I have heard a lot of talk about when is the best time buy a home. Is it now while the market is a buyer’s market or should one wait because prices may go down even more? I would like to address this issue with the law of 72. Created by Albert Einstein, the Rule of 72 is a mathematical shortcut used to determine how long it will take for an investment to double. This rule is widely used in Real Estate to determine when the value of homes will double in the market. I will be using this rule to highlight why now is the best time to invest in a home rather than later.
The formula is:
Years to double = 72/ interest rate
Although for the purpose of calculating real estate we will use appreciation rate rather than interest rate.
The average appreciation rate in Colorado Springs: 5.8%
Years to double = 72/5.8
Years to double = 12 years (rounded)
Therefore:
The median prices of new homes in Colorado Springs:
Now (2008): $264,995
In 12 years (2020): $529,990!!
This is a substantial increase in median home prices. The obvious choice would be to invest in real estate now while prices are still low. Still not convinced that the law of 72 holds true? Let’s take a look at some historical data:
In April 1996, 12 years ago, the median price of a home in the United States of America was $140,000. This past April (2008) the median price of a home in the United States of America was $246,100. that is an increase of $106,100 also seen as a 5.6% appreciation rate.
Historical trends have always shown the real estate market increasing in price. Despite many people over the years stating that real estate being a bad investment, it would seem that real estate is not only a great investment but NOW is a better time to buy than tomorrow because prices have historically gone up AND mathematically been predicted to go up.
For more information about the Rule of 72, Real Estate in Colorado Springs, or Campbell Homes new homes being built in Colorado Springs and the Pikes Peak region feel free to contact me at knoble@campbellhomes.com.
Tuesday, May 27, 2008
The Rule of 72
Wednesday, May 14, 2008
The Truth is Out About the Housing Market!
The media has been reporting for sometime that the housing market is bad and that now is not a good time to buy a new home. I beg to differ. With interest rates at an all time low and the supply of new homes starting to decline it’s only a matter of time when supply and demand take effect and prices will start to climb again. It’s a known fact that when demand is high and supply is low prices rise. Therefore NOW is the best time to purchase a new home since prices are reasonable and stable, and there is still enough supply of homes to suffice for the demand that we are starting to see. The following is a fantastic article from REALTY TIMES covering this very topic.
Columnist: 'Media Is Wrong About Housing Slump'
Realty Times feature article by Blanche Evans
Why buy a house now? You've been getting bad information. Here's why.
The financial press is worried that they might have gone too far - paralyzing the nation into recession by piling on housing. So they're finally beginning to question the indexes where they get their data, and whether the news is really as bad as it seems. Slowly but surely, headlines are changing from Don't Buy a Home Now to Is It Time To Buy?
We said it here first on Realty Times - that consumers aren't getting the full story. Indexes can be misleading because of the locations, prices, types of housing, and rates of increase they track.
In late April, Robert Shiller, founder of the Case-Shiller Index, announced that there was a good chance housing prices would fall further than the 30 percent drop during the Great Depression.
Shiller has plenty of reason to be negative - he makes money when people buy housing hedge funds, licensed with data obtained through his company Macromarkets LLC.
Now, finally, one brave journalist is writing that Case-Shiller is flawed.
In his story "Home-price data has its flaws," Chris Plummer of MarketWatch slammed both Shiller's Index and the Associated Press for being "grim reapers."
For the first time, S&P Index Committee Chairman David Blitzer "acknowledged his organization's overall and metro-market readings paint an incomplete picture."
No kidding. The index covers only 20 markets, heavily weighted to the most volatile metros in the nation.
Plummer also lampooned the AP for writing that "despite that index's limited seven-year history, home prices plunged by a record percentage at their fastest rate ever."
He also notes, "The glaring discrepancy in this case is that 17 of the 20 metro areas posted record annual declines, and yet 78 percent of the 330 metropolitan regions that the NAR tracks reported price increases ... "
Bravo, Plummer. But the rest of the financial press still has a long way to go.
