June 12, 2017

Colorado Spring Market Update

 Selling your home? Get a free home valuation | Buying a home? Search all homes for sale on the MLS

 

What's going on in the Colorado Spring market?

  • Inventory levels are rising as we head into the summer months, but they have gotten lower over the last four years, driving prices up in the Colorado Spring market. 
  • The most popular price point for sales in recent months is $200,000 to $250,000. Inventory and sales by price points drop up after that when you go up in price. Above $700,000 and below $100,000, things really drop off.
  • The average number of days homes spend on the market is lowest in the price brackets with the most sales and increase as you go up in price point.
  • Average sales price from the beginning of the year up to now continues to rise like they have in recent years. Stagnation in February was likely due to a lack of inventory and traffic. 
"It's a great time to sell your house due to a need for inventory at all price points."

What does this all mean for you? It's a great time to sell your house due to a need for inventory at all price points in our market. The equity that homeowners are getting for their homes has allowed many to buy their next home in a higher price point. It's still early enough in the recovery of our market to buy a home and it's still smarter in most price points to buy a home rather than rent. 

I believe the market will improve overall this summer with continued growth in inventory, but we'll need a lot of inventory to start to burn price increases. 

If you have any questions or you're thinking of buying or selling a home, don't hesitate to give me a call or send me an email. I'm always happy to help!

 

Posted in Market Statistics
March 27, 2017

3 Key Things to Craft Into an Offer

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The real estate market in Colorado Springs is crazy right now, so I want to give you some tips and tricks on how to successfully navigate multiple offer situations.

Multiple offer situations are incredibly common, and there are three things you’ll want to either craft into an offer or look for as an incentive.

1. Escalation clause. This clause states that the buyer is willing to pay a certain amount more than any other offer the seller might have in their possession within a set time frame. This shows a buyer’s willingness to negotiate and shows the seller how much they are willing to beat other offers by.

2. Guarantee to pay a certain amount over the appraised value if the property doesn’t appraise. Multiple offer situations can drive up the price of a home, which means the home might not appraise. Buyers present an attractive price and the guarantee to the seller in hopes that after the home is appraised, that raised price caused by multiple offers can be negotiated back down. An offer with a guarantee is probably the best option for the seller, as it is already decided that an amount of money will be paid out of pocket by the buyer if the home doesn’t appraise.

3. Personal letter. The buyer will give details about who they are and why the seller’s home is the perfect fit for them. This helps the buyer’s offer stand out and it helps the seller differentiate between similar offers near the same net price.

 

"A personal letter helps the buyer stand out and helps the seller decide between similar offers."


These are just a few ways to structure an offer in order to make it the most attractive. If you’d like to learn more about multiple offer situations, or if you have any other real estate questions, please feel free to give me a call or send me an email. I’m always happy to help!

Posted in Buying
Feb. 8, 2017

Learn How to Take Advantage of the Market at Our Upcoming Webinars

 Selling your home? Get a free home valuation | Buying a home? Search all homes for sale on the MLS

 

Throughout the year, our team will be producing more and more content covering different topics about the world of real estate, and today I want to let you know about a couple upcoming webinars we’ll be hosting that offer great educational opportunities.

The first webinar will be on Wednesday, February 15th at 6 p.m. and will be about buying a home in the current market. We’ll explore both the process itself and what we’re seeing buyers and sellers experience in the current market so you know what to expect if you’re looking for a home now or anytime this year. To register for this webinar, click here.

 

"We’re in a very strong market right now, and we want you to capitalize on it."

The second webinar will be on Thursday, February 16th at 6 p.m. and will focus on investing in real estate. Investing in real estate, whether it’s long-term or short, provides a number of different ways to take advantage of our marketplace. We’re in a very strong market right now, and we want to review all the different ways we feel you can capitalize on it. To register for this webinar, click here.

If neither of those dates work for you, we will provide replays to you if you register after the fact. If you have any questions in the meantime, feel free to call, text, or email us. We would be happy to help, and we hope to see you soon!

Posted in Other
Dec. 20, 2016

Happy Holidays to You & Your Family

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Merry Christmas and a Happy New Year to you!

2016 has been an amazing year, and we look forward to more of the same in 2017. We hope that you and your family have a very blessed and happy time together. Enjoy the new year and this holiday season.

 

"We hope you have a happy, blessed time with your family"

 

We are grateful to everyone who worked with us in the past. We look forward to helping your family and friends in 2017.

As always, if you have any real estate questions, just give me a call. I would be happy to help you.

See you in 2017!

Posted in Other
Oct. 25, 2016

A Market Snapshot Heading Into the 4th Quarter of 2016

 Selling your home? Get a free home valuation | Buying a home? Search all homes for sale on the MLS

 

What are the some of the current market trends we’ve seen this past year up to September? What do they mean for us heading into the fourth quarter?

The first to note is that September saw lower inventory than at any point in the previous year. This is a similar trend to what we normally see over the course of a year, with slightly higher inventory during the summer months and a lower inventory heading into the fourth quarter.

