We made it to December and find ourselves wondering what 2021 will bring. We certainly hope (and expect) a much brighter, happier year than 2020. But our average home prices and critically low inventory in Colorado Springs are concerning. Buyers have even fewer options than they did earlier this year, and we are seeing more buyers turn to new construction homes when their timeline permits. We’ve listed the facets of our Colorado Springs real estate market we will pay close attention to as we move through 2021.
Note: We’ve said it before, but it is imperative to pay close attention to our microeconomy here in Colorado Springs when you’re evaluating possible real estate market trends. The national real estate market and economic outlook can be discouraging, but Colorado Springs has fared much better than most in 2020.
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This has been an ongoing struggle throughout 2020. Potential sellers are choosing to stay in their current homes. If they had more options, they might consider taking advantage of low mortgage rates and increased equity to purchase a bigger home. But the current circumstances make it an undesirable challenge.
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Average Home Prices
Home prices in Colorado Springs have continuously increased since the last recession. The past few years have seen increases in the double digits. The historically low interest rates have helped some buyers who would have otherwise been priced out of this market. But affordability will remain an issue right behind availability. Interest rates can’t go much lower, so we will reach likely reach a point in 2021 when buyers will be priced out of the market. The impact on rentals will be palpable.
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New Apartment Buildings
Construction of new apartment complexes has been going strong this year and it’s a great effort within Colorado Springs to provide a sufficient amount of homes for current and future residents. But many of those apartments are not necessarily affordable housing. As home prices increase the demand for rentals will increase as well and push the rental prices even higher.
Tips for Finding a Rental in Colorado Springs
We know that many small business owners have struggled during the pandemic and many people have unfortunately lost their jobs. This could potentially force some homeowners to sell their homes in order to get out from under their mortgage and forbearance obligations. This would bring more inventory onto the market, but we don’t believe it will have a negative impact. In fact, it will very likely help to churn the market again.
It’s important to note that we don’t believe many foreclosures will be listed. Recent price increases mean that very few folks will have to go into a short sale or foreclosure. Please contact us to learn more about the process and how we can help you! If you purchased your home more than 12 months ago, it’s highly likely that you will be able to sell your home and pay off all of your fees.
As a nation we have to pull together to bring ourselves out of the pandemic and the economic impact of the shutdown of 2020. Remember, our team is always here to help and answer questions about your real estate needs. Give us a call 719-219-9739 or email email@example.com.