you've been drinking.

Q: I want to walk from Vancouver to Toronto - can I follow the railroad tracks? (Sweden)
A: Sure, it's only four thousand miles, take lots of water.

Q: Is it safe to run around in the bushes in Canada? (Sweden)
A: So, it’s true what they say about Swedes.

Q: It is imperative that I find the names and addresses of places to contact for a stuffed beaver. (Italy)
A: Let's not touch this one.

Q: Are there any ATMs (cash machines) in Canada? Can you send me a list of them in Toronto, Vancouver, Edmonton, and Halifax? (UK)
A: We still use Beaver pelts.

Q: Can you give me some information about hippo racing in Canada? (USA)
A: A-fri-ca is the big triangle-shaped continent south of Europe. Ca-na-da is that big country to your North. Oh, forget it. Sure, the hippo racing is every Tuesday night in Calgary. Come naked.

Q: Which direction is north in Canada? (USA)
A: Face south and then turn 180 degrees. Contact us when you get here and we'll send the rest of the directions.

Q: Can I bring cutlery into Canada? (UK)
A: Why? Just use your fingers like we do.

Q: Can you send me the Vienna Boys' Choir schedule? (USA)
A: Aus-tri-a is that quaint little country bordering Ger-man-y, which is . . . oh, forget it. Sure, the Vienna Boys Choir plays every Tuesday night in Vancouver and in Calgary, straight after the hippo races. Come naked.

Q: Do you have perfume in Canada? (Germany)
A: No, We don't stink.

Q: I have developed a new product that is the fountain of youth. Can you tell me where I can sell it in Canada? (USA)
A: Anywhere significant numbers of Americans gather ... try the Hippodrome in Calgary on a Tuesday night! And come naked.

Q: Can you tell me the regions in British Columbia where the female population is smaller than the male population? (Italy)
A: Yes, gay night clubs.

Q: Do you celebrate Thanksgiving in Canada? (USA)
A: Only at Thanksgiving.

Q: Are there supermarkets in Toronto and is milk available all year round? (Germany)
A: No, we are a peaceful civilization of Vegan hunter/gatherers. Milk is illegal.

Q: I have a question about a famous animal in Canada, but I forget its name. It's a kind of big horse with horns. (USA)
A: It's called a Moose. They are tall and very violent, eating the brains of anyone walking close to them. You can scare them off by spraying yourself with human urine before you go out walking.

Q: I was in Canada in 1969 on R+R, and I want to contact the girl I dated while I was staying in Surrey, BC. Can you help? (USA)
A: Yes, and you will still have to pay her by the hour.

Q: Will I be able to speak English most places I go? (USA)
A: Yes, but you will have to learn it first.

Enewsletter - February 15, 2010

Mon, 15 Feb 2010 14:15:00 GMT

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL REAL ESTATE MARKET

EXISTING HOME SALES SURGE IN MOST STATES IN FOURTH QUARTER

The National Association of Realtors has just published the report on the median sales prices of single-family homes for the fourth quarter, ending December 31, 2009. The report includes statistics from the 151 largest metropolitan markets. Here are some of the highlights:

Sales were up 27.2% in the last quarter of 2009, compared to the same period in 2008.
That represents an increase of 13.9% in the number of sales over the previous quarter.
Prices rose in 67 of the 151 markets covered, while prices dropped in the other 84
The national median price of existing single-family home sales for the quarter fell to $171,900 (4.1%), representing the smallest decline in over 2 years.
The surge in home sales was driven by two factors: The Federal Home Buyers tax credit and the record-low mortgage interest rates.
Comparing the fourth quarter of 2009 with the fourth quarter of 2008, Colorado Springs showed a 1.5% increase in the median sales price of single-family homes.

These figures show an encouraging growth for the nation and for our local market.

HIGHER RATES AND INFLATION ARE BOTH ON THE HORIZON

Last week, Ben Bernanke, Chairman of the Federal Reserve, warned that the Fed will likely raise its rates to banks “at some point”. Based upon current market fragility and the history of past Fed actions, the increase will probably not take place immediately, but will probably take place in the second half of the year.

The Fed plans to end a $1.25 trillion mortgage-bond-purchase program that has helped keep mortgage interest rates near a record-low 5%. The Mortgage Bankers Association, an industry trade group, predicts the end of the Fed mortgage-bond-purchase program could push rates up by roughly 0.5%. For a $300,000 fixed-rate mortgage, that would increase the monthly payment by $125.

Coupled with this Fed-activated increase in the cost of mortgages will be the inevitable increases in the cost of everything that will result from inflation. The currently-proposed budget will definitely trigger some inflation and, if the proposed health-care and cap-and-trade bills, etc. are passed, the looming inflation will increase even more.

The good news is that you can now buy your home at an attractive price and at an excellent mortgage-interest rate. Furthermore, when inflation kicks in, the home you buy today will increase in value. The bad news is that, if you don’t act decisively now, the home you buy next year will have a higher price tag and a higher interest rate. Call me.

COLORADO SPRINGS COST-OF-LIVING IS BELOW NATIONAL AVERAGE

According to the data released this week by the Council for Community and Economic Research, 2009 living costs in the Colorado Springs area dropped to the lowest level in 19 years. The survey, which studies 322 national metropolitan areas, shows our local cost-of-living in 2009 was 7.2% below the national average …the lowest level for any full year since 1990. From the workers’ perspective, this good news is balanced out by the fact that our average wages are 8% to 10% below the national average, so our lower cost of living does not necessarily result in a higher standard-of-living, but, from the perspective of outside companies looking to reduce their expenses, the lower costs of doing business in Colorado Springs could be a significant benefit to their bottom line. Considering the skyrocketing business-tax rates in many other parts of the country, our area looks better and better as the place to relocate businesses.

SALZMAN NOW OFFERS THE “NEIGHBORHOOD PREFERRED CUSTOMER PROGRAM”

Salzman Real Estate Services can now provide clients with a 15% discount on all painting and decorating products, through the Sherwin Williams “Neighborhood Preferred Customer Program”. As a member of this money-saving program, we can now offer these discounts to our clients in every part of the country, whether they are buying or selling their home. Please contact us for the details of this helpful service.

REALTOR MAGAZINE LISTS 4 REASONS TO SELL NOW

Selling a property in this tough market can seem like a challenge, but Realtor® Magazine lists 4 factors that make this a good time to sell.

Sell low and Buy low. Because all property values are down, the loss on the property a home owner sells is really a paper loss, because the next property he buys will also be a bargain. If he buys smartly, when prices come back in a few years, he’ll be in better shape.
Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.

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, or, about our CyberHomes Complete Market Analysis of a property, please contact us.

JOKE OF THE WEEK

In honor of Mardi Gras, the following check list will help you determine whether you are really a Louisiana native:

...When out of town, you stop and ask someone where there is a drive-thru daiquiri place, and they look at you like you have three heads. ... Every so often, you have waterfront property. ...You learned to drive a boat before you could drive a car. ... You can name all of your 3rd cousins. ...You can plan your wedding around hunting season & LSU football. ...Your burial plot is six feet over rather than six feet under. ...You're not afraid when someone wants to "ax you something". ...You don't worry when you see ships riding higher in the river than the top of your house. ...The smell of a crawfish boil turns you on more than HBO. ... You assume everyone has mosquito swarms in their backyard. ...You like your rice and politics dirty. ...You pronounce the largest city in the state as "Newawlins". ...You know those big roaches can fly, but you're able to sleep at night anyway. ...You can't think of anybody that can cook better than your momma. ...Your last name isn't pronounced the way it's spelled.

Enewsletter - February 8, 2010

Mon, 08 Feb 2010 01:00:00 GMT

HARRY’S COLUMN

HOW DOES THE LOCAL REAL ESTATE MARKET LOOK ?? --- VERY ENCOURAGING !!

The January, 2010 Sales and Listing statistics for the Colorado Springs area were just released and they look very encouraging for the local Real Estate market and for the local economy. The month of January 2010 showed sales of 464 homes, which represents an increase of 12.3% over January of 2009. The median price of homes sold in January, 2010 was $178,290, an increase of 3.1% over 2009. This was the eighth straight monthly gain in our local market. As a result, the inventory of available homes on our market went from 4925 in January of 2009, to 4120 in 2010, a reduction of 16.3%. All of these statistics indicate that the worst is behind us and our local market is improving.

One of the factors that helped improve our local sales figures was the First-Time Home Buyers Tax credit of $8000, which was recently extended to April 30, 2010 and expanded to include a $6500 credit to existing homeowners.

When you look at the shrinking inventory of available homes (which will eventually result in higher prices), the excellent long-term mortgage interest rates which are now available (but, perhaps, not for long), plus, the looming inflation that will definitely follow the proposed increases in government spending, plus, the huge influx of new prospective Buyers and Renters now entering the market, the bottom line becomes ACT NOW.

As a prospective HomeBuyer or Investor, you cannot afford to be a Mugwump, (i.e. an indecisive bird who perches on the fence with his ‘mug’ on one side and his ’wump’ on the other.. ) This market will not stay this good for very long. Give me a call !!

THE PRICE OF HOMES IS GOING TO GO UP SOON …AND WE’RE NOT JUST CRYING, “WOLF”.

