PRSRT STD US POSTAGE PA ID PERMIT 745 COLO SPGS CO
Vol. 3 No. 3
November 22, 2010
www.csrej.com
Forbes:
Colorado Springs #6 for Investors Denver comes in at #8
The Forbes article took information gathered by Cary, N.C.-based Local Market Monitor (LMM). They analyzed markets with populations over 400,000 on a variety of factors, including historic population growth, job growth, housing price changes and the mix of jobs in an area, using data through Sept. 1. Colorado Springs came in so high mainly due to it's long term jobs predictions and population growth. 1. Raleigh-Cary, North Carolina 2. McAllen-Edinburg-Mission, Texas 3. Austin-Round Rock, Texas 4. Nashville-Davidson-Murfreesbor, Tennessee 5. San Antonio, Texas 6. Colorado Springs, Colorado 7. Albuquerque, New Mexico 8. Denver-Aurora-Broomfield, Colorado 9. Springfield, Missouri 10. Indianapolis, Indiana See the article in its entirety at forbes.com
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Big deficit of new single-family homes will need to be addressed as economy improves Annual single-family housing production in 2008 and 2009 fell about one million units short of the housing that would be needed in a normally functioning economy, suggesting that builders will have a lot of catching up to do as the economy improves and household formations return to trend levels, according to a special study by NAHB’s Housing Economics. With builders remaining cut off from the financing they need from banks to renew production and the marketplace not performing as well as originally expected, 2010 is likely to add another one million units to the growing deficit of single-family housing, according to the report, “Extent of Underbuilding in the Single-Family Housing
Market,” which was prepared by NAHB economists Robert Denk and Paul Emrath. The report finds that there was an excessive amount of singlefamily building from 2003 through 2005, but overbuilding largely ended by 2006 and the subsequent downturn was severe enough to more than offset those annual surpluses.
“As a result, the singlefamily housing market in the U.S. currently finds itself in a significantly underbuilt state — in the sense that excess or pent-up demand for new construction exists, compared to the long-term trend we would see if housing, labor and credit markets were functioning normally and generating a normal rate of household formations,” the report says. The analysis used building permits for single-family homes rather than housing starts because they are based on a much larger sample and provide more geographic detail, which enabled the analysis to be extended to the state level. Both
See Deficit page 6
Third quarter metro area home prices hold during post-credit sales decline Fully half of metropolitan areas tracked in the third quarter continued to show modest home price increases from a year ago, despite a sharp decline in home sales after the deadline for the home buyer tax credit, according to the latest survey by the National Association of REALTORS®. In the third quarter, 77 out of 155 metropolitan statistical areas1 (MSAs) had higher median existing single-family home prices in comparison with the third quar-
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ter of 2009, including 11 with double-digit increases; two were unchanged and 76 metros showed price declines. In the third quarter of 2009 only 30 MSAs experienced annual price gains. The national median existing single-family price was little changed at $177,900 in the third quarter, down 0.2 percent from $178,200 in the third quarter of 2009. The median is where half sold for more and half sold for less. Distressed homes, typically sold at
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discount, accounted for 34 percent of third quarter sales, up from 30 percent a year ago. Lawrence Yun, NAR chief economist, said relatively flat home prices have been the hallmark of the 2010 housing market. “Even with swings in home sales, prices this year have been changing very little from year-ago readings. Areas with some larger swings in home price reflect the degree of dis-
See Third Quarter page 4
National News.................. Page 2 Local News...................... Page 8 On the Move.................... Page 13 Local Expert.................... Page 14 Around the Corner............. Page 15
HELPFUL TIP:
www.dora.state.co.us/ real-estate/index.htm
EX 20 PE 3K RT
Check the license status of your mortgage broker at the Colorado Division of Real Estate’s website:
Honest & Ethical Service from People You Know. 5333 Nor t h Union Blvd. Suite 100, C olorado Spr ings, C O 80918
Wally Roy
Aric Ulmer
Sharon Higashi
(719) 229-5003 wally.roy@academy.cc
(719) 439-7413 aric.ulmer@academy.cc
(719) 491-2500 (719) 440-1082 sharon.higashi@academy.cc bev.creswell@academy.cc
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