When Shiller says home prices are going to fall 30 percent, not one reporter who covered the story asked this simple follow-up question: "Bob, during the worst part of the Great Depression, one in four people were out of work. Our unemployment rate is a little over 5 percent. So what's going to drive home prices that low?"
Instead, no one did even the minimum Wikipedia search to find out what conditions were really like 75 years ago.
What that means is not only are the indexes misleading - the reporting is worse.
Right now we have mortgage interest rates three points below historical norms. We have housing inventories five months greater than balanced markets. Combine that with unemployment that is a half percent lower than the recession of 2003, and you have excellent homebuying conditions.
Stop listening to the media. Go buy a home.
Copyright © 2008 RE/MAX International Inc. 5/6/08
Thursday, April 24, 2008
Buying a New Home In Today's Market
There are many steps you need to take when buying a home but many Americans fail to realize that homeownership is actually more attainable then they might thing.
Top 5 steps of buying a new home.
Figure out how much you can afford.
When if come to buying a home it’s not a guessing game it’s a numbers game. How much you can afford is based on income, credit, currently expenses and the interest rate. Most people use a online mortgage calculator to figure this out but those numbers really do not drive into the issues of credit, expenses, income, or what mortgage plan you will qualify for. The best way to figure this out is by talking to a mortgage professional. If you are in Colorado Springs or plan on buying a new or used home in Colorado Springs I would recommend you call Donnie at Peoples mortgage.
Examine your needs
You really need to think about what you need in a new home or new neighborhood. If you are retiring and this is the last home you will live in then you might want to consider a ranch floorplan. If you have school aged children then researching the schools and looking into neighborhood parks and recreation might be important. Knowing your priorities before you shop will make it a lot easier to narrow down your search for a new home.
Decide on if you want to uses a REALTOR on go it alone.
If you are new to a town or think you will be wanting to look at ALL your options, a REALTOR is a great friend to have. Real Estate Agents know the areas inside and out. They know prices, neighborhoods, schools and usually are great at matching families up with communites that just fit. But be aware that not all REALTORS are made for your needs so makes sure you pick one you are comfortable with, and that represents you well before you sign any agreements. If you are buying a new home in Colorado Springs I would be happy to point you in the direction of some of the BEST Real Estate Agents in town.
Shop
Now for the fun part! Shopping for a new home can me tons of fun but if you don’t have an idea of what you are looking for before you start you can get burned out pretty quickly. Will you buy new or used? What side of town, what time of floorplan? It can be taxing but again if you do your homework before hand you could find your perfect match in a few days. In Colorado Springs there are several homebuilders and even more resale homes so have a game plan and get out there and have fun!! Oh most new home builders offer cookies in their models (just a hint). Feel free to read my blog about the advantages of buying new.
Buy
Okay it might not be all that simple but when you find that home that fits most of your wants and all of your must haves then you need to make an offer and sign the paperwork which will put you in the fast lane to ownership! YEA! You are almost done and yet the steps that follow the purchase agreement are the most stressful sometimes because you have to do a lot with mortgage people and paperwork. But I promise when its all said and done you will be so happy you got through it all because there is nothing better than sitting down in your new house and knowing this is all yours!!
Tuesday, April 8, 2008
House Huggers!
Keeping with my recent theme of built green I would like to show you how Campbell Homes has done their part in helping the environment by building Energy Star and Built Green Colorado Homes. Last year (2007) Campbell Homes built 53 homes all of which were certified by Energy Star! This is equivalent to:
· Eliminating the emissions from 37.10 vehicles
· Saving 20,352 lbs of coal
· Planting 5.30 acres of trees
· Saving homeowners $23,691 on their utility bills
Because of their contribution to helping build better energy efficient and environmentally friendly homes Campbell Homes was recently awarded the
ENERGY STAR for Homes Leadership in Housing Award!
Campbell Homes is proud to be a house hugger!
