Low Cost of Living Puts Colorado Springs in a Good Place

The news this morning in Colorado Springs (The Gazette reported it) says the latest cost of living survey put us 8.1% below the national average, not a bad place to be. It's a pretty great place without being low cost, don't get me wrong, but a low cost of living coupled with a good quality of life makes a GREAT combination!
The caveat on the quality of life has to be the weather for the last 2 days. Fog, drizzle, cold, it reminds me of Michigan! I know, that is harsh, and like the saying goes, if you don't like the weather, wait an hour, it will change. Of course it also goes, if you do the like the weather, wait an hour, and it will change anyway :-) It is scheduled to warm up later today, and get back to the sunny 70's for the rest of the week, so I can handle a cold day or 2.
I'm still getting the hang of this Facebook thing, but I do have a bunch of photos posted now (not all tagged or anything, but a start!), so if you want to visit the Facebook site, see the link on the bottom right of this page, or click here!
Got questions about living in Colorado Springs? Call me at 719-590-4768 or 888-568-6784!

Blizzard's Effects Melt Off Fast

We went up to Fort Collins to see our daughter up at Colorado State University on Saturday, and I took the this photo from in front of the Starbucks at Union and Briargate (my favorite). You can see that although the Peak is nice and white, the storm we had Thursday was already melting off pretty good. We saw lots of cars still in the ditches along I25, so we know the roads got pretty bad, but they were clear and dry for us. Ft Collins seemed to have a little less snow than we did, and it was also melting fast. It was almost 60 on Sunday, but it started snowing again this morning around breakfast. Springtime in the Rockies!
When we filled up before our little trip (it is only 2 hours each way), I was somewhat shocked by how fast gas has risen in the last week or so. My last fillup at this particular station was a full $.20 / gallon cheaper. Some of the issue here in the Springs is that every Spring and Fall, they switch the formulations around, and the winter blend gas is different (more ethanol I think?). While I don't know if that was the problem, it was annoying to be paying close to $2.00 a gallon again :-( I know, it isn't $4.00, but considering that the $4.00 gasoline was probably caused by our now government owned banks speculating on oil futures, I'm not sure that is a good comparison either.
I showed one of my listings yesterday to a couple who has moved here from San Diego, and it reminded me of how many of our residents come from elsewhere, and how happy they are to be here. Recently I got an email from one the families that has moved here from the mid west recently, and their comment was 'We've been in Colorado Springs for just over five months now and we love it even more each day. It is everything you said it would be and more.'
I have other clients from new Hampshire that when I see them, they just can't stop grinning with delight that they live here now. Whether it be from Florida, Texas, Arizona, California, Missouri, North Dakota, Virginia, Nevada, Washington, North Carolina, Ohio, Pennsylvania, or elsewhere, people love coming here.

Got questions about living in Colorado Springs? Call me at 719-590-4768 or 888-568-6784!

December Colorado Springs Real Estate Sales Statistics

The preliminary numbers are in, and it was another brutal month on the statistics front, at least for sellers. In summary:
Unit Sales - down 23.1% from last December
Average Price - down 10.5% from last December
Median Price - down 16.2% from last December
The inventory of unsold units has dropped to its lowest level in 2 years, giving some hope that once we sell through the backlog of foreclosure properties, things should bounce back fairly well. Interest rates are great, prices are great, selection is great, so this is a great time to buy a house in Colorado Springs! Even the weather is great, it was almost 60 again yesterday!
For more complete statistics, click here.

Colorado Springs is having an "up and down" winter so far. We've had a couple snow events since Thanksgiving, but we are in our 2nd day above 50 this weekend, before another snow event tomorrow night. It makes some interesting observations as your drive around town as well. I was driving by Patty Jewett golf course yesterday with my windows down, and noticed a number of people playing. When I got back to the house in Briargate, 15 minutes north, there is still snow hanging around on the ground almost everywhere except the streets and south facing driveways. I think I better get my lights up while the getting is good, I'm guessing the opportunities are diminishing as time goes along :-)

The Christmas gift of dropping gas prices every week seems to have run its course. After hitting a low of $1.429, we are up to $1.499 at our favorite station.

Today's photo is another from several years ago of the foxes that hand out at Patty Jewett. While I took this quite a while ago, my recollection was that there is a golf ball in his mouth.

