Anything Selling in 2010?

Nestled in the desirable Holland Park neighborhood, this West side rancher was built in 1977 and features 4 bedrooms, 3 baths and over 2,100 finished square feet!  Enjoy unobstructed mountain views from the private yard, which backs to open space.  Exterior has rear privacy fence, mature trees, auto sprinkler, 2 storage sheds, huge concrete patio, dog run and even a horseshoe pit!  Interior includes finished basement with wood burning fireplace, new interior paint, new water heater, some new windows and a security system.  Great location...walk to nearby Jackson Elementary School and Jackson Park!

What's it called when a person says the same thing over and over?  Oh yah, REDUNDANT!  That's what I am going to be today as I discuss the yeart-to-date home sales for the Pikes Peak area. It's the same stuff I've been saying every month this year.

We are still seeing an increase in sales activity and a decrease in inventory (meaning homes for sale). The April statistics were just released, and here's is how the year is shaping up:

Single Family Home Sales = UP from last year at this time

Condo/Townhome Sales = UP (slightly) from last year

Total Active Listings for Single Family Homes = DOWN by 26%

Total Active Listings for Condos/Townhomes = DOWN by 36%

In summary:  It is a competitive market.  There are more buyers buying right now.  And they have less inventory to pick from than they did a year ago.  This is a faster paced market now, where buyers have to act fast when they find a home they like.  And, it is common to see multiple offers on one home.  Due to these circumstances, home prices are bound to rise, great news for sellers!

The two positive things I see for buyers are: (1) home prices are still at record lows.  To quote Dave Ramsey, "real estate is on sale."   (2) interest rates are still really good, at less than 4% for a 30 year fixed rate mortgage.  Low prices and low interest rates, great news for buyers!

This year warm temperatures came earlier than usual.  Today it's April 24th, and our high is supposed to be 82 degrees!  I'm not complaining.  I love it warm.  I'm just saying it already feels like summer here, and we're barely into Spring.

Another early arrival is the Miller Moths. According to our local paper, "Miller moths have commenced their assault on the Pikes Peak region. After a mild winter, the grey nuisances woke up early this year.

They squeeze into houses and garages through every crack and crevasse. They hang out around porch lights, waiting to enter homes unwelcomed. They bombard cars in a fluttering blizzard."

Their six- to eight-week migration happens every year along the Front Range, but doesn’t usually begin until late May.

I remember years ago as a newcomer to the area, I was stopped at a red light.  All these crazy birds swooped around my car at the intersection.  I thought "what is up with these frenzied birds?"  Later it all made sense.  The birds are there to feast on the yummy Miller Moths, who are attracted to the traffic lights.

Colorado folks may grumble about the moth invasion every year, but it's almost a tradition here. It confirms that  warm weather has arrived, and I suspect we'd miss the little pests if they didn't come around.

March sales data was just released.  We are still seeing the same trends.  Home sales are up slightly.  Inventory is down a lot.  The average sales price is still lower than last year, but I suspect that prices will start going up by the end of the year.

Year-to-date in the Pikes Peak area, we have had 1,711 sales of single family homes.  Last year at this time we had 1,686 sales so far.   We have had 236 sales of condos/townhomes.  Last year at this time we had 225 sales so far.

Active inventory (meaning homes for sale) is way down.  Today there are 3,271 single family homes for sale.  Last year there were 4,470 for sale at this time...a 26% drop!

The average sales price for a single family home is currently $212,328 as compared to the average price of $217,720 last year at this time.

I keep talking about the bidding wars I am seeing, meaning today houses are getting multiple offers and the highest bidder gets the home.  If this trend continues, home prices will be up this year.  It's hard to predict how much they will go up overall, but I'd bet it will be somewhere between 2-4%.  It'll be fun to see if I'm right!

I keep telling my buyers the market has changed.  Multiple offers on houses is the new norm, and the highest bidder gets the house.  Here is an example of what I mean:

The last two contracts I have written for buyers have both had competing offers coming in at the same time.  The first one went smashingly well.  I warned my clients "you have competition."  They offered $5,000 OVER asking price, and they got the house. The next one didn't go so well.

It was last Wednesday.  We knew we had competition going in. Another offer on the house had been submitted earlier that day.  But, according to the listing agent "the offer was low."  Based on that information, my buyers offered full price but asked for closing costs to be paid by the seller (a typical and reasonable request).

What I learned later was the listing agent called the other party, told them we were bringing in a competing offer, and they upped their price.  We got outbid.  And I had the sad task of calling my sweet, first time buyers and telling them that they didn't get the house, the one they were so excited about.

