Potential buyers kept out of market by high home prices - KOAA.com | Continuous News | Colorado Springs and Pueblo

Potential buyers kept out of market by high home prices

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The number of pending home sales made a sharp rebound in February, but new research shows many would-be home buyers are still being left out.

Home prices hit a 31 month high in january, leaving many feeling priced out of the market.

"This great mismatch by home price growth and income growth is bringing additional challenges to people who are renting and wanting to convert into ownership," says National Association of Realtors Chief Economist Lawrence Yun. 

Affordability isn't the only factor, especially among millenials. Many say lifestyle is driving their decision to rent rather than own.

"I have the option to live in an area that I would not be able to afford to buy a house," says renter Kristen Wood.

Read more from the National Association of Realtors - http://bit.ly/2olv1zK

In Colorado Springs, the Pikes Peak Association of Realtors (PPAR.com) reports a little more than 1,300 homes are for sale with an average home price of $301,385.

As News 5 has reported, the number of homes on the market is down by about half from last summer.

The demand is from people moving to the area; rising rent rates pushing renters to buy; and builders who cut back during the recession ten years ago, now cautious about building too much too quickly.

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