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January 11th, 2019 by Marco Santarelli
Introduction To Colorado Springs Real Estate Market
The Colorado Springs real estate market gets overlooked in favor of bigger markets like Denver. However, Colorado Springs has a number of things in its favor for residents and real estate investors alike. We’ll provide an overview of the Colorado Springs area and before listing ten reasons to invest in the Colorado Springs housing market. Colorado Springs sits on the eastern side of the Rocky Mountains. Colorado Springs contains nearly half a million people. The Colorado Springs metropolitan area is home to around seven hundred thousand people. The Colorado Springs area is seeing continual, rather fast growth.
Colorado Springs real estate has continued to appreciate in value faster than most of the markets in the US. Conditions in the Colorado Springs real estate market seem to be in a sustainable, upward direction and show no signs of slowing down. The single-family home market in Colorado Springs is stabilizing a little bit. Inventory is rising and prices are increasing at a slower pace. The local economy is strong and mortgage rates remain low.
Colorado Springs Real Estate Market Forecast 2019
On Zillow, the median home value in Colorado Springs is $285,000. Colorado Springs home values have gone up 9.7% over the past year and the Colorado Springs real estate market forecast is that they will rise 5.8% in 2019. The median list price per square foot in Colorado Springs is $187, which is lower than the Colorado Springs Metro average of $192. The median price of homes currently listed in Colorado Springs is $309,925 while the median price of homes that sold is $282,500. The median rent price in Colorado Springs is $1,500, which is lower than the Colorado Springs Metro median of $1,550.
Colorado Springs Real Estate Market Trend 2018
There is a high demand and low inventory in the Colorado Springs real estate market, just not as extreme as earlier in the year 2018. Housing prices are still increasing because of this effect of supply and demand. Colorado Springs real estate market trends indicate an increase of $26,000 (10%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period rose to $195, up from $177. Trulia has 2,123 resale and new homes in Colorado Springs lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median rent per month for apartments in Colorado Springs for Sep 22 to Oct 22 was $1,550. Average price per square foot for Colorado Springs was $195, an increase of 10% compared to the same period last year. The median sales price for homes in Colorado Springs for Jul 18 to Oct 17 was $280,000 based on 3,067 home sales.
As per the real estate company named Redfin, the Colorado Springs housing market is very competitive. Homes in Colorado Springs receive 2 offers on average and sell in around 38 days. The average sale price of a home in Colorado Springs was $289K last month, up 9.9% since last year. The average sale price per square foot in Colorado Springs is $136, up 6.7% since last year. Homes for sale in the Colorado Springs housing market sell for about 1% below list price and go pending in around 38 days. Hot Homes can sell for about 1% above list price and go pending in around 16 days
Downtown Colorado Springs Housing Market Trend
The Downtown Colorado Springs housing market is somewhat competitive. The average sale price of a home in Downtown Colorado Springs was $530K last month, up 117.9% since last year. The average sale price per square foot in Downtown Colorado Springs is $299, up 48.4% since last year.
Some homes get multiple offers. Homes in Downtown Colorado Springs sell for about 2% below list price and go pending in around 62 days. Hot Homes can sell for about list price and go pending in around 26 days.
Colorado Springs Housing Market Summary
There are 2,328 homes for sale, ranging from $28.6K to $8.9M on Realtor.com. In December 2018 the housing market in Colorado Springs, CO was a buyer’s market, which means there were roughly more active homes for sale than there were buyers. Buyer’s markets are generally more advantageous for buyers rather than sellers. Housing market trends in Colorado Springs show us that in December 2018, the median list price of homes in Colorado Springs, CO was $297K, trending up 10% year-over-year.
The median listing price per square foot was $138. The median sale price was $283K. On average, homes in Colorado Springs, CO sell after 48 days on the market. The trend for median days on market in Colorado Springs, CO is flat since last month, and flat since last year.
