February 2012 Newsletter

The local real estate market is turning the corner.   January’s sales increased 3% over the same month last year, marking the 7th straight month of year over year sales increases.   And while sales are improving, home sellers are facing less competition.  The number of available homes—currently 3,156 listings– is down 27% from last January.   Less competition means better prices.  Sellers, on average, are getting 97% of asking price.   Market watchers think if this trend continues, it could mean some modest home price increases for the Pikes Peak region by the end of the year.   But for the time being, local home prices continue to show some weakness.   Last month’s median price (1/2 above, 1/2 below) of $172,500 was down 4.31% compared to January, 2011.  The average sale price was $204,814.

Nationwide, home prices dropped nearly 5% from 2010 to 2011, and according to CoreLogic, distressed sales are to blame.  The financial, property, and consumer information company says that if foreclosures are excluded, home prices have only dropped o.9%.  Click here to read the Feb. 2, 2012 report “Distressed Sales Undercut Home Prices in 2011″.

There’s no question that in the Springs, distressed sales are having a big impact on home prices.  Last month was a big month for bargain-hunters, who went on a buying spree and snapped up foreclosures.  Nearly 1 in 4 of the homes sold in January locally was a short sale or bank-owned property.

Home sellers, here’s the bottom line:  Home buyers these days are a cautious, careful bunch.  They’re taking more time to pick a property, and are making sure they stick to a budget they can afford.

Springs Jobless Rate Stuck at 9%

Home buyers have good reason to be cautious.   The local economy has a long way to go before most residents feel prosperous.  A Labor Department report released early this month shows that Colorado Springs-area unemployment remained at 9% in December, unchanged from November.Click here for the full story.

Pump Up Resale Value

Simple and affordable do-it-yourself projects can pump up resale value.   Here are 6 projects that average less than $500 apiece, but will increase your sales price by at least $1,500 , according to HomeGain’s annual survey of realtors™ .   1) Clean & declutter      2)Brighten with clean windows & new light fixtures     3) Stage by rearranging furniture & bringing in new accessories        4) Enhance landscape with a manicured lawn, new mulch & flowers        5) Repair electrical or plumbing    by fixing leaks, updating wiring, and replacing outlets that don’t work   6)  Replace or shampoo dirty carpets.

Sensational Pinon Valley Tri-Level

Curb appeal and smart-updates make our featured home a standout.     And it’s located in a great northwest foothills neighborhood near hiking trails, schools and shopping.   The 3 bedroom, 2 bath tri-level has warm decorator colors and too many upgrades to list.   We love the pride of ownership that is evident inside & out.

Skating Spotlight

Colorado Springs will be in the sports spotlight again this month, as the host of the 2012 ISU Four Continents Figure Skating Championships at the World Arena Feb. 9-12, 2012.   The world-known affair is an International Skating Union (ISU) sanctioned event that will feature 100 top figure skaters from North America, Asia, Australia and Africa.

January Newsletter

Our bold New Year’s p rediction for the Colorado Springs housing market is that the  recovery will continue through 2012, as demand outstrips supply, and  the number of foreclosures steadily decreases. The first half of 2011 saw weaker sales compared to the year before, but as the year went on, the housing market experienced significant improvement.   Home sales were up every month year-over-year from July 2011 through December, in some cases, by double-digits.  And by year’s end, the turnaround seemed clear.  December home sales were up just 3.5% over 2010 for a total of 651.  But we ended the year in positive territory, with a total of  8,459 homes sold , an  increase of 274 sales over 2010.

But while home sales increased, home  prices fell throughout 2011.  December’s median price of $185,000 was down 6.8% compared to that same month a year before.  Weak demand and a high percentage of foreclosures has been putting downward pressure on home prices for 12 straight months.    But we think that could change in 2012.   The current inventory of 3, 225 unsold homes represents just a 4 month supply of available properties.  A so-called “normal” or balanced market would typically have about a 6 month supply.    Not since the uncertain months immediately following the 9/11 attacks has the inventory been this scanty.  If home sales continue at their current pace, home prices will start to  inch back up.

The building industry is also bullish on residential construction in Colorado Springs.  Builder Magazine ranks Colorado Springs 7th on its list of Healthiest Housing Markets In  2012 , forecasting a big increase in new home construction this year due to expansion by local military bases and the return of troops from Afghanistan.  The builder report puts Fort Collins at #2, Denver at #10, and Greely rounding out the list at #20.  The Pikes Peak Regional Building Department reports a total of 1,399 new home permits pulled in 2011, a .4% drop from the total in 2010, but better than 2008 & 2009.

Foreclosure filings in El Paso County fell sharply in 2011 to 3,603, a nearly 25% drop from the year before.  According to Public Trustee Tom Mowle, the biggest reason for the decrease is a big improvement in the local jobless rate.

Featured Listing

2012 would be a great year to consider adding an investment property to your real estate portfolio, and our featured listing offers possibilities for single family or commercial tenants.   The 2 bedroom bungalow is centrally-located, recently updated, and zoned C-6. Call Marion Meyer for more details on this charmer, located at 122 Swope Ave.  Click here for more photos!

