How is The Colorado Springs Real Estate Market 2019?
Buying real estate in Colorado Springs can be a worthy investment opportunity. If you are looking at investing in the Colorado Springs real estate in 2019 as a potential investment opportunity, you must read till the end. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment. The Colorado Springs real estate market is poised for steady price growth in 2019.
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. 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.
Is Colorado Springs going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a deep look at the latest Colorado Springs housing market trends and find out the prospects of investing in the Colorado Springs real estate in 2019.
Colorado Springs Real Estate Market Forecasts 2019 & 2020
According to Zillow, the median home value in Colorado Springs is $294,600. Colorado Springs home values have gone up 6.7% over the past year and Zillow’s Colorado Springs real estate market prediction is that the prices will rise 3.3% within the next year.
The median list price per square foot in Colorado Springs is $288, which is higher than the Colorado Springs Metro average of $280. The median price of homes currently listed in Colorado Springs is $338,950 while the median price of homes that sold is $296,500.
The median rent price in Colorado Springs is $1,600, which is lower than the Colorado Springs Metro median of $1,625. Here is the Colorado Springs real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.3% till July 2020.
Colorado Springs Housing Market Forecast 2019 – 2021
The Colorado Springs housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Colorado Springs housing market trend prediction is 75%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Colorado Springs, CO is 75% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Colorado Springs, CO Real Estate Forecast.
Colorado Springs Real Estate Market Trends
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 $15,000 (5%) in median home sales and a -3% drop in median rent per month over the past year.
The average price per square foot for this same period rose to $206, up from $197. Trulia has 2,539 resale and new homes for sale in Colorado Springs, CO, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Colorado Springs for May 1 to Jul 31 was $305,000 based on 3,329 home sales. Average price per square foot for Colorado Springs was $206, an increase of 5% compared to the same period last year. The median rent per month for apartments in Colorado Springs for Jul 6 to Aug 6 was $1,650.
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 25 days. The average sale price of a home in Colorado Springs was $315K last month, up 6.8% since last year.
The average sale price per square foot in Colorado Springs is $144, up 5.1% since last year. Homes typically receive offers. Homes in the Colorado Springs housing market sell for around list price and go pending in around 25 days. Hot homes for sale in Colorado Springs, CO can sell for about 2% above list price and go pending in around 4 days.
Downtown Colorado Springs Housing Market Trend 2019
As per Redfin.com’s data, the Downtown Colorado Springs housing market is somewhat competitive. The average sale price of a home in Downtown Colorado Springs was $364K last month, up 23.4% since last year. The average sale price per square foot in Downtown Colorado Springs is $219, up 7.1% since last year.
Some homes get multiple offers. Homes in the Downtown Colorado Springs housing market sell for about 1% below list price and go pending in around 59 days. Hot homes for sale in Downtown Colorado Springs can sell for around list price and go pending in around 23 days.
Colorado Springs Housing Market Statistics
|Median Sales Price||$305,000 (On Trulia)|
|Price Per Square Ft||$206|
|Median Rent Per Month||$1,650|
|Median Household Income||$55,202|
|Transportation||97% people commute by car; 0% commute by public transportation|
There are 2,949 homes for sale in Colorado Springs, CO, ranging from $29.9K to $9.8M on Realtor.com. 348 of which were newly listed within the last week. Additionally, there are 670 Colorado Springs rental properties for sale, with a range of $335to $7.5K per month. In July 2019 the housing market in Colorado Springs, CO was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In July 2019, the median list price of homes in Colorado Springs, CO was $337K, trending up 7% year-over-year. The median listing price per square foot was $146. The median sale price was $315K. On average, homes in Colorado Springs, CO sell after 42 days on the market. The trend for median days on market in Colorado Springs, CO is flat since last month, and slightly down since last year.
The median list price in Colorado Springs, CO is $499,900 on Movoto.com. The median list price in Colorado Springs went down 4% from July to August. Colorado Springs’s home resale inventories is 420, which increased 5 percent since July 2019. The median list price per square foot in Colorado Springs is $158. July 2019 was $159. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.