For more information about how you can become a Campbell Homes’ House Hugger visit us online at www.campbellhomes.com or call Kelly Noble at 719-266-9780 or email her at knoble@campbellhomes.com
below is a fantastic article about green building that I found in Newsweek:
http://www.newsweek.com/id/120128
Not Just for Tree Huggers
Despite the free fall in housing prices nationwide, green homes are still red hot.
Daniel McGinn
NEWSWEEK
Updated: 12:35 PM ET Mar 8, 2008
Rob Moody didn't set out to be a builder. After graduating from college with a biology major, he began work as an environmental-science teacher in Asheville, N.C. On weekends, though, he spent long hours fixing up the classic shingle-style home his family had owned for nearly a century. Then, after seven years in cinder-block classrooms, he decided to make a change. "My love for old houses fell together with my love for the environment," says Moody, 34, who launched The EcoBuilders to construct environmentally friendly houses. Today Moody's foremen drive pickup trucks that run on used grease from fast-food fryers. And whether he's building new homes or renovating old ones, he insulates them to the hilt, uses sustainable materials and recycles so much debris that he requires only the smallest Dumpsters. Clients love the approach. "We doubled production last year, and we'll probably double again this year," Moody says.
The predominant color in the building industry right now is red, not green. America's housing markets remain in free fall, as the foreclosure crisis continues and more homeowners discover their mortgage debt exceeds the value of their house. Last year the average home builder laid off a quarter of its employees; this year the industry estimates it will sell just 632,000 new homes, its lowest total since 1992. But amid this gloom, there's buzz about consumers' shifting demand toward "green homes"—and how builders with this expertise remain busy despite the bust. In a 2007 survey by the National Association of Home Builders, home buyers said they'd be willing to spend an additional $8,964 on a home if it could cut their utility bills. Throughout the industry, there's a sense that consumers have finally reached a tipping point. "It's taken almost as a fait accompli, that green building is where the market is headed," says Michelle Moore, senior vice president at the U.S. Green Building Council.
For all the professed consumer interest, though, the average home buyer knows little about green building. That's partly because it's a broad concept with several components. The most obvious attribute is energy efficiency. For some buyers, that means investing big money in fancy geothermal or solar technologies—but more often it simply means being diligent about using good insulation, efficient appliances, superior windows and designing the house to take advantage of the sun. Green houses also conserve water, often by using specialized plumbing fixtures. For some builders, going green also means limiting waste, sometimes by using "panelized," factory-built walls or recycling wood from older homes. Inside, green homes often feature sustainable materials, like countertops made from recycled glass.
For a public tired of stories about the latest health scare, green homes have another allure: they're often healthier. Since these homes are built more tightly than drafty older homes, many builders install systems to bring in—and filter—fresh air. Green builders typically use paints that are low in volatile organic compounds, and avoid the carpeting, adhesives and varnishes that often give new homes their distinctive smell—and that have been associated with health problems. When George and Dorrie Sieburg hired Moody to remodel their Asheville bungalow in 2005, this approach was a big selling point. "At the time, we were pregnant, and we wanted to build as green as we could to make sure it was safe for our child," says George, whose wife is expecting again.
As with many innovations, some of the biggest gains in efficiency come from using old-school materials that have been slow to catch on. Consider spray-on foam insulation, which fills and seals wall cavities better than the fiber glass used in most residential construction—but at twice the cost. As energy costs rise, however, more buyers are opting for it: sales of Icynene, the leading brand, grew 22 percent annually the past three years. When Jacob and Alecia Sessums added a master suite to their Asheville home, they opted for foam insulation, a multizone heating system and a superefficient tankless hot-water heater. As a result, their gas bill dropped from a high of $400 a month to $37. Says Alecia, 32: "For people in my generation, [going green] is the way you have to do it—there's not a choice."
