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Colorado Springs MLS Market Update. 

Don't forget to Spring Forward on 14 March!

Below is a link to our March newsletter and the market update for February.  Newsletter articles include:
7 Mistakes Buyers Make and How to Avoid Them
Luck of the Irish – Saint Patrick’s Day 17 March

Check out our new Real Estate Blog: Watch for up to date information concerning Colorado Springs real estate, mortgage information, Federal programs, etc..

Recent articles:

Colorado Springs Housing Analysis based on School District
Academy School District Market Update
Short Sale 101

Other Real Estate News:

Ann Knoll, of Murray Knoll Partners, receives the Certified Negotiations Expert (CNER) designation.


February 2009 Market update: Market trends for Colorado Springs resale properties continue to be positive.  New home starts are up.  Check out the real estate market statistics.


Murray Knoll Listings:

New!  Briargate.  Priced to sell quick! $186,500.  Two story in Academy School District 20. 4bed/2bath/2 car garage. Over 2000 sq ft. Fenced backyard w/ large deck.  Close to schools. 

New! Spring Crest.  Country living in the City! 3 Acres in Academy School District 20. Incredible view of Pikes Peak from west facing windows and deck. 3 bed/3bath/2 car garage. Bedroom and bath on each level. Zoned for horses. New granite counters

Northgate, South Trailridge.  NEW PRICE!  $535,000. 6 bed/5 bath/3 car garage. Luxury Acuff home in Academy School District 20 with beautiful private backyard.

Springs Ranch: $325,000. 5 bed/4 bath/3 car garage. Large two story in Springs Ranch.  Over 3400 square feet. Fenced backyard. Large corner lot.

Academy District 20 lot:  Priced at $185,000.  This 2.66 acre lot the best lot remaining in Highland Park. Suitable for a walkout basement with the back of the house facing the front range.

Upgraded condo in Academy District 20: New Priced at $175,000.  Beautiful main level condo with an open floor plan, 2bed/2bath, A/C.

Tamarak.  Too late!  Under contract! $250,000. Wonderful family home with space for everyone! 4bed/4bath/2car. D-11. Nearly 3000 sq ft.

Monument: Priced at $150,000. Short sale with pending contract. Accepting backup offers. Visit virtual tour at: http://623trumbulllane.ourdistrict20homes.com 

Search the Colorado Springs MLS:  Curious about the house down the street?  Checkout our map tool for all Colorado Springs properties which is populated from the MLS.

Complimentary Market Analysis: Thinking about selling?  Request a free market analysis:
 

Please let us know how we can help you, your friends, and family, with your real estate needs by call Nancy at (719)-964-4810 or Ann at (719)-459-2213.


We look forward to hearing from you.  Murray Knoll Partners, “Professional service with a personal touch.”

Click on the link below to access the newsletter.
Colorado Springs Market Update - March 2010

Academy School District 20 Market Update

The number of sales for Academy School District 20 homes increased in February by 25% with the average sales price increasing 3%.  Number of sales are down over February 2009 by 13%, but the average sales price is up over $20,000.  This reduction in sales and increase in average sales price can be attributed to the lower number of distressed sales.  In February 2009, there were 24 distressed sales.  In February 2010, the number of distressed sales was down to 14.

The majority of the sales for Academy School District 20 were in the $200,000 to $300,000 price range.

Colorado Springs MLS Market Update

Below are the statistics for the Colorado Springs MLS real estate market. 

Positive trends continued for the Colorado Springs Real Estate Market for February 2010.  Total active listings in Colorado Springs MLS area are down 14% over February 2009 and total sales are up 4% and new home starts are up 45%. 

We are slowly shifting to a more stable market.  The number of active listings increased only 4% over January while the number of sales increased to 19%.  This resulted in a change in the absorption rate from 8.9 months in January to 7.6 months in February.  The absorption rate is the number of months it will take to sell the current active listings at the current sales rate.

Colorado Springs Housing Analysis based on School District

 Well, another year has passed and it is time to update my analysis of Colorado Springs MLS home values based on School District.  If you missed my update from last year, essentially, Academy School District 20 held their values better over the previous 5 years in relation to home values in Districts 11 and 49.  This update includes home values for January 2010. 

 The market statistics found on the Colorado Springs MLS (Multi-Listing Service)  website and reported by the media is an average for all single family homes in the City of Colorado Springs.  The housing market in each area and even subarea can be significantly different from the City average.  Since we market to buyers in Academy School District 20, we felt that a comparison between Academy School District 20 and the adjacent school districts would help the reader/buyer see the value in purchasing a home in the award winning Academy School District 20.

