The real estate market on the east side of Colorado Springs tends to be very consistent in relation to the greater Colorado Springs Real Estate market. Interestingly enough the east side broke with the ranks in the month of May, at least in terms of the number of sales.
The EAS (east) MLS area actually showed fewer sales for the month of May then in had in April. On the other hand the median sales price rose to $166,000. That’s the highest we’ve seen this number since September of 2008. My hunch is the slowdown in sales has something to do with the elevated median sales price.
Our market has become extremely price sensitive and we are noticing a strong correlation between price and activity. In other words, buyers are looking for value and they know a deal when they see one.
When prices climb outside of a buyers perceived value range, buyers tend to ignore rather than deal, there’s just too much inventory out there right now. If you’re selling your home the best advice we can give you is to price well, stage well and market aggressively…or just give us a call
I am working on market statistics for May of 2009 and am pleasantly surprised to see some positive activity in the Central or Downtown Colorado Springs area. The Downtown Colorado Springs real estate market was actually one of the hardest hit at the end of 2008 and into the first quarter of 2009. At one point there was a whopping 11 months of inventory and the median sales price had fallen from a high median sales price of $166,500 in June of 2008 to a low of $102,450 in January of 2009 that’s a 33.6% decrease, clearly a buyers market.
As of the end of May, downtown Colorado Springs have taken back a good portion of those losses, take a look at the chart below
Additionally, the area has seen four consecutive months of positive sales growth. This is great news for sellers and the market in general. Central Colorado Springs offers a wide range of homes and prices. This area is a great barometer for city wide market health. (see chart below).
In January of this year our local MLS system redrew the boundary lines for the Black Forest area. I think the boundry change was actually a good thing as the old boundaries included much of the area we think of as Falcon. Falcon lays outside of the clay basin responsible for Black Forest’s abundance of Pine trees so it doesn’t actually feel like Black Forest and properties in this area don’t command the same prices as home in Black Forest proper. The real Black Forest tends to be a combination of 2.5 to 35 acre properties some older, some new, some extreme luxury and some on wheels! That’s what makes Black Forest interesting as well as challenging for a Realtor.
As I’ve been working on Market statistics for Black Forest over the past couple of months I have had a difficult time establishing any kind of pattern for the new “Black Forest”. Here is a 16 month look at the level of sales activity in the Black Forest area. Notice the change in volume From December of 2008 to January of 2009. Some of this was market driven but most of this decline had to do with the reorganization of MLS areas, moving homes in a lower price point out of the area in a market that is extremely price sensitive creates the illusion that the bottom had actually fallen out. In reality this is just a true reflection of the kind of activity level Black Forest should expect to see in this type of economy.
The next chart is even more dramatic as we see what happens to the Median Sales price. Moving Black Forest into it’s own area has really created a drastic, median sales price from month to month. Look how relatively consistent the area was until January of 2009 and then notice the swings after the first of the year.
My hunch is the drastic fluctuations we see are shifts between sales in the older sections of Black Forest on the down swings and new luxury communities on the upswings.
Here is a map of the new MLS area for Black Forest. It’s still a large MLS area but better represents the real Black Forest.
New Black Forest MLS area
We’ll be keeping an eye on the trends for the Black Forest area as they develop. I know we will begin to see some trends develop and these charts will even out but for the time being it’s really kind of interesting to watch.
I’m working on sales statistics for the website for the month of May. So far “Briargate” is looking great for the first part of the year. The median sales price for Briargate in May was $379,000. That’s up 4.2% from May of 2008. While the number of sales was down by 7 actual sales, those are number we can live with.
Photography is a vitally important element in the effective marketing of real estate. In a market flooded with inventory a good photograph can often make the difference between showings and no showings. We have a few hard and fast rule when it comes to pictures, especially front pictures.
Sun on the front of the house-East facing homes get front photos in the morning west facing in the afternoon
Don’t make the garage the focal point
Shoot at a flattering angle
No Snow-if possible
If it’s not possible to get sun on the front of the house-shoot it at dusk
Now the dusk shot requires some additional lighting and a lot of timing. There is about a 15 minute window where the house is surrounded by a warm glow. If the front is lit properly it actually looks GREAT!
Now, since this requires so much setup and timing we normally reserve it for Luxury Listings and North facing homes as they get little light on the front of the home, especially in the winter months.
