Real Estate Information Archive

February 21, 2011

HARRY’S WEEKLY UPDATE

 A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

  

NAR CHIEF ECONOMIST IS BULLISH ON COLORADO SPRINGS

  

Harry Salzman and Lawrence Yun at the PPAR meeting

On Wednesday, Feb.16, 2011, Lawrence Yun, chief economist of the National Association of Realtors, spoke to a PPAR meeting of about 325 local real estate agents and business leaders at the Crowne Plaza Hotel. His main message was that businesses that are now sitting on loads of cash need to start spending money and creating jobs to help the now-stabilized housing market continue to improve.

In a wide-ranging overview of the nation’s economic problems, the state of the economy and his outlook for 2011 and beyond, Yun said:

• For now, the housing market is “bouncing along the bottom,” a term economists use to describe market conditions that have reached their low point and are poised for a rebound.

• National prices have stabilized and there should be no “meaningful change” in home values in 2011 or the next few years.

• Long-term mortgage rates will rise to 5.5 percent this year and tick upward to 6 percent in 2012.

• Some homebuilders have had difficulty obtaining financing, and a lack of new construction could actually lead to a housing shortage in the next few years.

• Rising apartment rents will prompt many renters to consider, considering the tax deductions available to property owners, whether they might be better off purchasing a home, rather than renting.

• Some 2 million jobs will be created in the next few years, yet unemployment will remain at 9 percent this year and won’t decline to 6 percent until 2015.

• Doing away with the homeowner mortgage tax deduction would deal a major blow to the housing industry — slowing sales and reducing values. The Obama administration again proposed this week to curtail the deduction; Yun expects Congress to reject the proposal.

• Loose lending standards and exotic loans were the primary cause of the national housing downturn. Traditionally, homebuyers moved into so-called starter homes and established equity before moving up. But before the recession, underwriters only wanted to know if a buyer “had a heartbeat” before approving half-million-dollar home purchases. Now, however, the pendulum has swung too far the other way, Yun said, and homeowners are having difficulty obtaining loans.

Dr. Yun stated that there are several basic reasons why Colorado Springs has shown so much strength in the recovery from the recession:

1. The housing bubble that burst in Colorado Springs was much more moderate than other cities.  
2. A large percentage of our local economy is strengthened by salaried military and governmental workers.
3. We have a large available pool of high-tech workers
4. Local businesses are empowered to make their own business decisions
5. The economic recovery of the entire state has helped our local recovery
6. Compared with other regions, the educational level of our entire local population is way-above average.

CLICK HERE If you would like to view a short slide presentation of Mr Yun’s comments about Colorado Springs. If you would like to see a video of Mr. Yun’s entire presentation, or view a PowerPoint presentation of his entire talk, simply click here 

 

EL PASO COUNTY PROPERTY TAXES WILL BE LOWER IN 2011, CAUSING A DECLINE IN TAX REVENUES (From the Gazette)

Declines in real estate values mean tax relief is on the way for El Paso County property owners. But so are financial headaches for the various government entities — cities, school districts, the county and others — that rely on revenues generated by property taxes.

For the first time in 20 years, property values in El Paso County have fallen in all categories, said County Assessor Mark Lowderman. By the end of this month, his office will finish conducting property reappraisals of 260,000 parcels, including homes, apartment buildings, vacant land, office space, industrial buildings and retail sites.

2011 property taxes aren’t due until next year, but around May 1, property owners will receive notices of valuation from this reassessment cycle. The assessed value of residential property is based on home sales in the county from July 1, 2008 to June 30, 2010, a period of turmoil for the real estate industry. 

“We’re finally starting to address the declining market, and in May, people will get notices to that effect,” Lowderman said.

Overall, he predicts an average 15 percent reduction in value among all categories of properties.

The fact that property values have fallen isn’t news — it’s been known for years that, because property taxes lag current market conditions, reduced values, and thus revenue losses, were coming.