For the past year, we have been predicting an upcoming increase in the price of homes, caused by several factors. If you are a prospective HomeOwner or an Investor, keep in mind that the window on the great deals you can get in our current market is going to close in the latter part of this year…..probably in the third or fourth quarter. Just for the record, we would like to list some of the factors that we predict will result in this increase.

Credit is about to tighten. The Wall Street Journal reports that the Chairman of the Federal Reserve, Ben Bernanke, is now in the process of laying out a blueprint for tightening credit. This will result in higher mortgage rates. We predict an increase of ½% in the third quarter of 2010 (Translated into pocketbook terms, that ½% increase will add about $100 per month to your monthly payments for a loan of $250,000.)
Some banks are already beginning to tighten their loan standards for residential mortgages. According to WSJ, some 17% of banks said they were making mortgage approval standards tougher even for borrowers with high credit scores and well-documented credit histories.
Inflation will begin to kick in during the latter part of this year and, if Congress passes even a portion of their proposed increases, (Health Care, Cap and Trade, etc.), inflation will force prices on everything to skyrocket. The Wall Street Journal, Feb.6, 2010, featured a cover article titled, “Protecting Yourself from the Giant New Deficit …How to Keep the Scary U.S. Debt From Eating Up Your Assets”. An excellent tool for protecting the value of your assets, according to the article, is to buy a home, or, trade-up from your existing home.
The Federal process of creating “Mortgage Backed Securities” which are the foundation for funding Fannie Mae and Freddie Mac will expire on March 31, 2010 and will be replaced by a new process which will increase the cost of capital in financial markets.
The inventory of available homes is shrinking and, as supply goes down, prices will go up.

INVESTORS, TAKE NOTE. AS HOME OWNERSHIP GOES DOWN, RENTALS GO UP

On February 2, 2010, the Commerce Department reported that, at the end of 2009, only 67.3% of all Americans owned their own homes. That number was the lowest since the second quarter of 2000. (The all-time highest rate of ownership was 69% in 2004, when liberal credit underwriting standards were bringing large numbers of traditionally-renting families into personal ownership).

These recently-displaced families are some of the almost-4-million Americans who have lost their homes through foreclosure or short-sales. Just because they have recently lost their homes, they have not just dropped off the edge of the earth. Rather, they have become the “New Renters”, a class of families which features a different ‘renters profile’ then we have seen in the past. These “New Renters” have demonstrated a respect for their personal property and a willingness to maintain the quality of their residences. In many cases, they even have a history of making their monthly payments on time.

If you are an Investor, these “New Renters” represent a great opportunity to purchase rental property. Please give me a call to discuss this new opportunity in more detail.

WHAT DO BUYERS WANT ??

The February issue of REALTOR® Magazine contained a list of the things that today’s Buyers are looking for as they consider purchasing a new home. This list is the result of a survey of home Designers and Builders and should be very helpful to homeowners who are considering any remodeling projects. It allows you to spend your remodeling money where it will be most likely to show a good return on your investment, when you sell your home:

Large kitchens and islands
Energy efficiency, including energy-efficient appliances, super insulation and high-efficiency windows
Home offices
Main-floor master suites
Outdoor living space
Ceiling fans
Soaking tubs in the master suite and/or an oversized shower with a seating area
Stone and brick exteriors, rather than stucco or vinyl
Community walking paths and playgrounds

10. Two-car garages, but three-car garages are even more desirable

Now, get busy !!!

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, or, about our CyberHomes Complete Market Analysis of a property, please contact us.

JOKE OF THE WEEK

In honor of the Super Bowl, Here is the story of the Cajun in Hell

A Cajun who died went to hell. The devil assigned him the usual punishment....put him in the mass pit where the heat was melting others. The devil came back sometime later surprised to find the Cajun just sitting around, not even misting, much less sweating. "How come you're not so much as sweating here where everyone else is screaming for relief from the heat?"

The Cajun laughed and said, "Man, I was raised in the bayous of Sout Looziana. Dis ain't nothin' but May in Morgan City to me!"

The devil decided to really put the Cajun through it. He put him in a sealed off cave in the pit with open blazes and four extra furnaces blasting. When he came back, days later, the Cajun was sitting pretty, had barely begun to bead up with sweat. The devil was outraged.
"How is this possible? You should be melted to a shrieking puddle in these conditions!."

The Cajun laughed even harder than before."Hey, man! I done tole you. I was raised in Sout Looziana. You tink dis is heat?! Dis ain't nothin' but August in Cow Island !"

So the devil thought, 'Alright, a little reverse ought to do the trick.' He put the Cajun into a corner of hell where no heat ever reached. It was freezing and to add to the Cajun's misery, he added massive icebergs and blasting frozen air. When he returned, the Cajun was shivering, ice hung from every part of him but he was grinning like it was Christmas.

Exasperated, the devil asked "HOW? How is it possible?!You're impervious to heat and here you sit in conditions you can't be used to...freezing cold and yet you're happier than if you were in heaven. WHY?!"

The Cajun kept grinning and said, "Hey, man! Since dis is Hell, it must mean de Saints won da Super Bowl?"

Live in the Broodmoor

Thu, 04 Feb 2010 12:00:49 GMT

REDUCED**Stately 2-story w/finished basement* Central Air* Views* 5BD, 5BA, Office, Family Rm, Game Rm* 4 fireplaces* 15' ceilings, wood flooring, crown molding, skylights, ceiling fans* ML allows formal/informal family areas* Formal DR & LR* Gourmet kit w/refrig, double oven, island, pantry, walk-out to huge patio w/built-in BBQ* Jack/Jill bedrm w/bath* MBR has Mr/Mrs walk-in closets, marble shower, jetted tub, fireplace* Interior wooden blinds* Lots of windows* Incl auto sprinklers, sec sys, humidifier* Must see!

Enewsletter - February 1, 2010

Mon, 01 Feb 2010 15:15:00 GMT

HARRY’S COLUMN

BUYING OR SELLING ? LOOK FOR THE AGENT WHO CAN OFFER INCENTIVES

In today’s economy, most consumers are looking for “deals”. As a result, smart businesses are offering incentives to their customers. Restaurants are offering “$20 dinner for two” deals. Grocery stores are featuring their own discounted brands. Smart consumers are taking advantage of these offers.

As for incentives in the housing market, some builders are now offering lower-cost, smaller houses to retirees. One builder stated, “The 1200 square foot house used to be built only on an odd lot where we could build little else. Now, it could be more of a mainstream product”. Other builder incentives feature such things as bargain-basement prices on upscale cabinets and spas. These ‘extras’ often make the difference between making or losing a sale.

If Real Estate Buyers and Sellers want to cash in on this trend, they should look for a Real Estate agent who offers the kind of incentives that will enable them to buy or sell their homes more efficiently and more profitably. For Sellers, this means an agent who can make potential Buyers feel more comfortable with their decision to purchase …for example, our Interstate Job Loss Protection Program reassures the Buyer that, if he loses his job, his mortgage payments (up to $1800 a month), will be made for up to 6 months, while he is looking for another job. Another example of an incentive that works for both Buyers and Sellers is our CyberHomes Complete Market Analysis of a property. This program enables both parties to get a realistic analysis of the home’s true market value.

But, perhaps even more important in today’s tight market, we offer a very effective package of valuable incentives to our clients who are in the process of buying or selling a home. As long-time specialists in Relocation, we have developed close, working relationships with local lenders, banks, service providers, mortgage brokers, moving companies, staging companies, remodeling companies, etc. Furthermore, because we are affiliated with a network of relocation specialists in all parts of the country, we can offer assistance with these services to our clients nationwide. In addition, we can assist with arranging for temporary housing, trailing spouse re-employment, auto rentals and purchasing, discounts on furniture, information about the various neighborhoods and school districts and a variety of other specialized services that are extremely helpful to our clients as they go through the confusing process of relocating their families.

Putting a “For Sale” sign in your front yard is easy. Getting the best price possible for a Buyer or a Seller is the goal of any Real Estate agent who is worth his salt…. but using incentives to generate an additional $10,000 in our client’s pocket is our goal. Give us a call.

BUSINESS WEEK HIGHLIGHTS BLACK FOREST

On January 30, 2010, Business Week published a list of the fastest-growing cities in every state in the U.S. This year, they selected Black Forest as the fastest-growing “city” in Colorado. Here are some of the facts that led them to this decision:

Number of households – 13,072 (This represents an increase of 106% since 2000 and an increase of 6% since 2009

Average household income - $107,436 (This represents an increase of 13% since 2000)

Yes, yes, we know that Black Forest is not a city, but rather, it’s an area within the city of Colorado Springs, and Business Week’s accompanying explanation covers that fact, but the point is that Black Forest has shown a tremendous growth, in spite of the troubled economy.

There are some very attractive listings in the Black Forest and we would be happy to show them to you. Give us a call.

GOOD NEWS..BAD NEWS. IT’S A BALANCING ACT

On January 31, 2010, the Gazette reported that our local economy has seen the bottom of the recession. Four of the local monthly economic indicators for December, 2009 show good news but four other indicators show that we have still not reached full recovery.

