Living Colorado Springs » New Construction http://livingcoloradosprings.com Life is Good in Colorado Springs! All about life here, real estate, and more! Sun, 05 Feb 2012 00:51:16 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Colorado Springs New Construction Will Stay Slow http://livingcoloradosprings.com/blog/colorado-springs-new-construction-will-stay-slow/ http://livingcoloradosprings.com/blog/colorado-springs-new-construction-will-stay-slow/#comments Tue, 26 Apr 2011 14:30:43 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=2446 There has been a lot of press these days about how new home construction needs to increase in Colorado Springs. While I personally agree, the reality is that people will start buying new homes more frequently when they no longer can find enough selection of existing homes. For that to happen, more people are going [...]]]> There has been a lot of press these days about how new home construction needs to increase in Colorado Springs. While I personally agree, the reality is that people will start buying new homes more frequently when they no longer can find enough selection of existing homes. For that to happen, more people are going to have to jump back in to the real estate market.
We have not been building many new homes for several years now, and pent up demand for newer homes is increasing. With high unemployment, a general retraction in peoples belief they can afford the real estate they have, etc, it just hasn’t made that much sense. But over time, people graduate from college, get married (or divorced), they have kids (or their kids move out), families grow (or shrink), and the need for newer larger homes (or smaller ones!) will come back. It’s called household creation. Until it does, we probably have just the right amount of new building going on.
In these conditions, when does new construction make sense? When an existing home won’t do the job. With over 4600 homes for sale, it is logical to first see what’s already there, because it is not that likely that a builder can build a new home for less than what an existing home would cost, unless they have gotten an AMAZING deal on the land it sits on (which does happen occasionally). Sometimes there are features that someone wants or needs that just don’t seem to exist in any existing homes. Sometimes the condition of a resale home just can’t match up to what someone feels they need. Some new developments have amenities that were not available when many of our existing homes were built. There are lots of reasons, but they all get back to the economic trade off: are they worth the price.
When the number of buyers increases to the level where the existing inventory no longer is adequate, new construction will pick up again. It won’t be instant, and it won’t happen all over the area, but it will happen. Some of us in the real estate industry can’t wait!

]]> http://livingcoloradosprings.com/blog/colorado-springs-new-construction-will-stay-slow/feed/ 0 Colorado Springs Real Estate May Be Affected by Banning Lewis Bankrupcy http://livingcoloradosprings.com/blog/colorado-springs-real-estate-may-be-affected-by-banning-lewis-bankrupcy/ http://livingcoloradosprings.com/blog/colorado-springs-real-estate-may-be-affected-by-banning-lewis-bankrupcy/#comments Fri, 29 Oct 2010 15:10:43 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=2006 The Banning Lewis Ranch, the largest development in the history of Colorado Springs, filed for Chapter 11 bankruptcy yesterday (10/28/10) according to the Colorado Springs Gazette. Chapter 11 is a reorganization, not a liquidation, and it is all of our hope that the company can work out the details in a way that keeps at [...]]]> The Banning Lewis Ranch, the largest development in the history of Colorado Springs, filed for Chapter 11 bankruptcy yesterday (10/28/10) according to the Colorado Springs Gazette. Chapter 11 is a reorganization, not a liquidation, and it is all of our hope that the company can work out the details in a way that keeps at least the active portion of the development (the northwest corner of the 20,000 acre plus area!) moving ahead.

  I won’t bore you with a history of the property, but the place is HUGE, extending from Woodmen Road in the north, to south of the Colorado Springs airport, on the east side of town along Marksheffel Road. Much of the land is still just cattle and pronghorn grazing. The plan was for eventually as many as 75,000 homes, really the size of a decent sized city in its own right. The initial phase looks very nice, and despite the relatively large number of  homes for sale in Colorado Springs, it makes for a nice new construction option for our buyers, with new homes starting in the low 200′s (really!). The charter school seems to be doing well, and clubhouse facility and pool are very attractive to new home buyers. This will likely continue, but some builders may get a little nervous about expanding their presence.

My guess (or maybe just hope?) is that some of the southern sections of the ranch will be broken off to appease creditors, so that the core of the northern portion can be kept intact. The concepts behind the development seem sound to me as a Realtor, and its Achille’s heal has always been that the development is just too massive. By breaking off some chunks that may not be built on for 50 years anyway, it seems like a logical way to get to the other side of the problem. This development is one of the main sources of new lots in the city of Colorado Springs for the future, and it does not seem likely that it will be allowed to completely fail.