“These are things that were projected,” said Fred Crowley, a researcher and professor at the University of Colorado at Colorado Springs and director of the Southern Colorado Economic Forum. 

“It’s unfortunate that everyone is losing economic value as a consequence to bad loans that originated on Wall Street. This is not a people problem; it’s something the financial markets caused,” he said.

But preliminary findings indicate the next several years could be even more difficult for public entities than imagined. 

The assessor’s office reappraises property every other year. Since the early 1990s, local residential property values have experienced double-digit increases, Lowderman said, with an average increase of 10 percent to 12 percent over each two-year assessment cycle.

This year is what Lowderman describes as “attention getting.” Early results for the 2011 reassessment show that residential property has dropped in value 5 percent to 25 percent since the last reappraisal in 2009.

Some pockets, primarily areas on the eastern plains with manufactured and mobile homes, are experiencing dramatic decreases of 40 percent or more, Lowderman said.

Crowley calls that number “startling,” and said school districts on the eastern plains could face serious financial issues in the coming years.

School districts rely heavily on property tax revenue, Crowley said; for some it constitutes up to 65 percent of their revenue. Of the $461 million being collected this year for 2010 property taxes, local school districts will collectively receive $318 million, or 69 percent of the total revenue.

The highest property value declines are in neighborhoods with the largest amounts of foreclosures and short sales, which discount property prices at sale time. But Lowderman said his office takes into account conditions of properties, so as to not unfairly skew a neighborhood assessment.

The southeast portion of Colorado Springs is one of the hardest hit, Lowderman said, in neighborhoods such as Stratton Meadows, Park Hill and Deer Field Hills, along with starter-home neighborhoods, such as Stetson Hills, in the northeast. But high-end developments aren’t immune. For example, Cedar Heights, to the west, is showing sizable declines in home values, he said.

Property owners will benefit with lower tax bills in 2011, and likely through 2015 because reappraisals done in 2013 will reflect the market conditions of the latter half of 2010 and 2011. Crowley said he doesn’t expect much commercial or industrial construction for the next several years, and Lowderman predicts a wave of commercial foreclosures, both of which will lower property values.

“So many people are out of work or underemployed, so some relief on their property taxes is going to be very welcome,” Lowderman said.

If a property owner has a 25 percent reduction in property value, and the mill levy assessed remains constant, that will equate to a 25 percent reduction in property taxes due next year.

Property owners can appeal their valuations May 2 through June 1, by phone, fax, e-mail or in person at the assessor’s office. The assessor’s office typically receives 5,000 to 6,000 appeals, Lowderman said, and adjusts about half of them. But in 2009, his office fielded 10,000 appeals, primarily because property values were not reflecting current market conditions.

“We had to explain that we weren’t nuts and that there’s a two-year time lag,” he said. “I don’t know what to expect this year — we haven’t been down this road in so long.”

Using actual data from our MLS, Salzman real estate Services, Ltd. has established that the local, average home sales price dropped from $256,829 in 2008 to $237,318 in 2010. (-7.6%) The median home sales price dropped from $223,000 in 2008 to $205,000 in 2010. (-8%). Keep in mind, however, that different neighborhoods and areas within the county can vary much more than 7-8%.

When you receive your new assessment from the county (around May 1), please give us a call to discuss it. We may be able to assist you in filing for a lower assessment, based upon MLS records for your neighborhood. In past years, we have assisted many of our clients and friends by providing documentation which resulted in lowering their assessments. We would be pleased to help you with this process. Call us.

