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What’s Working: Colorado builders stick with rate incentives to attract new-home buyers

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What’s Working: Colorado builders stick with rate incentives to attract new-home buyers



Traffic picked up this year at the Oakwood Homes sales office for Banning Lewis Ranch, where new homes in the northern Colorado Springs neighborhood start in the mid-$300,000s.

But business is nowhere near pre-pandemic levels or even during the pandemic, when home buying was in a frenzy, Lauren Hanshaw, a new-home counselor at the office, said on a quiet weekend morning last month. She’s comparing it with 2023, which she called “my worst year in 10 years.”

“Traffic is a little bit more pointed. You don’t have as many lookie-loos versus people who are in need of a home,” Hanshaw said. “This year, we’re seeing a little bit more of a calmness because people understand that there’s still a demand, a need for homes and that rates are cyclical. They’ll be able to change that status in a couple years if they refinance their home.”

Since mortgage rates have barely budged even with two interest rate cuts by the Federal Reserve since September, Hanshaw’s belief is that shoppers are more educated. They know they won’t walk out the door with a monthly payment of under $1,800 or $2,000 — a very doable feat when rates were below 4% and even 5% at the Banning Lewis Ranch price point. On Thursday, the average mortgage rate for a traditional, fixed-rate 30-year loan was 6.98%, according to Mortgage News Daily, up from 6.62% a month ago and down from 7.41% a year ago.

But builders like Oakwood are doing what they can to get potential buyers in the door with rate-reduction incentives. Nearby Richmond American Homes is touting 3.999% rates (which increases to 5.999% in year three). Baessler Homes, which builds in northern Colorado, has a deal to get payments to “as low as $1,977” in the first year, and is essentially offering up to $20,000 in concessions (housing payments increase after year one to $2,578 in year four, or a 5.99% rate).

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Meanwhile Oakwood, which started the year with some 4.99% offers, now has a 2.99% offer on select houses in Colorado Springs and a 3.99% promo in Denver. The builder is also working with the Colorado Housing and Finance Authority to provide down-payment assistance of up to $25,000, plus below-market rate loans. Most of the incentives, though, are only available to certain buyers and for certain houses.

Oakwood Homes has attracted potential buyers to its new housing developments by offering rate reductions for mortgages. In Oct. 2024, one sign showed off the 5.49% rate for a limited time. At the time, the average 30-year fixed-rate mortgage was closer to 7%. (Tamara Chuang, The Colorado Sun)

It’s been working, especially after the pullback in 2023, said Michael Fraley, Oakwood Homes’ chief growth officer.

“When we rolled into 2024, we really started to do what we call builder forwards that were allowing us to get the rates down,” Fraley said. “As we started to introduce these rates, the 4.99%, and in some instances we got down to 4.25%, that’s when we saw many customers. In fact, our number one selling collection is the Ascent Collection in Colorado Springs. We sell about eight of those a month and that’s been consistent.”

The lowest priced two-bedroom, two-bath homes in the Ascent Collection are duplexes — 1,264 square feet and starting at $334,990. That’s less than El Paso County’s median sales price of $370,000 for a townhouse or condo in September.

Oakwood could probably sell more but is only building eight a month in that community, Fraley said. However, he added, “Had we not been able to find a way to get those below-market rates, I don’t think they would be selling as well.”

Concessions aren’t limited to new-home builders. Sellers and buyers often negotiate on the list price. According to the Colorado Association of Realtors data, sellers were getting very close to what their asking price in September — or 98.6% of what they asked for. That compares to June 2021, when bidding wars were common and sellers received 104.4% of their list price.

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Sold sign at newly constructed house Colorado Springs
The Banning Lewis Ranch community in Colorado Springs on Oct. 12, 2024 includes new houses for sale built by Richmond American Homes. This unit was just sold. (Tamara Chuang, The Colorado Sun)

Of course, now, it’s a different market. According to the Denver Metro Association of Realtors, seller concessions were up in June to 48% of sales, compared to 29.2 percent a year earlier. The average concession was $7,295.

It’s all cyclical, said Hanshaw, who began working in the real estate industry in 2014 as the economy was recovering from the Great Recession.

“When I started in the industry, it was like you could ask for the world — a free basement, free backyard landscaping, free fencing and builders would entertain it to obtain a sale. Then it became a market of, I’m not giving you a refrigerator because the next person that walks in the door will take the deal without a refrigerator,” she said. “Now, I’d say, we’re back into negotiating a little bit heavier to obtain the sale.”

chart visualization

➔ 58% of Denver metro rentals offering an incentives. Free parking, free rent and other concessions for renters are on the rise, according to data from real estate site Zillow. In the Denver metro area, 58% of rental listings in October offered some sort of concession, up from 43.4% last year.

