Colorado Springs CO Real Estate Blog

If you live here it should come as no surprise that once again Colorado Springs has received positive national press.  During a period of difficult economic times across the country, Business Week recently place Colorado Springs as one of the Top 10 places to start over where the jobs are.  Business Week ranked Colorado Springs in the #8 spot out of 20 locations with 22% of local employers planning on hiring in the next quarter.  Business Week placed it’s rankings based on a Manpower survey conducted on April 6th - 29th of 28,348 employers.  The best potential job prospects were identified in construction, nondurable goods manufacturing, wholesale & retail trade, information, financial activities, leisure & hospitality, other services and government. To preview more Colorado Springs media attention visit my Springs Media Page.

We are starting to see signs of strength in the Colorado Springs real estate market.  Colorado Springs home buyers are taking advantage of historically low interest rates, the first time home buyers, and a lower average sales price for single family homes.  These factors combined with an influx of troops coming to Ft Carson has sparked an increase in home sales for the under $350,000 price point.  Historically, January and February are the slowest months of the year for real estate sales in Colorado Springs with May and June representing the two best months.  Every year home sales resulting from seasonal activity starts to increase in March and April.  This years seasonal activity is looking healthy with an increase in buyer activity.  Combine the home buyer increase with a decline in total Colorado Springs housing inventory of 10.7% from the same period last year and we have the key indicators in place to make the upcoming busiest months for Colorado Springs real estate sales a positive one.  

Check out this new Single-family property that I just posted on my Web site. It is at 270 Paisley Dr. in Colorado Springs. This Single-family property has 5 bedrooms and 3 baths.

For qualified home buyers there is a new and improved tax credit from the credit that what was offered last year.  The $787 billion stimulus bill that President Obama recently signed into law has modified the home buyer tax credit of 2008.  The new tax credit appears to be a significant improvement for eligible home buyers.  Last years credit allowed for up to a $7,500 tax credit for “first time home buyers”.  Although that looks nice it was essentially a 0 interest loan that needed to be paid back.  The new bill increased the cap slightly to $8,000 and unless you sell your home within 3 years it does not need to be repaid.  The bill allows the credit for qualified “first time home buyers” who purchased a home after January 1st 2009.  A first time home buyer is defined in this bill as someone who has not owned a primary residence for three years before buying a house.  The tax credit does have income limitations for eligibility.  Single buyers need to have an adjusted gross income of $75,000 or less and married couples need to have less than $150,000.  Earnings higher than these are eligible for reduced credits.  The tax credit is “refundable” so qualified buyers can still take advantage of the credit even if they have limited tax liability.  Buyers who take advantage of the tax credit will not need to repay the amount if they own the home for more than three years.  If they sell the home before three years the tax credit will need to be returned to the government, with certain exceptions like divorce or death.  If this tax credit is something that you may be interested in taking advantage of please contact your accountant for more details.

Check out this new Single-family property that I just posted on my Web site. It is at 1940 Quadrangle Ct. in Colorado Springs. This Single-family property has 5 bedrooms and 5 baths.

Good news for the Colorado Springs housing market as mortgage rates have recently experienced a sharp drop as a result of favorable federal actions.  A few weeks ago the Federal Reserve announced a plan to purchase up to $600 Billion of mortgage backed securities from Fannie Mae and Freddie Mac.  This announcement resulted in a near immediate drop of interest rates by about 1/2 percent.  Since this announcement conventional 30 yr fixed rate mortgages have been holding steady in the low 5%.  In addition to this action by the Federal Reserve The Wall Street Journal leaked a rumor that the Treasury Department is considering a proposal to buy mortgage back securities from Fannie Mae, Freddie Mac and the Federal Housing Administration which would drop rates down to 4.5%.  Although this measure by the Treasury Department has not been enacted and it is still considered something that is only under consideration, it would offer a tremendous incentive to anyone who will or is considering purchasing real estate in Colorado Springs or across the nation.

On July 30th, 2008, President Bush signed the Housing & Economic Recovery Act of 2008 (H.R. 3221).  Part of this housing bill created by Congress includes the First-time Homebuyer Tax Credit.  This tax credit comes as a welcome benefit for select home buyers currently considering purchasing a home here in Colorado Springs or across the country.  Despite the welcome incentive for “first-time” homebuyers there are many questions regarding this legislation that need to be understood by the public.  The tax incentive states that eligible “first-time” home purchaser’s can receive a tax credit of 10% of the home purchase price up to a maximum of $7,500.  Basic eligibility includes “first-time” homebuyers who purchase a home as their principal residence on/after April 9th 2008 - before July 1st 2009.  First-time homebuyers are defined in this bill as an individual (to include the purchaser’s spouse) who have not had ownership interest in a principal residence in the previous three years.  Eligibility is also derived from personal income based on your tax filing status as follows: individual filing making less than $75,000 per year and those who file jointly making less than $150,000.  The tax credit also includes a phase out scale which reduces the amount of the tax credit gradually up to the maximum income levels of $95,000 for individual filing and $170,000 for joint filling. 

So what’s the catch?  You have to pay back the tax credit…..  The government is not offering a “free” cash incentive but rather a interest free loan as many have called it.  If you are eligible and decide to take the tax credit you will be required to start paying it back two years after the credit is claimed.  The payback rate is extended over 15 years at an annual amount of 6.67% of the tax credit that you received or approx. $500/year for the full $7,500 credit.  If you sell your home before this 15 year repayment period ends, the seller is required to immediately pay back the remaining balance of the credit.  So, if you have to pay the credit back why is this a good incentive?  Because it is interest free.  Although this tax credit incentive is not ideal for everyone, if it used properly it can be a nice benefit.  How often can you receive what is essentially an interest free loan for $7,500?  The value of $7,500 today is worth more than the value of $7,500 in the future as a result of inflation.  It is a possibility to use this tax credit to earn interest over a period of time rather than pay interest over time to help better your future financial situation.

Depending on your individual situation, if used properly this tax credit could be a nice benefit to your financial situation.  The information that was provided are just basic details of the First-time Homebuyer Tax Credit that are subject to change and there are more details that were not provided in this blog so please contact your tax advisor for more details and to see if the credit would be beneficial for you.  Also, please visit http://www.realtor.org/gapublic.nsf/pages/hr_3221_key_provisions and click on the, First-time homebuyer tax credit chart and Frequently asked questions about the first-time homebuyer tax credit, links for more information.        

Check out this new Single-family property that I just posted on my Web site. It is at 2805 Meadow Run in Colorado Springs. This Single-family property has 6 bedrooms and 6 baths.

Check out this new Single-family property that I just posted on my Web site. It is at 9355 Stoneglen in Colorado Springs. This Single-family property has 5 bedrooms and 5 baths.

Check out this new Single-family property that I just posted on my Web site. It is at Whiskey River in Colorado Springs. This Single-family property has 4 bedrooms and 4 baths.