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June 22 2022

What Drives Real Estate Market Changes in Colorado Springs, Boise, and all Other Cities

If you’ve looked at homes on the internet or turned the news on at any time during the past 6 months, it’s likely that you’ve heard about drastic changes in the Real Estate market and home buying/selling. If you take anything away from this article, it’s this one thing; NEVER PANIC.

60 Days in a Normal Balanced Real Estate Market

Panic Buying has caused tremendous inflation among new homes in the last 6 months. Last February, Colorado Springs, Colorado, only had about 290 homes available for purchase, when normally, the Springs  needs about 4,000 homes available to maintain a healthy balance. Having a “shortage” of homes meant that sellers received many offers and went under contract in just 1-3 days. Now that homes are taking 6-15 days to sell, many sellers and inexperienced real estate agents have panicked and slashed For-Sale home prices drastically, as if their homes equate to the stock market. Big Nugget #2: A home is a Long Term Investment in the owner’s future.

In a standard real estate market, homes take up to 60 days to sell. Panic Selling only causes fear and frustration among homeowners, and keep in mind, Mainstream Media loves fear and panic.

Appraisal Impacts

Whenever a home sells, it becomes a comparable for the next 6 months and for all homes within a 1 mile radius. A standard Comparable Appraisal (a Comp) establishes a general value for the homes in its neighborhood. In recent times in cities such as Colorado Springs, CO, or Boise, Idaho, Home values have risen because buyers have bought homes with large appraisal gaps. Even in a shifted market, a realtor friend of mine sold a house recently in Peyton, Colorado, for $15,000 over asking price and well over the appraisal.

Buying in an Appreciating Market

The advantage of buying in a market, such as now, means that the home you purchase is based off of the value of other homes that have recently sold, and your investment will retain its value. The disadvantage of buying in today’s market is the threat of Panic Selling. When a panicked seller starts slashing prices on their home, once it sells, that home becomes the newest comparable for future appraisals. If other homes in that neighborhood slash prices, that means in 6 months time, your home that you purchased 6 months ago will have lost its value, simply because your neighbors panicked, and slashed their home sale prices.

Regardless of whether the market is going up or down, the value of any home is based off of the appraisal of that home. So make wise decisions, understand what homes HAVE sold at and ARE going under contract for. Do not worry about the asking price of homes and by all means, Avoid Panic Buying and Panic Selling, your community, and life savings, will thank you for it.

Real Estate Markets Change Every 6 Months

Remember that the real estate market changes based on the sold prices of neighboring homes in the past 6 months. The market may change a little or a lot, but it is going to change regardless of whether you’re in or out. Whatever your situation, there’s a Juicy Solution waiting for you. Take a look around the website for helpful resources and blog tips on what goes into obtaining a home loan to buy, build, or refinance.

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