There are three main reasons why Colorado Springs is experiencing high demand with much lower supply. But this doesn’t mean we are in a bubble.
 
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Right now in Colorado Springs, many people believe that we’re in the same bubble situation as we were in 2008.

As you may know, a real estate bubble occurs when there is an imbalance between supply and demand. But is this really the case?

The truth is that today in 2017 our circumstances are actually much different than they were in 2008.

Currently, demand is far outpacing supply. This is primarily because of three things.

First of all, the Denver real estate market is red hot. So because buyers can get a similarly sized home in a similar neighborhood here in Colorado Springs for $100,000 less, they are buying out much of the inventory in the north end of town.

The next contributing factor is that new home construction has been declining since 2008 and hasn’t kept up with the demand.

Prior to 2008, homes were being built at a rate of a million homes per year, but that number has since been cut in half.

Finally, demand is also high because of the large number of first-time homebuyers who are seeking out job opportunities in our area.

"In 2017 our circumstances are actually much different than they were in 2008."

As long as interest rates remain low, prices will likely to continue to rise in the next 12 to 18 months around 6% to 7%, meaning we are, in fact, not in a bubble.

Therefore, the next couple of years will look good for the market as long as demand stays strong.

If you have any other questions or would like help with any of your real estate needs, feel free to contact us by giving us a call or sending an email. We look forward to hearing from you soon.