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How’s the Market?

Atlas Real Estate Group

In one word, market conditions are robust. A proud member of Atlas Real Estate Group, the premier real estate investment company and brokerage team along the Front Range, I am often asked for an indication of the rental market in Colorado Springs. Here is a brief synopsis.

Market Conditions - Year over Year Rent Growth

At 11% according to Yardi®, we are top three in the nation when it comes to year over year rent growth, a finding consistent with what we see on a daily basis analyzing the market for our investor clientele. This is due to a myriad of factors, such as limited inventory, minimal construction activity and a level of population growth that has moved us up to being the nation's 40th most populous city and a "positive trajectory with respect to economic recovery and growth".

Market Conditions - Supply and Demand

The result of our robust market is high prices. This is bad news for wholesalers and flippers, a business model needing margins of 25% or better to make sense. Forced to seek elsewhere for the short term ROI they need, many are flocking to markets such as Indianapolis, St. Louis and others where housing prices are low enough to generate the profit margins they need. And this is where the downside takes a sharp decline.

Stepping over dollars for pennies, their capacity for building long term wealth is severely limited, as can be seen by much lower rent growth rates of 4.3% and 2.9% respectively.

Not to mention, and though cash is truly king in the rental game, appreciation cannot be overlooked. According to NeighborhoodScout®, Colorado Springs has shown an 8% in annual appreciation rate in the last 12 months, whereas Indianapolis, IN and St. Louis, MO show 4.73% and 6.14% rates respectively.

Market Conditions - Seeking New Clients

How's the market, you ask? Like Caribbean waters, warm and inviting. Come on in? Don't worry, no sharks allowed.


Are You Thinking About Buying a Home?

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buying a home

The process of buying a home can be overwhelming at times, but you don't need to go through it alone.

Source: Are You Thinking About Buying a Home?

Buying a Home - Helping many buyers and sellers to successfully transact real estate, we offer this comprehensive guide to buying a home this winter. With information including four great reasons to buy a home today instead of waiting, what will happen to interest rates, whether it's better to buy or rent, and more, the experts at the Axiom Realty Team are standing by to help and not in the traditional sense either.

After many years of institutional lending experience as a mortgage loan officer for major banks, we are experts at helping both buyers and sellers understand the lending side of things, a crucial part of the process. Still active in non-owner occupied lending circles, we are also able to help with hard and private money, business lines of credit, lease options, land contracts...whatever it takes to make the deal happen.

Partner with us and work with the finest professionals in the title, insurance, remodeling and other related service providers to make sure everything comes together smoothly and efficiently.

If you are thinking about buying a home, be it this winter or next summer, we are here to help. Please subscribe at the top left of this page and/or ask for your personalized consultation via the contact form at the bottom right. We'll work together with you to make it happen.

Thanks for reading. See you on the other side!


Buying A Home SCARY

Mortgage Rates at 6-Month Lows

PartnershipMortgage rates continued lower today, largely getting caught up with yesterday's underlying market movements. Lenders were likely being cautious due to prospects for volatility in today's trading, not to mention the increased volatility seen on Tuesday and Wednesday. All things being equal, rates will

Source: Mortgage Rates Back Down to 6-Month Lows

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Down Payment Assistance Grants Available

Source: El Paso County, Colorado • Single Family Mortgage Bond Program

Be it your first or your last, buying a home is no small accomplishment. And when you're a first timer, there's so much to learn and so little time, since your lease is expiring and/or you've suddenly realized you'd rather not commit another year of mullah to pay for someone else's mortgage/retirement plan.

Though a tad more difficult to qualify for than the subprime days of yesteryear, for those with verifiable income, relatively stable employment and a decent (not necessarily excellent) credit score, today's borrowing environment is full of unprecedented opportunity.

Here's how.

  1. Market values are climbing, which might mean we have come out of the down cycle. Consequently, barring another economic collapse of course, prices will continue to rise for the next 8 - 11 years of our current real estate economic cycle*.
    1. Currently estimated to be up to 20% annually in some areas of Colorado**, this friend of ours is called appreciation, AKA your money-maker.
      1. OK. So, the $100,000 house you just bought appreciates at 20%. In theory, this means the house will be worth about $120,000 year 2, $144,000 year 3,  $173,000 year 4 and so on.
  2. With 30 year fixed rate mortgages at about 4% annually, you are able to finance an asset at a lower interest rate than its projected appreciation! This is like your bank charging you less than the federal funds rate. Or like your three-year old used car being worth more today than it did new. You get the point?
  3. Market rents are pretty high and climbing, sometimes more than relative mortgage payments! For example, the Average Rent Price in Colorado Springs is $1,321***, the principal and interest payment for a $276,000 home, which is slightly above the average home price****.
  4. When you're a renter, consider your housing mullah turns into cosmic dust at about the 1st of each month, never to be seen again in this life, as opposed to the pixie dust that happens to homeowners when appreciation (and principal reduction) come together at about the same time, turning their home sweet home into a long term investment, even retirement tool.
  5. Many renters shy away from buying due to the cost, which includes a down payment, closings costs and other fees, all of which can add up. So for a little icing on the cake, consider the El Paso County Down Payment Assistance Grant contributes 4% of the purchase price towards down payment and closing costs.

