How is the market in Colorado Springs? This is probably THE question I am asked the most often, or at least some variation of it. Sometimes its just, how is the real estate market? Or how is business?
What is the answer? It depends, who’s asking? If you are a seller, this is market is just plain scary (Halloween is just around the corner, isn’t it?). We’ve had 3 months of declining sales since June. Year to date, sales are now lower than last year’s dismal conditions. This is a ‘serious sellers only’ kind of market, where if you don’t really have to sell, you probably want to wait for better times.
On the other hand, if you are are a buyer, this is probably the best market you will ever see. Prices are low. Selection is great. Interest rates are minuscule (4% ish!). For move-up buyers however, this is a confusing time, because they know it will be tough sledding for selling their existing home, but the bargains both for replacing and the low interest rates are really tempting.
Here a couple of thoughts on the ‘move-up’ conundrum.
- The lower interest rates can really make the difference between the old house and the new house a lot less. If you are going to have a mortgage anyway, before refinancing, make it for the right house.
- Using a low down payment loan such as FHA or VA may allow you to get buy without selling the old house, or selling it for less than you thought you ‘had’ to get. While everyone likes to have as much equity as possible in their new home, if you can borrow at 4% or so, going in with a low down payment can be a lot smarter than waiting until your old house goes up in value enough to make that possible. VA is zero down to $417,000, and FHA is 3.5% down to $325,000 here.
- If you are in the home of your dreams, congratulations! But more often than not, I am finding that people have another house they really want to get into. Waiting out the storm may be a long time, and when the old house has come back in value, interest rates and the price of the new one may make it even more difficult to achieve your goals and dreams.
So how’s the market? Who’s asking? 🙂