By Rich Laden May 2nd, 2017 - The Gazette
The average price - considered less reliable by experts because it can be skewed by a few high or low sales - rose to $311,829 in April, also a record. April's average price was up almost 13.5 percent on a year-over-year basis, the association's report shows.
Other highlights of the report include:
- April home sales totaled 1,309, a 3.2 percent increase over the same month last year. Through the first four months of 2017, sales totaled 4,264, up 2.5 percent over last year.
- It took an average of 28 days for homes to sell in April. By comparison in April 2012, homes sat on the market for an average of 87 days before selling.
- While the number of pricier home sales - $400,000 and up - rose in April, the biggest demand continued to be in lower price ranges. In April, about six of every 10 went for under $300,000. Homes in that price range often sell in a matter of hours, not days, Salzman said.
- The supply of homes for sale remained tight in April. Listings totaled 1,570 - the highest since December, but still down almost 25 percent on a year-over-year basis.
The hot housing market has been driven in large part by stronger local and national economies and rock-bottom mortgage rates. While rates have ticked upward this year, they're still hovering around 4 percent for a long-term, fixed-rate loan.
Another factor driving the demand for homes: high rents, Salzman said.
Apartment rents averaged $1,060 a month in the first quarter of this year, and have set record highs for eight straight quarters, according to the Colorado Division of Housing and the Apartment Association of Southern Colorado. Houses for rent also can easily go for $1,000 to $2,000 a month - or more - depending on size and location, several real estate agent listings show.
"Home ownership is cheaper than paying rent of a similar-sized house," Salzman said. "That's an absolute fact. If someone has the credit worthiness and down payment, absolutely, ownership is much better for them personally and their family."
Until the number of properties for sale - whether new homes or resales - outstrip the area's population growth, expect the strong demand and tight supply to continue to drive up prices, Salzman said.
"Prices are going to go higher," he said. "That's reality."
Original Link: http://gazette.com/colorado-springs-home-prices-skyrocket-to-another-record-high/article/1602275