The once skeptical housing market in Colorado is off to a strong start in 2015, a continuing trend from last fall, due the recent creation of local jobs and the historically low long-term mortgage rates. According to the US Bureau of Statistics, about 4,900 new jobs were created in Colorado Springs in 2014. Meanwhile, according to Freddie Mac, a mortgage buyer, the 30-year fixed rate mortgage has consistently remained below 4% since mid-November.
Brian Maecker, a local real estate broker, said customers are more secure about their jobs, and hence the market has been doing very well compared to the previous year. Lower rates have made home buying more affordable with better jobs boosting consumer confidence. Sellers who had their properties on sale for under $300,000 are having a wonderful time with multiple offers to choose from.
February saw sales rise by 25% compared to the same month last year. “What is truly amazing is that in spite of the terrible February weather, sales were up by 25% over 2014,” Joe Clement owner of Re/Max Properties commented. What’s happening here is that the resale market in Colorado Springs is recovering from the hard knock experienced during the recession. The market has seen a significant shift to the sellers as the number of buyers grows.
Another factor that has led to the demand is the so-called boomerang buyers, said Mike MacGuire, a partner with The Platinum Group. These are homeowners who lost their properties to foreclosure or short sales during the recession but want to get back in. Lifestyle changes have also contributed to the number of home purchases. Recently married young couples are looking to start a family while established families are growing and are in need of more space. While those with empty nests are looking to downsize. “All these things are adding up and creating demand in the marketplace,” Rick Van Wieran, a real estate agent with Re/Max Properties.
Even with these market gains, real estate agents are warning sellers not to become overly confident and overprice their houses. As a seller, your house should be in the same range as other houses in your neighborhood. Buyers these days will look through online resources such as Google Earth, Trulia and Zillow before making any physical visit. They already know what amenities are available, so an overpriced house is likely to have no showings at all.
Sellers who correctly price their homes have sold their homes within days of listing. This was the case for Colorado resident Sue Jordan. Never having sold any house before, she put up a listing on her Stetson Hills home of 18 years. Her house was put up for sale on Tuesday, and the following day, two potential buyers arrived. Jordan received an offer on Thursday, and her house went under contract on Friday for the full asking price of $219,000. “We got so many people asking to schedule an appointment for the next week, but the house had already sold.”
Buyers and sellers can now confidently take advantage of the strong market as the trend is expected to continue into the second half of the year.
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