The Flying Horse REalty Report
Your Gateway to the Northern Communities
National
Will the Uptick Stick? There has been an uptick in buyer interest since the beginning of the year related to three key things: seasonality, acceptance, and discounts (Fortune)
One Diagnosis. The housing market is like a patient coming off a strong narcotic. The result isn’t a housing recesssion…it’s a return to normalcy (Money.com)
Going Back to Normal. Over the last 50 yers, 30-year mortgage rates have averaged 7.75 percent. Mortgage rates in the 6 to 7 percent range were common as recently as 2008. (NerdWallet)
Demand is Ther. Seventy percent of Americans who had planned to buy a home in 2022 did not succeed. Some of them made offers that were not accepted. Others shelved their plans because they couldn’t find affordable homes. (Harris poll)
And Will Stay Around for a While. Household formation levels are expected to frow and be a “tailwind for housing’s future” through the rest of the decade. With mortgage rates where they are, housing needs all the tailwids it can get. (John Burns Consulting)
Not Crashworthy. For 2023, the Nat’l Assoc of Homebuilders still forecasts an average sale price of $385,800…about the same as 2022. However, Redfin predicts a 4 percent drop: bad news for sellers, but hardly a crash. (NAHB, Redfin)
Let’s Stay Put. Over 80% of current homeowners now have a mortgage rate of under 4%, which makes the prospect of moving and financing a new residence less enticing. (Bank of America)
Colorado
Work it Out. When it comes to available jobs for unemployed workers, Colorado is in about the middle nationally, with 1.64 jobs for every unemployed person. North Dakota is highest at 3.13 and Delaware lowest at 1.15 (Bureau of Labor Stats)
A Taxing Time. Colorado howeowners, no longer prtoected by the Gallagher Amendment, could face unprecendented incresases in their property taxes next year as the run-up in home prices during the pandemic works its way into the state’s tax base. (Denver Post)
Let’s Be Real. Sellers were getting 101% of the list price for single-family homes in Colorado in January 2022, but that dropped to 97.9% of the listing price in January, 2023. (Denver Business Journal)
Live Where You Work. As the Denver housing shortage continues, City leaders are researching ways of converting outdated/empty downtown office buildings into much-needed housing. During the pandemic, that area lost more than 1,000 businesses. (Denver Post)
No Surprise Here. On averag,e nationwide home prices have appreciated over the past 32 years by 288.7%. Colorado home prices, during the same period, have appreciated 578.8%. (KCM)
Alson Not Surprised. In Denver over the past 12 years, rents have more than doubled and the cost of a typical home has risen 165%, pushing out many low-income households and severely stretching others. (Denver Post)
Be Prepared. The incentive for existing home inventory to come on the market is really low right now. So, we’d expect more home buyers to be pushed into the new home market. (Bank of America)
el Paso County
Start Packing! What does Colorado Springs have in common with Ljubljana, Slovenia (and a number of other world-wide destinations)? Both were listed recently as being among the top 50 places “In The World” to visit in 2023. (Forbes)
To Be- Or Not To Be. In 2022, average rents for a 2 BR apartment in Colorado Springs ($1,514) were well above the $1,151 that HUD says is the maximum amount that a family of four should pay to meet the HUD definition of “affordable housing”. (City of C.S.)
But who’s Counting? The average sale price of a home in Colorado Springs was $415K last month, down 2.4% since last year. The average sale price per square foot in Colorado Springs is $203, down 4.0% since last year. (Redfin)
Eastward Ho! Los Angeles homebuyers have been searching to move into Colorado Springs more than any other metro… followed by Washington and Boston. (Redfin)
A Mixed Bag, The Colorado Springs market has seen an increase in the inventory of homes for sale and the time it takes to sell a home. Additionally, the median sales price has decreased slightly, although the average sales prices has increased. (Norada)
Who Knew? In terms of the housing forecast, the Colorado Springs market should remain stable over the next year. this indicates that home valudes are expected to remain relatively consistent, and there are not likely to be significant changes. (Zillow)
Be Not Concerned. The housing market for Colorado Springs suggest a slight decline in the short term but a recovery in the long term. (Norada)