Featured Broker

Kathy Genz

Colorado Springs!  For many people, this city brings to mind images of the Colorado Rocky Mountains and perhaps Pikes Peak or Garden of the Gods.  For those who have been here, exploring these natural areas was probably a highlight of their visit.  For others it may have been their visit to the Air Force Academy or the Olympic Training Center.  Colorado Springs is a unique and diverse city.  Growth over the last 20 years has been tremendous and at times the infrastructure groans under the impact of so many new residents.  It is a thriving city, with effects being felt from the recent bank debacles and stock market freefall, but generally doing okay.

There is a tremendous real estate buying opportunity in Colorado Springs and the Pikes Peak Region in 2009.  Prices have fallen since 2007, but not nearly to the levels felt by markets such as Florida, Phoenix, Las Vegas, or California.  We did not have the huge increase in prices over a very short period that these other markets experienced.  Colorado Springs saw steady growth with appreciation hitting around 11% in the best year.  Our norm is closer to 5-6%.  When the real estate market recovers from the malaise that is being experienced now, I anticipate it will be a quick jolt back to higher prices and many will find themselves priced out of the market once again because of the combination of increasing values and inflationary effects on interest rates.  We are truly seeing a perfect storm right now, especially for investors looking for income properties. 

Five military bases help provide a floor for economic activity in Colorado Springs and with the expectation of upwards of 10,000 troops coming to our local bases over the next few years, the demand for rental homes will increase.  Inflation will also drive rental rates up and with positive appreciation once more, investors will be happy they bought in 2009.  As buyers who held back approach the market a few years down the road, they will find they are in the rental market because many of the 2009 opportunities for buying at lower prices will be gone.  The most desired homes always sell, even in a down market, but there will be increased competition once again for these homes as buyers realize they are missing the opportunity to buy and jump back into the market.  That will create new opportunities for sellers as they also get back in the market to feed demand from hungry buyers.

PikesPeakFacts.com is a new resource for consumers to stay on top of our market.  In an effort to educate consumers, the Pikes Peak Association of Realtors has made this free website available to the public.  It is updated monthly with the latest statistics and comparisons to previous years and months.  At the end of February, 2009, there were 4996 single family homes available in the Pikes Peak MLS.  That was a 1.4% increase from the month before, but a 10.3% decrease from the year before.  Less inventory is one of the first positive signs pointing toward an improving market.  With less homes available, demand from increasing numbers of buyers will help stabilize the market.  About 10% of homes are selling in any one month at present, so sellers still have to price well to attract the buyers looking now.

The new $8000 tax credit for first time homebuyers will help some market segments as these buyers decide the time to buy is now.  With a median home price 10% below where it was in February, 2008, buyers will find great choices in 2009.  One third of sales in recent months have been distressed properties and sellers find themselves competing with these properties in the marketplace.  As buyers scoop up these well priced homes, and they are, opportunities will once again open up for sellers who are sitting back waiting for economic recovery.

Nothing ever stays the same, and the Colorado Springs area has what it takes to lead the nation out of real estate doldrums.  Recreation, employment, quality schools, and great people to have as neighbors are appealing to people visiting the Pikes Peak Region and many decide to come back to live.  Colorado Springs has everything from condos to multi-acre horse properties and mountain homes to prairie homes with mountain vistas.  No matter whom you are, Colorado Springs could be your next choice of a place to call home.  Give us a call when that day arrives and we’ll be happy to help you find your home at the foot of Pikes Peak.

Kathy

Kathy Genz, Broker Associate, RE/MAX Properties, Inc

Certified Residential Specialist (CRS)

Certified Distressed Property Expert (CDPE)

Seniors Real Estate Specialist (SRES)

Graduate Realtor Institute (GRI)

Luxury Home Professional (LHP)

Quality Service Certified (QSC)

Comments (1)

Subscribe to this comment's feed

Colorado
written by Irina Riley, April 12, 2009

Great article, Kathy!

• 
• +0
• 
•