Times have been good if you’re a Colorado Springs home inspector, a real estate agent, or if you’ve recently sold a home in the area.
In 2018, Colorado Springs was heralded as one of the hottest housing markets in the United States – with a report from Trulia, a housing data company, claiming that it would be the #1 market in the US in 2019.
But is this true? Can you expect home prices and real estate to continue to stay hot throughout the next year? In this blog, we’ll discuss the facts, and help you understand what you should expect from the market.
Home Prices Have Been Trending Upward For Years
It’s a fact that home prices in Colorado Springs have surged dramatically in the last several years. Let’s look at some of the facts, according to data from Zillow.
In January 2012, the median list price in Colorado Springs was $182,000, and the median sale price was $164,000. And in the intervening seven years, things have changed dramatically.
As of November 2018 (the recently-available month with data on Zillow) the median listing price in Colorado Springs was $309,000, and the median sale price was $282,000. In just seven years, the average value of a home in the area has risen by $100,000, which is – in a word – astonishing.
Rising Home Prices And Interest Rates Could Hinder Future Market Growth
Markets cannot grow forever, that’s just a simple fact. Eventually, the market in Colorado Springs will level off – and it’s possible that this could happen in 2019, for two main reasons.
First, rising housing prices make it more difficult for new home buyers to qualify for a loan, and to afford a home. More expensive homes simply are out of reach for many new and first-time buyers.
Understanding federal interest rate hikes can be confusing – so we’ll boil it down. As interest rates go up, so does the cost of a mortgage.
According to data collected by Freddie Mac, in January 2018, mortgage rates averaged about 4.03%. By December, 2018, this rate had reached 4.64%, which is one of the largest jumps in recent history.
Our Outlook: Expect Growth (But Don’t Expect The Same Level Of Growth)
Combined, higher mortgage rates and home values are likely to make the housing market in Colorado Springs cool down somewhat.
The fundamentals of the housing market remain strong, but high home values and interest rates may price out new buyers.
However, we still expect to see a significant amount of growth. Zillow predicts a 5.8% growth in home prices in 2019 – down from 9.7% in 2018 – and that seems realistic to us.
So, if you’re interested in buying in Colorado Springs, now is a great time! Get together with your real estate agent, find a few homes you’re interested in, and get a home inspection in Colorado Springs. You’re sure to find a great deal on a stellar property, and be able to take advantage of one of the hottest housing markets in the United States. Check out our Colorado Springs Home Inspection page for details on our services.