Not that everything is perfect here in Colorado Springs. We hit some heavy traffic and thunderstorms coming through Denver. It had been pretty hot while we were gone, although we managed to miss that. Unemployment went up during our trip (ok, actually the report just came out) showing Colorado Springs unemployment at 8.9%, not good. There has even been a rash of violent crime in the southeast end of town, not typical or welcome here.

But when all is said and done, living in Colorado Springs is pretty darn good. I managed to sell a home on my first day back, and have a pretty busy work schedule ahead of me for the next several days, so whatever doom and gloom may appear in the news, at least I’m too busy to get caught up in it. And I’m looking forward to getting some more evening outdoor time. Nothing like a little vacation trip to remind you, there is no place like home, especially if home is Colorado Springs

  Less positive was the increase in homes for sale. The inventory of homes for sale in Colorado Springs rose 14.5%, to the highest level since October 2008. Also, the Selling Price to List Price ratio dropped to 96.7%, which is low by local standards.

  With interest rates in the 4’s, the remaining summer months should be moderately healthy, and more ‘normal’, with tax credits and other government stimulus actions less of a factor. The things that will turn our market around more quickly than anything will be more jobs in Colorado Springs, and the return of the thousands of troops who are currently deployed to the Middle East, to Ft Carson.

For more details on current housing market conditions, please visit the Market Conditions  section of www.LivingColoradoSprings.com

  While sightseeing is always high on the list of vacation activities (there are a lot of sights to see!), there are  many activities that are always fun, and could be considered more ‘any day’ activities. To name a few:

• Hiking – almost anywhere in Colorado there are fantastic hikes to take, from 15 minute ‘perspective’ walks to 3 day back country excursions. The hardest part is picking one, but the Trails and Open Space Coalition has a nice online reference as a beginning point
• Fishing – whether it be streams or reservoirs, from a boat or from shore, there are plenty of places to fish, some just minutes from home. The Pikes Peak Highway takes you to North Catamount Resevoir, owned by the city of Colorado Springs and not far at all, as an example.
• Boating – while we don’t have as many lakes as some states, there are some nice ones, and you can’t beat the scenery! Pueblo State Park is a popular spot about an hour from the Springs
• White Water Rafting – the spring surge is just subsiding, and there are some GREAT rafting trips to be had. The Arkansas River is the closest to Colorado Springs, about a 2 hour drive to some great summer fun, near Buena Vista. Echo Canyon River Expeditions is one of the many rafting companies on the Arkansas. The Colorado River through Glenwood Canyon is one we’ve done as a family, what a blast!
• Biking – Colorado Springs has lots of biking trails, both suburban as well as technical mountain biking trails, and the nearby Pike National Forest  has even more. Many mountain towns have great bike paths to enjoy the scenery from as well. Like hiking, the hard part is picking one, there are so many! Here is a link to the City of Colorado Springs Bike Trails map
• Baseball – The Colorado Rockies  are always entertaining (in Denver), but Colorado Springs AAA Sky Sox, the Rockies farm club, provide a great afternoon or evening at the ball park as well.
• Golf – There are lots of courses in the area, varying in difficulty, character, access and green fees. Regardless of which course you play, the mountain backdrop makes it fun, and most golfers enjoy the 10-15% altitude advantage on their drives as well. Not that it ever helps me, but I just play for fun
• Amusement and Water Parks – while Colorado Springs is a little short on this kind of fun, downtown Denver offers Elitch’s with both rides and a water park, and Water World  north of Denver is pretty fun on a hot day as well.

  Colorado vacation fun is best ordered around the weather.  Mornings usually start cool and sunny, but afternoons can be pretty warm if a thunderstorm doesn’t come along to cool it off, and if it does, you don’t necessarily want to be out in an exposed place. Mountain hiking above the tree line is particularly treacherous if a thunderstorm comes up.

  So come to come to Colorado Springs for a summer vacation! While there are plenty of tourist things to do, the rest of the stuff is so good, it will make you want to live here!

  The grass and flowers really like these wet weekends. Things will be nice a green for bit, and maybe the cooler weather will bring back some daily thunderstorms. We really count on some rain in the afternoon here, and there are times when it just doesn’t show up. We planted some flowers just before my wife’s surgery (she was actually putting the last ones in the morning of her surgery), and other than some hail damage the other night when the front came through, they seem to be doing pretty well. Even the annuals I put in before the last frost survived and are blooming! While I have a bit of a black thumb, we are finding gardening to be somewhat fun while we are movement restricted from her surgery (a new hip will do that).

