CSREJ - November

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Vol. 11 No.3

November 26, 2018

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More buyers reach for ARMs in high-priced markets

Americans shift their perceptions of the current housing market For the past five quarters, the majority of Americans said their housing markets were overheating. Now, in the fourth quarter, 75 percent of Americans say their local housing market is starting to cool, according to ValueInsured’s Q4 2018 Modern Homebuyer Survey. Homeowners in California, Colorado, Texas, and Washington are most likely to say their local market is starting to cool off.

The survey “revealed some concerning evidence about the changing psychology of the housing market,” says Robert Shiller, a housing economist. “We will be watching these

numbers as they unfold over the future.”

Seventy-two percent of Americans and 78 percent of “urban residents” say home prices are still too high. Urban homeowners blame “flippers and speculative investors” and “wealthy transplants from more expensive housing markets” for inflating their local home prices to unsustainable levels, according to the report.

Some home buyers may hit the pause button to see what happens in the housing market.

Fifty-nine percent of interested home buyers (which includes first-time and move-up buyers) say they plan to wait for a “meaningful correction” before they buy. Fourteen percent say they plan to not buy at all until a correction occurs.

Several markets are seeing home prices slow. ValueInsured’s report notes that the fastest drops in home prices have been happening in Seattle, and North Texas has seen some of its largest sales declines in seven years.

“Buyers have switched from ‘hoop jumpers’ to bargain-hunter mode,” says Joe Melendez, CEO and founder of ValueInsured. © National Association of Realtors. Reprinted with permission.

For example, the ARM share is highest in metros like San Jose, which had the highest average sales price. San Jose had the largest share of ARMs in 2018, according to CoreLogic.

ARMs accounted for 51 percent of the dollar volume among mortgages of more than $1 million that were originated during August 2018. Among mortgages in the $400,001 to $1 million range, the ARM share was about 21 percent, and in the $200,001 to $400,000 range, ARMs accounted for just 7 percent of the mortgages.

ARMs Continues | Page 2

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Jay Gupta's October Housing Stats

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© Value Insured

As mortgage rates rise, more buyers in expensive metros are turning to adjustable-rate mortgages to curb costs.

But the potential savings between a fixed-rate mortgage and an adjustable-rate mortgage is narrowing. The average rate on the 30-year fixed-rate mortgage and 5/1 adjustable-rate mortgage have both jumped by about 70 basis points from August 2017 to August 2018, according to Freddie Mac. ARMs, however, still do typically offer a slightly lower initial interest rate that then rises after a set period, such as five or seven years.

ARMs are more common in expensive metros and among home buyers who are borrowing larger balances on their mortgage loans, according to CoreLogic, a real estate data firm. “As ARMs have a lower initial interest rate than [fixedrate mortgages], buyers see bigger monthly savings in the initial payment, especially for bigger loans,” CoreLogic notes on its Insights blog.

National News............ Page 2 Local News................ Page 4 On the Move.............. Page 8 Local Expert.............. Page 10 Around the Corner....... Page 11

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ARMs from 1 As of August 2018, ARMs comprised about 15 percent of the dollar volume of conventional single-family mortgage originations. The ARM share has remained relatively stable since 2010, but has risen in some geographic areas and at certain higher price points.

ARMs earned a bad reputation during the housing crash when homeowners faced resets from their initial interest rate and could no longer afford their monthly payments. The ARM share was more than 50 percent during mid-2005 but then dropped to a low 4 percent in early 2009. Stricter underwriting requirements from lenders in recent years may have dis-

couraged ARM volume from taking off again, CoreLogic notes. © Copyright National Association of Realtors.

Reprinted with permission.

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Colorado Springs Real Estate Journal LLC (CSREJ) is locally owned and operated out of Colorado Springs, Colorado. CSREJ is published once a month and distributed through USPS, digitally, or by hand to nearly all members of The Pikes Peak Association of Realtors® and The Colorado Springs Housing & Building Association and many other industry-related professionals.

CSREJ is not responsible for any opinions or facts expressed by non-staff writers. CSREJ shall not be held responsible for any errors in advertising or editorial content.

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November 26, 2018

National News

Survey: Consumers’ highest-rated lenders Quicken Loans ranks highest in Additional findings from this survey: customer satisfaction for the ninth • Satisfaction improves with consecutive year, according to the digital integration newly released 2018 U.S. Primary More customers are using digital Mortgage Origination Satisfaction Survey. Customers overall are hap- and mobile channels to connect with lenders. Customers use an average pier with their mortgage lender this year compared to last year, and a lot of 3.1 different channels during the of that is attributed to lenders’ use of mortgage process, with the phone mixing in more digital interactions in leading at 72 percent, followed by websites (69 percent) and email (58 the process, according to the survey, percent). which is based on responses from more than 5,000 customers with new • Representatives are still mortgages or who have refinanced key players within the last 12 months.