We still had a high number of sales in the lower price points and we’re seeing some upward pressure on pricing compared to last year. There was also a slight dip in the average sales price from August to September. Homes in good condition are moving very quickly, but we’re seeing fewer multiple offer situations than we did during the summer. Overall, we feel that the market is staying very stable.

Active inventory during September and throughout the whole year was substantially lower than where it’s been the last couple of years. When we look at sales by price points, our largest group of sales was in the $200,000 to $250,000 range. Sales dropped off as we got higher in price, and  some of the biggest drops we saw were between the ranges of $500,000 to $600,000 and $600,000 to $700,000.



The market is staying very stable.


 

When we look at the list-price-to-sales-price ratio, we’re seeing a fairly consistent trend. That trend is that in the lower price points, sales are far closer to 100% of asking price, if not over. Looking at the number of days to sell by price point, everything under $300,000 is sitting at an average of under 30 days on market. That number climbs as we get higher in price.

Historically, there have been fewer days on market than in previous years. The only exception is in the higher price ranges of $800,000 to $900,000 and anything over $1 million. For the average sales price, we peaked a little bit during the summer and began to drop off in August.

What does all this mean for you if you’re looking to purchase or sell your next home? Overall, it’s a great time to sell in the lower markets, especially if you’re going to be moving up to a higher price point. We’re still early enough in the recovery to buy and feel safe about it, but we’re cautioning people to be prepared to act quickly if you see something you like.

Over the next month or two, we don’t foresee any drastic changes that might upset the stability we’re seeing. Less inventory during the fourth quarter is good news for both buyers and sellers. For sellers, it means there is less competition. For buyers, it means you’re less likely to encounter multiple offer situations.

These stats and trends impact each home in each neighborhood a little differently, so if you have any questions, please feel free to email me or give me a call so I can give you an assessment of your specific situation. I look forward to helping you!

Posted in Market Statistics
Oct. 10, 2016

Is Owning a Home Cheaper Than Renting One?

 Selling your home? Get a free home valuation | Buying a home? Search all homes for sale on the MLS

If you’re wondering whether it’s a better financial decision to rent a home or buy one, I’ve got some information I’d like to share with you. Today I’d like to go over some of the advantages that buying a home in our market offers over renting.
 
The biggest advantage that homeownership offers over renting property is the fact that over time, you are making an investment into that property. Though owning a home comes with regular maintenance and costs, the financial benefits outweigh the risks over a reasonable period of time; you’re more than likely to see at least a minimal return on investment over the years.
 
In Colorado Springs, we generally see a 5% to 7% increase in home appreciation each year. Historically, we have been a very stable market to invest into and have only shown negative appreciation during a few short periods of time.  
 
As an example, let’s look at a home with a $200,000 to $210,000 purchase price on a $200,000 loan. With 5% appreciation per year, staying in the home for three or four years would make it very easy to accumulate up to $35,000 in equity. This can make a world of difference on your next home purchase, especially when it comes to saving for your next down payment.

 


Our market is a very stable one to invest in.


 

Another advantage to owning a home is the tax write-off that you get from the interest that you pay on your mortgage. Since a lot of the interest is front-loaded to be paid at the beginning of a 30-year mortgage, for those first three to five years on that same loan at 4.5% interest, you’d be paying $8,000 to $9,000 in interest per year.
 
This interest that you would be paying can be deducted from your overall income, which can lower the amount of income that you have to pay taxes on at the end of the year. This can also either be adjusted monthly by getting you more money from each paycheck, or can get you a better tax refund each year. This can mean between $100 and $200 per month in total savings.
 
The third biggest advantage to owning a home is the living stability that homeownership offers. You won’t have to move every six months to a year after your lease is up; you can stay in your home forever. Also, if you struggle financially while renting, your landlord can evict you. While there are repercussions to not paying your mortgage on time, you won’t find yourself in a situation where you’ll be kicked out of your home immediately like you will while renting. You will also have time to correct any financial hardships.
 
If you are paying rent each month in the following ranges, check out some of the homes that you can afford to purchase for a similar monthly payment:

$750 / month or under: http://www.sellingthesprings.com/homesunder130k/
$900 / month or under: http://www.sellingthesprings.com/homesunder160k/
$1050 / month or under: http://www.sellingthesprings.com/homesunder190k/
$1200 / month or under: http://www.sellingthesprings.com/homesunder215k/
$1400 / month or under: http://www.sellingthesprings.com/homesunder250k/
$1700 / month or under: http://www.sellingthesprings.com/homesunder300k/
$2000 / month or under: http://www.sellingthesprings.com/homesunder350k/
Over $2000 a month: http://www.sellingthesprings.com/homesover350k/

Posted in Buying
Aug. 30, 2016

What Makes a Great Deal?

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One of the most common topics we seem to come across with buyers and sellers is the idea of what makes a great deal in a real estate transaction.

Most people would say that a great deal for a buyer is the lowest possible purchase price and a great deal for a seller would be the highest possible sale price, but it’s more complicated than that.

