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August 5, 2013
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
COLORADO SPRINGS—“CITY FOR CHAMPIONS”
As most of you know by now, I never pass up the opportunity to tout my city, Colorado Springs, and love to pass on every accolade or interesting news that appears in both local and national publications. Fortunately, there’s usually a lot of good news to share and today is no exception.
Last week I, along with 700 others, attended the “State of the City” luncheon where Colorado Springs Mayor, Steve Bach, presented proposals that he feels are necessary to the city’s economy and long-term growth, along with his expectations of standards for city employees.
I felt like I was in a meeting of a Fortune 500 Company where the CEO was presenting his goals to the Board of Directors. It was impressive and inspiring at the same time.
The logo above reflects his proposed tourism projects, including a Downtown Stadium and Event Center, a United States Olympic Museum, a UCCS Sports Medicine and Performance Center and a USAFA Gateway at Falcon Stadium Visitors Center.
Job creation has been Mayor Bach’s number one priority. Last year he set an ambitious goal of gaining 6,000 new civilian jobs—and statistics show that the number of residents holding jobs in June was up 5,975 from June 2012. A similar goal has been set for the coming year and job creation will continue to be a prime concern of his.
Bach indicated that he expects city employees at all levels within the organization to perform at the highest standards and also encouraged all attending business leaders to get more involved with various city causes in order to propel the city in a continued positive moving direction.
Below you will see his 2014 Strategic Plan—again impressive and ambitious. All I can add is that “I’m behind you, Steve”, and I look forward to hearing about all the successes of 2014 at the next State of the City meeting. It appears that Colorado Springs’ first “strong” Mayor is working for all of us in The Springs to help continue and improve the standard of living that we have come to consider “normal, normal” for us.
BEST JULY IN LOCAL SALES SINCE 2006
Statistics provided by the Pikes Peak REALTORS Service Corp, or its PPMLS
The Local Residential real estate news just keeps getting better. As of July 31, 2013 the relationship of Selling Price to Listing Price across El Paso County is 98.1%. Sellers are holding on to their equity and getting within 1.9% of their listing price. And, as you keep hearing in the news--multiple offers, even ones over the listing price in some cases, are quickly becoming the norm. This makes for very busy days for me as my clients are finally realizing what I’ve been saying for some time now—“happy days are here again” for Sellers.
Buyers, too, can still benefit from today’s market. Interest rates, while trending upward, are still some of the lowest in history and while you may pay more for “trading up”, you will more than likely get more for your present home, so it all equals out in the long run. And you’re still ahead with the current interest rates.
Some highlights of the latest report, comparing July 2013 to July 2012 in PPAR include:
Single Family/Patio Homes:
- Number of Sales are up 23.5%
- Average Sales Price is $256,940, Up 8.8%
- Median Sales Price is $225,750, Up 6.5%
- Total Active Listings is 4,137, Up 8.0%
Condo/Townhomes:
- Number of Sales are up 41.5
- Average Sales Price is $158,970, Down 5.7%
- Median Sales Price is $142,350, Up 1.8%
- Total Active Listings is 464, up 2.4%
From January to July 2013 Single Family home sales have totaled 6538, up 24.8% since the same time period one year ago. As I mentioned earlier, it’s good news all around. To view the 12 page report in its entirety and to see how your individual area is performing in comparison to the rest of the county, click here.
The time is right for anyone looking to sell and trade up, buy a starter home or to look for investment property. Just don’t expect to take your time in decision making because as statistics reveal…things are moving faster than they have in a number of years.
Be prepared—know what you are looking for and be open-minded when it comes to location. Sometimes an area you might not have considered might turn out to be exactly what you are looking for. You might also be open to looking at new construction as existing homes with your needs and/or wants become more and more scarce.
I am here to assist you in making the right personal decision. Just call me at 598.3200 or email me at Harry@HarrySalzman.com and let me put my 40 plus years of local real estate professionalism to work for you.
HOW TO WIN A BIDDING WAR
Great story in last week’s Wall Street Journal—although I might add that my clients have forever received this same advice from me. It says, “As many housing markets (like Colorado Springs proved in July statistics) heat up to levels not seen since the boom….Buyers need advice on how to get a fair price without being outbid.”
With low inventory of properties for sale and home prices and mortgage rates on the rise, it’s been getting tough on Buyers.
“Houses aren’t likely to get any cheaper during the second half of the year. But there are signs that the frenzied pace of sales that has given Sellers the upper hand during the spring and early summer is settling down, helping Buyers who have done their homework and are ready to pounce.”
Some Things Worth Remembering:
- Buyers in today’s market need to receive the most current information regarding inventory, comparisons and signs that the prices are continuing to increase—in other words—know your area.
- Don’t think housing is going to get any cheaper if you wait.