Only 3 percent of mortgage cus“The mortgage marketplace is tomers say they rely only on digital changing rapidly as traditional players self-service channels in the originaand new digital-native entrants ramp tion process. Customer satisfaction is up their digital and mobile offerings,” says John Cabell, financial services highest among customers who spoke with their lender in person or over the practice lead at J.D. Power. “While phone when applying for a mortgage, improved digital offerings are helping followed by those who used a commortgage originators build customer bination of personal and self-service satisfaction, it is important to find the right balance between digital self- tools. Consumers say that representaservice offerings and personal interac- tives provide the greatest value by following up after initial inquiry and also tion with a representative. Technology alone is not a magic bullet in this mar- confirming loan terms and payment. ket; the key is knowing where to lever- • Fast replies are critical age it and where to layer in more traSatisfaction is also highest among ditional forms of one-on-one support.” customers who received contact Quicken Loans, Fairway Indewithin one day of their inquiry. Satpendent Mortgage, The GuildGenuine.

Mortgage, The Original. isfaction drops the longer customers and Mr. Cooper scored the highest have to wait for a response. in customer satisfaction in this year’s survey. Mr. Cooper had the greatest © National Association of Realtors. Reprinted with permission. year-over-year improvement.

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November 26, 2018

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Local News

Housing affordability at its lowest ever for Colorado markets With a continuation of the typical seasonal slowdown across most of Colorado’s local housing markets in October, overall affordability appears to be taking center stage as median housing prices continue to increase fueled by reduced inventory, an uptick in interest rates, and the median income of potential homebuyers, according to the latest monthly market trends data from the Colorado Association of REALTORS® (CAR).

The Housing Affordability Index across Colo-

rado is at its lowest point since the Association began tracking this measurement in January 2010.

The index is a measure of how affordable a region’s housing is to its consumers based on interest rates, median sales price, and median income by county.

Overall, affordability is down 18 percent from a year ago for single-family homes and down 20 percent for condos/townhomes when looking at both the seven-county metro area and statewide markets.

Colorado Springs/Pikes Peak Area “Many local REALTORS® believed our market had shifted in June and now, October shows it may have. Listings increased more than 11 percent overall from last year and sold properties decreased.

Days on market ticked up, but remain below 30 and are a far cry from any concern for our market. Our year-over-year median home prices continue to increase across the board and overall inventory does remain historically low.

“Buyers seem to be showing some fatigue but this may not be the time to sit back and wait to get back in the buying mood as inventory is improving. With the threat of interest rates seeing two more increases soon, affordability does not appear to be getting better anytime soon.

“On the flip side, sellers who did not sell mid-year may be regretting that decision as the heat of one of our hottest selling seasons has, like the weather, turned colder. Gone are the days of testing the upper price points however, when homes are priced right, they are selling.

“Nationally it’s all good news. Unemployment is low, wage growth appears to be happening, and homebuilder confidence is great. Now that the elections are wrapped up and the holiday season is underway, I would expect it to remain slower through the end of the year,” said Colorado Springs-Area REALTOR® Patrick Muldoon. © Copyright Colorado Association of Realtors. Reprinted with permission.

GOT NEWS? Let us know!

josh@csrej.com HBI FORT CARSON RIBBON CUTTING October 22, 2018 @ Fort Carson Training Center

HBI is a national nonprofit that provides training, curriculum development and job placement services for the building industry. With overall program job placement rates at over 85 percent for graduates, HBI training programs are taught in local communities across the country to at-risk youth, veterans, transitioning military members, high school students, justice-involved youth and adults, and displaced workers. Visit www.hbi.org for more information.

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Colorado Springs Real Estate Journal

November 26, 2018

Local News Ent offers Lock & Shop mortgage rate protection Ent Credit Union’s new, free Lock & Shop rate protection program allows members to lock in their mortgage loan interest rate right away and then shop for their home.

The innovative program allows borrowers to submit a mortgage loan application, lock in that day’s interest rate and then house hunt. Typically, a borrower is required to have a home under contract before they can lock in their interest rate. In contrast, Lock & Shop provides a full 90 days of rate lock protection: 60 days to house hunt and 30 days to close.

“It’s a great program. If rates go up, they get their locked, lower rate. If rates go down, we’ll give them the lower rate. All at no cost,” said Darrell Noble, Ent’s Vice President of Mortgage Lending.

“Given the movement we’ve seen in interest rates, this is a real, financial benefit to members. Altogether, Lock & Shop, our easy application process and $500 Mortgage Closing Guarantee provide borrowers with real advantages in Colorado’s competitive real estate market.”

RE/MAX Properties, Inc. held their 5th annual Power Up Symposium on October 25 On October 25, 2018, RE/MAX Properties, Inc. agents enjoyed an exclusive day of education and inspiration brought by three national and local speakers at the 5th annual Power Up Symposium. The event, held at The DoubleTree by Hilton on Thursday, October 25, was a chance for RE/MAX Properties, Inc. to empower and celebrate their agents for a job well done during the peak season, while helping them plan and gear up for the new year. The day was enriched by three exceptional speakers, an expert agent panel and more than 45 local industry related business vendors.