 Data Collection

 The following analysis is based on homes sold in the month of January between 2005 and 2010.  Why January?  Technically, the analysis could be for any month, but we started the data collection right after the January housing statistics became available, so it made sense to use January.  Yes, a summer month, during peak buying season, would probably be a better choice, but last year we noticed sales increased significantly in January 2009 over December 2008, probably due to the availability of funding and distressed properties.  A perfect solution to the data collection would be to use all the data for each year.  Unfortunately, the Colorado Springs MLS, does not allow for large volumes of data to be downloaded at any one time by a single user.  We opted to pull and manipulate the data 15 times vice 180 times.  This also makes it simpler to update annually when dealing with only one month.

Analysis

Listings Sold

 For listings sold, the trend for each area is more important than the actual numbers, primarily because District 11 covers a significantly larger area.  From the chart, we see that all three school districts dropped in sales in January 2010.  This can be attributed to the previous first time home buyer deadline that was originally November 2009, and recently extened to May 2010.  Essentially, many of the buyers planning to use this tax credit had already closed earlier in 2009, pulling from the pool of potential buyers. 

 Average Sold Price

Average sold price for 2010 remained relatively stable across all school districts.  All three school districts are at or near 2005 average sold price. The hope is that the average sold price will remain flat or begin to increase as the number of distressed properties decreases.

Distressed Properties

Academy School District 20 has the lowest percentage of distressed properties sold, approximately 27% of the total properties were considered distressed, compared with 42% for both Districts 11 and 49.  This is an increase of about 6% for District 49 and 5% decrease for District 11.

We believe the reason for the higher number of distressed properties in District 11 and 49 is due to the difference in economic status.  With the lower prices in Districts 11 and 49, many buyers are first time home buyers who purchased homes with subprime loans and are now going into default.

Academy School District 20 buyers are typically of a higher economic status, often professionals who have previously purchased homes, used a conforming loan, and probably purchased the home with a down payment resulting in instant equity in the home.  The likelihood of defaulting is lower with those who purchase their home with a down payment for two reasons; 1) those who can save for the down payment typically have other funds to draw on to make payments when they are in a financial bind and 2) having the equity in the home would allow them to sell the home below market, though at a personal financial loss to them, before going into foreclosure.

Average Price/Square Foot

Price per square foot decreased for Academy School District 20 and increased for Districts 11 and 49.  Academy School District 20 price is almost equal to the value in 2005, while Districts 11 and 49 still remain below the 2005 value  This is a strong indicator that District 20 homes on average retained their value better than the other two school districts. 

Average Seller Concessions

Seller concessions are very popular during a buyer’s market.  To improve their chances of a sale, sellers frequently offer to pay a portion of the buyer’s closing costs or for other improvements.  Higher concessions are indicative of the desperation of the seller.  We see from the chart below that District 20 seller concessions jumped significantly in 2010.  Not too surprising due to the higher sales prices, slower market, and increasing desperation of the sellers in the higher price ranges.  The decrease for District 11 may be due to the number of distressed properties where banks are reluctant to approve seller paid concessions, particularly for investors.

In summary, it is our opinion that based on the January 2010 housing statistics, Academy School District 20 is a better investment than the other two school districts.  On average, home prices and price per square foot remained stable over the six year period, where Districts 11 and 49 declined.

For suggestions on buying or selling a home in Colorado Springs or to search the MLS for free, visit http://www.ourdistrict20homes.com.

Colorado Springs Short Sale 101. Are you struggling to make your monthly mortgage payment?  Are you anticipating an income reduction due to illness, job loss, or other circumstances?  Do you need to sell your home?  You might qualify for a short sale.

What is a short sale?

A short sale is the precursor to foreclosure.  If the homeowner owes more on their Colorado Springs property than it is currently worth, they can hire a qualified real estate agent to list the property and begin negotiations with the bank for a short sale.  To qualify for a short sale, the borrower must prove a financial hardship and have the property listed for sale with a qualified real estate agent that is a member of the Colorado Springs MLS.  A financial hardship can be defined as a change in the financial stability of the homeowner between the date they purchased the home and the date of the short sale negotiation. A short sale will affect the borrower’s credit and some lenders will not forgive the entire amount of the loan, meaning that at some point in the future, the borrower may have to pay back some portion of the deficiency. 