On Movoto.com, the median list price in Colorado Springs is $435,000. The median list price in Colorado Springs was less than 1% change from undefined to January. Colorado Springs’s home resale inventories is 319, which decreased 10 percent since undefined 2019. The median list price per square foot in Colorado Springs is $148. undefined 2019 was $146. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in January.
According to Neigborhoodscout.com, single-family detached homes are the single most common housing type in Colorado Springs, accounting for 61.35% of the city’s housing units. Other types of housing that are prevalent in Colorado Springs include large apartment complexes or high rise apartments ( 22.32%), row houses and other attached homes ( 7.94%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 6.35%). The most prevalent building size and type in Colorado Springs are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 57.14% owning and 42.86% renting.
Colorado Springs Foreclosures And Bank Owned Properties
Foreclosures will be a factor impacting home values in the next several years. In Colorado Springs 0.1 homes are foreclosed (per 10,000). This is the same as the Colorado Springs Metro value of 0.1 and also lower than the national value of 1.2. The percent of delinquent mortgages in Colorado Springs is 0.5%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Colorado Springs homeowners underwater on their mortgage is 5.7%, which is lower than Colorado Springs Metro at 5.9%.
There are currently 478 properties in Colorado Springs, CO that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 949. In November, the number of properties that received a foreclosure filing in Colorado Springs, CO was 39% lower than the previous month and 21% lower than the same time last year.
Home sales in Colorado Springs, CO for October 2018 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home in Colorado Springs, CO was $0, or 0% higher than non-distressed home sales.
Colorado Springs Home Prices And Appreciation Rates
Colorado Springs real estate appreciated 42.59% over the last ten years, which is an average annual home appreciation rate of 3.61%, putting Colorado Springs in the top 10% nationally for real estate appreciation. If you are a home buyer or real estate investor, Colorado Springs definitely has a track record of being one of the best long term real estate investments in America through the last ten years.
According to Neighborhoodscout.com’s data, appreciation rates are so strong in Colorado Springs that despite a nationwide downturn in the housing market, Colorado Springs real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Colorado Springs appreciation rates continue to be some of the highest in America, at 11.14%, which is higher than appreciation rates in 95.87% of the cities and towns in the nation.
Based on the last twelve months, short-term real estate investors have found good fortune in Colorado Springs. Colorado Springs appreciation rates in the latest quarter were at 3.54%, which equates to an annual appreciation rate of 14.93%, which makes Colorado Springs one of the highest appreciating communities in the US for the latest quarter of 2018. This is a pretty good sign for the future of real estate investment in Colorado Springs. Relative to Colorado, their data shows us that Colorado Springs’s latest annual appreciation rate is higher than 90% of the other cities and towns in Colorado.
10 Highest Appreciating Colorado Springs Neighborhoods Since 2000: By Neigborhoodscout.com
10 Reasons To Buy Investment Real Estate In The Colorado Springs Market
Here are the top 10 reasons to invest in the Colorado Springs real estate market over better known markets like Denver.
1. The Large Student Market
Many people know that the Air Force Academy is located in Colorado Springs. However, the student market in Colorado Springs is both larger and more diversified than the military student population. The University of Colorado Springs hosts over twelve thousand students.
Colorado College, Colorado Technical College, Remington College, Colorado Christian University and the University of the Rockies are also located here. This provides a large, diverse student market that rents properties across the Colorado Springs real estate market.
2. The Diverse Military Market
U.S. News and World Report magazine discusses the large retiree community in Colorado Springs. The area’s abundant recreational opportunities and proximity to military services like commissaries and VA facilities explain why more than 10% of the population is retired – many of them military veterans and their families. Peterson Air Force Base sits on the eastern edge of town.
For Airbnb attractability and business building, there are two huge military bases with Air Force, Naval Academy. Fort Carson, an Army base, is located within the city limits. The infamous Cheyenne Mountain is located just to the west of town. A side benefit of this diverse military market is that the Colorado Springs real estate market enjoys a large, permanent population of renters but without the wild swings that come with the rise and fall of a single military base’s fortunes.