As we were preparing to send out Seller Marketing reports and noticed an interesting trend in the web traffic statistic. We have 2 very similarly priced listings, in close proximity. One faces east and had a morning photo and the other faces north and had a dusk shot. When I compared the traffic levels of these two properties, the one with the dusk shot had received 40% more traffic then the one with the full daylight shot.
The comparison also translates to showing activity only not as dramatically, only about 15% more traffic into the house.
We think this is a remarkable statistic and have actually started doing more dusk shots on our listings. We are now watching to see if too many dusk shots on a page has the opposite effect by attracting viewers to the full daylight photos.
The Commerce Department reported a spending increased 0.3% in March, 2009. This is the best showing since a similar rise in September. Economists surveyed by Thomson Reuters expected spending to drop 1.5%.
Given the amount of construction we are seeing here in El Paso County on our local Military bases this comes as no surprise. Although any good news is great news these days, here in the residential market, we are looking for the single family months of inventory to fall. Once we see a decline in these numbers, we should begin to see new construction pick up.
The Colorado Springs Regional Building Department building permit activity report is out for April of 2009. There were 13 total Single Family permits pulled for the month of April. Although this is not a very impressive number it’s only 3 fewer then April of 2008.
Home builders are for the most part taking a wait and see posture. There aren’t a lot of inventory homes in the market place for relocating buyers to choose from. That give the resale market an opportunity to work some of the existing inventory.
We will definitley keep an eye on the single family building permit numbers. We feel like they are a great indicator of market health.
The numbers are in for the Colorado Springs Real Estate Market for March of 2009 and the news is fairly promising. Total Active listings are up to 5,042. Additionally, the number of sales for the month are up as well from 504 in February to 566 in March. As a matter of fact this is the first time since the Summer (May-July) of 2008 the we have seen two consecutive months of positive growth in the number of homes sold.
The median sales price is up to $185,000 and the Listing Discount is down to 3.4%
Now before we uncork the champagne, let’s be clear that a lot of this uptick in the market can be attributed to a normal seasonal upswing, in addition to pent up demand from the horrible winter months. Hey, we will take it!
Fort Carson is starting to move troops in from Killeen and defense based jobs are bringing in relocation buyers. It looks like we might have a decent summer after all.
If you are a Home Buyer work with a good Agent, someone that knows the market, previews listings and understands financing. There is a lot of inventory still in the marketplace and lots of wild marketing schemes. Use a pro to cut through the confusion! If you’d like some help, give us a call at 888-611-5935 or Click Here
If on the other hand, if you are a Home Seller, this might actually be a good time to sell. Make sure you get into the market before school starts (like NOW), make sure you are priced correctly and marketed aggressively. We can help here as well Click Here.
If you’ve been standing on the sidelines, waiting to get into the market, now is the time but remember to be realistic and prepared.
More Good News for the Colorado Springs Real Estate Market and economy. We have seen two consecutive months of positive growth in the single family permit category. There 100 Single Family permits pulled for the month of March, that’s up from 79 in February and 70 in January.
Residential construction and more importantly single family home starts is a vitally important number to watch. As many of us know the housing industry creates jobs in our community. Even national builders that build in the Pikes Peak region create some work locally.
Refinancing a Fannie Mae or Freddie Mac Loan
This one is for those homeowners in good standing
The following criteria is needed to refinance your home to a more affordable fixed rate loan:
1. Property must be owner occupied.
2. The Borrower must have enough income to qualify for the new mortgage debt.
3. Borrowers cannot owe more than 105% of their home’s current value on the 1st mortgage.
Question…what if “I” have a 2nd mortgage?
That is probably okay because the general consensus is that the payment on the 1st
will come down, making the 2nd more affordable. Many feel like the 2nd mortgage will subordinate to the new 1st mortgage, soooooooo if you have 2 mortgages do not be scared away. Go for it!
Question: How do “I” know if I have a Fannie or Freddie loan?
Answer: If your original loan balance was $417,000 or lower and your loan is NOT an FHA or VA loan, then chances are that it is a Fannie or Freddie. AND to go even a step further, if your loan fits the above criteria AND is a 30 year fixed loan, chances are excellent that you have a Fannie or a Freddie.
The best place to start is with your lender so that they can do a “fast track” refinance. If you have questions, two good sites are or give us a call, we can put you in touch with a reputable lender:
Home builders are for the most part taking a wait and see posture. There aren’t a lot of inventory homes in the market place for relocating buyers to choose from. That give the resale market an opportunity to work some of the existing inventory.