Home prices soar to record highs last month in Colorado Springs

By Rich Laden Updated: April 11, 2018 at 3:44 pm • Published: April 10, 2018 0
photo - Home prices soar to record highs last month in Colorado Springs
(Photo by Rich Laden, The Gazette)
Home prices soar to record highs last month in Colorado Springs (Photo by Rich Laden, The Gazette)

Colorado Springs-area home prices climbed to record highs again last month, as the hot housing market shows few signs of cooling off.

The median price of single-family homes sold in March rose to $300,000, nearly 12 percent higher than the same month last year, a recent report by the Pikes Peak Association of Realtors shows.

March's median - or the midpoint of all sale prices during the month - eclipsed the record of $295,000 set in January. Record highs also were set four times last year.

Last month's average sales price of $340,594 rose 15.1 percent over March 2017, and surpassed January's record of $332,834, according to the association's report.

"It's strong," said Joe Clement, broker-owner of Re/Max Properties in Colorado Springs. "The average price is now up to $340,000, which is amazing to us that we've gone that high."

Another positive sign: increased numbers of sales in higher price ranges.

From Jan. 1 through Sunday, sales of homes priced from $300,000 to $399,000 totaled 895, an increase of 224 over the same period last year, Clement said.

Of homes priced at $400,000 to $500,000, 367 have been sold year to date or 81 more than the same time last year.

And of homes in the $500,000 to $750,000 range, 299 homes have been sold year to date, an increase of a little more than 100 when compared with the same period last year.

As property values have increased, many homeowners have been able to use the increased equity they've built up in their properties to afford the purchase of higher-priced, move-up homes, Clement said.

"That's kind of cool that we're seeing this domino effect upward," he said. "Some of these folks are staying in town and buying up."

Home sales, however, fell last month for one of the few times during the last three years; they totaled 1,231 in March or 1.3 percent lower on a year-over-year basis.

Still, overall home sales remain strong. During the first quarter of this year, sales totaled 3,114 or 5.4 percent more than the same period in 2017. Last year was a record year for sales.

"The demand is still just really strong," Clement said. "Of course, the interest rates (for 30-year, fixed-rate mortgages) have gone up. But they're still, like, at 4.4 (percent) or some number that's very decent. That continues to help. I don't know what the latest unemployment number is, but I think it's in the 3s. If you add all that up, it makes for a pretty busy time right now."

The supply of homes listed for sale remained tight last month.

Listings totaled 1,371 in March, down 5.7 percent on a year-over-year basis. But last month's inventory nevertheless rose from record lows in January and February, Clement said.

The Realtors Association report includes transactions reported by its members; it excludes homes sold by owners. About 90 percent of last month's home sales took place in El Paso County.

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