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Discover: Housing in the Pikes Peak region

By: The Gazette
September 20, 2015 Updated: September 20, 2015 at 3:37 pm
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photo - This recently sold home in the Divine Redeemer neighborhood northeast of downtown Colorado Springs symbolizes the current strength of the area's single-family home re-sale market. September home sales rose nearly 24 percent, while prices were up 5.6 percent, according to the Pikes Peak Association of Realtors. RICH LADEN, THE GAZETTE
This recently sold home in the Divine Redeemer neighborhood northeast of downtown Colorado Springs symbolizes the current strength of the area's single-family home re-sale market. September home sales rose nearly 24 percent, while prices were up 5.6 percent, according to the Pikes Peak Association of Realtors. RICH LADEN, THE GAZETTE 

A housing recovery has taken hold the past few years in the Pikes Peak region, and the upswing in the resale, new home and multifamily markets has continued during much of the first half of 2015.

Local single-family home sales totaled 1,367 in July, a 14 percent increase over the same month last year, according to the Pikes Peak Association of Realtors. For the first seven months of 2015, home sales totaled 7,651, up nearly 19 percent from the same period last year, the association said.

Of homes that sold in July, the median - or midpoint - of all sale prices was $243,000, a 5.7 percent year-over-year increase.

The supply of homes listed for sale totaled 3,409 in July, down 19.3 percent from a year earlier. The inventory of homes for sale remained tight compared with listings from mid-2006 through fall 2011. That's when a poor economy slowed home sales and drove up the number of financially troubled properties flooding the market. Monthly home listings routinely numbered 4,000 to 6,000 in the Colorado Springs area during that period and even topped 7,000 during a couple of months.

PRICES

Median prices of resale homes reached a then-record high of $227,000 in July 2007 - just as the recession hit. But after the economy slumped, prices drifted downward and fell as low as $172,250 in January 2012.

Starting in March 2012, prices turned around. By June of this year, the median sales price had hit a record $250,000. And the median price of area homes sold in July rose 5.7 percent to $243,000, which marked the 14th increase in year-over-year prices in 15 months.

Some of the area's more expensive homes can be found on Colorado Springs' southwest and northwest sides, in the historic Old North End north of downtown and in the Tri-Lakes communities north of the Springs. More moderately priced homes can be found in much of the rest of the region; Colorado Springs' south and southeast sides have some of the area's least expensive housing.

SELECTION

The availability of homes has done an about-face over the past 12 months.

During the recession and a few years after, monthly inventories of homes for sale rose steadily. Now, monthly inventories have declined each month on a year-over-year basis since August 2014 and are well below levels reached when supplies were at their peak.

Ranch-style homes are common in central Colorado Springs neighborhoods, such as around the former Wasson High School, while newer homes with a suburban look and feel can be found in Briargate, Northgate and other north and northeast-side areas.

Downtown has become home to loft living in recent years, while seven-figure mansions can be found around the posh Broadmoor hotel on the southwest side and in northwest Kissing Camels.

Mid- and upper six-figure homes can be found on the southwest, northwest and north sides and in the Tri-Lakes communities; starter and first-time move-up homes have been built in areas north, northeast and east of Colorado Springs, along with the city of Fountain to the south.

 

NEW VS. RESALE

Resales dominate the Pikes Peak region's housing market, but dozens of homebuilders also serve the region, including several local companies. Construction is taking place in upscale Flying Horse on the north, while more moderately priced homes are underway in Wolf Ranch on the city's far northeast side, the east side Banning Lewis Ranch and Gold Hill Mesa on Colorado Springs' west side. Homes also are being built in Fountain and in unincorporated areas to the northeast, such as Meridian Ranch.

 

RENTAL MARKET

About 46,000 apartments are available in the Pikes Peak region. Many newer complexes can be found on the Springs' north and northeast sides, while dozens of complexes on the south and southeast sides serve Fort Carson soldiers.

Apartments have become much tougher to find over the past few years. The area's apartment vacancy rate fell to 4.6 percent in the second quarter of 2015. By comparison, the vacancy rate regularly topped 10 percent between 2006 and 2008. As apartments have filled up, monthly rents have risen - climbing to a record $899.22 in the second quarter of this year.

HOUSING BY THE NUMBERS

In El Paso and Teller counties

$243,000: Median single-family home price in July, up 5.7 percent from a year earlier.

$275,417: Average single-family home price in July, up 3.1 percent from a year earlier.

1,367: Number of single-family home sales in July, up 14 percent from a year earlier.

3,409: Supply of single-family homes for sale in July, down 19.3 percent from a year earlier.

279: Number of single-family homebuilding permits issued in July, up 55.9 percent from a year earlier.

1,637: Number of single-family home building permits issued through July, up 8.9 percent from a year earlier.

4.6 percent: Apartment vacancy rate in second quarter 2015, down from 5.5 percent a year earlier.

$899.22: Average monthly apartment rent in Colorado Springs during second quarter, up 4.4 percent from $861.04 a year earlier.

Sources: Pikes Peak Association of Realtors; Pikes Peak Regional Building Department; Colorado Division of Housing

rich laden, THE GAZETTE, 636-0228, rich.laden@GAZETTE.COM

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