In a talk with Deborah Eliot Schultz, Bill McAfee, the owner of Empire Title, was quite upbeat about the current real estate market in the City of Colorado Springs. He quoted numbers from 2015 sales that showed that the market is growing and growing well. He predicted that the real estate numbers will be even more spectacular as we approach the summer of 2016, and that surely is a reason to rejoice.
Newer developments like direct flight to Las Vegas from the local airport, the response that the improvements in the condition of the roads in the city have generated, the new hospital that’s coming up and the confidence that the local populace has shown in the new mayor are all indicators that the city can look forward to better times and more business being generated. With more jobs in the city of Denver, more people are moving to the city for work and they are looking at CS as a residential option, given that CS offers fantastic options for a terrific family life.
Some of the real estate numbers from 2015 that Bill mentioned are as follows:
- The average price of a home in the city of CS was up about 7.4% and the median price was up about 8.2%. This is great because in the last 15-20 years, the average price had risen by only 2-3%, so this increase is nothing short of extraordinary.
- The buoyant state of the real estate market can be gauged from the fact that though the houses on sale have come down by 21% in 2015, the number of residential units sold have gone up by 18.3%. These figures speak eloquently about the current trends in the market.
- The builders are building at a frenetic pace, yet the supply of homes is not able to keep up with the demand. There is of course, a great opportunity for the builders too, because CS was not overbuilt earlier. The best part is that the resellers market is phenomenal and local builders are carrying out most of the business.
- CS real estate is now at the highest point of running average ever, when it comes to the figures for homes. The average price for a home in 2015 was $267,050 whereas the average over the last few years has only been $232,000. This summer the average price could go up to $275,000!
- To get some perspective of the exploding market, there were only 2133 homes for sale in December while the average is about 2800-2900 (the figure had risen to 7000 in 2007), showing that demand was robust in December.
- There are hardly any distressed properties out there; the foreclosure market is down a healthy 20%, which signifies that things are truly on the mend now.
This may actually be a great time for the residents to put their property on sale if they want to upgrade or move to a different neighborhood. There is so much demand for homes that an average house is being sold within 1.93 months of being put on sale while the usual number is about 6 months. If the property is in good condition and well cared for, it can sell faster because of robust demand.
Bill also suggested that buyers should expect changes in the regulations starting Oct 3. Some prominent changes that he mentioned were that the closing disclosure will become the buyer’s responsibility and that Intent To Proceed will be an important document without which closure would not be possible.