Most indicators for housing market health are improving, according to the Quarterly Updates and Estimates report from the Southern Colorado Economic Forum.
Detached single family permit activity picked up in June, with 110 more permits than were issued from June to October of 2010.
The report forecasts a 25 percent increase in single family building permits during the next six months.
Permits for townhomes, however, continue to lag. More than 41 percent fewer building permits were issued in the last six months than in the previous six months.
Multi-family permits skyrocketed this year. And there are future apartment plans already on the drawing board.
Home sales also rose almost 2 percent year-to-date over the previous year, while the number of homes being listed for sale has dropped off dramatically.
“The decrease in supply of homes for sale coupled with an increase in sales of homes suggests equilibrium is returning to the local housing market,” the report said.
The average home price is lower this year than last, but prices seemed to be stabilizing.
The supply-and-demand equilibrium in the housing market is beginning to edge toward normal, according to the report. There was a dramatic oversupply of housing in 2006, that persisted through 2009.
The gap between supply and demand is finally narrowing.
“Continued improvement will depend on low mortgage rates, income and job growth,” according to the report.
For the full report, go to www.southerncoloradoeconomicforum.com.