ANNUAL STAT PACK Data through December 31, 2012

ANNUAL RESIDENTIAL REVIEW

Welcome to the ERA Shields Stat Pack. The intention for providing this infor-mation to you is to educate you on the current local real estate market so you can better make decisions for you and your family. Real estate markets vary from city to city as well as neighborhood to neighborhood. When the national media reports on how the real estate market is doing, it is reporting on national num-bers and it is likely very different from how your neighborhood is performing. You will find factual data within The Stat Pack from which you may draw your own conclusions. On the last page you will find a brief summary.

QUICK FACTS ABOUT 2012 ⇒ The number of Active Listings for the year was down nearly 10,000 ⇒ The number of Sales for the year were up 708 units (over 8% increase) ⇒ 823 more Single Family Building Permits were pulled in 2012 (50%+ increase) ⇒ The Average Inventory Level was just 4.2 months in 2012 ⇒ The Average Sales Price was up nearly 5% while Median Sales Price jumped 7% ⇒ 67% of sales in this year were under $250K compared to 72% in 2011 ⇒ Foreclosure starts dropped another 4%

The data found within the ERA Shields Real Estate Stat Pack is based on information from the Pikes Peak REALTOR® Services Corporation (RSC) or its PPMLS. This content is deemed reliable; however RSC, PPMLS and ERA Shields Real Estate do not guarantee its accuracy. Data maintained by RSC does not reflect all real estate activity in the market. Additional sources include the Colorado Springs EDC, El Paso County Assessor, El Paso County Trustee, Colorado Springs HBA, PPAR, The Gazette, The CSBJ and NAR.

QUICK LOOK AT 2013 ⇒ Number of sales will approach 10,000 for the time in 7 years ⇒ The number of under contracts hit 1337 (up 20%) and highest number by far in past 5 years ⇒ Sales prices will continue to increase at a sustainable rate (5% range) ⇒ Single Family Building Permits will increase but at a more sustainable rate ⇒ The number of homes on the market will increase ⇒ Inventory rate will bump slightly ⇒ Higher price ranges will continue to awaken from their deep slumber ⇒ Foreclosure starts continue their steady decline ⇒ Mortgage rates will actually bump-up from their historic lows

QUARTERLY PRICING TOOLS Determine how your neighborhood is performing

3-Month Area Comparisons for Single Family & Patio Homes This chart is ideal for helping you determine how your neighborhood is doing. If you are considering

selling your home, this information is just one tool you can reference to assist you with pricing your home strategically. Call me if you need assistance utilizing this graph.

*Inventory = The number of months it would take to sell through the current active listings at the current sales rate if no other homes came on the market.

**DOM = Days on Market for the homes which actually sold.

For October 1, 2012 - December 31, 2012

Area Listings Solds DOM Inventory Avg List $ Avg Sales $ Black Forest 103 41 77 7.5 $ 517,706 $ 431,318

Briargate 158 137 75 3.5 $ 327,836 $ 300,601

Calhan 23 9 56 7.7 $ 176,522 $ 104,089

Central 160 116 63 4.1 $ 208,225 $ 157,273

Drennan 11 6 106 5.5 $ 122,273 $ 94,317

East 120 147 72 2.4 $ 208,175 $ 184,695 Ellicott 28 11 134 7.6 $ 192,957 $ 181,230 Falcon 45 26 96 5.2 $ 257,510 $ 174,192

Falcon North 151 107 85 4.2 $ 275,562 $ 251,662 Fountain Valley 307 307 74 3.0 $ 206,562 $ 178,182