The Power Up Symposium ended with a truly amazing guest speaker. World-renowned climber, photographer, filmmaker, philanthropist, and inspirational speaker; Jake Norton gave The first guest speaker, Sharran Srivatsaa, a moving and passionate speech CEO of Kingston Lane, presented to RE/ about how to overcome the MAX Properties, Inc. agents innovative Everest in all our lives. Through ideas for providing superior client support his experiences of conquering and marketing as well as ways to continue Mount Everest three of his seven to generate business in today’s real estate attempts, he mesmerized the market. audience by relating his experiences to everyday challenges and successes. He was met with a standing ovation, truly a once in a lifetime opportunity to hear from someone who can teach agents to turn fear and adversity into opportunity and success!

“We value ongoing education,” said Martha Marzolf, Broker Manager with RE/MAX Properties, Inc. “We’re held to a high standard and have some of the top agents in town, so we’re continuously providing excellent education tools and resources that will allow agents to do bigger and better things.” The event is also followed up with a series of beneficial continuing education classes. RE/ MAX Properties, Inc. is committed to providing its agents — and in turn, its clients — with leading-edge education, technologies and resources. With five convenient locations in Colorado Springs, and 32 years conducting business in the Pikes Peak Region, the company is consistently striving to make each, and every clients’ real estate dreams become a reality.

November 26, 2018

Colorado Springs Real Estate Journal www.csrej.com

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HBA POLITICAL ACTION COMMITTEE CAR BAR September 8, 2018 @ George Hess' Car Bar

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Colorado Springs Real Estate Journal

November 26, 2018

November 26, 2018

Colorado Springs Real Estate Journal www.csrej.com

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On the Move

Phillips, Sowanick Pink Realty Seay Phillips: An Army brat from Texas, Seay earned her undergrad and graduate degrees in Special Education. Seay loved working as a special education teacher in North Carolina but ultimately found her passion in Real Estate when she and her husband bought and renovated their first home. Seay has moved all over the country and knows first-hand how important finding the perfect home for your family can be.

Teresa Sowanick and her family moved to Colorado 5 years ago to enjoy the wealth, health, and beauty of the state. She and her husband of 27 years have four children and two grandchildren. She enjoys working with her husband on his custom homes, climbing the incline, listening to classical music, keeping up with science, teaching, and continuing education. She worked on a whale rescue mission in the Florida Keys, ran an aftercare program, is a licensed substitute teacher, and studied medicine.

Diaz, Harda, Dinegar Bingham, Butherus RE/MAX Properties John Diaz has joined RE/MAX Properties, Inc. John chose RE/MAX Properties, Inc. because of the company’s brand recognition and amazing educational opportunities. John is fluent in Spanish, habla perfectamente el español, and can help his Spanish speaking clients understand the contracts needed during a real estate transaction.

Kay Harada chose RE/MAX Properties, Inc. because of the company’s reputation in the marketplace, the educational opportunities, and convenience of the company’s five locations in Colorado Springs and Monument. Kay works with integrity and is always continuing her education in the real estate industry to make sure her clients are updated on current laws and practices.

Robert Dinegar has joined RE/ MAX Properties, Inc. Robert is excited to work for a company that is trusted and recognizable in this real estate market.

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Tanya Bingham has joined The Wheaton Team at RE/MAX Properties, Inc. Tanya is committed to providing clients with exceptional service and communication throughout their transaction. Tanya is excited to have the opportunity to work with John and Jean Wheaton. “They are tremendous people and professionals,” says Tanya.

Micki Butherus has joined RE/ MAX Properties, Inc. Micki chose RE/MAX Properties, Inc. because of the stellar reputation, approachable staff, and excellent training programs.

Micki is passionate about improving the lives and experiences of the people around her and has been committed to exceeding client expectations for 20 years. As a professional sales representative and account manager is both the medical and construction industries, she has worked with a variety of people from all walks of life.

Her experience coupled with her enthusiasm and ability to build and leverage relationships, will be front and center in her real estate career.

Victor Horton Structure Real Estate Group Victor grew up in Cambridge MA, & then joined the Army in 1977, where he served for 24 years. During his service, he deployed 4 times overseas to Bosnia, Macedonia & Kosovo.

He has also been stationed in Germany, Seneca Army Depot N.Y., Redstone Arsenal AL., & Ft. Carson, CO. Vic planned on becoming a Real Estate professional upon retiring from the Army. Instead he became a Sales Manager & later a Dealer Development Rep in the automotive industry where he earned a tremendous name for himself & a loyal following. He is excited about this new chapter in his life, the people he will help & the joy it will bring. As a veteran, he understands the sacrifices military families make for all of us, for that he will always be grateful. He is a dignified veteran, an appreciative realtor, & promises to always help his clients & fellow veterans find the perfect home.

Goodwin, Ankeney, Conner Hake, Rayburn, Johnson Keller Williams Partners Kelly Goodwin is a former professional bike racer who married into

this crazy Air Force life in 2011. Since then she, her wife and 2 daughters have moved 6 times, bought and sold 6 houses and had two children. Never a dull moment at the Goodwin Casa.

They love everything about Colorado - hiking, camping, mountain biking, rafting, beer drinking, sunshine, etc.

