NEW Building on Pueblo
Pueblo has plenty of new subdivisions under construction offering new housing options from apatments to single family homes.
The Pueblo Chieftain
Pueblo’s “crazy” residential real estate market is showing no signs of letting up as statistics show 2021 is on track to blow 2020 real estate sales amounts out of the water.
Reflecting on data from the first six months of sales, Pueblo Association of Realtors Board Director David Anderson admitted, “It is just crazy and that’s just the reality.”
In 2020, 3,082 residential properties sold for $745 million. So far this year, 1,422 residential properties have sold for $396.5 million, which means Pueblo County sales are on track to zoom past 2020’s numbers by about $50 million.
By June of 2020, 1,336 homes had sold for $298.9 million. This year’s totals through June represent an increase of $97.5 million in sales with only 86 additional properties sold.
“You’ve got not a whole lot more sales in six months, but the prices are going up 10 to 20%, which varies depending on property,” Anderson said.
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There’s high demand and low inventory in Pueblo County
High demand and low inventory is driving Pueblo’s housing market.
“When you look at the median price year to date it is up 22.7%. What’s happening is the seller is probably selling their home for more than what they think it will be and the buyers are going to pay more than what they want,” Anderson said.
Anderson explained that low interest rates are motivating factors for those buying. He also said many home buyers are younger than those who would be buying a decade ago.
Anderson also said low inventory is making it tough to buy a home.
“People are not selling their homes. Many over-65 retired people are not moving — they aren’t selling their home to move south,” Anderson said.
“In our case, we don’t have the older homes selling and it is not meeting demand. That is maybe 10 to 15% of the inventory that would be out there.”
Another impact on Pueblo’s market was the COVID-19 pandemic which allowed people to “realize they don’t have to work in Denver — they can come to Pueblo, Pueblo West or Canon City and work remote.
“They are living away from that (metropolitan area),” Anderson said. “That’s some of it.”
“All those factors can end up driving multiple offers on each home that is listed for sale. That drives up the price “anywhere from $1,000 to $50,000 over the list price,” he said.
In bigger markets that can even be $100,000 above list price, Anderson said, pointing out the percentage of list price received in Pueblo is up 101.2% so far this year.
Sellers are in control in Pueblo
When a seller gets multiple offers, they are in the driver’s seat.
“You analyze the offers. The best offer is going to be cash,” Anderson said.
The least attractive offers are going to be buyers with Veterans Administration or Federal Housing Administration loans.
“The appraisals are going to be tougher and there won’t be any concessions because the buyer is not going to lower the price to make it affordable for them,” Anderson said.
Buyers, on the other hand, will make one to six offers before getting a house.
Because interest rates “change every day” it is imperative that potential buyers get prequalified for a loan by talking to a lender to find out the amount of loan they are qualified to obtain.
“Being prequalified is really important and part of that is putting money away,” he said.
If the buyer has to go over that loan amount by $5,000 to get a home, they have to have that cash in hand because the loan won’t cover it.
As of July 19, in Pueblo West 61 homes were on the market and 136 homes were under contract. Prices are up but in three or four days to a week’s time, all those new listings will be gone, he said.
Patience is required for Pueblo home buyers
Anderson said his best advice for buyers is one word: patience.
“I just closed on a home for one woman who is moving here and we found a home that fit her well but it took a month to a month and a half of looking. The buyer needs patience and needs to be flexible,” he said.
The influx of builders constructing new homes in Pueblo such as Richmond American Homes and Saint Aubyn Homes will help alleviate some of the real estate market pressure because, “we do have water here and Pueblo West has water and that is the first really important thing,” needed before the building of new housing developments, Anderson said.
There were 66 new building permits pulled in June 2021 and 387 so far this year.
As has been the trend, “Pueblo West is leading the permit count with 291 pulled so far this year,” Anderson said.
Chieftain reporter Tracy Harmon covers business news. She can be reached by email at firstname.lastname@example.org or via Twitter at twitter.com/tracywumps.