Average rent continues to rise in Springs

from Colorado Springs Business Journal | by Cameron Moix | February 28, 2014

Average apartment rent rose in the Colorado Springs metro for the 16th consecutive quarter (year over year) at the close of 2013, according to a report released Friday by the Colorado Division of Housing and the Apartment Association of Southern Colorado.

The report indicated that the average rent for Springs residents rose $9 (or 1 percent) to $799 compared to the same quarter of 2012. Although the year-over-year rate has increased for 16 straight quarters, the report specified that average rent is down from $830 during the third quarter of 2013.

To read the rest of the article at the Colorado Springs Business Journal click here.

The Mortgage Market Is About To Get Smaller

from PropertyManager.com | by Marc Courtenay | February 27, 2014

As 2014 begins a bureau created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, The Consumer Financial Protection Bureau (CFPB), will set new rules concerning mortgages. Lenders will be required to verify and inspect borrowers’ financial records. The rules discourage lenders from allowing borrowers to carry total debt payments totaling more than 43 percent of the person’s annual income.

To read the rest of the article click here.

Year in Review: Real Estate

from The Colorado Springs Business Journal | December 27, 2013 | by Marija B. Vader

If someone put a home on the market in Colorado Springs, chances are good it sold within two months.

As of the end of June, single-family homes spent an average of 62 days on the market, the lowest number since June 2006, when the Pikes Peak Association of Realtors started keeping records.

The total number of active listings was extremely low at 3,450, said Fred Crowley, associate director of the Southern Colorado Economic Forum. He compared that number with around 6,000 active listings in June 2010.

“The available homes for sale decreased 40 percent over three years ago,” Crowley said. “These numbers are just mind-boggling.”

To read the rest of the year in review click here.

2014 Housing Outlook: Home Prices Head Higher

from MSN.com | November 19, 2013 | by Pat Mertz Esswein

Home prices will rise in 2014 but at a slower, more steady pace compared with historical trends.

The housing recovery has pushed up home prices nearly everywhere. In the past year, home prices rose in 225 of the 276 cities tracked by Clear Capital, a provider of real estate data and analysis. (See how home prices are shifting in 276 metro areas.) Prices nationwide increased  by 10.9 percent, pushing the median price for existing homes up by $30,000, to $215,000. For people who have waited to sell their home or refinance their mortgage, that's good news. (Bing: How are interest rates looking this week?)

Rising home prices in Seattle enabled Mike and Kristin Litke to refinance their first mortgage last summer and pay off a second mortgage that had an 8.2 percent interest rate. The Litkes, who bought their three-bedroom, 1.5-bath home for $512,500 in 2007 at the peak of Seattle's housing market, had used the second mortgage to avoid paying private mortgage insurance. In 2010, just as home prices in the area hit a trough, they refinanced their first mortgage to a 30-year fixed rate of 4.375 percent but were stuck with the second mortgage because they didn't have enough equity to do a "cash-out" refi.

To read the rest of the article click here.

Colorado Springs Homes Appreciate 8.2%

from the Colorado Springs Business Journal | posted by Amanda Miller | June 4, 2013

Colorado Springs home prices climbed 8.2 percent year-over-year in April, according to analysis firm CoreLogic .

They rose 2.1 percent from March to April. Excluding the distressed sales, short sales and bank-owned properties, sales prices climbed 7.1 percent year-over-year.

The sales price increases are good news for the rebounding real estate industry. While the figures in Colorado Springs are strong, they trail the national average, where home sales prices increased 12.1 percent year-over-year.

Nationally, April saw the biggest year-over-year home price increase since February 2006, according to the report. However, the national home price index is still 22.4 percent below its 2006 peak.

Home prices climbed 3.2 percent nationally from March to April.

For more on this, the full article can be found at the Colorado Springs Business Journal by clicking here.

NAR: More Real Estate Pros Optimistic About Home Values

Published by RealtorMag | December 18 2012 | In The Daily Real Estate News Section

More real estate professionals are optimistic about the direction of home prices, according to a fourth-quarter survey by HomeGain of more than 200 practitioners and brokers. 

Sixty-five percent of real estate professionals say they expect home values to rise in the next six months, up from 51 percent in the previous quarter.  In the fourth quarter of 2011, only 15 percent of practitioners said they expected home prices to rise. 