What if the Banning Lewis development were to completely fail? In the past, when the economy turns up again, the developed lots get picked up for a song by other developers, and new homes that are very inexpensive often get put on them. There may be some property tax implications. There is a Banning Lewis Metropolitan District that collects approximately 40% of the taxes for the area (50 mills). In the past, these special improvement districts have had a hard time staying afloat when the developer goes under, in some cases leaving existing homeowners with massive tax increases needed to continue servicing bonds. It is unclear whether that will at all be the case here, but it is an issue that will bear watching. Here is a document containing more details and contact information for the Banning Lewis Metropolitan District: Banning Lewis Metropolitan District General Disclosures.

]]> http://livingcoloradosprings.com/blog/colorado-springs-real-estate-may-be-affected-by-banning-lewis-bankrupcy/feed/ 0 Getting the Lead Out http://livingcoloradosprings.com/blog/getting-the-lead-out/ http://livingcoloradosprings.com/blog/getting-the-lead-out/#comments Wed, 21 Apr 2010 13:48:33 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=1541 1978 was a very good year, at least from an environmental standpoint. That was the year they quit using lead based paint in homes, fondly referred to as LBP by some of us in the business of selling houses. 2010 will be another important year, and April 22 may be one of those dates that [...]]]> 1978 was a very good year, at least from an environmental standpoint. That was the year they quit using lead based paint in homes, fondly referred to as LBP by some of us in the business of selling houses. 2010 will be another important year, and April 22 may be one of those dates that ‘lives in infamy’, because new rules are going into effect on April 22 that will forever change the economics of doing major home renovations on homes built prior to 1978.
EPA (US Envronmental Protection Agency, occasionally joked about as the Economically Prohibitive Agency) has a web site that explains more about what is going on, but the basics are as follows.

  1. Contractors doing work on homes built prior to 1978 will have to become certified
  2. Procedures required for doing work on homes built prior to 1978 will slow down the construction process, and make it more expensive on older homes
  3. Homeowners doing work on their own homes they live in are exempt, but not landlords, ‘fix and flip’ renovators, or pretty much anyone else doing work on a home they do not live in
  4. Fines are HUGE for non-compliance

Before anyone goes and jumps off a bridge (or decides to inhale lead based paint dust :) ) over this, it isn’t really ALL bad. Over time, some contractors will probably get more efficient with the processes, and some initial ‘scary’ quotes for work will likely diminish. While projects like window replacement will likely continue as they are needed (the older windows really aren’t very energy efficient), there will be at least some projects that people may elect not to do, such as removing walls. Projects that don’t disturb more than 6 square feet of wall space don’t require the new certification and procedures, so little stuff won’t be affected.
The other unintended side effect of these rules, is that homes built prior to 1978 that have NOT been updated much, are going to become a bit harder to sell. Fix and flip and landlord type investors are not going to be as likely to buy them, so the demand will be more from owner occupants. This group has had an insatiable appetite for newer homes all along, so demand for the older homes will likely fall, at least until people can get their heads around these regulations.

]]> http://livingcoloradosprings.com/blog/getting-the-lead-out/feed/ 1 How Big is That House? http://livingcoloradosprings.com/blog/how-big-is-that-house/ http://livingcoloradosprings.com/blog/how-big-is-that-house/#comments Sun, 14 Mar 2010 16:49:30 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=1310 When it come to buying a home in Colorado Springs, some of the most often asked questions I get are about how we describe the size of a house. Because every area of the country tends to do things a little different, I thought I’d cover some of the common issues.

When we measure a [...]]]> When it come to buying a home in Colorado Springs, some of the most often asked questions I get are about how we describe the size of a house. Because every area of the country tends to do things a little different, I thought I’d cover some of the common issues.

