Colorado Springs and the Pikes Peak Region Real Estate Market Update
What’s happening in the Colorado Springs real estate market? Let’s take a look…
Improving Local Market Trends
Our local market is improving! Housing inventories are shrinking, prices are stabilizing, and the foreclosure problem is slowing significantly. In Colorado Springs as of December 2011 foreclosures are down 25% year-to-date-compared to last year. Unlike most of the nation, the number of residential units sold this year in Colorado Springs is up more than 3% over last year. The glut of bank owned properties that has been bringing prices down has dramatically reduced in Colorado Springs this year. Meanwhile interest rates remain at historic lows.
Colorado Springs residential inventory levels are down 9.5% and the number of residential sales up 3.5% year-to-date over last year. The number of foreclosures also continues in a steady 25% decline compared to 2010. These are all positive trends for home sellers! Average prices are still down compared to 2010 , but last year there was a homebuyer credit in place raising demand and thus price. The market is steadily improving in the Pikes Peak region, and the rental market remains incredibly strong for those interested in acquiring an investment property!
Inventory is Dropping
Inventory levels help us measure the supply side of the supply and demand equation. When the housing inventory drops, if demand remains steady or increases, then price increases will follow. This is one step in a market recovery. Pikes Peak region inventory is now the lowest since May 2006!
Fewer Active Listings
Additionally, the number of active listings in the Pikes Peak region is also on the decline. So much so that we are now nearly in line with historic averages. As opposed to the over 6 months of inventory logged November 2007-November 2008, we are now back to a historic average of 4 months of inventory. Prices are stabilizing, and homes are selling faster.
Inventories of homes priced between $140,000- $250,000 continue dropping steadily in Colorado Springs, but there remains an abundant sales inventory of homes for over $250,000. It remains a buyers’ market in the upper price ranges.
Mortgage Interest Rates at Historic Lows
Finally, interest rates have dropped again this quarter to even lower historic lows, bringing in buyers and allowing more potential buyers to qualify for a mortgage.
Will you find the right buyer for your home? If you need to sell and move up to a bigger home, low interest rates increase the chance of finding a qualified buyer for your current home.
Now is a great time to buy! You can still get a lot of house for your money in this recovery and lock in the lowest interest rates ever. Let me help you find the right short sale, REO, foreclosure, or standard-sale home to meet your needs.