“We are seeing a continued increase in optimism about the direction of home prices,” says Louis Cammarosano, general manager of HomeGain. “Real estate agents expect the recent pick up in the real estate market to continue in the coming two years.”

Indeed, the optimism in home values increases even more the further the outlook: Seventy-nine percent of real estate professionals and 62 percent of home owners say home values will likely increase in the next two years, according to the survey. Eleven percent of real estate practitioners say they expect home values to fall in the next six months. 

Here are the 10 states where real estate professionals are most confident about rising home prices over the next six months: 

1. Idaho
2. Michigan
3. Arizona
4. Texas
5. Indiana
6. California
7. Florida
8. Virginia
9. North Carolina
10. Colorado

The following are the top states where homeowner confidence about home values over the next six months is highest: 

1. Arizona
2. Nevada
3. Texas
4. Colorado
5. Wisconsin
6. Washington
7. Michigan
8. Virginia
9. Massachusetts
10. Tennessee

Read more at: http://ow.ly/gcKHB

ColoradoRealEstateNews: Colorado Apartment Vacancies at 4.6%

Published by ColoradoRealEstateNews.com | November 15 2012 | Written by John Rebchook

The overall apartment vacancy rate for Colorado fell to 4.6 percent in the third quarter, the lowest it has been since the first quarter of 2001, when the vacancy rate stood at 4.3 percent, according to a report released today by the Colorado Division of Housing.

In the third quarter of 2011, the overall vacancy rate stood at 5 percent for the state.

Demand for rental units continued at high levels in Colorado during the third quarter, and demand was especially strong in northern Colorado.

The vacancy rate fell year over year to 2.1 percent from 2.2 percent in the Fort Collins-Loveland area for the third quarter, although it rose to 3.1 percent from 1.8 percent in Greeley from the third quarter of 2011.

A vacancy rate below five percent is generally regarded by industry observers as a sign of a tight market.

The vacancy rate dropped by half in Grand Junction, falling to 3.8 percent in the third quarter from 7.7 percent in the third quarter of 2011.

The metro Denver vacancy rate during 2012’s third quarter, released last month in a separate survey, fell year over year to 4.3 percent from 4.9 percent.

“Northern Colorado vacancies are at the low levels we saw back in the late ‘90s,” said Ron Throupe, a professor of real estate at the University of Denver’s Burns School of Real Estate and Construction Management, and the report’s author. “The strong employment in the region is helping drive that, and statewide, a lack of new construction is also an important factor.”

Rents headed up as vacancy rates declined.

The statewide average rent in Colorado increased 5.1 percent from 2011’s third quarter to 2012’s third quarter, rising from $898 to $944, which is a record high.

Across the state, the average rent increased in all metro areas except Grand Junction. The average rent in the Fort. Collins-Loveland area, for example, increased 7.3 percent, year over year, while the average rent in Pueblo grew 8.4 percent. During the same period, the average rent in Colorado Springs increased only 1.1 percent, although it reached a new all-time high during the third quarter. The average rent fell 2.6 percent in Grand Junction, year-over year.

“This is the second quarter in a row in which the average rent grew all along the Front Range and by fairly sizable amounts in most cases,” said Ryan McMaken, an economist with the Colorado Division of Housing. “Demand is strong enough to the point that even in markets where unemployment is still above eight percent, as in Pueblo and Colorado Springs, landlords were still able raise rents.”

Average rents in all metropolitan areas measured were:

• Colorado Springs; $787.
• Fort. Collins/Loveland, $1,024.
• Grand Junction, $638.
• Greeley, $693.
• Pueblo, $587.

The metro Denver average rent, measured in a separate survey, was $986 during the third quarter.

Read more on ColoradoRealEstateNews: http://insiderealestatenews.com/2012/11/colorado-apartment-vacancies-at-11-year-low/

CSBJ: Denver Investment Company Buys COSprings Apartment Buildings

Published by the Colorado Springs Business Journal | November 8 2012 | Written by Amanda Miller

Denver-based BMC Investments recently bought two Colorado Springs apartment properties.

BMC paid $4.2 million for 148-unit Timberlane Apartments at 3985 E. Bijou St. and $3.175 million for 95-unit Ashelyn Court at 930 N. Murray Blvd.

