07.08.08
Colorado Springs New Homes
It’s easy to see what type of activity is going on with new construction in and around Colorado Springs by looking at the current builder permits. It’s interesting to see how many people are making improvements (as opposed to starting new construction projects). In 2006, we saw a total of 2,426 new home permits pulled. In 2007, the number dropped drastically to 1,475. This year (as of May), we are on track to come back up again. The current number of permits pulled is 852. If that continues at the same pace, then we could see as high as 2,044 by year end. This is great because it shows that new home builders are showing their confidence in the market.
Conversely, the remodeling permits in 2006 were 3,777. In 2007, they were 3,302. As of May of 2008, we had already seen 4,177! That’s more than in the entire 12 months of the previous year! I think it’s because more people are investing in their homes and preparing them to sell at a later date…when the current inventory stabilizes.
For now, most builders are motivated to keep moving forward. This means they do not want to hold on to inventory that isn’t moving. I just met with some home Buyers at a Journey Homes rancher in the Falcon community of Parkview at Woodmen Hills. This home they had under contract about a year ago at $225,000. Unfortunately, they had some family issues to contend with and had to terminate their contract at that time. Now that things are better, they came back and the same home is still on the market…at a discounted price of $189,900. This is a brand new home, never lived in. It’s got a finished basement and backs to open space. What a deal! To top it off, we are going to get a free central airconditioning system installed and still have some of the closing costs paid by the builder. Not all builders are extending $35k discounts…but many are. I would venture to guess that they won’t be doing this in 6 months.
Take a peek at the current Colorado Springs new home inventory. And contact the Springs Living Team if you see any you would like to view in person. We can negotiate some great incentives for you…and our commission is paid by the builders, so great representation comes at no expense to you.
