The housing market locally and across the nation is taking a breather from the activity of the last eighteen months and trying to find itself.  July numbers demonstrate a decrease of 27% in year over year existing home sales activity and a 12% decline in new homes sales.  A major decline was widely expected by economic and industry analysts; free of any external influences such as federal stimulus plans, free market forces will take over.

In spite of declining activity, pricing continues to stabilize and even improve.  Delinquencies, short sales and foreclosures are becoming less of a force on the appraisal process.  Freddie Mac, one of the largest guarantors of residential loans, reports that the delinquency rate on single family homes continues to decline to 3.89%.  This is still higher than one year ago, but...

is showing a reversal of the upward climb.  Demand has helped many areas in Colorado Springs see a significant appreciation.  Even after the expiration of the Federal Tax Credit, certain Pikes Peak areas are continuing to see appreciation.  Take for instance the neighborhood of Antelope Meadows in the Northeast area of Colorado Springs.  Houses are continuing to garner contracts for prices higher than seen in the peak of the bubble.  One house in particular was purchased in 2007 for a little better than $250,000 went on the market less than four weeks ago, is under contract for $265,000.  A similar occurrence happened in June in the same neighborhood.

Freddie Mac reports in its weekly survey of mortgage lenders that interest rates for a fixed rate 30 year mortgage ended the week at 4.36% with an average of 0.7 points down.  A fixed rate 15 year mortgage is currently at 3.86% with 0.6 points down.  In spite of record low interest rates, mortgage application activity is negligible.  Continued job market fears and tight lending practices are holding the market back.  In spite of extraordinary rental rates, apartment building owners are scrambling to make their payments.  The number of 60 day delinquencies is inching upward.  Pressure is mounting on the local commercial real estate market with many management companies just trying to cover operating expenses.  It is pretty easy to find great space at less than $10 per square foot gross; great for entrepreneurs considering the development of a new enterprise or expansion of an existing business.