Both complexes are about 90 percent occupied, according to a release from FirstBank, which financed the purchases.

BMC plans to invest about $500,000 in enhancing curb appeal at Timberlane and completing some deferred maintenance projects. The company will spend another $250,000 improving Ashelyn Court, which company principals hope will add value to the property and allow them to increase rents.

“Our goal is to complete the renovations quickly, stabilize the assets and refinance in 12 months with a long-term loan from Fannie Mae or Freddie Mac,” managing partner of BMC Matt Joblon said in a statement.

BMC purchased the properties from investors who bought the bank notes and foreclosed on the properties, according to the release

FirstBank financed 70 percent of the total capitalization, including purchase price, renovation and closing costs. The first year’s interest, property taxes and insurance also are capitalized into the three-year loan, which is fixed at 4.5 percent. The first year is interest only and then roles into a 25-year amortization period if BMC has not refinanced by then.

Read more on CSBJ.com: http://csbj.com/2012/11/08/denver-investment-company-buys-springs-apartments/

CDH: Unemployment Declines in All Colorado Metros but Pueblo

Published by the Colorado Division of Housing | October 23 2012

Total employment growth in Colorado in September continued to show slight growth statewide in the year-over-year comparisons. In September, total employment in Colorado was down 89,000 from the July 2008 peak. Employment trends in various regions of the state differ, however, so this article
looks at which regions of the state have the highest unemployment rates, and which regions have recovered the most in their labor markets.

Regional employment trends can also provide us with some insights into local housing demand since, all things being equal, those areas with the most robust labor demand will also have the strongest demand for housing. This would be reflected in apartment vacancy rates and in median home price and home sales transactions, among other indicators.

The first graph compares unemployment rates in Colorado's metro areas.

The regional unemployment rates (not seasonally adjusted) for September 2012 are:

• Colorado Springs--8.2%
• Denver-Aurora--3.0%
• Fort Collins-Loveland--0.5%
• Grand Junction--8.4%
• Greeley--1.4%
• Pueblo--1.5%
• Statewide--3.4%

Since mid-2009, The Fort Collins-Loveland area has consistently shown one of the lowest unemployment rates while Grand Junction and Pueblo have generally shown the highest rates.during recent months, however, The Colorado Springs are has moved into second place behind Pueblo for the highest unemployment rate while Grand Junction has fallen again. The Greeley area showed a big drop in its unemployment rate from 8.8 percent to 7.9 percent, year over year. 

The unemployment rate decreased in all metro areas except Pueblo where the unemployment rate increased from 9.9 percent to 10.1 percent, year over year. 

To provide some additional context, we can look to see how far below total employment levels are below the most recent peak in employment in each region. The peak time differs in each region. For example, the labor market peaked in mid-2007 in the Colorado Springs area, but it did not peak until late 2008 in the Grand Junction area. 

The following numbers reflect how far below the most recent peak are the September 2012 employment totals: 

• Colorado Springs MSA--8.8%
• Denver-Aurora MSA--3.6%
• Fort Collins-Loveland MSA--2.0%
• Grand Junction MSA--8.4%
• Greeley MSA--1.4%
• Pueblo MSA--3.1%
• Statewide--4.2%

All things being equal, the areas further below the peak have recovered the least from initial job losses. The noticeable exception is Pueblo where total employment is nearly back to peak levels, but the unemployment rate is being kept up by a growing labor force that is unable to find employment. Most other regions are experiencing very little growth in labor force, or even declines. See here for more on Pueblo. 

For the first time since the recession, Colorado Springs is further below peak levels than all other metros, including Grand Junction. We see here also that the Ft. Collins-Loveland area has one of the strongest markets, with Greeley also moving toward peak levels.Northern Colorado continues to show signs of significant job growth. 

(Note: If we include the Boulder-Longmont MSA, we find that the Boulder area has consistently been among the areas with the lowest unemployment rate. In September 2012, the rate in the Boulder-Longmont area was 5.7%.)