 

WHY YOU SHOULD BUY THAT HOME NOW

• The Colorado Springs real estate market is already starting to appreciate. (+5.2% last year, as compared to the national average of .02%).
• Mortgage interest rates are starting to go up
• In October, the maximum size of mortgages backed by Fannie Mae and Freddie Mac will shrink
• Mortgages backed by Freddie and Fannie will get more expensiveby 0.25% to 0.50%
• Later this summmer,The Consumer Financial Protection Bureau could make the process of originating mortgages more expensive for the lender by requiring, for example, more personnel to check documentation. These costs will be passed along to borrowers.
• Premiums for FHA-insured loans will be going up by 25 basis points in April. The hike comes out to an extra $250 per $100,000 of mortgage per year. Additional increases have been proposed.
• Down payment requirements for Fannie and Freddie could rise from 5% to 10% if current proposals from the government are approved. Some officials are even calling for 20% down payments.
• Credit scores required for mortgages are getting tougher

As Barry Zigas, director of housing policy at the Consumer Federation of America points out, "In most markets, there's no reason to delay waiting for something better to coma along - It probably won't".

Call us !!!

 

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak Region.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 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. 

 

JOKE OF THE WEEK

Hello?"   "Hi honey. This is Daddy. Is Mommy near the phone?

"No Daddy. She's upstairs in the bedroom with Uncle Paul."

After a brief pause, Daddy says, "But honey, you haven't got an Uncle Paul."

 "Oh yes I do, and he's upstairs in the bedroom with Mommy, right now."

Brief Pause. "Uh, okay then, this is what I want you to do. Put the phone down on the table, run upstairs and knock on the bedroom door and shout to Mommy that Daddy's car just pulled into the driveway."

"Okay Daddy, just a minute."

A few minutes later the little girl comes back to the phone. "I did it Daddy."

"And what happened honey?" he asked.

"Well, Mommy got all scared, jumped out of bed and ran around screaming. Then she tripped over the rug, hit her head on the dresser and now she isn't moving at all!"

"Oh my God!!! What about your Uncle Paul?"

"He jumped out of the bed , too. He was all scared and he jumped out of the back window and into the swimming pool. But I guess he didn't know that you took out the water last week to clean it. So he hit the bottom of the pool and I think he's dead."

***Long Pause*** ***Longer Pause*** ***Even Longer Pause***

Then Daddy says, "Swimming pool? ............Is this 486-5731?"

 

Feb.14, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET 

 

HOUSING AFFORDABILITY IN COLORADO SPRINGS IS GREAT !!!!

In 2010, home prices for lower-priced homes in Colorado Springs appreciated, but the prices for higher-priced homes remained fairly steady. The good news is that, according to the recently-released NAR report on nationwide residential sales for 2010, Colorado Springs real estate is appreciating faster than the national average.

In the fourth quarter of 2010, the median existing single-family home price rose in 78 out of 152 metropolitan statistical areas. Lawrence Yun, NAR Chief Economist, is encouraged by the trend. “Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to enter the inventory pipeline, they’ve been selling well and housing supplies have trended down”, he said. “A recovery to normalcy requires steady trimming of the inventories”. Yun also noted that housing growth and jobs growth feed on each other. When one goes up, so does the other.

To be specific, the report shows that, out of the 152 major metropolitan areas included in the survey, our city showed a significant increase in median home prices. …better than almost any other city in the U.S.

Here are some impressive figures:

             Colorado Springs median home price in 2009 was $189,800

            Colorado Springs median home price in 2010 was $199,600

            The national  median home price in 2010 was $170,600

Translation: Our home prices appreciated more than the national average and, in 2010, they went up 5.2%. That’s outstanding. If you would like to see the complete report, CLICK HERE.

To bring these numbers down to our local market, if you’re a Buyer or a Seller, you should be aware that, in 2010, 82% of Colorado Springs home sales involved homes priced under $299,000. That’s a significant figure.

For Sellers, it means that, if your home is priced over $299,000, you are facing a slow market. There are few Buyers out there, but there are thousands of Sellers in your price range and they are all trying to attract the attention of those few Buyers. Concentrate on making your home outshine your competition and be ready to aggressively negotiate your price.

If your home is priced under $299,000, be aware that there are lots of Buyers out there, but you have lots of competition for their attention. Today’s “savvy” Buyers are looking for “deals”. Again, make your home as attractive as possible and be ready to negotiate your price.

