Don’t Aways Trust The Media – The Colorado Springs Real Estate Market

If you listen to the media you would believe that the housing market is in terrible condition. The media is very good at spinning the facts to fit what will make the best story for them to bring in viewers and sell newspapers. Despite what you will find in the media the fact remains that all real estate is local, and that there are markets that are not in shambles and some are even thriving.

I don’t deny that there are many markets that are in terrible condition. Areas like California, Las Vegas, Florida,
Phoenix are just a few markets that have been going through rather dramatic declines in housing prices for several years now. But these areas also went through many years of unsustainable increase in housing prices.

In Colorado Springs we are experiencing a slight slowing compared to a “normal” market but when you actually look at the facts our market is vary healthy especially when compared to other markets. Currently Colorado Springs has a 15% higher than normal inventory level.

This level is actually down from our high of over 30% increase in normal inventory levels that we experienced in the spring. We have had a decrease in inventory over the past four months, a very positive trend as inventory levels continue to lower to more normal levels.

This year Colorado Springs has an approx. 1.3% increase in the average sales price of a home when compared to one year ago. I would be willing to bet that not many people know that our local real estate market actually has an appreciation rate of 1.3% this year. Last year there Colorado Springs had about a 5.7% increase in the average sales price compared to the prior year.

With higher inventory levels and fewer sales our market does still have some challenges. In an environment were it “appears” that the real estate market is just terrible, the Colorado Springs real estate continues to remain in healthy condition.