Interest Rate Hike & Colorado Springs Housing Market
Interest Rates Going Up
Today Janet Yellen, head of the Federal Reserve, announced a series of upcoming 0.25 percent rate hikes. As interest rates go up 1 percent, homebuyers will be able to afford less of a house, 11 percent less. So if buyers can qualify for a $300,000 home today, after a 1 percent interest rate hike, these same buyers qualify for a home priced at $267,000.
This news will undoubtedly keep the Pikes Peak Regional Housing Market going strong into 2016 as buyers try to beat the rising costs of mortgages. Eventually, however, those costs may level out or drive down home prices in the Colorado Springs housing market.
2015 Q3 Colorado Springs Home Prices
Fortunately, the Colorado Springs real estate market is healthy. Home prices in the Third Quarter rose 7 percent year over year. This is the largest uptick since the beginning of 2006 and quite a milestone. This information from the Federal Housing Finance Agency was cited by Wayne Heilman in the Colorado Springs Gazette.
Many factors are in play to effect the healthy housing climate in Colorado Springs. Sales of existing homes, home construction, and fewer foreclosures are among them. In the first 10 months of 2015, home construction is up 11.7 percent over the same time period in 2015. The Pikes Peak Association of Realtors reported resale prices going up for 17 of the last 18 months.
Colorado Springs versus other Markets
Other Colorado cities are experiencing robust growth, surpassing that of Colorado Springs’ 7 percent increase. At 13.9 percent, Denver’s market experience the fourth-highest price gain in the nation. Boulder ranked seventh (13.4 percent), Fort Collins ninth (12.9 percent), Greeley tenth (12.7 percent), Pueblo 47th (8.2 percent).
Nationally in Q3, the Colorado Springs housing market ranked 70th among 271 metro areas in the nation.
Colorado Springs Real Estate Agent
If you are interested in relocation or buying or selling a home, please contact Ann Heiring of RE/MAX Advantage, Inc.at (719) 440-1010 or Toll Free at (800) 246-8978. Discover how the Colorado Springs housing market offers a high quality lifestyle for full-time residents and vacation home owners alike.
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