After living here in Colorado Springs for 17 years, I didn't think there were a lot of things I did not know about our town, but I discovered one this week at the old St Francis Hospital on Pikes Peak Ave, just east of the downtown, west of Memorial Park. My mother-in-law is staying there for a while for recovery from surgery and other maladies, in the Select Long Term Care Hospital. What I discovered was a cafeteria with what I think is the best view of the city I have seen, at least for a place that serves lunch. Gazette employees have known about if for years, and even get a discount. The food is inexpensive, though not terribly healthy, but the view is why you go there, if you aren't visiting relatives in the hospital!

Can you believe gas was $1.65 this morning! I don't think it has been that low for years. I am not a conspiracy theorist as a rule, but the run up this summer, just before the election, really makes me wonder, who might have wanted to manipulate the oil market to such an extent? It is hard for me to believe that simple supply and demand are causing these kinds of swings.

Mortgage interest rates were down this morning, a pleasant side effect of more turmoil on Wall Street. With no points, 6 3/8%, lower with discount points. It seems like a reasonable place to be right now with the economy where it is. Lower would be even better!

I hate to keep repeating myself about the weather, but wow what a nice day, supposedly tying a record high of 73 degrees for November 18. It could just as easily be 23, and snowing at that!

#1 I need to correct a prior post on Colorado Springs cost of living items. Gas has dropped to $1.92 at the nearby local gas stations. I actually saw one station drop their prices 3 times in 24 hours this week!

#2 Yesterday we had an extended briefing from John Tuccillo, former chief economist for the National Association of Realtors yesterday. He had a couple of uplifting items, and some not so much

a. He indicates we are in a "garden variety" recession, not any sort of "depression", and expects the country will be completely out of it in 2010, with some pockets recovering sooner. He expected national unemployment to top out at 8%.

b. Because of all the bail out expenses, new government programs, etc, he expects interest rates to get all the way to 8% as well (we are currently at 6%, and it may trickle even a little lower in brief pockets). For that reason, he indicated anyone who can, should be looking at buying sooner as opposed to later.

c. He believes that the FHA loan limits that are currently scheduled to expire at 12/31/08 will be extended, and that the first time home buyer tax credit may be extended and expanded as well, in the lame duck session of congress.

d. He expects an expansion of households (and by extension, homes sales) to emerge once the economy gets back on track, and home sales will come "roaring back".

It was a productive session, and I was once again reminded what a great brokerage RE/MAX Properties is to be able to have such a high caliber speaker for our monthly sales meeting!

Today's photo was taken in the fall several years ago at Patty Jewett Golf course, in downtown Colorado Springs. The foxes have always been pretty bold and plentiful there, feeding on unsuspecting geese that frequent the water hazards, and handouts from golfers.

One of the questions people often ask, is what do things cost in Colorado Springs, and how does that compare with other places? While I can't speak for other places, I thought I'd list a couple of common expenses and what they cost here.
1. Gas - yesterday gas was $2.36 / gal at the King Soopers (Kroger) around the corner from our house
2. Milk - this has been running about the same as gas, around $2.49 / gallon
3. Rent - If you decide to rent (not recommended by this Realtor!), single family homes in reasonable areas start at around $1100, but plan to pay more like $1800 if you want the best school districts or a larger, nicer, newer home.
4. Property taxes - This varies by school district, but in general we figure on 3/4% of the market value as a planning figure. It is often less, for example I have a listing at $295,000 where the taxes are only $1600.
5. Sales Tax - 7.2% in the city of Colorado Springs, but it excludes groceries, labor etc.
6. Utilities - This depends on a lot of factors. Our own tend to average $300 / month for everything except trash service, but that is for a 4200 sf house with a hot tub. Obviously smaller, newer and no hot tub make them lower, but if you keep your house at 75 all winter or water your grass 3 times a day in the summer, it will be higher.

I voted on Thursday! It took an hour and a half to get through the line at the Chapel Hills Mall, but at least it is done now. I am so sick of political ads, pollsters, etc it will be great to have this election thing over with.

With all the money that is being thrown at the banks, you'd think mortgage rates would be at 5% or less right now, but no such luck. In fact rates have actually been rising, and are back up to 7% right now. So much for well intended programs. When the Fed will loan the banks money for 1%, it seems crazy that they turn around and charge 7% to loan it out to someone who qualifies for a mortgage.

We are still having a nice summery stretch of weather here in Colorado Springs. It is a little unusual to stay this nice this long, but you aren't hearing any complaints! The photo above was taken in the Maroon Bells a couple of weeks ago.

