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December 17, 2012

HARRY'S WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

HI THERE, EVERYONE.

Mid-December to January, every year, seems to produce fewer articles of interest in the real estate industry.  Most people are holiday gift shopping for their families and friends.  Buying a home in the next couple of weeks isn't at the top of the list.  HINT...HINT.  We are available to show homes and provide you and your family a huge GIFT -- like Buying or Listing a home before the end of this calendar year.

OH WELL...ANOTHER REGULAR WEEK, BUT IT'S GREAT FOR real estate ACROSS THE USA

The information in this section justifies why we continue to be very positive.  As always, our thoughts come from multiple sources within National real estate publications:

• Freddie: Great Expectation For Housing In 2013
• More Americans Say Now Is A Good Time to Sell
• Americans More Bullish on Buying Homes - housing market Looking Up Heading Into 2013
• Investors To Boost housing market Again In 2013

FREDDIE: GREAT EXPECTATIONS FOR HOUSING IN 2013

    Daily real estate News | Tuesday, December 11, 2012

"The housing market is expected to continue its rise in the New Year, according to Freddie Mac's U.S. Economic and Housing Market Outlook for December.

Some other forecasts for the housing market in 2013..

• Home values are expected to increase 2 to 3 percent next year.
• Household formation is expected to increase to a net 1.20 million to 1.25 million household in 2013.  Housing starts are expected to reach near the 1 million annualized pace by the fourth quarter.
• Vacancy rates are expected to drop to 2002 and 2003 levels for apartments and single-family homes for-sale  'as household formation outpaces new construction.'

'The last few months have brought a spate of favorable news on the U.S housing market with construction up, more home sales, and home-value growth turning positive,' says Frank Nothaft, Freddie Mac's chief economist.'"

MORE AMERICANS SAY NOW IS A GOOD TIME TO SELL

    Daily real estate News | Tuesday, December 11, 2012

"More Americans are growing confident about selling with the share of those who say now is a good time to sell..

The rise in those who say it's a good time to sell has helped narrow the gap with those who say now is a good time to buy, according to Fannie Mae's November 2012 National Housing Survey, released Monday.  Americans are also getting more confident about the direction of the overall housing market and the economy according to the report.

'Consumer attitudes toward both the economy and the housing market continue to gather momentum, with many of our 11 key National Housing Survey indicators at or near their two-and-a-half-year heights,' says Doug Duncan, senior vice president and chief economist of Fannie Mae.

'This growing confidence in a housing recovery, in addition to other factors may reinforce growing consumer optimism regarding the improving direction of the general economy,' Duncan says."

Americans More Bullish on Buying Homes - housing market Looking Up Heading Into 2013

    HousingWire | Wednesday, December 12, 1012 - Trulia's 2012 American Dream Survey

INVESTORS TO BOOST housing market AGAIN IN 2013

    Daily real estate News | Thursday, December 13, 2012

"Investors have had a big appetite for real estate lately, and they are expected to continue to snatch up homes in 2013 and help push home prices higher."

This past week, the National Association of Realtors Research Department published some interesting data.  The title is "How Well Do You Know The Home Buyer and Seller Trends of 2012."  The chart below makes the data easy to understand.  The highlights are: 

• Who is buying and selling of married couples?
• How many buyers and sellers are first timers?
• How much do buyers and seller earn a year?
• How do buyers and sellers find an agent and what kind of help do they want?

WHO'S CALLING THE SHOTS: BUYERS OR SELLERS?

    Daily real estate News | Wednesday, December 12, 2012

"The housing market is changing, creating a 'new playing field for home owners, who are finally able to sell, as well as would-be buyers who've been delaying a purchase in anticipation that prices would keep falling,' Money Magazine reports.

Still, home sellers should keep their expectation in line: Price increases are to be modest and gradual.

As for buyers, they may need to have a better understanding of the increased competition they may face."

Of course, this data is a bit different per location together with the professionalism of their individual Realtor.

If you have any questions about this data (or any real estate questions), please give us a call at 598.3200 or 800.677.6683 (MOVE).