- Be realistic when it comes to price—lowball offers in today’s market are often taken as an insult by the Seller.
- Sellers have waited a long time, in many cases for years, for today’s appreciation to return.
- Buyers and Sellers who I work with today are educated by me to know that the probable sales price will be about 98% of the listing price.
- Have your “walkaway number” and stick with it—you don’t want to win the battle but lose the proverbial war.
- Be flexible on other offer terms such as closing dates, renting back to Sellers or other issues that might put your offer in the best light. Often the best way to find out what the Seller is looking for, other than price, is to ask. My relationship with many of the local listing agents helps my clients when it comes to these essential details that can “make or break” a deal.
- Once you know what you want—don’t dawdle. As I said earlier, you need to do your homework so you can move quickly once you find what you want.
- Get prequalified. This is very important because the Seller knows you have the ability to close.
- Decide what you will do if the home appraisal is below the asking price. Do you want to put more money down in order to get the deal done?
- Position yourself as a backup in case another buyer pulls out. If you really like a property, you can still get a shot at it if an earlier deal falls through.
- Connect with the Sellers. It never hurts to let the Seller feel like they know the Buyer personally and can work in your favor if there are multiple offers.
FIRST-TIME BUYERS STARTING TO GET LEFT BEHIND
The Wall Street Journal 7.23.13
The first victims of the housing recovery appear to be first-time homebuyers. Typically in their late 20’s or early 30’s, these individuals have accounted for around 30% of home sales over the past year. They are the foundation of the real estate market and major contributors to the local economy due to their help in revitalizing older neighborhoods and spending money on furniture and home improvements. And often, once they build some equity, they move on to more expensive homes and neighborhoods. The typical first-time buyer in Colorado Springs holds on to their “starter” residence for about 3-5 years.
In June, first-time Buyers accounted for 29% of purchases of existing homes, down from 32% in June 2012. Price gains and higher mortgage rates are hitting these individuals at the same time that rents are starting to soar due to low vacancy rates. This is somewhat of a “double edged sword” and we at Salzman real estate Service, LTD are trying our best to help in any way we can to find solutions if they can be found.
If you know anyone looking to purchase a “starter” home, tell them to give us a call at 598.3200 and let us try to work our “magic” if there is any way possible. But don’t wait too long. It’s getting tougher every day to find housing for these folks.
MORTGAGE RATES RISE, BUT DON’T SOAR
Housingwire.com 7.23.13
Yes, they ARE continuing to go up, but not quite as quickly as you might fear. In fact, some industry experts say that mortgage rates will simmer down and increase at a slower rate over the course of the next year.
“I don’t think anyone expected rates to jump by a full percentage point like they did in May,” Polyana de Costa, a mortgage analyst with Bankrate said, “I think we can safely say they will be higher than they are today.”
Bob Walters, chief economist for Quicken Loans, said, “Rates should remain flat or barely higher than where they are today.” He projects they will hover around the 4.5% to 4.75% point by the end of the year.
A year from now, rates are expected to hit 5%, which is not even a full percentage point above current rates, according to Freddie Mac.
Currently, rates are highly dependent on the labor market. “If you were to see jobs rapidly increase, rates would dramatically rise. That is a huge driver of what may happen,” Walters said.
Leonard Kiefer, deputy chief economist with Freddie Mac, suggested that people need to look at the situation of where we are relative to history. “We have low rates and affordability is still near record highs. From a broad historical perspective, we are still pretty low for rates,” he concluded.
PHILOSOPHY OF THE DAY
From “Insights on the Art of Influence”
“On October 29, 1949, Winston Churchill gave one of his most famous speeches at Harrow, the English prep school he attended as a boy. Rumor had it that on that day Churchill stood up, gave a three-word speech—“Never give in!”—and sat down.
While that story is not entirely true—Churchill delivered a longer speech that day—it’s absolutely true that it became one of his most celebrated speeches.
If one quality epitomized Winston Churchill, it was persistence. He never gave up. It was that attitude that inspired England in World War II to continue fighting when others might have surrendered.
Persistence means sticking to your guns. It’s keeping your commitment and making your actions consistent with your word. It’s all about “walking your talk”.”
FEATURED LISTING
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6740 Northrim LN
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Price: $649,000
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Beds: 5
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Baths: 4
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Sq Ft: 6552
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THIS IS IT! AN EXCEPTIONAL HOME NOT TO BE MISSED! A ROCKY MOUNTAIN HIGH WITHIN THE CITY! VIEWS TO DIE FOR! YOU WILL ENJOY THE ACTUAL LOT, THICK OF PINE TREES, HIGH ON A CUL-DE-SAC, PLUS MORE OPEN SPACE TO THE WEST. ONE OF A KIND MOUNTAIN SETTING IN ...
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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
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