3. The Tourist Market – Airbnb Friendly City
A city that’s within a stone’s throw of Pike’s Peak and the rest of the Rocky Mountains is going to attract tourists. Garden of the Gods is a very famous public park located in Colorado Springs. It was designated a National Natural Landmark in 1971. It features stunning geological formations, rock climbing, nature trails and the Garden of the Gods Visitor & Nature Center.
Another major attraction is the US Olympic Training Center, located in Colorado Springs. Colorado Springs allows properties to be rent out on a short-term basis, but you must have a short-term rental permit and collect the appropriate taxes. Colorado Springs’ regulations on short-term rentals are not as stringent, though, as those in nearby “tourist” towns like Breckenridge.
Colorado Springs is a very Airbnb friendly city. You can convert your property into an Airbnb vacation rental and rent it out to vacationers and tourists on a short term rental basis. Owning a house near the Gardens of the Gods Park can prove to be a goldmine in building up your Airbnb rental business. For setting up an Airbnb business, there are lots of outdoors attractions, 3 hospitals, the Broadmoor hotel (historic hotel on a lake), 2 cute downtown streets with restaurants (downtown and colorado city), 90mins from Denver, and 2 hours from skiing in Breckenridge.
Their airport offers direct flights to many cities via Frontier & United. You can also co-host clients in Colorado Springs through profit sharing with landlords. You can charge landlords a start up fee and 20% commission for co-hosting (finding clients and getting the property Airbnb ready).
The controversial Airbnb ordinance was passed in November 2018 by the Colorado Springs City Council. Under the ordinance, property owners must apply for a license, pay taxes and obey neighborhood rules. This came into effect on January 1st, 2019.
4. The Strong Job Market
The Colorado Springs area boasted an unemployment rate of around 3% in 2018, more than a full percentage point less than the national average. People move here for work and the lower cost of living compared to more expensive Front Range cities. Industry sectors hiring people include hospitality and professional and technical services. The latter category is driven by defense contractors in the area.
5. Demographic Momentum
Despite the very large population over the age of 65, Colorado Springs managed to have a median age of 34, several years below the national average. The tight labor market is drawing people to the area and keeping college graduates in the vicinity. This guarantees demographic momentum as young people stay here to buy homes and raise their own families, fueling demand for the Colorado Springs real estate market.
6. The Affordable Real Estate Market
The Colorado Springs real estate market is notable for how affordable it is compared to many other cities in the Rockies. The median home price is around $260,000, and the median rent is roughly a thousand a month. That is about 10% higher than the national average, but the average price of a home in Denver passed half a million dollars in 2018.
In short, you can buy two homes in Colorado Springs for the price of one in Denver. The double digit price gains in Denver will push people to Colorado Springs, as well, since relatively few earn the $90,000 a year income needed to afford the average Denver home.
7. The Intersection of Technology and Affordability
Colorado prides itself on cultivating high tech jobs like California without the over-crowding or insane housing prices. Yet this has made the Denver housing market unaffordable for many people who work there. One solution for many is living in Colorado Springs and commuting an hour or more each way to work. Another solution that’s more readily available in Colorado than elsewhere is telecommuting.
Realtors in the Colorado Springs housing market are finding people buying houses even on the south side so they can find a property they can afford, then driving in one or two days a week to Denver. Conversely, the high price of property in Denver is driving many businesses to move or expand south into the Front Range, bringing Denver’s jobs closer to the Colorado Springs housing market.
8. The Landlord Friendly Market Compared to the Rest of the West
Colorado is almost as landlord friendly as Arizona and Texas, but it is far more landlord friendly than Nebraska, Kansas, or any West Coast state. Colorado allows you to quickly evict tenants who don’t pay their rent. Once you give them a demand for compliance, they have 72 hours to either pay up or move out. If that 3 day period expires and you go to court, the courts typically side with the landlord.
After that ruling, the tenants have 48 hours to leave, and then local law enforcement will enforce the eviction order. Another major point in its favor is that you’re not required to get tenants 24-hour notice before you visit the property.