The Good News:

Initial claims for unemployment are down 19.9%

Single-family home permits are up 104.7%

New auto and truck registrations are up 20.4%

Taxable retail sales are up 2.5%

The Bad News:

Wage and salary jobs are down 3.7%

Unemployment rate is up to 7.9% (but that’s better than the national rate of 10%)

Hotel occupancy rate is down 33.6%

Foreclosure filings are up 32.4%

The article points out that, although the indicators all look promising, full recovery might take a couple of years. In the meantime, there are some terrific deals available in our local Real Estate market.

HAVE YOU LISTENED TO MY LATEST PODCAST?

Every month, we are interviewed about local and national trends in Real Estate, topics of interest in our city, the latest news about tax credits, FHA rule changes, current sales and listing statistics, the status of our local market as it compares with the national picture, and a variety of topics that you might find helpful in planning your next Real Estate investment. To hear my most recent interview, just click on the podcast link at the top of this email.

And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us.

JOKE OF THE WEEK

There has been a lot of speculation recently about the direction our country is taking. In order to illustrate the various terms used to explain our options, we offer the following examples:

SOCIALISM: You have two cows. The state takes one and gives it to someone else.
COMMUNISM: You have two cows. The State takes both of them and gives you the milk.
FASCISM: You have two cows. The State takes both of them and sells you the milk.
MILITARY DICTATORSHIP: You have two cows. The State takes both of them and shoots you.
BUREAUCRACY: You have two cows. The state takes both of them, accidentally kills one and spills the milk in the sewer.
CAPITALISM: You have two cows. You sell one and buy a bull.
PURE DEMOCRACY: You have two cows. Your neighbors decide who gets the milk. REPRESENTATIVE DEMOCRACY: You have two cows. Your neighbors pick someone to decide who gets the milk.

AMERICAN DEMOCRACY: The government promises to give you two cows if you vote for it. After the election, the president is impeached for speculating in cow futures. The press dubs the affair "Cowgate".

ANARCHY: You have two cows. Either you sell the milk at a fair price or your neighbors kill you and take the cows.

Enewsletter - January 25, 2010

Mon, 25 Jan 2010 01:00:00 GMT

HARRY’S COLUMN

EVERYBODY LOVES COLORADO SPRINGS

On January 21, 2010, the Colorado Springs Regional Development Corporation released their annual report on the economy of Colorado Springs in 2009. In their 20 page report, they included some references to our city in various national publications. In no particular order, here are some of the recognitions that Colorado Springs received in 2009:

The University of Colorado at Colorado Springs was ranked 6^th best in the nation for engineering and the quality of all programs – U.S. News and World Report

3^rd Best Cities for a Housing Recovery – Forbes.com

24^th Metro Least Touched by Recession – Business Week

One of the best Southwest cities for defense jobs – FedSmith.com

9^th in America’s Best Midsize Metropolitan Areas – MSNBC

10^th on the list of Best Places for Business and Careers – Forbes Magazine

8^th best city to find a fresh start – Business Week.com

6^th top city for defense jobs – ClearJobs.com

9^th in America’s “Best Bang For The Buck Cities” – Forbes.com

3^rd Midsize Magnet city – Next Cities

14^th for areas with the cleanest air – American Lung Association

Best Place to Live – Outside.online

7^th Best City to Raise an Outdoor Kid – Backpacker Magazine

3^rd most-obsessed sports town in America – Men’s Health Magazine

2^nd fittest city in the country – Men’s Fitness Magazine

One of the top “10 Best Drivers’ Cities in America” – Car and Driver Magazine

10^th best drivers – Allstate America’s Best Drivers Report

Well, this is all fine and dandy, but many people think it might be a good idea to keep all this positive P.R. a secret. They don’t want everybody in the world to know what a great place this is to live. But we wanted you, our readers, to know, so you could take advantage of the opportunity to buy Real Estate right now, while prices and interest rates are low and before the secret is out.

APRIL 5 AND APRIL 30 – TWO DEADLINES FOR BUYERS AND SELLERS

There are two upcoming deadlines that will affect both Buyers and Sellers of Real Estate nationally. We will outline both of these deadlines here:

The first deadline for Buyers and Sellers is April 5, 2010. On that date, the Department of Housing and Urban Development will initiate new regulations for FHA loans. Among the changes that will take affect on that date are:

1. The mortgage insurance premium for FHA mortgage insurance on loans which are assigned on or after April 5, 2010 will be raised from 1.75% to 2.25% of the loan amount.

2. Individuals who have a credit score of less than 580 will be required to pay a minimum down-payment of 10% of the sales price, rather than the traditional minimum of 3.5%.

3. The percentage of loan fees and closing costs which the seller is allowed to provide will be reduced from 6% to 3%.

These changes will make purchasing a home more expensive for Buyers and will reduce the incentives that Sellers can offer to prospective Buyers.

Because there will probably be a lot of people who want to beat this deadline, there could easily be a backlog of loan applications, so we are advising our clients to buy in March, to insure that their loans will be assigned by April 5, 2010.

The second deadline involves the Homebuyers Tax Credit, which provides for a tax credit of $8000 for first-time Buyers and up to $6500 for repeat Buyers. This tax-credit will no longer be available for anyone who does not have a contract in place by April 30, 2010 and which must close by June 30, 2010. Please give us a call to discuss the details of this program which could be a very valuable benefit to you.

Buyers, please contact us to learn more about the soon-to-be-expired opportunities for purchasing your home. Sellers, please contact us for information about marketing your home, especially for assistance in properly pricing your home in this competitive market.

The bottom-line for both of these significant deadlines is that, whether you are a prospective Buyer or Seller, NOW IS THE TIME TO MAKE YOUR MOVE !!!

NEW IRS FORM AVAILABLE FOR FIRST-TIME HOMEBUYERS CREDIT

Department of the Treasury Form 5405 is now available online for individuals claiming their tax credit as first-time homebuyers, or, as repeat buyers. Click here for a copy of the form.

U.S.CONSUMER CONFIDENCE REACHES HIGHEST LEVEL SINCE SEPTEMBER 2008.

After declining throughout much of 2009, American consumer confidence improved sharply in January 2010, returning to levels not seen since the financial crisis began in September, 2008. This was reported in the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index, as reported in RISMEDIA. Driven by the largest-single-month gain in expectations for jobs since the inception of the Index eight years ago, the RBC Index for January 2010 stands at 58.3, up 19.3 points from its December 2009 reading of 39.0.

On the local front, sales tax collections rose 2.54% in December 2009, compared to December of 2008. This represented the largest monthly gain since January of 2008 and was the second consecutive year-to-year gain, in spite of the fact that local unemployment in November, 2009 was reported at 7.3%. Compared to the reported national unemployment figure of 10%, that would place us about 20% better-off than the rest of the country.

JOKE OF THE WEEK

A man receives a call from his Credit Card Company,

“Sir, we have detected an unusual pattern of spending on your card, and we are calling to see if everything is alright.”

"Yes,” replied the man. “My card was stolen over a month ago.”

“Why didn’t you report your card as stolen?” asked the card company representative.

The man replied, “Well, whoever stole my card is spending a lot less than my wife!”

Enewsletter - January 19, 2010

Tue, 19 Jan 2010 09:03:00 GMT

HARRY’S COLUMN

INCENTIVES ARE THE BUZZWORD

Considering wherever you might be within the current position of your business cycle, various types of incentives are what will create the positive change. Incentives can be all types, from the Federal Government, to states and cities; from the Seller who must sell their house to using various bonuses to attract a Buyer.

In order to receive the greatest rate of return, here are some examples of marketing concepts that we have found to be mutually beneficial – whether you are a Buyer or a Seller. (Because all elements affecting Real Estate values, marketability, timeliness, etc., are localized, the enticements presented here are focused on the Colorado Springs area. Many of these ideas can certainly be correlated to other cities.)

One example of our services that can positively affect a client is our “incentive” of “Job Loss Protection”.

In the past week we have referred a doctor who is moving to Colorado Springs from Philadelphia to the proper Real Estate company to sell his house in Philadelphia. We met with a local Seller who will be moving to Tennessee, to place their home in the Monument area on the market. In both cases, our “Seller” can use our Job Loss Protection as a great benefit to outperform their listing competition.

To remind our readers of the highlights of that marketing advantage, it is patterned after what Hundai Motors has done since 2008. We’re sure you have seen their ads on TV. In a nutshell, what we offer is that, from the time of a closing, if a Buyer loses their job and gets “laid off”, we have a non-profit firm in Virginia to subsidize the Buyer’s monthly payment up to $1800 per month for up to 6 months. In order for the Buyer to obtain that terrific benefit, all they have to do is demonstrate that they are receiving unemployment benefits from the state.

In order to fund this selling enhancement, at the time of closing, the Seller is debited only $500 on their HUD statement. It therefore reduces the capital gain upon the sold property. We have found that this feature is a definite win for both the Buyer and the Seller.

Some other enticements that we offer to our Buyers, Sellers, corporate accounts, etc., are.:

Cyberhomes Complete Market Analysis for prospective Buyers

One year of Home Owner Association Fee

Family Gym Memberships

Riding Lawnmower (park in garage with a large bow and sign)

One year of Property Insurance

Snow Blower (park in garage with a large bow and sign)

One year paid Lawn Care, Maid Service, Snow Removal, etc

Gift card to Home Depot or Lowes

Gift cards for local Fine Dining.