Nationwide, concessions were at a record high with 37.7% of all listings offering some sort of perk, compared with 30% a year earlier. That means landlords are competing for renters, especially after September saw a 50-year high in completed construction projects aimed at renters. Denver metro saw the third-highest jump in share of listings with a concession. >> Details


Joe Klopotic, a senior mechanical engineer at Sierra Space, and program manager John Wetzel stand next to the Trash Compaction and Processing System, which compresses trash to one-quarter of its volume and creates 11-inch square “tiles” that are odor free and can be used as radiation protection. TCPS is expected to board the International Space Station in 2026. (Provided by Sierra Space)

➔ How to reduce trash — in outer space? A Colorado company is working on its own WALL-E-like trash compactor for future space habitats. >> Read story

➔ Clean-car sales jump 10% as Coloradans lean on state, federal and utility rebates. EVs, plug-in hybrids, and hybrids made up 38% of vehicle registrations in third quarter of 2024 >> Read story

➔ Denver Health was losing almost 90% of its nitrous oxide to leaks. So it cut the gas. The hospital is switching from centrally piped nitrous oxide — also known as laughing gas — to portable tanks to reduce greenhouse gas emissions >> Read story

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➔ Health care prices for Colorado public sector retirees see huge increase for 2025. Two Medicare Advantage plans offered by Colorado PERA are seeing big jumps — 130% for one and more than 200% for the other >> Read story

Election 2024 stories:

View all of our Election 2024 coverage

If you missed the reader poll last week, there’s still time! The spike in homeowners insurance costs may have wiped out any savings of a low-interest mortgage. Feeling it? Take the reader poll to help us better understand what’s going on in Colorado cosun.co/WWinsurance


Cell phone and rural broadband towers
Cell phone and rural broadband towers in Alamosa County, Colorado with the Sangre de Cristos in distance on Jan. 22, 2021. (John McEvoy Special to The Colorado Sun)

➔ 185 applications for Colorado’s broadband program. And they’re asking for $1.78 billion, which is more than double what the state received in funding for the Broadband Equity, Access and Deployment program. U.S. lawmakers approved the federal program after realizing in the pandemic that some places in America have mediocre or nonexistent internet service.

Colorado received $826.5 million in BEAD funding and opened its program to applicants earlier this year. If all projects were approved, that would help 111,896 homes, schools, businesses and community organizations, according to the Colorado Broadband Office, which is overseeing the grants. More than half of those locations — approximately 67,559 — are considered unserved with no broadband internet service. The Broadband Office plans to review every application in the coming weeks, which will take up to 160 days. >> Details

➔ Send a question to the EEOC. Any question is allowed, according to the U.S. Equal Employment Opportunity Commission, which is hosting the annual end-of-the year webinar Nov. 12 at noon. Will the questions be answered? That’s unknown. But questions need to be asked during pre-registration for the 90-minute session. >> Register

Got some economic news or business bits Coloradans should know? Tell us: cosun.co/heyww


Thanks for sticking with me for this week’s report. Remember to check out The Sun’s daily coverage online. As always, share your 2 cents on how the economy is keeping you down or helping you up at cosun.co/heyww. ~ tamara

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Miss a column? Catch up:


What’s Working is a Colorado Sun column about surviving in today’s economy. Email tamara@coloradosun.com with stories, tips or questions. Read the archive, ask a question at cosun.co/heyww and don’t miss the next one by signing up at coloradosun.com/getww.

Support this free newsletter and become a Colorado Sun member: coloradosun.com/join

Notice something wrong? The Colorado Sun has an ethical responsibility to fix all factual errors. Request a correction by emailing corrections@coloradosun.com.

Type of Story: News

Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.

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College Football Mailbag: SEC’s Two-Loss Chaos Looms Ahead Of New CFP Rankings; Colorado, Indiana Eye Spots

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College Football Mailbag: SEC’s Two-Loss Chaos Looms Ahead Of New CFP Rankings; Colorado, Indiana Eye Spots


Alright, another weekend of college football has passed, and we certainly have more questions than answers right now regarding the playoffs. 

After a few upsets this past Saturday, with Georgia Tech throttling Miami, and Ole Miss beating Georgia , we are headed towards a chaotic few weeks of playoff rankings. 

As for the rest of college football, conference standings continue to be a hot topic. The Big 12 has gone crazy, the ACC is in the hands of SMU, while the SEC looks like a traffic jam at the top. Who knows what happens down the stretch with the Big Ten, but I don’t expect Oregon to lose a regular season game, so it comes down to who they will play in the conference title game. 

