Atlas Real Estate Group
In one word, market conditions are robust. A proud member of Atlas Real Estate Group, the premier real estate investment company and brokerage team along the Front Range, I am often asked for an indication of the rental market in Colorado Springs. Here is a brief synopsis.
Market Conditions - Year over Year Rent Growth
At 11% according to Yardi®, we are top three in the nation when it comes to year over year rent growth, a finding consistent with what we see on a daily basis analyzing the market for our investor clientele. This is due to a myriad of factors, such as limited inventory, minimal construction activity and a level of population growth that has moved us up to being the nation's 40th most populous city and a "positive trajectory with respect to economic recovery and growth".
Market Conditions - Supply and Demand
The result of our robust market is high prices. This is bad news for wholesalers and flippers, a business model needing margins of 25% or better to make sense. Forced to seek elsewhere for the short term ROI they need, many are flocking to markets such as Indianapolis, St. Louis and others where housing prices are low enough to generate the profit margins they need. And this is where the downside takes a sharp decline.
Stepping over dollars for pennies, their capacity for building long term wealth is severely limited, as can be seen by much lower rent growth rates of 4.3% and 2.9% respectively.
Not to mention, and though cash is truly king in the rental game, appreciation cannot be overlooked. According to NeighborhoodScout®, Colorado Springs has shown an 8% in annual appreciation rate in the last 12 months, whereas Indianapolis, IN and St. Louis, MO show 4.73% and 6.14% rates respectively.
Market Conditions - Seeking New Clients
How's the market, you ask? Like Caribbean waters, warm and inviting. Come on in? Don't worry, no sharks allowed.
The process of buying a home can be overwhelming at times, but you don't need to go through it alone.
Source: Are You Thinking About Buying a Home?
Buying a Home - Helping many buyers and sellers to successfully transact real estate, we offer this comprehensive guide to buying a home this winter. With information including four great reasons to buy a home today instead of waiting, what will happen to interest rates, whether it's better to buy or rent, and more, the experts at the Axiom Realty Team are standing by to help and not in the traditional sense either.
After many years of institutional lending experience as a mortgage loan officer for major banks, we are experts at helping both buyers and sellers understand the lending side of things, a crucial part of the process. Still active in non-owner occupied lending circles, we are also able to help with hard and private money, business lines of credit, lease options, land contracts...whatever it takes to make the deal happen.
Partner with us and work with the finest professionals in the title, insurance, remodeling and other related service providers to make sure everything comes together smoothly and efficiently.
If you are thinking about buying a home, be it this winter or next summer, we are here to help. Please subscribe at the top left of this page and/or ask for your personalized consultation via the contact form at the bottom right. We'll work together with you to make it happen.
Thanks for reading. See you on the other side!
Mortgage rates continued lower today, largely getting caught up with yesterday's underlying market movements. Lenders were likely being cautious due to prospects for volatility in today's trading, not to mention the increased volatility seen on Tuesday and Wednesday. All things being equal, rates will
Source: Mortgage Rates Back Down to 6-Month Lows
Source: El Paso County, Colorado • Single Family Mortgage Bond Program
Be it your first or your last, buying a home is no small accomplishment. And when you're a first timer, there's so much to learn and so little time, since your lease is expiring and/or you've suddenly realized you'd rather not commit another year of mullah to pay for someone else's mortgage/retirement plan.
Though a tad more difficult to qualify for than the subprime days of yesteryear, for those with verifiable income, relatively stable employment and a decent (not necessarily excellent) credit score, today's borrowing environment is full of unprecedented opportunity.
- Market values are climbing, which might mean we have come out of the down cycle. Consequently, barring another economic collapse of course, prices will continue to rise for the next 8 - 11 years of our current real estate economic cycle*.
- Currently estimated to be up to 20% annually in some areas of Colorado**, this friend of ours is called appreciation, AKA your money-maker.
- OK. So, the $100,000 house you just bought appreciates at 20%. In theory, this means the house will be worth about $120,000 year 2, $144,000 year 3, $173,000 year 4 and so on.
- With 30 year fixed rate mortgages at about 4% annually, you are able to finance an asset at a lower interest rate than its projected appreciation! This is like your bank charging you less than the federal funds rate. Or like your three-year old used car being worth more today than it did new. You get the point?
- Market rents are pretty high and climbing, sometimes more than relative mortgage payments! For example, the Average Rent Price in Colorado Springs is $1,321***, the principal and interest payment for a $276,000 home, which is slightly above the average home price****.
- When you're a renter, consider your housing mullah turns into cosmic dust at about the 1st of each month, never to be seen again in this life, as opposed to the pixie dust that happens to homeowners when appreciation (and principal reduction) come together at about the same time, turning their home sweet home into a long term investment, even retirement tool.
- Many renters shy away from buying due to the cost, which includes a down payment, closings costs and other fees, all of which can add up. So for a little icing on the cake, consider the El Paso County Down Payment Assistance Grant contributes 4% of the purchase price towards down payment and closing costs.
Of course, there are property taxes, insurance, maintenance and other costs to consider with home ownership but overall, it's generally better to buy than rent, especially in our current environment.
If you're still reading you can go ahead and admit, it's time to buy a home. Conveniently located at the bottom right of this screen, use the contact form to setup your personalized consultation and see how easy it can be when you hire a knowledgeable professional to help.
Do it now, before the sky falls.
* REAL ESTATE CYCLES: THEY EXIST… AND ARE PREDICTABLE http://bit.ly/1q3duZF
** Colorado Appreciation Rates: http://www.neighborhoodscout.com/co/rates/
*** Colorado Springs Rental Market Summary: http://www.realtor.com/local/Colorado-Springs_CO/rent-prices
**** PPAR Housing Statistics, Average and Median Sales Prices: http://www.ppar.com/Statistics.aspx