Business
Will Real Estate in the Colorado Springs Area Crash SoonSegment 2Will Real Estate the Colorado Springs Area Crash Soon?Barb, there are a lot of people who fear a real estate market dip in values is just around the corner? Do you think the real estate market in the Colorado Springs area will crash?I understand their fears:People know history can repeat itselfThe last Increase followed by Crash 2003-2012 involved:Shady lending practicesBuyers purchasing more they can affordAdjustable interest rates caught people unaware and unpreparedRecently, COVID Pandemic caused other issues:Job Loss in 2020 – Unemployment rate then 12.6%Most recent date – 6.1%Still TBD: Foreclosure Moratorium ENDED?Foreclosures up nationwide by 60% as compared to last yearMany, many are WithdrawnIN August: BIDEN Admin Put a New “Loan Servicing Rule” in place through the CFPB that would1. “HOLD OFF MOST FORECLOSURES UNTIL 2022”2. Prevents them from INCREASING Monthly payments for owners emerging from forbearance program3. Prevents them from extending loan term beyond 40 year to prevent delinquency4. Offering better loan modificationsWhy Does This Matter?Foreclosures ONLY AFFECT market values ONLY if its more than 30% of MarketVery Unlikely since increase in values more than 11% per year since 2012People facing Foreclosure can SELL their homes and put a good amount of cash in their pocketsWHAT WE DO:We Offer a Free, No Obligation Consultation on What to Do and What Not to Do to Get Your Home Ready for SaleYou can call us anytime at 719 301 3900 orVisit https://BarbHasTheBuyers.comYou are listening to the Real Estate Voice with myself Barb Schlinker of Your Home Sold Guaranteed Realty, if you are interested in selling your and want to call Barb give her a call at 719 301 3900 We are talking with Barb Schlinker of Your Home Sold Guaranteed Realty about whether or not the real estate market in the Colorado Springs area will Crash soon. Barb what are some market indications that show this is still a great time buy and sell a home?Change in Demand? But it could be the market normalizing after COVID:1. We are Seeing – Fewer Bidding Wars2. Fewer Showings3. Increase of Homes for Buyers To Choose From4. Reasons:a. Seasonalityb. Buyers got tired of bidding wars and stopped lookingc. Affordability issues for some buyersHousing Affordability1. Mortgage Payments Now getting to 32.1% of Average Income per Atlanta Fed as reported by WSJRental AffordabilityAverage Rent: $1458Reality is: $1700Buy a Home for $375K, put 3.5% DownThe Market NOW vs Before COVID:Down 60%Number of Sales10,78511,854Sales up 10.9%Average Price$371,552$499,278Increase: $127,726To Help Home Sellers Command the MOST MoneyWe Have our Help Program Funding of Repairs up to $10K per HomeGet Reimbursed at ClosingWHY? Buyers Pay Top Dollar for Homes that are in Good ConditionEG: Constitution Hills HomePainted DECKVA BuyerSold for $20,000 OVER Asking PriceWHAT WE DO:We Offer a Free, No Obligation Consultation on What to Do and What Not to Do to Get Your Home Ready for SaleYou can call us anytime at 719 301 3900 or Visit https://www.BarbHasTheBuyers.com