SpringsHomes Blog

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!

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!

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.

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!

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!

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!

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.

Well, the September stats are out.  Year-to-date homes sales are about the same as last year, within 1% of last year's total at this time.  The average sales price is down 4.1% since last year.  Inventory, meaning homes for sale now, has dropped by 24.5% since this time last year. 

Less inventory is great news for sellers.  With less supply and continuing demand, the existing supply will sell! woo hoo! 

for more details see the stats at http://www.pikespeakrsc.com/stats/2011%20Stats/9-11stats.asp

Well, things around here are starting to look up!  According to the Pikes Peak Association of Realtors, in August home sales jumped a whopping 20% over last August.  There are 23% fewer active listings (homes for sale) right now than last year at this time.  The average sales price is only down 4% year-to-date.

In our area, 75% of home sales this year have been under $250K in price.  And under $200K there is less than four months of standing inventory.  Much of that inventory is foreclosures and short sales.

All good news!  Sellers can expect less competition and more buyers out there right now.  Buyers can expect great interest rates and still some good deals to be had.

To read more go to http://www.pikespeakrsc.com/stats/2011%20Stats/8-11stats.asp

Year-to-date home sales for the Pikes Peak area have dropped slightly over 2010.  Sales of single family homes have dropped by 5.8% so far this year.  The average selling price for a single family home is down 3.2% over last year.  Interesting...77% of home sales this year have been under $250,000 in price.

So far, June was my busiest month this year.  It was mostly buyer activity, with many military families relocating. 

Interest rates are still at record lows, averaging around 4.5% for a 30 year fixed rate mortgage.  This gives buyers a huge advantage in being able to afford more house at a lower payment.

To see the latest market statistics, go to http://www.pikespeakrsc.com/stats/2011%20Stats/6-11stats.asp

... or at least check if it would be required for the type of improvement you are doing!

We are undergoing a lot of home improvement projects at our home, and we have had our contractor pull permits for every one of them. If you are replacing carpet, painting or putting new tile in a room you don't need a permit. If you are adding on to your structure, changing ANY plumbing, electrical or interior walls, pull a permit or at least ask. For details on cost or permits and requirements, you can visit www.pprbd.org (Pike's Peak Regional Building Department). Most common permits are pulled for new water heaters, furnaces and roofs. They are required for new decks, extensions to decks, etc. Some improvements may require a survey to be done. If you are adding on to your structure, especially if you live on a "standard" in-town lot, your improvements may encroach on a neighboring property or your utility easements... bad news! So do everything by the rules and keep it on the up-and-up. It will be a LOT easier to sell when the time comes.

Here are a couple stories:

Story 1 - I just sold a home, working with the buyer, where some improvements were made. The seller did some major additions onto the home... a new garage, efficiency apartment, and front sun room addition to the main house. Prior to improvements being made, the seller had a surveyor complete and Improvement Location Certificate (ILC) of the proeprty to ensure the improvements would not encroach. The improvements were made with permits and to building code. At closing we realied a new ILC would be required for the title company to ensure of those added portions of the property. Said ILC was completed post-closing and everything was fine. If there is a concern or question if improvements encroach, I HIGHLY recommend the buyer complete a new ILC during their transaction to be absolutely certain there are no issues that would affect their title insurance. ILCs can be competed by a number of local survey companies from $225-500 depending on the size and location of the property.

Story 2 - I had a listing that was built in the mid-1970s. The home owner 17 years priors and 2-3 owners before my clients did some MAJOR remodeling. They removed some interior walls to open up a choppy 1970s floor plan to a very nice great room concept! It was one of the things that drew my clients to the property 13 years ago, and what drew the buyers who eventually closed in it. However, in the inspection process it was discovered that the permits were pulled to do the work, BUT they were voided instead of finalized/completed with Regional. Since the property has transferred ownership 2-3 times in the 17 years since the work had been done, it was highly likely that code has changed and that more work would be required. The seller was not willign to undergo this extensive process. Fortunately the buyer felt strongly enough to move forward with this sale and the great price they got on it. They are likely to get permits after the fact to complete that remodel work to code.