MORTGAGE RATES CONTINUE TO BE RIDICULOUSLY LOW

Fixed-rate mortgages sank down near their record lows last week, according to Freddie Mac's weekly mortgage market survey.  The low mortgage rates are helping to keep homebuyer affordability high and unlock savings for home owners.

• 30-year fixed-rate mortgages are around 3.32%
• 15-year fixed rate mortgages are around 3.0%

And here's a different type of mortgage that we introduced to recent clients - YES, CLOSINGS HAPPENED.

  ****10-year fixed-rate mortgage at 2.75%

• With only a 10-year length of time of a mortgage, the monthly payments will be higher
• Wouldn't it be nice to have your home paid off around the time that you retire?
• This is not a dream.  This is reality.  AND I CAN HELP YOU MAKE THIS ALL COME TRUE.  Contact me at 719.598.3200 or 800.677.6683 (MOVE).  Email: Harry@HarrySalzman.com

Let's consider two issues:  house values are going up again, and inflation will be back next year.  Both are major parts of our cost of living which is estimated to increase about 3.0% or more.

Here is a WILD thought -  If you might be comfortable with a 10-year mortgage at 2.75%, your net expense of a house to be purchased might be offset by appreciation and inflation.  Homeowners have experienced that increase in their home's value in recent years.  This would make your cost of housing next to zero, and you would have a free & clear mortgage upon retirement.

Another thought - even if your personal budget would be more comfortable with a mortgage of a 15 or 30-year term, mortgage rates are cheap today!  Take personal advantage of the current market. BUY.

This past August, I celebrated my 40-year Anniversary in our Colorado Springs real estate business.  Over all those years, our local housing appreciation has averaged 5.7% annually, covering every economic cycle over the long haul.

Give us a call to discuss our local market and let us help you find the best deals available.  Call at 598.3200 or 800.677.6683 (MOVE).

If you are wanting to buy, sell, trade up, or simply looking for investment property in the Pikes Peak region, Remember—I’ve got more than 40 years of experience in providing relocation and real estate services to clients throughout the world.  I am uniquely qualified to assist you in making the best decision for your individual wants and needs and always take that into consideration when negotiating on your behalf.  You can also contact me at Harry@HarrySalzman.com,

Whether a first time Buyer, a trade up, or looking for a investment, treat yourself and BUY A HOME NOW.  Give yourself a Christmas present.  You deserve it. 

To all of our Readers, our next issue will be in January 2013.  Happy New Year.

Thanks for being part of my eNewsletter family and for sharing it with your family, friends and clients.  It is a source of pride that this publication is written each week in the same locale where "America The Beautiful" was written.

Harry

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs 

Visit Website

December 10, 2012

HARRY'S WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

HOLIDAY GIFTS TO COLORADO SPRINGS HOMEOWNERS

The increase in Residential real estate closings in November 2012 have provided Christmas gifts to Homeowners.

Our local housing market has demonstrated that "Owner Occupied" and "Investors" are receiving an increase in the value of their homes.

The highlights are:

• Average Sales Price is $218,230

                        up 6.3% since Nov 2011

• Median Sales Price is $185,000

                        up 9.7% since Nov 2011

• Active Listings for Single Family / Patio Homes

                        are down 9.4%  since Nov 2011

• Total Sales in Nov were

                        up 14.9% since Nov 2011

We have been suggesting that the people who have been waiting to buy, should look out for themselves and take advantage of today's market.  We feel that two costs will be higher next year: the prices of Listed Houses will be higher and Mortgage rates should be more expensive than today.

The statistics trend of last month and all of 2012 show the basics.  Every figure concerning Colorado  Springs housing has increased since one year ago and inventory of listings are down.  Therefore, as we experience an upturn in housing demand while the listing supply is down, the housing prices will climb. (Sure, anything can change via government)

Currently, the USA Economy is expected to see 4 to 6% of inflation in 2013.  Our personal cost of living should rise next year.  As we understand it, housing is a large function of an industry within cost of living.

Here are the titles of local reports for Colorado Springs ending November 2012.