They even wish to retire here someday when the time comes. Kelly is very excited to join the KW team and we look forward to working with her.

Aimee Ankeney: As a Colorado Springs native and second-generation Realtor, Aimee has vast knowledge and ties with the Colorado Springs and Monument community. She has spent years building these relationships to help clients in their real estate transactions. Aimee has a passion for land, development, new construction and commercial real estate. She lives on land in Monument with her three amazing daughters and their little Menagerie.

Alicia Conner: Colorado has been Alicia’s home since December of 2017 when her and her husband received orders to report to Fort Carson. In 2012 she received her A.A.S. in Veterinary Technology and worked as a Veterinary Technician for 9 years. Although being a Veterinary Technician was a rewarding career Alicia felt as if something was missing. For years she had wanted to work in Real Estate and finally that dream came true. She enjoys meeting new people, volunteering and helping out in the community. Working in Real Estate will allow her to continue to make a difference by helping families and individuals find the home of their dreams. She strives to make the process of buying or selling a home as smooth as possible. During her free time Alicia and her husband and I love to travel and spend the majority of our time outdoors. We love trying new restaurants, our dogs and exploring the beauty of Colorado and everything it has to offer.

Jake Hake is a native of the Colorado Springs area, so has seen it all. He is married to the wonderful woman, Chris who is working with him as a Transaction Coordinator. Together they have four kids from 15 up to 23.

Jim believes that everyone should have the opportunity to buy or sell a home and understand the process along the way. KW Partners is very excited to bring him on board with us!

Jan Rayburn is an ambitious gogetter who loves helping clients find their Dream Home! Jan’s expertise and knowledge in New Home Construction and all facets of the Real Estate world have taken her all over the country with her last stop being COS. Jan and her husband a local COS Licensed Residential Builder.

Gary Johnson spent the 20 years in the AF where he retired a Master Sargent. After he retired he held a number of positions in business and technology fields such as Director of

Colorado Springs Real Estate Journal

the Project Management Office for a regional bank. But, after 15 years in Chicago Gary decided it was time for another change and decided to bring his family to beautiful Colorado. They have been here now for one year and love everything about this area, thus he started his RE career. He is looking forward to starting a new journey with Keller Williams and helping his clients love Colorado just as much as he does!

Chacon, Gardner, Quick Synergy Realty Group Brisa Chacon: I am a proud Spanish speaking Army Veteran of eight years and spent several tours overseas in support of our freedoms and values. Being brought up in a traditional family environment, I believe that family and relationships are the most important facets of our lives. I cherish values such as loyalty, respect and integrity from both my upbringing and military service. Anyone who will trust and allow me to be of service to them in a real estate transaction will see how much those values bleed into my work ethic and level of service! Now that my military service has come to an end, the next chapter of my life revolves around helping my community in Colorado.

Barbara Gardner: After raising three (fabulous) grown children, I have relocated to Colorado Springs to be close to dear family members that I have been visiting for decades. We have loved skiing and spending holidays in our second home and now I'm here to stay. I have years of personal and professional real estate experience in various places and vastly different housing markets. I even had a stint as restaurant owner in tropical Polynesian kingdom of Tonga. I am a Realtor in the state of Florida, excited to join Charles D'Alessio and the Synergy Team. A problem-solver by nature, with the heart of a servant, I am always eager to search for options and creative ideas for my clients.

Michael Quick: I Grew up in the great state of Oklahoma and then spent 10 years in Annapolis, MD. While in Maryland I got really lucky and met my beautiful wife and we have 2 children together. We decided we wanted a change from the east coast hustle and moved the family to Colorado in 2013! Once in Colorado, I helped build a successful plumbing company and at the beginning of 2018 I sold my ownership to my partners and entered into real estate. I absolutely love helping people find their homes and I get a special satisfaction helping people who didn’t believe they could buy a home of their own.

November 26, 2018

Local Stats COLORADO SPRINGS AREA

Colorado Springs AreaSales Analysis Housing Stats Dashboard and COMPILED AND ANALYZED BY:

Housing Stats Dashboard and Sales Analysis

JayCompiled Gupta, BME MA MRE and analyzed by: CRS CMRS SRES CDPE

2008 ,PPAR 2010 REALTOR® of the Year Jay Gupta BMEChairman MA MREand CRS CMRS SRES CDPE

CARChairman Research Committee Southeast Region ® of theSpokesperson Year 2008 PPAR and 2010 REALTOR With over 2-BillionSoutheast in personalRegion and managed sales CAR Research Committee Spokesperson With over 2-Billion in personal managed Berkshire Hathaway Home and Services Rockysales Mountain, REALTORS® Berkshire Hathaway Home Services Rocky Mountain, REALTORS® For comments & questions, please contact: JayKGupta@gmail.com For comments & questions, please contact: JayKGupta@gmail.com www.ColoradoSpringsHomesAndStats.com www.ColoradoSpringsHomesAndStats.com

