Nicole's Colorado Springs Blog

People keep asking me this question "How's the market doing?"  What I say is sales are up, home prices are up and interest rates are starting to climb again, too.

This May, sales of single family homes rose 20.4% from May of last year.   The average sales price rose 7.1%, and the median home price rose 2.5%.   Our inventory levels (meaning homes currently for sale) are about the same now as they were last year at this time, with 3,645 single family homes for sale now.

Condos and townhomes are keeping up just as nicely.  Sales rose 20% in May, compared to last year.  The average sales price rose 35.2%, and the median sales price rose 7.6%.  Inventory levels are about the same as last year, with 424 units for sale now.

Interest rates have climbed.  A 30 year conventional loan is now at 4.25%.  VA loans are at 3.75%.  FHA loans are at 3.625%.

The market has definitely improved, especially for sellers who are now getting more money for their homes than in recent years.  And with interest rates still low, buyers are spending!

I just discovered a great new Thai Restaurant.  It just opened in January and is called SENGCHANH.  Conveniently located just North of Woodmen Road, at 7525 N. Academy Blvd., this place is easy to find.

I'm a Thai food junkie, always searching for authentic Thai cuisine made right, and this place does it!  They have the common dishes like the Pad Thai noodles entree or Chicken Satay appetizer.  My personal favorite is the YamNeu salad, which is grilled beef, onions, tomato, mint, cucumber and red chile atop lettuce.  The dressing is a nice blend of citrus (lime) and chile spices. You can order it on a scale of 1-5 in spicy.  I chose the number 3 spicy, and it was enough to make my eyes and nose water.  Good stuff!

The atmosphere here is casual but nice, with cloth napkins and fresh flowers on every table.  I'd guess the room probably seats 50-75 people at one time, so it doesn't feel too crowded.  They weren't terribly busy when I ate there, so we were seated immediately and were able to have a nice dinner conversation without much noise or distraction.

In comparison to my usual Thai food favorite, Wild Ginger, I'd say this place is equally good in flavor and atmosphere, but it's in a better location and easier to find.

If you like Thai food, I highly recommend SENGCHANH!

I am so excited about this new listing!  It's super cute.  The house was built in 1947 and has been tastefully remodeled including hardwood floors throughout, updated kitchen with gas range, built-in microwave, pantry, exposed brick, new exterior and interior paint, new roof, new carpet, new tile in bathroom and laundry area, office with built-in computer desk, oversized patio, storage shed, and fenced backyard bordered by mature lilac bushes.  It's on a quiet street, walking distance to a neighborhood park with playground.

to see more photos and video, go to http://www.mcarthurave.com

For about a year now, I've been reporting that home sales are increasing, and home prices are going up, too.  And that holds true for last month's activity as well.  According to the Pikes Peak Association of Realtors, here is what we saw in April:

SINGLE FAMILY HOMES:

Sales = UP 18.9%, compared to same time last year

Average Sales Price = UP 6.3%, compared to same time last year

CONDO/TOWNHOMES:

Sales = UP 55%, compared to same time last year

Average Sales Price = UP 8.4%, compared to same time last year

One thing I find interesting, though, is inventory numbers have changed a lot this month.  Our active inventory (meaning homes currently for sale) is only down by 0.2%.  And for condos/townhomes it's only down by 6%.  That means more homes are for sale now than in recent months.  It could be that many sellers were waiting for that "optimal time" to put their home on the market, and that time has come. Maybe they heard that homes are selling faster and for more money than in years past.  Maybe they heard that many properties are getting multiple offers, and some are even selling ABOVE listing price.  Or maybe they were just smart enough to wait until our "busy season" marked by warmer weather and kids out of school.

Whatever the reason, it will be interesting to see if this surge in inventory will have an impact on the time it takes to sell.  Until recently, less inventory meant less days on market.  I wonder if more inventory will mean more days on market.  Time will tell!

Until recently, insurance companies were okay writing policies for homes with T-Lock roofs. Over the past few years and due to wind and hail claims, insurance companies are no longer able to write coverage on these roof types due to the fact that if one single is damaged, the ENTIRE roof must be replaced!

The company who made the T-Lock roof shingles went out of business in 2003, so the shingles are no longer available, therefore insurance companies are forced to replace the entire roof if damage is found.

