The Colorado Springs metro area saw housing inventory fall 8.7 percent during 2019, meaning the year ended with 250 fewer homes for sale than there were in January 2019.
This tracks with a nationwide drop in homes for sale as the U.S. housing inventory fell to its lowest point in years — down 7.5 percent from 2018, according to Zillow’s December housing numbers released Tuesday.
The shortage is likely to get worse before it gets better, according to a Zillow news release.
A year ago, the combination of a government shutdown, stock market slump and mortgage rate spike caused a long-anticipated inventory rise, according to Skylar Olsen, Zillow’s director of economic research.
That supposed boom turned out to be a short-lived mirage as buyers came back into the market and more than erased the inventory gains, Olsen said in the news release.
“As a natural reaction, the recent slowdown in home values looks like it’s set to reverse back to accelerating growth right as we head into home shopping season with demand outpacing supply,” Olsen said.
As the shortage persists, the slowdown in home value growth may be coming to an end with high demand putting price pressure on the relatively small number of homes on the market, according to Zillow.
The typical value of a Colorado Springs home jumped 6.1 percent to $318,120 in 2019, and rents grew 3.5 percent to $1,480, Zillow reported.
U.S. home values rose 3.7 percent in 2019, down only slightly from 3.8 percent year-over-year growth last month, according to Zillow.
Rents remained stable, growing 2.6 percent during 2019 to $1,600 — the same level as November, Zillow found.