Unemployment Dropping in Colorado Springs

The unemployment rate for the state of Colorado and Colorado Springs is dropping, according the Colorado Department of Labor and Employment. A 7.2% unemployment figure for September is welcome news to the local area, and should help stabilize the housing market, along with everything else that has been hit by this recession. We'd rather be at 4%, but compared to 10%, 7.2% looks good!

The new Costco on North Nevada near I25 (University Village) opens later this month, making the 2nd Costco to open in the area in less than 2 years. I finally bit the bullet and joined yesterday, figuring that while Sam's Club on Woodmen is a more convenient location for me much of the time, with 2 stores that are both in major travel corridors (the other store is at Barnes and Powers), the prices and selection will make it worth it.

The sun is out again after yesterday's minor snow event. This time of year it goes back and forth between summer and winter a lot, and with 80 degrees last Sunday, we knew it was bound to go the other way at some point. Very little snow actually stayed on the ground, and it is melting as fast as the sun can find it.

Today's photo was taken Sunday up in Basalt (near Aspen, about 4 hours away), where there was still some color left on some of the trees. Early season wind storms stripped a lot of the hillsides of their aspen leaves, but the valleys of the Frying Pan and Roaring Fork Rivers were very pretty. Independence Pass was still open, but normally closes later in the month when the snow gets more serious in the high country.
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Ski Season Isn't Over Quite Yet

I just got back from Copper Mountain from a couple of days of skiing, and am excited to go back again tomorrow. While the extremely warm early spring is good golf weather down here in the Springs, we still had a blast skiing, and the scenery was amazing as always. It is starting to melt, but the slopes are still well covered, and sometimes some spring slush can be just the ticket to soften up some of the moguls for those of us who aren't pro bump skiers.

The new programs coming out of Washington for the housing industry sound positive, but I am skeptical they will have the affect that the press has been touting. While some are gleefully assuring us that rates will hit 4%, we should be happy if they just hang around 5%. Not that I wouldn't like to see 4% interest, but there are too many factors pushing against that happening, not the least of which is the multi -trillion dollar borrowing the government itself is doing!
It was a gorgeous sunny day today, with a little summery looking clouds once in a while. I spent most of it working, but it was still great!

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

Today's paper had an interesting article about graduation rates of Colorado Springs area high schools. It was interesting to me that the districts with the top test scores (12, 38 and 20) also had the highest graduation rates (typically mid 90's). Also, a couple of districts that have typically suffered in the area of test scores also had lower graduation rates (2 and 11). The good news was that almost every district in the city had graduation rates above the national average (except 2 and 11) See complete details at The Gazette.

Speaking of Colorado Springs area schools, many have ballot initiatives, and that brings up the story of when I tried to vote earlier today. The Chapel Hills Mall has early voting (along with lots of other goodies, including a Department of Motor Vehicles office), and since it is right across the street from my office, I thought it would be a quick stop. WRONG! I think everyone in the city had decided to vote today, I've never seen lines like that in a regular polling place! So I grabbed a sample ballot, and figure I'll either go again at a better time, or just vote at my precinct on the 4th.

The ballot itself is huge this year. Part of this is because of something we call TABOR, or the Taxpayers Bil of Rights, that requires all tax (or spending) increases of any kind to be voted on by everyone. It kind of hamstrings the state legislature, and taxes are not popular here, but it makes for some very ugly elections sometimes, with initiatives that are so complicated it would take an hour to vote if you had not prepared in advance. I think I would prefer we let the elected officials do their job, but I suppose if we did that, who knows how high taxes would be. As it is, our taxes here (income, sales and property) are pretty low. I am excited that my youngest kids are voting in their first presidential election this year!