  1. When we measure a house, it is based on the outside dimensions. When a builder displays square footage, often it is from a CAD (computer aided design) system that is working with inside dimensions. Not that we often measure homes anymore. Colorado Springs agents almost exclusively work from the tax assessors records, or an appraisal that included measurement, to ensure that they don’t make a mistake. These are adjusted for obvious errors if they are noticed, such as the assessor shows a full basement when their isn’t one.
  2. Basements are included in our total square footage. They often are NOT included in other areas of the country for several reasons. Many regions have climates ill suited for basements, either because of earthquakes, soil conditions, high water tables, bedrock or high humidity. Our climate is dry, and most homes include a basement that could be finished at some point, so we include that in our MLS (Multiple Listing Service) as part of the Total Square Footage. If it is finished, it is also included in the Finished Square Footage. If basement space is not of interest, we often resort to using the Above Grade Square Footage, which does not include basement space. Some of our national builders do not include total square footage in their sale literature. This is a big confusion to some of my buyers when we are looking at new construction
  3. Garages are NOT included in square footage.
  4. Unheated sun rooms are not SUPPOSED to be included in square footage, but occasionally they are, so if there is an unheated sun room, it is best to double check

So if you live in an area without basements, and are looking to buy a home in Colorado Springs, it is best to pay close attention to the whole basement issue. Your 2,000 square foot ranch style home you currently live in, would likely be a 4,000 square foot home in Colorado Springs. Got a 3000 square foot 2 story? The same living areas would be a 4500 square foot home here.

]]> http://livingcoloradosprings.com/blog/how-big-is-that-house/feed/ 0 Cumbre Vista – Affordable New Homes in District 20 http://livingcoloradosprings.com/blog/cumbre-vista-affordable-new-homes-in-district-20/ http://livingcoloradosprings.com/blog/cumbre-vista-affordable-new-homes-in-district-20/#comments Wed, 24 Feb 2010 00:36:22 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=1252 Today I stopped out to Keller Homes in Cumbre Vista to see their new model and discuss a current transaction I’m working with them, and thought I would share a little about this great neighborhood. Cumbre Vista is a unique development on the east side of Briargate, very near the new St Francis Medical Center [...]]]> Today I stopped out to Keller Homes in Cumbre Vista to see their new model and discuss a current transaction I’m working with them, and thought I would share a little about this great neighborhood. Cumbre Vista is a unique development on the east side of Briargate, very near the new St Francis Medical Center (also known as Penrose Hospital north to some of us). It is unique, in that is a fairly low dues neighborhood ($20 / month for the regular single family homes), it is relatively small with only 2 builders in the neighborhood (Keller Homes and Classic Homes, both excellent local builders), and the prices for new homes still start under $300K (although most are more) Cumbre Vista (map) is also unique because it is on the southeastern edge of D20, and has great access to the Powers corridor for shopping and entertainment, while still offering great district 20 schools. The other unique feature of this neighborhood is that it is split between maintenance free patio homes (dues are $125/ month) and regular single family homes, so it is an attractive place for both young families as well as empty nesters.
Here are some of the homes available for sale currently in Cumbre Vista. In addtion to the attractive prices, some of these have nice incentives available as well. For RSS subscribers, you’ll need to visit the actual blog to see these, sorry!

]]> http://livingcoloradosprings.com/blog/cumbre-vista-affordable-new-homes-in-district-20/feed/ 0 Dry Cool Weather to Change http://livingcoloradosprings.com/blog/dry-cool-weather-to-change/ http://livingcoloradosprings.com/blog/dry-cool-weather-to-change/#comments Sat, 06 Feb 2010 16:41:26 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=1106 We’ve had a pretty normal winter in some ways. Other than a cold start to the month, it has been pretty much in the 40′s, and very little snow, and lots of sunshine. We are finally due for another snow event on Sunday – Monday (maybe just in time for the Super Bowl?), so I’ve [...]]]> We’ve had a pretty normal winter in some ways. Other than a cold start to the month, it has been pretty much in the 40′s, and very little snow, and lots of sunshine. We are finally due for another snow event on Sunday – Monday (maybe just in time for the Super Bowl?), so I’ve have to get my hiking in today. Yesterday I was able to get up to Palmer Park over the noon hour, it was pretty gorgeous, as usual. The Mesa Trail is really pretty flat, and runs around the edge of the plateau, making for a really scenic little hike. It is an ‘off leash’ area for dogs, and takes a little getting used to how many people walk their dogs up there (or maybe it’s how many dogs people have?), but the 360 degree views are stunning, and it is good exercise.

