Is the Colorado Springs Housing Market Poised for Recovery? It was no surprise that scenic Colorado Springs was named the number one “Best big city” to live in by CNN Money, or that Forbes ranked it #3 for the “quickest recovery.”  The latest report on the Colorado Springs area indicates hopeful signs for a near-term recovery in the housing market.  A surge in affordable housing in Colorado Springs has been one catalyst for growth, as well a number of first-time homebuyers taking advantage of the $8,000 Federal Tax Credit.  These factors, along with competitive pricing and record-low mortgage rates, have elevated Colorado Springs housing indicators this fall, an encouraging sign for homebuyers and realtors.

The average sale price for Colorado Springs housing is now $214,848, according to the Pikes Peak Realtor Services Corp.  While this is a 10% decline in price since a year ago, the good news is that sales are up 12% and inventory is down 20%.  Another encouraging sign is the average number of days it takes to sell a home, which is down to 71 days from 95 days this time last year.  Sellers are also getting 97.4% of their asking price, a 7% improvement over September 2008.  Some housing hot spots in the area include High Forest Ranch, Cathedral Pines, Flying Horse, Pine Creek and Briarsgate.

Buyers with good credit continue to get great rates on mortgages, and thanks to an influx of military families and first-time homebuyers, inventories of unsold homes are either flat or declining in many areas.  Add to that some of the lowest prices available in nearly a decade, and you can see why many communities in Colorado Springs are seeing a rebound in home prices.

Many recent Colorado Springs home sales are a result of the impending deadline on the $8,000 Federal tax credit for first-time buyers, which is set to expire on November 30th of this year.  The tax credit has been a tremendously effective marketing tool for moving unsold homes and spurring an uptick in pricing.  For the first time in over a year, people feel that now is a great time to buy a home.

While most homes have experienced at least a 10% decline in value over the past twelve months, and the average can still take 60-90 days, this is a major improvement compared to earlier this year.  The Colorado Springs housing market hasn’t suffered nearly as much as other areas of Colorado, thanks to its strong military presence and a flourishing high-tech sector, and several local companies have recently reported job growth.

For the first time in years, there is room to move up in the Colorado Springs housing market for a reasonable price.  Low interest rates and higher inventories have created a great environment for astute buyers to upgrade to the home of their dreams.