U.S. News & World Report ranked Colorado Springs, Colorado, as the fifth-best city to live in the United States in a 2016 survey. Since 2011, Colorado Springs has grown by 13%, making it not only the second-largest city in Colorado, but the 24th fastest-growing city in the United States. The unemployment rate is low at 4%, the median age is 34.1, and the average annual salary is $46,520. These statistics have helped to create a positive environment for a real estate market that favors the seller.

Market Insights

The low cost of living and ample job opportunities in Colorado Springs have attracted a surge in population over the past five years. This has increased the demand for homes, which has driven the average housing cost in Colorado Springs above the national average. The national average for housing cost in 2011 was $170,299, lower than the average in Colorado Springs at $201,743. The lowest point in the national housing market hit the following year at $168,736, yet Colorado Springs was barely affected with an average housing price of $201,079. Both the national average and the average housing cost in Colorado Springs continued to rise over the next three years, and are predicted to be relatively close before the end of 2016.

Colorado Springs is home to a large military population, including four major Air Force installations and one major Army base. Due to the nature of the military, soldiers and airmen typically only stay at a military base for two to four years, frequently moving with their families. This means Colorado Springs sees a large amount of the population leave in the summer once school is out but also experiences a surge of new families looking for homes before the school year begins. This has led to a predictable pattern in the housing market for buyers. Housing prices reach their peak in July, averaging $229,000 as of May 2016, and see their low in the winter months at $215,000 in December. Rental properties, however, maintain an average of $1,300 to $1,350 per month throughout the year.

Property and Transfer Taxes

The state of Colorado has low property taxes, with an average effective rate of 0.63%. This means a homeowner pays, on average, less than 1% of the home’s value in taxes every year. Colorado Springs is in El Paso County, and the average effective property tax rate in El Paso County is less than the state average, coming in at 0.52%. The transfer tax for Colorado is 1 cent/$100 and the transfer fee rate is 0.01%.

Most Expensive Neighborhoods

Colorado Springs has boasted a booming economy over the past 10 years as of 2016, and there has been significant development in the northeastern section of the city. This section also boasts the most expensive neighborhoods.

1. Wolf Ranch is the most expensive neighborhood with the average sales price of a home at $348,091. The average number of days a home stays on the market in Wolf Ranch is 90.

2. Ridgeview is the second most expensive neighborhood and is located south of Briargate and north of Stetson Hills. The average sales price of a home in Ridgeview is $260,851. The average number of days a house stays on the market in Ridgeview is 67.

3. Briargate, located to the west of Wolf Ranch and Highway 21, is the third most expensive neighborhood with an average home sales price of $252,823. The average number of days a home stays on the market is 76.

4. Stetson Hills, located north of the Colorado Springs Airport, is the fourth most expensive neighborhood in Colorado Springs. Stetson Hills has an average sales price of $231,038. The average number of days a home stays on the market in Stetson Hills is 66. Stetson Hills also has the highest number of annual home sales at 20, compared to 19 for Ridgeview and 16 for Wolf Ranch and Briargate.

5. The fifth most expensive neighborhood in Colorado Springs is Village Seven, located west of Stetson Hills. Village Seven’s average sales price is $171,397, and homes stay on the market for an average of 49 days. Village Seven also has the lowest number of annual home sales at six homes.

Top Real Estate Websites

Searching for a home in Colorado Springs can be done through websites from companies such as Trulia Inc. (NYSE: TRLA) at Trulia.com. Trulia provides buyers with market trends for Colorado Springs and is useful for estimating a price range for buying or renting a home, and determining the best time to purchase.

The best website for Colorado Springs real estate is GreatColoradoHomes.com. Not only does Great Colorado Homes provide clients with real estate statistics, it also has listings for homes, detailed information on areas in and around Colorado Springs, and even a blog with information for buyers and sellers.

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