Only a few insurance companies still remain that will write these types of roofs but they will only cover them at depreciated value, and since most remaining T-Lock roofs are now close to 10 years old the amount of coverage that would be provided on an actual cash value basis is almost nothing.

What can a buyer do?  Ask your Realtor what kind of roof the house has.   Get a home inspection, to determine the condition of the roof you are buying.  If you find the home has T-Lock shingles in poor condition, ask the seller to replace them.  Let the burden of installing a new roof be his, BEFORE you buy the house. If the seller will not replace the roof, call your insurance agent and make sure that you can get a new policy with the existing roof.  If not, you may need to kill the deal.   Your lender will require homeowner's insurance as a condition of your new loan.

Right now in my refrigerator, there are 22 extracted human teeth!  Gross, right?  Well, it's actually my daughter's science fair project, the same one I did at her age and won 1st place for.  The project is "The Effects of Foods on Teeth."  We soaked 11 pairs of teeth, each in a different food, for 3 days.  The results were fascinating.  Some of the worst damage was caused by the ones soaked in grape juice and Mountain Dew.  Those teeth were deteriorated and terribly stained.

Today we learned she had won 1st place for that project!  Out of roughly 100 students in the 5th grade at Martinez Elementary School, she took 1st place in the physical science category.  I am so proud.  From here, she will go to the School District Science Fair, where her project will compete against those from other schools.  And that science fair is still a few weeks away, so until then we are keeping the nasty teeth in a cool environment, my fridge.   Want to come over for dinner?

Clients often ask about our local economy in Colorado Springs, like what makes it strong?  My answer is always the same, "our economy is 50% military, with powerhouses like the Air Force Academy, Peterson AFB, Shreiver AFB, and Fort Carson Army Base here.  In addition, we have quite a few defense contractors based here."  Although our recent government sequestration has had an impact on all of these, locals feel optimistic that it will only strengthen defense locally.

According to the Denver Post on April 7th, writer Kristen Leigh Painter says "COLORADO SPRINGS-With a heavy concentration of military bases and defense-related businesses, it is not a matter of whether federal budget cuts will hit Colorado's second-largest city but a matter of how hard.

However, some area business and political leaders, while bracing for economic bleeding, see an opportunity to recast the city's economic future. Through a combination of nimble strategizing and aggressively targeting competitors for acquisition, a handful of companies operating in the shadow of Pikes Peak are hoping to position themselves and the city on a growth path.

"It is kind of one of those Charles Dickens moments: 'It was the best of times, it was the worst of times,' " said Andy Merritt, chief defense-industry officer for the Colorado Springs Regional Business Alliance.

The pride of Colorado Springs has long been its robust defense industry. With the fallout from budget cuts now happening, the "worst of times" is self-evident.

The across-the-board trimming of federal spending — ranging from 2 percent to 8 percent among programs and called sequestration — is because Congress and the White House haven't come up with a deficit-reduction plan. The defense budget is absorbing half of the cuts.

El Paso County receives about 1 percent of the U.S. Department of Defense's $600 billion budget — a disproportionately high percentage for a single county.

The four largest employers in the city are the military installations at Fort Carson, Peterson Air Force Base, Schriever Air Force Base and the U.S. Air Force Academy.

Thousands of civilian employees are preparing for federal furloughs while several defense and aerospace contractors have made mass layoffs after losing U.S. government contracts.

But in the midst of the discouraging news, several leaders in the Springs see an unusual opportunity afforded by the fiscal constraints.

"This is a very disruptive time. ... It is a crossroads; it is a turning point in our industry," said Jay Jesse, president of Intelligent Software Solutions in Colorado Springs. "I have a ton of optimism that we are part of the solution, not part of the problem."

Jesse, a vocal critic of Washington's fiscal habits, is surprisingly optimistic about this moment in time for his city.

"If you look out over the next several years — forget sequestration — we are one of the states that depends on defense and aerospace, and we are proud of that. We were propped up on that during the tough economy, and now the shoe is on the other foot," Jesse said. "This is bad for the economy and the industry, but it could be very good for a company like ISS in the long run."

ISS and Colorado Springs-based Braxton Technologies are not the largest defense contractors — ISS has 475 workers in the city and Braxton has 67 — but they are well-positioned to capitalize on the sequester."

