Why It’s a Great Time to Buy a Home in Colorado Springs
The so called “real estate bubble” that we often heard about on the national news last year, has kept many home buyers from purchasing a home in fear that they will ultimately loose money. Many base this decision on the buzz they hear in the national news as opposed to understanding the facts and what is happening locally. The Colorado Springs real estate market is affected by overall national factors, yet we are also a unique submarket that requires greater understanding to fully appreciate what you are getting when you buy your new Colorado Springs home. radon mitigation colorado
Housing speculators were raising concerns that we would see a national housing bubble that would burst similar to a stock market crash. The buzz created anticipation and concern throughout the United States causing many markets to deflate resulting in high housing inventory, and declining prices, making selling homes more difficult. These conditions may make you think the real estate market is in bad shape. I will argue that this is far from reality, especially here in Colorado Springs.
Housing is an investment just like stocks, yet they are far from being similar and comparing a “housing bubble” to the likes of a stock market crash is a flawed argument. Your house is real property that provides both financial value as well as value in use. Everyone needs a place to live and that will never change. The desire that we have in quality housing affects our lives on a daily basis. You live in your home and can always improve real estate to increase value. The money you pay on your mortgage helps you build long term equity. Long term housing appreciations helps you leverage your money for even greater equity and wealth. The stock market on the other hand is often just a paper asset for most investors. If they feel their stock has no value they will dump it in the blink of an eye. When conditions are bad, this can create a crash in the market that you just don’t see in real estate.
If you are looking to buy a home fix it up, sell it for profit, and you are relying on double digit appreciation to help generate a profit, than yes this may not be the market for you. However, if you are looking at purchasing a home to live in, a home to rent, and if done correctly an investment home to fix-up and sell for a profit, than the current market may be perfect timing for you. After looking at the local real estate conditions compared to national trends you should feel confident that the Colorado Springs market isn’t as bad as you may think it is.
If you owned real estate in one of the larger markets like Los Angeles, Las Vegas, Phoenix, from 2002-2005 you experienced outstanding double digit appreciation for several years straight. This raised the housing prices at a very quick rate. Home buyers seeing the appreciation and potential in the housing market found that low interest rates and creative financing allowed them to purchase homes they otherwise would not be able to afford. Under the security of double digit appreciation everyone believed that buying a house was a bullet proof investment. Investors were flocking to these locations from all parts of the country seeking a quick buck. All these factors combined lead to a national frenzy that inflated housing prices well beyond a sustainable rate. These same locations are now feeling the effects of the outrageous growth in the housing market that outgrew local affordability. These markets are currently experiencing extremely high inventory and declining housing prices.