City-Dwellers Relocate – Colorado Springs Real Estate Market in High Demand
It probably comes as no surprise that COVID-19 has impacted the real estate market, as this pandemic has changed most everything in life in some way. However, it may surprise you to hear that the pandemic has actually benefited particular types of real estate markets around the country – particularly, mid-size cities that offer more rural/suburban living, less congestion and still plenty of amenities. This is great news for the Colorado Springs real estate market as our city just happens to fit that bill.
So how exactly is the real estate market in Colorado Springs being affected?
How COVID Has Affected Sellers
COVID-19 has only made it more of a seller’s market here in Colorado Springs. Available housing inventory is even lower than it was before the pandemic as many homeowners are hesitant to make major life changes during a time of uncertainty, one of those being selling their home. Add to that the high demand for housing from buyers looking to move to areas with wide-open spaces away from crowded cities, and you have yourself a seller’s market – quite the competitive one at that.
Suburban and rural housing demand is definitely on the rise, closing on average 5 – 10% above asking price. Even new home builders are seeing ideal market conditions, as the lack of inventory has convinced more buyers to purchase new builds instead of risking the chance of a bidding war and possible disappointment.
How COVID Has Affected Buyers
Yes, the emotional stress of a bidding war is tough for even the most experienced buyers. However, the current interest rates for mortgages serve to balance buying concerns right now in the Colorado Springs real estate market. The interest rates are one of the lowest they’ve ever been, which means both your monthly payment and your interest paid over the lifetime of the loan are much lower in comparison to previous decades’ figures. And rates are expected to remain low for the next 9-18 months.
While buying may look a little different with pandemic restrictions, the real estate market has successfully innovated to overcome any restrictions or challenges. Virtual tours make viewing your prospective property simple and germ-free, and agents across the board are being cautious about sanitation and restrictions during in-person showings.
With transactions being forced online, most companies have finally gotten on board with digital options for signing and closings. Outside “curbside closings” have become a common occurrence. If you’re looking to buy, make sure you have these tips for buyers down before you start the process.
Changes in what Buyers are Looking for in a Home
As people are forced to spend more and more time in their homes, buyers are now drawn even more to houses with amenities such as large pantries, basements, backyard pools, and large yards in general. Close proximity to state parks and outdoor recreation options is also preferable. This is great news for the Colorado Springs real estate market as it’s surrounded by some of the most beautiful terrain in the country with plenty of well-maintained open spaces and parks.
How COVID Has Affected Rentals
Low inventory and high prices have turned many to favor renting over buying. Buying is still an extremely viable option, but for those that simply don’t want that commitment, renting has become the ideal choice.
Homeowners that have considered a move while keeping their current home as a rental would be wise to act on this now. A competitive rental market can provide an excellent chance to establish monthly cash-flow opportunities.
With COVID concerns, renters now place a higher preference on homes or units with self-contained air systems and in-unit laundry machine hookups.
A Guide for the Colorado Springs Real Estate Market
If you are looking for trustworthy real estate agents to help you navigate your move, give Krakofsky Team Realty a call at (719) 231-9544. We’ve been a part of this community for decades, and we’re able to keep a pulse on the inventory of homes for sale in Colorado Springs, helping you find that perfect home for you and your family or sell your home to capitalize on the current market demand.
As retired military, Jamie thoroughly enjoys helping others buy and sell their homes. He and his wife, Bianca, raised their 3 kids in Colorado and they plan to stay here, serving the Colorado Springs and surrounding areas until he truly retires (which may never happen). When not laughing with his clients and negotiating killer deals, Jamie spends all his free time with his family – hiking, camping, boating and traveling.
Jamie is a certified MRP (Military Relocation Professional) and was just recently awarded the Chairman’s Award by Re/MAX, which names his team in the top 1% of Real Estate agents in the world.
What Jamie loves most is helping his clients have a successful and truly enjoyable real estate experience.