Wondering why Colorado Springs is seeing a severe shortage of inventory this year? Here are a couple of reasons:
First, the median price of a home in Denver is currently $377,500, and the median price of a home in Colorado Springs is $246,800. As a result, folks from South Denver are having so much trouble finding a home to purchase there locally, that they are willing to commute the 45 minutes or so to Colorado Springs to save over $100,000 when purchasing a new home.
As a result, though, this migration is creating a large deficit in inventory for my own clients and customers who are here in Colorado Springs.The struggle really is real now, but for those of us practicing residential real estate, it is such a very, very good one!
Another reason is a combination of economic ones….the potential for increased interest rates, something that has not been done since the financial crisis that lasted from late 2007 through early summer, 2009, increasing apartment rents, a two-bedroom apartment in Colorado Springs rents for, on average, close to $1,200/month, and inflation are all contributing to buyers getting off the fence and into a home purchase.
This influx of would-be renters who are now want to be buyers is also contributing to keeping inventory at record lows.
While it is always a wise decision, in any market, to interview your real estate professional before hiring them to work for you, it is especially important in a market as unique as this one.
Find the right real estate professional who has the experience and longevity to successfully help you wade through all of the land mines that accompany a market that has not seen these kinds of shortages since mid-2001, and you are gold!
It would be my pleasure to answer any questions you may have regarding the market itself, and/or to help you to formulate exactly what questions you should be asking your potential agent for hire!