Military Real Estate
The number one reason for the high turnover in Colorado Springs real estate is the huge population of active military members that are constantly buying and selling homes. There are several airforce bases and military bases in and around Colorado Springs that lead to service members constantly being deployed, coming home, and then subsequently leaving the city so the need to sell their home fast arises.
In Colorado Springs, single-family home sales grew by nearly 7% in January, outpacing the previous month for the sixth month in a row. In addition, the median home price rose 1% in January, making it the eighth straight month that prices have increased. Overall, the number of homes sold is up about 5% in the past year. And Millennials are driving home sales – they have outsold Baby Boomers in Colorado Springs since 2016.
Home sales have declined for five consecutive months
Colorado Springs home sales have declined for five consecutive months, the longest decline since October 2008. This is a result of rising mortgage rates, which have almost doubled since October last year. This has put homes out of the reach of many potential buyers. This has also contributed to a sharp drop in new home construction. Once sellers enjoyed an edge over buyers, with multiple offers exceeding asking prices, the market has now shifted in favor of buyers.
This trend is expected to continue in the coming months, as rising interest rates continue to weigh heavily on the market. Although the state’s unemployment rate is still below the national average, the local unemployment rate has grown modestly. As of last week, Colorado Springs’ unemployment rate was 5.4 percent, up from 5.1 percent a year ago. At the same time, job growth is slightly higher than last year, at 2.2 percent.
While home sales are on the decline in Colorado Springs, there are positive signs. The Pikes Peak Association of Realtors’ monthly market trends reports tracked sales in El Paso, Teller, and Front Range counties. According to the report, home sales have dropped by at least a third year-over-year for five consecutive months. The October drop was the largest year-over-year drop in nearly 30 years of data.
The number of homes on the market has risen during the summer home-buying season but is still significantly below where it was a year ago. June saw 536,000 new listings hit the market, and the increase was centered on the higher end of the market. This increase in supply didn’t help the mid-price and lower-price ranges, though.
Lack of inventory is a problem
As the housing market in Colorado Springs continues to recover from the 2008 downturn, the inventory of homes for sale is starting to lag. Across all property types, inventory is now less than half of what it was last year. As a result, buyers must be ready to act quickly when a suitable property becomes available.
The lack of available inventory is making it difficult for sellers to attract buyers. Prices are also rising rapidly. This lack of inventory is keeping the number of homes for sale at a record low. This is putting a strain on the local water infrastructure and affordable housing.
With low inventory and limited available homes, the Colorado Springs housing market has reached an extreme level. Sales in January were more than triple what they were in January 2020, and the dollar volume of sales was five times that of the previous year. The market in Colorado Springs is competitive, and buyers must be patient to find a home that meets their criteria.
In addition to limited inventory, lack of demand is another factor that is keeping prices high. A lack of inventory is a major problem for sellers because they may not be able to find a comparable property if their property is sold. In addition, multiple-offer situations are becoming commonplace, which means buyers must make split-second decisions to buy a home. As a result, brokers are scrambling to secure additional inventory.
The real estate market in Colorado Springs is hotter than ever, and millennials are leading the way. This demographic, which comprises around 20 percent of the city’s population, is increasingly choosing walkable communities with public transportation, over large houses in the suburbs. As a result, they’re attracted to well-designed condos in the right areas. However, the shortage of inventory in Colorado Springs keeps prices above inflation. This is also partly due to the lack of negative equity in Colorado Springs, which has exacerbated the housing market.
The growing demand for real estate in millennial-friendly neighborhoods is putting pressure on builders. These young buyers are increasingly working from home, which means that affordability is an issue. As a result, home prices will continue to rise in these markets, as millennials look for more affordable living spaces.
The Millennial population in Colorado Springs is growing at a rapid pace, according to a Brookings Institute study. This is partly due to the low cost of living and year-round outdoor recreation. In addition, Colorado Springs’ homes are designed to meet the needs of millennials, who generally prefer to live in small homes under two thousand square feet.
This means that the housing market will remain hot for a while, though prices and competition will moderate relative to the past year. Nevertheless, experts believe that home prices and rents will continue to climb, at least until the end of 2022. If millennials continue to stay in the market, they can expect home prices and rents to rise steadily through the 2022 time frame.
The Millennial generation is driving the housing market and will continue to do so for years to come. Unlike the boomer generation, the millennial generation is young, independent, and well-educated. They also are confident in their financial skills and will be comfortable with locking in a fixed mortgage for 7-10 years. Furthermore, they’re more likely to make large down payments than the average American home shopper.
While it is true that location is one of the most important factors in real estate, this is not the only consideration. Purchasing a home in a desirable neighborhood in a desirable location is important. Location is also a key factor in determining the market value of your home. Many people choose to buy in areas where they have easy access to public transportation and a walkable neighborhood. Millennials also favor smaller, more practical homes over large, sprawling suburban homes. Colorado Springs’ limited inventory of homes has kept prices well above inflation. The low amount of negative equity in the market has also been a factor in maintaining prices.
Another reason for choosing a home in Colorado Springs is the quality of life. The city has a low unemployment rate – one-third less than the national average. It also has a lower cost of living than many other Front Range cities. In addition, Colorado Springs has a growing population of college graduates and a tight labor market. The city’s economy is fueled by the defense contractors and professional and technical services sectors.
The demand for homes in Colorado Springs is strong and there are more buyers than homes. This creates a seller’s market because there is a lack of inventory. Homeowners can make more money because there are more buyers than available homes. In Colorado Springs, the average home value is $493,525 (as of June 2018), and it has increased by more than 20 percent over the last year. According to Zillow, prices are expected to rise another 12.3% by May 2023.
The real estate market in Colorado Springs is similar to many other hot locations in the US. There is a limited supply of resale homes and new construction homes. This is due to the fact that builders can only build so many homes at one time. As a result, homebuyers are limited in their choices.
While the Colorado Springs real estate market has been experiencing an upswing in recent months, prices are still low compared to their pre-bubble highs. That said, the economy continues to improve. As a result, Colorado Springs continues to see job growth and its unemployment rate is below the national average.
This is primarily due to the high number of older residents in the area, with the median age being several years lower than the national average. The tight labor market is also contributing to the demand in the Colorado Springs real estate market. Many college graduates are choosing to remain in Colorado Springs and raise families, which drives up home prices.
The housing market in Colorado Springs has increased by about 40 percent since 2005. While construction has slowed in Colorado Springs, home prices are still up. In fact, Colorado Springs’ housing market is one of the most active housing markets in the country. The biggest group of people buying homes today is Millennials, and the real estate market in Colorado Springs is full of them.
While Colorado Springs’ real estate market is growing and the economy is strong, the housing shortage is continuing. The low supply of homes for sale in Colorado Springs is pushing up prices. This shortage is the most important factor driving current trends and projections. Despite the shortage, Colorado Springs is a popular choice for people from the Denver area.
Prices are rising for the second year in a row, and the market is a great place to buy a home. This trend is set to continue until the housing inventory grows.