Housing Stats Dashboard

Single Family/Patio Homes Sold Through Pikes Peak MLS New Listings Active Listings Monthly Sales YTD Sales % of Active Listings Sold Monthly Sold Volume YTD Sold Volume Median Price Average Price % of List Price Received Average Days on Market Months' Supply % of Sold Listings … Sold in 0 to 30 Days … Sold in 31 to 60 Days … Sold in 61 to 90 Days … Sold in 91 to 120 Days … Sold in 121+ Days

October 2017 1,320 1,939 1,431 13,878 73.8% $453,788,020 $4,352,390,604 $280,538 $317,112 99.3% 29 1.4 months

October 2018 1,349 2,374 1,320 13,417 55.6% 456,416,691 4,671,249,303 305,000 345,770 99.4% 31 1.8 months

68.2% 15.7% 9.1% 2.9% 4.1%

68.3% 18.0% 6.4% 3.1% 4.2%

Sales Analysis

Change 2.2% 22.4% (7.8)% (3.3)% (18.2)% 0.6% 7.3% 8.7% 9.0% 0.1% 6.9% 28.6%

YOUR

COLORADO

SPRIN GS RESOURCE

0.1% 2.3% (2.7)% 0.2% 0.1%

Single Family/Patio Homes Sold Through Pikes Peak MLS October 2017 October 2018 % of Total Months % of Total Months Price Range Monthly Supply Monthly Supply Sales Sales Under $199,999 11.7% 0.7 months 5.7% 1.2 months $200,000 to $299,999 45.6% 0.6 months 41.1% 0.9 months $300,000 to $399,999 23.3 % 1.5 months 30.8 % 1.7 months $400,000 to $499,999 11.3% 2.0 months 11.7% 2.8 months $500,000 to $599,999 4.7% 2.9 months 5.4% 3.7 months $600,000 to $799,999 2.7% 4.7 months 3.4% 4.6 months $800,000 to $999,999 0.5% 14.7 months 1.0% 8.6 months $1,000,000 to 0.2% 37.3 months 1.1% 7.1 months $1,999,999 Over $2 million 0.1% 33.0 months 0.0% Infinite Disclaimer: This representation is based in whole or in part on information from the Pikes Peak REALTOR® Services Corp. (“RSC”) or its PPMLS for the period of October 2017 and 2018. Content is deemed reliable; however, neither the RSC nor the PPMLS nor PPAR nor Jay Gupta guarantees or is in any way responsible for its accuracy. Data maintained

by RSC does not reflect all real estate activity in the market. © Copyright Jay Gupta. All rights reserved. Unauthorized reproduction is prohibited.

Jay Gupta’s Observations and Remarks In the Colorado Springs area housing market, the year-over-year single-family home sales activity in October 2018 saw a 22.4 percent increase in active listings, a 32.7 percent increase in months supply of inventory, a 9 percent increase in average price ascending to $345,770, a 8.7 percent increase in median price climbing to $305,000, 2.2 percent increase in new listings, and a 7.3 percent increase in the year-to-date volume, while there was a 3.3 percent drop in the year-to-date sales. Year-over-year in October 2018, there was over 22 percent increase in the sale of single-family patio homes priced over $500,000, while there was over 10 percent drop in the sale of homes priced under $500,000. In this market, any improvement in the supply of homes is highly appreciated by buyers as it eases the pressure for making instantaneous decisions.

Unprecedented Supply and Demand Imbalance (Single Family/Patio Homes) • • •

Oct 2018: Oct 2008: Oct 1998:

Active Listings 2,374 Sales 1,320 Listings Sold 55.6% Months’ Supply 1.8 Active Listings 5,841 Sales 649 Listings Sold 11.1% Months’ Supply 9.0 Active Listings 3,662 Sales 754 Listings Sold 20.6% Months’ Supply 4.9

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‘Price Segmented’ Supply and Demand Analysis • 89.2% of Single Family/Patio Homes Sold in Oct 2018 were Priced Under $500,000: The exceptionally low inventory in this price range is providing an excellent opportunity to list and sell properties as there are plenty of buyers ready and willing to buy.

•

8.8% of Single Family/Patio Homes Sold in Oct 2018 were Priced Between $500,000 and $800,000: There is a great opportunity for buyers and sellers to buy and sell in this price range with a great supply and demand situation.

COLORADO SPRINGS, CO 80903

October 2018 Sales Analysis By MLS Areas Compiled by Jay Gupta Single Family/ Patio Homes

MLS Area

# of Months' # of Sold Supply Active Listings Listings

Sales Volume $

All Real Estate Market Activity is 68 28 2.4 17,137,800 173 91 1.9 36,737,731 77 87 0.9 23,220,756 73 92 0.8 25,344,513 240 214 1.1 59,787,395 16 9 1.8 3,789,000 111 34 3.3 11,799,956 101 93 1.1 31,064,770 157 41 3.8 21,326,448 60 39 1.5 17,258,075 37 18 2.1 6,333,300 144 117 1.2 34,596,507 42 66 0.6 15,713,077 134 52 2.6 20,881,764 154 55 2.8 29,996,938 31 32 1.0 14,110,186 64 30 2.1 11,289,500

Median Price $

Average Price $

SP to Avg. List DOM %

"Local" 519,250 390,000 244,000 258,447 275,000 385,000 341,350 309,500 460,000 405,000 338,750 293,000 234,950 351,000 489,000 327,950 341,000

612,064 403,711 266,905 275,483 279,380 421,000 247,057 334,029 520,157 442,514 351,850 295,696 238,076 401,572 545,398 440,943 376,316

97.6 99.3 99.6 99.7 99.5 98.1 100.1 100.3 98.9 98.2 100.7 99.9 100.7 98.8 99.1 99.7 98.5

•

2.0% of Single Family/Patio Homes Sold in Oct 2018 were Priced Over $800,000: It is an opportune time for buyers to buy in this price range as there is a wide selection of properties to choose from and there are motivated sellers.

