07.10.06
Colorado Springs Real Estate: Market Update 07/09/2006
Colorado Springs Real Estate: Market Update
July 9, 2006
Yesterday morning, an article printed by The Gazette confirmed our latest suspicions about the Colorado Springs real estate market. The current inventory of homes is climbing. We know that this is the case, but the most recent statistics indicate higher numbers than I’ve seen in other reports. According to The Gazette and the Pikes Peak Association of Realtors, the current home inventory is about thirty percent higher than it was at this time last year. Is this something to be concerned about? Yes and no.
First of all, The Gazette confirmed that we have more homes on the market right now than we did in 1989 (when Colorado Springs was considered by many “The Foreclosure Capital of the World”). The Gazette didn’t spend much time explaining this and I think we should have seen some base numbers to accompany their analysis. I think this inventory presents us with a different market. However, I don’t think we are seeing the same conditions that we did in the 80s. There are many, many more people living in Colorado Springs (and surrounding areas) now than there were in the 80s. The variety of loan programs available are more abundant now, as well. This means, there is a MUCH higher demand for homes now. So, although we see more homes on the market, there are also more Buyers available to demand them.
Another important thing to consider is that the current median home price (currently at $225,000) is continuing to climb. This means that our market is still able to support continued appreciation and further supports the notion of an increasing buyer demand. This is extremely important in encouraging home ownership as the choice between owning or buying is impacted by the rate of appreciation. I like the fact that our appreciation is around four to seven percent per year in most areas. We are not a hyper-market, but we aren’t sleeping either. This means that there are fewer barriers to home ownership in our Colorado Springs real estate market.
Finally, even with the increased supply, I still do not believe we are in a Buyer’s market. Sellers do have to be on their toes to make a sale happen quickly (under 30 days) here, but they aren’t forced to market at crippling list prices. While it’s always important to select hard-working, honest and knowledgeable representation, it is now utterly imperative that Sellers get a good Realtor to list for them. Sellers must be sure to do their homework and find someone who is knowledgeable in market trends and the most effective selling tools. Failure to do so could mean a weak sale…or worse, no sale at all.
