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What is a 'Buyer's Market'?

By
Real Estate Agent with Keller Williams

A "Buyer's Market".....the term is thrown around casually; it's easy to use and slightly aloof, covering a wide range of market conditions, but still sounds smart and technical, even if you aren't exactly sure what you are talking about.

If you have been telling your friends and relatives that the housing market in Colorado Springs is a Buyer's Market....you're right.  For now.  The market is dynamic, and will change.  The market is driven by many factors, and if you are paying attention you can identify the trends in the housing market and predict, in general, what the future holds.  This, in no way, is a guarantee, but will provide a good idea of upcoming events.

The housing market doesn't turn on a dime.  The trends are slow going, and pretty circular.  As businesses move to the area, the population grows, the local economy grows, and new homes are built.  It's a grand time.  Builders are on the forefront, watching the factors that affect the local economy.  As the builders build and build, they begin to build 'spec' homes.  These homes are built either under a contract with a Buyer that needs to sell their existing home before they can move (contingency), or the builder builds 'spec' homes with the expectation that there is a buyer out there for this home. (If they build it, you will come) 

In the meantime, existing homes still have to sell as well.  Residents have to move for one reason or another, job change, family circumstances, desire for a different home, etc.  The market becomes saturated with homes. 

The builders slow their building as they are sitting on unsold homes.  Their numbers slow.  (Notice I said slow, not stopped.  One trip East to Banning Lewis, or North to Flying Horse and you will see building continues).   As buyers purchase the builder's existing inventory, the number of available homes on the market shrinks.  This gives the existing home market a chance to catch up.  As the existing home market shrinks, the desire for new homes will increase again. 

What does this mean for Colorado Springs homes?  The Springs, El Paso County to be exact,  currently has 6968 homes on the market.  Of those, 5769 are single family homes.  This is just the homes that make it into the MLS.  (If you are considering selling your home by owner, I hope this is a wake up call)  6968...6968!!  That's a lot of homes.  About seven months of inventory.  So, that means the homes in Colorado Springs are a steal!-I don't think so, Tim.

Colorado Springs is not in a 'bust' economy.  You are not going to get a home for pennies on the dollar.  Colorado Springs is an area that is holding it's value.  This is a very family friendly town.  Colorado Springs is proud of our military installations.  We are home to the Olympic Training Center.  Colorado Springs is not the 'Wal-Mart' of towns. 

What a 'Buyer's Market' in Colorado Springs means is that right now buyers have a lot of homes to choose from, and can get a home that is an excellent value.  Interest rates are still very low, and Colorado is offering amazing loan programs with Bond money.  Buyers have a great variety of homes to choose from, that are priced 'right' (not dirt cheap, but at a good value) and good loan options as well.  That is what makes up our 'Buyer's Market'.