Read more on CDH website: http://www.divisionofhousing.com/2012/10/unemployment-declines-in-all-metros-but.html#.UIhMxo7u3yd

CSBJ: Colorado Springs was 55th Most Searched Residential Market in September

Published by The Colorado Springs Business Journal | October 17 2012 | Written by Amanda Miller

 

Click images above to search properties at All Seasons, LLC, CRMC

Colorado Springs was again the 55^th most searched real estate market in the country in September, according to a report from Realtor.com.

Median list prices for homes in Colorado Springs rose to $229,500 in September, a 2.04 percent increase from last year, but down slightly from August’s numbers.

The national median list price in September was $191,500, a .78 percent increase  from September 2010.
Active for sale inventory of homes in Colorado Springs leveled out at 4,158 in September, a 9.73 a decrease for the 12-month period. National inventory counts for September were down 17.77 percent year over year.
The median age of inventory in Colorado Springs in September was 75 days, a 5.63percent increase compared to August.  Nationally, the median age of inventory was 95 days, a 4.4 percent increase from the previous month.

According to Realtor.com, the top 10 most searched real estate markets, identified as MSAs, in the United States in September include:

Chicago, Detroit, Philadelphia, Los Angeles, Atlanta, Dallas, Tampa Fla., Boston, Phoenix, Orlando

The most searched Real Estate markets in Colorado in September were:

Denver --26
Colorado Springs--55
Boulder-Longmont--113
Fort Collins-Loveland--123
Pueblo--139


Read more on the CSBJ website: http://csbj.com/2012/10/17/colorado-springs-was-55th-most-search-residential-market

CSBJ: Colorado Springs Apartment Vacancies Down, Sales Increase

Published by The Colorado Springs Business Journal | October 9 2012 | Written by Amanda Miller

Eight apartment properties sold in Colorado Springs during the third quarter of this year.

Those are big sales figures, said Doug Carter, an apartment broker with Sperry Van Ness and publisher of the quarterly Apartment Insights market analysis.

There’s good reason for a surge in apartment property sales, Carter said. The vacancy rate dropped to 5.8 percent in the third quarter. That’s the lowest vacancy rate this year, according to the report. But it’s still higher than last year’s record low of 5.2 percent in the second quarter.

“The low vacancy rates mean rents are going to continue to rise,” Carter said.

The average gross rent increased $10 to $757, which is 3 percent higher than it was in 2011, according to the Apartment Insights report.

Increasing rent is good news for apartment property owners and investors who saw vacancy rates near or above 10 percent for most of the last decade.

“It will allow upgrades and improvements to properties,” Carter said.

Many property owners deferred maintenance through hard times and properties didn’t sell with nearly the frequency they’re now changing hands.

This change in the market means older apartments will likely be spruced up and that there will be a market for some of the new properties currently being built.

Read more on the CSBJ website: http://csbj.com/2012/10/09/apartment-vacancies-down-sales-increase/

LivngColoradoSprings.com: Colorado Springs Real Estate Continues Forward Progress

The Colorado Springs real estate market continues to improve. September home sales were up 15% from last year, and the median price was up 3.6%. This is the 7th consecutive month where prices have risen compared to the prior year. The inventory of unsold homes continues to be very low, down 11.3% and just under a 5 month supply at the September sales rate. September building permits for detached single family homes were up 56.5%, as more buyers choose new construction to compensate for fewer homes on the market.

The percentage of homes disclosed as distressed was 18.1%, or 140 homes. This is an increase from both September of 2011 and from July and August of 2012, but it is too soon to say whether this is a trend. It is down significantly from the peak of 36.8% in January of 2009. Colorado Springs home buyers are continuing to take advantage of low interest rates, which have been consistently in the low to mid 3′s. Low long term mortgage rates and higher rent prices are making the decision to buy rather than rent MUCH more attractive at this time.

The unemployment rate in Colorado Springs this summer hit 9.8%, which is not healthy. It remains to be seen whether this high a level of unemployment will allow the housing market to continue to recover, although there have been some recent employment announcements that may cause this number to drop soon. Summer unemployment in the tourist industry in particular was also affected by the Waldo Canyon fire. This effect should not persist going forward. 

For more details, see the Colorado Springs Homes Sales Trend Data

CSBJ: Disaster Loan Presentation for Waldo Fire Victims Set for September 28 in Colorado Springs

Published by the Colorado Springs Business Journal | September 20 2012 | Written by Monica Mendoza

Representatives from offices of Sen. Mark Udall, Sen. Michael Bennet and the U.S. Small Business Administration will be in the Springs this month to discuss disaster loans.