Manitou 24 12 103 6.0 $ 409,973 $ 313,113

Marksheffel 50 29 77 5.2 $ 267,137 $ 214,934

Midway 8 6 122 4.0 $ 196,388 $ 114,850

Northeast 158 216 66 2.2 $ 262,384 $ 217,817

Northgate 96 88 74 3.3 $ 471,365 $ 340,957

Northwest 81 67 83 3.6 $ 437,952 $ 301,951 Old Colorado

City 52 42 63 3.7 $ 225,766 $ 176,549

Peyton 30 12 79 7.5 $ 299,122 $ 264,324

Powers 149 205 73 2.2 $ 229,106 $ 206,236

Rock Creek 6 2 266 9.0 $ 797,000 $ 407,250

Southeast 142 116 60 3.7 $ 135,000 $ 127,545

Southwest 199 133 86 4.5 $ 678,986 $ 361,838

Tri Lakes 165 117 100 4.2 $ 502,716 $ 383,914

Ute Pass 31 10 115 9.3 $ 420,358 $ 251,660

West 59 51 44 3.5 $ 583,319 $ 256,740

Divide 45 29 130 4.7 $ 480,142 $ 269,009

Woodland Park 72 49 78 4.4 $ 389,572 $ 285,906

QUARTERLY PRICING TOOLS Determine how your neighborhood is performing

3-Month Price Range Comparisons for Single Family & Patio Homes This chart is ideal for helping you determine how your neighborhood is doing. If you are considering selling your home, this information is just one tool you can reference to assist you with pricing your

home strategically. If you have questions on how to properly use this data, call me.

List Price  Active Listings  Solds  Days on Market  Inventory 

   Supply  Demand  Days to Sell  Months 

Under $75,000  84  50  91  5.0 

$75,000 to $99,999  135  91  79  4.5 

$100,000 to $124,999  189  108  104  5.3 

$125,000 to $149,999  340  170  110  6.0 

$150,000 to $174,999  343  247  98  4.2 

$175,000 to $199,999  385  233  101  5.0 

$200,000 to $224,999  280  191  87  4.4 

$225,000 to $249,999  309  193  100  4.8 

$250,000 to $274,999  219  129  103  5.1 

$275,000 to $299,999  189  114  118  5.0 

$300,000 to $324,999  118  69  109  5.1 

$325,000 to $349,999  154  81  129  5.7 

$350,000 to $374,999  92  55  105  5.0 

$375,000 to $399,999  134  49  116  8.2 

$400,000 to $424,999  65  29  103  6.7 

$425,000 to $449,999  78  31  130  7.5 

$450,000 to $474,999  47  20  152  7.1 

$475,000 to $499,999  64  27  141  7.1 

$500,000 to $549,999  61  14  101  13.1 

$550,000 to $599,999  50  24  155  6.3 

$600,000 to $649,999  38  9  152  12.7 

$650,000 to $699,999  35  15  222  7.0 

$700,000 to $749,999  18  3  145  18.0 

$750,000 to $799,999  27  5  148  16.2 

$800,000 to $849,999  8  4  304  6.0 

$850,000 to $899,999  22  2  350  33.0 

$900,000 to $949,999  5  0  n/a  n/a 

$950,000 to $999,999  10  1  112  30.0 

$1 mil to $1.50 mil  50  6  109  25.0 

$1.5 mil to $2.0 mil  15  1  126  45.0 

$2.0 mil & above  9  0  n/a  n/a 

ANNUAL PRICING TOOLS Determine how your neighborhood is performing

12-Month Area Comparisons for Single Family & Patio Homes This chart is ideal for helping you determine how your neighborhood is doing. If you are considering

selling your home, this information is just one tool you can reference to assist you with pricing your home strategically. Call me if you need assistance utilizing this graph.

*Inventory = The number of months it would take to sell through the current active listings at the current sales rate if no other homes came on the market.

**DOM = Days on Market for the homes which actually sold.

For The Year 2012

Area Listings Solds DOM Inventory Avg List $ Avg Sales $ Black Forest 103 187 112 6.6 $ 517,706 $ 398,793

Briargate 158 611 76 3.1 $ 327,836 $ 291,569

Calhan 23 32 86 8.6 $ 176,522 $ 108,933

Central 160 593 73 3.2 $ 208,225 $ 171,154

Drennan 11 22 144 6.0 $ 122,273 $ 90,371

East 120 593 74 2.4 $ 208,175 $ 173,007 Ellicott 28 52 105 6.5 $ 192,957 $ 151,558 Falcon 45 90 95 6.0 $ 257,510 $ 184,154

Falcon North 151 384 83 4.7 $ 275,562 $ 246,183 Fountain Valley 307 1155 71 3.2 $ 206,562 $ 175,220

