Home prices are up in Colorado Springs more than the national average, according to CoreLogic, a global property information and analytics provider. The numbers were revealed in a CoreLogic news release Tuesday.
In Colorado Springs, home prices, including distressed sales, increased by 8 percent in June 2017 compared with June 2016. On a month-over-month basis, home prices, including distressed sales, increased by 0.7 percent in June 2017 compared with May 2017.
Amy Reid, CEO of the Pikes Peak Association of REALTORS® said Colorado Springs is witnessing a trend of home sales and home valuation increases similar to those felt across the nation. Housing statistics from varied sources including the National Association of REALTORS®, Corelogic, and the Pikes Peak Association of REALTORS®, to name a few, all reflect the strength of the housing market from year to year and even on a month to month comparison.
“Colorado Springs is currently one of the most desirable markets for a variety of reasons, outdoor recreation, job market and a geographic location that boasts the backdrop of America’s Mountain-Pikes Peak. These reasons, as well as limited house inventory, are but a few of the factors that are driving the price increases in our local market” said Charles D’Alessio, Chairman of the Board of the Pikes Peak Association of REALTORS® “As REALTORS®, we are at the center of the home selling or home purchase transaction. We see some sellers experience the joys of receiving multiple offers on their property that leads to a bidding situation, while other times we see a house not move from the market as quickly, but also, we see buyers feel the angst of ending up in the middle of multiple bids and losing out on their dream home. These bidding wars are creating an environment where homes are going for more money than the listing price, which is creating rapid price increases and in turn rising home valuations,” added D’Alessio.
D’Alessio says that the housing industry in the Pikes Peak region “will remain strong for the time being. We know that rising prices can cause concern for a correction or crash, but factors in our current market driving prices up are those of low inventory combined with high demand. D’Alessio further suggests that, “the one element that might lead to market disruption is from a political perspective.”
Reid states that the Pikes Peak Association of REALTORS®, as the trusted voice for real estate in the Pikes Peak region, has a commitment to advocate for favorable public policy for homeowners and we are working hard to ensure Congress does not enact tax reform and healthcare policies that hinder consumers.
CoreLogic released its CoreLogic Home Price Index and HPI Forecast for June 2017, which shows national home prices are up strongly both year over year and month over month. Home prices nationally increased year over year by 6.7 percent from June 2016 to June 2017, and on a month-over-month basis, home prices increased by 1.1 percent in June 2017 compared with May 2017, according to the CoreLogic HPI.
Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 5.2 percent on a year-over-year basis from June 2017 to June 2018, and on a month-over-month basis home prices are expected to increase by 0.6 percent from June 2017 to July 2017. 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.
“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory,” said Frank Nothaft, chief economist for CoreLogic. “As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.”
Of the nation’s 10 largest metropolitan areas measured by population, four were overvalued in June, according to CoreLogic Market Conditions Indicators data. These four metros include Denver-Aurora-Lakewood; Houston-The Woodlands-Sugar Land, Texas; Miami-Miami Beach-Kendall, Fla.; and the Washington, D.C. area, including Arlington, Va., and Alexandria, Va.