For Buyers, the bottom line is – It’s your market. Even with the recent rise in interest rates, you can make some great deals, regardless of the price range.

Even with the recent rise in interest rates to over 5%, there are wonderful deals still available out there. You should think about buying an investment property.

Call us.

 

SPEAKING OF OUR LOCAL real estate MARKET, LAWRENCE YUN, CHIEF ECONOMIST OF THE NATIONAL ASSOCIATION OF REALTORS WILL DO JUST THAT

On Wednesday, Feb. 16, 2011, the Chief Economist of the National Association of Realtors will speak at the Crowne Plaza Hotel in Colorado Springs, from 9am to 11am and we will be there. Mr. Yun appears frequently on financial news shows and at real estate conferences. USA Today recently listed him among the top 10 economic forecasters.

Mr. Yun will undoubtedly address the outstanding performance of our local real estate market over the past year. We will give you a report on his presentation in next week’s enewsletter.

 

AS RATES RISE, SHOULD THE GOVERNMENT GET OUT OF THE MORTGAGE-BACKING BUSINESS ?

WSJ Fri. Feb 11, 2011 – Rates rise above 5% for the first time since last spring. The latest rate for 30-year, fixed-rate mortgages is 5.05%.

This rate increase reflects positive news: Rates are rising because there are signs that the recovery is strengthening. As the economy gains steam, investors demand higher rates to compensate for an expected uptick in inflation. And, if the economy can generate stronger job and wage growth, higher rates may not be a problem for housing. By at least one measure, housing affordability has returned to its levels before the housing boom collapsed. The run-up has been unusually swift. The national average mortgage rate has jumped to more than 5% from a record low of 4.17% in just three months, according to Freddie Mac data. The rise should kick people who have been sitting on the fence into some immediate action.

In response to these developments, on Feb. 11, 2011, the administration unveiled a plan to wind down mortgage giants Fannie Mae and Freddie Mac. This would result in higher borrowing costs and more limited access to home loans for consumers.

Treasury Secretary Timothy Geitner stated that establishing a new system could take five to seven years. “This is a plan for fundamental reform of the housing market”, Geitner said.

The government took over Fannie Mae and Freddie Mac 2 ½ years ago. So far taxpayers are on the hook for $134 billion, and the bailout is likely to be the most expensive legacy from the 2008 financial crisis. Last year, the two agencies accounted for nine in ten new loans.

The political debate regarding the phase-out of Fannie Mae and Freddie Mac has generated three main options for what would replace the two programs: 

1. The first option would place the vast majority of the mortgage market in the hands of the private sector, with no government backing.
2. The second option would also place the mortgage market in the hands of the private sector, but with limited government backstop.
3. The third option would be to create new, privately-owned companies to buy mortgages from banks and sell them as securities.

The discussions that these options will generate will help the administration build consensus around one option and may help build the case for some kind of continued government backstop for mortgages.

The proposed administration plan also calls for:

• Gradual increases in minimum down payments to 10%
• Mortgage-guarantee maximums would reduce to $625,500 from $729,750
• Banks would be required to hold more capital and establish more conservative underwriting standards that require homeowners to hold more equity in their homes
• Reduce the role of FHA and increase fees.

The bottom line for the public is that Washington seems to agree the present system doesn’t work very well and it is willing to discuss establishing a new system that would protect the homebuyer, the taxpayers and the economy from another mortgage crisis.

 

HOLD ON, PARDNER ! MAYBE THE GOVERNMENT SHOULDN’T GET OUT OF THE MORTGAGE-BACKING BUSINESS. …AN OPPOSING VIEW

On Feb. 9, 2011, in the NAR blog, “Voices of real estate”, Ron Phipps, 2011 NAR President, posted the following comments:

“Later this week, the Treasury Department will issue a report recommending changes to the structure of Fannie Mae and Freddie Mac.  This is the latest development in a years-long debate over what the government’s role in housing should be.