Manitou 24 62 132 4.6 $ 409,973 $ 279,078

Marksheffel 50 115 71 5.2 $ 267,137 $ 214,331

Midway 8 20 134 4.8 $ 196,388 $ 178,920

Northeast 158 829 71 2.3 $ 262,384 $ 217,152

Northgate 96 345 81 3.3 $ 471,365 $ 357,980

Northwest 81 324 82 3.0 $ 437,952 $ 315,296 Old Colorado

City 52 184 80 3.4 $ 225,766 $ 172,450

Peyton 30 52 118 6.9 $ 299,122 $ 229,117

Powers 149 898 73 2.0 $ 229,106 $ 200,432

Rock Creek 6 8 180 9.0 $ 675,500 $ 245,500

Southeast 142 510 67 3.3 $ 139,968 $ 125,596

Southwest 199 487 97 4.9 $ 678,986 $ 338,953

Tri Lakes 165 456 100 4.3 $ 502,716 $ 385,458

Ute Pass 31 39 107 9.5 $ 420,358 $ 205,231

West 59 177 73 4.0 $ 583,319 $ 270,811

Divide 45 121 111 4.5 $ 480,142 $ 209,763

Woodland Park 72 192 97 4.5 $ 389,572 $ 270,059

ANNUAL PRICING TOOLS Determine how your neighborhood is performing

12-Month Price Range Comparisons for Single Family & Patio Homes This chart is ideal for helping you determine how your neighborhood is doing. If you are considering selling your home, this information is just one tool you can reference to assist you with pricing your

home strategically. If you have questions on how to properly use this data, call me.

List Price  Active Listings  Solds  Days on Market  Inventory 

   Supply  Demand  Days to Sell  Months 

Under $75,000  84  209  104  4.8 

$75,000 to $99,999  135  394  70  4.1 

$100,000 to $124,999  189  515  81  4.4 

$125,000 to $149,999  340  830  78  4.9 

$150,000 to $174,999  343  961  67  4.3 

$175,000 to $199,999  385  984  69  4.7 

$200,000 to $224,999  280  712  65  4.7 

$225,000 to $249,999  309  796  74  4.7 

$250,000 to $274,999  219  513  77  5.1 

$275,000 to $299,999  189  472  86  4.8 

$300,000 to $324,999  118  304  89  4.7 

$325,000 to $349,999  154  322  95  5.7 

$350,000 to $374,999  92  218  78  5.1 

$375,000 to $399,999  134  227  94  7.1 

$400,000 to $424,999  65  109  101  7.2 

$425,000 to $449,999  78  133  98  7.0 

$450,000 to $474,999  47  69  95  8.2 

$475,000 to $499,999  64  88  106  8.7 

$500,000 to $549,999  61  83  84  8.8 

$550,000 to $599,999  50  88  133  6.8 

$600,000 to $649,999  38  38  133  12.0 

$650,000 to $699,999  35  46  109  9.1 

$700,000 to $749,999  18  16  84  13.5 

$750,000 to $799,999  27  20  110  16.2 

$800,000 to $849,999  8  8  195  12.0 

$850,000 to $899,999  22  16  241  16.5 

$900,000 to $949,999  5  4  236  15.0 $950,000 to $999,999  10  3  263  40.0 $1 mil to $1.50 mil  50  21  206  28.6 

$1.5 mil to $2.0 mil  15  6  310  30.0 

$2.0 mil & above  9  2  346  54.0 

INVENTORY DATA COMPARING DATA FOR THE PAST 10 YEARS

These graphs compares the number of homes on the market to the number of sales  and determines how many months it would take to sell through the current listing inventory. Most economists consider 6 months to be a balanced market.  As you can easily decipher, the inventory levels are actually too low. 

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SOLD DATA COMPARING DATA FOR THE PAST 10 YEARS

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Annual Sales

These graphs show the total number of Solds. The results from the 4th Quarter are exactly where we hoped they would be.  For the market to be at a healthy sales rate, the annual number of Solds should be around 10,000.  in 2013 we will hit this barrier. 

PRICING DATA COMPARING DATA FOR THE PAST 10 YEARS

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Average

Median

The Average & Median Sales Prices for the same month over the past 10 years. The “bubble” is rather noticeable in 2004‐2009.  When looking at the Annual graph below you can  quickly pick out the First Time Home Buyer Tax Credit of 2010.  If 

you were waiting for home prices to bottom out, they did in 2009 & 2011. 

