September 28, 2015

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.

                                       

LOCAL HOUSING STATISTICAL REPORTS SHOW CONTINUED POSITIVE TREND

Pikes Peak REALTORS Services Corp.,

PPAR recently released the August 2015 “Monthly Indicators” and “Local Market Update” for El Paso and Teller Counties with data current as of September 11, 2015.  These reports go into more detail than the August “PPAR Monthly Statistics “I published several weeks ago and I know you will be as happy as I was to see this continued upward trend in local Residential real estate. 

The “Activity Snapshot” shows the one-year change:

  • Sold Listings for All Properties were up 23.9%
  • Median Sales Price for All Properties was up 2.7%
  • Active Listings on All Properties were down 31.4%.

This is great news for us all.  Those who have wanted to sell and trade up but found themselves “upside down” equity-wise in recent years are now seeing increased equity that could enable them to make a move while interest rates are still historically low. 

With the easing of loan, credit and down payment qualifications, the time is possibly right for first-time buyers to enter the housing market.  This is especially important with rental prices going sky high nationwide as well as locally.

You can click here for the entire 16-page “Monthly Indicators” report.  I’d like to share a couple of pages from that report that I feel will make you smile.

The average sales price on Single Family/Patio Homes is up 7.5% year-to-date, and while the Townhome/Condo market is still fluctuating, it is remaining relatively stable.  Inventory in both categories is down, which is contributing to the price increases but also making it a bit harder for those looking to buy.  I still contend that there is a home out there for anyone looking; however, sometimes you might need to re-think your wants and needs or look at a neighborhood that you might have missed in your search.

The “Total Market Overview” is very positive and I thought you might like to peruse it even before you read the report in its entirety.

      

 

      

 

      

 

Below I’ve highlighted just one area so that you can see the type of information available for the specific neighborhoods included in the 33-page “Local Market Update”.  To see data on all areas, please click here.

            

As you can see, there is valuable information here that can help you in making your personal housing decisions.  There are a lot of variables to consider in each particular neighborhood and that’s why I encourage you again and again to use a competent, knowledgeable real estate Broker when it comes to your individual housing needs.  We know the market, we know the neighborhoods, and most importantly, we get to know YOU.  Each transaction is different, based on the wants, needs and budget of a particular family and understanding those factors are an intricate part of whether or not a home can get to closing.

If you have any questions concerning these reports, or any other real estate concerns, please give me a call at 598.3200 or email me at Harry@HarrySalzman.com.  I’m ready to help make all your Residential real estate dreams come true and the time to start acting on them is NOW.

 

NOTE TO INVESTORS AND WANNA BE’S--RENTAL MARKET TO REMAIN STRONG FOR YEARS TO COME

Relator Mag, 9.21.15, The Gazette, 9.15

If you’re currently an investor or simply looking into investment property—now is a great time to expand your Residential real estate portfolio.

According to Frank Nothaft, chief economist for CoreLogic and former chief economist at Freddie Mac, the single-family rental market will continue to stay strong for years to come. 

“Since the great recession began, household formation has been anemic,” Nothaft noted in a column for HousingWire.  “But this year household formation will be at its highest point in 10 years—close to 1.7 million new households—many of which will be renters.”

Of the more than 5.8 million homeowners who lost their homes due to foreclosure during the housing crisis of the last seven years many have become renters, which has boosted growth of the single-family detached rental stock. 

Approximately 35 percent of all rental stock are single-family rentals and these are the ones that tend to have the lowest vacancy rate—less than 3 percent compared to 8 percent or more among larger apartment buildings, Nothaft notes.

Demand is pushing up rental rates, and “no matter how you crunch the numbers, the outlook for rentals looks strong for the foreseeable future,” indicated Nothaft.

On the local scene it was mentioned this week that at least five Colorado Springs-area aging apartment buildings have been sold in recent weeks, indicating that buyers are interested in multi-family properties regardless of their age.

The area’s vacancy rate fell to 4.6 percent in the second quarter of 2015, down almost a full percentage point from the same time last year according to the Colorado Division of Housing. This can be attributed to young people who don’t want or can’t qualify for a mortgage or retirees who are looking to downsize and seeking maintenance-free living. 

With interest rates still low, and the region’s economy steadily improving, buyers for both multi-family and single-family investment properties are pouncing while there’s time.

If you’ve considered single-family investment property, the time is ripe.  Just give me a call at 598.3200 and let’s discuss how you can make this a part of your investment portfolio today.

 

INCREASED LOCAL TAX COLLECTIONS INDICATE CONSUMER CONFIDENCE

The Gazette, 9.22.15

Sales tax collections in Colorado Springs rose last month to their biggest percentage gain in almost a year and tax revenues have increased for six straight months on a year-over-year basis. 

This is signification since the city relies on the tax to fund more than half its general fund budget that pays for many basic local services.  The sales tax report is another vehicle used by economists, businesses and others to keep tabs on the health of the city’s economy. 

According to Doug Price, CEO of the Colorado Springs Convention and Visitors Bureau, the Pikes Peak region has had a strong tourist season in 2015, which was boosted by the visitors who came for the Broadmoor Pikes Peak International Hill Climb, the Pikes Peak or Bust Rodeo and the Rocky Mountain State Games.    

He also said that lower gas prices encouraged more people to travel and explore tourist attractions. 

I’m always happy to share good news about our local economy, because let’s face it, when the city does well, the citizens do well and when the citizens do well, they invest in real estate, which in turn continues to earn equity as home prices increase.  Another “win-win” for us all.

 

STRONG ECONOMY TO ATTRACT MORE BUYERS

Realtor Mag, 9.17.15

Due to positive consumer spending and job growth, Fannie Mae researchers are predicting a strong economic gain in the second half of 2015, which will likely offset recent market volatility and heightened anxiety on Wall Street.

With full-time employment now surpassing its pre-recession peak and average hourly earning posting recent gains, we can look for increased consumer spending in the months to come according to Fannie Mae’s Economic & Strategic Research Group.

Doug Duncan, Fannie Mae’s chief economist, says “Continued strong performance of year-to-date home sales and modestly weakening leading indicators confirm that our prior forecast of existing home sales this year remains valid.” 

“Sub-par single-family new home constructions, however, has been somewhat disappointing, and as a result, we have lowered our projected single-family starts projections for 2016.  We anticipate total mortgage originations to increase approximately 25 percent for all of 2015, and total productions volume to decrease somewhere in the area of 18 percent in 2016, with the refinance share falling about 15 percentage points,” he added.

Overall, Fannie Mae is projecting economic growth of 2.4 percent for 2015—up slightly from 2.1 in its prior forecast.  “Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices,” Duncan says.

Bottom Line?  It’s a great time to own Residential real estate.  With price increases, low interest rates and fewer new construction starts, your home is earning equity as I write.  If you’re looking to sell and trade up, now’s a great time.  If you’re looking to buy for the first time or for investment purposes, it’s a good time as well. 

The Federal Reserve hasn’t raised rates yet, but Janet Yellen, chairperson for the Fed, has indicated that it is still her intent to raise rates before the end of this year.  At present though, with the easing of mortgage loan, credit and down payment requirements in a number of categories, now is looking like a great time to check out all the possibilities.  Just give me a call and let’s get the ball rolling.

 

HARRY’S JOKE OF THE DAY