EL PASO COUNTY — Year-end numbers show Colorado Springs is living up to the designation of one of the top real estate markets in the country. "Low inventory, high demand," said Shield Era Realtor, Eddie Hurt. It is great for sellers and a challenge for buyers.
The demand pushes up home values. November to November comparison shows home prices in El Paso county up 7.3 %t. Alone it is a big jump. Then add in the year before when values went up over 8%. It was close to 10% the year before that. Hurt says good for one group, is not necessarily good for the overall market. "It's crazy. If you own a house, that's great. It's not healthy, really a healthy rate is somewhere more like between 2% and 5%. And when I say healthy it's something more long term. can be sustained."
Population growth is a factor. There is also a growing number of buyers who were priced out of metro areas to the north of El Paso County. "Where you're seeing a large number of people migrate from the Denver area to Colorado Springs.” It equals the number of people looking for houses, outpacing available homes.
Another factor driving the market is buyers not looking for a home—instead they want to make money. "The typical purchaser who's buying a primary residence, they're getting outbid by investors." The investors with large bank accounts can rent the homes and then sell them for a profit five or ten years down the road.
A number helping buyers is current mortgage rates below 4%. "Much greater buying power for that person purchasing," said Hurt. Indicators show the demand for houses in El Paso County will continue the trend.