People from around the country are flocking to Colorado thanks to the beautiful scenery, ample recreation opportunities, and a great job market. However, before you buy, be warned that there are risks associated with purchasing a home in the Centennial State. From crazy weather to recent population trends, here are a few things to be aware of before you sign on the dotted line.
1. Extreme growth may not last
Colorado’s housing market has been booming as of late, but some signs indicate that it might be slowing. If you’re planning on buying, be aware that there might be a bubble, and that it might be soon to burst. If it does, you might be losing a bit of home value. Couple that with how expensive the Colorado housing market is at the moment and you could be opening yourself up to quite a bit of risk.
2. Wildfire Risks
If you’re planning on living somewhere in Colorado that’s wooded, keep in mind that wildfires will most likely be a major risk to your home. Due to Colorado’s dry climate and ample fuel sources, fire seems to be able to spark up just about anywhere around the state at the drop of a dime. It’s also worth mentioning that you should be aware of a mudslide risk associated with fires. While you might not be in the burn zone, a location at the base of a hill might put you in danger of mudslides following a burn.
3. Hail Risks
As was recently seen in Colorado Springs, hail storms can pop-up in a matter of minutes, causing thousands of dollars of damage to property. While hail tends to be covered on most Colorado home insurance, be aware of recent history of hail where you’re thinking about making a purchase. Colorado’s varied terrain can make some spots far more dangerous than others.
4. Flood Risks
Many parts of Colorado face flash flooding instances on a regular basis, often the result of burn scars from wildfires. Be aware of the flood risk where you’re looking to buy and play it safe when possible. If a flood has rolled through an area once, there’s a good chance it will do so again. Take Manitou Springs for example.
5. Changing Times Mean Changing Hoods
Because Colorado is growing so quickly, neighborhoods seem to be changing for better or worse overnight. If the home you’re buying in changes for the better, great for you, but be aware that things might go the other way. For example, a given neighborhood may have a track record of being run down, but new investment might make it better than before in years soon to come. That can go both ways and until Colorado’s growth stabilizes, it will likely remain a bit unpredictable.