Home prices in Colorado Springs have increased 8.7 percent since last year and will continue to increase year-over-year, according to a CoreLogic Home Price Index and HPI Forecast released Nov. 7.
This is higher than Colorado’s 8.2 percent increase and Denver’s 8.4 increase since last year. Home prices across the U.S. increased by 7 percent since last September, according to the report.
“Heading into the fall, home price growth continues to grow at a brisk pace,” CoreLogic Chief Economist Frank Nothaft said in a news release. “This appreciation reflects the low for-sale inventory that is holding back sales and pushing up prices.”
According to Quantum Residential Group’s 3rd Quarter Market Report for 2017, the median price of homes in Colorado Springs has increased to $268,300, up $250,600 the same time last year.
“With a pace like this the Pikes Peak region continues to draw buyers from across the nation who recognize the strong recovery of our housing market,” the report said.
In Q3, El Paso County saw the sale of more than 4,900 homes, which passed last year’s Q3 by 9 percent and set a 10-year record when it hit more than 4,500 home sales, according to Quantum’s report.
“The demand for housing in El Paso County has moved many home owners to consider selling while the market is still in their favor,” the report said.
According to the Pikes Peak Realtor’s Association, the inventory of houses for sale in El Paso County as of October was 1,937 single-family homes, which are staying on the market an average of 29 days.
“A strengthening economy, healthy consumer balance sheets and low mortgage interest rates are supporting the continued strong demand for residential real estate,” CoreLogic President and CEO Frank Martell said in the release. “While demand and home price growth is in a sweet spot, a third of metropolitan markets are overvalued and this will become more of an issue if prices continue to rise next year as we anticipate.”
By next September, homes prices in the U.S. are projected to reach a 4.7 percent increase, according to CoreLogic’s press release, which also stated in the top 50 real estate markets based on housing stock, that 48 percent of homes were considered overvalued, 16 percent were undervalued and 36 percent were at value as of September.
Denver is considered an overvalued metropolitan area, and currently has a median sold price of $415,000 for single-family homes, according to the Denver Metro Association of Realtors.
CoreLogic Market Condition Indicators defines overvalued home markets as prices that are 10 percent higher than the long-term, sustainable levels, while undervalued housing markets are home prices that are 10 percent below long-term sustainable levels.