Is Colorado Springs a good place to buy a home?

The three things you need before you buy

Whether Colorado Springs is a good place to buy depends less on the city and more on your situation. I look for three things:

1. A stable job. Your income needs to support the payment through the ups and downs.
2. An emergency fund. Things will go wrong with a home. Water heaters fail, roofs take hail, and you want cash ready for it.
3. A willingness to hold the home for at least five years. Buying and selling both cost money. Holding longer gives the home time to cover those costs and build equity, especially in a market where prices aren't rising quickly.

If you're missing one of these, it doesn't mean never. It may mean not yet, or it may mean buying with a clear backup plan.

How to read the market before you buy

The market changes from month to month, so instead of a snapshot, here are the measures worth checking before you buy: how long homes are taking to sell, whether the number of listings is growing faster than sales, how prices compare with a year earlier, and how common seller concessions are. When homes sit longer, listings grow, and concessions become common, buyers generally have more choice and negotiating room. When those reverse, the market tightens. How to tell whether it's a buyer's or seller's market walks through each measure, and my monthly market update sends you the current numbers.

The military buyer's dilemma

My five-year guideline creates a real problem for military families, because PCS cycles typically run two to five years. There's a risk period in there.

If you expect to be here only about three years, in the current market I generally don't recommend buying, unless you're willing to keep the home and rent it out when you leave. In my experience, the large government and military presence here keeps rental demand steady, which is what can make that plan work.

Kristen and I rented out our homes throughout our military career. That was on purpose and by design, because those homes were part of our financial portfolio. But it only works if you're prepared.

My recommendation: have around $15,000 set aside in case you PCS early and need to rent the home out. Without it, you're probably not positioning yourself for success. As a landlord, it's wise to be ready for when something happens, not if.

(For more, see Should I sell or rent my Colorado Springs home when I PCS?)

Where I see opportunity in a slower market

When prices are flat, it can feel discouraging, but it also creates openings:

• VA loan assumptions. Some Colorado Springs homes have VA loans at interest rates well below current rates. If you qualify and have enough time, assuming a seller's loan can significantly lower your payment. (See Can I assume someone's VA loan in Colorado Springs?)
• Buying well up front. In a market with more inventory and more negotiating room, buying at the right price and terms positions you for the next upturn.
• Building a nest egg. Military families move every few years and don't have a single place they live. A home here, kept as a rental when you leave, can become a long-term asset.

There's also pride of ownership, which is worth something too.

Calculated risk, not no risk

We're in a period of flat price growth. But if you never take any risk, you'll be in the same place tomorrow as you are today. The goal is calculated, mitigated risk: know your numbers, keep reserves, and have a plan for what happens if your circumstances change.

That's also why I start with your life and financial goals before we look at homes. The right answer depends on what you're trying to accomplish, not just on what the market is doing.

Is buying right for you now?

• Buying likely makes sense if you have stable income, an emergency fund after closing, and expect to stay five years or more, or you're ready to become a landlord if you move.
• Renting may make more sense if you expect to leave within a few years and don't want to rent the home out, your savings would be drained by closing, or your income isn't stable yet.
• Get more information first if you're unsure how long you'll stay, or haven't compared the full monthly cost of owning (taxes, metro district, HOA, and insurance) with renting.

What could change the answer

• How long you'll stay. Buying makes most sense if you can keep the home about five years, or rent it out if you move sooner.
• Your job and emergency fund. Without stable income and a cushion, buying adds risk regardless of the market.
• Market conditions. A slower or tighter market changes your negotiating room and timeline, not whether you're ready to buy.
• The specific home and area. Price, taxes, HOA dues, and insurance determine whether a particular purchase makes sense.

When to talk with a professional

A lender can show you what different loan options and down payments do to your payment. If you're considering keeping the home as a rental, talk with a CPA about the tax side and a property manager about realistic rents and costs. I'm a real estate professional, not a tax or financial advisor, but I help clients coordinate these conversations so the decision fits their bigger plan.