What can the Colorado Springs Realtor expect from the Colorado Springs Real Estate market for 2010/2011?
According to Heath Herber, who formed the Westerra Development Co. as a Colorado Springs Real Estate development company, has boldly predicted for 2010 that Colorado Springs Realtors will begin to see a shortage of new homebuilding supplies; therefore, this will cause prices of new and existing homes to rise throughout the year.
As a result of the shrinking inventory (new single family home permits has dropped 80% over 4 years), it looks as though sellers can expect an increase in their home values on existing residential properties. In essence, according to Herber, “this will help the Colorado Springs Real Estate market because less people will be motivated or tempted to walk away from their existing mortgages.”
In previous blogs, I’ve discussed some of the variables associated with pent-up demand. I believe two variables will drive the market upward. First, the listing inventory in our local market has been reduced, especially in the lower price ranges (under $400K); and second, as mentioned by Herber, there have been less new home permits pulled to begin new construction.
As these variables continue to purify some of the negatives within the Colorado Springs Real Estate market, I believe Colorado Springs Realtors can expect to experience a gradual trend of increased sales in the higher price ranges.