As REALTORS®, we know better than anyone else just how vital housing is to families and to our nation.

Fact:  For every additional 1,000 home sales, about 500 jobs are added to the economy.  Those are real jobs that give our families, friends and neighbors a chance to work.

Fact:  Every home purchase pumps $60,000 into the economy.

Fact:  Housing accounts for more than 15 percent of the national gross domestic product.

Fact:  Home owners pay 80 to 90 percent of ALL federal income taxes.

We need to change the dialog.   Critics say housing is a drain on federal resources.  We know better.  Housing is the engine that drives our national economy. Eight of the last ten recessions have ended as a result of robust housing markets.  The other two ended as a result of war spending.  The choice is easy.  America needs a healthy housing market to thrive. 

In the days ahead, NAR will be reaching out to Congress and the White House to emphasize the clear connection between housing, jobs and the economy.  Rather than limit support for housing, and the availability of credit, NAR is calling on Congress and the White House to advance policies that will move the housing market back to a healthy 5.5 million sales, where it SHOULD be. 

We will be asking lawmakers to:

• Preserve the mortgage interest deduction at current levels.
• Move the credit pendulum to equilibrium, defined by a median credit score of 720.
• Maintain government backing in the mortgage market as part of GSE Reform.

These three steps would help bring the housing market back to a normal level, possibly generating an additional 1 million home sales and 500,000 jobs.   

As the voice for real estate, we hope that Congress and White House gets the message:  Real Estate is all about jobs.”

Signed,

Ron Phillips, NAR 2011 President

 

O.K., readers. What do you think??

 

MORTGAGE –SHMORTGAGE ….SOME PEOPLE ARE PAYING CASH !!

The Wall Street Journal (Tues. Feb. 8, 2011) reports on an interesting phenomenon that is occurring in real estate markets around the country ….the rise of all-cash deals. In some of the country’s most troubled housing markets, cash-buyers are accounting for more than half of the transactions. (In 2006, all-cash deals represented only 13% of sales).

Obviously, Investors with cash are seeing great opportunities to acquire income properties at low prices. They are figuring that they can refinance later, when the market improves.

For some time now, this “Buy low and Rent” opportunity is something we have been urging our clients to consider. With the rise in foreclosures, the pool of new renters has expanded and occupancy rates have risen.

Call us.

 

GOOD NEWS – LOCAL SALES TAX COLLECTIONS ARE UP AGAIN !!!

The Gazette reports (Friday, Feb. 11, 2011) that Colorado Springs sales tax collections in January rose 2.77%. It was the 15^th consecutive month of year-over-year gains. Sales tax collections ended 2010 up 6.07 percent over the year before.

According to Fred Crowley, Chief Economist for the Southern Colorado Economic Forum, this rise in collections is one sign that people are feeling more comfortable with their job status. He also stated, ““Since use tax collections and sales of business equipment are strong, it is clear that businesses are investing in equipment, rather than people”.

The bottom line is that our local economy is recovering from the recession, but slowly.

As we have said so often in previous eNewsletters, our full recovery will depend upon jobs, jobs, jobs, so be sure to vote in the upcoming city elections. Jobs depend upon leadership and leadership starts at the top.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 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. 

LATEST STATISTICS

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

 

JOKE OF THE WEEK

For those of you who remember Henny Youngman, here’s a few of his one-liners that still ring true:

• real estate people always try to put the best light on everything. One of them tried to sell me a “Robin Hood” house. I asked him what that was and he said, ”It has a Little John”.
• But, I do have to admit my house is in a very lovely area. It’s two feet from the water ….in any direction.
• I’ll say one thing for the recession. It’s bringing the generations together. Junior still won’t get a haircut,  …and now I can’t afford one.
• And a recession brings out the compassion and the deep human feelings within us all. For instance, I now do something with my old clothes that I never did before …I wear them.
• But, my brother says there’s no recession, if you have the right business in the right place. He owns a carwash in Capistrano.
• Trying to make a profit today is like being a pickpocket in a nudist colony.
• I’ll tell you how bad things are getting. Bankruptcy court just applied for an unlisted number.

