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The improving
Colorado Springs-area housing market showed no signs of slowing last month,
as home sales soared and prices jumped to their highest levels in six years and people are
selling their homes fast.
Local single-family home sales totaled 1,104 in June, a 30.
5 percent increase over the
same month last year and the highest number of home sales for any June since
2007,
according to a report by the
Pikes Peak Association of
Realtors.
For the first half of
2013, single-family home sales totaled 5,
336, a 25.
1 percent
increase over the same period last year, the association's report said. It was the
market's best first-half performance in terms of sales since
2006.
Of homes that sold last month, the median - or mid-point - of all sale prices was
$225,
000, a 6.5 percent year-over-year increase and the highest median price for any month
since $
227,000 in July 2007.
"
It's looking pretty good," said
Jack Beuse of
Paradigm Real Estate in Colorado Springs,
who will become the
Realtor Association's board chairman later this year. "Average sales
price is up.
Median sales price (is up). The number of sales are really looking good."
The supply of homes listed for sale totaled 3,868 in June, up 4.4 percent from a year ago,
the Realtors Association report showed.
It's the second straight month that the supply has risen, including rent to own, a
sign
that more home sellers might be jumping into the market.
Yet, the inventory of homes for sale remained tight compared with listings from mid-2006
through fall
2011. That's when a poor economy slowed home sales and drove up the number of
financially troubled properties flooding the market; monthly home listings routinely
numbered 4,000 to 6,000 in the Colorado Springs area during that period and even topped
7,000 for a couple of months.
With the inventory of homes remaining relatively low, Beuse said he expects prices will
continue to rise.
"If you don't have a lot of inventory, supply and demand will continue to drive prices,"
he said.
But will rising mortgage rates temper that demand?
Thirty-year, fixed-rate mortgages averaged 4.29 percent nationally during the last week,
mortgage buyer
Freddie Mac reported Wednesday. That's down from 4.46 percent from the
previous week, yet many people had grown accustomed to long-term rates of less than 4
percent; they were as low as 3.35 percent in early May.
Meanwhile, the
Mortgage Bankers Association's said Wednesday that mortgage applications
nationally fell 11.7 percent during the week ending June 28, when compared with the
previous week.
Beuse said he doubts the recent rise in mortgage rates will deter buying and selling.
Buyers, he said, will get accustomed to slightly higher rates.
"It's an excellent rate. It's not 18 percent, is it?" Beuse said of rates about 30 years
ago, which remained in double digits for most of the
1980s. "If you look back
historically, rates go up and down, and the market still continues."
An improved economy has brightened the outlook for local commercial real estate, but the
market still has far to go before it fully recovers from the downturn of the last several
years.
The combined vacancy rate for area offices, industrial buildings and shopping centers was
11.5 percent in the second quarter, unchanged from the first quarter, but down from 12.
1
percent in the second quarter of
2012, according to the
Turner report.
As demand for commercial space increased, so did rents. The rent for commercial space
averaged $9.73 per square foot in the second quarter, up a dime from the first quarter and
up 13 cents from last year's second quarter.
"Colorado Springs is experiencing what might be seen as the beginnings of an economic
recovery,"
Paul Turner, of Turner
Commercial Research, said in his report. "
Nothing
startling, but there are more positive signs than negative."
Many companies that had cut back or downsized over the last five years now are continuing
to occupy the same amount of office space or are poised to increase their occupancy as
they commit to growth plans, Scoville said.
Local and out-of-town real estate investors, meanwhile, feel better about the market and
have made a half dozen purchases of office properties since the start of the year,
Scoville said.
While some of the properties were priced low or their owners were in financial trouble,
the investments nevertheless signal that well-capitalized investors are attracted to the
Springs' office market.
We are premier express cash home buyers, we buy, sell & rent to own Colorado Springs Homes
- Sell Your Home Fast: Any Condition, Any Situation!
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- published: 24 Jul 2013
- views: 251