  While she was in the hospital I took a walk around the Old North End, near Penrose Main Hospital, and discovered where the REAL gardeners hang out. There are a lot of beautiful mature gardens surrounding the Old Victorians, and it made for a very pleasant walk trying to figure out what kinds of flowers I was looking at. I may do a photo piece soon on this unique area north of downtown Colorado Springs, as the architecture and landscaping really come together nicely here. Prices in this distinct neighborhood range from the high 200’s to close to a million, depending on size, condition and the specific streets.

1. The tax credit programs that expired at the end of April ‘borrowed’ some buyers from the summer market, as people made decisions based on the deadline. They aren’t in as much of a hurry now, although this should be a temporary factor, being less of an issue as the mid summer months arrive. Most people do not move based on tax credit type incentives, and that is especially true in relocation, where a lot of my work is.
2. The pool of eligible buyers has shrunk because of the soft job market. People are more income constrained, and cautious, when unemployment is high. Here in Colorado Springs unemployment is 8.2%, not horrible, but not great.
3. The pool of eligible buyers has shrunk because of tightening lending rules. Interest rates can be 2%, but if the rules preclude someone from getting a mortgage, what can they do? Example: John and Mary Smith want to move up to a bigger house, but they currently own a home. In past years, they could rent the existing home and still make the move (if they have enough for the down payment), with the lender counting 75% of the rental income as an offset against the current house payment. The new rules require the existing home to have at least a 1 year rental history in order to count the rental income at all, eliminating the ability to move without selling for many homeowners (who are often underwater on the mortgage). This is just one example, there are LOTS of rules that have tightened, thereby shrinking the buyer pool.
4. Home ownership and the prospect of appreciation has lost some of its shine. Buyers are no longer as confident in the house going up in value as they have for the last 60 years. There are MANY reasons to own your home besides appreciation, but appreciation has certainly become less of an automatic. Of course when the stock market recently dropped 1,000 points in 1/2 hour, it does raise the question, what IS automatic?
5. At least in Colorado Springs, the supply of homes for sale is increasing very rapidly. We are up to 5,700 unsold homes from 4700 in March, giving buyers the perception that there is no hurry, there will be more for sale tomorrow, and they might even like them better.
6. There is a little bit of ‘chicken and egg’ going on, in that lower demand for mortgages actually brings rates down. Fewer borrowers will have at least some impact on rates, pressuring them downward further.

Conventional wisdom had interest rates heading up by this time. But life happens, and it will be interesting to see how the whole picture unfolds!

1. Our hospitals do a good job. The doctors and nurses are competent, and care. Things are clean and organized.  The food is tolerable (ok, what did you expect?) Today we’ll be at Penrose Main, but we’ve had good experiences at Memorial Central and Memorial North as well. The Memorial North facility is very new and nice, but they don’t do everything there. The Penrose – St Francis Medical Center at Powers and Woodmen looks very nice, but we are hoping we don’t have enough future needs to ever experience it. There are military medical facilities here as well, but since we are civilians, we really don’t have any experience with any of them. There is a clinic at the Air Force Academy, Peterson Air Force Base, and Evans Army Hospital at Ft Carson.
2. Health care in Colorado Springs is pretty convenient. It is hard to be more than 15 minutes from a hospital here. Although not all facilities do all things, general care, emergency rooms, etc are available at all 4 hospitals. Our niece lives in southern California, and is pregnant with her first child. We were very surprised when they told us that it is a full 40 minutes to where she will give birth, longer if there is any traffic (we are talking southern California. IF there is traffic? )
3. There appears to be a good level of specialization available in Colorado Springs. While some rare diseases (it seems like more for children) require treatment in Denver (45 minutes to an hour away) where even more specialization is available, for the most part, anything you need is here. In fact, the trauma centers here really support a pretty wide area. At my wife’s class, there was a couple who said they are driving more than 2 hours for access to our hospitals.
4. Senior care is very good. Across the country, the population is aging. We’ve seen first hand that my wife’s mom is getting excellent care here, much better than she experienced in San Jose. That is a good thing, because she has really needed it!

Health care is a pretty big deal these days. We are very grateful that Colorado Springs has such good options available to us.

1. The inventory of unsold homes jumped 10.0%
2.  The sale price to list price ratio dropped to 97.55%
3. The percentage of sales from distressed properties was down to 19.4%
4. The 90th percentile jumped to $393,000. We may be seeing some new life at the upper end of the market! 

Hopefully the rise in inventory does not signal a new glut of homes for sale. It is spring, so there is some seasonal influence. It may also be due in part to peoples perception that the market is improving, perhaps more than it really is. We’ve always known there was going to be some pent up supply of homes for sale when conditions improved, hopefully it is not a trend.

Bottom line? Real estate market conditions in Colorado Springs are improving, but slowly. For more details on historical trends, visit Colorado Springs Real Estate Market Conditions