Are You Looking For That Upgrade?

Does your current house fit your needs? Does it seem like everyone else is moving up and moving on to more luxurious surroundings? Are you wondering what it would take to start living your dream life?

Market conditions around the country have presented an opportunity like no other for those who are looking to make the jump to a premium or luxury home.

The National Association of Realtors reports that national inventory levels are now at a 4.3-month supply. A normal market, where prices appreciate with inflation, has 6-7-months inventory. The national market has echoed the conditions felt in the starter and trade-up markets as inventory has declined year-over-year for 25 consecutive months.

The chart below shows the relationship between the inventory of homes for sale and prices.

According to Trulia’s latest Inventory Report, the inventory of homes for sale in the two lower priced markets has dropped by double digit percentages over the last 12 months (16% for starter and 13% for trade-up homes). While the inventory of homes in the premium home category has dropped by only 4%.

This has created a seller’s market in the lower-priced markets, as 54% of homes were on the market for less than a month in the last Realtors Confidence Index, and a buyer’s market in the luxury market, where homes were on the market for an average of 160 days according to the Institute for Luxury Home Marketing.

Bottom Line

If you are even thinking of listing your home and moving up to a luxury home, now is the time to meet with a local real estate professional to evaluate your ability to do so. Homeowners across the country are upgrading their homes, why can’t you? Your dream home is waiting! Want help finding it? Need to sell the old house first? The Springs Summit Group is here to help! We are experts that know the neighborhoods, and what it takes to make your dream a reality. So contact us today, we're ready to make that beautiful house you want your new home!

Article by: https://www.keepingcurrentmatters.com/2017/08/23/want-to-keep-up-with-the-joneses-nows-the-time/

Edited by: Seth Worthey

New Builds on the Rise - What Does that Mean for Buyers?

New Build in the beautiful Lorson Ranch community, Colorado Springs, CO

Home builders have been busy this summer—and that might make the home-buying search better for many Americans on the prowl for the place of their dreams.

Builders received 7.4% more permits to put up new homes in June compared with May, according to the seasonally adjusted numbers in the latest residential sales report jointly released by the U.S. Census Bureau and U.S. Department of Housing and Urban Development. That's a 5.1% increase over June 2016.

After a dip in May, that brought the number of new abodes on the horizon up to 1,254,000. That's in line with the number of permits granted in the previous 12 months. (Realtor.com® looked at only the seasonally adjusted numbers in the report. These have been smoothed out to account for seasonal fluctuations.

It's a sign of more new homes to come, and will likely help ease the inventory shortfalls in many areas.

"That's good news in that we've halted the decline in the number of new housing permits. That means more homes will be constructed in the future," says Senior Economist Joseph Kirchner of realtor.com. But he warns against irrational exuberance. Even with the increases, "we really should be seeing almost double the number of permits to keep up with demand," he adds.

The biggest monthly bump was in apartment and condo buildings with five or more units. Permits surged 14.6% from May, but were down 2.4% from June 2016. Single-family home permits rose 4.1% from May and 9.2% from June of the previous year.

Builders also bumped up construction on the number of homes started but not yet completed. Housing starts rose 8.3% from May and 2.1% from the same month a year ago.

As a favor to buyers trying to close before the summer ends (and the kiddies go back to school), about 1,203,000 homes were finished in June, according to the report. That was up 5.2% from May and 8.1% from June 2016.

It's worth noting that new homes, which often come with the latest finishes and appliances, aren't cheap. The median price of a newly built home hit a new high of $345,800 in May, according to the most recent Census and HUD data. That's nearly 37% more than an existing home that's previously been lived in. Existing homes went for a median $252,800 in May, according to the most recent National Association of Realtors® data available.

The West had 343,000 new homes built—18.7% more than in May and a whopping 40.6% more than in June 2016. It was followed by the Midwest, at 210,000. That was up an astounding 42.9% month over month and 13.5% year over year. About 115,000 new homes were completed in the Northeast, up 9.5% from May, but down 6.5% from the same month last year.

"With rising population and steady job gains, drastically more new home construction is needed to fully and satisfactorily house new households that will be formed this year and upcoming years," Lawrence Yun, the NAR's chief economist, said in a statement. "More consistent gains are needed to help re-balance the housing market."

Want to Know more about new builds and how they are trending? Contact the Springs Summit Group today! We'd be happy to show you the new build options around Colorado Springs! Thinking of Selling? We'd be happy to help you receive top-dollar, and a smooth transaction. 

Article written by: Clare Trapasso

http://www.realtor.com/news/real-estate-news/new-home-construction-june-2017/

Article edited by: Seth Worthey

Is Real Estate the Best Long Term Investment?

According to Bankrate’s latest Financial Security Index Poll, Americans who have money to set aside for the next 10 years would rather invest in real estate than any other type of investment.

Bankrate asked Americans to answer the following question:

“What is the best way to invest money you wouldn’t need for 10 years or more?”

Real Estate came in as the top choice with 28% of all respondents (3% higher than last year), while cash investments – such as savings accounts and CD’s – came in second with 23% (the same as last year). The chart below shows the full results:

The article points out several reasons for these results:

“After bottoming out at the end of 2011 following the worst housing collapse in generations, home prices have gone gangbusters recently, climbing back above their record pre-crisis levels. Prices jumped 6.6 percent during the 12 months that ended in May, according to CoreLogic.

Toss in persistently low interest rates, tax goodies that come with owning a mortgage, and the psychological payoff from planting your roots, and maybe it’s no wonder real estate remains popular.”

The article also revealed that:

“Bankrate’s Financial Security Index — based on survey questions about how people feel about their debt, savings, net worth, job security and overall financial situation — has hit its third-highest level since the poll’s inception in December 2010.”

Bottom Line

We have often written about the financial and non-financial reasons homeownership makes sense. It is nice to see that Americans still believe in homeownership as the best investment. So if you would like to purchase your first home, or want to upgrade to a new one, contact us today. Here at the Springs Summit Group we love making our clients dreams a reality! 



Article Content: 
https://www.keepingcurrentmatters.com/2017/07/27/americans-still-believe-real-estate-is-best-long-term-investment/

Article Edited by: Seth Worthey