The Colorado Real Estate Market… It’s Not Hot– It’s Boiling!!!!
A boiling hot real estate market in Colorado Springs and across the country is driving the demand and prices of houses upward. Eight States and 15 metro areas hit new price peaks this year! (DS News) Colorado Springs is one of the top markets to watch in 2017. (See WP Blog. http://coloradorealestateblogger.com/its-not-just-hot-its-boiling/)
- In Colorado, home sales in the month of April were up 3.2% over a year ago. During the first 4 months of 2017, home sales were up 2.5%.
- Median and average prices of homes in the area are up 11% and 13.5% respectively.
- The supply of homes for sale is about 1/3 of what it was during the height of the great recession. Inventory is down 25% on a year over year basis.
- Houses in Colorado are going under contract to sell in an average of 28 days as compared to 87 days a year ago.
(Source: Colorado Springs Gazette Business Section 5/3/17)
Why has the heat turned up in the housing market? There are several contributing factors.
- Millennials are entering the market as first time home buyers. They are targeting the already competitive lower to median priced houses.
- Low-interest rates and an unemployment rate below 2.5% state-wide adds a lot of stability for homebuyers looking to take on a mortgage.
- Another factor driving the boiling hot Colorado real estate market is the hot rental market in the region. Houses are renting for between $1000 – $2000 per month. In a lot of cases, owning is more economical than renting.
When will the real estate market change? It’s anyone’s guess. Right now prices are climbing and demand is outpacing supply. Get ready for a boiling hot summer in the Colorado real estate market.