For darker shades of green, homeowners typically take more-radical action. In Grapevine, Texas, the home Ross and Tami Bannister moved into last fall is so tight, "it's built kind of like an ice chest," says Ross, who marvels at how infrequently the heat kicks on even on the coldest days. While their house is filled with sustainable products, its most innovative functions involve water. Out back lies a 10,000-gallon tank that collects rainwater from their roof; the water is filtered and routed inside for household use. On the roof, solar panels heat their water. Ross says people are sometimes surprised to hear about the home's advanced technology, since it's hidden beneath the bones of a classic Texas farmhouse. "It wasn't like we built some sort of George Jetson-looking future house," Ross says. That's partly why their custom builder, Chris Miles of GreenCraft Builders, fields five calls a week from prospective buyers.
The biggest energy-savers can still require big investments. A photovoltaic solar system, which generates a home's electricity from the sun, can cost $40,000. Likewise, a geothermal system—which uses pipes to send water underground, where the heat stored by the earth's subsurface is converted into energy to heat and cool the home—has long been a budget buster. But as energy costs rise, the return on investment does, too. Last fall, when Shirey Contracting remodeled Sean and Lynn Dillon's home in North Bend, Wash., the couple spent $34,000 on a geothermal system. That's more than twice the cost of an ordinary heating and cooling system, but Sean figures it will pay for itself in six years. Along the way, they'll feel good about reducing their carbon footprint.
Builders are working hard to educate consumers about why such expenses can be worthwhile—and why a lot of green innovations can be done for relatively little money. New kinds of certifications will also help consumers understand the paybacks. In December, the U.S. Green Building Council began offering LEED certification (it stands for Leadership in Energy and Environmental Design) for homes; last month the National Association of Home Builders announced plans for its own green certification. Both use point systems that tally up a new home's earth-friendly attributes and award different levels of certification. In theory, a certified home will be easier to resell down the line, but green-building advocates also hope that the new yardsticks will make consumers pay more attention, the same way Consumer Reports and J.D. Power and Associates rankings became big influences on car shoppers a generation ago. Says home-building consultant Sara Lamia: "People will see how the house they're living in is costing them money, and it gives consumers a reason to buy a new home."
At times such chatter about how a shift toward green building might lift this moribund industry sounds like so much wishful thinking. So far most of the biggest builders are experimenting with only the most basic green innovations (like using Energy Star appliances); most of the greenest builders do only a tiny number of custom homes. "The smaller you are, the more your numbers might mislead you to thinking this is what matters," says Ivy Zelman, an industry researcher. Some environmentalists apparently believe builders are putting green labels on homes that aren't really environmentally friendly—an attitude that appears to have motivated arsonists who torched a neighborhood of newly built trophy homes outside Seattle last week, leaving signs saying BUILT GREEN? NOPE BLACK!
It's also apparent that some green innovations are used side by side with products that aren't so earth-friendly. At the International Builders Show in Orlando last month, the plumbing company Kohler showed off ecominded low-flow shower heads and bathroom faucets—but across its booth, it also displayed gigantic water-hogging showers and whirlpool tubs nearly large enough to hold residents of Sea World. Likewise, if you build a green home in the exurbs but still drive an hour to work, has your carbon footprint really decreased? These are questions Danielle and John Arnett have considered. Next month they'll break ground on a 4,600-square-foot home in Colleyville, Texas. They hope to include loads of green technologies—perhaps even solar panels and a wind turbine—but they're still building a house that's nearly twice the size of the average newly built U.S. home. They admit a smaller house would be greener, but in their neighborhood, where nearby homes range from 6,500 to 12,000 square feet, they say their new house will be downright cozy. "It sounds crazy … but it's really, really relative," says Danielle, who notes they reduced bedroom sizes in an attempt to downsize the design.
If there is a downside to this trend, it may be the growing number of green homeowners who'll brag about low utility bills the way golfers boast of low golf scores. But for builder Rob Moody, whatever motivates people to desire better-built homes, he's not complaining. "People know it's good for their pocketbook, they know it's good for the environment, and they like the badge," says Moody, who was in New Orleans last week working with ABC's "Extreme Makeover: Home Edition" on an earth-friendly project. Green homes may not spark the building industry's recovery, but in a world whose energy problems aren't going away, they certainly can't hurt.
