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Prices Rose Amid Surge in Colorado Springs Foreclosed Homes

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By : John Cutts    99 or more times read
The increase in number of Colorado Springs foreclosed homes in March did not push down house prices, based on sales data from the Pikes Peak Association of Realtors and local home building associations.

The sales price median for single-family houses increased by 2.6 percent to $189,900 in March this year from the median price in March 2009. It was the fifth consecutive month that the median sales price increased from March 2009.

In El Paso County, where Colorado Springs is the administrative seat, foreclosure postings reached 470, a jump of 22.34 percent from 365 filings in January and up by 25 percent from 376 filings in February, according to a report from the El Paso County Public Trustee.

In the first three months this year, foreclosure postings in El Paso County totaled to 1,211 filings, a decrease from the 1,292 foreclosures filed in the first three months last year. Total annual foreclosures throughout the ten-year period from 1992 never exceeded 1,211 filings.

Just like other housing markets, the increase in home sales in the area was driven by the lower prices of Colorado Springs foreclosed homes and other types of homes, lower mortgage rates and the federal tax credits.

According to analysts, investors consider Colorado Springs as a good investment target because of its strong recovery prospects. The city was even cited as one of the best cities to live in the U.S. in 2006 and in 2009. The economically strong image, however, of Colorado Springs was a bit tainted when the recession forced city officials to cut municipal services like fire and police services and recreational services.

Another factor indicating faster economic recovery in the area is the increase in number of home building permits issued in March in El Paso County. Based on figures from the Pikes Peak Regional Building Department, there were 150 permits issued for the construction of single-family houses in March and the overall total issued for the first three months of this year reached 411.

According to the Housing and Building Association of Colorado Springs, despite strong competition from lower-priced foreclosed homes for sale in Colorado, demand for new homes had an uptick because of the availability of federal tax credits.

Home building is among the major indicators closely watched by economists and analysts. The surge in home construction in the area means that the local housing market is already able to absorb Colorado Springs foreclosed homes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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