CoreLogic, a property information, analytics and data-enabled services provider, released its Home Price Index and HPI Forecast data for December, showing home prices are up month-over-month, as well as year-over-year.
In Colorado Springs, home prices, including distressed sales, increased by 5.4 percent in December 2015 compared with December 2014. On a month-over-month basis, home prices, also including distressed sales, decreased by 0.5 percent in December 2015 compared with November 2015.
Statewide, home prices increased 10.4 percent year over year. The Denver metro area home prices increased 11.4 percent over the same time period.
“That’s what happens when you have limited supply and a lot of demand,” said Colorado Springs Realtor Sylvia Jennings. Jennings, who sells under the Berkshire Hathaway brand, said both home sales and prices are increasing.
“December was just a whopping month,” she said of the 20 percent increase her office experienced over December 2014. “You know the market’s improved when you know people who haven’t sold a house in five years and now they’re busy.”
Regional sales hit 1,105 for December, making a total of 13,250 for the year, beating the region’s previous record set in 2006. That year, 13,124 homes were sold in the Pikes Peak region, according to figures from the Pikes Peak Realtor Services Corp.
The trend of Denver workers buying in Colorado Springs has continued into this year, she added.
In her newsletter, Jennings said, “Denver’s rising home prices and high rents are sending metro area residents packing … straight to Colorado Springs.”
Increased pricing also means homeowners who purchased when prices were high can now sell and not lose money, she added.
“You’re not going to be a millionaire, but we’re going to get you out from under this,” she said.
Home prices nationwide including distressed sales, increased year-over-year by 6.3 percent in December 2015 compared with December 2014 and increased month over month by 0.8 percent in December 2015 compared with November 2015, according to the CoreLogic HPI.
The HPI Forecast predicts home prices will increase by 5.4 percent on a year-over-year basis from December 2015 to December 2016. On a month-over-month basis home prices are expected to increase 0.2 percent from December 2015 to January 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state, according to a news release from CoreLogic.
Nationally, home prices have been rising between 5 and 6 percent annually for more than a year, said Dr. Frank Nothaft, chief economist for CoreLogic.
“Local-market growth can vary substantially from that. Some metropolitan areas have had double-digit appreciation, such as Denver and Naples, Fla., while others have had price declines, like New Orleans and Rochester, N.Y.”
“Higher property valuations appear to be driving up single-family construction as we head into the spring. Additional housing stock, especially in urban centers on the coasts such as San Francisco, could help to temper home price growth in the longer term,” said Anand Nallathambi, president and CEO of CoreLogic. “In the short and medium term, local markets with strong employment growth are likely to experience a continued rise in home sales and price growth well above the U.S. average.”