Colorado Springs, CO Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Colorado Springs, CO is $299,678, which indicates that home prices in Colorado Springs are above the national average for all cities and towns in the United States. Single-family detached homes are the single most common housing type in Colorado Springs, accounting for 61.93% of the city’s housing units.
Three and four bedroom dwellings are the most common building size and type in Colorado Springs single-family detached homes. Other types of housing that are prevalent in Colorado Springs include large apartment complexes or high rise apartments, row houses and a few duplexes. The city has a mixture of owners and renters, with 57.72% owning and 42.28% renting.
Currently, there are 1,612 single family homes for sale in Colorado Springs, CO on Zillow. Additionally, there are 412 single family homes for rent in Colorado Springs, CO. Under potential listings, there are about 0 Foreclosed and 207 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Colorado Springs, CO Foreclosures And Bank Owned Homes 2019
As per Zillow’s data, 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%.
|Foreclosures in Colorado Springs||414|
|Homes for Sale in Colorado Springs||1,306 (RealtyTrac)|
|Median List Price||$315,900 (0% ⇑ vs Jun 2018)|
There are currently 414 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 1,306. In July 2019, the number of properties that received a foreclosure filing in Colorado Springs, CO was 59% higher than the previous month and 4% lower than the same time last year.
Best Places To Buy Real Estate In Colorado Springs, CO
If you are looking to buy real estate in Colorado Springs, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Colorado Springs real estate and you should be able flip it for a lump sum profit.
When looking to invest in Colorado Springs real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Colorado Springs investment property should be low. The neighborhoods in Colorado Springs must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 72 neighborhoods in Colorado Springs. There are 123 elementary schools, 59 middle schools, 52 high schools and 32 private & charter schools.
If you are a real estate investor, Colorado Springs has a record of being one of the best long term real estate investments in the country. Colorado Springs real estate has continued to appreciate in value faster than most communities. This is a pretty good sign for the future of real estate investment in Colorado Springs.
Some of the best neighborhoods in Colorado Springs, Colorado are Stetson Hills, Village Seven and Wolf Ranch. Broadmoor has a median listing price of $620K, making it the most expensive neighborhood. Park Hill is the most affordable neighborhood in Colorado Springs, with a median listing price of $233,000.
Here are the 10 best neighborhoods in Colorado Springs to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Titus Blvd / Harr Ave
Route 115 / Turkey Canyon Ranch Rd
Black Forest Hwy / Baker Rd
N El Paso St / E Espanola St
N Nevada Ave / E Fontanero St
N Union Blvd / E Dale St
S 26th St / Westend Ave
E Madison St / Templeton Gap Rd
W Colorado Ave / S Limit St
Should You Invest In Colorado Springs Real Estate In 2019?
Is it worth buying a house in Colorado Springs, CO? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Colorado Springs is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Colorado Springs housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Colorado Springs but we have collected ten evidence based positive things for those who are keen to invest in the Colorado Springs real estate in 2019.
Investing in Colorado Springs real estate will fetch you good returns in the long term as the home prices in Colorado Springs have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Colorado Springs real estate market which can help investors who are keen to buy an investment property in this city.
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 Real Estate Investment
Maybe you have done a bit of real estate investing in Colorado Springs, CO but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Colorado Springs real estate investment opportunity would be a key to your success. If you invest wisely in Colorado Springs real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Colorado Springs investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Colorado Springs, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy 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 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.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Colorado Springs, CO is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Colorado Springs real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate 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 may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*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
Landlord friendly https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
http://www.cpr.org/news/story/move-over-denver-colorado-springs-might-have-the-hottest-housing-market – also reference for Technology and affordability intersection
Low property taxes https://denver.cbslocal.com/2018/02/27/colorado-low-property-taxes
Housing Market Data, Trends & Statistics