 And of course, we couldn’t leave out Henny’s classic line

•  Now, take my wife ….Please   (Just kidding, Dear.)

 

February 7, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

 

SELLERS – TAKE A LOOK AT YOUR COMPETITION

The Pikes Peak Association of Realtors just released a new monthly report which shows the “Active Listings for Single Family/Patio Homes”, as well as the “Sold Listings” for the previous month and the “Sold Listings” for the same month last year. The data should interest anyone who is trying to sell their home. Using the data reported, if you are currently listing your home for $299,000, let’s see what the numbers tell us: 

• There are currently 2,537 homes listed at, or below your listed price.
• Last month, there were 340 sales of homes listed at, or below your listed price. This means that only 13.4% of the homes listed in this price range sold in January.
• The good news is that, in January, sales of homes in your price range, or below, accounted for 83% of all sales, so the Buyers who are interested in your price range are out there. The trick is to get them to look at and buy your home, rather than the other 2,536 comparable homes which are competing for their attention.

If you are a Seller, these numbers tell us that you should not expect a quick, easy sale of your home. Rather, be prepared to negotiate, plan on an aggressive, competitive marketing campaign and don’t expect overnight results. Furthermore, if your home is listed for $300,000 or higher, keep in mind that only 17% of the potential Buyers out there might be interested in your home. Last month, for example, there were only 72 sales of homes over $300,000.

To see the complete report on Active and Sold listings, CLICK HERE.

As always, many of the determining factors that influence prospective Buyers are location, location, location, as well as the condition of the home, neighborhood, proximity to schools, etc., and we would have to visit with you to give you more specific recommendations about your listing, so, call us. We will be happy to help you design and implement an effective campaign to sell your home in this competitive market.

 

BUYERS – TAKE A LOOK AT THE POSSIBILITIES

The PPAR report listed above will also help Buyers make better purchasing decisions. It’s obvious that our current inventory of available homes is so large and our current sales are so slow that there is a large window for negotiation that is now open for Buyers. Let us help you make the best decision possible about your next home, or investment property. The opportunity to acquire investment real estate has never been better. Low prices, low interest rates, high occupancy rates, rising rents and a large pool of eager sellers all add up to the opportunity of a lifetime for smart Buyers.

One fact that prospective Buyers should keep in mind is that closing costs are negotiable. In an interview, Barry Zigas, director of housing policy at the Consumer Federation of America points out:

“There’s a lot of room for negotiating in the costs of closing and consumers should examine every charge and not hesitate to challenge them and try to bring them down. Closing costs can run anywhere from 3-6% of the price of the property. For example, in 2010, for a $200,000 home, the average closing costs were $3,741, an increase of nearly 37%, according to Bankrate.com.

Simply ask the lender which fees are negotiable and which fees are fixed. Ask, “Who is getting this fee and why am I being asked to pay it?”

As a matter of fact, this is an area where a good Realtor can save you a lot of money. As we cited in one of our previous enewsletters, we recently saved a Buyer approximately $2,500 in closing fees by simply switching to a more “customer-friendly” lender.

Call us and let’s discuss your ideas.   

 

A NEW MAYOR, A NEW COUNCIL, A NEW BEGINNING

For the first time in history, the citizens of Colorado Springs will have the opportunity to elect a city mayor. Until now, the mayor has been appointed by the City Council.

So that voters might get better acquainted with the candidates for the mayoral position, a moderated forum has been scheduled on March 1, 2011, 5:15pm at the Fine Arts Center. The forum will feature six mayoral candidates and will be moderated by Pam Shockley-Zalabak, Chancellor, UCCS. We urge all interested parties to attend this forum, to insure that we end up with the candidate who is most qualified to lead our city into the future.