The representatives will be in Colorado Springs from 11 a.m. to noon Sept. 28 at the Colorado Springs Together office, 6840 Centennial Blvd.

Business owners, nonprofit organizations and residents affected by this year’s wildfires and related flooding in El Paso, Larimer and 15 adjacent counties are invited to learn more about SBA Disaster Loans, including requirements and eligibility.

The deadline to apply for loans for physical damage is Oct. 9. Homeowners and business owners have until May 7, 2013, to apply for SBA assistance for economic damage. The Colorado Springs Small Business Development Center also will participate in the presentation.

The event is free but there is limited seating. RSVP to Angela_Joslyn@markudall.senate.gov or call 471-3993 for more information.

Read this article on CSBJ: http://csbj.com/2012/09/20/disaster-loan-presentation-sept-28/comment-page-1/#comment-69498

Gazette: Rising Housing Prices Push Up Colorado Springs Living Costs

Published in The Gazette | September 7, 2012 | Written By Wayne Heilman

It’s still a relative bargain living in Colorado Springs. But rising housing prices in the Springs area pushed local living costs to the closest they have been to the national average in 7½ years, according to a quarterly survey.

Living costs in the Springs were 3.9 percent below the national average during the second quarter, up from 4.5 percent below the average during the previous quarter and 8.2 percent below the average a year earlier, according to the survey by the Arlington, Va.-based Council for Community and Economic Research. That is the closest to the national average the council’s cost-of-living index for the city has been since the end of 2004. The index hit a 20-year low in the second quarter of 2011 in comparison with the national average.

“That our growth in housing prices is so far ahead of the rest of the nation is surprising,” said Tom Binnings, a senior partner of Summit Economics, a local economic research and consulting firm. “On the whole, that is good news from the standpoint that our housing sector is growing stronger.”

Read more: http://www.gazette.com/articles/local-144368-prices-push.html#ixzz2660u2ebg

InsideRealEstateNews: Colorado Ranks 5th in the Top Ten Strongest Housing Markets

Published in Inside Real Estate News | September 4, 2012 | Written by John Rebchook

Colorado boasts the nation’s fifth best housing market, according to a report released today.

The report by 24/7 Wall Street said home prices in Colorado have risen by 7.3 percent in 12-month period ending in July, with a median home price of $240,00.

______________________________

5. Colorado
> 1 yr. home price change: +7.3%
> Median home price: $240,000
> Unemployment rate: 8.3% (20th highest)

__________________________________

“The Colorado housing market was not badly damaged when the housing bubble broke,” according to the analysis, which ranked Arizona as No. 1, with a 16.6 percent year-over-year increase in home prices.

The online service, which provides analysis and commentary on a variety of domestic and international equities and asset classes, including real estate, based the ranking of the top 10 housing markets on a number of sources. They included:

• The Corelogic Home Price Index.
• Foreclosure data from RealtyTrac.
• Fiserv, an information management company that provides data for the Case-S&P/Case-Shiller home price index.
• Trulia, the online real estate search site.
• Unemployment data from the Bureau of Labor Statistics.

The analysis said that home prices in Colorado dropped 9.5 percent from the first quarter of 2007 to the first quarter of 2012, the 18th best among all states.

“The market’s recovery rate will put it in the middle among the 50 states,” the report said. “Colorado home prices are forecast to recover at 3.7 percent between the first quarter of this year and the first quarter of next year, the 22nd-highest increase. Over the longer period from the first quarter of this year until the first quarter of 2017, prices are expected to improve 2.4 percent per annum, which ranks it 42nd.”

Independent broker Gary Bauer said that the national report reflects well on Colorado and the Denver area. He said he thinks the trend it is showing, and the state’s record, are in line with what he has read, although he may quibble with the exact percentage changes in the analysis.

“I tend to agree with them as far as their conclusion, but I’m not quite comfortable with their numbers,”
Bauer said.

“I think a lot of markets are taking two steps forward and one step back, which no longer seems to be the case with our market. We seem to be making incremental steps forward and are not backsliding.”

To read the entire report, please visit 24/7 Wall Street.