For buyers, in addition to the purchase price, you’ve also got to look at the type of financing you’re doing and the amount of capital you have available. With today’s rates, it makes more sense to spend an extra $10,000 or $20,000 on a home up front instead of buying a discounted home with hopes of renovating it cheaply.

Depending on how long you stay, you can pay less out of pocket with the initial investment than if you put money into the home. In the end, you want a comfortable payment.

 


A good deal is more than a good price.


 

For sellers, a lot of times getting the highest possible price might require some investment to improve or renovate certain areas that will bring you more money. Those things are all important to consider, as are your long-term goals for the house and where you want to go next.

The homes with the best deals are complicated transactions, like short sales, and can take longer. If your buyer is transitioning to a new area, those timing factors can impact both sides heavily in terms of moving costs, costs for transitional housing, and other factors that can make a deal not as great as you initially thought.

If you have any questions for us, don’t hesitate to reach out and give us a call or send us an email. We look forward to hearing from you.

Posted in Buying
Aug. 16, 2016

What July Market Stats Mean Going Forward

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What’s been happening in the market through the end of July?

  • Active inventory in 2016 is considerably lower than it’s been in the previous years. This has been a driving force in how homes have been priced and how quickly they’ve been moving off of the market.
  • As far as sales by price point, the $150,000 to $300,000 range has accounted for the largest grouping.
  • In most of the price points under $400,000, properties have been selling very close to asking price, if not over. This is common in multiple offer situations and circumstances where buyers want sellers’ concessions to be paid.
  • For the average number of days to sell, most homes listed under $250,000 are averaging less than a month on the market. Many of them are being taken off within the first week if they’re priced appropriately.
  • Like active inventory, our average days on market for 2016 has also been much lower than it’s been in the previous years. This is certainly a positive sign for our market going forward.
  • From January to the end of July, the average sales price rose by 10%. I think we will see this stabilize or at least improve by the end of the year.

Overall, I think it’s a great time to sell.



What does all this mean for you going into the latter half of the year? Overall, I think it’s a great time to sell, especially in the lower-price range markets. I also believe we’re still early enough in this market recovery to be buying. Historically, we’ve averaged 5% to 7% appreciation per year, so seeing numbers in the 10% range bodes well for sellers. However, since they aren’t far exceeding what we’d normally expect, buyers are still safe to avoid any peak price ranges. 

If we can answer any questions you or anybody you know might have about your home's value or what’s going on in your neighborhood, please give us a call or shoot us an email. We would be happy to help you!

Posted in Market Statistics
June 23, 2016

Check Out Our New Video Blog

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We are reaching out to you today to let you know about some exciting content that we’re going to be bringing your way. We are launching a brand-new video blog, and will provide you with the content twice a month via email. We’ll have tips on buying and selling, market updates for Colorado Springs and the surrounding areas, as well as other real estate topics.

The purpose of this first post is to ask you, our viewers, what questions you have that you’d like to see us answer in some of these videos. Whether it’s a question about your specific neighborhood, the market as a whole, or any changes you’re hearing about in the news, we are here to listen. We want you to be as up-to-date as possible. Check out our site for a lot of great resources including a full MLS home search and an instant home valuation - for free.

If you have any questions, don’t hesitate to let us know! We look forward to hearing from you!

Posted in Other
June 21, 2016

The Latest Colorado Springs Real Estate Market Numbers

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So far, 2016 has been a good year for real estate. Here are the current market trends so far this year, through the end of May: 

The biggest trend this year is low inventory. In fact, inventory is lower than it has been in almost 20 years. This trend is causing a high number of sales in the lower price points, upward pressure on pricing, and fewer days on market for properties. 

Homes in good condition are moving quickly, especially homes priced under $250,000. If you’re shopping in that price point, odds are you’ll be up against multiple offers. Overall though, the market is beginning to stabilize, especially in those lower price points. 

As I mentioned, active inventory levels are lower than they have been in 20 years. Let’s break that down by price point. Homes in the $150,000 to $300,000 price range are really moving, while sales for homes priced above $500,000 are slow. 

If you look at list-to-sales price ratio, you will also see that homes in the $150,000 to $300,000 range are getting 100% of the list price, or very close to it. As prices go up, that list-to-sales price ratio drops. Homes in the $150,000 to $300,000 price range are selling much faster than those higher priced properties as well. 

Finally, the average sales price has jumped from $251,744 in January to $275,471 at the end of May. That is a 9.4% increase! On a monthly basis, home prices are increasing by 1.5% to 2% in our market as a whole. 

What does all this mean for you? Well, it’s a great time to sell in lower markets and move up into a higher price point because you can get more equity out of your current home. If you are buying in that hot market range, be prepared for multiple offer situations. 

Overall, the market is stabilizing, and I predict that we will have a strong, healthy market for the remainder of the year. If you have any questions, please don’t hesitate to reach out to me. I would be happy to help you!

 

Posted in Market Statistics