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Construction Bubble for New Homes in Colorado Springs?

by Alan T Daniels

Some people have been asking if there is a construction bubble for new homes in Colorado Springs.  If you are in the market to buy a new home in Colorado Springs and surrounding areas or know someone who is you may be asking yourself this question.  Is the pace of housing recovery unsustainable?  

Not according to Chief Economist of Realtor.com, Jonathan Smoke who explains: 

“The havoc during the last cycle was the result of building too many homes and of speculation fueled by loose credit. That’s the exact opposite of what we have today.”

We are still way below historic averages when looking at the number of housing starts over the last 30 years.  Especially when comparing the numbers of housing starts during the current recovery (2012 to now) to the massive numbers built during the run up to the housing bubble (2002-2006).

A housing start is defined as the number of permits issued for new construction units and we are comparing permits issued for single family housing starts for the most applicable comparison.

Now that we have seen the National comparison what is going on in El Paso County?  

  • Permits Issued in 2005 for El Paso County:  6,250
  • Permits Issued in 2015 for El Paso County:  2,939‚Äč
  • Permits Issued in July 2005 for El Paso County: 517
  • Permits Issued in July 2016 for El Paso County: 299

Source: Census Bureau 

Bottom Line

New homes (permits issued) in El Paso County are going up at about half the rate they were running up to the housing bubble.  Builders can’t keep up with current demand making it an extremely good market to buy new or resale housing in.  

If you are looking for new homes in Colorado Springs, Monument, Fountain and surrounding areas it is important to consult with a Realtor who specializes in new home construction to look at a number of variables which will protect your investment.

Click Here to Search New Homes For Sale in Colorado Springs and Surrounding Areas

New Home Building up in 2016!

by Alan Daniels

Listing inventory is extremely low and will continue to be in 2016 which is why Colorado Springs home builders will push to build the most new homes annually since 2006.  How will this effect your plans?

Home Sellers - This will create additional inventory but with the extreme lack of inventory it should not rain on your parade in 2016.  It will be interesting to track the effects of home builder inventory over the next 5 years though.  If you have a home in a new home community you will need a good Colorado Springs Realtor to come up with effective marketing techniques to compete with new homes.

Home Buyers - Additional inventory is great news for you!  The more the better they say and the same holds true when trying to find your dream home.  Make sure you are working with a Realtor who has access to every resale property and new home option.  When looking at new homes your Real Estate Agent should be able to show you the pluses and minuses whether buying a new home or resale.

Contact us today to put a plan together for you.

Beazer Homes is pulling out of Colorado!

by Alan Daniels
That's right, Beazer Homes is pulling out of Colorado! They were the eighth largest new home builder in the nation when they moved into the Colorado market in 2001. They have fallen on some tough times with a full investigation on mortgage fraud and over extending into different areas. Their stocks have dropped by 80 percent to less than $7.00 a share. Beazer Homes has said that they will pay all of their bills and honor all warranty obligations in the area. Keep in mind that there is no guarantee if they are not around in the future though. This is yet another reason on why an experienced Realtor can help advise you on New Home builders in Colorado Springs. A seasoned real estate agent has experience with all of the builders in town and usually gets a jump on issues like this. You can still find their Colorado Springs new homes in Claremont Ranch, Lowell, Soaring Eagles, Sweetwater Ridge, The Gables, and Wolf Ranch. There could be some good deals to come in order for them to move out quickly. Get with a Realtor to see if this would be the right move to meet your needs. 

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