A Decade of Equity-Black Forest 2006-2016

A Decade of Equity-Black Forest 2006-2016

Black Forest has always been a popular area, especially for those looking for privacy, trees and views. The area has a median sales price higher than Colorado Springs and the overall Pikes Peak Region. We are going to take a look at the median price sales data in Black Forest over the last decade.

Back in 2006 the median sales price in Black Forest was $411,048. That number is actually quite high, but it is important to remember that this number was fueled by easy “pre-crash” money and hot new subdivisions like Cathedral Pines and High Forest Ranch. Value in the area increased another 1.8% into 2007 before dropping 18% over the next four years to $339,500 in 2011.

Black Forest slowly began taking back some of the losses, along with the rest of the Colorado Springs real estate market, from the end of 2011 until June of 2013 and the tragic “Black Forest Fire”. Post fire, the fear in the real estate community was that values would see a negative effect based on the loss of trees. This was initially the case, especially with land values, but not so for the overall real estate market. The post fire median price in Black Forest has jumped a whopping 26.8% since the fire.

There are a number of factors contributing to this aggressive rate of appreciation. First of all, some of the areas most drastically affected by the fire were some of the oldest and most affordable neighborhoods in Black Forest. Once these areas were rebuilt and sold, the home prices were more in line with the rest of Black Forest. Additionally, many people did rebuild in order to sell or just flat out sold to builders, who in turn built to sell. Either way, these sales were modern construction on very large lots, and the land prices as well as the lot sizes are really responsible for driving up the median sales price.

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Moving forward, we anticipate values stabilizing, although demand looks to remain high in the area as new amenities move closer and closer.

If you are interested in talking to us about Black Forest Real Estate, please feel free to contact us, we would be happy to help.

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Why you should not rule out selling your home in the winter months

Why you should not rule out selling your home in the winter months

Winter will here before we know it, but that should not give you any concern at all if you are considering putting your home on the market for sale in the next few months.  Here are my reasons why:

1. The winter market can be less competitive for Sellers since many families will wait until Spring to list their home. Economics 101: Supply and demand.  Supply goes down, price goes up. This creates a unique opportunity for a Seller to make a little more money just by selling in the Winter months.

2.  The smaller amount of inventory in the form of active listings will allow Sellers to get more attention from a bigger pool of Buyers. This bigger pool of Buyers creates another unique opportunity for Sellers in the Winter months.  A bigger pool of existing Buyers will typically translate into shorter times before a Seller can expect an offer.  

3.  Many people do not know this, but many larger corporations will transfer existing employees or hire new ones early in the new year. During this time period, and especially in larger metro markets like Denver and Colorado Springs, this activity tends to produce highly motivated Buyers for Sellers listing their homes in the Winter.

4.  Buyers looking to purchase in the winter tend to be more bound and determined to buy. Most folks will not do a great deal of window shopping in the harsher weather months of December and January like they tend to do in warmer months like March and April. Listing your home in the Winter will likely eliminate some of the 'lookie loos' of the Spring months.   

To support my rationale, I found a study that came out in late December, 2013 from the online brokerage firm, Redfin. This study found that Sellers net more above asking price during the months of December, January, February, and March than they do from June through November. Further, homes listed in Winter sold faster than those listed in Spring. The likelihood of selling a home when listing in Denver broke down like this:  If you listed your home in Winter, you had a 77% chance of getting it sold in six months or less, in the Spring, you had a 64% chance, in the Summer, you had a 63% chance, and in the Fall, you had a 68% chance.

Winter is coming friends, and numbers don't lie! If you are needing or wanting to sell your home in the Winter months, you can and with confidence! Feel free to give me a call.

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