To make matters worse, I just learned that I know the competing agent quite well. Rats!  Couldn't it have been some random agent that I've never heard of?  That would make this pill so much easier to swallow.

My buyers are bummed, needless to say. And we are back on the road looking at many houses in hopes to find another one that is perfect for them!

Here's an interesting bit of information I found:

There is misinformation being circulated about a real estate transfer tax that will come into effect on January 1, 2013 that is part of the Health Care (Obamacare) reform legislation passed in 2010. THERE IS NO SUCH TAX. The Health Care legislation did create a new tax that would apply to a portion of the gain on the sale of ANY CAPITAL ASSET, including real estate. This tax would ONLY apply to persons with more than $200,000 AGI (Adjusted Gross Income) or $250,000 AGI on a joint return. The tax would NOT apply to any amount excluded from taxation under the $250,000/$500,000 principal residence rules. The tax is not imposed directly on the full amount of any capital gain.

Click here for a brochure that explains the 3.8% tax as it would apply to real estate with scenarios and examples

Home sales in the Pikes Peak region continue to rise!  The February stats were just released.  Here's what they say:

-  Sales of single family homes and condos/townhomes are up compared to last year at this time.

This February we saw 514 homes sold, and 83 condos/townhomes sold.

-  Inventory (meaning everything for sale) is down by 25% compared to same time last year.

Currently, there are 3,224 single family homes for sale and 384 condos/townhomes for sale.

-  The average sales price is lower now than it was a year ago, with single family homes averaging at $212,551 and condos/townhomes averaging at $131,254.

Interest rates are still at record lows: 3.875% for a 30 year conventional loan, and 3.625% for a 30 year VA or FHA loan.

In summary:  Sales are going up.  Inventory is going down.  It's a great time to be a seller due to less competition.    It's still a great time to be a buyer due to low interest rates.

It seems that almost every year MEN'S FITNESS magazine ranks Colorado Springs the fittest city in the nation.  We have a huge population of bikers, runners and hikers here, probably because of our mild weather and terrific outdoor trails.

One of my favorite running trails is the Pike's Peak Greenway.  The trail is 16 miles long, and starts just South of Woodmen Road and I-25.  It hugs Cottonwood Creek heading South all the way through downtown Colorado Springs.

The scenery is beautiful from the creek water down below to the mountains up above.  The entire length of the trail is paved in asphalt, and occasionally it intersects with rustic wooden bridges to cross over. The runners and bikers on this path are usually friendly, offering smiles and hellos in passing.

How fortunate are we to have such a trail system right in the heart of town!

Inventory is off by 27% this year as compared to last year at this time.  Translated: there are fewer homes today for buyers to choose from.  I remember back in the early 2000's when inventory was so slim that buyers were in bidding wars. At that time multiple offers were the norm, and the house went to the highest bidder.

I have to wonder if we are returning to that type of market.  I do know that right now under $200,000 is the hot price range locally, and buyers are already starting to outbid each other.  According to another agent I know, her buyers just lost out on their third property because they keep getting outbid.

Today, in the Pikes Peak region there are 3,128 single family homes for sale.  AND

There are 383 condominiums/townhomes for sale.

I wonder how many of these for-sale properties will receive multiple offers.

Men, want to score big points this Valentine's Day? Do something beyond ordinary. Flowers and candy are nice, but if you really want to impress her the answer is simple...dance with her!  Nothing is more romantic, enjoyable and seductive to a woman than a man who dances.

"I don't know how to dance," you say.  Buy some lessons.  Make that your gift to her.  You don't have to be some Fred Astaire.  Just make an effort.  Call a local ballroom dance studio and ask about taking a few lessons.  Most offer private or group classes. Group lessons usually cost around $10.00 and can give you the basic steps in just a few weeks.

Guys, it's one of the best investments you can make. And we women dig it!

Below are links to two of my favorite local studios:

http://www.bestofballroom.net/

http://socialelegance.net/

I watched the Superbowl yesterday.  As much as I enjoyed the game, I enjoyed the commercials as well. My favorite was that one with Clint Eastwood, talking about the economic recovery of America, Detroit in particular.  He spoke of American auto manufacturers in Detroit who are producing once again. I know their housing market is better, too. According to the Housing Predictor, "Prices have gotten so low in parts of Michigan that investors swooped in for bargains. Home sales have climbed for months, indicating that at least things aren’t headed south anymore. And the prices on some homes are actually rising. That’s right—going up!"

