Monday, June 15, 2015

4 Reasons Our Market Is on Fire Right Now

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Many people have asked why homes are selling so fast in the Colorado Springs area. Today, I will explain why our market is so hot and what current conditions mean for you!  

If you or someone you know is looking for a home in our current market, you've probably experienced the frustrating process of finding a home and writing an offer, only to find out that multiple offers have been made on the property. Why is this happening? I think we're seeing competitive conditions for 4 reasons:
  1. Interest rates are around 3%: Rates are likely going to go up by the end of the year by as much as a full percentage point. Every time rates rise by a point, you lose 10% of your purchasing power, so low rates are a huge motivator.
  2. Water cooler confidence level: A few years ago, there was a lot of talk about short sales and foreclosures. The atmosphere has completely changed. Now, people are talking about how much they're saving by buying instead of renting.
  3. High rent prices: Many people in Colorado Springs are spending $1,500 a month for a three-bedroom apartment. That may not be a lot for an apartment in San Diego, but here it's pretty pricey! There just aren't many units available in Colorado Springs.
  4. Low inventory of homes: It's nearly summer and we still can't get more than 3,000 homes on the market. Around 5-7 years ago, we had almost 7,000 homes on the market! There are many bidding wars out there for the best properties, which is great news for sellers, and bad news for buyers.
As you can see, there are many reasons our market is so hot right now. If you're a homeowner who wants to take advantage of these fantastic conditions, or if you're a buyer who would like help finding a good deal in this tough market, give me a call or shoot me an email. I would love to hear from you!