According to the Pikes Peak Association of Realtors, March was a great month in our real estate market!  Here is what we saw:

SALES OF SINGLE FAMILY HOMES                                 =                  UP 27.9% OVER LAST YEAR

SALES OF CONDOS/TOWNHOMES                                 =                  UP 4.2% OVER LAST YEAR

AVERAGE SALES PRICE OF SINGLE FAMILY HOMES          =                  UP 10.4% OVER LAST YEAR

AVERAGE SALES PRICE OF CONDOS/TOWNHOMES          =                  UP 8.7% OVER LAST YEAR

ACTIVE LISTINGS FOR SINGLE FAMILY HOMES               =                  DOWN 6.2% FROM LAST YEAR

ACTIVE LISTINGS FOR CONDOS/TOWNHOMES               =                  DOWN 13.5% FROM LAST YEAR

To Summarize:  Sales have increased, meaning there are more buyers buying right now.  Prices have gone up. There is less inventory (active listings) for sale now than there was before.

This is great news for sellers, but it's still not so bad for buyers either.  With interest rates still below 4% for a 30 year fixed rate mortgage, your money will go further, increasing your buying power.

Rock on!

Check out my new listing!  This beautiful end-unit townhome was built in 1995 and features 2 bedrooms, 3 baths, 1,493 finished square feet, mountain views, new cherry wood floors throughout the main level, vaulted ceilings, gas fireplace with built-in shelves, formal dining room with walk-out to deck, spacious kitchen with eat-in nook, breakfast bar and wood floors, large master bedroom with vaulted ceiling, walk-in closet, private bath with double vanity, oversized master shower with new tile, good size 2nd bedroom with built-in Murphy bed and walk-in closet, and 2 car attached garage with built-in cabinets!  Water is included in the monthly HOA dues.  Great location...walk to nearby Bear Creek Park!

Check out my new listing!  It's adorable. This 2-story home has been lovingly maintained and updated including new roof, new water heater, new vinyl windows, newer furnace, new birch wood floors throughout the main level, new stone surround and mantle over the fireplace, new kitchen with maple cabinets, brushed nickel hardware, Corian counters, ceramic tile floors, recessed and pendant lighting, new appliances, new baseboards, new front door, new 16x10 composite deck and new landscaping!  It's in a great, school district 20 location, where you can walk to the nearby elementary school and Cottonwood Park!  And...it's listed BELOW the recently appraised value.

In 2005, 2006 and 2007 new home construction soared!  Home builders built at a record pace, especially in places like Las Vegas and Phoenix.  They flooded those markets with new inventory, overbuilding the areas.  As a result, home prices softened.  There was too much supply and not enough demand.

Fortunately, Colorado Springs was behind the curve back then.   And because we weren't as over-built, over-priced and over-sold, we are rebounding faster than those cities are.

Currently, the local housing market is off to a great start.  New home construction has picked up but at a reasonable pace.  Existing home sales are higher now than last year at this time.  Interest rates are still really low, and there appear to be more buyers out there.  Here's what the February Statistics looked like:

SINGLE FAMILY HOME SALES                              =   UP 29.2% FROM LAST YEAR

AVERAGE SALES PRICE                                      =   UP 4.6% FROM LAST YEAR

HOMES FOR SALE NOW (ACTIVE LISTINGS)          =   DOWN 5.9% FROM LAST YEAR

Although an improvement over last year, our housing market is seeing a reasonable recovery.  It's not record-breaking, and it probably won't make headlines around the country.  But I think we prefer our stable market.

Built in 2006, this lovely 2-story home is located on a quiet street and features Pikes Peak views, Stucco and Stone exterior, 3 bedrooms, 2 1/2 baths and over 1500 finished square feet!  Pride of ownership shows.  This home is clean and well maintained.  Interior includes spacious living room with gas fireplace and built-in T.V. niche, new ceiling fans, 5 piece master bath with new ceramic tile, maple cabinets with brushed nickel hardware, upper-level loft, and all appliances stay!  Yard and lawn maintenance is covered by the Homeowner's Association.  Great location...walk to nearby park and schools!

