The first-quarter Metrostudy data for the Colorado Springs housing market shows a year-over-year decline in sales and decline in quarterly starts. Existing home sales declined slightly year-over-year from 2,872 to 2,507 in the first-quarter. In 4Q13, existing home closings were up just about 250 from first-quarter closings. New-home sales declined slightly as well from 470 in 1Q13 to 430 in 1Q14. New home sales peaked in the market in the third-quarter of 2013 for the last year with 634 closings.
Existing homes in the market have not experienced significant price appreciation, and the median closing price has dropped in the last year. The median price for existing homes in the market was $182,100 in the first-quarter, up from just $181,700 year-over-year and down from $185,400 in the previous quarter. New-home sales have experienced far more significant rise in price with no relief in the first-quarter. Year-over-year the median closing price increased from $269,800 to $294,500 in the first-quarter. The average price per square foot has also been steadier in the existing home sales market than for new homes. Existing homes had a median price per square foot at $114, up from $101 in 1Q13 but down from $119 per square foot in the third-quarter. New homes experienced a jump in the price per square foot from $129 in 1Q13 to $137 in 1Q14.
Starts are also down in the Colorado Springs market. Quarterly starts fell from 550 to 489 year-over-year. Annual starts are up slightly, however, from 2,279 in 1Q13 to 2,402 in 1Q14. Future inventory hit 78,206 for the market in the first-quarter, up from 78,151 in the fourth-quarter and from 79,070 in 1Q13. Total housing supply for the market was 6.9 months in the first-quarter, down from 7.1 in 1Q13. Finally, Vacant Developed Lot (VDL) supply was 21.5 months in the first-quarter down from 23.6 year-over-year.
With an increase in annual starts and decrease in both VDL and housing supply, the Colorado Springs market can expect better sales in the second and third-quarter than experienced at the start of 2014. Based on the price appreciation of new homes, however, the new-home market will suffer a lack of affordability for the first-time homebuyer.
Learn more about markets featured in this article: Colorado Springs, CO.