As the summer housing market comes to an end in Colorado Springs, it’s time to take a look at the numbers to assess the health of the market. According to the Zillow website, Colorado Springs has a current median home value of $256,300. This represents an increase of 9.3% over the past year. The economists at Zillow estimate that Colorado Springs prices will continue rising in 2017 and 2018 to the tune of 3.8%. This tells us that the market is cooling down a little bit and should be welcome news for buyers who have been competing with multiple offers trying to buy a home.
Currently the average list price in Colorado Springs is sitting at about $310,000 or $142 per square foot. The values in the metro area are the same at $142 per square foot. Current rental prices are $1475.
Prices have soared over the past few years. As recently as 2015, you could buy a home in Colorado Springs for about $200,000. The rise in home prices has resulted in home owners feeling comfortable with their equity position in their homes. In the United States, 10.4% of home owners have negative equity; meaning they owe more on their home than it is worth. In Colorado Springs, only 8.1% of homes have negative equity. This tells us that the housing market in Colorado Springs, is healthier than the national average.
Sellers looking to maximize their home value, often look to increase the value by doing some home improvement projects or remodeling prior to listing their house for sale. There are lots of small things you can do to increase the value. Many sellers focus on curb appeal and paint the front door, seal coat the drive way and plant flowers along the side walk. Sellers looking at larger projects may consider using barn wood or reclaimed lumber from a local Colorado lumber yard to build an accent wall, install beams or even replace an old fire place mantel. Of course, painting will probably be the biggest bang for your buck.
We’re glad to see that prices in Colorado Springs are starting to settle down. We’ve been contacted by so many potential buyers over the past year who we were unable to help due to soaring prices and lack of demand. Now is a great time to begin your home search. The winter months are always a little slower, so you will face less competition from other buyers.