Colorado Springs Real Estate Market Summary

The End of a Wild Ride - December 2009

As 2009 closes, we look forward to an exciting decade in the real estate market. The last ten years have brought about massive changes in mortgages, market value, appraisal strategies, and the overall real estate market.

A careful study of the 2009 numbers confirms that stabilization in the local market has taken over. The wild gyrations of 2007 and 2008 have come to an end. The stabilization isn’t based on luck; there have been many hands locally and nationally guiding the process. Financial markets and institutions at the national level are critical to local activity. Fannie Mae and Freddie Mac are carefully managing the influx of foreclosures through the Deed for Lease Program and loan restructuring opportunities. The Federal government has had a major impact on local activity through the 2009 First Time Homebuyer Tax Credit and subsequent extension of the program into 2010. The infusion of “bank bailout” funds have stabilized many lenders; some are back in the business of lending while others aren’t. Locally, the influx of military troops has brought new buyers into the market.

Boylan and Company expects to see the stabilization continue into 2010. There may be a bump in the road as some of the Federal programs expire, but, the activity in the first half of the year should be strong enough to quell fears of a double dip in the real estate market. The only double dip ever seen in the housing market occurred in the 1980’s without any government interference. The major difference at this time is the federal government is actively trying to ease the pain of the foreclosure tidal wave so that it comes in smaller more manageable waves with the idea that local markets can better handle this sort of activity than two major market crashes. We continue to hold firm in our belief that the only sensible way to digest this data is taking it in the perspective of our local market. The Colorado Springs market is quite resilient and will continue to be because the market did not have a dramatic bubble through the early and middle parts of this past decade.

Prices should not depress further since inventory levels have fallen. New construction is keeping pace with demand at this point and not adding to existing home inventory in a detrimental way. We expect that many areas will post gains such as those seen in the Northeast area of Colorado Springs and Fountain Valley. There will continue to be some pressure from foreclosures, but, this indicator is also stabilizing across the region. The greatest pressures will be from unemployment and difficulty in refinancing expiring balloon loans and variable interest rate loans.

Ten years ago, the internet was not a tool for the average home buyer or seller. Today, there are many spectacular sites which pull information from the local MLS system, assessor databases and even individual homeowners. Boylan and Company has been and continues to be at the forefront of real estate on the internet. Beginning with a single website, Springs Homes has grown to dozens including neighborhood sites, sites featuring homebuilders, individual listing sites and blogs. Boylan and Company is pooling all of the resources to provide the public with the most current information and strategies available. Take a moment to check out www.SpringsHomes.com and www.SpringsBlog.com for the latest in real estate news and opportunities.