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Let’s get to your questions, as I chose a few that stood out this week.

Are we headed towards total chaos in the SEC with all these teams potentially finishing with 2 losses? Thanks man.

—Anthony, Atlanta

Well, Anthony, I think the log-jam at the top of the SEC is fascinating, and this is what happens when you don’t play a nine-game conference schedule. But, here we are, and there are a number of teams fighting for a postseason berth. Again, I’m not just talking about the conference title game, I’m looking at the college football playoff. As it currently stands, Tennessee, Texas A&M and Texas sit atop the SEC standings with just one conference loss. But I don’t know how long that will stand, especially with the Vols traveling to Georgia this weekend.

Think about it this way. Georgia, Alabama, Ole Miss, LSU and Missouri all have two losses right now, and the tiebreaker scenario will be fascinating to watch unfold. If Tennessee goes to Athens and beats the Bulldogs, then the conversation shifts, dramatically. The same can be said for the Aggies, if they were to win out, which includes a game against Texas. 

I think the bigger decision comes down to the playoff committee, and how many SEC teams they decide to put into the postseason. But yes, we could be headed towards a chaotic ending, and I’m all for the madness that’s ensuing. 

Is Mike Norvel firing his assistant coaches actually going to solve the problem for my Seminoles? 

—Thomas, Pensacola, Fla.

I mean, Norvell fired his OC, DC and WR coach because he needed a new lease of life in Tallahassee. This team took a massive step back this season, getting destroyed by Notre Dame on Saturday, and currently sitting at 1-9 on the year. I’ll be honest, Florida State is going to have to rearrange things inside the football offices, and I’m not just talking about the coaching staff. 

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After all the momentum from last season, and the controversy regarding the playoffs, FSU did nothing to build off 2023, and it’s come back to bite them in a bad way. This team needs a quarterback, and to find that spark along the defensive line again. But right now, the future looks bleak, and Mike Norvell certainly made some changes so that it would give him a new lease on life at Florida State.

The Seminoles have a massive rebuild on their hands. So, I’d practice some meditation.  

Appreciate your honesty about Colorado, especially after the Nebraska loss. So, do you think we can actually make the playoffs? 

—Mike, Broomfield, Colo.

I’ll be the first one to admit that I did not see this coming after the Nebraska loss, Mike. I thought this team lacked weapons that would be needed to put an opponent away. Boy, was I wrong, and I’m really enjoying what Deion Sanders has done with this football team. Luckily for Colorado, the Big 12 has decided to go full-blown crazy, thanks to losses by Iowa State and Kansas State. 

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Now, all Colorado needs to do is win its remaining regular season games, which is certainly possible. If they do, the Buffaloes will be playing in the Big 12 title game, with a chance at securing a spot in the College Football Playoff. So, to answer your question, I absolutely believe this team can make the postseason, but they need to stop playing from behind at times. 

Also, Travis Hunter is going to New York City for the Heisman Trophy ceremony, and I think he deserves the award at this moment. 

Can Indiana afford a loss to Ohio State in two weeks, and still make the playoff? I’m a little concerned about strength of our schedule. 

—Adam, Indiana

Yea, I’ve thought about this a lot over the last few weeks. The Hoosiers have certainly beaten up on their opponents during this 10-0 run, but I do wonder how the committee will look at them towards the end of the season. Right now, they are ranked 8th in the standings, beating a bad Michigan team 20-15 this past Saturday. 

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If they lose to Ohio State by a touchdown, or 10 points, then I can see the committee keeping them in the Top-12. But, if they were to let this one get away, I don’t know how the voters will react to Indiana’s schedule. Let’s be honest, their biggest win is I guess Washington, maybe Michigan. This team has the ability to beat Ohio State, and I think there’s a good shot they leave Columbus with the win. 

But that schedule isn’t that helpful if the committee is looking at that part down the stretch. Either way, the Big Ten race is wild, and there are a number of scenarios where I see the Hoosiers playing in the postseason, including a potential win next week. 

Thanks to everyone for the questions, and you can continue reaching out to me at Trey.Wallace@OutKick.com and I’ll get back to you. Enjoy the week, with another Saturday of college football approaching. 





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5 short trails for shorter days in Colorado Springs

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5 short trails for shorter days in Colorado Springs


It’s that time of year when the days are shorter and our time outside is seemingly all the more precious. To beat the sun setting over the Front Range, we must look to shorter trails.

