If you’re wondering what might be in store for the Colorado Springs real estate market, consider what the current leading indicators are showing. In 2017 and 2018, restricted inventories of both new homes and secondary-market homes have required buyers to get more and more competitive with their offers. Sellers have enjoyed this ‘high’, and from the looks of things, this ‘Seller’s Market’ trend will continue.
However, there are some very good reasons to
think that the situation will improve for buyers, as well. One of these reasons
has to do with average home prices in Colorado Springs. So far in 2019, prices
for homes in the Colorado Springs/Monument have continued to increase—by as much as five percent—a telltale sign
that inventory is going to go up along with it. When inventory goes up, buyers
have more to choose from and thus don’t have to be as aggressive with their
offers in order to find a home that suits them.
From all of the most reliable indicators we can find in the market today, and in conjunction with what area realtors like The Wheaton Team are seeing, we can safely say that the Colorado Springs real estate market is going nowhere but up in the near future.
Beyond Establishing Equilibrium in the Market
Aside from inventory and home pricing numbers, what else can we point to as evidence that the real estate market in Colorado Springs and Monument is going to soar in 2019? After all, there are other factors that affect this market in particular, including job growth, infrastructure investment, and what else is going on regionally.
It’s at this point that it makes sense to look at how the commercial and retail real estate markets in Colorado Springs are doing. Are they thriving? Are there more vacancies than there are tenants who can afford to make the monthly rent payments?
Thankfully, the commercial and retail sector within the Colorado Springs/Monument real estate market is especially strong. Many local analysts agree that vacancy rates will fall in 2019 while rents will rise. This is being driven, at least in some part, by the higher quality of living that Colorado Springs residents enjoy. Anywhere there is a more attractive quality of life, there will naturally be more people who gravitate towards that area. And, those people have needs that the retail and commercial real estate sector meets.
A Different Picture for Residential Landlords
It’s not surprising that governmental decisions made on the national level are affecting the Colorado Springs real estate market, too. Recent furloughs within the Housing and Urban Development organization have resulted in many Section 8 housing contracts to expire. Many of these contracts won’t be able to be renewed due to the current political landscape.
What does this mean for residential real estate owners who lease their property to low-income tenants? It means they’ll likely lose the tax credits and subsidizations that they’ve grown used to over the past few years. This will likely result in increased rents for those tenants who can afford it, while those who cannot will be forced to consider living elsewhere.
This effect should level out, however, as federal workers return to their jobs and applications for HUD exceptions can restarted. Until then, Colorado Springs real estate investors are just going to have to ride out the rough weather.
The Commuter Influence
A Colorado Springs/Monument real estate market factor you may not have considered is the impact that Denver commuters have to the local economy. When you look at it on a map, a commute to Denver from Monument doesn’t seem altogether bad: as it turns out, you can get from Monument to one of the most job-dense areas of Denver—the Tech Center—within about 40 minutes. That’s only 15 minutes longer than the national average commute time, which comes in at 25 minutes.
Because so many people are choosing to make this commute every day, they’re establishing their homes in Monument and Colorado Springs. The increasing trend of telecommuting is likely to make this kind of work arrangement more and more of a reality for many workers.
If we keep seeing an influx of new home construction paired with continued expansion of the Colorado Springs resident base, the future for the real estate market is likely to be very bright indeed.
Hungry for more information on what’s going on within the Colorado Springs/Monument real estate market? Contact the real estate experts who care—The Wheaton Team.