HARRY'S BI-WEEKLY UPDATE 8.8.2019
August 8, 2019
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Unique Brand of 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.
THE TIMES, THEY KEEP A’CHANGING….
The only “normal” I’ve found lately is that there is none! The “new normal” keeps changing daily and it can be challenging, to say the least. Fortunately for me I’ve been through many, many housing cycles over my 47 plus years in the local real estate arena and I know how to weather the storms and come out ahead.
I’ve been quite busy this summer and it doesn’t appear to be slowing down. The fact that Colorado Springs is one of the hottest markets in the country right now doesn’t make it easier for anyone. In May, the National Association of Realtors released a profile of homebuyers for each metropolitan statistical area (MSA) in the U.S. compiled from 2017 U.S. Census data. The report responds to who was the typical homebuyer and what homes they typically buy in each of these MSAs, which provides insight about trends of homeownership at the local level. The report, in comparing the number of buyers with the number of all homeowners, identified the top 10 large metropolitan areas with the highest concentration of buyers.
One guess who came in at number one—Colorado Springs! Companies are choosing our city as the place where they want to relocate, and small business is thriving. Just more indications that things probably aren’t going to “normalize” in the near future.
We are also seeing those folks who thought they had missed out on the historically low interest rates who are now earnestly thinking that NOW is the time. Higher prices aren’t much of a problem for those who want to sell and trade up as they can more than likely get a higher price for their present home. The only drawback is that folks need to know where they are going next before listing their current residence since it will likely sell much faster than in past years. This is just one of the consequences of the shortage of available homes for sale.
Other scenarios I’ve encountered involve multiple offers in just hours of a listing, many over listing price and all-cash offers that most sellers like since there are no “contingencies”, such as the need to obtain a mortgage or sell another home. These offers are tough to compete with, and understandably so.
If there were more homes available for sale, there would be more “normalcy” but at the moment things are moving fast when it comes to both buying and selling in most price ranges, but especially the lower levels.
I can’t stress strongly enough the need to know exactly what your needs, wants and budget constraints are prior to starting a new home search. This is where I can be of tremendous service. I can help direct you to the homes with the features you desire while keeping within your budget. When it comes to financing, I can also direct you to lenders that can get you the best fit for your budget. A higher priced home might not be a problem if you can keep the monthly mortgage payment within your budget. It’s all a matter of taking time to make sure it fits for your individual situation.
Investment properties are also popular right now since monthly rental rates are rising and there are still folks who are being kept out of the current buying market due to prices or other situations. These folks need to rent and are looking as I write. If being a landlord is something you’ve considered, I’ve had lots of experience in this myself and would be happy to share the ups and downs with you.
New home construction is another option for those who can’t find what they want with the shortage of available existing homes. That’s another area where I can help. I have relationships with most of the local builders and can help you with site and home selection,as well as direct you to a lender that can work well with you. And all of this is provided by me at no additional cost to you!
If you, a family member or co-worker are even considering a move or an investment property…NOW is the time. Simply give me a call at 593.1000 or email me at Harry@HarrySalzman.com and let’s see how together we can make your residential real estate dreams come true.
JULY 2019 BROUGHT GAINS IN HOME VALUES AND A LOWER NUMBER OF SALES
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the July 2019 PPAR report. Remember that the new format of this report no longer provides monthly statistics for each individual neighborhood. However, if you are interested in what’s happening in your neighborhood, I can provide you with this information through other means.
In El Paso County, the average days on the market for single family/patio homes was 22. For condo/townhomes is was 12.
The sales price/list price for single family/patio homes was 100.2% and for condo/townhomes was 99.9%.
You can see from those statistics alone that buying a home in today’s seller’s market is not as easy as in the past, but with me on your side you’ve got a considerably better than average shot at it.
Please click here to view the detailed 9-page report, including charts. If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.
In comparing July 2019 to July 2018 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings are 1,852, Down 1.7%
· Number of Sales are 1,662, Up 4.4%
· Average Sales Price is $372,607, Up 7.2%
· Median Sales Price is $332,000, Up 7.1%
· Total Active Listings are 2,199, Down 7.8%
· Months Supply is 1.3
Condo/Townhomes:
· New Listings are 249, Up 1.6%
· Number of Sales are 252, Up 7.2%
· Average Sales Price is $242,335, Up 3.5%
· Median Sales Price is $228,500, Up 4.8%
· Total Active Listings are 198, Up 23.0%
· Months Supply is 0.8
Now a look at more statistics…
JULY 2019 LOCAL MARKET UPDATE AND MONTHLY INDICATORS ILLUSTRATE OUR LOCAL TRENDS IN DETAIL
Colorado Association of REALTORS® ,Pikes Peak REALTORS Service Corp, or it’s PPMLS
Providing greater detail than the above report, this contains information on both Colorado Springs and Teller counties for residential real estate.
It is broken down by geographical areas and you can look to see how your geographic area is doing in terms of sales, prices, and more.
The “Activity Snapshot”for all residential properties in El Paso and Teller counties shows the Year- to-Date one-year change:
- Sold Listings for All Properties were Up 2.5%
- Median Sales Price for All Properties was Up 7.0
- Active Listings on All Properties were Down 18.2%
You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical area of your choice from the 18-page Local Market Update. I recommend that you check out your own area or one that you are considering, to get a good idea of the local pulse. As an example, here is a detailed report on the Black Forrest/Elbert area:
THREE EXPERTS GIVE INSIGHTS ON INVENTORY IN THE CURRENT MARKET
Keeping current matters, 7.29.19
The current housing landscape, especially in Colorado Springs, offers greater home values, low interest rates and very high buyer demand, all of which point to the strong market forecasted to continue throughout the rest of the year.
However, as I’ve been saying for months now…the one thing that is causing the market to tap on the brakes is an overall lack of housing inventory.
Here is what a few national industry experts have to add:
- Lawrence Yun, Chief Economist at National Association of Realtors: “Imbalance persists for mid-top-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices.”
- Mark Fleming, Chief Economist of First American: “Market conditions are ripe for increasing home sales with one, glaring exception. The supply of homes for sale remains tight, keeping existing home sales below potential.”
- Danielle Hale, Chief Economist of Realtor.com: “We’re not seeing as many new listings come up on the market…It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we’ve ever seen.”
Bottom Line?
I’ll say it one more time—if you’re thinking of selling, NOW is the time. Demand will be strong during a period with very little competition which ideally will lead to a quick sale and a great return on your investment. Just give me a call and let’s see if this is the right move for you and your family.
