Market Conditions
....as of 8/5/2013.
Colorado Springs real estate sales continue to be brisk. July home sales were up 23.5% from last year, and the median price (1/2 above, 1/2 below) was up 6.5%. This is the 17th consecutive month where prices have risen compared to the prior year. The average price (mean) rose 8.8%, and the 90th percentile was to $416,000, indicating some strength at the upper end of the market. The July Median price is the second highest monthly median price ever. The inventory of unsold homes continues to be very low, and while the inventory actually rose by 8% over last year, with the rate of sales increasing, we now have only a 3.4 month supply at the July sales rate. July building permits for detached single family homes were up 34.3%, as more buyers choose new construction to compensate for fewer homes on the market.
The percentage of homes disclosed as distressed was 11.3%, or 136 homes.
The percentage of homes disclosed as distressed was 11.3%, or 136 homes.
Colorado Springs home buyers are continuing to take advantage of low interest rates. At the beginning of May, those rates were in the low 3′s, but by month end had risen to the upper 3′s, and by the end of June in low 4′s. It remains to be seen what direction rates will head, and what impact that may have on future sales. Rents continue to be high relative to the price to buy the same home, which further fuels purchase demand, but higher interest rates have the potential to change that some. The other unknown factor is the affect that the Black Forest fire will have on the market. With over 500 homes destroyed, there will be significant pressure on the rental market while those homes are replaced.
The unemployment rate in Colorado Springs for May 2013 was 7.9%, a significant improvement from March, but still well above the state average. Preliminary information from the Bureau of Labor Statistics indicates that June unemployment may have jumped to 9.1%
For more details check out our site at: GailSuttonProperties.com
or Call Gail Sutton at 719-362-9702
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