Housing and Rentals

The Pikes Peak Region has been a good place to own a home for much of the past decade. Property values climbed steadily, sellers did little more than plant for-sale signs in their yards, and buyers had ample choices when it came to prices, styles and neighborhoods.

But like many other areas, the region was walloped in the past three years by the national recession; home construction slowed, prices fell, sellers waited months for buyers to come along, and foreclosure filings soared to record levels. A seller’s market became a buyer’s market.

The housing market has shown signs of life in recent months. Yet, experts have said it could stumble a bit over the next few months before a full recovery takes hold. An overview of the market shows:

Prices

Median prices of resale homes reached a peak of $227,000 in July 2007. When the economy slumped, prices drifted downward and only recently began to turn around and show year-over-year gains. By July 2010, median sale prices had hit $209,900 — the highest in two years. Some of the area’s most expensive homes are on Colorado Springs’ southwest and northwest sides, in the historic Old North End north of downtown and in the Tri-Lakes communities north of the Springs. More moderately priced homes can be found in much of the rest of the region; Colorado Springs’ south and southeast sides have some of the area’s most inexpensive housing.

Selection

Buyers have plenty of choice because inventories have risen of late and foreclosed properties are selling at discounted prices. Ranchers are common in central Colorado Springs neighborhoods such as around Wasson High School, while newer homes with a suburban look and feel can be found in Briargate and other north- and northeast-side areas. Downtown has become home to loft living in recent years, while seven-figure mansions can be found around the posh Broadmoor hotel on the southwest side and in northwest Kissing Camels. Mid- and upper six-figure homes can be found on the southwest, northwest and north sides and in the Tri-Lakes communities; starter and first-time move-up homes have been built in areas north, northeast and east of Colorado Springs, along with the city of Fountain to the south.

New vs. resale

Resales dominate the Pikes Peak region’s housing market, but dozens of builders serve the Pikes Peak region, including several local companies. Construction is taking place in upscale Flying Horse on the north, while more moderately priced homes are under way in Wolf Ranch on the city’s far northeast side and the eastside Banning Lewis Ranch. Homes also are being built in Fountain and in unincorporated areas to the northeast, such as Meridian Ranch.

Rental market

About 45,000 apartments are available in the Pikes Peak region; many newer complexes are on the Springs’ north side, while dozens of complexes on the south and southeast sides serve Fort Carson soldiers. Apartments have filled up in recent months; the area’s vacancy rate fell to a nine-year low of 5.8 percent in the second quarter of 2010. Monthly rents averaged about $720 in the second quarter.

HOUSING BY THE NUMBERS IN EL PASO AND TELLER COUNTIES

$209,900: Median single-family-home price in July, up 5.1 percent from a year earlier.

$237,029: Average single-family-home price in July, up 2.4 percent from a year earlier.

713: Number of single-family-home sales in July, down 24.6 percent from a year earlier.

5,955: Supply of single-family homes for sale in July, up 16 percent from a year earlier.

110: Number of single-family-home building permits in July, down 5.2 percent from a year earlier.

5.8 percent: Apartment vacancy rate in second quarter, down from 9.8 percent a year earlier.

$719.22: Average monthly apartment rent in Colorado Springs during second quarter, up from $717.65 a year earlier.

Sources: Pikes Peak Association of Realtors; Pikes Peak Regional Building Department; Colorado Division of Housing.

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