URL: http://www.newsweek.com/id/120128
© 2008
Wednesday, March 26, 2008
Home builders going 'green'
This is an article I found online at http://www.kvue.com/news/state/stories/032608kvuebuildgreen-cb.bb053c.html#
Please enjoy!
Home builders going 'green'
10:39 AM CDT on Wednesday, March 26, 2008
By JEFF BRADY / WFAA-TV
DALLAS — According to a recent survey by the National Association of Homebuilders, buyers said they would pay an additional $8,900 for a certified "green" home.
But are "green" homes really selling better? We found it depends on the builder, the buyer and the neighborhood.
Better insulation is one factor that makes a "green" house "green." In one house we found, recycled newspaper does the job.
Elizabeth Newman has been building homes in Dallas for 18 years. Just last year, she went all "green."
"Before I started building 'green,' I had people asking about building green," Newman said.
So what does it take to get a "Green Built" label in North Texas? Upgrades in waste reduction (or saving trees), water efficiency, indoor air quality, energy efficiency, using recycled materials, and educating the homeowner are all factors.
The downside? Prices on "green" homes are $10,000 to $28,000 more than similar models.
One we found is priced at about $750,000. Newman sold it the same day we were visiting . But some Dallas Realtors aren't yet seeing homebuyers clamor for energy efficient models.
"I just don't have a customer base that is demanding that they want a 'green' home. Nor will they pay any more for it," said Realtor Tom Rhodes. "They'd much rather have high tech homes with all the wireless, and studies, and that kind of thing."
Still, other agents say certain neighborhoods and buyers expect it. The more custom-built the home, the more likely the buyer is to expect a shade of "green."
"They will reap the benefits from the electric bill, the tankless water heater, xeroscape, that kind of stuff," Realtor Margaret O'Brien said. "So I really think that even though the price point might be a little more, you could definitely sell it — and I think there's a market for it."
The Green Built certification is so new that there are no numbers available to indicate how many are being built. The more familiar Energy Sar rating is the next best thing, and about 40 percent of all new homes in Texas last year earned that rating.
E-mail jbrady@wfaa.com
Saturday, March 22, 2008
The dream of owning a home…
When I was a little girl I was known as a BIG time dreamer. I could make up all kinds of fantasies of princes and princesses in my mind. As I got older my dreams didn’t fade they just became goals. At the age of 13 I set several goals for myself and I was far to strong minded to not get what I wanted out of life….don’t kiss a boy until I was 16 (Check, on my birthday), get good grades in High School (Check), go to college (check), Travel (looking at 10 countries and counting now, Check) and even finding a career I truly loved (finally, check!)…but it was not until I entered the home building industry as a New Home Consultant for a National Builder did I realize the value of owning a home, and let me tell you I HAD to have my own home!
At first people told me it would be impossible because I was only 25 at the time, single, and just started off my career from college. But being the big dreamer that I was I not only convinced everyone I could do it and got them all on board but in May 2006 I signed the papers that would make me the owner of my very own 4 bedroom 3.5 bathroom home!
The reason I tell you this story is that anyone who has the dream of owning a home can own a home all they need is some support and a path to get them to their goal. You might not be able to buy your home the very day you decide you want one, but if you put your mind to it and work hard to build your credit, save a little money, and talk to the right people to help you do these things, you to can own your own home.
Home ownership is part of the American dream. It’s a status symbol of “making it”. But keep in mind that your first home is not always your “dream home”. My first home is not my dream home but it met my needs and because I invested smart and researched the right builder option for me I was able to find a home that not only met my needs but when I go to sell this home I will be able to transfer the equity I made to the next home which will be a little bit better then the one I have now.
Statistics show that in a lifetime the average person will own 4-6 homes and not until their 4th home will it be considered their “dream home”. I might have a few houses to go before I reach dream status but at least I have the goal in mind to reach my “dream home”.
