The local market is heading for a “three-peat” – a 3rd straight year of record home sales. Colorado Springs is the hottest market in the Rockies for home sellers, investors, home buyers, and landlords. It might be surprising to some that home sales are much stronger here than Denver, Boulder or Fort Collins, but the region has had 29 consecutive months of sales increases, compared to the metro area, where home sales for 2016 were flat compared to the year before. View or download: Pikes Peak Housing Report, Denver Market Update.
In a January 20, 2016 presentation to real estate professionals, UCCS economist Dr. Tatiana Bailey listed 4 key reasons that southern Colorado is outperforming the rest of the state.
Topping the list is strong and diverse job growth. El Paso County gained over 7,800 jobs last year, with a big jump in high-paying industries like health care and high tech. Bailey says another big reason is our proximity to Denver. As a close neighbor with home prices averaging over 40% less than Denver’s, the Springs is attracting commuters who are willing to drive an hour or more to work. And,our lower cost of living is a competitive advantage that will continue to lure new residents. Finally, the majority of our population is under age 40. This leads to more growth, as young adults start families and purchase homes. Those who can’t afford to buy a home,or prefer to rent,are experiencing a tighter rental market than Denver’s. Despite strong apartment building activity, Bailey says local vacancy rates rates have dropped to 3.8%, while Denver’s have climbed to 5%. The shortage led to a 9% jump in area rents last year, bringing a surge of out of state investors to Colorado Springs.
Bailey thinks our local economy will continue to improve. We do, too. As we head into February, mortgage interest rates are still incredibly low. Our agents are working with motivated buyers ready to contract now to take advantage of current prices. And many homeowners are finding they have enough equity to sell, even if they bought recently. Check out our Facebook page and Twitter feed in the coming months for tips on getting your home ready for sale in 2017.
