August 1, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

LEMONADE, ANYONE ????

From time to time, our friends kid us about the fact that our Enewsletter always manages to maintain a positive view of the housing market. 

"With all the news about housing sounding so bad, how do you always manage to sound so enthusiastic about our local housing market", they ask.

Well, let's take a look at what's happening in housing and see if the "bad" news is really all "bad", or, can it actually be "good" news, depending upon how you react to it.

In other words, maybe we have to make lemonade out of the lemons that the market has dealt us in the past few years.

True, the news we read in the papers sounds pretty grim. For example, here's a few housing headlines from the past week:

  •  HOME SALES, PRICES REFLECT MALAISE - The Wall Street Journal, July 27
  • HOUSING PRICES RISE SLIGHTLY, BUT REMAIN WEAK - NY Times, 7-27-11
  • GROWTH SLOWS THROUGHOUT U.S. -Gazette, July 31, 2011
  • HOUSING SQUEEZE FAILS TO LOOSEN UP- The Wall Street Journal, July 25.

(By the way, this last headline fits right in with our lemonade analogy)

Wow, that paints a pretty bleak picture, doesn't it? But now, let's look at some of the positive aspects of the data that will illustrate there's a fantastic opportunity waiting for you in today's market:

  •  Everybody has to live somewhere !!!!!, That means they either buy or rent their home.
  • While the population of the Springs has remained fairly stable, the percentage of people who own their homes has gone down (65.9% in June.the lowest level since 1998) and the percentage of people who rent has gone up accordingly. What this means is that the individuals and families who have lost their homes to foreclosure have now become RENTERS !!
  • Vacancy rates for apartments and single-family homes are way down and going lower.
  • Because vacancy rates are down, rents are going up (In many cases, mortgage payments are cheaper than rent, for the same property)

So, what does this mean to our readers who are thinking of selling their homes?

  •  If you don't have to move, or don't want to move right now, just wait for the market to come back (and it will, eventually). Relax, have a glass of lemonade and enjoy life !!!
  • If you have to sell right now because of a job transfer, or a change in your family finances, be prepared to price your home realistically, based upon today's market. True, you will probably have to sell at a price lower than you would have gotten three years ago... however, your new home will be a real bargain. ..and remember, for every dollar you "lose" when you sell at today's prices, you will gain one back when you buy your new home.
  • If you just want to "move up" to a bigger/nicer home in this area, but don't want to take a 'loss' on the sale of your present home, consider renting out your home. (You might even make more from the rent than you presently spend on mortgage payments). Later, when the market comes back, you can either sell your present home or continue to rent it out. But, before you decide to sell it, keep in mind that there are several financial benefits to being an "investor". (Call us to discuss this. You might be surprised how owning a rental property can improve your retirement plan).

 "OK, Mr. Lemonade. What if I'm a Buyer? "

Well, if you're a Buyer, you are looking at a fantastic opportunity. Some of the reasons for buying your home right now are:

  •  Prices are very low ..probably as low as they are ever going to be.
  • Interest rates are very low .probably as low as they are ever going to be.
  • Down payment requirements are very low .probably as low as they are ever going to be.
  • Inventory is very high .probably as high as it is ever going to be.

 (Come to think of it, those also sound like good reasons for buying investment property.)

And, if you need further assurance, just check out the following recent articles.

The Wall Street Journal: Why It's Time to Buy

CBS Money Watch: Why the Time to Buy is Now

Forbes Magazine: 9 Reasons to Buy a House Now

National Public Radio: For Many, It's Still a Good Time to Buy a Home

The bottom line: Call me at 719-598-3200 or 800 677-MOVE (6683) and we'll have a glass of lemonade and talk about your new home.

THE PARADE OF HOMES OPENS ON AUGUST 5TH

This year's Parade of Homes opens on August 5th and features 33 homes and 25 home builders. The main sites will be located at Gold Hill Mesa, Cordera and Flying Horse.

We're excited to see that Homebuilders are confident that the market is coming back and we're looking forward to seeing you and the beautiful new homes at the Parade.

If you would like any information about the Parade of Homes, just give us a call at 719-598-3200 or 800 677-MOVE (6683)

See you there.

AND HERE'S SOME MORE GOOD NEWS

Sorry to be so cheerful, but the good news just keeps rolling in. Here are some examples:

  •  CoreLogic's July report says that home prices are stabilizing and the number of foreclosures is falling.
  • Standard & Poor's Case-Shiller index of home prices in the top 20 metropolitan areas shows a 1% increase.
  • On the local scene, WalMart's new $100 million dollar data center will be built near Voyager and Interquest parkways. The center will require an additional $50 - $100 million in machinery and equipment and will initially employ about 30 people with salaries of $30,000 to $70,000. Construction will begin in October and will be completed in late 2012.
  • Kiplinger's Personal Finance magazine has named Colorado Springs as #4 in their list of 'Best Value Cities' The list cites "low living costs (8% below the national average), strong economies, great amenities and the high number of 'creative class' workers".

Colorado Springs is profiled in the September issue of Kiplinger's magazine and online at www.kiplingers.com/links/bestcities.

WANT TO KNOW MORE ABOUT HOW COLORADO SPRINGS IS DOING? THE "QUE" WILL TELL YOU

The Southern Colorado Economic Forum issues a quarterly report on our local economy. This 19 page report, called the "QUE" (Quarterly Updates and Estimates), contains graphs and statistics about every facet of our local economy and is invaluable in analyzing our economic progress. The most recent report shows that our economy is struggling to rebound, but slowly.

The "QUE" housing market statistics indicate that our prices and inventory are stabilizing.

Fred Crowley, chief economist for the Forum, states that we are on our way back up, but jobs will still be the critical factor in our recovery.

For a complete copy of the "QUE", Click here.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, please contact us. 

LATEST SALES AND LISTING STATISTICS

Click here for the most recent Sales and Listing statistics from the Pikes Peak Area Realtors Association

JOKE OF THE WEEK

To heck with news about the deficit. Deficit, Schmeficit, Who cares. The important news is that football is back. We thought you might enjoy the following story that illustrates what football means to the typical fan:

A guy named Bob receives a free ticket to the Super Bowl from his company. Unfortunately, when Bob arrives at the stadium he realizes the seat is in the last row in the corner of the stadium he's closer to the Goodyear blimp than the field. About halfway through the first quarter, Bob notices an empty seat that was 10 rows off the field, right on the 50 yard line. He decides to take a chance and makes his way through the stadium and around the security guards to the empty seat.

As he sits down, he asks the gentleman sitting next to him, "Excuse me, is anyone sitting here?"

The man says "No".

Now, very excited to be in such a great seat for the game, Bob again inquires of the man next to him, "This is incredible! Who in their right mind would have a seat like this at the Super Bowl and not use it?"

The man replies, "Well, actually, the seat belongs to me, I was supposed to come with my wife, but she passed away. This is the first Super Bowl we haven't attended together since we got married in 1965."

" Wow, that's really sad," says Bob, "but still, couldn't you find someone to take the seat? .maybe  a relative or close friend?"

No," the man replies, "they're all at the funeral."