Allowance for upgrades such as Hardwood Floors, Counter tops, Appliances, Light Fixtures

Allowance to upgrade Kitchen / Bath

Interest Rate Buy Downs

Prepay Real Estate Taxes for 6 months to a year

Pay Buyers Closing Costs

Bonus Commission to the Selling Agent

½ Day Packing Service

Packing Materials

Staging

Reimburse Inspection Fee upon closing

Just look at everything you’re missing, if you don’t buy a house from us !!!!

We welcome the opportunity to see how we can implement these ideas into your individual needs to outperform your competition.

WHY YOU WILL BENEFIT AS A REAL ESTATE INVESTOR

We can no longer say, “Well, it’s business as usual”, or, “Well, the last time we came out of a recession, we did …..”. There are an absolute different set of criteria staring at us in the mirror. Here are some thoughts that, when implemented properly, should put some money into your pockets.

No matter what city you are reading this from, because it goes nationwide, these issues can be localized and are not exclusive to Colorado Springs. We are seeing an above average demand for good-quality rental homes, from both investors and from tenants. You see, it is our belief that many people who are losing their homes due to a foreclosure or short sale are still “credit worthy”. Their foreclosure problem might be because they were placed into the wrong mortgage by their lender. In other words, perhaps they didn’t meet a conservative type of qualification for the type of mortgage loan that their lender advised them to obtain. We are talking about millions, yes, millions of loans that were provided with “built-ins” like; zero funds down, a negative ARM, a loan of 105% to 125% of the sales price, etc.

Those people do not seem to be like the same borrower profile that the industry had to deal with prior to about 2005.

The increase in rental demand that we are seeing requested for rental homes today are from a tenant profile of a family which has been a recent property owner. They have typically maintained proper care for both the interior and exterior of their homes. Another major reason that the “tenant profile” has been established is because they were advised to obtain a mortgage with an adjustable rate. When the lender went to re-establish the new rate, the market value of the property was considerably below the current loan balance. Based upon the negative equity in the home, lenders either required the borrower to pay down the current loan balance or, if the homeowner was either unable or unwilling to do so, the lender began the foreclosure process.

Based upon a huge increase in this type of foreclosures and short sales, those former homeowners are increasing. There are many more people who must rent a home today, compared to the number of tenants prior to the middle of the past decade.

The point is that we are seeing a much greater demand for nicer rentals than we have seen in past years.

This ‘tenant profile’ should be a better quality tenant because they are used to properly taking care of their personal home.

Therefore, since the market is providing the investor with:

A better quality of tenant

The ability to select a better quality of rental house to buy

Record low interest rates for a “non-owner occupant”

Appreciation in housing values because of the looming inflation

You should probably give us a call to allow us, as an investor advisor, to give you some ideas of how the Colorado Springs residential market can be a positive factor in your investment portfolio.

GAZETTE PUBLISHES MOST RECENT HIGH-SCHOOL GRADUATION RATES

The Colorado State Board of Education has released the local high-school graduation rates for 2009. You will note that, among the best performing districts, are Academy (2), Lewis-Palmer (38) and Cheyenne Mountain (12). Courtesy of the Gazette, we are linking the statistics here.

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 37 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.

To hear my latest podcast, just click on the icon at the top of this email and, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us.

JOKE OF THE MONTH

Once upon a time, in a place overrun with monkeys, a man appeared and announced to the villagers that he would buy monkeys for $10 each.

The villagers, seeing that there were many monkeys around, went out to the forest, and started catching them.

The man bought thousands at $10 and as supply started to diminish, they became harder to catch, so the villagers stopped their effort.

The man then announced that he would now pay $20 for each one. This renewed the efforts of the villagers and they started catching monkeys again. But soon the supply diminished even further and they were ever harder to catch, so people started going back to their farms and forgot about monkey catching.

The man increased his price to $25 each and the supply of monkeys became so sparse that it was an effort to even see a monkey, much less catch one.

The man now announced that he would buy monkeys for $50! However, since he had to go to the city on some business, his assistant would now buy on his behalf.

While the man was away the assistant told the villagers, “Look at all these monkeys in the big cage that the man has bought. I will sell them to you at $35 each and when the man returns from the city, you can sell them to him for $50 each.”

The villagers rounded up all their savings and bought all the monkeys.

They never saw the man nor his assistant again, and once again there were monkeys everywhere.

Now you have a better understanding of how the stock market works

Enewsletter January 11, 2010

Mon, 11 Jan 2010 15:16:00 GMT

HARRY’S COLUMN

TOWN HALL MEETING PREDICTS GROWTH FOR PIKES PEAK AREA

On January 7, 2010, we had the opportunity to attend the “Town Hall Meeting” conducted by Fred Crowley, PhD, of the Southern Colorado Economic Forum. In this meeting, Dr. Crowley analyzed our local economy in 2009 and made projections for 2010. Some of the significant charts which he used to illustrate his various points are linked here, for your information.

The Business Condition Index for El Paso County illustrates that our local economy has bottomed out and is starting to rebound, as we have been predicting for the past several months. The PPAR monthly statistics which give the details of how our local Real Estate fits into this overview of business conditions show the same kind of encouraging growth.

The Annual Growth Rate of our gross domestic product shows the positive direction of the nation, including Colorado, but Colorado Springs leads both the nation and the state in its recovery.

One of the best growth industries has been “Professional and Technical Services”, with companies in this field employing large numbers of skilled workers. Again, Colorado Springs is a leader in this area.

Per capita sales tax revenues has shown a consistent annual decline, with another decline predicted for 2010, primarily because of slow sales in ‘big ticket’ items and housing, plus the continuing growth of consumer purchasing on the internet.

The specific economic projections for El Paso County show encouraging signs of recovery in 2010, with increases in population, wages, personal income, retail activity and housing permits.

If you would like a copy of this very informative 100+ page report, just give us a call or send us an email and request a copy and we will be happy to forward one to you.

PIKES PEAK ASSOCIATION OF REALTORS ISSUES YEAR-END STATISTICS

The recently-issued PPAR year-end statistics contain some encouraging information for prospective home buyers and sellers.

The total number of single-family home sales in Colorado Springs in 2009 was 25.9% higher than it was in 2008, with December showing the seventh consecutive monthly increase.

The average home sale price in December 2009 was $223,143, compared to $214,062 in November 2009 and $227,376 in December 2008.

The median home sale price in December 2009 was $192,500, compared to $187,950 in November 2009 and $180,000 in December 2008.

A very significant statistic was “Total Active Listings”. At year end, that number was 3951, compared to 4951 at the end of 2008. That translates into a reduction in inventory of 20.2%.

The number of homes sold in 2009 in Colorado Springs was 8745, compared to 8339 in 2008, for an increase of 4.9%

All of these numbers demonstrate that, during 2009, there was a definite decrease in the “supply” of available homes, together with an increase in both median and average prices.

REAL ESTATE SETTLEMENT PROCEDURES ACT CHANGES AS OF January 1, 2010

Some new RESPA changes were established to provide borrowers with essential information about and adequate time to understand the terms of their home mortgage loans.

Under the new regulations, lenders, mortgage brokers an closing agents will be required to provide borrowers with an easy-to-read Good Faith Estimate (GFE) that will clearly answer the key questions they may have when applying for a mortgage, including:

What is the term of the loan?

Is the interest rate fixed, or, can it change?

Is there a prepayment penalty should I choose to refinance at a later date?

Is there a balloon payment?

What are the closing costs?

The new GFE will consolidate closing costs into major categories and display total estimated settlement charges prominently on the first page so the borrower can easily compare loan offers. Loan originators are required to provide borrowers with the GFE within three days of receipt of a completed mortgage application. To allow borrowers the opportunity to compare loan offers, the loan originator cannot require verification of application information (tax returns, etc.) until after the applicant receives the Good Faith Estimate and makes the decision to proceed with the loan.

Under the new regulation, closing agents will now be required to provide borrowers with a new three-page RESPA Reform Settlement (HUD-!) that clearly compares final settlement costs with the GFE costs. Lenders will be working more closely than ever with closing agents to ensure compliance with the new HUD-1 Settlement Statement.

We understand the impact of this new rule and its implications in the purchase process and this is another reason why We should be your Realtor.

JOKE OF THE WEEK

In honor of the upcoming Super Bowl, we are listing some of the cleaner jokes about the various teams that play in the NFL. (Don’t blame us …We didn’t make these up).

The Seven Dwarfs were marching through the forest one day they fell in a deep, dark ravine. Snow White, who was following along, peered over the edge of the steep chasm and called out to the fallen dwarfs. From the depths of the dark hole a voice returned, "The Seattle Seahawks are Super Bowl contenders."

Snow White thought to herself, "Thank God... at least Dopey's survived!"

Why do San Diego Chargers players keep their Wonderlic results on their dash boards?

So they can park in the handicap spaces.

What do you get when you put the girlfriends of a dozen Tennessee Titans fans in one room?

A full set of teeth!

Why did the NY Jets players miss their flight for the big game?

