The Colorado Springs-area housing market apparently enjoys nice weather. Home sales and prices took a big jump the past couple of months.
The number of sales:
I usually track the median price of houses—that price in the middle of all sales. In other words, there is just as many houses that sold above the median as there is sold below the median. This gives you a good indication of where the price of homes are headed.
The median price of homes:
What’s causing the price jump?
- Economics—supply and demand. The supply of available houses isn’t keeping up with the demand of buyers that are moving into the market.
- More buyers are entering the market. Many people have been renting for a number of reasons. With the perceived idea that interest rates are going up, buyers are beginning to take a look and they like what they see. With the interest rate where it’s at you can buy a house and the cost per month is cheaper than paying rent.
“So?” you say. “What’s the bottom line?”
Buyers should consider getting into the market. It is not going to go down, according to the experts. And interest rates are going to ease up which ends up raising the cost of entry into the market.
Sellers should sell and move up. Houses are selling good right now so you can get a good price for your house. The houses you would be moving up to get are not increasing at the same rate as lower priced houses. It’s a win-win for sellers.
Next time we’ll discuss how first time buyers can qualify for a house.
~Butch Young, RED Group | Keller Williams Realty | 719.332.1358 | firstname.lastname@example.org
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