ResalesColorado Springs Reports Rocky Housing Market
Colorado Springs, Colorado Realtors report a continuing decline in the housing market with high-end sellers having to reduce prices to sell.
"Real estate markets have eased up in the recent months," says Realtor John Nagy. "It is a buyer"s market! Buyers seem to have an abundance of properties to choose from while high-end sellers in the $200,000 and up range are having to reduce their prices - in some cases substantially.
"It"s still a tough market out there," agrees Realtor Vicky Baker. "I"ve noticed some increased activity however it seems buyers are being extremely cautious about their home purchase. In these uncertain times, buyers are skittish, not sure if the economy is going to continue on it"s rebound or not. Never have home prices been so low and the interest rates so desirable as they are now. More people are able to purchase homes due to the low interest rates.
Advises Baker, "The caution here is if you wait in buying, it may be too late. Putting your hard-earned money into an equity gaining proposition is going to be one of your best financial decisions ever. As you may have noticed, the stock market is rebounding nicely. With that growth will also bring upon higher interest rates and higher property values. To buy now is getting the best of all worlds before interest rates start to rise and what was once affordable, is now unaffordable and out of reach. It"s difficult for sellers, but this is a prime time for buyers."
Realtors Harry and Deborah Salzman say, "Since June 13, 2003, we have seen mortgage rates increase by over a full percentage point. This is based upon the yield of the 10-year Treasury note rising from 3.11 percent to 4.42 percent during the same period. Currently, the interest rate of a 30-year fixed rate mortgage is 6.625 percent, and the rate for a 15-year fixed rate is 6.0 percent. Once again you, as a purchaser, should take a close look as to how long you might be in the property you are buying. The example would be: if you might only be in the property for 3-5 years, then obtain a loan that falls within those perimeters. Today, a 5/1 adjustable rate mortgage has an interest rate of 5.5 percent. Therefore, you will save 1 1/8 percent per year on a 5/1 adjustable compared to a 30-year fixed. The savings over that 5 year period equals 5 5/8 percent . If you had a loan amount of $200,000, you would save $11,250 over just 5 years by using that type of financing."
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