Business and economics |

Here is a SWOT analysis of the Colorado Springs Real Estate market as of the end of quarter 1 2008.

StrengthsWeaknessesRelocation Season is Late due to delays in military relocations to the area (specifically seasonal Air Force Orders). Relo buyers seem to value strong condition & price creating opportunity for sellersBuyers relocating into the market are more likely than ever to have a contingency clouding their ability to close on a property they wish to purchase hereMost areas offer excellent selection and sellers will often pay some (or all) buyer closing costsBuilders are hesitant to start new developments that are already approved due to slow sell-through on their existing developmentsInterest rates are very near all-time lows. This helps purchasing activity, but anyone in an adjusting mortgage with some equity should consider now as “the time” to re-finance. This could have positive effects in slowing foreclosures locally and nationally.Interest Rates have been ridiculously volatile adding stress to many transactions. A buyer’s qualification at time of contract must be verified and secured with a locked rate as quickly as possibleOpportunitiesThreatsLiterally everywhere. The only way to know the market has reached bottom is when you see it in the rearview mirror and you’re moving away. If you’re a buyer, there are 20% fewer buyers operating at a time when sellers must be realistic in price and outstanding in condition.It appears more likely than not that Colorado is already in a recession. Lack of job growth slows buying traffic. Lack of income growth slows demand. Neither slows listing stimulus. While listing stimulus has eased 9 of the previous 11 months, recession impacts could heat up inventory again.Long-Term Rental Property Investments. Rental rates are clearly headed up and the low financing is a great opportunity. Financing not available in 2004 that is available today are investor mortgages that are a mere 1/8 percent higher with no additional closing fees than a primary residence mortgage.Securing the Olympic Training Center was extremely positive news on the job front. Until further new announcements show up though, most managers and most employees will likely remain negative on the overall economy.If you’re willing to stomach buying now and seeing another 6 to 12 months of market volatility, some of the good buys in the market make sense to considerThose that are risk averse will wish to sit on the sidelines to see sustained proof of market improvement.

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