Springs Home and Style

For the first time in five years, statistics are showing healthy progress in the Colorado Springs Real Estate market. Eddie Hurt, ERA Shields Broker Associate, creates a monthly analysis based on Pikes Peak MLS statistics, to help ERA Shields associates direct their clients to make educated and knowledgeable choices, whether buying or selling.

The monthly statistics, which ERA Shields refers to as their “Stat-Pack”, are “reflecting a good bump for the positive” according to Hurt.  Sales tend to be a lagging indicator of the market and they have finally jumped in the last month.” ERA Shields’ Stat-Pack also reflects a continuing decline in inventory which in turn creates upward pressure on pricing.

Due to the buzz about great deals to be had, first-time home buyers are particularly eager to get into the market quickly. In fact, Bill Hurt, Broker and Owner of ERA Shields, notes “This is a great time for people who have been renting to consider buying.  Prices and interest rates are low, and rents are trending upward.  Right now renters can frequently buy a nicer home than they are renting, for a lower monthly payment.”

As the economy continues to improve nationally, regionally and locally, a cost benefit analysis will show consumers if it makes sense to buy, and our agents are well-qualified to help those consumers with that analysis.

Although the Stat-Pack shows foreclosures down almost five percent from last year and down a total of 28% from the previous three years, there is still a significant number on the market and these still tend to skew price statistics.  Bill Hurt also stated, “Distressed sales really have a higher cost when you look at the time, energy and dollars required to get the property to a livable state, and the extended time it often takes to get the deal done.”

Many buyers are sitting on the fence and asking realtors to gauge when the market has reached bottom.  “When looking at the data included in the last two months,” said Eddie, “prices are beginning to come back up slightly, indicating that we may have hit bottom several months ago.”

Interest rates continue at record lows, leading the public to wonder when they will start to move back up.  ERA Shields believes that as the economy improves, inflation may kick in and will likely result in increasing interest rates.

A common rumor of late, which Eddie Hurt continuously sees dispelled, is that it’s tremendously difficult to qualify for a mortgage loan. “I really haven’t seen that on the residential side.”  said Eddie.  “It is harder than it was in 2005, but really lenders are just being smarter about lending now.”

Eddie also noted that the mortgage application process has become much more thorough, and if buyers aren’t counseled to fully complete their application with all required documents it can cause delays and frustration for all parties involved.

The improving trends in sales and prices can mean good news for sellers; possibly less negotiation, fewer seller-paid fees and even less time on the market.  However, sellers who are eager to take advantage of the low inventory and price increases, must recognize the significance of a well-informed, experienced agent who can facilitate the best price possible, without pricing homes out of contention.

“Real estate is truly local.”  said Eddie.  “While we have seen improvement over the last three months, some areas are more active and have seen greater improvement than others.”

All of these points make it clear that today’s buyers and sellers need an experienced, educated agent to counsel them through the process to be sure they are getting the best deal possible. At ERA Shields, our goal is to help buyers and sellers understand what current market conditions are, and how this will impact what they would like to accomplish in the purchase or sale of a home.