•

A Comparison of Oct 2018 Sales Data with Previously High Record Setting Oct 2005 • Active Listings are down by (45.3)% • Months’ Supply is down at 1.8 from 3.9 months in 2005 • Monthly Sales are up by 17.4% • YTD Sales are up by 19.7% • Monthly Dollar Sales Volume is up by 67.9% • YTD Dollar Sales Volume is up by 71.1% • Average Sale Price is up by 43.0% • Median Sale Price is up by 48.3%

•

Historically Low-Interest Rates: During the 2005-2006 record-setting real estate market, the interest rates were hovering around 6%. The current historically low rates (in the 5% range) are providing financially qualified home buyers an incredible opportunity to stretch their buying power and lock-in the low rates for 30-years. It is important to keep in mind that every 1% increase in the interest rate reduces the borrowing power by 10% for the same amount of monthly payments.

In recent months, interest rates have started to move upward and additional small increases are anticipated in the coming months.

Black Forest Briargate Central East Fountain Valley Manitou Springs Marksheffel Northeast Northgate Northwest Old Colorado City Powers Southeast Southwest Tri-Lakes West Woodland Park

•

Note: It is important to keep in mind that even in a hot real estate market with low inventory, not every property listed for sale will sell as buyers generally buy realistically priced properties offering competitive values.

Disclaimer: This representation is based in whole or in part on information from the Pikes Peak REALTOR® Services Corp. (“RSC”) or its PPMLS for the period of October 2018. Content is deemed reliable; however, neither the RSC nor the PPMLS nor PPAR nor Jay Gupta guarantees or is in any way responsible for its accuracy. Data maintained by RSC does not reflect all real estate activity in the market. © Copyright Jay Gupta. All rights reserved. Unauthorized reproduction is prohibited.

November 26, 2018

Colorado Springs Real Estate Journal www.csrej.com

59 51 17 21 29 12 47 22 41 28 30 16 13 27 51 21 28

9

Local Expert Active Listings Losing Activity The number of active listings in the Pikes Peak Multiple Listing Service (PPMLS) dropped in October 2018 for the first time in eight months. Last month saw 2374 listings on the market, down from this year’s high of 2449 from the month before – but significantly more than the decades-low of 1229 By Michael Podoyak Manager in February of this year. Our peak was a little later in the year Executive Empire Title — than normal and quite a bit less than the peak in previous years: 2366 in July 2017; 2780 in July 2016; 3409 in July 2015; 4233 in June 2014; and, 4251 in August 2013.

Empire Title of Colorado Springs

5755 Mark Dabling Blvd., Ste 110, Colorado Springs, CO 80919 Phone: (719) 884-5300 - Fax: (719) 884-5304

www.etcos.com

Active Listings 8,000

7,000

6,000

5,000

Empire Title of Woodland Park 350 N. Pine St., Woodland Park, CO 80863 P.O. Box 9004, Woodland Park, CO 80866 Phone: (719) 686-9888 - Fax: (719) 686-8208

2374 3,000

2,000

1,000

0

Oct-18 Jul-18 Apr-18 Jan-18 Oct-17 Jul-17 Apr-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jul-14 Apr-14 Jan-14 Oct-13 Jul-13 Apr-13 Jan-13 Oct-12 Jul-12 Apr-12 Jan-12 Oct-11 Jul-11 Apr-11 Jan-11 Oct-10 Jul-10 Apr-10 Jan-10 Oct-09 Jul-09 Apr-09 Jan-09 Oct-08 Jul-08 Apr-08 Jan-08 Oct-07 Jul-07 Apr-07 Jan-07 Oct-06 Jul-06 Apr-06 Jan-06 Oct-05 Jul-05 Apr-05 Jan-05 Oct-04 Jul-04 Apr-04 Jan-04 Oct-03 Jul-03

www.empirewp.com

4,000

Empire Title of Canon City

1220 Main St., Canon City, CO 81212 Phone: (719) 275-4900 - Fax: (719) 235-5029

www.empirecanon.com



Easy Seller Net Sheets



Quick Buyer Estimates

 

Useful Comparisons

The eight months of increases in the number of homes listed in PPMLS surely sprung from the incredible spring our market experienced. Buyers were plentiful and hungry in the early part of the year when inventory was at an uncharacteristic low. As a result, sales prices escalated to consecutive monthly records and the percentage of listings that sold reached unprecedented highs. In October, 55.6% of the listings on the real estate market sold that month. Though that was a bump up from the month before, it was still a significant drop from our all-time peak of 89.8% in March 2018. That drop of over 34 percentage points happened over just a seven-month period and brought us in line with a ratio not seen since August 2016.