  I say pretty normal, the central mountains where most of my favorite ski resorts are located, have been hurting for some fresh powder.  They’ve gotten a little again this week, but by this time of year, the base should be in the 50 inch range, and while some resorts have it, many do not.

  This week was a little busy. I showed quite a few houses in the $350 – $450k price range. The selection is pretty good in this range, though I was surprised there weren’t more builder ‘spec homes’ available. Several had sold just recently, so this segment may be picking up a bit. Generally, homes for sale in Colorado Springs in this price range are going to have some pretty nice amenities, such as granite countertops, nice lots in good areas, and will range from 3000 to 4,500 square feet. Most of the homes we looked at were in the Monument and northern Colorado Springs areas (Briargate, Northgate), as the client was most interested in D38 and D20 schools, and larger lot sizes.

]]> http://livingcoloradosprings.com/blog/dry-cool-weather-to-change/feed/ 0 Colorado Springs Builders Face Timing Dilemma http://livingcoloradosprings.com/blog/colorado-springs-builders-face-timing-dilemma/ http://livingcoloradosprings.com/blog/colorado-springs-builders-face-timing-dilemma/#comments Wed, 20 Jan 2010 15:53:09 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=977 The $8,000 First Time Home Buyer Tax Credit ($6500 for others who qualify) has created a little bit of a dilemma for Colorado Springs home builders (or for that matter, all builders, nationwide). With the housing recession not fully over, many have been either unwilling or unable to build a lot of inventory homes. After all, [...]]]> The $8,000 First Time Home Buyer Tax Credit ($6500 for others who qualify) has created a little bit of a dilemma for Colorado Springs home builders (or for that matter, all builders, nationwide). With the housing recession not fully over, many have been either unwilling or unable to build a lot of inventory homes. After all, when credit is tight, it is just not that easy to be borrowing millions to build houses that are taking too long to sell.  On the other hand, the tax credit program has some deadlines that create a logistical problem.

  Most Colorado Springs builders need 4 to 6 months to start a house from scratch and finish it. Since the tax credit expires 6/30/2010 (you have to close by then), there is really only about a 6 week window left (as of this writing 1-20-2010) to start a house from scratch and have it still qualify. Starting a bunch of inventory homes can get them a jump start on the process (the contract has to be written and accepted by 4/30/2010), but it is risky, because if they don’t sell, it ties up a lot of credit and capital. Picking the models and lots to target is tricky as well, although there is some mathematical guidance here. Since FHA (the most common civilian financing tool right now) requires a 3.5% down payment, the $8,000 credit translates into the down payment on a $228,500 home. My guess is that we’ll see the most ‘spec homes’ targeting that price range. Frankly, we can use more affordable new homes for sale in Colorado Springs!

  For more information on new homes, please visit the New Construction section of our web site, or call me at 719-590-4768.

]]> http://livingcoloradosprings.com/blog/colorado-springs-builders-face-timing-dilemma/feed/ 1 Affordable New Homes in Monument Still Possible http://livingcoloradosprings.com/blog/affordable-new-homes-in-monument-still-possible/ http://livingcoloradosprings.com/blog/affordable-new-homes-in-monument-still-possible/#comments Mon, 18 Jan 2010 18:16:26 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=958 10 minutes north of the Colorado Springs Chapel Hills Mall is the town of Monument, and any discussion of living in Colorado Springs is not complete without it. Historically it has not been an area famous for affordable homes, especially new homes. This weekend however we wrote a contract to build a new home for one of my [...]]]> 10 minutes north of the Colorado Springs Chapel Hills Mall is the town of Monument, and any discussion of living in Colorado Springs is not complete without it. Historically it has not been an area famous for affordable homes, especially new homes. This weekend however we wrote a contract to build a new home for one of my clients in the Trails End subdivision, west of I25 and north of Baptist Road, for under $250,000 with Richmond Homes. Affordable new homes in Colorado Springs and the surrounding areas is something we always seem to need more of, so I thought I’d share a few details about this area.