Locally, we have definitely seen signs of recovery in the housing market.  While we were fortunate not to suffer nearly as bad as Detroit, we did see some dips in home sales and values over the past 3-4 years.  But things are starting to shift now.  Last month in January we saw single family home sales up by 3%, compared to last year at this time.  Condos and townhomes are up even more, by 8.6%.   There is less standing inventory (homes for sale) now than last year.  It's down by 27%. That's huge!

To summarize:

Home sales are up (call that DEMAND)

Inventory is way down (call that SUPPLY)

This, my friends, means our real estate market is paced for recovery and growth. Dare I say...it's gonna be a good year!

For clothes shopping I like an alternative to the big department stores with crowded parking lots, escalators and impersonal customer service.  That is why I shop downtown Colorado Springs!  Tejon Street, in particular, has much to offer. Tejon has a nice variety of locally owned stores with everything from cookware to clothing. One of my favorite clothing stores is REGINA'S UNIQUE BOUTIQUE.

At Regina's parking is right in front, but you will need a few quarters to feed the meter.  The staff is wonderful. Knowing what styles I like, they will often call ahead and let me know of a new shipment they have in. They always remember my size and usually pull the clothes for me in advance so that I don't have to waste time picking through the racks.  Of course they ask about my family and real estate business, and are always helpful with letting me know which pants fit me best. The personal touch is great!

You can find just about anything there...jeans, jackets, work attire, boots and shoes. They carry cool brands like David Kahn, Jag and Cosabella.

But I must warn you.  When that phone call comes in and they plant that seed about the cool new clothing they've just gotten in, it's hard to resist that urge to shop!

Tax time is just around the corner.  Did you know that as a homeowner you will have some valuable income tax deductions?

Example:  Your mortgage interest is a deduction.  Let's say your house payment is $1,200 per month.  Of that amount, you might pay $900 towards interest. Multiply 900 x 12 (for 12 months in the year).  The answer is your annual tax deduction.  In this case, $10,800 would be your tax deduction.  Pretty cool, huh?

But wait, there's more!  Your property taxes for the year are another deduction.  Let's say you paid $1,300 in property taxes last year.  You get to deduct that on your tax return as well.

But wait, there's still more!  If you own a rental property, you can deduct the cost of home repairs and maintenance on it.

Buyers ask me all the time if purchasing a home is a good investment, especially during uncertain economic times.  My answer is YES!  Even if the home does not appreciate as quickly as you'd like, you are still saving money with all these deductions on your income tax returns.

Today one of my listings is having it's home inspection done.  Typcially, the buyers and their inspector are there for a few hours examining the home.  They'll look at the usual stuff like the roof, the plumbing, the electrical.  But there's more to it than just that.  Here's what Sellers need to understand about the inspection process:

1. DO NOT be home during your inspection.  Allow your buyers to inspect the home without you there.  This will make them more comfortable in speaking freely with their Realtor and home inspector. Also, this is their opportunity to stay excited about it, measure for furniture, keep the emotional connection going.  If you are home, they feel as if they are intruding on your privacy and will not likely enjoy being there.

2. If you own pets, CLEAN UP the evidence before the inspection.  It is so gross to stand in someone's backyard and have to step over or smell piles of doggie doo!  Plus, it gives buyers an overall bad impression of your cleanliness. 

3. Make sure the blinds or curtains are open, and turn on lights.  You want the home to appear bright and inviting.

4. Make the beds, vacuum, clean off countertops.  Get the toothpaste splashes off the mirror.  Basically, give  the impression that you care.

5. Make the home smell good.  A plug-in air freshener, candles or freshly baked cookies are all good ways to give it a pleasant scent.

6. Leave helpful literature on the counter for them.  Example: Receipts for recent work done, engineer's reports, permits, warranty manuals.  If there's an item which may not be obvious to them, a hand-written letter of explanation is always appreciated.

And just remember, this is your chance to keep making that good impression.  They want to buy the home, and this is your opportunity to make it shine for them.

Question: In 2011 what went up in Colorado Springs?

a) hot air balloons at the Balloon Glow during Labor Day weekend

b) Air Force Thunderbirds performing an AFA air show

c) home sales in the Pikes Peak region

d) all of the above

If you guessed (d) then you are correct!  That's right...2011 year-to-date home sales in our area surpassed total home sales in 2010 by 3.3%  I know it's a small climb, but at least we are headed in the right direction!

