September 5, 2018
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.
“AMERICA THE BEAUTIFUL”WAS WRITTEN AFTER A VISIT TO THE PIKES PEAK SUMMIT…AND THOSE OF US WHO RESIDE HERE CAN CERTAINLY UNDERSTAND WHY
When I meet someone new, I oftentimes tell them that while they might know the words to the song “America the Beautiful” ,they might not know that they were written right here—about our very own Pikes Peak and Colorado Springs.
Yes, the lyrics were written by Katharine Lee Bates from Massachusetts who originally wrote the words as a poem, “Pikes Peak”, after traveling by train to Colorado on vacation and visiting the mountain summit.
It was first published in the July 4thedition of the church periodical The Congregationalist in 1895. The poem was subsequently published under the title “America”. Bates received $5 for the initial publication and gave up all royalties to it when it was published.
Around the same time, Samuel Augustus Ward, a church organist and choirmaster at Grace Episcopal Church in Newark, New Jersey had written the music, “Matema”, for the hymn “O Mother dear, Jerusalem”, which was published in 1892.
Ward’s music, combined with Bates’ poem, was first published in 1910 and titled “America the Beautiful”. Although the two never met and Ward died before it was published, the resulting song has become one of the most popular of the many patriotic songs in the U.S.A.
Along with “My Country Tis of Thee” and “The Star Spangled Banner”, the song was a contender for the national anthem. In 1931 President Herbert Hoover signed a law making the national anthem “The Star Spangled Banner”, upsetting many. In the years since, many have lobbied, and continue to lobby, for the anthem to be changed to the more peaceful, easier to sing, “America The Beautiful”.
This is just another way I try to keep you educated about Colorado Springs, and for those of you trivia buffs, it’s an answer you might someday need!
And speaking of educating, I received the following list of “Awards and Rankings” that apply to Colorado Springs from my friends at Empire Title and thought you might be interested to see just how many national and international lists we have appeared on in recent times.
No surprise, but so nice that the rest of the world is aware of just how uniquely special Colorado Springs is.
And that gets me back to real estate! It’s still quite a whirlwind going on here, but sales are slowing down a bit. There are a number of reasons for this, including the escalating median home prices, the slowly rising interest rate, and the continued lack of available homes for sale.
However, the bright side here is that what has continued to be a Seller’s Market is now turning the tide a bit and buyers are getting a little rest from the recent frenzy.
According to David Berson, chief economist at Nationwide Insurance and a former Fannie Mae chief economist, “underlying demand is edging higher, but you can’t sell more homes if they’re not there to be sold.”
What this means is that it is a great time for BOTH Buyers and Sellers.While home prices here are going up considerably faster than the U.S. average, interest rates are holding for now and increased equity is making it possible for more folks to sell and trade up or move to another neighborhood.
Our local economy is doing great—local sales tax collections in July posted their biggest gain in 13 months--and lots of companies and individuals have been moving here. The timing couldn’t be better for those of you who have been waiting to make a move. NOW is the time to put your thoughts into action. There are lots of folks wanting to move and are looking for homes just like yours!
If you’re even considering a move and wondering how to make it happen,simply give me a call today at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how I can put my special brand of customer service to work for you.
And now for August statistics…
Homes are selling at 99.8% of listing price with the average days on the market at a very low 24.
This continues to be great news for both buyers and sellers but with homes selling so quickly, it still necessitates knowing where you plan to move next prior to listing your present home.
The Monthly Summary shows that compared to a year ago, total active listings are up 5.8% for Single Family/Patio Homes and up 32.1% for Condo/Townhomes. New listings are up 4.1% for Single Family/Patio Homes up 6.5% for Condo/Townhomes.
AUGUST 2018 AGAIN BROUGHT SUBSTANTIAL GAINS IN HOME VALUES BUT SLIGHTLY LOWER NUMBER OF SALES
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the August 2018 PPAR report. A look at the Median Sales Prices will show that prices are continuing to rise while sales are continuing to slow down a bit. Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.
In comparing August 2018 to August 2017 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings are 1,786, Up 4.1%
· Number of Sales are 1,529, Down 7.8%
· Average Sales Price is $357,317, Up 13.9%
· Median Sales Price is $315,000 ,Up 11.4%
· Total Active Listings are 2,416, Up 5.8%
· Months Supply is 1.6
Condo/Townhomes:
· New Listings are 262, Up 6.5%
· Number of Sales are 228, Down 5.8%
· Average Sales Price is $229,815, Up 14.9%
· Median Sales Price is $210,000 Up 11.0%
· Total Active Listings are 185, UP 32.1%
· Months Supply is 0.8
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
August 2018 August 2017
Black Forest $503,000 $551,500
Briargate $400,000 $360,000
Central $259,300 $219,250
East $265,500 $240,000
Fountain Valley: $274,750 $249,900
Manitou Springs: $390,000 $346,500
Marksheffel: $342,000 $294,950
Northeast: $300,000 $280,000
Northgate: $460,000 $422,354
Northwest: $392,500 $375,000
Old Colorado City: $324,250 $258,500
Powers: $300,000 $274,450
Southeast: $239,000 $210,000
Southwest: $455,000 $340,000
Tri-Lakes: $502,784 $474,900
West: $279,000 $280,000
*Statistics provided by the Pikes Peak REALTORS Services Corp,or its PPMLS.
HOUSING PREDICTIONS FROM NAR’S CHIEF ECONOMIST
Rismedia.com, 8.28.18
Nearly ten years after the Great Recession, Lawrence Yun, chief economist for the National Association of Realtors (NAR) says concerns that the housing market has peaked and is headed toward another slowdown are purely speculative, regardless of recent sales declines in some regions.
His prediction for the future? Markets should slow down; however, this is due in part to insufficient supply and swiftly rising home prices instead of weak buyer demand. Yun predicts that existing-home sales will drop 1 percent in 2018 but that home price growth should remain strong, increasing an estimated 5 percent nationwide. With an anticipated hike in inventory supply come 2019, home sales should stay afloat—existing home sales are predicted to rise 2 percent with home prices estimated to increase by 3.5 percent, according to Yun.
“Over the past 10 years, prudent policy reforms and consumer protections have strengthened lending standards and eliminated loose credit, as evidenced by the higher than normal credit scores of those who are able to obtain a mortgage and near record-low defaults and foreclosures, which contributed to the last recession. Today, even as mortgage rates begin to increase and home sales decline in some markets, the most significant challenges facing the housing market stem from insufficient inventory and accompanying unsustainable home price increases,” said Yun in a published statement.
Inventory levels, which have fallen for three consecutive years, along with bidding wars, are prevalent across the country and we have certainly experienced our share of this locally. And while homebuilding has jumped considerably year to date, Yun says new construction is sorely needed to continue filling the gap.
“The answer is to encourage builders to increase supply, and there is a good probability for solid home sales growth once the supply is addressed,” Yun said. “Additional inventory will also help contain rapid home price growth and open up the market to perspective homebuyers who are consequently—and increasingly—being priced out. In the end, slower price growth is healthier price growth.”
UCCS ECONOMIC FORUM DASHBOARD UPDATE
UCCS Economic Forum, College of Business, 8.23.18
As a sponsor of the UCCS Economic Forum since its inception, I receive updates on a regular basis that I like to share with you. For the most recent update on both the national and local statistics, including all sectors of the economy, please click here.
Registration is now available for the always sold-out Forum to be held on October 4, 2018.
You can register by going to the Forum website:
http://www.uccseconomicforum.com/registration.shtml
I hope to see a lot of you at this very worthwhile event.
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