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Colorado Springs in the Midst of Sellers’ Market: What Should a Homebuyer Do?

Nicole Lee Advice Leave a Comment

Recent news has been coming out of the Colorado Springs real estate market, describing a scene that has become seller’s paradise.  Normally, in a real estate market, the supply of available houses is supposed to be around six months.  When this is the case, supply and demand are about even, and so you get a market where it’s about even for both buyers and sellers.  When the housing supply starts going way above six months, such as eight or nine, then you have what is called a buyer’s market.  Since the demand is lower, the value of a house becomes far less.

A Seller’s Market

However, the Colorado Springs market is seeing the opposite; the current available inventory of homes is estimated at about three months, which means this is a major sellers’ market.  This has led to projected growth in the costs of homes of about 6-10% for 2015, and this is after a tremendous 15% growth in the last twelve months.  When a demand outstrips supply in the market you begin seeing bidding wars for homes.  So instead of a seller worrying about a buyer trying to bargain down they now have multiple buyers trying to pay more than each other.

What the Future Holds

In addition to the recent dearth in housing supply, there has been a strong uptick in the buying of apartments, industrial buildings and retail buildings.  However, the office sector for real estate has still remained rather weak.  As we head into 2015, it will be important to watch all of these trends to get a good sense of the overall real estate market.  Housing will definitely continue to rise, but these demands will also spur new construction which in about a year’s time, will begin to increase the supply of housing on the market.  If you’re currently a homebuyer, now more than ever you will want to work
Despite this challenge for buyers in the Colorado Springs area, Ashford Realty Group provides access to all properties and homes listed for sale in El Paso County and provides the expertise to help homebuyers find the right home for sale in the area.  Fortunately for homebuyers, Ashford Realty Group’s agents have navigated markets like this before and know how to help homebuyers find just the right home and negotiate for a fair price even when the numbers aren’t in their favor.  This is an important attribute for homebuyers to look for when picking a realty company and agent to help them secure their future home.  with an experienced and reputable real estate agent that will provide you current and up to date home search tools while being prompt to any questions and inquiries you have.

 

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Nicole Lee