Prices soft, but local home market impressing researchers

Filed under: Daily News | Tags:, ,

Home sales statistics for the Pikes Peak region seem to be improving slightly and are impressing a number of national real estate industry researchers.

In its online real estate feature story, “Best Cities for a Housing Recovery,” Forbes.com listed Colorado Springs No. 3 on its top 10 list of cities most likely to return from the downturn, based on data from Zillow.com.

Citing the area’s 14 percent lift in home sales, of which foreclosures represented a relatively small subset at 20 percent, Forbes said the city compared favorably to Bakersfield and Vallejo, Calif. or Phoenix, where more than 50 percent of all home sales were comprised of foreclosures. Denver also ranked No. 7 for a speedy recovery.                                                  

Ken Richardson, broker/manager for the ReMax Properties’ south office said Forbes’ take on the local residential market is probably justified, but believes that foreclosure purchases might pick up in coming months.

“With the average soldier now able to qualify for a new home up to about $250,000, I think you’ll see more home purchases in general – and some will buy foreclosures,” he said. “The banks are now getting more serious about getting foreclosed properties off their books.”

More detailed information about the local area’s sales and pricing trends also appears to support Colorado Springs’ reputation as a stable home sales market.

While sellers in a challenging economy are trying to hang on to valuable equities, the average listing price for Colorado Springs homes for sale based on the most recent Trulia.com data was $313,373 for the week ending Aug 05 – a decline of 1 percent, or $3,136, compared to the prior week, or a 1.8 percent decline ($5,766) compared to a month earlier.

Another Trulia metric – the average price per square foot – was $135, a decrease of 7.5 percent compared to the same period last year.

Overall, the median sales price for homes in Colorado Springs from May through July was figured at $183,345 based on the latest figures from Trulia, Zillow.com, Craigslist and Realtor.com.

That represented an increase of 6 percent, or $10,345, compared to the prior quarter – but a decrease of 8.3 percent compared to the same period during 2008.

Overall, for the past five years, Colorado Springs’ sales prices have depreciated a total of 1.7 percent.