Southeast Colorado Springs has become a hot spot for home sales between $200,000 and $300,000.
“There is definitely an upswing of activity in that price range in the Southeast part of town,” said Joe Clement, owner of RE/MAX Properties Inc. “The rest of the city is having trouble in that price range because it has no inventory. That price range is basically disappearing for most of the Springs.”
This year, 451 homes have been sold within that price range in Southeast Colorado Springs.
That is up from 271 the same time last year, Clement said, adding the number of homes sold in that price range citywide has dropped year-to-date by about 600.
“People can’t find what they want for those prices in other areas of the city that may have a better reputation and are starting to look more in the Southeast,” Clement said. “They also are starting to realize they can get a larger home with a larger lot in that area.”
There are 76 homes under contract between $200,000 to $300,000 in Southeast Colorado Springs and 46 active listings in that price range.
“What we see happening right now is a lot of these houses in the Southeast that have been beat up and run down … have people buying them and fixing them up,” Clement said. “It’s making those neighborhoods better, so it’s really all good for that area.”
Lindsay Parrish, a Realtor with RE/MAX Properties Inc., also has noticed buyers purchasing and renovating homes in the Southeast.
“I feel like there are a lot of flips going on over there,” she said. “Investors are buying up those lower-priced homes, fixing them and then listing them at higher prices.”
Overall, Parrish believes the Colorado Springs residential real estate market has started to stabilize.
“Seasonally, it has slowed down a little bit too,” she said. “I have noticed houses sitting on the market a little bit longer, but they still sell fairly fast. And under a certain price point, they are still selling pretty quickly, which is what is happening in Southeast Colorado Springs.”
Parrish said homebuyers from other states are often shocked by how quickly homes sell here.
“To us, 30 days on the market seems like a long time because of how hot our market has been throughout the city in recent years,” she said. “For people moving here, they are like, ‘Holy cow! It’s only been on the market a month.’ So it can get real competitive real quick for buyers trying to purchase something in that lower price range.”
Additionally, the Southeast part of the Springs is often the first neighborhood of choice for service members looking to buy a home because of its proximity to area military bases.
“Ever since Fort Carson was born, there has been strong presence of military buying and selling in the Southeast,” Clement said. “I don’t think that will ever change. I actually expect to see it grow and become even more competitive over in that market.”
Jennifer Crosby, owner of Springs Home Finders at Keller Williams Partners, recently listed a home on Moonbeam Circle North in Southeast Colorado Springs.
“That house not only brought in top dollar for the market in the area, it sold really fast,” she said. “I would say there has been a little slowdown recently in the entire city as far as multiple offers, but we still have a really strong market here overall.”
There are only two active listings in the Southeast for homes priced below $200,000, Clement said.
“A year ago, at this time, we had 371 sold in the Southeast in that price range,” he said. “Right now, we only have seven under contract and 116 sold for under $200,000. Home prices are definitely going up in the Southeast and across the city while the inventory continues to shrink for anything below $300,000.”
In the past, Crosby said a lot of buyers she’s worked with wouldn’t consider purchasing homes south of Platte Avenue and east of Academy Boulevard.
“But now, if people want to stay within a lower price point, they are having to open up to that market because they can’t afford to buy up north,” she said. “I think that’s why we are seeing a lot more homes sold in the Southeast, and that’s why the prices have increased there and will continue to do so.”
Crosby called the Southeast a seller’s market.
“If you have been wanting to upgrade or if you are considering [moving] further north for whatever reason, it’s a really good time,” she said. “The house values in that area are at the top of where we have ever seen them.”
Parrish says if someone purchased a home in the Southeast between 2007 and 2013, they have likely built some equity.
“They are probably going to make money if they do decide to sell their home right now,” she said.
Parrish and Crosby have each sold between five and 10 houses in the Southeast this year.
“I really think it’s an up-and-coming area for the city,” Parrish said. “[The Southeast] is good for buyers looking for good investments or for anyone looking to purchase a lower-priced home in Colorado Springs.”
She currently is working with multiple homebuyers looking in the Southeast and Fountain areas.
“For bigger families, I definitely think you can find a bigger home for a good price compared to other areas of town,” Parrish said. “The last year, I haven’t had any issues selling homes over in the Southeast. I think it ultimately just depends on the person and what they are looking for.”