Overview: The Colorado Springs Housing Market The Colorado Springs housing market has recently experienced a notable shift. Residential and commercial property prices have fallen to their lowest point in nearly 1½ years, according to recent data. This article will provide an in-depth analysis of the current housing market trends in Colorado Springs, the factors contributing to the decrease in property prices, and the potential impact on both buyers and sellers in the region. Factors Contributing to the Decline in Property Prices Economic Factors and Rising Interest Rates As of Thursday, March 2, 2023, current interest rates in Colorado are 7.19% for a 30-year fixed mortgage and 6.43% for a 15-year fixed mortgage. The increase in interest rates over the past year has made it more difficult for potential buyers to secure loans, contributing to the decrease in demand for properties in the area. Increased Housing Supply Another contributing factor to the falling property prices is the increased housing supply in Colorado Springs. With the recent construction boom, many new residential and commercial properties have become available, resulting in a surplus of available properties and a decrease in demand. Impact on Buyers and Sellers Opportunities for Buyers The decline in property prices presents an excellent opportunity for buyers looking to invest in the Colorado Springs housing market. With lower prices and a surplus of available properties, now is an ideal time for buyers to find their dream home or expand their investment portfolio. Challenges for Sellers On the other hand, sellers in the Colorado Springs housing market are facing challenges as they try to get the best possible price for their properties. With the increase in supply and decrease in demand, sellers may have to adjust their expectations and consider lowering their asking prices to attract potential buyers. Future Outlook for the Colorado Springs Housing Market While the current decline in property prices may seem concerning, there are signs that the Colorado Springs housing market may stabilize in the coming months. Factors such as population growth, job opportunities, and investment in infrastructure are expected to contribute to the stabilization of the market. It is crucial for both buyers and sellers to stay informed about the latest market trends and be prepared to adapt to the changing landscape of the Colorado Springs housing market. In conclusion, the Colorado Springs housing market is currently experiencing a decline in property prices, reaching a 1½-year low. This situation presents unique opportunities for buyers and challenges for sellers. However, the future outlook remains cautiously optimistic, with market stabilization expected as the region continues to grow and develop. Staying informed about market trends and adapting to the changing landscape will be essential for your success!  

Greetings from You 1st Realty – Unity, Colorado’s premier real estate company! Today we’re going to discuss your options for deducting property taxes for this coming tax season. Maybe you’re thinking about buying a house or you just want to get your finances straightened up and keep YOUR money in your pocket, either way, this is the perfect read for you. Understanding Property Taxes and Your Tax Return Property taxes are a significant expense for homeowners in the United States. As a taxpayer, it's essential to know how to claim property taxes on your tax return to maximize your potential deductions and reduce your overall tax liability. This comprehensive guide covers everything you need to know about claiming property taxes on your tax return, including the State and Local Tax (SALT) deduction, itemized vs. standard deductions, and how to calculate the property tax deduction limit. The Significance of the SALT Deduction The State and Local Tax (SALT) deduction is a crucial component when claiming property taxes on your tax return. This deduction allows taxpayers to reduce their taxable income by deducting eligible state and local taxes, including property taxes, income taxes, and sales taxes. It's important to note that the SALT deduction has a cap of $10,000 ($5,000 if married filing separately) due to the Tax Cuts and Jobs Act (TCJA) of 2017. This cap remains in effect through the 2025 tax year, unless Congress takes action to change it. Deducting Property Taxes: Itemized Deductions vs. Standard Deduction When claiming property taxes on your tax return, you must choose between taking the standard deduction or itemizing your deductions. You should choose the option that provides the highest overall tax benefit. Standard Deduction: This deduction is a fixed amount that reduces your taxable income, based on your filing status. The standard deduction amounts are adjusted annually for inflation. Itemized Deductions: This method allows you to list and deduct specific expenses from your taxable income, including property taxes, mortgage interest, charitable donations, and medical expenses. To determine the best option, calculate your total itemized deductions and compare that to the standard deduction amount for your filing status. If your itemized deductions exceed the standard deduction, it's generally more beneficial to itemize. How to Claim Property Taxes on Schedule A To claim property taxes as an itemized deduction, you'll need to complete Schedule A, Itemized Deductions, and attach it to your Form 1040 or 1040-SR. Here are the steps to claim property taxes on Schedule A: Collect your property tax records for the tax year. Enter the total amount of property taxes paid on Line 5b of Schedule A. Complete the remaining sections of Schedule A, as applicable. Add up the total itemized deductions and enter the amount on Line 17 of Schedule A. Transfer the total itemized deductions amount to Line 12 of your Form 1040 or 1040-SR, replacing the standard deduction amount. By following these steps, you can accurately report your property taxes and other itemized deductions on your tax return. Calculating the Property Tax Deduction Limit As mentioned earlier, the SALT deduction is capped at $10,000 ($5,000 if married filing separately) per tax year. This limit includes property taxes, state and local income taxes, and sales taxes. To calculate the property tax deduction limit, consider the following example: Property taxes paid during the tax year: $8,000 State income taxes paid during the tax year: $4,000 Total SALT deduction: $12,000 Since the total SALT deduction exceeds the $10,000 cap, you would only be able to claim a maximum of $10,000 as your SALT deduction. If married filing separately, the limit would be $5,000. Additional Considerations When Claiming Property Taxes Keep these additional points in mind when claiming property taxes on your tax return: Only Real Estate Property Taxes Are Deductible: Personal property taxes, such as those on cars or boats, are not deductible. Taxes Must Be Paid and Assessed: You can only deduct property taxes that have been both paid and assessed during the tax year. Prepaying future years' taxes or claiming delinquent taxes from prior years is not allowed. No Double-Dipping: Ensure you don't claim the same property tax payment as both an itemized deduction and a business expense if you use your property for business purposes. Foreign Property Taxes: The SALT deduction does not apply to foreign property taxes. You cannot claim property taxes paid on a foreign property on your U.S. tax return. By understanding the nuances of claiming property taxes on your tax return, you can make informed decisions that maximize your deductions and minimize your tax liability. Always consult with a tax professional for personalized advice tailored to your unique financial situation.

  The housing market in Denver, Colorado is currently experiencing strong growth and demand. According to recent data, the average home price in Denver has increased by nearly 10% over the past year, and the number of homes sold has also increased.   One factor contributing to the strong demand for housing in Denver is the city's strong economy. Denver has a diverse economy with industries ranging from technology and healthcare to tourism and outdoor recreation. This has led to job growth and population growth, which in turn has increased demand for housing.   Another factor driving demand for housing in Denver is the city's attractive lifestyle. Denver has a thriving arts and culture scene, as well as easy access to outdoor recreation opportunities in the nearby Rocky Mountains. This has made the city a popular destination for young professionals and families looking for a high quality of life.   Overall, the housing market in Denver is currently strong, with high demand and increasing home prices. This is good news for homeowners in the area, as it indicates that their homes are likely to retain or increase in value. If you are considering purchasing a home in Denver, now may be a good time to do so.