Colorado Springs housing prices set records for the fifth month in a row in June. While the median price of a single-family home still sits nearly $100,000 less than in metro Denver, industry pros are noticing the city is increasingly pricing people out.

According to data from the Pikes Peak Association of Realtors, the median home price in the Springs rose to $450,000 in June, up from $432,000 a month earlier. Houses are also staying on the market for an average of nine days, half the time than last year.  

That means it’s a great market for sellers, with homes usually selling for well over their asking prices. Agents say it can be difficult to gauge how much to tell clients bid over the asking price since at times the final sales price is so much higher than expected.

Dirk Draper, President and CEO of the Colorado Springs Chamber of Commerce, said the status as an “unaffordable city” is a relatively new one for the Springs and it’s having negative ripple effects across the local economy, especially as businesses work to recruit talent.

Even though there are some bright spots in the number of new homes being built this year, builders rarely have incentives to build starter homes for first-time buyers. Changing those incentives is a complex problem that will require multiple solutions from local workforce development, to possibly changing state regulations for condo developers.

While prices are on the rise, compared to the metro Denver area, Colorado Springs housing costs are certainly more manageable. If you’re interested in checking out this popular area, contact Metrowest today – we’d love to show you around!