• Listing and Sales Summary
• Monthly Listing Activity / per area
• Monthly Sales Activity /  per area
• Active & Sold Listings / per price range
• Monthly Sales Analysis / per area

Click here for the 12 pages of the data

LOCAL HOMEBUILDERS ARE THE HAPPIEST THAT THEY HAVE BEEN IN 5 YEARS!

November was the best month of new construction since 2007.  Pikes Peak Regional Building is reporting that there were 182 Single Family permits, which is up almost 50% since Nov 2011. 

In an article in The Gazette | Tuesday, December 4, 2012, Homebuilding in Pikes Peak Region Hits Five-Year High - Permits for single-family homes total 182 in November, a nearly 50 percent jump over last year, Rich Laden states, "The pace of homebuilding in the Pikes Peak region reached a five-year high last month, as the housing market continued to rebound from years of recession-induced struggles. 

"Building permits for single-family homes -- which are issued to local builders when they're ready to construct homes and serve as a key measure of building activity -- totaled 182 in November, a nearly 50 percent jump over the same month last year, according to a Pikes Peak Regional Building Department report released Monday. 

"For the first 11 months of the year, building permits totaled 2,065 -- surpassing the 2,000-mark for the first time since 2,135 permits were issued in 2007.

John Bissett, board president of the Housing and Building Association of Colorado Springs, said  "Not only are buying conditions favorable, but many of today's buyers are existing homeowners who had sought to move up, but couldn't get a fair price for their homes the past few years...Now, many of those move-up buyers are seeing homes in the re-sale market selling relatively quickly, and prices are on the way up."

Rich Laden also reports, "In addition to the positive report on housing, the area's foreclosure picture brightened in November.  Foreclosure filings totaled 212 last month, the fewest in any month since 180 in December 2006, an El Paso County Pubic Trustee report showed Monday."

We would like to point out that another economic value to our city is that with this high number of housing construction, there are millions of dollar income from sales tax of construction materials to our city and county.

If you have any questions about this data (or any real estate questions), please give us a call at 598.3200 or 800.677.6683 (MOVE).

AFFORDABILITY - A FORECAST

Many nationwide publications are now addressing what we have been perusing this past year.  Your mortgage interest rate will more significantly impact return on investment.  It is anticipated that long term rates are scheduled to begin moving up in 2013. 

It is important to consider the long term benefits of today's rates and the likelihood that we will not see the same opportunity again in our generation.  When interest rates mirror this chart, once again we should see appreciation in market values of houses.  Those considering a purchase should act.  Now is the time to buy a home.

Whether upgrading or downsizing, sellers certainly enjoy a more favorable market position today when compared to that of only a year ago.  Inventory has decreased while Buyer side confidence has essentially been restored.  With equity restoration as a result of increasing values, many Sellers once again control their own destiny.  They can Sell, Buy, or rent.  There are finally choices.  But if the property no longer fulfills their lifestyle, we encourage them to acquire a property better suited to their needs.  NOW.

If you are considering a real estate transaction, thorough analysis and competent representation are essential (such as Salzman real estate Services).  We are in a transitioning market.  If you understand the underlying facts, we can continue to make good business decisions logically and without emotion.  I am real estate professional and accept responsibility for keeping my friends, neighbors, and business community informed in all aspects affecting the Real Estate portion of their holdings.

Give us a call to discuss our local market and let us help you find the best deals available.  Call at 598.3200 or 800.677.6683 (MOVE).

If you are looking to Buy, Sell, trade up, or simply looking for investment property in the Pikes Peak region, Remember—I’ve got more than 40 years of experience in providing relocation and real estate services to clients throughout the world.  I am uniquely qualified to assist you in making the best decision for your individual wants and needs and always take that into consideration when negotiating on your behalf.  You can also contact me at Harry@HarrySalzman.com,

WHAT'S REALLY DRIVING THE RISE IN HOME PRICES?