In 2011 we saw 8,459 single family home sales here.  Our average sales price dropped slightly by 4.9% this year.  BUT...here's the biggest change of all:  ACTIVE LISTINGS (meaning existing homes for sale) DROPPED BY 24% THIS YEAR.  Whoa!  Okay, let's summarize.

Sales are going up.  Inventory is going down.  Supply and demand are trading places.  What will that do the market this year?  Hmmm, I'm thinking prices are going to start going up again.  It will most likely be a gradual increase in price, and I'll bet the lower price ranges will see the most rapid improvement.  But I predict that 2012 will be an exciting year for real estate here!

Picture this:  You just bought a brand new home from a builder.  One month after closing you learn that the   subcontractors who did work on your home are now filing mechanic's liens against your property.  What do you do?

1. You can do nothing and know that those liens are only valid for 12 months.  After that, they either drop off or have to be refiled by said contractors.

2. You can sell or refinance the house, in which case those liens would have to be paid at time of closing.  But this is where title insurance would step in and help you.

If you go to sell or refinance the house, and you incur a financial loss as a result of such a lien, then your title insurance policy would pay for that loss.  It works much like other insurance, where once you incur a loss you file a claim and your insurance company pays on that claim.

Of course, this is the abbreviated version and there is a little more detail to it.  But at least it's good to know that your title insurance policy is there to protect you!

Built in 2006, this former model home offers 5 bedrooms, 3 bathrooms and over 2,700 finished square feet! Popular ranch floorplan features hardwood floors throughout the main level, custom tile in kitchen and bathrooms, vaulted ceilings, maple cabinetry, recessed lighting, under cabinet lighting, pantry, huge finished basement, upgraded carpet and pad, 5 piece master bath, 2 gas fireplaces and air conditioning!  Great location...close to shopping and schools!

Guess which photo is my front yard today...if you guessed photo number two you are correct!  Yep, it's December here in Colorado Springs.  And what does that mean?  Okay, besides snow and Christmas time...it means the November stats are out.  So here's the latest on our real estate market:

Home Sales :  UP 3.4% over last year at this time.  At the end of last month, home sales in our area were at 7,808 units sold.  Last year we were at 7,554 right now.

Average Sales Price : DOWN 4.5% over last year at this time. Currently, the average sales price is at $218,527.  Last year it was $228,936 at this time.

Active Listings (meaning number of homes for sale) : DOWN 22.7% over last year at this time.  At the end of November we had 3,667 homes for sale here.  Last year November we saw 4,746 homes for sale here.

To summarize:  Sales are up slightly over last year.  Prices are still coming down.  Inventory is way down.  75% of home sales this year have been under $250,000 in price.  For that range, it's a seller's market.  Over $250,000 in price, the months supply gets longer and it remains a buyer's market.

Interest rates are still amazing: 4% for a 30 year, conventional fixed rate mortage.  3.75% for a VA or FHA.

Rock on!

At the end of last month we had 3,959 active listings (houses for sale) in our area.  What I find interesting is of those 3,959, a lot of it is junk!  Today I was showing houses to a couple of buyers, and it was surprising how much of the homes were less than wonderful. We saw homes backing to busy streets, homes with old floors, old cabinetry, old fixtures, old appliances, strange odors.  The really nice stuff, the ones where you walk in the door and say "Wow," are few and far between.  Those are the houses which sell in record time.  Those are the ones with multiple offers, which often bring in top dollar prices. 

I think today's buyer has an expectation that homes should look really good. They want the granite counters, the high grade carpet, the pretty paint, the expensive landscaping.   They want the cool light fixtures and new appliances.  They want ambiance, style, the WOW factor! It doesn't matter if they are buying an 1,100 square foot bungalow or a 4,000 square foot sprawling rancher.  They want cool, classy, done right!  I know it exists.  I've seen it before.  I've sold it before. 

To sellers I say: Spend a little, make it pretty.  That will make it sell.  To buyers I say: You may have to open more doors these days in order to find your treasure.  But it does exist!

October stats are out.  So far, home sales this year have surpassed sales of last year by 2.3%.  Year-to-date home sales in our area are now at 7,164 units sold as compared to 7,005 last year at this time.

The average sales price dropped even more, currently at $218,414.  That's down 4.5% from last year's $228,595. 

The biggest change I see is inventory (meaning current homes for sale) has dropped 22.7%!   That's huge!  There are 22% less homes for sale right now than last year at this time.  Great news for sellers...you have less competition now.  The only challenge is buyers still want to negotiate with you on price and concessions.  And those willing to play that game of negotiation are the ones who's homes are selling.