Have you been dreaming of home ownership and don’t know where to start? There are several steps to take before looking into purchasing a home…
First of all check your credit. Borrowers who have a credit score over 700 are usually offered more financing options and a better rate but do not let a lower than 700 credit score detour you. I have seen people with credit scores in the 500s purchase homes. The idea is you need to prove that you have credit, you pay your bills on time, and how long you have had your credit. A mortgage advisor or Realtor can also help to discuss your credit options with you when it comes to buying a home. In fact most mortgage companies will pull your credit for a small fee and also can do a free prequalification.
The next thing you should do is find a Realtor. Realtors are experts in the business of helping people find homes. Just make sure your agent has your best interest in mind. If you happen to be looking for homes in Colorado Springs I have a whole lot of contacts I can give you. Meet with a couple of agents and DO NOT SIGN ANYTHING until you have decided that is the agent for you then you will sign an agreement stating that this person is your representative. Also you should know that as a buyer you do not have to pay for your Realtor but the seller will. So its basically free help for to you find what you are looking for. When I purchased my home I used BJ BURNS who was amazing in meeting my needs. Now you don't NEED a realtor to buy a home but its always helpful to have an expert on your side.
The third thing would be for you to BE REALISTIC. Again your first home is not your dream home; it’s just the home that meets your needs. It takes time to get to the “dream home" status, but that does not mean you don’t have to like where you will be living just know you can’t have it all on the first run…
There are several steps to home ownership but the important thing is you have the goal and the dream in mind. If you happen to be looking for a home in Colorado Springs, CO or if you have some general questions about home ownership please feel free to contact me and I would be more than happy to help you make your dream a reality!
And as always Campbell Homes has been making the dream of homeownership since 1965 so I always encourage you check us out at http://www.campbellhomes.com/
Wednesday, March 19, 2008
The Importance of Testimonials
Testimonials are an important part of any good business. When a company says they have a highly developed customer service program they will be able to prove it with a plethora of strong testimonials. A sales person can tell you all day long that their company is the best and offers the best product but unless they can back that up what’s the point in even listening? The best way to know if a company is going to take care of you is to see how they have treated their current and past customers.
Below are some of the testimonials Campbell Homes’ customers have been sending us over the years. We are proud to have the kind of reputation that can be backed by our homeowners and Realtor partners.
Testimonials:
As I write this note the October blizzard of 2006 is raging outside my home. Unlike most testimonies you receive my home was one of the very first you built in Briargate, back in 1982. I want you to know, after 24 years my home is as tight and strong as the day it was built. The wind outside is 50 mph but I can’t tell because the walls and windows of my home are so strong. I still have the original windows and they give me much lower power bills then most folks know. I live at the top of Briargate hill and have a two story home. I can’t hear the wind today. Thank you SO much for building a home so sound and secure.
-Pam S.
“When you grow up the son of contractor, like I did, you inherit an eye for craftsmanship. So when I saw the building materials that went into Campbell Homes, I knew this is where we wanted to be. Campbell Homes uses all the right name brands, and backs up their work with old fashioned attention to detail. What more could you ask for?”
–Scott Farrell
US Army - 21 years
“Sometimes you have to brave the cold to find a home that warms your heart. I know. I spent weeks looking at houses this winter, but I didn’t fall in love until I found Campbell Homes. Campbell Homes did so many things right, I was ready to move in while my home was still under construction! That’s how comfortable they made me feel.”
–Cavalene Regan
“A while back, we downsized to a townhome. But when room started getting scarce, we thought, ‘Hey, time to look into something a little more livable.’ Campbell Homes impressed us not only with their floorplans and craftsmanship, but their ethics. They showed us the kind of commitment they’re known for in this community, and we appreciated it.”
–Scott Vaughn
Realtor and Entertainer with
The Colorado Wranglers
“This is the first home I ever bought. So it was scary, as well as exciting.
Looking back, all I can say is, I not only picked a dream home, but a dream builder. Campbell Homes treated me like royalty—answering my questions, and walking me through ever step of the process—from start to finish.”
–Amy Tran
For more testimonials or more information about Campbell Homes please contact our Internet Concierge, Kelly Noble, at knoble@campbellhomes.com.