Sales as a % of Active Listings 100.0%

55.60%

90.0% 80.0%

Rent vs. Buy

70.0% 60.0%

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40.0% 30.0% 20.0% 10.0% 0.0%

Oct-18 Jul-18 Apr-18 Jan-18 Oct-17 Jul-17 Apr-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jul-14 Apr-14 Jan-14 Oct-13 Jul-13 Apr-13 Jan-13 Oct-12 Jul-12 Apr-12 Jan-12 Oct-11 Jul-11 Apr-11 Jan-11 Oct-10 Jul-10 Apr-10 Jan-10 Oct-09 Jul-09 Apr-09 Jan-09 Oct-08 Jul-08 Apr-08 Jan-08 Oct-07 Jul-07 Apr-07 Jan-07 Oct-06 Jul-06 Apr-06 Jan-06 Oct-05 Jul-05 Apr-05 Jan-05 Oct-04 Jul-04 Apr-04 Jan-04 Oct-03 Jul-03



50.0%

Obviously, selling 90% of the homes on the market each month is not realistic nor sustainable. Selling half of the homes on the market each month isn’t practical either, considering the historical average falls within the 12%-27% range.

The trend is supporting that fact, as active listings over the previous 12-month average has been steadily declining since April of this year.

Sales as a % of Active Listings Previous 12 Month Average 90.0%

72.11%

80.0% 70.0%

Doreen Hussmann 719-499-6301

Brian Miller 719-440-2942

Laura Petrosky 719-640-1185

60.0% 50.0% 40.0% 30.0% 20.0% 10.0%

Wanda Abramson 719-822-3424

Lori Wollaston 719-686-9888 Woodland Park

Michael Podoyak 719-884-5333 Executive Manager

WE DON’T SUCCEED UNLESS YOU DO!

Aug-18 May-18 Feb-18 Nov-17 Aug-17 May-17 Feb-17 Nov-16 Aug-16 May-16 Feb-16 Nov-15 Aug-15 May-15 Feb-15 Nov-14 Aug-14 May-14 Feb-14 Nov-13 Aug-13 May-13 Feb-13 Nov-12 Aug-12 May-12 Feb-12 Nov-11 Aug-11 May-11 Feb-11 Nov-10 Aug-10 May-10 Feb-10 Nov-09 Aug-09 May-09 Feb-09 Nov-08 Aug-08 May-08 Feb-08 Nov-07 Aug-07 May-07 Feb-07 Nov-06 Aug-06 May-06 Feb-06 Nov-05 Aug-05 May-05 Feb-05 Nov-04 Aug-04 May-04 Feb-04 Nov-03

0.0%

We certainly can’t complain that our real estate market activity right now is better than twice the historical average. The best we can do is to actively take advantage of it and enjoy the repercussions that brings.

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Colorado Springs Real Estate Journal

November 26, 2018

Around the Corner

HBA Holiday Party 5p-9p @ Great Wolf Lodge www.cshba.com Behind the Scenes at Lending 9a-12p @ Legacy Title asalladay@legacytitle-llc.com

Probate 9a-10a @ Legacy Title asalladay@legacytitle-llc.com

YPN (Young Professionals Network of Realtors) 3p-4p Meeting @ PPAR (board room) 4p-6p Social @ Red Martini (downtown) 719-633-7718 | mvanmetre@ppar.org WCR Holiday Auction 10:30a-2:30p @ The Antlers www.ppwcr.org

2018 ACU 9a-1p @ Sellstate Alliance Realty asalladay@legacytitle-llc.com

’18 & ’19 Real Estate Contracts 9a-1p @ Empire Title rsvp@etcos.com 719-884-5300

2019 Strategic Business Planning 10a-12p @ Legacy Title asalladay@legacytitle-llc.com

Monday, December 17 2018 ACU 9a-1p @ Legacy Title asalladay@legacytitle-llc.com

Wednesday, December 12 ’18 Annual Commission Update 9a-1p @ Empire Title rsvp@etcos.com 719-884-5300

Send us your event info! josh@csrej.com

November 26, 2018

Deadline

Thursday, December 13 Farm and Land 8:30a @ The Egg and I - Chapel Hills Charlie Triplett: 719-896-1777

Thursday, December 6 ’18 Annual Commission Update 1p-5p @ Empire Title Woodland Park lori@empirewp.com 719-686-9888

Tuesday, December 11 Avoiding Aggravations of Home Inspections 9a-11a @ Legacy Title asalladay@legacytitle-llc.com

UPCOMING DEADLINES

Tuesday, December 18 CTMeContracts Beginner 2p-4p @ Legacy Title asalladay@legacytitle-llc.com

Dec 18, 2018

Dec 31, 2018

Jan 17, 2019

Jan 28, 2019

Feb 14, 2019

Feb 25, 2019

Mar 14, 2019

Mar 25, 2019

Apr 18, 2019

Apr 29, 2019

May 16, 2019

May 28, 2019

Jun 13, 2019

Jun 24, 2019

Jul 18, 2019

Jun 29, 2019

*EVENTS SUBJECT TO CHANGE Due to limited space, please check with event and class holders early for more detailed information on cost, CE credits, sponsors and registration dates.

