Colorado Springs has plenty of company when it comes to soaring housing costs.
prices in the Springs rose by a robust 13.6% in the third quarter when compared with the same period last year, pushing the local median home price to $371,900, according to a National Association of Realtors
report released Thursday.
But while Colorado Springs saw prices climb, so did other metro areas included in the association’s third- quarter report. What’s more, nearly two-thirds of the areas tracked by the association — 117 out of 181 — saw double-digit price gains.
A shortage of homes listed for sale and historically low mortgage rates that have fueled buyer demand have combined to push up prices, the association said.
On Thursday, 30-year, fixed-rate loans averaged 2.84% nationally — up from 2.78% last week, but still down by about a full percentage point from a year ago, according to mortgage buyer Freddie Mac.
But even as borrowing costs remain low, rising prices continue to take a toll on many buyers — especially first-timers — and make it difficult for them to afford a home, Lawrence Yun, the association’s chief economist, said in a news release.
The monthly mortgage payment on a typical existing single-family home that’s financed with a 30-year, fixed-rate loan and 20% down payment increased to $1,059 in the third quarter, the association said in its report. That’s up from $1,019 in the second quarter and $1,032 a year ago.
Households needed just over $50,800 in annual income to comfortably afford mortgage payments on a typical existing single-family home, up from $48,912 in the second quarter and $49,536 during the third quarter of last year, the association said.
“As home prices increase both too quickly and too significantly, first-time buyers will increasingly face difficulty in coming up with a down payment,”
“Transforming raw land into developable lots and new supply are clearly needed to help tame the home price growth.”
Other takeaways from the association’s report:
- Metro areas with the top five percentage gains in prices were Bridgeport, Conn., 27.3%; Crestview, Fla., 27.1%; Pittsfield, Mass., 26.9%; Kingston, N.Y., and Atlantic City, N.J., tied at 21.5%; and Boise, Idaho, and Wilmington, N.C., tied at 20.6%. Colorado Springs’ 13.6% gain was the 33rd highest.
- The Springs’ $371,900 median price ranked as the 27th most expensive among the report’s 181 metro areas. Boulder’s median of $673,400 was the seventh priciest, while Denver was 13th highest with a median of $506,000. Topping the list were San Jose, Calif., $1.4 million; San Francisco, $1.125 million; Anaheim, Calif., $910,000; Honolulu, $866,200; and San Diego, $729,000.
- Nationwide, the median existing single-family home price increased to $313,500, up 12% on a year-over-year basis and four times higher than the median family income, which grew at 2.9%. The country’s four major regions saw double-digit price gains — 13.7% in the West, 13.3% in the Northeast, 11.4% in the South and 11.1% in the Midwest.
- At the end of the third quarter, 1.47 million existing homes were available for sale nationwide, 19.2% lower than a year earlier. In September, housing inventory totals equaled a 2.7-month supply, based at the current pace of sales.