Colorado Springs is not immune from the craziness in the financial markets right now. Interest rates shot up to 7% yesterday along with the freefall of the stock market. But while all this was going on, gas prices fell almost 20 cents ($2.93!), and it was a gorgeous day, so I guess you have to put things in perspective.
Yesterday was also our office's Luxury Home Tour (this link will show you what we saw), and we saw some really beautiful homes, all in the $600's. They ranged from mountain lodge style homes, to country style rural playgrounds, and it was really fun. Yet another reason I enjoy being a part of RE/MAX Properties.
Maybe the most important thing that happened yesterday was the opening of Arapahoe Basin and Loveland ski areas. Ok, maybe not that important, but still great? Opening day of ski season for me is a while down the road still, but it is always fun to see the first ones open. Generally the conditions are terrible for these openings, and you don't want to scratch your equipment up on the exposed rocks.
I will be glad when the election is over, however it turns out. Last night's presidential debate was much better than the last one, it seemed like the questions were much more interesting, and there was less repetition of the stump speaches, but I'm pretty convinced that whoever wins, very little will really change.
Today's photo is from a couple of weeks ago at Rocky Mountain National Park.

One of the reasons I like working with Colorado Springs local builders is that I like how they think. There is a commitment to community, to the customer and to their suppliers that gives you that "warm fuzzy" feeling you are working with someone who cares. A case in point was a conversation I had yesterday with Lee Bolin, president of Saddletree Homes. We had a lunch engagement we were rescheduling, and in the course of the conversation, he mentioned they were dropping their prices by 5% for a while, essentially to "employee pricing" levels, to ensure continuity of work for his subcontractors and employees. His comment to me that hit me hard was this (paraphrased): When you've got 20 plus years of experience working with the same subs, you have a commitment to their well being as well. That is what I want for my clients. These are tough times for builders, and I respect that kind of commitment.

This was contrasted with a client who called yesterday, to tell me that the large national builder who had built their home had abandoned all responsibility for the covenants and / or HOA for their area, and wouldn't even give them a contact for someone who might be able to help with covenant issues. This builder had closed all of their local operations as soon as the economy softened, along with several others.

Today's photo is of a hike we took Saturday out of Frisco. Hiking in Summit County is really accessible, and there are so many great trails, it is hard to pick one sometimes!

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.

The implosion of the financial markets is predictably having at least some impact on the mortgage industry in Colorado Springs, if for no other reason than they both compete for the same funds. Generally when the stock market tanks, interest rates go down, however, this has not happened quite yet, as they are still hovering around 6% despite the Dow closing below 10,000. Mortgage guidelines continue to tighten, however, the new rules are not all unreasonable. They are simply bringing the rules back in line with what have been common sense rules historically. By paying attention to the percentage of income people are making in house payments, and requiring reasonable credit scores and documentation, it is a bit like closing the barn after the horses have already gotten out, but it has to be done. Most of these rules are not that strenuous, and will be good for the market longer term.

I am getting a chuckle (between bouts of nausea) out of the new court fight between CitiGroup and Wells Fargo over Wachovia Bank. Citi made a sweetheart deal with the backing of the FDIC, and Wells figured out it was worth a lot more than that, and moreover did not need federal funds to do it. Now CitiGroup wants a court to award them $60 billion to cover their "lost opportunity" to steal the bank. Is there no shame? As things like this develop after the passing of the "bailout bill", on top of the millions in last minute bonuses at Lehman Brothers before it went under, is it any wonder that people are disgusted with the banking industry in this country?

I am a sucker for mountain scenery. The top photo today is, of course, the famous Maroon Bells, near Aspen. The lower photo is Mount Sopris, taken at Carbondale. Both pictures are from Sunday, October 5, 2008.

Fall is probably my favorite season, in Colorado Springs, or almost anywhere else we go. I love the cooler weather, the color, the lack of crowds (football games excepted of course!), and the general feeling of change in the air. Even the smell of wood smoke at night and of the leaves in the woods when we hike, is special. The smell of apples, cinnimon and other fall food is great too!

We spent our anniversary weekend this year up in the mountains enjoying the fall. It is almost over in some areas, and hasn't hardly even started yet in our own yard. Funny how that works. The weather was such a variety. We left on Friday afternoon with very summery, mid 70's sunny weather. It was kind of cool and wet in Breckenridge where we stayed, and was that way all day Saturday, though it was dry enough for some nice hiking. On Sunday, we expected to wake up to snow, and instead found partly cloudy skies with some nice patches of sun, which followed us all the way to Aspen. Then we ran into snow last night on Independence Pass, coming back from Aspen, a vivid reminder that winter is around the corner.

