Are we really looking into the layers of complexity about the housing market as we make our business plans for the rest of this year into next?
For Colorado Springs Realtors and others around the country, here’s some information, both pros and cons, to consider.
Regarding home prices, well… the cat is out of the bag. Home prices are affordable, stabilizing from the down markets over the past few years. As far as mortgage rates are concerned, well-qualified borrowers can get no cost loans at rates below 5%. That’s incredible.
Pertaining to the Colorado Springs Real Estate market, it remains a buyer’s market, though seller inventory is slightly on the rise. From my business experience this year, there is still that pocket of relocation buyer activity found in various price ranges. In a nutshell, people are still buying homes. And relevant to new home building, nationally as well as locally, permits have dramatically increased for 2010.
The uncertainty about the job market remains the elephant in the room. From the latest estimates, approximately 6.7 million Americans have been out of work longer than 27 weeks. And the higher unemployment rate for those of ages 16 to 24 could very well impact their earning abilities, as well as their future attitudes about work.
Regarding rising defaults, the prime loans outpace other economic indicators, as these are the fastest growing category of loan delinquencies. As a result, GSE’s continue to cut programs and have tightened credit, making it much more difficult to secure proper financing for home loans and business credit lines.
On the horizon for January 2011, Americans can expect the winepress to squeeze their lifestyles even tighter, as new taxation laws will take effect, potentially driving our mortgage rates into double-digit numbers. Also, the risk retention reform threatens to push mortgage rates even higher and loan buybacks are up 60%.
The silent hush word is now gaining a voice to be heard amongst distressed properties. Shadow inventory is no longer delayed by banks as record pace foreclosures are being uncovered in nearly every market.
I have to stop with the con list. Many other considerations of geo-political origin also directly impact the economics of our country.
So what do we do? Simply, even with the magnitude of challenges set before us in regards to the housing market, it’s important to consider the following (3) protocols:
- Gain a deeper understanding about the intangibles about what drives the market and how you are part of the real estate business model.
- Revisit the reconstruction of your business model – trimming unprofitable overhead expenditures, adding or subtracting encumbrances about your vision, evaluating hard-core costs versus investment in virtual marketing, just to mention a few.
- Make sure your inspired actions are synonymous with your beliefs. Even through the overwhelming obstacles, it’s important to eliminate self-limiting beliefs about your abilities and your style of doing business.
Feel free to contact our Colorado Springs Realtors at Selley Group Real Estate, LLC:
2139 Chuckwagon Rd, Ste 210 - Colorado Springs, Colorado 80919 - 719. 598. 5101
Portions of this article are written by Gordon, as framed by the expressed opinions of Cherise, but not proofread.