This morning's rate cut by the Fed says that the world banking crisis is far from over. With another stock market crash yesterday, and rate cutting today, they are definitely running scared. Seems like it wasn't very long ago that they were more worried about inflation than recession / depression. Such volatility can't be good for anyone. Speaking of which, it is fascinating by how oil prices could shoot up to such heights, and come back down again so fast, without gasoline prices following suit (although in fairness, we are at $3.30 / gallon here, not great, but not awful). This year will be etched into a lot of people's memories, both for the presidential election, as well as the energy, housing and banking catastrophes.

To add insult to injury, Colorado Springs Utilities is now proposing a rate increase estimated at 23%. This is allegedly because of higher natural gas and coal prices, as well as to cover lost revenue that they had planned on with new customers that never came on line, due to the lack of new homes being built. We currently have some of the lowest utility costs in the country, it will be interesting to see if we keep that position, you'd think other utility providers would have similar problems.

Today's photos are from the Maroon Bells again. The park is surrounded by jagged peaks, some of which are almost as interesting as the actual bells.

There is no official date that is considered mid-summer, but if there were, it would have to be about now. The hot and dry spell has continued, and Denver is about to have the most consecutive days above 90 in its history. Because of our elevation, we don't get as many, and even the hot days don't usually stay there as long as they have this week, it was still in the 70's at 10 last night.

Hot weather makes me think of mountains, and one popular mountain town near the Springs is Cripple Creek (shown above). Back we were new to the Springs in the early 90's, one of the big issues was how to save the old gold mining towns. They came up with a scheme to allow gambling in a few of them to see if it would work. Well, Cripple Creek, Central City and Black Hawk were the only 3 towns they chose, and it was to be limited stakes gambling. It worked, for the most part, and started a revival of sorts of these towns. Now the great issue is that they outlawed smoking in the casinos, and the casinos are unhappy because revenue is down. We aren't big gamblers, and if we spend $10 on nickel slot machines once every few years, it about does it. With the economy so poor, I almost laugh when they blame it on the non-smoking thing, I am surprised business is not down more, even tax revenues are down about as much. And then there is $4 gasoline. It is a little drive, and many people are being more careful about how much they are driving these days. Not to offend you smokers out there, but I like the new smoke free environment, and my guess is that when the economy picks up, so will their business. Ironically, the increase in the price of gold is also having an effect on these towns, spurring interest in expanding mining operations. The response? Not sure they want that, since the newer strip mining techniques might make the towns less attractive to gamblers. Go figure.

So how come gas prices haven't started dropping with crude oil prices? If gas prices dropped proportionally to the recent drop in crude, I think we'd be around $3.40 / gallon here, and while that is not exactly a bargain, it is better than the $3.90 or so we are at. I guess it is like interest rates, they go up easier than they go down, and there is not always a lot of rhyme or reason to them.

It is good to be back home in Colorado Springs after a visit to the Sacramento area for a graduation this past weekend. The cooler Colorado air felt good (I think it was 100 degrees at the Sacramento Airport yesterday vs 55 when we landed in Denver). There is a big difference between 100 degrees and 85 degrees (our expected high today). It was nice to visit with family, and Auburn, where they live, is very nice, but it was really nice to see our mountains again this morning when we got up. Pikes Peak has lost its snow that had fallen on it last Thursday, but it was pretty gorgeous, nonetheless.
I was struck once again at how much lower the cost of living is here in Colorado Springs, vs California. Even in Auburn, in the hills above Sacramento, homes that would be asking in the 300's and 400's would probably be in the upper 100's or 200's here. We attended a movie, where the matinee was $7.50 (vs $5.50), and gas was $4.40, vs $3.80 here.

How much cheaper is it to live in Colorado Springs than other towns? This mornings Gazette covered a story from the Council for Community and Economic Research showing Colorado Springs as 7.9% below the national average for cost of living. While we have always been a little below the national average, it is usually less than 5% below, so I was a little curious what they attributed it to. Turns out our gas prices did not jump quite as fast as some other areas of the country during the 1st quarter, and that was a big item. I went to Bankrate.com to see their cost of living calculator, and did a quick compare with San Bernardino California (we get a lot of Californians who come here to get away from the crowds. It was fascinating to see that, at least in this analysis, they indicate a family making $80,000 a year there, can live just as well for less than $60,000 here. The cost of housing seems to make a big difference. While I am not convinced the differences are quite THAT much, I know that many who come here find they can live better, for less.

Today's photo is from the green belt above the Old Farm area, where I just listed a 1900 sf 4bed 3 bath home for $219,900 .