The 1st shot above was of the golf course in Vail as we drove through yesterday on the way up to Aspen. The 2nd is a stand of aspen up in the Maroon Bells that caught my eye as the classic "aspens again the blue sky" shot. One again, I got lots of photos, and I'll try and share some of them over the next several posts.

Colorado Springs home sales statistics for September 08 aren't official yet, but it looks like we finally have a year to year INCREASE IN UNIT SALES! This is the first time since May of '06 that the year to year figures show an increase (5.6%) Prices are still soft, the average is down 6.3%, but this is really good news for us. We recently have been told the Denver Metro area has been upgraded to Stable from Declining as well, which mean that regionally, the worst is likely over.

The "bailout plan" looks like it is back on. There is a lot at stake, and after the prior fiasco in the House of Representatives, there are high expectations this version will pass. If it does not, we can expect more turmoil in the financial markets for the foreseeable future, and likely see a deepening recession. No one (even in Washington!) wants that.

Today's photo was from Friday 9-26 at Rocky Mountain National Park. It was amazing to be able to be so close to these magnificent elk.

Rocky Mountain National Park is about 2 1/2 hours away from Colorado Springs. I had not been up there for some time, and yesterday decided to go elk hunting there - with my camera of course. It is surprising to me that we don't go more often. I can't say enough good things about the spectacular scenery, incredibly abundant wildlife, and the serenity of the place. Fall is the absolute perfect time to go. I got so many good photos, I'll spread these out over some time.
I have to say it was nice to get some time away with my cell phone off. With all the wrangling going on in Washington over the "bailout package", it was probably going to be a quiet day anyway!

The fall color season in the mountains above Colorado Springs has begun. I say begun, because while there are stands like the ones shown above, much of the aspen forest is still very green. Unless we get some nasty windy weather, this promises to be a longer color season, which is great! This shot was taken on 9-20-08, right on Highway 67 near Cripple Creek.
We got some other good shots yesterday while we up there, but I am going to share them over the next few days, so stay tuned.
Fall marks a change in the real estate market here as well. There is a kind of seriousness that grows, less "looking for fun", and more focused buying. The inventory shrinks, as less serious sellers leave the market place. Not that activity stops. In fact, the fall months tend to run at about 2/3 the sales rate that the peak summer months run, so it is still a busy season, it just has a different tone to it.
I'm anxious to see how much of a difference this big bailout program will make in business conditions. Ideally, interest rates will stabilize at a lower level, say the mid 5's, and buying activity will pick up as people realize that this is the time to make their move.

Colorado Springs was not the showcase of the Democratic National Convention, but our near neighbor to the north, Denver, got some nice coverage out of the deal. Mile High is about 1 hour from here, and it is nice knowing that the Denver Broncos NFL football, Avalanche NHL Hockey, Colorado Rockies MLB baseball, and Nuggets NBA teams are all so close, and play in some really world class venues. Whatever your politics, it is fun to have some sports teams to root for.

Speaking of sports, the quintessential Colorado sport, skiing / snowboarding, celebrates a major pre-season milestone this weekend, with the major equipment and pass sales beginning. Lift tickets at most resorts are in the $85 range for one off visits, and season passes or 4 packs are the best way for Colorado residents to beat the high cost of riding. We'll probably go with 4 packs to Copper Mountain this year ($119 for 4 visits), as gas prices and slow real estate sales will be putting a crimp on our families style. Normally a season pass for unlimited riding is $399.

We got a chance to check out the new emergency at Memorial Hospital North last night. My wife apparently hurt herself at the YMCA in a workout, and it flaired up badly on her late last night, so we drove the 1/2 mile to the ER (we could have walked, but she really was not feeling too good :-) It is a beautiful place, and before I even got the car parked in the nearby lot, she was already being treated. If you have to spend the night at the ER, this is the place to do it!

We finally got a foreclosure property under contract yesterday. It took a full week, 3 or 4 rounds of back and forth negotiating, but I think the house will be a good one for this client, and it is by the cleanest foreclosure I've ever shown, with very little that needs doing.

