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Home sweet, expensive home: The hot Colorado housing market

WATCH Home Sweet Expensive Home

COLORADO SPRINGS, Colo. - Some are now considering Colorado one of the least affordable places to live.
With an influx of people and not enough houses to go around, home prices are at a high, making a competitive market for buyers. 

Dali Moncada and Ian Devillaz are under contract on a house in Colorado Springs, but it wasn’t without months of house hunting. 

“It was like a conveyor belt of people looking at one property. You felt so pressured to buy regardless of if it was what fit your needs,” Moncada said. 

 

Moncada and Devillaz saw dozens of homes, and even put an offer down on one.

Within that same day they were like 'No, they took another offer.’ It was that quick,” Devillaz said.

Devillaz did not see the house the couple is under contract on now before they put an offer down.

“Just the way the market was I said, ‘Babe, if you like it I trust you so let’s put an offer on it,’” Devillaz said.

Moncada and Devillaz aren’t the only buyers that have struggled in this market.

“I'm seeing that that market is actually kind of on fire right now,” Colorado Association of Realtors spokesperson, Kelly Moye said.

Moye has been watching Colorado become a true seller’s market.

She estimates houses are typically spending 25 days on the market.

“Things are moving faster than we have houses to sell, so our inventory is quite low and our demand is high,” Moye said.

Houses in Colorado Springs this year are selling for an average of $276,000 and in Denver $485,000.

Home Smart Realty Group Realtor, Michael Dillon, has had to navigate the housing market with his clients.

“We saw 20 people at the open house we're probably going to need to offer above asking price and then in certain cases significantly above asking price,” Dillon said.

Dillon is Moncada and Devillaz’s realtor, one house they considered had 27 showings in one day. Dillon said to even be considered, most buyers are having to pay more than a house’s list price.

“Once you find a good house in this market chances are you are offering listing price or above,” Dillon said.

For sellers, it means a significant amount of good offers to choose from.

“Literally, I would have stacks of offers on my desk,” Home Smart Realty Group realtor, Kristan Rigdon said.

Rigdon has worked with many sellers this year and said the intense Colorado real estate market this year took some adjusting how she works with clients.

“It was more preparing them not for how long they were going to be on the market, but strategically how they could...get the most number of offers,” Rigdon said.

But how long does this real estate boom last?

Moye said it can stick around as long as there are plenty of jobs, low-interest rates, and home prices stay affordable.

“It’s obviously a lot less affordable than it used to be,” Moye said. “Eventually if those numbers keep going up it's going to price people out of this market and they will have to go somewhere else.”

One thing to keep in mind is that home prices are closely tied to how well the stock market is doing. Currently, it’s in the second-longest bull market in history, and eventually, it will have to go back down, and with it, home prices can as well.


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