They were stuck on a broken escalator!

If you see an Oakland Raiders fan on a bike, why should you not swerve to hit him?

It could be your bike.

You're trapped in a room with an angry grizzly bear, a hungry Lion, and a fan of the Oakland Raiders. You have a gun with two bullets. What should you do?

Shoot the Raiders fan… twice.

What do you call a Buffalo Bill’s fan with half a brain?

Gifted!

Why the Arizona Cardinals are like a possum?

Because they play dead at home and get killed on the road.

What did the average San Francisco 49er player get on his Wonderlic test?

Drool!

Why did The Dolphins choose Orange for the team color?

So the fans could wear it on Saturday to the game, on Sunday to go hunting, and the rest of the week picking up garbage on the highways.

What's the difference between a winning Raiders team and a UFO?

Someone has seen a UFO.

What do you call a Cleveland Brown with a Super Bowl ring?

A thief

Why doesn't Columbus, Ohio have a professional football team?

Because then Cleveland would want one.

What do you call the Broncos on their opponents 10-yard line?

Lost

What's the difference between a Raiders fan and a Chimp?

Ones hairy, stupid and smells, and the other is a Chimpanzee.

What do Raiders fans and laxatives have in common?

Both irritate the absolute crap out of you.

What do you say to a Raiders fan with a job?

"I'll have a Big Mac, fries and a coke, please."

What's the difference between the Buffalo Bills and a dollar bill?

You can still get four quarters out of a dollar bill

Enewsletter -January 4, 2010

Mon, 11 Jan 2010 01:00:00 GMT

HARRY'S COLUMN

TWO GOOD REASONS FOR BUYING YOUR HOME RIGHT NOW

1. The Federal Tax Credit of $8000 for First Time Home Buyers ($6500 for Home Owners) is, essentially, a discount on the price of your new home.

2. The El Paso County Bond Program which was announced last week offers 30 year, 4.625% fixed rate mortgages to qualified Buyers who do not need down-payment assistance. This is a below-market rate. These Bond Program loans are available for homes throughout El Paso County, including the City of Colorado Springs. This is a great opportunity to lock in a very attractive loan on your new home.

To be eligible for these Bond Program loans, Borrowers cannot have owned a home in the past 3 years, unless they are purchasing a home within a "Targeted Area". (Targeted Areas are census tracts designated by the IRS and will be specifically identified in the Agreement.) Note that Qualified Veterans are exempted from the First-time homebuyer requirements.

The maximum family incomes that qualify for these loans are:

For families of 2 or fewer, $71,000, if buying within Non-Targeted areas, or, $85,200, if buying in a Targeted area.

For families of 3 or more, $81,650, if buying within Non-Targeted areas, or, $99,400, if buying in Targeted areas.

To be eligible, a family home must have a maximum acquisition cost of $283,000 in Non-Targeted areas, or $ 347,000 in a Targeted area.

This program will be excellent for Veterans who do not need assistance with their down-payment and the seller can pay all closing costs and prepaids, allowing the Vets to buy with no cash out-of-pocket. It is also great program for FHA borrowers who have their own down payment or who can get a gift from relatives.

Families which need assistance with the down-payment are also eligible for this program, but the interest rate goes up to 5.125%. This is still a below-market rate.

If you have any questions about this new El Paso County Bond Program, or about the Federal Tax Credit for Homebuyers, please give me a call.

Who says there is no Santa Claus?

A TEN YEAR OVERVIEW OF YOUR INVESTMENTS ...WHAT'S THE BOTTOM LINE ??

Everyone has an investment strategy. Some people play the stock market, some people play the ponies, some keep their money in a shoe box under the bed. Over the past ten years, however, the best investment by far has turned out to be Residential Real Estate.

During the last ten years, if you kept your money in a shoe box, it would not have grown at all (in fact, with inflation, it would now be worth much less than it was when you put it under the bed). If you played the ponies, we'll bet you ten to one that you lost money. But, the really bad news is that, according to the Wall Street Journal (Jan. 4, 2010), if you played the stock market, you also lost money. In fact, according to their summary of the last ten years of stock market changes, the shoe-box strategy might even look good.

WSJ reports that, over the past ten years, the Dow Jones Industrial Average has gone down 9.3%. The Standard and Poor 500 has gone down 24.1% and the Nasdaq Composite has gone down 44.2%. What an unpleasant surprise !!! Just think about the hours you spent studying the market and talking to your Broker, the charts you have pored over and the sleep you have lost trying to increase the value of your investments. And it turns out you would have been money ahead if you had just bought a house in Colorado Springs.

During the past ten years, while their owners were knocking themselves out, trying to make a profit, their houses just sat there, increasing in value. In fact, during the past ten years, the average price of a house in the Pikes Peak area has increased $32,976 (18.21%) and the median price has increased $49,960 (35.69%). Whoda thunk it?

Don't let the next ten years pass you by. Buy your first Colorado Springs home now, or, trade up to your dream home today. It's your best investment !!!

NOW HERE'S THE WAY STIMULUS MONEY IS SUPPOSED TO WORK

Connecticut Governor M. Jodi Reil gets our award for putting Stimulus money to productive use. The Governor persuaded Starwood Hotels & Resorts Worldwide to relocate their corporate headquarters from New York to Connecticut. Starwood owns several hotel brands, including the Sheraton, the Westin and W hotels. Their headquarters employs 800 largely executive-level jobs.

Governor Reil used $35 million of federal stimulus money to pay for infrastructure improvements at the selected site and Starwood agreed to lease 250,000 square feet of office space. As part of the incentive package, Starwood was offered a $89.5 million package, which included a $9.5 million low-interest loan, $5 million in sales tax relief and as much as $75 million in tax credits. As a result of this forward-thinking proposal, the Governor has succeeded in creating hundreds of new businesses and new jobs. The 80 acre Starwood site will include a city park, the headquarters of Pitney-Bowes, a boardwalk and a marina, two hotels, three new office buildings and 400,000 square feet of retail space and is scheduled to open in 2012.

Despite a weak economy, Governor Reid has demonstrated that cities and states can attract good primary jobs by wisely investing stimulus money, incentives and tax credits.

Way to go, Governor Reil !! Bill, please take note !!

Enewsletter - Dec. 28, 2009

Mon, 28 Dec 2009 01:00:00 GMT

HARRY’S COLUMN

HAPPY NEW YEAR !!!!!

COLORADO NOW OFFERS INNOVATION INVESTMENT TAX CREDIT

The Colorado Innovation Investment Tax Credit provides a state income tax credit for qualified investors who make investments during calendar year 2010 in small, qualified Colorado businesses involved in research and development or manufacturing of new technologies, products or processes. This program is administered by the Colorado Office of Economic Development and International Trade (OEDIT). The program is aimed at stimulating investment in innovative small businesses. For more information, contact OEDIT in Denver.

COLORADO SPRINGS IS RECOVERING FROM THE RECESSION

The December 19 issue of The Gazette reports that “the unemployment rate in Colorado Springs fell to 7.4%, the lowest level of the year”. Compared to the national unemployment rate of 10.4%, this would indicate that our local economy is 30% better off than the rest of the country.

The Gazette article goes on to point out that “most of the indicators, unemployment, sales tax collections, housing construction and sales show that the steep decline the local economy has experienced since 2007 is over”.

Although the article goes on to caution us that it will be a couple of years before we see a complete recovery, this is great news for all of us.

NAR PREDICTS A RISE IN HOME PRICES

The National Association of Realtors is predicting that 2010 will see an increase in the average price of homes. In 2008, the average home price was $198,100, which represented a decline of 9.5% from the previous year. In 2009, the average price went down again, to $172,600, a decline of 12.9%. However, for 2010, NAR is predicting an average home price of $178,800, which will be an increase of 3.6% over 2009. As the economy continues to improve, this increase in home prices is inevitable. Combine this increase in home value with the inflation that all of the experts are predicting, and your Real Estate investment is obviously your best vehicle for preserving and growing the value of your estate. And don’t forget that the recently extended and expanded federal tax credit for home buyers represents another incentive for buying a home now. Call me !!!

FIRST ANNUAL SALZMAN OPINION SURVEY

We read a lot about the various national polls that are supposed to tell us what people are thinking. Many times, it seems that these polls don’t reflect what our friends and business associates are saying. So….we are starting an annual poll of what the readers of this enewsletter are thinking. Please reply to the following question and we will publish the results in our next enewsletter.

1. What do you expect the economy to look like in 2010 ?

a. A lot better than 2009

b. A little better than 2009

c. About the same as 2009

d. A little worse than 2009

e. A lot worse than 2009

JOKE OF THE WEEK

A New Year Prayer for the Elderly

God, grant me the senility to forget the people I never liked anyway,
The good fortune to run into the ones that I do, … And the eyesight to tell the difference

Dieting - New Resolutions

2006: I will get my weight down below 180 pounds.
2007: I will follow my new diet religiously until I get below 200 pounds.
2008: I will develop a realistic attitude about my weight.
2009: I will work out 3 days a week.
2010: I will try to drive past a gym at least once a week.

New Year's Day Prayer for One and All

Dear Lord

So far this year I've done well.

