During its first few months in the U.S., the coronavirus (COVID-19) pandemic had significant effects on the housing market. But fast forward a few months, and business is booming in sectors such as Colorado Springs real estate.
After taking an initial hit between March-April 2020, the Colorado Springs housing market bounced back pretty quickly. In July, the market broke records in terms of demands and activity. This trend has continued to September, where prices took their highest jump in seven years.
Colorado Springs is Booming During COVID-19
Quite recently, home prices in Olympic City USA took their biggest leap in seven years. At just over $342,000, the price is 10 percent higher than the same time last year. According to experts, the value can go even higher when you factor in the cost of new construction builds.
The astounding part? This does not constitute a mere increase of a few thousand dollars, either. It makes the average prices of existing and new units go to a whopping $435,000. This is almost double the price observed in the area half a decade ago.
This particular trend has set Colorado Springs real estate as a seller’s market, where listings are closing at sky-high prices.
The Market Has Seen a Constant Uptick in Prices in the Past
In the past few years, the area has flourished with a consistent increase in prices. In 2019, the median market value for a Colorado Springs home was 24 percent above the rest of the U.S.
But you don’t have to go that far to see the market’s strength. In July 2020, the local market noticed a 13.6 percent increase in its median home value. The prices touched $377,000 at the time.
Around the same time, the average home value went over $427,500 and noted a year-over-year increase of 14.8 percent. This average price also shattered all previous records that were previously set with $401,980 a month ago.
The Area is Observing High Demand With a Tight Inventory
While the prices in the Colorado Springs housing market have touched record high, the inventory itself has dwindled a bit. As more buyers rush towards the goldmine that is Colorado Springs, the competition is only being fueled further. This is causing the real estate value to remain consistent in the face of competition.
The trend is not limited to home prices, but shows in rental listings as well. The median average for single family rental units has increased by 5.5 percent as compared to last year.
According to local experts, this trend may only increase further. But due to the purchasing power of homebuyers in the area, it may not affect home sales or rentals negatively. Since Colorado Springs mainly attracts affluent residents with suitable employment opportunities, the market is set to continue its activity uninterrupted.
This goes on to show that even though COVID-19 affected the Colorado Springs area at first, the storm has passed. With open houses, home listings, and buyer activity back on the market, the region is back to prospering again.
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