The foreclosure crisis in this country may seem like a statistic on the news that doesn’t affect you personally; so it is easy to ignore the headlines.  But foreclosure is a far-reaching problem, and if you are a homeowner who plans to sell in the near future, it can affect you too.  According to analysis presented in a Colorado Springs Gazette article entitled Foreclosure problem drags down home values, the impact is widespread.

Every time a home goes into foreclosure, it affects the property values of every home around it.  That’s because foreclosed homes tend to sit on the market much longer than those homes being sold by a real estate agent.  The longer any home is on the market, it increases the available inventory of homes.  When there are too many homes competing to be sold, inevitably the prices go down. This can be bad news for sellers, but excellent news for buyers.

If you are looking to buy a home in Colorado Springs, CO, you should know that many buyers have found that they can now afford homes that might otherwise have been out of their price range.  Also, whenever a fix-and-flip homebuyer comes into a neighborhood and fixes up a property, it can elevate the home values of those around it.

While foreclosure has hit hardest in places like Southern Florida, it hasn’t affected the Colorado Springs housing market quite as much, but there is still a steady flow of foreclosed homes entering the market regularly.

According to this article in The Gazette, analysis and interviews with realtors in the area has determined that they don’t expect a quick rebound in the real estate market.  The Gazette also consulted with economists and government officials to reveal some facts about Colorado Springs foreclosures.  They said there would still be significant discounts – averaging about $26,000 - for homes that sell after a foreclosure.

One economist from the University of Colorado fears that homeowners with adjustable rate mortgages will experience increases in rates this year.  This could cause another surge in foreclosure filings which could continue throughout the year, but even If Colorado Springs foreclosures went down in 2010, the filings would still be significant.

As long as the market is flooded with properties, homes in Colorado Springs should remain below market value, making this a great time to buy a home in the Pikes Peak region.

 

---

Add this page to your favorite Social Bookmarking websites

< Prev		Next >