When it comes to the Colorado real estate market, a lot of the home buying and selling trends link to the U.S. housing market. Four major trends currently shed light on where the housing market is headed in the next few years. Although some people think Colorado is in an isolated bubble, the fact remains that home sellers on the east coast who can't sell their homes as quickly or for as much money have less purchasing power. If fewer people can afford to buy a second home, it dampens the Colorado real estate market. At the same time, there are ways to stay ahead of the housing market trends by landing a home that will appreciate in value or sell a lock in on the gain in equity. In some parts of the country, potential buyers are stepping back from high prices, according to an article by cnn.com. A good real estate professional helps you get on the winning side of a bidding war.

No. 1: A flattening out of new home construction

Experts say builders "went to town" after the Great Recession by building a lot of homes, but that pace is slower now. Even though there are fewer new homes, the rental vacancy rate is still low. When it comes to housing supply, it's a matter of location. Colorado draws buyers who want a resort lifestyle.

No. 2: Higher prices throughout the country

Because of fewer new homes, home prices continue to go up. Not every city in the U.S. has enjoyed a total recovery since the housing decline. Cities such as Detroit still suffer but cities such as San Francisco, Denver and Colorado Springs enjoy substantial home price appreciation.

No. 3 Existing homes sales are down

The National Association of Realtors reports home sales recently fell to the lowest in two years. The trend is for people to relocate less frequently although the exception is retirees and people downsizing in preparation for their retirement years.

No. 4 Foreclosures are increasing again

Just as foreclosures increased during the Housing Crisis, there has been an uptick in foreclosures. Some of the places hit hard include Los Angeles and Houston, which was hit by a hurricane.

Because interest rates are going up, it's critical to jump on the current rates. Although the housing market is far from perfect, most real estate experts say it's normalizing. A return to a "normal" market mean predictable and steady home value appreciation over time. For people who want to buy a home and live there, home provide a stable source of wealth growth.

At Team Lassen, we specialize in the hot Colorado real estate market. Talk to us about listing your Colorado home for sale or finding a home that should weather any fluctuations in home values. For more real estate trends, please contact us.