Move Faster
I recently spent a few days in Coos Bay, Oregon, the hometown of Steve Prefontaine, who was the premier middle-distance runner in the early 70’s. I ran every day and liked the amount of air at sea level. The weather was overcast and I only saw blue sky a few times. People might say it was damp and depressing, but I found it invigorating thinking I was running on streets that Steve had run on.
In the 1960’s my dad was a high school track coach. He got to see Steve run in person and set the National High School 2-mile record. Now, I didn’t set any speed records—that is for sure—but I enjoyed all of my runs in Coos Bay’s cool weather.
I also discovered that Coos Bay is one of the cleanest places I have ever visited. There was no trash along the road. It was very clean in town, on the side streets, and along the main road by the bay. I cannot think of another town as clean as Coos Bay.
I would find living in Coos Bay very hard, as I like the 330+ days of sunshine Colorado Springs has each year and, just as important to me, the four Home Depots. Coos Bay doesn’t have a Home Depot, and the closest one is two hours away. Now, for many people that would not be a big deal, but I spend a lot— I mean a lot—of time at Home Depot.
Yes, I am sure I could survive without one, but I prefer to live with a Home Depot in reasonably close proximity. I always get home thankful to live in Colorado Springs. It’s perfect for me. Whether you live in a place that is large like Boston or small like Coos Bay, I hope you have landed in the place that is perfect for you.
Rental Market
The rental market is mixed and strange from the front seats. Higher-end homes have been renting more quickly than normal. This may be due to the fact that you can rent a nice home for far less than you can buy one.
On the other end, lower, reasonably priced, affordable apartments are taking much longer to rent. This is still fallout from the large increase in apartment complexes. There are “For Rent” and “Move-in Special” signs in many of the apartment complexes that were built over the past few years.
We expect rents to stay where they are or have minimal change as we move into the busiest rental months of the year.
With the warm weather, we are reminding tenants to water their yards by hand until their sprinkler systems are activated. The normal time frame to activate sprinkler systems is mid-May. The challenge is that we are still getting low temperatures some nights. According to the weather forecast, there will be a low of 18 degrees on Friday—definitely cold enough to freeze and bust sprinkler pipes.
We will watch the weather and rely on professionals to let us know when temperatures are expected to remain above freezing.
Sales Market
The Colorado Springs sales market is starting to move. I have no idea why, but it is. After basically three weeks of no showing activity, all of my current listings recently picked up showings. Interest rates have come down slightly, with the national average just under 6.5%.
We currently have a number of tenants looking to buy the homes they have rented—in some cases for many years. In these situations, the tenant/buyer knows exactly what they are buying. They are not paying for cosmetic updates, they pay prorated rent until closing, and they save money since only one Realtor is used. The owner/seller passes that savings along.
It’s beneficial for the owner as they don’t have a vacancy or need to prepare the home for sale. From my experience over the last 23 years, it’s a very positive experience. The timing just has to be right for both parties.
According to Realtor.com, 43% of homes listed for sale are part of an HOA, compared to 34% in 2019. This increase is largely driven by 68% of new construction being in developed communities with HOAs.
HOA dues are factored into monthly payments by lenders, which makes homes less affordable in the long run—nicer, but more expensive. Some HOA fees in Miami are reportedly up to 27% of the monthly mortgage due to increased insurance, reserves, and regulations.
People often say, “HOAs are great for my neighbors, just not for me.” It seems they may not be ideal for buyers either.
Caution
I receive unsolicited phone calls and texts daily from people asking if we are interested in selling rentals at a “fair market” price. These offers are typically around 60% of the property’s value. The strategy is to buy at 60%, invest 20%, then resell for profit. These offers are not in your best interest.
I have also been receiving many text messages from roofing, painting, and window companies claiming they are working in the area and offering free quotes. In reality, they are looking for a way into your wallet.
I looked up one of these companies and couldn’t find any information. Be very careful with unsolicited messages. Better yet, don’t respond—just delete and report as spam.
The Good Stuff
Road signs from places of worship…
- Hygensis 24:7: Wash hands, do not touch face.
- Church of the Cross: Don’t let worries kill you, let the church help.
- College Park United Methodist Church: Swipe right for Jesus – we do. Join us.
- Redeemer Temple: I hate this church – Satan.