Daily real estate News | Tuesday, November 27, 2012

"The Wall Street Journal recently cited five significant factors behind the rise in home prices, as numerous markets see significant year-over-year gains.  The big price drives are:

1. The rise in housing affordability - which is drawing more buyers out into the market who are looking to cash in on low mortgage rates and fallen home prices compared to a few years ago.
2. The rise in household formation - which is expected to hit 1 million new households this year.  That is up from an average of 570,000 over the last five years, according to data by Bank of America Merrill Lynch.
3. The rise in rents - which has prompted more investors to purchase properties to rent out and more renters to second-guess why they are paying so much in rent when they could buy.
4. The decline in distressed sales and foreclosures - which has fallen significantly this past year.  While distressed sales are still high by historical standards, they have fallen from their peaks in most markets, helping to alleviate the downward pressure on home prices in many area.
5. Inventories of homes for-sale at their lowest levels in nearly 50 years - and builders have cut back on construction and many home owners are waiting to sell until they can recover some equity on their properties."

Source:  "Five Reasons Homes Prices Have Been Rising"  The Wall Street Journal |Tuesday, November 27, 2012

WE'RE HERE TO SERVE ALL YOUR real estate NEEDS

We’ve been keeping you up-to-date on a weekly basis concerning the Colorado Springs market and want to remind you that if you are looking….the time is NOW.  There are going to be fewer choices in the coming months and prices are sure to be higher.  And with mortgage rates at an all time low, you can’t afford to wait.  BUY NOW.

FEATURED LISTING

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs 

Visit Website

December 3, 2012

HARRY'S WEEKLY UPDATE

A Current Look at the Colorado Springs Residential real estate Market

FANTASTIC NEWS -- COLORADO SPRINGS HOME VALUES ARE ON THE RISE

Another "Thank You" to The Gazette for interviewing me in the article "Home Values Are On The Rise In The Springs" published November 29, 2012.  Here are direct parts of the story concerning Colorado Springs.

"A federal agency's report on single-family home prices is the latest sign the Colorado Springs values are on the rise--albeit at a slower rate than what other reports have shown.

Area home prices rose 1 percent in the third quarter when compared with the same period a year ago, according to a report this week by the Federal Housing Finance Agency.

Colorado Springs' third-quarter increase ranked it 87th among roughly 300 metro areas included in the report.

The Federal Housing Finance Agency's report on home prices uses a different measurement than other reports; it tracks prices of homes as they are sold, re-sold or refinanced.  Some economists believe tracking same-home prices over time is a more accurate gauge of the health of a community's housing market.

While the agency's report shows only a 1 percent year-over-year increase in Springs prices, it never-the-less shows values are headed upward--the same direction as shown in other recent reports.

Figures compiled by the research arm of the Pikes Peak Association of Realtors shows Colorado Springs area home prices rose 7.2 percent in the third quarter when compared with the same period last year.  The association's numbers include prices of homes sold in the third quarter by real estate agents, and compares them against a different group of homes sold in the same period the previous year.

Harry Salzman, owner of Salzman real estate Serves Ltd, in Colorado Springs, said he expects area prices to continue to rise.

Unlike other communities--such as Phoenix or Las Vegas--that saw unrealistic price increases several years ago, and then saw steep drops when the real estate market crashed, Springs prices have been consistent over time, Salzman said.  Since local prices never fell too far, they are starting to climb back gradually as the market recovers, he said.

Prices could continue their ascent in 2013 if inflation--practically not existent the past few years--takes hold, Salzman said.  And if mortgage rates also rise next year, homebuyers who are on the fence should consider making purchases now to avoid rising home prices and higher interest payments, he said."

Thank you, Rich Laden at the Gazette.

LIVING COSTS STILL BELOW U.S. AVERAGE, BUT LOCAL NUMBERS ARE CLIMBING

The Gazette | Friday, November 30, 2012

"Although living costs in Colorado Springs remain below the national average, they have continued to climb closer to the average as housing and utility costs have moved higher in the past year.

