According to a study from Headwaters Economics, a Montana-based research firm, Colorado is one of eight states where half or more of the zip codes have measured double-digit gains in the 12 months through July on the Zillow Home Value Index.

Megan Lawson, an economist with Headwaters who conducted the study, looked at how home prices in every U.S. zip code performed on the index going back to 1996. The period from July 2020, when the housing market was gearing up again, to July 2021 was unrivaled for the size of gains.

Lawson said what stands out in the current surge in home prices compared to earlier ones is how widespread it is and how deeply it has reached remote and rural areas long considered affordable and once insulated from the housing frenzy seen in more populated areas.

The home price gain leader in Colorado is tiny Jaroso in Costilla County, an unincorporated area where home values are up nearly 33%, followed by Phippsburg in Routt County, up 28.5%.

Furthermore, apart from some foothill enclaves, the strongest gains in home prices aren’t coming in metro Denver, but resort areas like Summit and Routt counties, in Colorado Springs and Pueblo, and out in Mesa County on the Western Slope.

Of the 20 zip codes with the highest home price appreciation rates out of the 494 studied in Colorado, five are in Colorado Springs. They include 80915, 80917 and 80907, where the typical home value has risen by a quarter or more in just 12 months, and 80918 and 80903, where home values are up around 23%.

As home prices rise in Colorado Springs, more residents on the south end are searching down in more affordable Pueblo, which saw a 22.4% gain in its home price index in the 81003 zip code.

The fall months tend to bring a seasonal slowdown in the metro area, and although prices are high, they are much more manageable and competitive than earlier this year. Are you looking to be in a new home for the holidays? Give Metrowest a shout today – we’d be happy to discuss your options!