Home sales are continuing to stabilize.  The Pikes Peak Association of Realtors reports a 12% increase in single family home and patio home sales over last year, and an average home sales price increase of 3.9% over last year’s sales prices.  Our local housing market is still a buyers’ market, but competitively priced homes for sale are moving.

Local residential construction benefited from the first time and trade-up home buyer tax credit (which ended earlier this year), and show slow recovery in new residential construction.

The El Paso Public Trustee has reported a slow decline in the number of area foreclosures, with the 2010 year to date number of new foreclosures down 9% from the previous year.  Visit http://elpasopublictrustee.com/AllReports.aspx for more area foreclosure information.

Interest rates continue to be at all time lows, giving home buyers a great incentive to buy sooner rather than later.

Days on the market for area homes are improving, with the average days on market for all homes at 78 days.  Higher priced homes, however, continue to have longer days on market:  Homes priced between $500,000 – $849,900: average 206 days on the market before closing.  Homes priced above $850,000: average 329 days on the market before closing

We had hoped that our local real estate market would be helped along by the more than 2500 soldiers who have returned home in the past month.  Yet according to Colorado Springs Chamber of Commerce Military Affairs Council President Brian Binn, almost 10,000 of the 25,000 active-duty soldiers stationed at Fort Carson will be deployed by October of this year.  That’s one of the biggest deployments in the area’s history.

Employment numbers for the area are also looking up.  Colorado Springs Regional Economical Development Corporation reports that the latest employment numbers for April, 2010 indicate employment conditions began improving in January 2010.  Since January, employment numbers increased by 4545, while the number of unemployed decreased by 1341. 

It continues to be an excellent time to buy a home in the Colorado Springs and Pikes Peak area, and a good time to sell if the home is priced well. Please feel free to contact us anytime if you would like market information on specific neighborhoods.

Thanks!
Scott and Marni

As we have seen in previous years, the majority of home sales are occurring in homes priced under $200,000. Homes priced over $300,000 are not moving as quickly. The Pikes Peak Association of Realtors reported the following home sales statistics for March, 2010:

Total Homes Sold in El Paso County: 651

Homes Sold by Price:

$0 – $199,999: 358 Homes Sold (55% of Total)
$200,000 – $299,999: 174 Homes Sold (27% of Total)
$300,000 – $399,999: 72 Homes Sold (11% of Total)
$400,000 – $499,999: 26 Homes Sold (4% of Total)
$500,000 and up: 21 Homes Sold (3% of Total)

Historically, spring and summer months have brought increases in sales in all home price ranges, as well as overall decreases in days that a home is on the market.

There has been a slight increase in mortgage interest rates, although rates are still at extremely low levels. VA and FHA loans continue to be popular loan choices for home buyers. In El Paso County, FHA loan amounts are limited to $325,000 and VA loan amounts are limited to $417,000.

It continues to be an excellent time to buy a home in the Colorado Springs and Pikes Peak area. Please feel free to contact us anytime if you would like market information on specific neighborhoods.

Thanks!
Scott and Marni

To be considered a first-time homebuyer by the IRS, you must have not owned a home for the three years prior to your purchase. To be eligible for the tax credit as a current homeowner, you must have lived in your home for five consecutive years over the past 8 years. Homebuyers who buy a home between Nov. 7, 2009, and April 30, 2010 qualify.

Rules for first-time homebuyers:

First-time homebuyers who purchase a home between Nov. 7, 2009, and April 30, 2010 may be entitled to a tax credit up to 10% of the home sale price or $8,000, whichever is less. The home can’t cost more than $800,000. Income restrictions apply, and the tax credit begins to disapper at an income level of $225,000 for joint tax filers and $125,000 for individual tax filers.

You can earn the tax credit even if you do not own federal tax or you have little income. In this case, the tax credit becomes ‘refundable’, and you may receive the tax credit dollars by check or electronic deposit.

Tax credit for longtime homeowners:

If you’re a longtime homeowner and have lived in your primary residence five consecutive years out of the last eight, you may qualify for a homebuyer tax credit worth up to $6,500. Like a first-time homebuyer, you must enter into a home buying contract before April 30, 2010. Identical income resrictions apply, and the home can’t cost more than $800,000.

Many different kinds of principal residences qualify for the tax credit, including townhomes and condominiums. Mobile homes may also qualify, even if the land is leased. Make sure to check with a qualified accountant to ensure that you are eligible.

Marni and Scott

The number of single family homes for sale continues to decline, which has begun to stabilize home prices and decrease the housing glut. Total home sales in December of 2009 exceeded home sale in December of 2008, and the number of days that homes for sale are sitting on the market is declining.

Continued record low interest rates as well as extended federal tax-incentives for both first-time home buyers and move-up/move-down homebuyers have helped spark area home sales, especially in specific price ranges. It is an excellent time to buy.

Economic information presented on January 7th, 2010 at the annual Colorado Springs Economic Forecast shows projections of increased employment rates, average wages/salaries, and single family housing permits in 2010 compared to 2009.

As a side note, Colorado Springs has been ranked in the top 3 cities for Housing Recovery by Forbes.com, ranked 28th in the top Best Places To Live from CNN Money, and ranked 7th in the top places to Raise an Outdoor Kid by Backpacker Magazine.

Please feel free to contact us anytime if you would like market information on specific neighborhoods.

Thanks!
Scott and Marni