As expected, the housing market continues to bump along.  Are we in a double dip? Not likely, locally. The market is trying to work itself out and find its median ground.  Taking a look at the residential real estate market:  Home values are seeing some appreciation with a median increase of 4.8% over one year ago.  The Pikes Peak Regional Housing Department reports that there was increased activity in building permits this summer; a positive sign because the price per square foot on a new build is typically higher than an existing home making this a tough choice for many.  Interest rates continue to fall reaching record low numbers this last week; average thirty year is at 4.32% with 0.7 point down.  Last week, refinances accounted for 82% of all mortgage activity.  Finally, ...

while the number of foreclosure filings are increasing in El Paso County, many are being resolved and withdrawn before the foreclosure is executed. None of this news is spectacular and none of it is really all that bad.  Really the numbers haven’t changed much in any category for a very long time.

It is time for us to collectively admit a major shift has happened in our real estate psyche.  Expectations from the Realtor, Mortgage Broker, Seller and Buyer are so different today than they were in the pretty recent past.  No one expects pre-approval on a mortgage, or a house to sell within 30 days or buyers to just fall out of the sky.  While unemployment locally and nationally is edging upwards, it is being received quite differently across kitchen tables than it was two years ago.  Families have been preparing for potential job loss or decrease in benefits as they saw others in their neighborhood struggle.  This has strengthened the existing homeowner base and done so much to stabilize the foreclosure spiral. Very few buyers and sellers think that real estate will return to the days of double digit appreciation anytime in the near future; we (Realtors) must respect their wisdom and do the best we can to navigate the local market to find value and wisdom for our clients. The analysts must stop saying that they are “cautiously optimistic” about the future. The real estate markets have fallen, fallen hard and are stable. Growth will be slow for the next decade and consumers will buy houses because the house is their dream home (within their budget).