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Monthly Archives

February 2017

Colorado Springs Housing Market Favors Sellers

By | Colorado Springs Real Estate | No Comments

Homes sellers in Colorado Springs have been experienced a real sellers’ market that has resulted in market time for homes listed for sale of less than 30 days and an increase in multiple offers which is driving up home prices. A healthy Colorado housing market would be a situation in which the supply of houses is around 6 months. This would be considered a neutral housing market, one that doesn’t favor buyer or sellers, it’s simply health. If the supply is more than 6 months, the market would favor buyers, if the housing supply is less than 6 months, this would be a sellers’ market. Currently the supply of homes in Colorado Springs is only about three months. Let’s just say we have a lot of very happy sellers who have seen drastic home price appreciation over the past year or so.

Benefit for Home Sellers

Sellers have seen the value of their home increase by as much as 10% over the past year alone and this is after two years of back to back price increases. The market is getting unaffordable for 1st time buyers who are excited to purchase their first home. Many first time buyers are having to choose condos or town homes instead of single family homes after meeting with a local agent who educates them on current home prices. It’s always a good idea to check out current prices on realtor.com, prior to meeting with an agent. This will service to set realistic expectations about what you can and can’t afford when you begin your home search.

Home prices are expected to continue to increase driven by lack of new construction over the past few years and historically low interest rates which have allowed buyers to purchase more house than they would be able to afford in a higher interest rate environment.

Many would be buyers are having to consider rental options. It is still possible to rent a nice home in Manitou Springs, Cimarron Hills, Woodland Park, Divide, Peyton, Woodmoor and Fountain for less than $2000 per month, however, as home prices continue to climb, we expect to see this begin to effect rental prices as well. It is often a balancing act to determine if it makes more sense to purchase a home or to continue renting.

Help For Home Buyers

Home buyers in CO Springs looking for assistance with qualifying for a mortgage, will benefit from the guidance they will receive when contacting a local real estate agent who will be able to connect them with a Colorado Springs mortgage lender. A few of the most active buyers agents include:

  • Monica Breckenridge and Pink Team with Pink Realty
  • Jeff Johnson with RE/MAX Real Estate Group
  • Treasure Davis with RE/MAX Properties

We have enjoyed working with Jason Daniels from RE/MAX as well as Ann Heiring. Both of these top agents are experienced and dedicated to their clients.

Although most real estate agents don’t specialize in working with renters, they may also be able to provide a recommendation for someone who can assist you with finding a house for rent. We always recommend that potential renters check craigslist, which is one of the best sources of homes for rent in Colorado Springs.

3 Reasons You Should Buy a Home in CO Springs?

By | Home Buyer | No Comments

As home prices have continued to soar across Colorado, many of the buyers we meet with for an initial consultation are on the fence about if it makes more financial sense to buy a home or if they are better off with a rental. The choice can often be difficult, however, it is still a great time to buy in Colorado Springs. Rent prices have increased the past few years along with home prices and current interest rates are still very low making homeownership relatively affordable. According to a recent report from Trulia, low interest rates make buying an average of 37.7% less expensive than renting. 

1. It is Expensive to Rent a House

The Colorado Gazette recently reported that rent prices in Colorado Springs are at a record high. This means that as home prices have increased, those investors who own the rental properties have been able to increase rents due to the increase in demand. It’s the renter who is essentially buying the house for the investor. Why not put that payment toward a mortgage instead and gain some equity in your home.

2. Interest Rates are Expected to Rise Along With Home Prices

Interest rates have already begun to rise a bit and with the Trump presidency, it is likely that mortgage interest rates will continue to rise the next few years. It is also expected that home prices in Colorado Springs will rise over the next few years, which will make homes less affordable. You’re better off locking in an interest rate and purchase price at today’s rates and prices vs. waiting.

Check current interest rates at wells fargo to see where they’re at today: https://www.wellsfargo.com/mortgage/rates/

3. Are we in Another Housing Bubble

No, the issues that contributed to the bubble in Colorado Springs during 2007 – 2010 and the subsequent housing crash are not present in today’s housing market. Bad lending and loose standards by the banks are what contributed to the market crash. The market during that time was really driven by investors and buyers who were not a good credit risk. This practice along with no money down loans and adjustable rate mortgages created a situation that was bound to fall apart. During the years after the bust, there were very few new homes being built and this created a lack of housing options for buyers in today’s market. This has contributed to the increase in prices over the past few years. 

If you have been thinking about buying a house or are interested in getting out to view the current homes for sale in our community of Colorado Springs, we would be happy to connect you with a great real estate agent who can show you around and answer all of your housing questions. They can also help you to get qualified for a mortgage. This will give you an idea of what price homes to look at. 

If you are still on the fence about if it makes more sense to buy a home vs. renting a home. There is a youtube video that discusses the pro’s and con’s of each.