Grand Openings

What’s old is new again, as downtown gets ready for the 2012  rebirth of the historic Mining Exchange building as a Wyndham Grand boutique hotel.  The hotel’s webpage describes the property as “exquisitely renovated..rich in history, character and charm” with “extravagant amenities” for the sophisticated traveler.   In other downtown news, a new 3,000 sq ft Einstein Brothers Bagels cafe has just opened at the corner of Kiowa & Tejon St. This is the chain’s 5th location in the Springs.

December Newsletter

The Colorado Springs housing market continues to make strong gains. 646 single family homes sold in November, up 19.2% from the same month a year ago.  It was the 5th straight month home sales have increased compared to 2010.  The total number of homes sold in 2011 has outpaced last years, with 7,810 transactions so far this year— up 256 transactions from the total at the end of November, 2010.   The dwindling supply of unsold homes has some buyers scrambling.   There were just 3,666 unsold homes available at the end of November, a 35% reduction in inventory compared to 2010.  The new home market is showing similar improvement.  The regional building department reports the 2011 activity has increased for 5 straight months, as the number of permits pulled in November shot up 22% compared to that same month a year ago.   Other positive indicators are a slow-down in foreclosure activity and distressed home sales.  In recent  months the percentage of foreclosures and short sales has dropped to about 15% of homes sold.  At the bottom of the market in 2009, distressed property sales accounted for about 1/3 of the activity in our market.    As the foreclosure numbers drop, we can hope for some improvement in home prices.  But for now,  prices are still down.  The average sale price last month was $219,711, and the median price $185,000—a nearly 6% drop from 2010.

Attractive interest rates at or below 4%, bargain prices, and rising rents are bringing out the buyers.   But local economist Fred Crowley says the Springs economy is still “moving sideways” and needs thousands of new jobs and higher wages for a meaningful recovery.

Smart City

Men’s Health magazine has given us all a new reason to brag about  our hometown.  Colorado Springs is number 13 on their list of  “Top 100 Best Educated Cities”, beating out  Denver, at 50 and Aurora, at 70.  Click here to see the article in full. The list in the  October issue compares high school graduation rates & school enrollment .

Best of Old Broadmoor

Our featured home  this month is a rare find:  a completely updated smaller home in the Old Broadmoor .  This 2 bedroom, 2 bath mid-century rancher is just blocks from the Broadmoor Hotel, schools, trails and hiking.

The kitchen is a show-stopper, with slate floors, Viking appliances and custom cherry cabinets. We love the open floor plan  and wall of windows to enjoy the backyard and fantastic corner lot.

Free Parking & Downtown Freebies

Free Saturday parking is back  this December downtown, with no quarters needed on the 3rd, 10th, 17th or 24th.

The Tejon Street Holiday Stroll on Wednesday, December 7th promises food, wine, savings and great giveaways for shoppers, including a ski trip for 4 to Monarch.

Check out a complete calendar of fun downtown events at www.downtown80903.com!

Real estate data is based on information from the Pikes Peak REALTOR Services Corp and may not reflect all real estate activity in the market.  RSC does not guarantee or is in any way responsible for its accuracy.

November 2011 Newsletter

Outlook Brighter For Sellers

Local home sellers have a lot to be thankful for.  Sales these days are up. Way up.And in some cases the competition is gettin’ fierce.  Last month’s total of 758 homes is  20% higher than the same month in 2010.  And  it was the 4th straight month of increased sales.   As for fierce competition, we mean a return to multiple offers and back-up contracts in certain cases. That’s because the current inventory of 3,949 homes is down by almost 35% compared to October 2010.   Inventory hasn’t been this low since December 2005.  That’s almost 6 years.   As the economy in the Pikes Peak region continues to recover and the jobless rate (currently about 9.1% in El Paso County) improves, there’s reason to think that home prices will begin to recover.  But for now, prices are still trending downward. The median sale price (where 1/2 of the sales are higher, 1/2 lower )  of a single family home last month was $185,000.   That’s a 7.5% decrease from last fall.  Why? Distressed properties like short sales and foreclosures are still dragging down prices for the rest of the market.  The bottom line : buyers ARE back.  But only if the price is right.

Queasy.   That’s probably how sellers feel after riding the real estate roller coaster. The market plunged to the bottom in 2009.  Sped up in 2010, then down. Further down in 2011. Now up.  So far this year, 7,164 homes have sold in the Pikes Peak region.  It’s just a 2 % increase from last year, but the market is showing momentum.  We predict home sales will show measurable improvement by the end of the year.  But no. We are not taking bets just yet. If anyone needs a Maalox right now, it’s  realtors.

RE/MAX Wins Award

JD Powers & Associates 2011 survey finds RE/MAX customers report the highest level of customer satisfaction among the major brands.  But we won’t rest on our laurels.  Your satisfaction is our top priority.

Festival Of Lights Parade Returns

We hope you join us in downtown Colorado Springs for this year’s Festival of Lights Parade. We host an annual get-together and you’re invited!  The party starts at our office at 216 N Tejon St (click here for a map) at 5 pm, the parade begins at 5:50 pm on Saturday, December 3, 2011.  Ample parking is available in the garage behind our building (entrance on northbound Cascade Avenue).