Some New Colorado Homeowners Are In For a Rude Awakening

We all know that buying a home in Colorado can be tricky. Home and interest rates are skyrocketing, and for first-time buyers, purchasing a home in Colorado seems nearly impossible sometimes.

Congratulations to those of you who have bought a home in the past year in Colorado. That is a huge accomplishment and you should be celebrated.

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We have some bad news though, you may have thrown some money down the toilet.

Colorado Home Values

When prospective homeowners are looking to buy they can't see what is in the future. If a genie was going to grant three wishes, I would ask for a month-to-month housing market analysis for a decade.

Home values are dropping dramatically across nearly every city in Colorado. Colorado Springs, for example, saw the most dramatic home value drop.

A home in Colorado Springs is worth $15,000 less than it was last year.

Point 2 Homes shows that this is happening across the nation, but Colorado was definitely hit hard.

Single-family homeowners in these cities have been losing up to $223 in value every day since they bought their homes last year, while condo owners have been bleeding even more money.

Let's Talk About Condos

Coloradans who live in larger cities are hit the hardest when it comes to property value. This year, the median condo is worth $25,000 less than in 2022.

On one hand, this could provide future homebuyers some optimism if interest rates go down, but those rates are continuing to climb.

So if property value is going down and interest rates continue to skyrocket there isn't one Coloradan that is benefiting from this situation.