Trails such as these — easy to reach and offering variety in different parts of Colorado Springs:

Mesa Trail, Palmer Park

Popular among dog walkers, this is the wide path looping the top of the rocky wilds east of the city’s core. From the Yucca Flats parking lot, Mesa Trail roams above the rock, touring meadows with clear views of the mountains and plains. With more time, one ventures off for Templeton Trail. ~2 miles

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South Blodgett Loop, Blodgett Open Space

The well-marked South Blodgett Loop starts from the parking lot about a mile south of the open space’s main lot, at 3786 W. Woodmen Road. At last visit, we started uphill on the wide path to views of the open space’s namesake peak. The route descends on a single-track trail through hilly woods, looking out to the city lights that start to twinkle around dusk. ~2 miles

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Pulpit Rock Trail

The white, throne-like promontory just east of Interstate 25 has gotten more accessible in recent years. That’s thanks to a well-defined trail that gently rises along its flanks to the summit, where Pikes Peak looms large. The small parking lot is off North Nevada Avenue, behind the BMW dealership. ~2 miles out and back

Scotsman Loop, Garden of the Gods

Here’s a quick way to admire the signature beauty of the Garden on dirt rather than the sidewalk in the center of the park. From the Scotsman Picnic Area — the parking lot numbered 13 along the park road — the trail rises to views of the Gateway rocks and Pikes Peak. ~1 mile

Quail Lake

It’s best enjoyed before the lake freezes, when the water reflects Cheyenne Mountain and the foothills looming over the city’s south side. The sunsets are splendid. A combination of dirt and pavement loops around the lake. ~1 mile

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Trump expected to move Space Command headquarters out of Colorado in his ‘first week’ – Washington Examiner

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Trump expected to move Space Command headquarters out of Colorado in his ‘first week’ – Washington Examiner


President-elect Donald Trump isn’t expected to waste any time going through with the plan to move Space Command headquarters out of Colorado to Alabama.

Space Command, separate from the Trump-created Space Force, has been the center of a yearslong controversy about whether to put its headquarters in Colorado or Alabama. Trump has favored the deep-red Alabama, while Biden favored the deep-blue Colorado. Rep. Mike Rogers (R-AL) told Mobile radio FM Talk 106.5 that Trump would settle the dispute as one of his first moves in office.

“President Trump said in the campaign that he was going to reverse that decision if elected,” he said, referring to Biden’s decision to move the headquarters to Colorado. “But I knew he would because if you remember, not only did Alabama win two nationwide competitions, but President Trump’s secretary of the Air Force recommended Huntsville, President Biden’s secretary of the Air Force recommended Huntsville, and then Biden took it away for political reasons.”

“But it’s going to be a big point now because President Trump’s already announced it, and I think you’ll see in the first week that he’s in office, he’ll sign an executive order reversing Biden’s directive,” he continued. “And we will start construction next year in Huntsville.”

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The office of Rep.-elect Jeff Crank (R-CO) expressed its opposition to the prospect.

“He’s definitely against the move,” a spokesman for Crank told the Washington Examiner.

Speaking with Al.com, Crank pledged to “resist any attempt” to move the headquarters to Alabama. He also issued some rare criticism of the president-elect by an elected Republican.

“With Donald Trump, you never know,” he said. “He changes his positions and his stance on issues by the day, and sometimes by the hour. If he wants to build out the Space Force and Space Command and have it meet the national security moment and our threats, then he will keep it here.”

Another Colorado Republican, Rep. Doug Lamborn (R-CO) also defended keeping the base in Colorado.

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“Today’s USSPACECOM [full operational capability] announcement is the pinnacle of more than four years of hard work by General Raymond, General Dickinson, and our Guardians,” he said in a statement last year. “This achievement continues to show that Colorado Springs is the right location for USSPACECOM for our nation’s readiness. I am confident our Guardians will do what is necessary to maintain the highest levels of readiness to counter our adversaries’ malign ambitions in space. Our nation and its Allies are counting on it.”

The Biden administration always defended its move to keep the headquarters in Colorado Springs as a purely national security-focused move, without any political considerations. Its main argument was the perceived threat to readiness.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

A senior White House official told the Colorado Springs Gazette last year that Biden primarily considered the “impact a move would have to operational readiness to confront space-enabled threats during a critical time in this dynamic security environment. U.S. Space Command headquarters will achieve ‘full operational capability’ at Colorado Springs later this month. Maintaining the headquarters there maintains operational readiness and ensures no disruption to its mission or to its personnel.”

A senior administration official told the Washington Examiner at the time of Biden’s decision that a new site in Alabama would not open until “the early to mid-2030s.”

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