Of course, there are property taxes, insurance, maintenance and other costs to consider with home ownership but overall, it's generally better to buy than rent, especially in our current environment.

If you're still reading you can go ahead and admit, it's time to buy a home. Conveniently located at the bottom right of this screen, use the contact form to setup your personalized consultation and see how easy it can be when you hire a knowledgeable professional to help.

Do it now, before the sky falls.

* REAL ESTATE CYCLES: THEY EXIST… AND ARE PREDICTABLE http://bit.ly/1q3duZF

** Colorado Appreciation Rates:  http://www.neighborhoodscout.com/co/rates/

*** Colorado Springs Rental Market Summary: http://www.realtor.com/local/Colorado-Springs_CO/rent-prices

**** PPAR Housing Statistics, Average and Median Sales Prices:  http://www.ppar.com/Statistics.aspx


Interest Rate Hike in 2015?

Silhouette of businessmen carrying Interest Rates word uphill

 

 

 

 

 

 

 

 

The U.S. Federal Reserve chairwoman described the central bank's positions in a speech Thursday.

Source: Janet Yellen Expects Interest Rate Hike in 2015

It's not that the sky's falling, but that it's important to illustrate the affect rising interest rates has on home affordability so buyers who are on the fence know the answer to that million dollar question, what is the "perfect time" to buy.

It appears we are in the best of all worlds - the economy has improved, home prices are rising and interest rates are at historic lows. So, why not now? To answer that, let's look at the effect a 1% change in interest rates will have on purchasing power.

According to the Pikes Peak Association of Realtors, the Average Home Price in the Colorado Springs market as of end of month August 2015 was $273,381. With the Average 30 yr Mortgage in the Colorado Springs market currently at 3.91%, amortized over 30 years a monthly payment on this average home is $1,291 per month, not including taxes and insurance. Whereas, a payment for the same house at 4.91% is $1,453, a monthly increase of $162 or $58,165 in added payments over the life of the fully amortized loan. And if affordability is an issue, consider this increase means less house for the money, as the max purchase price becomes $242,973 in this scenario.

Buying a home is no small decision with many factors to consider. However, those who are ready, willing and able to buy might want to consider pulling the trigger sooner than later as, be it in 2015 or later, interest rates will rise. To illustrate its inevitability, this old goat was originating mortgages with interest rates in the mid to high teens back in the 90's. Yes, before smart phones.

Interested in buying or selling a home? Use the form to the right to contact us for a no cost, no obligation consultation. We look forward to serving you!


Mortgage Bond

Mortgage ApprovedAttention renters! Are you ready for a place of your own? And, I don't just mean somewhere to live because, if you're a renter  you already have that! I mean a home that you can paint and fix-up the way you want, where you will have less neighbor worries and, there are so many more benefits to being a homeowner, not the least which is no longer paying someone else's mortgage or nest egg by helping to build their equity, but building your own instead.

Many people I talk to think they can't afford to buy a home. Well just today, July 22, 2015, a search for properties less than $90,000 in El Paso County resulted in 15 results. Now, keep in mind there are down payment requirements for most loans except VA, but a $90,000 loan amount at a 4% interest rate (which not everyone will qualify for) equals a monthly payment for principal and interest of $429.67 (not APR)! Add 1% for taxes and insurance and we're talking about a payment of roughly $505! As you see, with monthly payments this affordable, you just can't afford not to! Not to mention, there are some areas in El Paso County enjoying up to 14% appreciation, meaning if it's worth $100,000 today it's potentially worth $114,000 next year!

Look at the interest rates bank are paying for savings and compare...you'll find that, even at 2% there is no comparison!

And if that's not enough to get you off of the fence, let me nudge a bit and introduce the El Paso County Bond program, which offers down payment assistance equal to 4% of the mortgage amount. And you don't even have to be a first time home buyer to qualify! In case you missed it, this might mean zero down.

Do I have your attention yet? Use the contact form to the right and I'll be happy to help you stop paying rent and start paying yourself.

Source: El Paso County, Colorado • Single Family Mortgage Bond Program


Hone Your Property Investing Skills

Sharpen Skills

The Great Recession brought about a major downturn in the housing market. In this new economic reality, many investors backed off for a few years. Now, they’re slowly starting to come back as the market improves and their wide-eyed dreams of ditching the rat race for wealth and independence expand by the day. If you’re one of the many who have taken the plunge into the housing market or are considering doing so, keep in mind that it can be challenging. In particular, there are four key issues you’ll want to master in order to hone your property investing skills...read more


Assets Are To Be Protected

Asset Protection

As you build your real estate empire, it's more important than ever to protect your assets. One of the most recommended ways of doing so is to use the shield of a corporation or LLC. when doing business. The strategic partnership we just scored will help you do exactly that. Get started today at http://tinyurl.com/ml5xl6p.


Classified Ads

Classified Ads

Great News! We have just added a FREE classifieds ads service to RealEstateSuper!Markets.com! For a limited time, you can post real estate related products and services at no charge, complete with up to four photos! Now, you will have to make sure the photos fit the following parameter...check it out now!


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