Colorado Springs’ housing market is one of the hottest in the nation, according to Realtor.com.
The real estate listings website ranked Colorado Springs as last month’s No. 6 hottest market.
In November, homes in Colorado Springs had a median list of price of $367,000 and a median time on market of 50 days, which was four percent shorter than in 2017.
Meanwhile, Trulia, another online real estate service, recently ranked the city as the No. 1 market poised for growth next year.
“Strong employment growth and a large share of young residents helped put Colorado Springs, Colo. at the top of the list of markets to watch,” Cheryl Young, senior economist at Trulia, said in a report summary.
Trulia used five key metrics to rank the nation’s 100 largest housing markets, including: job growth over the past year; vacancy rates; starter-home affordability; more inbound than outbound home searches on the website; and large share of adults under the age of 35.
“The hot markets that drove U.S. housing in recent years (we’re looking at you, coastal tech hubs) will give way in 2019 to a new group of affordable, young, opportunity-filled, desirable — and largely inland — cities primed to drive growth in the years to come,” Young wrote.
The Colorado Springs area ranked in the top 10 of the largest 100 metros in job growth and Millennial population, according to the Trulia report.
Trulia also listed Colorado Springs as a top housing market to watch in its 2019 Housing Market Outlook.
The website service surveyed more than 2,000 people and used its housing research and analysis from the past year to make the following predictions about the U.S. housing market in 2019:
- Nationwide housing inventory will remain tight. While some pricier coastal markets in California saw more for-sale starter and trade-up homes last quarter, that is not expected to be the case for most cities next year.
- Worsening affordability will slow down home buying activity. Home price growth has outpaced income growth over the past several year, which makes for a more unaffordable housing market.
- Over the past several years, home price growth has largely outpaced income growth, making for an increasingly unaffordable home buying environment.
- Mortgage rates will continue to rise in 2019, reaching 10-year highs. Mortgage rates on 30-year, fixed rate loans have been less than 5 percent since the end of the recession. Those record-low rates will end in 2019. About 19 percent of renters say rising mortgage rates were their biggest obstacle to buying a home.
- Expect natural disasters to impact more communities in 2019, but have a moderate effect on the housing market overall. In 2018, Hurricanes Michael and Florence in addition to wildfires in California and other localized disasters have damaged or destroyed tens of thousands of U.S. homes. Still, about 52 percent Americans are no more or less concerned than before recent natural disasters about the potential threat of a natural disaster affecting their home.
- More Millennials will buy their first homes in 2019. The national homeownership rate is rising and is currently at the same level it was in 2014 with the largest gains in homeownership rates in recent years among those under 35 years old.
- Goodbye Silicon Valley, Hello Heartland. Colorado Springs is among the Top 10 Housing Markets to watch in 2019.