Affordable housing is becoming harder to find as Colorado Springs experiences a residential real estate market with low inventory and increasingly higher prices. Millennials are finding themselves priced out of much of the market, while others are deciding to hang on to their homes because low inventory leads to uncertainty.
Affordable housing is becoming harder to find as Colorado Springs experiences a residential real estate market with low inventory and increasingly higher prices. Millennials are finding themselves priced out of much of the market, while others are deciding to hang on to their homes because low inventory leads to uncertainty.

Colorado Springs homeowners who sold their property in the first quarter of this year realized an average 32.9 percent return on the original purchase price, according to a report released today by ATTOM Data Solutions of Irvine, Calif.

The median sales price of a home in the Colorado Springs Metropolitan Statistical Area, which encompasses El Paso and Teller counties, was $285,000 in Q1 of 2019, 1.8 percent higher than last quarter and up 7.5 percent year over year.

The median price was up 43 percent from the area’s pre-recession peak of $199,900 in Q3 of 2007. The local market bottomed in Q1 of 2012, when the median price dropped to $163,450. The median home price has grown 74 percent since then, according to data accompanying the report.

First-quarter home sellers in the Springs MSA had lived in their homes an average of 6.73 years, 10.3 percent below the average homeownership tenure in the last quarter of 2018 and down 0.2 percent year over year.

Nationwide, the Q1 2019 U.S. Home Sales Report showed that homeowners who sold in the first quarter realized an average price gain of $57,500 since purchase, representing an average 31.5 percent return on the purchase price.

The report also showed that, nationwide, homeowners who sold in the first quarter had owned an average of 8.05 years, down slightly from a record-high average homeownership tenure of 8.17 years in Q4 2018 but still up from 7.75 years in Q1 2018.

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Homeownership tenure averaged 4.21 years nationwide between Q1 2000 and Q3 2007, prior to the Great Recession.

“We are starting to see homes sales prices and profit margins softening for the nation, and the average homeownership tenure did see a slight dip from last quarter,” said Todd Teta, chief product officer at ATTOM Data Solutions.

“However, home prices are still above pre-recession peaks in 59 percent of local markets, and as the buying season starts to kick into gear, the next few months may provide even more answers to the question of whether a lasso is indeed around the market or if the recent trend is a temporary bump in the ride,” Teta said.

Counter to the national trend, the average homeownership tenure in Q1 2019 decreased from a year ago in 25 of 108 metro areas analyzed in the report (23 percent), including Colorado Springs, Kansas City, Tucson, Boston, Orlando and Oklahoma City.

Among major metropolitan areas with a population of at least 1 million, those with the longest average homeownership tenure for home sellers who sold in the first quarter were Hartford, Conn. (12.52 years); Boston, Mass. (12.36 years); Providence, R.I. (11.15 years); San Francisco, Calif. (10.40 years); and San Jose, Calif. (10.27 years).

Median home prices in 73 of the 123 metro areas analyzed in the report (59 percent) were above pre-recession peaks in the first quarter of 2019, led by three Colorado metro areas: Greeley (79 percent above); Denver (68 percent above); and Fort Collins (67 percent above). Austin, Tex. (62 percent above); and Dallas (58 percent above) rounded out the top five.

Other major metros with at least 1 million people and with Q1 2019 median home prices at least 40 percent above pre-recession peaks were Nashville, Tenn. (55 percent above); San Antonio, Tex. (49 percent above); San Jose, Calif. (43 percent above); Houston, Tex. (43 percent above); and Kansas City, Mo. (41 percent above).

Median home prices in 49 of the 123 metro areas analyzed in the report (40 percent) were still below pre-recession peaks in the first quarter of 2019, led by York-Hanover, Pa. (56 percent below); Trenton, N.J. (35 percent below); Atlantic City, N.J. (32 percent below); Bridgeport-Stamford-Norwalk, Conn. (28 percent below); and New Haven, Conn. (22 percent below).

Major metros with at least 1 million people and with Q1 2019 median home prices at least 10 percent below pre-recession peaks were Hartford, Conn. (17 percent below); Philadelphia, Pa. (15 percent below); Chicago, Ill. (14 percent below); Baltimore, Md. (13 percent below); Miami, Fla. (12 percent below); Washington, D.C. (10 percent below); and Birmingham, Ala. (10 percent below).

U.S. homeowners who sold in the first quarter of 2019 realized an average home price gain since purchase of $57,500, down from an average gain of $60,000 in Q4 2018 but up from an average gain of $56,733 in Q1 2018. The average home seller gain of $57,500 in Q1 2019 represented an average 31.5 percent return as a percentage of original purchase price.

Among 123 metropolitan statistical areas analyzed in the report, those with the highest average home seller returns in Q1 2019 were San Jose (84.1 percent); San Francisco (70.9 percent); Seattle, Wash. (63.1 percent); Modesto, Calif. (59.7 percent); and Salt Lake City, Utah (56.5 percent).

All-cash sales represented 28.0 percent of all single family and condo sales in Q1 2019, up from 27.7 percent of all sales in the previous quarter, but down from 28.9 percent of all sales in Q1 2018.

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