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Quarterly Sales Prices

Annual Sales Prices

ODDS DATA COMPARING DATA FOR THE PAST 10 YEARS

The price range your home is within dictates your odds of selling. Generally, the lower your price, the more potential buyers. Despite the low inventory levels, the vast major‐ity of sellers don’t sell. The homes priced right and in excellent condition are successful. 

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Annual Odds of Selling

Quarterly Odds of Selling

ANNUAL DATA COMPARING DATA FOR THE PAST 10 YEARS

Foreclosures continue to improve but need to be closer to the 2500 mark. Building Starts jumped over 50% from 2011, obviously that is not sustainable. 

2013 New Home Starts

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Foreclosure Starts Forecast

SUMMARY OF 2012

     If we could bottle up 2012, we would. The type of growth we saw in just about every sector of the residential real estate market was positive and sustainable; sales prices up 5%, sales rates were solid, building permits up, and foreclosures down.  Perhaps the most exciting part of all this good news is most of these occurred at sustainable rates.      The main driver for the year’s performance was again historically low mortgage rates.  How‐ever, the second half of 2012 actually saw consumer confidence improve and when you com‐bine this new found confidence with the historically low mortgage rates, you see the market show real signs of health.      Additionally, buyers actually showed up and started buying homes.  Over the past several years the buyers in the market were looking for both screaming deals and incentives (tax breaks, down‐payment assistance, closing costs paid, etc…).  In 2012 buyers began to realize they no longer had the advantage (especially in the $400,000 and below market) and actually started looking for values which the few sellers that were out there provided just that.      The sellers who were able to avoid being a distressed sale (foreclosure or short sale) had to make tough financial decisions in recent years.  Those solid decisions along with actual appre‐ciation on their home in 2012 began to give these homeowners hope.  It also made for some lively negotiation during the year as buyers were still thinking they had the advantage when in fact most did not.      One of the most surprising results from 2012 had to be the jump in new home construction.  In 2011,  1563 new homes were started and in 2012 that number jumped 52% to 2380.  Despite the large jump, this number is still low when you consider how many people live in the area.      As 2012 closed the numbers in all sectors really strengthened, perhaps the most notable   being the number of homes currently under contract.  With over 1300 transactions in progress, the residential real estate market leaves 2012 with quite a fireworks show. 

2013 FORECAST      As 2013 rolls in, the prospects for residential real estate in the Pikes Peak region are very promising.  The performance of the real estate market in 2012 was trending up in all categories and more importantly at sustainable rates.  Now with consumer confidence rising in the real estate sector it makes sense these trends will continue well into 2013.      Since 2007, builders have seen a major downturn in the number of new homes started.   During this timeframe the need for housing has only increased due to natural population growth and the continued national trend of people moving out of rural areas.  New home build‐ers will see significant increases in 2013 with the number of units built.  With the vast majority of these builders being local, it is likely they will manage this opportunity well.  The days of the big national builders overbuilding in our market are not likely to return anytime soon as none of them have much presence any longer.      The younger generations (X & Y) will continue to show their approval of owning a home.  Those lucky enough to have a career job, are being paid well and they like the idea of owning a home.  They also see real estate as a viable long‐term investment to pay for their kid’s college and as a vehicle to retirement.      The move‐up buyers will play a major role in 2013 as home values are low but rising.  They realize that their $200,000 home may have lost 15% of its value ($30,000) but so did that $400,000 home ($60,000).  With rates still insanely low and home prices increasing these     buyers will realize the opportunity.      The Baby Boomers will again make an impression.  Many rightfully put off “right‐sizing” over the past 6+ years due to the poor market.  Now this group is able & willing to act on their want for main‐level living.  Don’t confuse “right‐sizing” with “down‐sizing”, most of this group will purchase a home similar in price and/or size, the only thing they don’t want is stairs.      The lone concern out there in 2013 is mortgage rates.  If rates were to unexpectedly bump up to 5% over the next year it would injure the housing recovery in coming years.  It is crazy to think how homeowners just a few years ago use to think a rate at or below 7% was excellent.      Expect an impressive performance by the local residential real estate market this year.