With the Fed continuing to lower interest rates, I am optimistic for Colorado Springs real estate in 2008, although January will probably not be a great closing month. Our unsold inventory is holding at fewer than 5500 units, which is a very good sign, down almost 2000 units from the peak last summer. In addition, with today being the last day of the reporting month, there are almost 900 units pending (in escrow), which bodes well for the next month.

Sometimes the week day a month ends on can make a difference as to how closings happen, and can affect statistical reporting. Many / most people prefer to close toward the end of the month, or on the very 1st day of the month, because the buyer is charged minimal prepaid interest in their closing costs. In addition, many people like to move on the weekend, and so Fridays tend to be popular closing days. When a month ends on a Thursday, as it does this month, there will be closings that are held on the 1st that might normally have happened earlier. We'll see how the actually number line up, but it would be my guess that we will see around 600 sales for January, and closer to 800 for February, even though it is a shorter month.

The current national real estate slump is having an impact that I had not really anticipated. When someone moves here from out of state that has sold their home, we assume they probably have equity, and are not in need of "zero down" financing. However, with the market being tough all over the country, that is not necessarily so, and sometimes equity has disappeared with price declines in other areas, resulting in someone "starting over" in the home equity building process, but not being a 1st time homebuyer either. Fortunately, we still have programs for this, and if you anticipate that will be your situation, you should speak with Dana Hines at Colorado Online Mortgage (719-593-8778) about it. She can advise you on the program that will best fit your needs.