I haven't gossiped, I haven't lost my temper. I haven't been greedy, grumpy, nasty, selfish, or overindulgent. I'm very proud of that. But in a few minutes, Lord, I'm going to get out of bed for the first time in 2010, and from then on I'm probably going to need a lot more help.

Amen

ENewsletter - Dec. 18, 2009

Fri, 18 Dec 2009 13:23:00 GMT

HARRY’S COLUMN

WANT A HOT STOCK TIP?

If a friend recommends a stock to you, before you add it to your portfolio, the first thing you should do is to look at how the stock compares with other comparable stocks. What’s its history? What factors will affect its future performance? Does it represent a good value today and does it have a good potential for growth tomorrow?

O.K. Let’s pretend that your friend has recommended that you buy “stock” in Colorado Springs and let’s pretend that you are evaluating Colorado Springs as you would examine a publically-owned company as a potential investment. How does this community compare to the other cities that you might want to invest in? Here are some of the areas in which Colorado Springs stands out:

1. Our local unemployment rate is 7.2%, as opposed to the national rate of 10% …That’s 28% better than the rest of the country.

2. We are listed in all national surveys, such as Forbes and Money Magazine, as one of the top ten cities for quickest recovery from the recession.

3. According to the Consumer Price Index, we have a cost of living that is 5-8% lower than the national average.

4. The strong, military presence in our local economy provides a stable, reliable source of income and tax revenues. Furthermore, the scheduled addition of thousands of new troops into Fort Carson during the coming years will be a tremendous boost to our economy in the form of increased home sales, retail sales and tax revenues.

5. Our local workforce is skilled and well-educated (Our SAT and ACT scores are outstanding)

So, you would have to conclude that buying stock in Colorado Springs represents a great investment opportunity, right now and for the long haul.

And, to take this process one step further, if you are a potential Homeowner or a potential Investor, consider that home prices are now very attractive, interest rates are at an all-time low and the Federal Tax Credit which is now available to both First-Time and Repeat Home Buyers is just icing on the cake.

To sum it all up, considering all of the above, if this were a stock tip, you would be rushing to add it to your portfolio.

The moral of the story is: BETTER BUY NOW !!!

BROOKINGS SURVEY SHOWS COLORADO SPRINGS LOOKS GOOD

The non-profit Brookings Institution, in partnership with the University of Nevada, has issued the Mountain Monitor, the first in a series of quarterly reports on the economic recovery in Colorado, Arizona, Idaho, Nevada, New Mexico and Utah. According to the report, “Colorado Springs weathered the downturn better than the average U.S metro”.

Some of the highlights of the report are:

Between Sept. 2008 and Sept. 2009, Colorado Springs jobless rate rose only 1.6%, the fifth-best nationally.

Among the 10 largest metro areas, only Colorado Springs and Denver registered year-over-year increases in home prices by the end of the third quarter, primarily because they were not heavily involved in the excessive real estate speculation that caused the bursting of the housing bubble in some other cities.

The report goes on to state, “…Colorado Springs has weathered the recession significantly better than other Mountain metros on almost every measure” and our city “seems poised to renew its upward trajectory as the pace of recovery quickens”.

NEW MORTGAGE SECURITY GUIDELINES PROPOSED

The Federal Housing Administration is reportedly about to announce that the minimum down payment requirement for FHA loans will be raised from 3.5% to 5%. In addition, the monthly FHA mortgage insurance premium is scheduled to increase and the “FICO” score required for Borrowers’ credit worthiness will also increase. We will keep you advised about this issue, as more is announced.

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 37 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.

JOKE OF THE WEEK

The Devil appears to a Congressman and says, “Look, I can make you rich and famous, guarantee your re-election and make you the darling of the media.”

“Well,” says the Congressman, “what do I have to do in return?”

The Devil smiles, “Well, of course you have to give me your soul,” he says, “but you also have to give me the souls of your children, the souls of your children’s children and, as a matter of fact, you have to give me the souls of all your constituents throughout eternity.”

“OK” the Congressman says cautiously, “What’s the catch?”

Enewsletter - Dec. 14, 2009

Mon, 14 Dec 2009 01:00:00 GMT

HARRY'S COLUMN

WE COULDN'T HAVE SAID IT ANY BETTER - BUSINESS WEEK SAYS, "BUY NOW" !!!

In a Business Week article of Dec. 8, 2009, Marc Roth, the founder and president of Home Warranty of America, dramatically made the following point. "If you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates."

As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That is the lowest the rate has been in nearly 40 years and should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.

A BRIEF OVERVIEW OF INTEREST RATE HISTORY

In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers. But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward. For more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home. Typically, for a $200,000 mortgage, if the homeowner were to keep the home for 30 years, each quarter-point move up in interest rates would cost that buyer $12,000.

Loan Costs

Stay with me now. We are at 5%. As the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.

Let's put that into perspective. You have a good stable job (yes, unemployment is at 10% nationally, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,000 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is "more stable" and it's safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes over the course of the loan, between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$600,000 home price range, and many people out there are, then you're borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

THE WALL STREET JOURNAL DEFINES THE AMERICAN DREAM 2:

DEFAULT ON MORTGAGE, THEN RENT

In the Dec. 10 issue of the Wall Street Journal, Mark Whitehouse describes the trend that is now becoming common throughout the country. Homeowners who face large mortgage payments for homes which are no longer worth what they paid for them, and whose income has been curtailed or eliminated by the recession, are walking away from their homes and are becoming renters. This creates a wonderful opportunity for prospective investors.

The article cites one homeowner whose monthly payments on his mortgage were $4,800. He short-sold his home and is now renting in the same neighborhood, for $2,200 a month. "I don't know if I'll buy another house again, because it's such a huge headache", he says.

Although this trend represents a very difficult adjustment for the homeowners and the lenders involved, it represents a wonderful opportunity for investors. These former home-owners are accustomed to living in good homes in good neighborhoods and have good renter profiles. Every one of them who walks away from their home puts another, well-maintained property on the market at a selling price that is very attractive to investors. Furthermore, these former-homeowners become the investor's next renters.

As a result of this trend, the pool of prospective renters has grown, thus creating an opportunity for smart investors to profit. Please call us, if you would like to discuss how investment property might help you attain your financial goals. We know the local market and are experts in investment property. We would be pleased to discuss this with you.

LATEST STATISTICS

Each week, we publish a link to our latest local Sales and Listing statistics. We should probably take a few minutes to discuss the relative strength of our local Real Estate market, based upon these statistics. The highlights of the latest statistics are:

Nov. 2008 Nov.2009

Total Number of MLS Sales 499 794

Average Sales Price $213,466 $214,062

Median Sales Price $187,000 $187,950

Note that the increase of 295 home sales from November of 2008 vs. November of 2009 represents an increase of +59.1% in MLS Sales. Also note that both the median price and the average price for homes in our area have stabilized; indicating that we have started to recover from the recession and Real Estate prices are on their way back up.

The statistics also list 28 statistical areas within the Pikes Peak area, plus Fremont, Lincoln, Park, Pueblo and Teller Counties.

Perhaps the most important numbers in the report are "SP/LP" (The relationship between the Selling Price and the Listing Price). This report shows that, as of November, 2009, the overall average of total sales prices were 97.4% of the list prices. This is a very strong relationship and a good indication that our local market is not as soft as the national market.

If you would like to discuss the local statistics in more detail, please give me a call.

POTPOURRI

COLORADO SPRINGS COST OF LIVING LOOKS GOOD

The latest statistics released by the Arlington-based Council for Community and Economic Research shows Colorado Springs's cost of living at 7.6% below the national average at the end of the third quarter of 2009. This is near the lowest level of the past 20 years. The index compares prices for 57 goods and services bought by households headed by middle managers.

According to Fred Crowley, senior economist for the Southern Colorado Economic Council, the latest figures indicate that the local economy has bottomed out and has begun to recover from the Recession.

Among other cities in the state, living costs in Boulder were 26.4% above the national average and Denver was 4.3% above the national average.

QUARTERLY UCCS STATISTICS ON LOCAL ECONOMY NOW AVAILABLE

The Quarterly Update on the El Paso County Economy as of September, 2009, issued by the College of Business and Administration at the University of Colorado at Colorado Springs has just been issued. Please give us a call and we will be happy to send a copy to you.

PAUL SAMUELSON DIES

Paul Samuelson, whose analytical work laid the foundation for modern economics, died Sunday in Belmont MA, after a brief illness. He was 94. His textbook, "Economics" which was published in 1948 and which was the most widely used college textbook on any topic, is still in use. Anyone, like me, who has suffered through Economics 101 has been influenced by that text. Mr. Samuelson's nephew, Lawrence Summers, currently runs President Obama's National Economic Council.

Enewsletter - December 7, 2009

Mon, 07 Dec 2009 01:00:00 GMT

HARRY’S COLUMN

HARRY’S PREDICTION FOR 2010 – (NOSTRADAMUS, LOOK OUT !!)

Like politics, all Real Estate is local. That’s why our annual prediction emphasizes the Colorado Springs economy, not the national picture. With that in mind, let’s review some of the factors that will affect our local Real Estate during the coming year:

1. According to the Southern Colorado Economic Forum, the Colorado Springs unemployment rate is now 7.2%, as opposed to the national unemployment rate of 10%. Those figures demonstrate that the Colorado Springs area is now 28% better off than the rest of the country.

