This year is shaping up to be something special, if January home sales in Colorado Springs are any indication. January is historically our weakest sales month, but compared to last year, January 2013 was very good.
- Sales were up 39%
- Median Price was up 19%
- Average (mean) price was up 11%
- Inventory of unsold homes was down 7%
- Detached single family home permits were up 109.4%
What is causing this? There are a number of factors.
- Interest rates remain in the low to mid 3’s, historically low numbers
- While unemployment is still 9% in Colorado Springs, returning troops at Ft Carson are helping
- Pent up demand from people who have been waiting for the right opportunity
- Rising rents, making the buy vs rent decision much easier
- Investors taking advantage of rising rents and low cost financing
- Low inventory is forcing more people to build to get what they want, and it typically costs more, driving up prices
- Fewer foreclosure and distressed properties are helping prices firm up
- More certainty after a hard fought presidential election
I personally don’t believe that sales will continue at this torrid rate, nor will prices for the whole year reflect these kinds of numbers, but I do see sales overall increasing another 10% over 2012 (which was 8.1% over 2011), and prices will likely rise 7% for the year, maybe more. The average price for all of 2012 was up 5.8% over 2011, so this isn’t much of a stretch.
There are always clouds on the horizon. The things that could throw all of this off kilter would be:
- A major war breaking out anywhere
- The dollar plunging sending oil and interest rates skyrocketing
- No budget deal, forcing a government shutdown
- A major employer leaving the area
- Drought causing water shortages and water tap moratoriums
My bet is against these things happening, but you never know.
So if 2013 looks like the right time for you move, whether it be up, down, or into something new, give me (Rick Van Wieren) a call at 719-331-7675 and lets talk about your needs!