  Monument is a popular place to live for people who want to live in Colorado Springs as a metro area, but have additional requirements, such as:

  • Ready access to Denver (it is about 30 minutes to Denvers Park Meadows Mall and the Denver Tech Center, and less than 1 hour to Denver International Airport)
  • Top notch schools (Lewis Palmer D38 is always among the top 3 districts test score wise)
  • Smaller town atmosphere. The Trilakes area (that Monument is part of) has only 20,000 residents or so.
  • Great access to regional trails and National Forest. The New Santa Fe Trail goes right by the subdivision, Mt Herman Road and Pike National Forest access is 5 minutes, and Fox Run Regional Park is only 10 minutes or so.
  • Convenient shopping and dining opportunities
  • A cooler, wetter (and snowier) climate overall than Colorado Springs proper

  Richmond advertises homes starting in the upper 100′s here, but realistically, since they have lot premiums on every lot, there are no homes being built in here for less than about $220,000. Still, that is a very good price point for new construction in such a nice area. When buying from Richmond, there are a couple of things to be aware of:

  • to receive their incentives (which seem to change by the day), you must use their lender
  • to receive their incentives, you also must use their insurance company for your hazard insurance, at least at closing
  • they do not guarantee (although they believe they will be able to do it) delivery before the First Time Homebuyers Tax Credit closing deadline of 6/30/2010.
  • all of their sales literature shows only the above grade square footage of their homes, but in fact they include a full (albeit unfinished) basement with their homes. The Colorado Springs MLS homes for sale are all shown with total, above grade, and finished square footage separately, so when comparing square footage with resale homes, you have to keep this in mind.

We have added an extensive new construction section to our web site, please see also:

If new construction is part of your dream of living in Colorado Springs, please call me at 719-590-4768 or email rick@ricksellscolorado.com and let’s discuss your needs!

]]> http://livingcoloradosprings.com/blog/affordable-new-homes-in-monument-still-possible/feed/ 0 A New Record for Colorado Springs? http://livingcoloradosprings.com/blog/a-new-record-for-colorado-springs/ http://livingcoloradosprings.com/blog/a-new-record-for-colorado-springs/#comments Thu, 22 Jan 2009 14:24:00 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=289 Yesterday we set a new weather record here, with a 70 degree high temperature that made it feel like June instead of January. It won’t last of course, but this week of incredible warm, pleasant sunny days has been a nice little break in what can be a cold month. The ski areas are ready [...]]]> Yesterday we set a new weather record here, with a 70 degree high temperature that made it feel like June instead of January. It won’t last of course, but this week of incredible warm, pleasant sunny days has been a nice little break in what can be a cold month. The ski areas are ready for some more fresh powder, it is due this weekend from what they are saying. After seeing the record COLD temperatures in the eastern half of the country, it is nice to be on the other end of that.
The warm temperatures have made it very pleasant for showing property as well, which I have been doing quite a bit of. There are some great “spec” homes available at the moment in Cordera, as well as Indigo Ranch / Ridgeview at Stetson Hills. In uncertain times, builders that have some completed inventory take all the risk out of the new construction process, because the house is done, you don’t have possible delays, and (heaven forbid) if the builder fails or pulls out of town, the house is already done so you aren’t left hanging. Builders also make their best deals on completed homes, since they now have a sizable investment already made in them, and they tie up lines of credit.

]]> http://livingcoloradosprings.com/blog/a-new-record-for-colorado-springs/feed/ 0 Another One Bites the Dust http://livingcoloradosprings.com/blog/another-one-bites-the-dust/ http://livingcoloradosprings.com/blog/another-one-bites-the-dust/#comments Wed, 21 Jan 2009 14:23:00 +0000 Rick Van Wieren http://livingcoloradosprings.com/?p=288 The big news nationally is the inauguration, but locally in the Colorado Springs real estate community, the buzz is about John Laing homes closing up shop here in Colorado. New construction is obviously hurting all over the country, and it is no different here. John Laing has had 4 communities they were building in here [...]]]> The big news nationally is the inauguration, but locally in the Colorado Springs real estate community, the buzz is about John Laing homes closing up shop here in Colorado. New construction is obviously hurting all over the country, and it is no different here. John Laing has had 4 communities they were building in here of late, and they join Lennar, Beazer Homes, Pulte Homes (single family), Reflection Home Building, Anthony Homes and a few others in leaving the area or going under. I have personally never sold one of their homes, not because they aren’t good, but because the price point and amenities offered never seemed to match up for my clients. Fortunately their competitors can easily pick up the slack.

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