2. Our local Real Estate Market is outperforming the national market. Just last week, the Pikes Peak Association of Realtors (PPAR) announced that single-family home sales in November, 2009 totaled 794 (compared to 497 in November, 2008). It was the biggest percentage gain in monthly home sales in the 15 years since PPAR began to keep records.

3. Another, very significant NAR statistic from November of 2009 is that the median price for sold- homes in Colorado Springs was $187,950. The comparable number from 2008 was $187,000.This is a very persuasive indication that our local market has ‘bottomed-out’ and we are looking at a growing market in 2010.

4. With the extension and expansion of the First-Time-Home-Buyers’ tax credit, the government gives up to $8000 to first-time Buyers and up to $6500 to repeat Buyers, if they go under contract by April 30, 2010 and close by June 30, 2010. This is one of the reasons our local housing industry is poised to show growth in 2010. Call us to discuss the details of how the Home Buyers’ tax credit might help you.

5. We are communicating with several hundred prospective buyers who are waiting for “Something to happen” to give them a more secure feeling about buying a home. In addition, Gen Y families (born 1977-94) are now at their peak time for buying their first home. This huge group of young adults is marrying and having children. In fact, many of these prospective home buyers are just waiting for the ‘trigger’ that will nudge them buy (e.g. finding a new job, having a ‘trailing spouse’ find a job, waiting for their present house to sell or close, choosing the best school for their children, etc.) As these prospective homeowners begin to make their move, our local market is poised to really prosper.

6. The present low interest rates for 30 year fixed-rate mortgages can’t stay low too much longer. When the looming inflation begins to raise these very favorable rates, the mortgage you get today will look like gold. An interest rate increase of even 1% takes many prospective Buyers out of the market.

7. Building permits are up. Elected officials who are worried about declining revenues should keep in mind that every new home built generates between $6000 and $10,000 of sales tax revenue.

8. Our inventory of homes for sale is declining. In November of 2008, there were 5547 homes for sale. In November of 2009, there 4301 homes for sale, a decline of 22.5%.

Add all of these factors together and it leads me to my prediction for 2010. !!

NOW IS THE TIME TO BUY !!

FHA CONSIDERING TIGHTER REGULATIONS

If you needed another reason to buy now, consider that the Federal Housing Authority is about to make buying a home more difficult. Because FHA reserves are dwindling, that agency is considering implementing the following ‘improvements’ to the present regulations:

1. Increasing the annual mortgage insurance premium that borrowers have

to pay.

2. Increasing minimum down payment for FHA loans.

3. Setting a minimum credit score for all borrowers

4. Reducing amount that sellers can provide towards buyers’ closing costs from

6% to 3%

For prospective homebuyers, the two rays of hope relating to these proposed changes are that they haven’t been approved yet and, if approved, it will take some time to implement them.

KEEP TRACK OF YOUR MILEAGE – THE RULES HAVE CHANGED

The IRS has announced new standard mileage rates for use of an automobile in business or moving beginning January 1, 2010. According to the IRS, these new, reduced rates are based upon the fact that the costs for operating a vehicle have gone down since last year. The new rates are 50. per mile (down from .55 per mile) for business and 16.5 per mile for relocation (down from 24 per mile ..This is the lowest rate since 2005).

JOKE OF THE MONTH

As he’s driving through the woods, a guy has a flat tire. He stops, jacks up the car, takes off the wheel lug nuts, puts them in the hubcap and is getting the spare out of the trunk, when another car speeds by, hits the hubcap and scatters the lug nuts into the woods.

After an hour of unsuccessful searching, the guy decides he might as well start walking the ten miles to town to buy some new lug nuts. As he starts walking, he hears a voice say, “Hey, why don’t you just take one nut from each of the other three wheels, attach the spare tire with them and then drive to town?”

The guy looks around to see who is talking and sees a man looking at him through a chain link fence. A sign on the fence reads,” State Institution for the Insane”.

The guy says, “Hey, that’s a great idea. How did a smart man like you end up in there?”

The man behind the fence says, “Hey, I’m crazy, but I’m not stupid”.

And the moral for our times is ???????

Enewsletter - November 23, 2009

Mon, 23 Nov 2009 15:31:00 GMT

HARRY'S COLUMN

10 QUESTIONS ON THE VOLATILE HOUSING MARKET

Between January 2000 and April 2006, the national average home price nearly doubled. Since then, the average has fallen about 30%. (In Las Vegas, the average has fallen 53% and in Miami, about 39%, where almost ¼ of mortgage holders are delinquent in their payments or are in foreclosure). As the Wall Street Journal points out (Nov. 17, 2009), the value of your home might be determined more by whether your neighbors keep their jobs than by whether your house has ample closet space. The Journal goes on to list ten points you should consider if you are thinking of selling your home:

1. Is the housing market getting better?

High-end houses are a glut on the market. Fewer jobs and more foreclosures could keep all home prices low for a while.

2. When will housing bottom out?

It depends upon where you live. In the Virginia suburbs near Washington D.C., prices are already going up. In Florida, unsold condos will probably take years to sell.

3. What signals should I look for to determine whether my local market is improving?

One way is to measure the inventory of homes for sale. Over six months of inventory usually means prices are still going down. Give us a call and we will be happy to discuss inventories, prices in various neighborhoods and what your best course of action might be.

4. How can I figure out the value of my home?

Call us.

5. Does it matter whether I am "under water"?

About 20% of owners of single-family homes with mortgages owe more than their homes will sell for on today's market. Your options: Stay put until the market comes back (You won't be able to get refinancing).Sell at a loss ..Walk away and take the consequences. Again, call us.

6. If I lose my home to foreclosure, how long will it take to repair my credit record?

It will be on your record for seven years, but you might be able to get another mortgage in three to five years.

7. If I'm renting, is now a good time to buy a house?

Rents are low now and should stay that way for a while, however, this is a great time to buy your home. Low mortgage-interest rates, low house prices and government tax credits are all good arguments to make your move. Give us a call and we can review your options.

8. Can I get a tax credit if I buy now?

You can, if you sign a contract by April 30, 2010 and close by June 30 and meet the requirements of the new tax credit. Give us a call and we can verify if you are eligible and we will walk you through the process.

9. Can I get a mortgage on attractive terms?

Maybe. Give us a call, answer a few questions and we will be able to give you a good idea of what you qualify for.

10. Should I invest in foreclosed homes?

Probably not. To quote the Journal, "This is a pursuit best left to people with a lot of time, nerve, cash and knowledge of the local market."

We are fortunate to live in the Pikes Peak area, where our unemployment rate is around 2% better then the national average. As a result, our housing market is much better than it is in most other areas of the country.

HOW ARE WE DOING? LOOK AT SALES TAX REVENUES

According to the Gazette, Colorado Springs sales-tax collections in October were the highest since January and saw the smallest year-to-year percentage decline since May of 2008. It's encouraging that September sales tax revenue was down only 0.82% from 2008. To give some examples of how consumer spending is going, here are some significant sales tax figures from October, 2009:

Some increases:

Clothing +30.5%

Groceries +13.0%

Department stores + 8.0%

Some decreases

Furniture, appliances -27.8%

Building materials -15.4%

Fred Crowley, Chief Economist for the Southern Colorado Economic Forum, said the numbers are exactly what would be expected as the region begins to emerge from the recession and consumers stop postponing purchases and start breaking out their wallets. "These are the things that come out of it first - the essentials. At some point, everything wears out. All of the economic indicators say that we're at the bottom and we're on the slow path toward recovery"

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, or, about our CyberHomes Complete Market Analysis of a property, please contact us.

Live in High Forest on 2.6 acres

Thu, 19 Nov 2009 12:00:14 GMT

THIS IS A TRUE 'DIAMOND IN THE ROUGH' FOR IMMEDIATE PURCHASE. CUSTOM WORK THROUGHOUT.PURE COLORADO SETTING W/WALK OUT.CAN BE A GOURMET'S DELIGHT KITCHEN.THE LEAST EXPENSIVE HOME IN HIGH FOREST RANCH-GREAT INVESTMENT SOME TLC WILL THOUSAND'S IN INSTANT BASEMENT HAS ROOM FOR SAUNA. PLAYHOUSE ON PROPERTY.

Enewsletter - November 16, 2009

Mon, 16 Nov 2009 01:00:00 GMT

HARRY’S COLUMN

THE COMING YEAR LOOKS GOOD FOR COLORADO SPRINGS REAL ESTATE

As we have mentioned in previous issues, the August issue of Forbes Magazine named Colorado Springs as one of the top three cities in the nation for housing recovery. As evidence that Forbes’ prediction is accurate, at the recent Southern Colorado Economic Forum, the University of Colorado in Colorado Springs School of Business analyzed 58 distinct local economic indicators, all of which pointed to the fact that our local economy is well on the road to recovery from the recession.

At the national level, Lawrence Yun, Chief Economist for NAR, speaking at the recent NAR Convention, indicated that home prices should show modest growth in 2010, after the worst downturn since the Great Depression. Prices should climb about 4% in 2010, compared to a projected decline of 13% during 2009.