We also had a closing delayed for a day as a result of miscommunication between lender and buyer (not my buyer or a lender I would normally use :-) This could get interesting for the buyer, as he is scheduled to deploy to Iraq next week, and needs to be moving in this weekend. The processing department of your lender can make all the difference between a good purchase experience and a bad one, hopefully this will end up as just a minor inconvenience for the buyer and seller, but it is was another object lesson in using the best lender possible for your loan. I use Dana Hines at Adams Bank for this very reason, she never has these kinds of glitches.

Today's photo is from the top of Copper Mountain this spring, we really enjoy taking the lift up and hiking down, and was the view looking back toward Frisco from Copper.

Tonight the snow level is supposed to drop to 10,000 feet, and the rain and clouds we have here today make me believe it. We were up in Summit County on Monday, and it turns out we also got a dusting in the high country last Sunday night. This shot is from the top of Mount Royal, above Frisco, and is of Grays and Torreys peaks, both 14ers on the Continental Divide.
We try and get away just before school starts every year for my wife's birthday, and it is usually Breckenridge, with activities spread around Summit County. We aren't "hard core" hikers, but thought we'd try the Mount Royal trail, which you can pick up in downtown Frisco. The views were well worth it, and I'll try and mix in a smattering of photos over the next week or so. More hardcore hikers consider this a tourist hike, at only 3 hours round trip, but it is quite steep, and different sources call this either 1350 or 1600 ft of vertical and frankly I can still feel it today, so maybe I'm really just a tourist anyway? We really enjoyed it, and after all, what is wrong with being a tourist, even in your own back yard? For me, this is part of why we live here.
One of my favorite sayings is this: When you buy a house in Colorado Springs, you get the rest of the state of Colorado as your back yard!

Short sales and foreclosures were a major topic at this morning's sales meeting. The context? Discourage your sellers from pursuing these routes. The long and "short" (pun intended) of it, is that there are longer term repercussions in terms of damaged credit, inability to own again for a long time, tax liabilities, deficiency judgments, insurance rates, and even job possibilities being affected by these things. If at all possible, don't do it was the message we heard.

What is the best solution when you owe more than your home is worth, and you HAVE to sell? Find a source of credit to fund the shortage that can be paid off over time after the closing. Especially if the shortage is not huge, usually the result will be a happier future.

The weather has been pleasantly cool and even wet the last few days, with the highs around 80. A big warm up is on the way though (94 on Saturday!), I may have to look for another opportunity to go up to Breckenridge, or somewhere else where it will be cooler! Today's photo is from 2 weeks ago, downtown Breckenridge

Barack Obama came to town yesterday, and spoke to a select audience at UCCS, aka University of Colorado, Colorado Springs, or CU Springs. Colorado Springs is not normally a big stop on the democratic presidential "train", and it was interesting that he chose to make this stop at this time, since everyone will be in Denver in August for the Democratic National Convention. This is normally viewed as a Republican stronghold, but who knows how this next election will go? He sure picked the right place to talk about increasing the size of the Army and Marines, although he did not mention the Air Force.

It was great to get some rain yesterday. It never really got very hot, and the rain was very refreshing and much needed. Maybe the wildflowers will finally come out. Today is supposed to be pretty nice, and maybe even some more rain before a scorching hot weekend. I don't think we have actually really gotten to 90 degrees yet, but Sunday is supposed to get to 94!

Today's photo is from Snowmass, taken last June.