To register for this event and to learn more about it, CLICK HERE.

See you there.

 

20^TH ANNUAL ECONOMIC FORECAST BREAKFAST

On Feb. 3, we attended the annual Economic Forecast Breakfast, sponsored by the Institute of real estate Management. The 5 presentations covered all aspects of our local real estate market and were very informative, but we thought the presentation on residential real estate might be the one that would be of specific interest to our readers.

Basically, residential sales in 2010 were down from 2009. Sales in the first half of 2010 looked fairly good, as a result of the federal tax credit for first-time Buyers. Sales in the second half of 2010 were slightly down, but selling prices were up.

The average number of “days on the market” for a $250,000 home went from 88 days during the first half of the year to 104 days in the second half.

New Listings in 2010 went from 18,561 in 2009 to 19,203.

Using historical demand as the measure, the inventory of homes under $250,000 would supply the market for 6 months (compared with 4 months one year ago). $350,000-$400,000 inventory is 8.5 months. $600,000-$700,000 inventory is 23.3 months. Homes over $1,000,000 had only 25 sales in the last half of 2010.

Comparing 2010 to 2006, we see sales down 32%. but rents were up 55%. Investors, take note.!!!

The brightest stars in the numbers were rentals. Average monthly rental went from $989 a month in 2006, to $1109 in 2010. That’s one part of the economy that has shown a profit in recent years.

We’re recovering, but slowly.

Jobs are still the key to recovery !! Let’s hope our new Mayor and City Council have that at the top of their priority list.

 

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak Region.

 

DAMN THE TORPEDOES, BUT DON’T DAM THE ICE

On Feb. 3, 2011, the Wall StreetJournal featured an article about the potential damage to local homes as a result of “ice dams”. Our recent cold snaps have aggravated the problem and we thought our readers might want to be aware of this problem.

Ice dams form when an under-insulated home’s heat escapes through the attic, warms the roof and melts snow. As water runs down the roof, it can refreeze into an icy dam along the overhang, which is cooler. If the dam gets big enough, it can then block water from running off the roof and force it back up under the shingles, triggering leaks and other damage. Icicles are one symptom of dams forming.

If you have ever had your roof replaced as a result of hail damage, you probably know that the insurance inspector who comes to inspect the roofer’s work will check to see that the roofer has installed an extra layer of protection under the bottom three or four feet of shingles, to prevent water from coming back up under the shingles. If you don’t know whether your home has this protective layer under the shingles, you might want to check it out yourself, or have someone check it out for you.

 

COMING SOON ……..

On Feb. 10, 2011, the National Association of Realtors will be releasing their report of home sales in all of the top 153 U.S. markets. We look forward to including that report in the next issue of our newsletter and we think you will be surprised and gratified to see how well Colorado Springs is doing, compared with the rest of the country.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 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. 

 

JOKE OF THE WEEK

TOP TEN ECONOMIST VALENTINES

10. YOU RAISE MY INTEREST RATE THIRTY BASIS POINTS WITHOUT A CORRESPONDING DROP OFF IN CONSUMER ENTHUSIASM
9. DESPITE A DECADE OF INFLATION, I STILL DIG YOUR SUPPLY CURVE
8. WHAT DO YOU SAY WE RE-MEASURE OUR CROSS-ELASTICITY
7. YOU BRING THE BUTTER, I'LL BRING THE GUN
6. LET'S RAISE HOUSING STARTS TOGETHER
5. FURTHER STIMULUS COULD RESULT IN UNCONTROLLED EXPANSION
4. TELL ME WHETHER MY EXPECTATIONS ARE RATIONAL
3. LET'S ASSUME A RITZY HOTEL ROOM AND A BOTTLE OF DOM
2. YOU STOKE THE ANIMAL SPIRITS OF MY MARKET
1. A LOAF OF BREAD, A JUG OF WINE, AND THOU BESIDE ME WATCHING RUKEYSER