The number 1 question we get when teaching our Home Buyer Seminars is …Are we in a real estate bubble? Not only was Colorado Springs ranked the top real estate markets to buy a home, but even national experts such as Core Logic predict home values will continue to increase for the next 5 years. Industry experts are predicting that interest rates will rise. When home buyers must pay higher Interest rates, it means they will have higher payments and homes will be less affordable. The out of pocket costs to buying a home are very low. You do not have to have perfect credit but with good credit with a score above 640, you buy a home with only $1000 down. We have a great graph that outlines the cost of waiting to buy a home. Even with a tiny bump in interest rates it could mean $100 more a month and $32,000 over the life of the loan in order to own a home. The market is also impacted by rising interest rates. Even a small jump in interest rates affects home sales by reducing the amount of homes sold and the homes are sold for. Typical or normal supply of homes is about 6 months on the market before a sale. In our market it typically takes 1 ½ months to sell a home. Our market has been so hot for the last 4 years, that many home sellers have very high expectations of homes selling immediately and will tend to price above market for that reason. The experts such as nationally known, Core Logic, predicts this market will continue to appreciate for the next 5 years but not maybe at the rate of the past 4 years in appreciation. The recent dip in the interest rates makes this a great time to invest in a home because homes are more affordable. Many buyers believe they will have to save 20% for a down payment. That is a commonly held myth. You can now buy a home for as little as $1000 down. It’s a great time to take advantage of homes going up in value. Plus, when they buy a home their payments tend to less than what they would be normally paying for a similar rental home in the area. Many of our up and coming generations are looking to buy a home in the next several years. We offer a home buyer seminar to help provide good information about the Home Buying Process and give them great resources to make their home buying experience go well. You can call us to register for the next one to register at (719) 301 - 2461.