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Vol. 9 No. 5

January 30, 2017

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Builders pick up the pace this winter Housing production nationwide edged up 11.3 percent on a seasonally adjusted basis in December due to a surge in multifamily construction, the Commerce Department reported this week. Multifamily production – often viewed as volatile month-to-month – surged 57 percent to 431,000 units in December.

Single-family starts, on the other hand, fell 4 percent to a seasonally adjusted annual rate of 795,000 units. But builder sentiment remains high for the single-family market’s outlook.

“Despite the slight dip in singlefamily production, December’s rate

Friday, January 25 - Sun 27 HBA Home & Graden Show Chapel Hills Mall Event Center www.cshba.com Tuesday, January 29 HBA Breakfast with the Builders 8:30a-11a @ Chapel Hills Mall Event Center www.cshba.com

Distribution

is still the fourth highest single-family pace since the Great Recession, and single-family starts also posted solid gains for the year,” says Granger MacDonald, chairman of the National Association of Home Builders. “Builders remain confident and we expect further growth in the single-family market in the year ahead.”

Across the country, combined single and multifamily housing production increased 31.2 percent in the Midwest; 23.5 percent in the West; and 18.5 percent in the Northeast.

The South was the only major region to post a loss, dipping 1.4 percent last month.

"This report represents firm growth for housing in 2016, as single-family starts rose 9 percent and multifamily production was down slightly," says Robert Dietz, NAHB’s chief economist. "We expect that 2017 will be another year of gradual, steady improvement in the housing market.

Multifamily starts have been volatile in recent months, but should level off as supply meets demand. Meanwhile, single-family production continues to gain momentum but is limited by supply-side headwinds."

Single-family permits – a gauge of future construction – increased 4.7 percent to 817,000 units in De-

America’s 10 healthiest housing markets What makes a healthy housing market? According to SmartAsset, it is one that shows stability, affordability, and in which homeowners are able to easily sell their homes with a low risk of losing money over the long run.

The healthiest housing market in the country: Edgewood, Ky., a suburb of Cincinnati. Homes in Edgewood

Call Rachelle // 719.439.0773 rachelle@csrej.com

spent an average of 56.3 days on the market, significantly less than the national average of 169.6 days.

Indeed, seven of the top 10 markets in the U.S. are located in towns within the Midwest region, including three markets that are in Michigan.

To determine the healthiest housing markets in the country, SmartAsset took into account factors like

the percentage of homeowners with negative equity; the average time a for-sale home spends on the market; affordability as the monthly cost of owning a home (and as a percentage of household income in each county and city); among other factors.

HBA Board Installation

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HELPFUL TIP: Check the license status of your mortgage broker at the Colorado Division of Real Estate’s website.

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Chad Denny

cember. That is the highest level in 2016. Multifamily permits, however, dropped 9 percent to 393,000 units, the Commerce Department reports. © Copyright National Association of Realtors.

Reprinted with permission.

Trump puts a halt to FHA mortgage cuts Just hours after being sworn in, President Donald Trump moved to suspend a plan to reduce the Federal Housing NAR officials Administra“disappointed” tion’s mortgage insurance premiums that was set to go into effect on Jan. 27. The plan had been announced just a few days ago by the outgoing Obama administration and Housing and Urban Development head Julian Castro.

The reduction in premiums by 25 basis points, or a quarter percentage point, “has been suspended indefinitely,” according to an FHA news release.

See FHA | 5

See Healthiest Markets | 5

Festival of Lights

National News ........... Page 2 Local News ............... Page 7 On the Move ............. Page 13 Local Expert ............. Page 14 Around the Corner ...... Page 15

Sharon Ballinger

Will Michaloski

Marianne Elep Turner

(719) 331-2750 chad.denny@academy.cc

(719) 380-1778 debbie.havens@academy.cc

(719) 491-2500 sharon.ballinger@academy.cc

(719) 232-7553 will.michaloski@academy.cc

(719) 264-1952 marianne.elepturner@academy.cc

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Debbie Havens

Mobile Issue (Beta)

Wednesday, December 5 eContracts – Intermediate 2p-4p @ Empire Title rsvp@etcos.com 719-884-5300

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Colorado Springs Real Estate Journal www.csrej.com

11

e m o H

s y a d i l o H e h t r fo

For this holiday season, anyone who purchases one of our select inventory homes* will receive a move-in gift from us!

Incredible buyer incentives plus...

*

PICK ANY TWO: • side-by-side refrigerator • blinds ** • washer/dryer

Call (719) 382-9433 to be directed to the appropriate Sales Specialist. *For select inventory homes that can close by December 31st, 2018 with use of seller’s preferred lender, Pentrust. **Blinds per plan See your Sales Specialist for the inventory list and promotional details.

E

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