Check out my latest listing! Located on a quiet street, one block from Quail Lake and park, this charming rancher features terrific mountain views, 3 bedrooms, 2 baths and over 1,500 finished square feet! Lots of updates including Brazilian Angelim wood floors, new vinyl windows, new paint, new carpet, newer kitchen with Corain countertops, new roof, new rear patio and remodeled baths. Stunning master bath has quartz countertops, ceramic tile, glass tile backsplash, brushed nickel hardware and faucets. Wood burning fireplace and air conditioning give year round comfort!

Last year was definitely a good year for the Colorado Springs housing market. We saw a nice, little recovery for the first time in five years.  I expect this year will be another solid year in our market, and I'm not the only one who thinks so.  According to our local paper, THE GAZETTE, "The recovery that took hold last year in the Colorado Springs-area housing market should continue to gain steam in 2013."  So far, our January sales statistics are proving this theory.

In January this year here is what we saw:

SALES OF SINGLE FAMILY HOMES      :      UP 39.2% OVER JANUARY OF 2012

AVERAGE SALES PRICE OF S/F HOMES:      UP 11.1% OVER JANUARY OF 2012

AVAILABLE HOMES FOR SALE            :      DOWN 7.2% FROM JANUARY OF 2012

and

SALES OF CONDOS/TOWNHOMES      :       DOWN SLIGHTLY, BY 3.9% FROM JANUARY 2012

AVERAGE SALES PRICE OF SUCH       :       UP 9.8% OVER JANUARY OF 2012

AVAILABLE CONDOS/TOWNHOMES     :       DOWN 6.9% FROM JANUARY OF 2012

It will be interesting to see what the next few months bring!

I'm not a CPA.  But I am a Realtor who is frequently asked about capital gains tax.  Just this week I listed a house for sale, and the seller was worried about having to pay taxes on the profit he makes. Here is what I told him:

When you sell your house, if it's your primary residence (where you live most of the time), then you only have to pay capital gains tax if the profit you make is more than $250,000 for individuals or $500,000 for married couples.

Profit means money above and beyond what you paid for the home.  Example: You purchased a home for $200,000.  You financed it with a mortgage.  You paid your mortgage off.  Now you go to sell that home and it's worth $225,000.   Since you originally paid $200,000 for it, that is not considered profit.  The $25,000 above that amount (which you are making now) is your profit.   That amount falls under the $250,000/$500,000 exclusion rule.  No capital gains tax would apply.

Some positive tax news for a change!

I am about to take a bite of the best, extra-lean brisket of beef I have ever tasted.  It’s fresh out of the smoker at RUDY’S BAR-BE-Q!

Nestled on the Southern edge of Old Colorado City, this restaurant has got it goin’on when it comes to cooked meat. They advertise themselves as a “meat market that sells smoked meats pulled form a pit.” The pit is smoking all day long, and the flavor of smoked meat consumes the air.  You can get brisket, chopped beef, turkey breast, pork loin, pork ribs, baby back ribs or chicken.  The atmosphere is way casual, catering to most of the locals in their blue jeans and work boots.  The floor is concrete, and seating is large wooden picnic tables with checkered red tablecloths.  You serve yourself.  They have all kinds of side dishes including beans, corn on the cob, potatoes or green chile stew.  And there are fresh pickles and jalapenos at the condiment bar.  Make yourself a sandwich or just eat it a la carte.  Fabulous!

Founded in 1959, Old Colorado City Is a National Historic District at the South end of Colorado Springs.  Bordered by Hwy 24 to the South, Uintah Street to the North, 32^nd Street to the West, and 13^th Street to the East, it’s a quaint mixture of Old Victorian meets the Wild West.

The streets in OCC are narrow, mostly designed for horses and buggies.  There’s plenty of shopping on Colorado Avenue from art studios to funky, little clothing boutiques.

Many houses in OCC are historic, some dating back to the late 1800’s.  Some have original wood floors and woodwork.  Currently, there are 46 single family homes for sale in OCC, ranging in price from $69,999 to $500,000. And, there are 25 townhomes/condos for sale, ranging in price from $105,000 to $289,900.

When buyers want an older area with historic charm, but don’t want to pay the price tag of downtown, I suggest Old Colorado City as a less expensive alternative.  But be prepared!  This area is, what I like to call, “colorful.”  There’s not much consistency there with the residents, the housing, or even the restaurants.  Whether it’s fine dining or casual Bar-Be-Q, Old Colorado City is worth checking out!

Instead of just writing about our real estate market, I thought it would be fun to do this video.  Enjoy!

