Here’s the rundown on the market right now!
Category Archives: Economy
Complexity economics and the housing market
W. Brian Arthur posits that our economy isn’t a machine but is more an organic and constantly evolving system. He’s coined the term complexity economics. From the article, “Complexity economics asks how individual behaviors in a situation might react to the pattern they together create, and how that pattern would alter itself as a result, causing the agents to react anew.”
Bear with me here but I think the housing market is a good example of complexity economics. A pattern arises from the collective action of sellers, buyers and renters. However, as the pattern emerges, the same individual actors will then react to the emerging pattern and, in doing so, alter the pattern.
For example, an active market with a shrinking inventory prompts renters to purchase, sellers to list their homes. Buyers are affected, too, as prices increase. The end result is new pattern, born of individual actions.
If you’d like to read more about this idea, here’s the Wiki link! I’m going to be doing a series on this topic, too. More to follow!
Gazette: Colorado Springs’ housing market expected to be red-hot
I don’t disagree with this assessment, including the piece about the tight rental market. There is an interesting data point to keep an eye on as well, with this discussion: we are a town with a lot of VA loans. The military BAH has a lot to do with pricing here. If BAH doesn’t increase, what will that do to our prices?
Looking to buy or sell in Colorado Springs? I’d be honored to help!
Boulder area hits average of $1M for a four bed…
Wow. Boulder is now one of the most expensive housing markets in the nation, according to the Denver Post.
By contrast there are 414 four bedroom homes on the market at the time of this post for $300,000 or under in Colorado Springs.
In the market? I’d be honored to help!
From the inbox: can I flip a house for no money out of pocket?
This is a REALLY GOOD QUESTION. And the answer is not short. Rather, the short answer is: that’s complicated.
Generally speaking, no. There are a number of methodologies out there on the Internets that speak to ways to do this but my advice here is (pardon the caps): PROCEED WITH CAUTION.
The circumstances of a flip are so varied I’m struggling with how to capture this is a broad overview post. I would suggest that flipping a home is not for the faint of heart. Nor should you do so (in my opinion) without a Plan B. Plan B is this: can I carry the house for the length of time it needs to sell or will it rent out for the carrying costs?
Specific to ‘no money out of pocket’: a real estate transaction costs money. There’s no two ways about it. Where does that money come from? Could be an investor, could be your account. Always, always account for these costs.
If you want to take specifics about the Colorado Springs markets, please give me a ring at 719-440-6626!
Old Colorado City: 60 day activity
From the inbox: What’s the OCC market look like?
Here you go! This is the last 60 days market activity…
And the current pricing break out:
If buying is an option, I’d be honored to earn your business!
DATA SOURCE: PPAR MLS derived statistics
Colorado Springs: State of the Rental Market
Looking to rent a home in Colorado Springs? Interestingly, there are 120 MLS listed Single Family Homes (SFH) w/3+ bedrooms on the market at $1500 and below. There are 102 on the market at $1501 and above.
If buying is an option, I’d be honored to earn your business!
DATA SOURCE: PPAR MLS derived statistics
Colorado Springs plans to create a hub of shops…
I think this is a really cool idea. Kind of a Pike Place Market space (Seattle natives, back me up)?
I think efforts to bring more jobs and businesses to the Springs are a really good idea!
Colorado Springs: HUD Report 2014
If I’m reading HUD’s schedule correctly, we’re due soon for an update but this is a comprehensive report with some great historical data on our city.
From the inbox: why don’t people do rent to own?
The answer to this one is complex. The short answer is that in this market, they generally don’t have to. The demand for housing is high and interests rates are so low that the majority of buyers don’t need this type of financing, either.
The longer answer is that a rent to own is not a simple transaction. A lot of folks think this is an easier option than a traditional purchase but that’s not the case. Generally speaking, it’s more advantageous for a homebuyer to purchase a home “traditionally” than rent to own (a.k.a. lease options) a home.
Rent to own (lease option) often requires a substantial down payment. Also, this money is lost to the seller should you the buyer choose not to execute a sale.
That said, they have their place in a market. If a person would like to buy a home but needs time to work on their credit, it’s an option. However, always consult with a lender, Realtor and attorney prior to signing or drafting a lease purchase option contract.
**THIS IS NOT LEGAL ADVICE**
Looking to buy or sell a home in Colorado Springs? Call Rob at 719-440-6626!