9. Near Guaranteed Appreciation
Population growth in Colorado Springs has been just ahead of new home construction; housing permits in the Colorado Springs real estate market, for example, are not yet back at 2005 levels. This helps to explain why home prices have risen more than 40% in the past five years, though it is one of the most active housing markets in the country. This is partially due to the fact that Millennials are the biggest group buying houses today, and the Colorado Springs real estate market is already loaded with them.
Millennials prioritize homes in walkable areas with access to public transit, but they value practical, usable homes over size. This means well-designed condos and duplexes in the right areas are as attractive to them as a large house in the suburbs. However, the limited supply of homes on the market in Colorado Springs is keeping prices increasing faster than the rate of inflation. Ironically, the near total lack of homes with negative equity in the Colorado Springs housing market has been considered one reason why prices are going up so fast.
10. The Low Property Taxes
Colorado has some of the lowest property taxes in the nation. The effective property tax rate residents pay is 0.57% per year, the sixth lowest out of the fifty U.S. states. For comparison, the national average property tax bill is around 1.2%.
Colorado Springs CO Real Estate Investment: Summary
If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Colorado Springs, CO. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019.
The Colorado Springs housing market contains several large populations of renters, many practical reasons for people to move here from the surrounding area and across the country, and long-term factors that will drive growth for years to come. Forget the Mile High City and invest in the Colorado Springs real estate market.
Which Cities/Markets Are Good For Real Estate Investing In 2019?
Apart from the Colorado Springs housing market, you can also invest in Charleston, SC. The Charleston housing market is certainly benefiting from a local economy that has gained worldwide attention. The Charleston SC real estate market contains multiple, sizable renting populations aside from a growing workforce that cannot afford to buy local single family homes.
The strong job market and relatively limited space is driving up rents and home values. According to report published on Charlestonrealestate.com, the feeling is that the Charleston real estate market will have an adequate demand for housing in 2019. However, increased inventory and lower buying power will result in lower sale prices and signify a buyer’s market. A buyer’s market indicates that buyers have greater control over the price point.
Another market that we suggest is the housing market in Raleigh, NC. The Raleigh housing market is landlord friendly, contains several large populations of renters, and an economic future that ensures long-term growth in housing demand and rents. Owning a piece of Raleigh real estate is a great achievement for many people.
Homeowners in Raleigh continue to see their homes appreciate in value because they are in such high demand. From Millennials moving to the area to retirees living here, Raleigh continues to be a great place for people from from all walks of life. Whether you are a Baby Boomer or a Millennial, you will find living in Raleigh is a unique experience. From being a leader in the job market to being a hub for entertainment, it’s pretty clear why many people love to call Raleigh home.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you can fill up the form given here. One of our investment specialists will get in touch with you. Norada Real Estate Investments helps take the guesswork out of real estate investing. We can help you succeed by minimizing risk and maximizing profitability of your real estate investments.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Affordable real estate
Airbnb https://www.zeonamcintyre.com/blog/2018/1/26/airbnb-investing-trip-colorado-springs-edition https://www.krdo.com/news/top-stories/airbnb-ordinance-passes-2nd-vote-by-colorado-springs-city-council/862178044
Landlord friendly https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
Low property taxes https://denver.cbslocal.com/2018/02/27/colorado-low-property-taxes
Market Trends And Forecast https://www.zillow.com/ColoradoSprings-co/home-values https://www.realtytrac.com/statsandtrends/co/el-paso-county/colorado-springs https://www.neighborhoodscout.com/co/colorado-springs/real-estate https://www.movoto.com/colorado-springs-co/market-trends https://www.redfin.com/city/4147/CO/Colorado-Springs https://www.redfin.com/neighborhood/121691/CO/Colorado-Springs/Downtown-Colorado-Springs/housing-market https://www.trulia.com/real_estate/Colorado_Springs-Colorado https://www.realtor.com/local/Colorado-Springs_CO https://gazette.com/business/more-homes-for-sale-as-colorado-springs-housing-market-changes/article_3dc93e30-c670-11e8-96a1-631c9bcd525a.html
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