Home prices in Colorado Springs increased an average of 7.7 percent in April when compared to the same time last year, according to a recent report by California-based real estate research firm CoreLogic.
During that 12 months, home prices in the U.S. increased an average of 6.9 percent with the strongest gains seen in western states, according to the report. U.S. home prices increased 1.6 percent from March to April, while Colorado Springs home prices jumped just .9 percent. The state of Colorado experienced a 8.8-percent increase in home prices from April 2016 to April 2017, according to the report.
“Mortgage rates in April dipped back to their lowest level since November of last year, spurring home-buying activity,” said CoreLogic Chief Economist Frank Nothaft. “In some metro areas, there has been a bidding frenzy as multiple contracts are placed on a single home. This has led home-price growth to outpace rent gains. Nationally, home prices were up 6.9 percent over the last year, while rent growth for single-family rental homes recorded a 3 percent rise through April, according to the CoreLogic Single-Family Rental Index.”
CoreLogic’s HPI Forecast also indicated that home prices would continue to rise through the next year, with estimated projections of 5.1-percent growth from April 2017 to April 2018. U.S. home prices are expected to increase another .7 percent from April to May.
According to CoreLogic executives, the continued increased is expected to be propelled by interest rates on fixed-rate mortgages, which are currently more reasonable than in recent months.
“Interest rates on fixed-rate mortgages are down by one-fourth of a percentage point since mid-March, just in time to support the spring home-buying season,” said CoreLogic President and CEO Frank Martell. “Some metro areas have low for-sale inventory, short time-on-market trends and homes that sell above the list price. Geographically, gains were strongest in the West with Washington and Utah posting double-digit gains.”
To view the report in its entirety, visit corelogic.com.