Independence Day, 4th of July, whichever you want to call it, it is a great holiday in Colorado Springs. Some of the surrounding small communities still have little parades with kids on bikes and toddlers in wagons. The "big show" in Colorado Springs proper is the Memorial Park celebration, complete with the Colorado Springs Philharmonic Orchestra free concert, and a fireworks display that opens with a battery of howitzers from Fort Carson, as part of the 1812 Overture. Other area fireworks displays are at the Air Force Academy, Fort Carson, Palmer Lake, and Manitou Springs (though I heard they were cutting our fireworks for fire danger reasons this year). We will be spending the 4th with a large group of old friends.
Part of the reason this is such a big holiday here, is the number of active duty and former military personnel. One study puts that number at close to 21% of the adult population. Certainly with 5 military bases (Air Force Academy, Peterson Air Force Base, Shriever Air Force Base, Fort Carson, and NORAD), Colorado Springs has a strong patriotic feel to it.
With the oil crisis, continued problems in Iraq, a housing and automotive recession, rising unemployment, the stock market tanking, fires burning all over the West (especially California), floods in the Midwest, and on and on, it is easy to forget how great life really is, especially for us in the United States, and even more especially for us in Colorado Springs. I'm hoping to make this 4th of July Thanksgiving Day, in addition to Independence Day.
Today's photo is from late last June at Independence Pass, just east of Aspen. I tend to associate it with the 4th of July weekend, because we spent the 4th up in Snowmass with our son a few years ago, and really enjoyed the scenic beauty of this magnificent pass over Highway 82. It is closed for 1/2 the year because of snow, and when it opens, takes an hour off the drive from the Springs to Aspen / Snowmass.

Official July statistics for Colorado Springs real estate sales won't be out until after the 4th of July holiday, but preliminary figures show that while our sales continue to be anemic, some good news has started with prices and supply. Prices have been rebounding since December, and both the average and the mean price have increased to $256,824 and $222,000 respectively. The percentage of distressed units has dropped sharply, to 17.65%, from a high of 26% in February. It remains to be seen whether this is a trend or a blip, but I have felt for a while now that the percentage of distressed units has been drag on prices. The inventory of unsold homes has dropped almost 4% since last June.

We have some new clouds on the economic horizon, with Hewlett Packard announcing they will be shifting employees from some Colorado Springs operations to New Mexico starting next year, and to Ft Collins. The Fort Collins folks may take the transfers, as there are some great lifestyle issues to be had in Ft Collins, but the New Mexico transfers will not be as popular. We'll see how it shakes out. By then we should be seeing more returning troops to Ft Carson from Iraq.

Today's photo is the Blue River from downtown Breckenridge along the river walk. Today will be the hottest day of the year so far, around 90, and the I always think of the cool mountain air and ice cold waters of the mountains on days like this.

We are getting ready to have a family reunion of sorts up in Breckenridge this week. Our California relatives that are coming out are suffering some amazingly hot weather, in the hundreds, and are looking forward to some days where it might not even hit 70, although it will be sunny. The temperatures are so much cooler at 10,000 feet than they are even at 7,000, it is really a nice summer break when hot weather hits. We plan to take full advantage of the hiking and biking trails in particular, plus some general R&R.

Today's photo is from a few years back, taken at Crater Lake in the Maroon Bells, near Aspen.

The end of ski season is always a little sad, but yesterday's closing day at Breckenridge was really great. The antelope were out in numbers in South Park, and I saw a fox practically in the parking lot at the ski area. There was a lot of snow for this being the end of the season, and I was a little sorry I got there as early as I did, because in the warmer weather, it needs a little time to soften up after the freeze / thaw cycle. Coming home to 75 degree weather was nice, but it was a little weird to change into shorts! The view from the top of Wilkerson Pass of the west side of Pikes Peak is always a tempting photo, so here it is again.

The inventory of unsold homes in Colorado Springs held during January at 5386 homes, from an already low point at the end of December, and up only 2.6% over last January. This is VERY good news for those of us who make our living in this industry, because it means we are finally making progress toward a more balanced market, from the lopsided buyers market we have had. No doubt interest rates are helping, along with fewer sellers who are just "testing" the market, and hopefully fewer foreclosures going forward? I showed property yesterday again, and only one of the homes was bank owned, and only 2 were vacant. January statistics probably won't be published until Monday, but it appears we will have a pretty light closing month at under 600 homes closed during January, but with as many pending as there are, February will look pretty good.

This winter seems to be running a little colder than usual, I don't remember so few days above 50 degrees, and so many single digit nights, but the sun feels good, and the snow we've had has been continuing to melt off quite quickly. The roads were dry again by dinner time last night after an overnight snow.

Todays photo is from a trip up to Copper Mountain last March with my brother and his family. They are true winter lovers, and we had such a great time!