Colorado Springs Home prices (Denver: cul-de-sac, transplants, lawyers)

[Phil P]

Originally Posted by Wittgenstein's Ghost

Rent vs. buy is a complex question. In general, the cheaper the house, the more buying makes sense. However, if we're strictly talking about financial outcomes here, there is a case to be made that buying a house over a certain price point almost never makes sense. A $200,000 house might rent for $1500, but a $600,000 house will not rent for $4500. A million dollar house certainly won't rent for $7500. This diminishing return on assets means that a prospective renter is getting a better deal at each subsequently higher price point than the buyer is. At some point, this tips the scales in favor of the renter. Remember, a renter saves a down payment that can be invested elsewhere and avoids repairs and renovations over the life of the property. Property appreciation rates are typically offset (and usually more than offset) by mortgage interest rates.

That isn't to say that people should never buy expensive houses, but it does mean that doing so is sometimes more a purchase driven by personal reasons rather than financial reasons.

Not only that, the more expensive the home, the fewer the buyers and the more customized it is, meaning you won't capture all that you invested because the new guys are going to want all new lighting and countertops and landscaping...

[Vision67]

Meanwhile, the Realtors Association report also showed:

- In November, home sales totaled 1,196, a 46.8 percent jump over the same month a year earlier. Sales now have risen for 28 consecutive months on a year-over-year basis.

- The median price - or mid-point - of homes sold last month rose to $256,566, an 8 percent increase over the same month in 2015. Prices have climbed each month over the last two years as the demand for homes has picked up.

- Homes sold in November spent an average 39 days on the market before they were purchased; a year earlier, it took 59 days on average for homes to sell.

- The supply of homes listed for sale totaled 1,932 last month, down almost 27 percent over the same month last year. The tight supply - while frustrating for buyers - also has helped to push up prices, real estate agents have said.

Colorado Springs sets another home sales record in 2016 | Colorado Springs Gazette, News

[otowi]

I have a friend who is a realtor and he said this month will be his best month ever.

[Vision67]

That tight supply of listings is congruent with my observations. There are no homes for sale in my neighborhood. I think that is because new houses are still way more expensive than resales. So there is nowhere to go.

That delta used to be about 30%; it's now closer to 100%. Also the new developments have tiny lots. The too big houses are about 10 feet apart and the back yards are about 30 feet deep. That's way too claustrophobic for me.

To see this, go look at "The Farm", a new development in North Cos along Voyager Parkway.

[StarrySkiesAbove]

In my area just east of downtown, there has been almost nothing for sale for months. When a house does come up it goes under contract in under two weeks, some within days and with multiple offers. We have large lots, mature trees and homes are a mix of turn of the century victorians, craftsman bungalows, 40's era tudors and some mid century brick ranches. I think the style of the neighborhood, the big tree lined streets, good sized lots and the central location really drives the demand. If someone is looking for a historic/vintage neighborhood in Colorado Springs, there are not that many of them.

[suaz]

What is your neighborhood called?

[Brill]

I've been house shopping for the past several months. It's definitely slim pickings. Most are under contract within days, some within hours. Stuff goes so fast that if I see something that has been on the market for 2-3 weeks, a red flag goes up wondering if something is wrong with it.

I'm likely going to end up in a townhouse or condo for now.

[juniper johnson]

It took us six months to find a house in the area we were looking in and then we had to buy sight unseen since we were relocating. Even though we had a buyers agent, we ended up finding the house ourselves. Another factor for us is that so many of the houses here (tri-level, raised ranch etc) are just architecturally ugly or have weird, impractical layouts. Seems like the few houses for sale that are more centrally located or downtown are scooped up by flippers who do their formula thing and mark them up $80-100K.

[Vision67]

The Gazette published an update on the Colorado Springs house market:

In December alone, home sales totaled 1,236 or a nearly 12 percent increase on a year-over-basis, the report showed. Monthly sales now have risen for 29 straight months.

- Homes sold in an average of 40 days in December; a year earlier it took an average of 60 days to sell a home.

- The median price for homes sold in December rose to $255,000, up 6.3 percent from the same month a year earlier. Prices have increased for 25 consecutive months on a year-over-year basis.

- The supply of homes for sales dwindled to 1,536 in December, also a record low. D'Alessio said he expects the inventory to gradually rise by early spring.

2016 was another record setter for Colorado Springs home sales | Colorado Springs Gazette, News

[DoodlemomCoS]

This quick turn around inventory is surprising to me in that it continues. It was very hard for us to buy up here from out of state at the end of 2015. I narrowed in on an area and we had to make an offer the week our house came on the market. I saw it pop up on the Internet and made plans for our family to see it in person 3 days later. Whirlwind trip. It was crazy. Only a handful of houses have been for sale in our neighborhood since, and all well over what we paid. Not sure how this continues because of the job situation here.