Colorado Springs Among Leading USA Real Estate Markets
The National Association of Realtors listed the Colorado Springs real estate market #12 in the USA. The demand for single-family homes in The Springs is driving prices up and current inventory down. In fact, homes priced under $300,000 are being snatched up in a flash. Economic uncertainty is forcing owners of lower-priced homes to stay put, another factor contributing to the lowest inventory in more than 20 years.
Home sales in El Paso County increased almost 25% year-over-year for the first quarter of 2016, reported Rich Laden in the Colorado Springs Gazette (05/01/16). Median Home Prices south of Colorado Springs in Fountain Valley and in Southeast Colorado Springs went up more than 10% between 2015 and 2016 Q1 and sold two or three times faster than they did in 2015. On the east side, prices went up almost 8% with homes selling more than twice as fast.
Why So Many Homes Are Selling
- Rentals are full and rents are rising
- Interest rates remain low but threaten to rise
- Home prices are going up
- Consumer confidence
- Low unemployment
- Colorado Springs offers a high quality lifestyle
- The population is increasing
New Construction
Most of the new homes being built are in higher price points. Buyers moving from more expensive markets are able to afford the beautiful new homes. Joining them are people moving up, taking advantage of the seller’s market for lower-priced homes.
Does Colorado Springs Need More Affordable Housing?
To complicate matters, the median price for Colorado Springs homes was a hair below $250,000 on May 1, 2016. Marija Vader’s FOCUS article published guidelines on May 27, 2016. “The US Department of Housing and Urban Development considers home prices affordable for families who spend up to 30% on housing, with the remaining 70% on food, clothing and other needs.”
Without substantial a down payment, buyers in the median household income bracket of $54,000 would not qualify for a mortgage on the $250,000 home. Problem is, there are few homes priced under $150,000. So younger people are especially hard-hit in today’s Colorado Springs real estate market. Even rents are high.
Nonetheless, the Colorado Springs Affordability Index has dropped from 193.94 in 2012 to 166.23 at the end of 2015. A rating over 100 is considered affordable by the National Association of Realtors. But maybe not in Colorado Springs where there is such a high demand.
REMAX Colorado Springs Agents
If you are interested in Colorado Springs real estate to fit your personal goals, please contact top real estate agent Ann Heiring with RE/MAX Advantage at (719) 440-1010 or Toll Free at (800) 246-8978.
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