Local economist Dave Bamberger said the Colorado housing market never experienced the 25-percent inflation that occurred over the last few years on the east and west coasts, which meant there was never a housing bubble. However, Falcon’s new home permits in the 80831 ZIP code area numbered 887 in 2005, while 413 new home permits have been issued in 2006.”New home permits are issued throughout the year, but most are pulled in March, April and May because of winter weather constraints in the construction industry,” Bamberger said.He said decreases in new home building are a “back to reality adjustment in the market, caused by higher mortgage rates.””We borrowed new homebuyers from the future,” he added. Interest rates are higher, and sales have slowed, but unlike the depressed housing market experienced during the late 1980s and early 1990s, Bamberger said there is not a “glut” of new homes on the market. “Builders adjusted to the slowdown, as it occurred,” he said.Mark Wittrup, real estate broker for Rawhide, agreed. “There are more houses on the market than six months ago,” he said, adding that the area is still growing because more new companies are choosing to relocate to Colorado Springs.Wittrup said housing on one to one-half acre lots, such as Filing 1 in Woodmen Hills, are snapped up quickly, while there is less of a market for the smaller lot homes near Safeway. He said he believes people moving to Falcon still want a yard, along with the advantage of nearby commercial amenities.”There has been a slowdown at Falcon Highlands,” said developer Ray O’Sullivan. He said higher interest rates and high-priced homes have contributed. “Some of the John Laing models were priced a little higher than the average customer’s comfort zone,” O’Sullivan said. But his project, Falcon Highlands, is adding about 40 lots each quarter; however, less expensive models are now being offered as well.”People move to Falcon to purchase quality, lower-density homes,” Bamberger said. Homes priced in the $400,000 range in Meridian Ranch have good sized lots with the added advantage of a golf course, which is difficult to find in other parts of the county, he said.Wittrup said he expects the increased military presence to have a ripple effect throughout the housing market in a few years. “Growth in the Fountain area is phenomenal, and that is a convenient location for a lot of military families,” he said. “But when Woodmen Hills was first being developed, everyone expected it to attract the already established age 40-plus homebuyers. We were all shocked at the number of young families that found Falcon an attractive place to live.” He said he predicts that trend to continue as the military population increases.Meanwhile, plans for new subdivisions in the region show no signs of a slowdown. On Aug. 15, the county planning commissioners approved the final plat for 553 new homes in the Paint Brush Hills subdivision. Classic Homes is the builder. Plans are also under way for a 995-lot subdivision called High Plains Ranch, which is six miles east of Falcon in the vicinity of Falcon and Peyton highways. And O’Sullivan said he expects construction to begin shortly on 158 parcels in the Santa Fe Springs development.
