HARRY'S BI-WEEKLY UPDATE 4.3.18
April 3, 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.
As I was sitting in the Pikes Peak Center last week watching the production of “Let It Be”, I couldn’t help feel nostalgic—most especially with the rendition of John Lennon’s “Imagine.” It reminded me of other times, different times, and yes, in some ways, easier times.
When the March 2018 PPAR statistics arrived in my email yesterday, I sang quietly to myself….”You may say I’m a dreamer….”
That’s exactly how I feel when I look at the current numbers and am just simply amazed at how far the Pikes Peak Residential real estate market has come since I began my career here in 1972.
The past few years have been nothing short of phenomenal for both buyers and sellers. However, the still historically low interest rates, while slowly rising, are quite a change from the 1970’s, too and are helping first time and move up buyers get into homes of their dreams. Investors are also seeing great returns as the rental market has picked up exponentially too.
Despite the shortage of listings, both here and across most of the U.S., Colorado Springs has climbed to number 3 on the Realtor.com “Hot List” which reflects the metro areas garnering the most listing views on their site, as well as where homes spend the fewest days on the market.
According to Javier Vivas, director of economic research at realtor.com, “Never in history have there been more eyes on fewer homes than today. The price gains observed in the last days of March tell us the market is on pace to see half of the homes listed above $300,000 this summer. This means buyers are not just having to pay more for the same home—they’re also seeing the mix of what’s available change more rapidly.”
And, according to the U.S. Census Bureau, El Paso County is seeing the largest gain in population among the other fast-growing counties along Colorado’s Front Range. Our population increased by 12,526, the most in 2017, followed by Weld County and then Denver.
While Denver remains the Colorado county with the highest population—704,621 people—El Paso County is close behind with 699,232 people.
State population forecasts show that El Paso County could initially surpass Denver in population in 2020. They are expected to run neck-in-neck until 2035, when El Paso County is expected to take the lead for good.
Local experts are attributing this to our high quality of life, low property taxes and utilities and increased economy and job growth. The county also attracts veterans, military retirees and young families. Spillover from the Denver area is also a factor according to Steve Schleiker, El Paso County Assessor.
If you’re considering a move and wondering how all of the above applies to your individual wants, needs and budget, 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 a few AMAZING statistics…
Homes are selling at 100.3% of listing price with the average days on the market at a low 25.
This continues to be great news for both buyers and sellers, despite the fact that interest rates are beginning to rise. However, as I just mentioned, it does foster the necessity for fast decisions, so “a word to the wise”…
As you will see in the Cumulative Year to Date Summary, total sales numbers in Single Family/Patio Homes and Condo/Townhomes are up 3.8% and 0.5% respectively for year-over-year. As you might imagine, this number would have been much higher had there been more homes for sale.
The Monthly Summary shows that compared to a year ago, total active listings are down 5.7% for Single Family/Patio Homes and down 30.2% for Condo/Townhomes, continuing a downward trend that tends to favor sellers. New listings are down 0.1% for Single Family/Patio Homes and up 20.5% for Condo/Townhomes. The reality is that total active listings are at a record low and remain a factor in the median price escalation.
For more details, please see the following article.
MARCH 2018 WAS ANOTHER OUTSTANDING MONTH IN LOCAL RESIDENTIAL real estate
Statistics provided by the Pikes Peak REALTORS Service Corp, or it’s PPMLS
Here are some highlights from the March 2018 PPAR report. A look at the Median Sales Prices should put a big smile on many of your faces! Please click here to view the detailed 15-page report, including charts. If you have any questions, just give me a call.
In comparing March 2018 to March 2017 for All Homes in PPAR:
Single Family/Patio Homes:
- New Listings are 1,758, Down 0.1%
- Number of Sales are 1,231, Down 1.3%
- Average Sales Price is $340,594, Up 15.1%
- Median Sales Price is $300,000, Up 11.9 %
- Total Active Listings are 1,371, Down 5.7%
- Months Supply is 1.1
Condo/Townhomes:
- New Listings are 270, Up 20.5%
- Number of Sales are 175, Down 17.8%
- Average Sales Price is $211,378, Up 16.4%
- Median Sales Price is $208,546, Up 20.5%
- Total Active Listings are 97, Down 30.2%
- Months Supply is 0.6
COLORADO SPRINGS AREA MONTHLY SINGLE FAMILY/PATIO HOME SALES ANALYSIS*
Median Sales Price Median Sales Price
March 2018 March 2017
Black Forest $552,500 $465,000
Briargate $385,000 $380,000
Central $250,000 $225,000
East $260,000 $242,500
Fountain Valley: $267,000 $230,000
Manitou Springs: $290,000 $341,225
Marksheffel: $319,000 $295,000
Northeast: $292,500 $267,750
Northgate: $469,000 $430,000
Northwest: $389,500 $397,500
Old Colorado City: $230,000 $250.500
Powers: $295,635 $260,000
Southwest: $300,000 $282,450
Tri-Lakes: $482,000 $425,000
West: $343,000 $290,000
MARKET CHALLENGES DAMPEN HOPES BUT BUYERS MAY LOSE IF THEY DON’T ACT NOW
RealtorMag, 3/22 & 3/26.18
Although consumers are optimistic about the economy, job market and their own personal finances, more and more are expressing anxiety about their ability to buy a home, save for a down payment and qualify for a mortgage, according to the NAR’s Housing Opportunities and Market Experience survey for the first quarter of 2018.
The top barriers to homeownership is perceived to be saving for a down payment and qualifying for a mortgage, stemming from concerns about future incomes, student loan debt and having a low credit score, according to the survey.
As might be expected, current homeowners, older consumers and those living in more affordable housing markets express the most optimism about buying. “The critical shortage of listings in most markets continues to spark a hike in home prices that is not easy for many buyers—especially first time buyers—to overcome,” says NAR Chief Economist Lawrence Yun. “Adding more fuel to the affordability fire is the fact that mortgage rates have shot up to a four year high in just a few months.”
On the other hand, the share of homeowners who say now is a good time to sell has increased in the latest survey. “There’s no question that a majority of homeowners have amassed considerable equity gains since the downturn,” Yun says. “Home prices have grown a cumulative 48 percent since 2011 and are up 5.9 percent (nationally) through the first two months of this year. Supply conditions would improve measurably—and ultimately lead to more sales—if a growing number of homeowners finally decide that this spring is the time to list their home for sale.”
Accordingly, buyers may want to speed up their home search this spring, as interest rates are forecasted to move higher in the coming months. Forty-four percent of home buyers say rate increases will likely force them to settle for a smaller, less expensive home that requires a longer commute to their jobs, according to a realtor.com survey. First time buyers may be most affected by rising costs, as increasing home prices and interest rates price some out of the market.
For the bulk of buyers, it’s not going to kill their decision to purchase a home and if anything, it should get them off the fence by creating a sense of urgency. Higher rates are a “kick in the pants” for folks to start getting serious about buying now.
Rate increases—even minor ones—can add up over time. Realtor.com offers this example: On a $300,000 house with a 30-year-fixed-rate mortgage and 20 percent down payment, the difference between a 4 percent and a 5 percent mortgage rate is $142 a month.
I’ve been telling you for some time now that if you’re in the market—THERE’S NO LONGER TIME TO WAIT. Folks who thought they could wait are now getting concerned about rising home prices and interest rates. They are starting to realize that if they are going to buy, they probably should buy NOW.
Don’t wait any longer—give me a call today and let’s do what we can to make all your residential real estate dreams come true.