Why should someone consider a short sale? 

Sellers may not have a choice.  If they can prove financial hardship such as losing a job, being transferred out of the area, or escalating loan payments, then the home is no longer affordable.  Banks prefer the short sale route vice foreclosure  because their loss on the loan will generally be less than the cost of foreclosure with lawyer fees, taking possession of the property, carrying costs of the property, continued depreciation of the property, and the potential damage to the property by the borrower or vandalism.  Additionally, the impact to the borrower’s credit is not as severe as a foreclosure or bankruptcy.  Home owners may qualify for a mortgage in as little as 2 years (5 years for foreclosures).  The key here is that the borrower must be able to show a financial hardship.  The borrower will be expected to exhaust their savings and liquidate other assets, before the lender will consider a short sale. 

I haven't missed a payment, can I still qualify for a short sale?

The short answer is maybe.  Are you close to missing a payment due to a financial hardship?  Are you upside down on your property, i.e., do you owe more on the property than the property is worth?  Then you just might qualify for a short sale.  The best way to find out is to contact a qualified real estate agent to discuss your options.  

Do I have to hire a real estate agent or can I negotiate the short sale myself to save money?

The bank will require you to hire a real estate agent that is a member of the Colorado Springs MLS to properly market your home.   Additionally, the bank will want to work with a professional when negotiating the sale.  When you sell your home as a short sale, the agents' commission is paid by the bank, not you.  Home owners frequently start the process of selling their home as a For Sale By Owner (FSBO) in an effort to save money.  The risk is that they lose valuable time, reducing their chances for a successful sale.  If you are in a situation where a short sale may be the only option, the best thing to do is to contact a qualified real estate agent that is a Certified Distress Property Expert (CDPE).  Banks prefer to work with CDPE agents because they know that the agent understands the process.

For additional short sale frequently asked questions, visit Short Sale FAQs.

Interested in buying a short sale property in Colorado Springs?  Visit Buying a Short Sale.

If you live in Northern Colorado Springs and you have questions about selling your home as a short sale, please give us a call.  We would be happy to sit down with you and discuss your options.

In Colorado Springs, we are seeing the same thing as reported by my friend Steve Bachman in Northern Virginia concerning foreclosure sales.  The exception is that more and more properties in Colorado Springs are going under contract as a short sale before making it to foreclosure.  This is good news for our market, fewer abandoned bank owned properties in the neighborhood and a little more stability in the market.  Additionally, by selling as a short sale, the sellers remain engaged in the process and hopefully maintain the property.

Nancy

Considering re-locating to Northern Virginia?  You might want to consider watching the home sales for Fairfax Station as reported by Steve and Jan Bachman.

Nancy Murray
Murray Knoll Partners
Keller Williams Clients' Choice
Colorado Springs, CO
719-357-6320

How to sell a home quick in Colorado Springs!  I hope you find this data about selling a home in Colorado Springs as interesting as I did.  When a home is priced right from the start, the home will sell faster and at a higher price in the end.  In Colorado Springs, we see this over and over again.  The first 3 weeks is the most critical time for new listings, this is when we see the most activity.  If the home is over priced for the size and location, showings will not happen, or the feedback is that the home is over priced.  When clients insist on pricing above our recommended price, we insist on an automatic price reduction if showings do not occur at the expected rate. Unfortunately, the reduction usually occurs after the critical first 3 weeks.    Also, staging is just as important.  When Murray Knoll lists a home, we provide staging services by a professional stager/decorator at no additional cost.  Remember, our goal is to get your home sold for the best price in the shortest amount of time - we do this by pricing right and staging!

Price it Right

Sellers who listed their home at the price originally recommended by their agent sold it:

• 38 days faster
• For 2.25% higher
• With 1 less price reduction

Compared to sellers who did not take their agent's recommendation.

Staging Stats

Compared to homes that were not staged, staged homes had:

• more showings
• a higher list-to-sell percentage

Other notable stats found include:

• Only 1 in 3 sellers staged their home, even with all the commonly accepted advantages of staging.
• Staging typically took between 2 - 6 hours to complete.
• Including the cost of a staging professional and items purchased or rented, staging cost an average of $523 (no cost to you if you list with Murray Knoll Partners).

Although it has advantages at all price points, staging was also found to be particularly important for homes priced over $600,000.

Source: Keller Williams Realty Research Study