The consensus over all is that prices will continue to rise. Although appreciation rates over the long run will continue to rise, just like inflation.
On a recent Trulia Q&A one specialist wrote that “Land will always appreciate… if you think about it…It’s much like the game of monopoly, We aren’t necessarily making any more “land”…so it seems to be a fixed commodity.
Simple economics tells you that with a fixed number of parcels/land and an ever increasing in demand for it…The prices will increase over time and sometimes in the short run like what we have right now…
The supply of properties is relatively low compared to the demand. Colorado Springs has way more people looking to buy entry level homes that there are available. In addition, we have people outside of Colorado coming in and wanting to buy as much of this as they can , so that will drive the prices higher.
We have already surpassed a lot of the collapse of the market from 2007. Anything is possible . We could see some kind of a drop, but that would be temporary at best.
For most folks , if you can afford to buy now and get into a property vs. paying rent, then it would seem to make sense to take that action! The interest rates are still low and the prices are just coming up.
If you wait 12 months to buy and you were paying $1500/month in rent, then technically you just paid someone else’s mortgage to the tune of $18,000. When you rent you do not get tax deduction it is merely a roof over your head…but if you owned a piece of land/home then you at least got the tax break, great interest rate for 30 years and you know rates are going to have to go higher…. and whatever appreciation that the property incurred?
If your not quite able to purchase but you are getting close the idea of a rent to own may be perfect to you. There is a little more inventory to choose from, you can move in now and not have to worry about not finding anything when you are ready. You will be ahead of the game and take advantage of the market.