Mr. Yun also predicted a 38% increase in new home sales in 2010. This should be very encouraging news to city planners, since every new home sold generates a significant amount of sales tax revenue. In Colorado Springs, for example, every new home sold contributes approximately $8000 in sales tax revenue. The recent Southern Colorado Economic Forum predicts an increase of 250 single-family home permits in Colorado Springs in 2010. This translates into additional sales tax revenues of $2 million and doesn’t even include the additional revenues from commercial and multi-family permits.

During the coming year, NAR also predicted that mortgage interest rates in 2010 will rise by .75% - 1% (Today, we can still obtain 30 year fixed rates of 5%) and that foreclosures should peak in the first half of 2010. To put all this into perspective, it means that the $250,000 home you are considering buying today will probably cost you $260,000 next year. And, considering the predicted .75% rise in interest rates, the monthly payment on that home will be approximately $165 more per month next year than it would be today.

And finally, to add just one more incentive to buy now, remember that, if you delay signing a contract on that new home beyond May 1, 2010, you will lose out on the tax credit that Congress has just extended and expanded (See the article on the Homebuyers Tax Credit, below).

Bottom line ……Call me !!!

By the way, if you are located out of this area and are considering moving into the Pikes Peak region, but are in need of some assistance in selling your present home, please remember that we specialize in relocation assistance, including the marketing of your present home. We would be happy to assist you with all of the various tasks involved in relocating.

HOME BUYERS’ TAX CREDIT EXTENDED AND EXPANDED

The big news this week is that Congress has extended the First-time Home Buyers tax credit and has also expanded the program to include repeat buyers. Click here to see the details of this very significant government program. It might be just the ticket to get you into that new home.

THIRD QUARTER STATISTICS ON HOME PRICES NOW AVAILABLE

The National Association of Realtors has just released the sales price statistics for the third quarter of 2009. The report shows that the median sales price of existing single-family homes in the 153 metropolitan areas represented in the survey declined 11.2%, compared to the third quarter of 2008. The good news is that, in Colorado Springs, the decline was only 6.2% over the same period. This is another indication that our local economy has turned the corner and we are well on our way back to recovery. If you would like to discuss the specific numbers for your city, please give us a call.

GET MAXIMUM EXPOSURE FOR YOUR LISTING ON LISTHUB

We are pleased with the response from our Sellers to our recent affiliation with ListHub. This new relationship enables us to promote our listings on a wide variety of Real Estate websites and give maximum internet exposure to our clients’ listings. To see the various sites on which our listings will now appear, click here.

Finally, if you would like any of your business associates to receive these newsletters, please send us their email addresses and we will add them to our subscriber list. Thank you.

JOKE OF THE WEEK

The Three Sons and the Parrot

Three sons left home, went out on their own and prospered. Getting back together, they discussed the gifts they were able to give their elderly Mother.

The first said, "I built a big house for our Mother."

The second said, "I sent her a Mercedes with a driver."

The third smiled and said, "I've got you both beat. You remember how Mom enjoyed reading the Bible? And you know she can't see very well any more. I sent her a remarkable parrot that recites the entire Bible. It took Elders in the church 12 years to teach him. He's one of a kind. Mama just has to name the chapter and verse, and the parrot recites it."

Soon thereafter, Mom sent out her letters of thanks:

"Milton," she wrote one son, "the house you built is so huge. I live in only one room, but I have to clean the whole house."

"Gerald," she wrote to another, "I am too old to travel any more. My eyesight isn't what it used to be. I stay most of the time at home, so I rarely use the Mercedes. And the driver is so rude!"

"Dearest Donald," she wrote to her third son, "you have the good sense to know what your Mother likes. The chicken was delicious!"

The third son replied. “Mama, how could you have eaten that valuable parrot? He knew how to recite the entire bible.”

His mother replied, “Well, if he was that smart, he should have said something”

Enewsletter - November 9, 2009

Mon, 09 Nov 2009 15:42:00 GMT

HARRY'S COLUMN

THIS IS THE FIRST ANNUAL "GOOD NEWS - BAD NEWS" ISSUE

FIRST, THE GOOD NEWS -

HOME SALES RISE

The National Association of Realtors has announced that pending home sales rose again in September, marking eight consecutive monthly gains - the longest streak since measurement began in 2001.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in September 2009, rose 6.1% to 110.1 from a reading of 103.8 in August, and is 21.2% higher than September 2008 when it stood at 90.9%. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.

Lawrence Yun, NAR chief economist, said the momentum us understandable. "What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax-credit at the end of the month", he said. "Home values will stabilize sooner rather then over-correcting. That, in turn will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery".

Yun added that strong near-term reports should not be overstated. "We're clearly not out of the woods because an excess of homes remains on the market despite recent improvements", he said. "Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this incoming inventory".

NO SOONER SAID THAN DONE - HOMEBUYER TAX CREDIT EXTENSION AND EXPANSION IS ENACTED

Congress has just extended the tax credit for first-time homebuyers into 2010. In order for the first-time homebuyer to obtain the $8000 tax credit, the property must be under contract by April 30, 2010 and must close by June 30, 2010.

In addition, Move-up buyers can now receive an income tax credit of $6500. This should stimulate home sales and motivate Buyers to "buy-now" and protect themselves against the inevitable inflation that looms ahead.

There is a maximum qualifying price of $800,000. Single individual purchasers can earn up to $125,000 and couples can earn up to $225,000, to qualify for the tax credit.

Robert E. Story Jr., chairman of the Mortgage Bankers Association said in a statement about the extension, "At a time when we are finally starting to see some signs of life in the housing and mortgage markets, extending and expanding the homebuyer tax credit is a critical step to keeping the momentum".

SPRINGS UTILITY BILLS LOWEST IN THE STATE

Colorado Springs homeowners have the lowest utility bills in the state.

The third quarter 2009 ACCRA Cost of Living Index shows that typical combined electric and natural gas bills in Colorado Springs average $125.20 a month compared to $155.84 for all other Colorado cities. (Denver is highest, with $200.52). Energy bills nationwide average $179.38.

Bill amounts are determined by typical energy consumption in each city and rates in effect in the third quarter of 2009.

The ACCRA Cost of Living Index is produced by the Council for Community and Economic Research, a nonprofit research group.

ARE YOU READY FOR THE COMING INFLATION ?

How can you protect yourself from the inflation that will result from the excessive spending that is occurring at the state and national level? Your best bet is to invest in real estate. The value of your investment will rise right along with inflation, and, considering the low-interest rate mortgage money currently available, buying a home right now is the best way to protect yourself from the inevitable falling value of the dollar. Give me a call and we can discuss our current market.

NOW FOR THE BAD NEWS !!!

If you own a home, you should be aware of the proposed Bill, H.R. 2454: American Clean Energy and Security Act of 2009 This Act, sometimes referred to as "Cap and Trade", has already been passed by the House of Representatives and will soon be considered by the Senate.

Beginning 1 year after enactment of the Act, you won't be able to sell your home unless you retrofit it to comply with the energy and water efficiency standards of this Act. The CBO estimates that, in just a few years, the average cost to every family of four will be $6,800 per year.

To get permission to sell your home, you will have to have your home inspected by the EPA Administrator (estimated cost for the annual inspection - $200) and retrofit your home to meet whichever standards are not met. (This requirement will apply to mobile homes, as well). There are automatic standards upgrades written into the bill, and, in addition, the Administrator is authorized to upgrade standards as he/she sees fit.

Within five years, 90% of all homes must be measured and "labeled" Unless a current label is affixed to your home in a conspicuous location, you will not be able to sell it.

True, the Act allows the government to give grants to comply with the retrofit program requirements, but the state can set standards on who qualifies for such grants. Thus, the price of your home and/or your income will probably determine whether you are eligible for such grants. As always, middle class homeowners will have to pay for the retrofits out of their own pockets, as well as subsidizing all those who are exempted from paying.

Regardless of which state you live in, this bill will affect you. We urge you to contact your congressman and senator and urge them to vote "NO" on this proposed bill.

(It would seem that this bill should more appropriately be titled American Clean Energy and Security Act of 1984 !!)

JOKE OF THE WEEK

Doctor: Well, I have good news and bad news.

Patient: Go with the good news first.

Doctor: You have 24 hours to live.

Patient: What?! How about the bad news?

Doctor: I forgot to call you yesterday.

Condo in Cottonwood Creek

Wed, 28 Oct 2009 11:00:28 GMT

PRICE REDUCTION** CUSTOM FINISHES IN THE INTERIOR. IT FEELS BETTER THAN A MODEL. YES, THIS CONDO IS RIGHT NEXT TO COTTONWOOD CREEK. VERY OPEN AND ALL ROOMS ON BOTH LEVELS HAVE HIGH CEILINGS. ALL KITCHEN APPLIANCES ARE STAINLESS STEEL. KITCHEN AND DINING ROOM HAVE 4' STAINED OAK FLOORS. EVERYTHING HERE IS AN UPGRADE WITH A PROFESSIONAL INTERIOR DESIGNER QUALITY. IT IS JUST TOTALLY SPECTACULAR! JOB LOSS PROTECTION FOR 2 YEARS - DETAILS