Download Video: MP4, WebM, Ogg
HTML5 Video Player by VideoJS

Today my heart is heavy.  Last night I learned that a good friend who has been battling cancer this year will probably pass soon.  He is being moved to hospice today.  He is a husband.  He is a father of three young children. He is young himself, only three years my senior.

I struggle with the sadness of it all, the tragedy of life being taken from such a young man who is so loved and so needed on this earth.  I struggle with watching a family in pain, and knowing that kids will lose their father.  I struggle with questions of my own mortality and the realization of how fragile life is.

Part of me wants to ignore the sadness, sweep it under the rug, get on with my day and be the productive person I can be.  But another part of me weeps tears which seem to come on so quickly, and without warning. I know that pain is part of life.  I know that grief is necessary, and we cannot be perfectly happy each day.  Today I reach to friends and family for comfort.  And I read.

I picked up a favorite book, one which always helps during tough times.  It's called WHEREVER YOU GO, THERE YOU ARE, by Jon Kabat-Zinn.  It's a book about mindfulness, about finding peace in the moment, no matter how imperfect.  Today I am reading about the impermanence of life, and I am reminded that it is okay to "touch the mystery of being small, fragile and temporary, and to come to peace with the absolute inevitability of change." I am reminded to give myself permission to be sad and not to expect too much right now.

Thanks to the author for writing words of comfort and for giving me something to focus on, especially at a time like this.

The New Year is upon us. This Sunday, the AdAmAn Club will begin it's ascent up to the top of Pike's Peak to set off their annual fireworks show on New Year's Day.

A local tradition since 1922, the AdAmAn Club is a unique group of mountaineers, who each year on December 30th and 31st, climb the icy slopes on the east face of the world famous Pikes Peak.  Then, at the stroke of midnight on New Year's Eve, the members ignite a spectacular fireworks display from the summit to usher in the New Year.

Their club was formed in memory of the original "frozen five," and each year they add one new member from a list of applicants, hence the name AdAmAn.  These hearty men and women will brave frozen slopes and wind chills of -50 degrees.  In years past, blizzard conditions prevented them from completing their ascent and they were forced to call off the show.

Hopefully, this year will be a success for them. I appreciate their dedication and enthusiasm.

HAPPY NEW YEAR!

I'm not much for treadmill running.  Although I own a nice one, it just doesn't do it for me.  There is nothing like running in the elements and breathing in that fresh air.  Today was a snow day...about 19 degrees outside when I ran.  I've learned over the years how to dress for such a run. Here's what I suggest:

First, I start with silk long underwear, the kind skiers wear under their ski pants.  Over those I wear winter running pants, a spandex material which are lined with a thin, fleece.  They are tight fitting and have zippered ankles to keep the weather out.

On top, first on is my heart-rate monitor.  I like to gauge my heart rate when I run.  Next, I wear a runner's turtleneck.  It's made of polyester and elastane, and is tight fitting which keeps the warmth locked in.  Over that goes a zip-up hoodie.  I like to pull the hood out over my running jacket.  It provides a nice insulation around my neck, and I can always pull the hood over my head if the snow starts falling. The outer layer is a winter running jacket.  I got mine at REI.  It's a lightweight polyester and spandex blend.  It has a tight, zip-up neck and tight wrists to prevent weather from getting in.

For my feet I love Smart Wool socks.  I wish I had invented them.  They're 100% wool which keeps moisture away from my feet.  And let's face it, when you run in snow you're going to get some in your shoes.  There is nothing more uncomfortable than wet feet, and these Smart Wool socks keep mine nice and dry.

For shoes, I like the Mizuno Nirvana.  They're super supportive. Plus I have narrow feet, and these tend to be more snug around the toe area.  It's important for my feet not to move around loosely inside my running shoes.

Lastly, I don a wool had lined with turtle fur.  I bought it at a ski shop.  The only thing you have to watch for is make sure your hat is really snug.  A loose fitting hat will let the wind right in.  It's got to be tight so no weather can hit your ears.

Finally, I like to wear ski mittens on a day like this.  I've tried ski gloves, but I found them less warm because the fingers are all separated.  Mittens keep your fingers together which provides extra warmth.

So there you have it.  Take this advice from a 20-year runner.  Don't let cold weather stop you from enjoying a great, outdoor run!