LivngColoradoSprings.com: Colorado Springs Real Estate Continues Forward Progress

The Colorado Springs real estate market continues to improve. September home sales were up 15% from last year, and the median price was up 3.6%. This is the 7th consecutive month where prices have risen compared to the prior year. The inventory of unsold homes continues to be very low, down 11.3% and just under a 5 month supply at the September sales rate. September building permits for detached single family homes were up 56.5%, as more buyers choose new construction to compensate for fewer homes on the market.

The percentage of homes disclosed as distressed was 18.1%, or 140 homes. This is an increase from both September of 2011 and from July and August of 2012, but it is too soon to say whether this is a trend. It is down significantly from the peak of 36.8% in January of 2009. Colorado Springs home buyers are continuing to take advantage of low interest rates, which have been consistently in the low to mid 3′s. Low long term mortgage rates and higher rent prices are making the decision to buy rather than rent MUCH more attractive at this time.

The unemployment rate in Colorado Springs this summer hit 9.8%, which is not healthy. It remains to be seen whether this high a level of unemployment will allow the housing market to continue to recover, although there have been some recent employment announcements that may cause this number to drop soon. Summer unemployment in the tourist industry in particular was also affected by the Waldo Canyon fire. This effect should not persist going forward. 

For more details, see the Colorado Springs Homes Sales Trend Data