Buyers looking to move up to high-end Colorado Springs homes may find the second half of 2010 to be the right time. Inventories of Colorado Springs real estate are increasing. A special report by RE/MAX Properties in Colorado Springs based on current trends revealed that it would take a year and a half to sell the supply of homes priced from $500,000 to $749,000. At the current rate, it will also take five years to sell the Colorado Springs Colorado homes priced $1 million and up.
Interested buyers definitely have choices for better prices of existing upscale Colorado Springs CO real estate. That is in contrast to the first half of 2010 when prices of existing homes rose. At that time, we saw more new-home construction. In addition, foreclosure filings, which always drive down the prices, were not as prevalent during the first half of 2010.
After two years of significant improvements in the local real estate forecast, several factors are responsible for holding down prices:
- After seeing market improvements, more sellers put their properties on the selling block.
- Banks are approving short sales and putting an increasing number of REO properties on the market.
- After over two years, the government’s homebuyer tax credit of $6,500 to $8,000 expired on April 30, greatly reducing the incentive for buyers to get involved now.
- It is harder to qualify for a mortgage these days, so there are fewer buyers.
Qualified buyers today can go to the head of the class, taking advantage of record low interest rates and jumbo loan increases to reel in a dream home in Colorado Springs. The more properties on the market, the more benefit to the qualified buyer.
Nonetheless, given the economic forecast in America, some qualified buyers may be nervous about making the leap or committing to larger payments. Companies are still laying-off employees at an uncomfortable rate and small businesses are edgy. Fortunately, our local economy includes a strong government sector that looks to be the last to downsize.
On Sunday, July 25, 2010, Rich Laden’s article in the Gazette showed a new home under construction in Black Forest. He referred to the sentiment of experts, saying, “There’s a glut of high-end homes on the market that will likely continue or get worse this year.” Laden also quoted Brian Maecker of RE/MAX Advantage of Colorado Springs, “Prices are flat, and even dropping again.”
That means Ready, Set, Go if you are looking for a very nice home in a very nice community. Contact Ann Heiring of RE/MAX Advantage, Inc. at (719) 440-1010 or Toll Free Cell: 800-246-8978 to learn how our acclaimed city can work hand in glove to help you achieve your lifetime goals.