Living costs in the Springs were 3.3 percent below the national average during the third quarter, the closest they have been in the national average in nearly eight years and up from 6.8 percent below the average a year ago, according to a quarterly survey by the Arlington, Va.-based Council for Community and Economic Research.  The index for the Springs hit a 20-year low in mid-2011 in comparison with the national average and has moved closer to the average every quarter since then; local costs were 3.9 percent below the average in the second quarter."

We at Salzman real estate Services are usually asked about cost of living questions from people who are considering relocating to Colorado Springs.  This information is very positive for people who wish to move here, as we currently have a lower cost of living.  It is expected that in 2013 living costs will rise, due to an increase in inflation, but the market values of a house will also increase.  We have read from various sources that inflation of 2013 is estimated to increase 4-6% at this time.  Now is the time to buy a home.

If you have any questions about this data (or any real estate questions), please give us a call at 598.3200 or 800.677.6683 (MOVE).

Oh, by the way, since today is December 3, 2012, the current local November Sales and Listing Activities are not published yet.  They will be available by next week's eNewsletter.

NATIONWIDE UPTURN IN RESIDENTIAL real estate

Highlights published in the past week.

Now, Homes Drive Economy  Wall Street Journal | Wednesday, November 28, 2012

"The U.S. housing market, which plunged the economy into recession five years ago and was a persistent drag on the recovery is now a key economic driver at a time when other sectors are slowing...But while those economic pillars weaken, an improving housing market is buoying consumers' spirits and give the economy its biggest lift since the real-estate boom...Rising home values make home-owners feel better about their finances--making them more likely to spend and, with interest rates low, more comfortable about taking on debt...'Housing's share belies its important to the economy,' said Joseph LaVorgna, chief U.S. economist at Deutsche Bank.  'The confidence effects are massive.'...Rising rents and a uptick in household formation have ignited demand, which, in turn, has pushed inventories of homes for sale to their lowest level in a least a decade.  The upshot: More buyers are chasing fewer homes, pushing up prices."

2012: The 'Turn-Around Year For Housing'  Daily real estate News | Wednesday, November 28, 2012

"More housing reports released this week show the housing recovery is gaining momentum...The Federal Housing Finance Agency also reported this week that housing prices are continuing to rise, increasing 1.1 percent from August to September and up 4 percent compared to last year.  The FHFA price index only encompasses purchase prices of homes that have mortgages owned or guaranteed by Fannie Mae or Freddie Mac.  Meanwhile, Standard & Poor's/Case-Shiller reported Tuesday that home prices were up 3.6 percent from a year ago."

BBVA: housing market Recovery Expected To Soar Through 2013  HousingWire | November 26, 2012

"A strong housing market gained momentum in November and is expected to continue through 2013, especially with low mortgage rate...Supply of the existing homes on the market is down to 5.4 months in October as a result of constrained supplies, which is limiting immediate sales.  While median sales prices increase, it was not enough to offset the declines from the last three months."

Outlook For Housing Brightens, But Don't Look For A Boom  Daily real estate News | Wednesday, November 21, 2012

"The housing recovery may not be a boom 'but it's recovering,' said Kenneth T. Rosen, chairman of the University of California, Berkeley, Fisher Center for real estate and Urban Economics.  Several challenges face the housing market that will prevent a boom from taking shape, particularly from tight lending conditions that have prompted the recovery to be marked by slow growth rather than rapid growth, Rosen noted at a recent conference.  'The problem is not [that there is not] enough money, because the [Federal Reserve] has poured in a lot of money into the economy, ' Rosen said.  'We have too much money out there not too little money.  The problem is loan availability.'  He says that the strict credit score requirements have led to 40 percent of potential buyers unable to qualify for a loan nowadays.  'We have very strong job creation.  Private sector job creation is very good, [though] a little show in summer,' Rosen said.  'Home sales are coming back.  We have very low interest rates.'"

AND Colorado Springs is having a very good, turned around Residential Market in almost 2 years.

Once again, the most current local data is very positive....Take advantage of our Residential real estate Market to the benefit of you, your family your friends and BUY now.  You can then "pat yourself on your shoulders" shortly after your closing.

