If you or someone you know has a home for sale in Colorado Springs, chances are you are aware that there are fewer home buyers out looking for homes. The reason for the drop in Colorado Springs home buyers is part of a cycle that started when the mortgage industry was turned upside down.

The process of buying and selling a home in Colorado Springs is actually a series of events.

The people involved in this series of events are:

First Time Home Buyers: People looking to buy their first home and do not have a home to sell. They are looking for their first home, and will more than likely buy something relatively inexpensive and easy to care for.

Read Also: Colorado Springs Home Sellers: 5 Tips for Selling Your Home to First Time Home Buyers

Move Up Buyers: People who bought their first home and now need to sell it, usually to buy something larger and more conducive to their growing family and changinfg lifestyle. They need to sell their current home before they can buy their next home. These are also people who may have bought and sold a couple homes in the past, but are still looking for a bigger and better home. This is the largest group of Home Buyers in Colorado Springs.

Move Down Buyers: People who have bought and sold several homes and are looking to buy their final home. Many times these people have children who have moved out, and so they are looking for a smaller home that has a lower mortgage payment and that requires less maintenance. Sometimes their home needs can be similar to a first time home buyer needs. These people usually need to sell their current home before they buy their next home.

Relocaters: These home buyers are wild cards. People looking to relocate to Colorado Springs will arrive here at any point in this series of events. Depending on the real estate market of where they are moving from, they usually are ready to buy right away.

Investors: These are another group of wild card home buyers. They do not need to sell a home before they can purchase a property, and will usually wait until a "good deal" comes onto the Colorado Springs real estate market. Depending on their investment needs, they could buy any home at anytime.

To understand the reason why there are less home buyers in the Colorado Springs Real Estate market, we need only to study the relationship between the First Time Home Buyers, Move Up Buyers and Move Down Buyers. The Relocaters and Investors are not predictible enough to really sway this series of events at this time.

For several years, there were many mortgage options for first time home buyers. Almost anyone with a pulse could get a home loan. Hundreds and thousands of people moved out of their apartments and into the homes that Move Up Buyers were selling.

In turn, these Move Up Buyers were buying the homes that the Move Down Buyers were selling, who in turn were buying the homes that the Move Up Buyers were selling.

When the mortgage industry readjusted, most first time loan programs went out the window and qualifications for mortgages got much tougher, causing a drastic decrease in First Time home buyers able to qualify for a mortage loan and buy a home.

Ultimately, this is a necessary blancing of the Colorado Springs Real Estate market. However, there is always a ripple effect that needs to be acknowledged.

If there are less First Time Home Buyers able to buy, then that means that less Move Up Buyers are able to Sell (2), and cannot "move up" into the homes that the Move Down buyers need to sell. Which, in turn causes even less buyers able to buy the homes that the Move Up Buyers need to sell.

Do you see how when just one type of buyer is removed from the equation, it throws a monkey wrench into the whole series of home selling events?

So, if you are trying to sell your Colorado Springs home, chances are that there IS a buyer for it, but they are trapped (as you are) in trying to sell their Colorado Springs home before they can buy yours.

For more information on selling your Colorado Springs home regardless of the current market, you can give us a call (719) 434-7525 where we can discuss your current situation and all of your options. And also check out these recent articles:

· Selling Your Colorado Springs Home: How to Compete Against Motivated Sellers
· Selling Your Colorado Springs Home: How to Compete Against Desperate Sellers
· Selling Your Colorado Springs Home: How to Compete Against Bank Owned Properties
· Selling Your Colorado Springs Home: The Importance of Proper Pricing from Day One
· Selling Your Colorado Springs Home: The Importance of Multiple Photos

Posted by: Mariana Wagner - Wagner iTeam - Colorado Springs Real Estate Agent
The Wagner iTeam is a power-team of Keller Williams Clients' Choice Realty, specializing in Colorado Springs Real Estate and Monument Real Estate.