It should be noted that permits can cost as much as TWICE the original price if done after the fact. They also sometimes require some fixtures to be removed, like lights, sinks, toilets, electrical outlets, etc. It is MUCH easier to abide by the rules and get a permit. If your contractor is finishing part of your basement, no plumbing or anything and they tell you they don't need a permit, don't trust that!! There is electrical and structural items that need to be verified. Colorado requires "hanging" basement walls because of potential movemebt in basement floors.

The bottom line, if you are doing improvements, get a permit if it's possible for the type of project you're doing! If your unsure, go to Pike's Peak Regional Building Department website and look, if that doesn't help call. And if you need a recomendation for qualified, professional contractors, give us a call or email!

Turns out there is a lot I didn't know about the tax credit when it first came out. It sure stimulated the economy, but there are a few things now-home-owners need to know.

First, if you received the tax credit for a purchase in 2008, it is basically an interest-free loan to be re-paid to the IRS over 15 years in $500 installments each year you file your taxes from 2010 forward.

Second, and more importantly, you could have to repay it under certain circumstances even if used in 2009-2011. I have been asked this question more than once in the past couple weeks, so it's time to dig a little deeper and help you find the answer.

• If the home ceases to become your primary residence (even through foreclosure or the home being condemned/destroyed) within less than 36 months after your purchase, the amount is due in full through your tax filing immediately the next Spring when you file taxes.
• There are exceptions to this, most notable for the military in our area, government orders to relocate. To me this means anyone reassigned by the military to another service station.
• The following items to NOT qualify as exceptions and would require repayment of the tax credit:

1. Divorce
2. selling the home
3. making the home a rental
4. make the home a vacation property
5. selling the home to a family member
6. condemnation of the home

There is much more information and answers on the IRS website, which is certainly more eloquent and informational than me... check it out here - http://www.irs.gov/newsroom/article/0,,id=206293,00.html

This end unit townhome is just under 2,000 finished square feet located in southeast Colorado Springs. It has 3 bedrooms, 2.5 bathrooms, a finished 2 car garage and was built in 2009. The spacious kitchen has wood floors throughout and has newer black appliance to include an oven, range, dishwasher and microwave. The wood floors flow into the dining area which is attached to a deck great for grilling on those Colorado summer nights. All three bedrooms are located on the upper level as well as the convenient laundry room. The master bedroom has an open 5 piece master bath and an expansive walk-in closet. If you would like more information, photos or if you would like to set up a showing contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit www.Squawbushridge.com.

Didn't like math when you were in school?  That's okay.  Today you'll like the numbers!  Last month our area saw an increase in home sales of 7.3%, as compared to last year at this time.  In March 776 single family homes sold.  The average sales price was $211,426 which is slightly lower than the average price of $215,625 last year.  Inventory has dropped, too.  At the end of March we had 4,470 homes for sale, a 6% decrease from this time last year.  http://www.pikespeakrsc.com/stats/2011%20Stats/3-11stats.asp

Plus, our local paper just reported that foreclosures have come down. http://www.gazette.com/articles/-115547--.html

There's a formula here:    (1) Sales are up, meaning more people are buying houses now.

                                               (2) The average selling price is down, meaning houses are more affordable now.

                                               (3) Inventory is down, meaning there are less homes to choose from now.

                                               (4) Foreclosures are down, meaning there aren't as many steals to be had.

Do the math.  1+2+3+4 = market recovery!  Albeit gradual, woo hoo, I say!  Positive stuff for a change.  Gotta love it.

If all the noise you're hearing about housing has you totally confused, join the crowd. One day you'll read that owning a home has never been more affordable. The next day you'll see news that housing starts have plunged to their lowest level in half a century. After four years of falling prices and surging foreclosures, it's hard to know what to think. Even Robert Shiller and Karl Case can't agree. The two economists, who together created the widely followed S&P/Case-Shiller Home Price index, are right now offering sharply contrasting views of housing's future. Shiller recently warned that the chances were high for a further double-digit drop in U.S. home prices. But in an interview with Fortune, Case took a far brighter view: "The lack of new home building is a huge help that a lot of people are ignoring," says Case. "People think I'm crazy to be optimistic, but housing is looking like the little engine that could."

Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction (i.e. less new homes are being built). The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The result of this downturn has been quite a contrast from the traditional American approach of buying new houses, to a surge in renting. But the new affordability will gradually lure Americans back to buying homes. And the return of buyers will start raising prices in many markets this year.

Irrational seller expectations (i.e., overpricing) are the biggest problem I see in today's real estate market.  Buying a house today is hard work! On top of all the research and analysis about the market, buyers have to work overtime to separate the real estate gems from the junk, get educated about short sales and foreclosures and often put in multiple offers before they get even a single one accepted.  The last thing they want to add to their task list is trying to argue a seller out of unreasonable expectations on pricing.  In fact, there are so many other homes on the market, buyers don’t have to do this.  When they see a home whose seller is clearly clueless about their home’s value and has priced it sky-high, most often they won’t bother even looking at it.  If they love it, they’ll wait for it to sit on the market awhile, hoping the market will “educate you” into desperation, priming the pump for a later, lowball offer.

The good news is homes are selling...at least the ones whose sellers are aware of pricing for today's market.  Example: I have this great listing in the Northeast end of town.  A few months ago my seller called me and said "Nicole, at what price would you consider this home a steal?  Where do we need to be so that buyers cannot pass it up?"  I gave them my suggestions.  They lowered the price significantly, and as of last week, we are under contract. Woo hoo!  But I won't take all of the credit for that.  My sellers listened to my advice, and even though it means they will not make much money on this sale, they are getting their home sold.  They are moving on with their lives.  And while momentarily painful, this sale will one day be a thing of the past.

Last month the Pikes Peak region saw 21% fewer home sales than in February of 2010.  This market is completely price driven.  Spring/Summer are here...the busiest time of year for home sales.  Buyers are out there, but they're looking carefully at everything.  You say "we cannot afford to take less on this home."  Well, sometimes one has to choose between less or nothing.

 http://www.pikespeakrsc.com/stats/2011%20Stats/2-11stats.asp

Within the next 30 days the Army will decide whether it will send a brigade of soldiers to Fort Carson.  This brigade, consisting of approximately 2,800 soldiers would include pilots, mechanics, medics and a bunch of other specialists.  About 4,000 family members would be joining them, and that puts the number of incoming people at about 6,800-7,000.  Woo hoo I say!

Not only will this help our real estate market as a whole, but you folks with properties for sale in the Southern parts of town as well as Fountain Valley will surely benefit from this influx of potential buyers.

http://www.gazette.com/articles/springs-112320-fort-carson.html

There is one way to market your home on Super Bowl Sunday and it is not an Open House. Throw a party! What better way to have your friends and their friends see your home in a real life situation. You can show everyone how great your house is for entertaining. Of course, you need to stage it properly to show how the space in your home is best utilized. Invite friends, neighbors and co-workers to get the maximum amount of exposure on Super Bowl Sunday. And guess what, you don’t have to leave your home for your real estate agent to invite strangers into your home. Since Super Bowl Sunday can be a quiet time for the real estate market, why not stay in, enjoy yourself and try to sell your home at the same time.

In our business, the rule of thumb is 6 months of inventory = a buyers market; less than 6 months of inventory = a sellers market.  Today the average time on market is still over 6 months, and that is largely due to an increased inventory, meaning more houses are for sale.  Example: in December of 2009 there were 3,951 single family homes for sale in the Pikes Peak region.  In December of 2010 there were 4,327 single family homes for sale.  Inventory rose by 9.5% this year.

Buyers have more homes to choose from, and because of that they are being more selective and negotiating more heavily now.  I recently had a listing where I was the sellers agent.  After months on the market and $30,000 in price reductions, we finally got an offer on the house.  The offer was lower than asking price, by about 10%.   My sellers countered back with a reduced price of about 3.6%.  The buyers waited a few days, thought about it, and then decided to go forward with the purchase.  But wait, there's more.  At the time of inspection buyers asked for an additional $11,000 in home repairs!  Sellers countered back with an offer of $9,000 for repairs.  Buyers accepted.

My point is a home will sell at the right price and with some negotiation.  But sellers be prepared.  You're going to give something up in order to keep that buyer and make it to closing!