Give us a call to  discuss our local market and let up help you find the best deals available.  Call at 598.3200 or 800.677.6683 (MOVE).

AND MORE POSITIVES...LOCAL SALES HAVE INCREASED

We have been mentioning to our Readers that Colorado Springs has been experiencing a lower number of local listings for many months.  Also, local sales have increased in 14 or the past 16 months.  Yes, very positive and better than lots of cities.

This is an industry "big deal" as many on-line real estate sources had stories regarding such a positive October residential market trend nationwide. 

housing market Posts Gains - Sales of Previously Owned Homes Rose in October; Supply of Properties Shrinks  Wall Street Journal | Tuesday, November 20, 2012

"Sales of previously owned homes were stronger than expected in October, putting them on  track to hit their highest annual level since 2007..Prices are rising amid sharp declines in the number of homes listed for sale.  Just 2.14 million homes were for sale at the end of October, down 22% from one year ago to the lowest level in a decade according to NAR estimates...Another Wildcard:  Whether Congress avoids the 'fiscal cliff,' a series of tax increases and spending cuts set to kick in at year-end, which some real estate agents worry could undercut consumer confidence, potentially deferring some sales."

Existing-Home Sales Rise In October With Ongoing Price And Equity Gains  RisMedia | November 19, 2012

"Sales of existing homes increased in October even with some regional impact from Hurricane Sandy, while home prices continued to rise due to lower levels of inventory supply, according to the National Association of REALTORS^®.  'Rising home prices have already resulted in a $760 billion growth in home equity during the past year,' [Lawrence] Yun [NAR chief economist] says.  'Given that each percentage point of price appreciation translates  into an additional $190 billion in home equity, we could see close to a $1 trillion gain next year.'...NAR President Gary Thomas says, 'Inflationary pressures are expected to build during the next two years.  As a result, mortgage interest rates will also rise with inflation.  Buyers who are currently held back by tight mortgage credit standards should work to improve their credit scores so they'll be able to qualify for a mortgage while conditions are still favorable.'"

NAR Existing Home Sales Increase 2.1% In October  HousingWire | Monday, November 19, 2012

"Thanks to hurricane Sandy's impact on the East Coast and the increase in home prices due to a lack of inventory supply October saw an increase in existing-home sales...'Home sales continue to trend up and most October transaction were completed by the time the storm hit, but the growing demand with limited inventory is pressuring homes prices in much of the country,' said Lawrence Yun, chief economist with NAR....Homes continue to spend less time on the market, with the median listing now running 71 days, down from 96 days in October of 2011."

Strong Sales And Tight Inventory Boost Homes Prices  Inman News | Monday, November 19, 2012

"A combination of rising sales and the lowest inventory in six years helped existing-home prices post annual gains for the eight month in a row in October, the National Association of Realtors said today."

WE'RE HERE TO SERVE ALL YOUR real estate NEEDS

We’ve been keeping you up to date on a weekly basis concerning the Colorado Springs market and want to remind you that if you are looking….the time is NOW. There are going to be fewer choices in the coming months and prices are sure to be higher. And with mortgage rates at an all time low, you can’t afford to wait. If you are looking to buy, sell, trade up, or simply looking for investment property, give us at call at 598.3200 or  800.677.6683 (MOVE), and we will get right on it.

And if you know of anyone who wishes to buy or sell local real estate, or who is planning a move to the Pikes Peak region, remember—I’ve got more than 40 years of experience in providing relocation and Real Estate services to clients throughout the world. I am uniquely qualified to assist them in making the best decision for their individual wants and needs and always take that into consideration when negotiating on their behalf.  Have them contact me at Harry@HarrySalzman.com, and I will be happy to add them to our eNewsletter list, or better still, send me a note with their email address, and I will take care of it right away.

FEATURED LISTING

Harry A. Salzman. CRS, CRP, CNE
e-Pro Internet Certified
Broker/Owner

email: Harry@HarrySalzman.com

Serving: Colorado Springs, Monument. Air Force Academy, Fountain,
Security, Woodland Park, Black Forest, Manitou Springs