2013 Annual

Colorado Springs Metro

Residential Real Estate Review

Market Overview

In 2013 the residential real estate market in the Pikes

Peak Region had an impressive year. The local market

did not suffer as much through The Great Recession

as many markets around the country; values locally

dropped 17% vs 50%+ in other markets. This past

year market values and sales units were strong, while

the distressed sales market (short sales, foreclosures)

all but dried-up. As has been the case for nearly 2

years, inventory levels remain low and have had a

strong influence on prices increasing, even forcing

some buyers to delay purchases.

Over the last quarter, the local market cooled down

significantly with the likely culprits being lack of buyer

confidence due to concerns over the federal financial

deadlock and individuals not knowing the impacts of

the new healthcare system. This lack of confidence

showed itself as under contracts during the 4th

Quarter dropped by 14% (612 units).

Residential real estate in the Colorado Springs metro

area is set-up to have another strong year in 2014.

Combine with the fact the market is trending up, our

area is attractive with a stellar quality of life, excellent

K-12 schools, fine higher education institutions

including high growth at UCCS, leading industry

sectors in space/amateur sports/homeland security/

mining, and world-class recreational opportunities.

The Pikes Peak region will continue to be a place

where families and professionals choose to live.

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

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10,795

9,147

8,439 8,185 8,745

8,339

9,995

11,911

13,124

11,746

10,204

Annual Sales

The number of sold units is always a great barometer to gauge the health of a market. For the size of our

metro area, the 10,000 unit barrier is healthy. In 2013 we had an 18% jump in units sold and we expect the

upcoming year to nudge above 11,000.

Annual Data

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Active Listings

0.0

1.0

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8.0

9.0

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4.1

4.7

6.3

7.7

7.0

8.8

7.6

5.4

3.9

4.4

5.1

Annual AverageMonths of Inventory

Inventory levels are determined by dividing the number of homes sold by the number of active listings. Many

economists say a balanced market is 6.0 months. Also, inventory levels are often an early predictor of what is

to come in a real estate market.

The graph below shows the number of current active listings on the market for the same period over the

past 10 years. By seeing 10 years of data you can better judge the significance of the number and the state of

the current market.

Annual Data

The above chart shows the annual average & median sales prices for the past decade. Sales prices are the

true “score” of the market. All other statistics often influence price, but not always. You can really see how

the market has steadily improved since 2011.

This is new data we’ve been tracking this year. By tracking the number of under contracts each month, it

allows us to watch the immediate performance of the market and forecast what lies ahead in the next

60-90 days. Most under contract properties will close over the next 30-60 days.

$150,000

$170,000

$190,000

$210,000

$230,000

$250,000

$270,000

$290,000

20132012201120102009200820072006200520042003

Average

Median

Annual Sales Prices

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600

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1000

1200

1400

Dec-13Dec-12Dec-11Dec-10Dec-09

Under Contract

Annual Data

The number of foreclosure starts is a reflection of many factors including: current economic health, jobs, cost

of living and home prices. Additionally, when a home is sold as a foreclosure or short sale it is often at a

discount which then negatively impacts overall home values .

The building of new homes is another good indicator of the market. The building of new homes in the area

has recovered and the current rate of nearly 3000 homes per year is very healthy. There is pent-up demand

for new homes in our market, just trying to keep up with natural population growth. If the real estate market

stays healthy and lending prices stay reasonable, new home sales will likely hit 3500 in 2014.

1861

34543603

4828

5470

4602

3556

2570

228922981954

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Annual Foreclosure Starts

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2000

3000

4000

5000

6000

7000

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

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1999

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1997

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1994

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1991

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Single Family Starts

Annual Update

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

2012201120102009200820072006200520042003

Colorado Paid Storm & Wildfire Claims PayoutHomeowners Insurance Update

This graph shows you the claims paid out by

insurance companies due to wind, hail, tornado

and wildfire. Figures are not yet in for 2013 but

with the Black Forest Fire and the flooding last

year the number will be significant again. Based

on this information and knowing insurance

companies are in the business of making money,

premiums in Colorado will likely increase.

Additionally, many insurance companies are

looking at changing deductibles in the state of Colorado. Some are looking at simply higher deductibles/

premiums, others are looking into rolling-out deductibles similar to areas prone to hurricanes where your

deductible is a % of your total claim. I encourage you to contact your insurance agent to see if any changes

are coming your way. While you are speaking with them, it is always a good idea to make sure your

coverage is appropriate.

Looking Forward

As 2014 begins, the residential real estate market is set-up for another strong year. A few of the real big

drivers for 2014 will continue to be new home construction and the low number of foreclosures. The effect

of these will be continued price appreciation which will minimize many investor purchases. With this said,

those investors seeking long term investments will find residential real estate attractive as the market is

trending up with signs it will continue for some time.

With the vast majority of homes being purchased as principle residences, the local economy will benefit;

New Jobs—New home construction is a huge economic driver for our area. When new homes are built

people are hired to build these homes and to staff the companies who provide the materials.

Seller Relief—Sellers who put off selling because they were upside-down may very well be able to sell

now that their home has increased in value. These sellers are now in a better financial situation.

Buyer Options—Some buyers actually had to put-off buying in 2013 as they could not find what they

wanted. With more listings now coming on the market, these buyers will have success.

We see 2014 being slightly better than last year as units sold will bump-up again, as will sales prices. If our

area brings more employers to town and the military missions remain the same, it could make for a very

special year.

Annual Update

Fun Facts From 2013

Most expensive sale of the year in El Paso County was in Broadmoor Resort for $2,775,000

Most expensive sale of the year in Teller County was north of Woodland Park for $1,430,000

Largest home sold this year in El Paso County was a 16,945 square foot home on Cheyenne Mountain

Largest home sold this year in Teller County was a 7138 square foot home in Pikes Peak Resort

Quick Hits From 2013

Number of Units Sold was up 18% (1648 units more than 2012)

Prices were up about 6% for Average Sales Price and 7% for Median Sales Price

Inventory Levels for the year averaged 4.1 months, compared to 4.7 in 2012

New Home Permits were up 465 units (2855 for 2013)

Foreclosure Starts dropped by nearly 1600 units to 1861, the lowest level in 10 years

Under Contracts were down during the last quarter by nearly 15%

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10%

15%

20%

25%

30%

Chance of Selling

Ever wonder what your chance of selling is? This chart shows the chance of selling in the next 30 days based on your listing price. It is critically important to price your home correctly and have it in move-in condition

when selling if you want to be successful.

Quarterly Pricing Tools

3-Month Area Comparisons for Single Family & Patio Homes

This chart is ideal for helping you determine how your neighborhood is doing. If you are considering

selling your home, this information is just one tool you can reference to assist you with pricing

your home strategically. Call me if you need assistance utilizing this graph.

Area Comparisons for Single Family & Patio Homes

For October 1, 2013 - December 31, 2013

Area Listings Solds DOM Inventory Avg List $ Avg Sales $

Black Forest 81 41 84 5.9 $629,852 $443,583

Briargate 204 137 64 4.5 $350,322 $298,795

Calhan 27 13 210 6.2 $215,784 $154,308

Central 172 151 71 3.4 $245,048 $181,551

Drennan 12 8 85 4.5 $182,942 $111,000

East 163 151 65 3.2 $222,403 $190,963

Ellicott 28 19 100 4.4 $287,820 $219,668

Falcon 33 38 44 2.6 $247,438 $168,383

Falcon North 161 111 99 4.4 $319,692 $265,361

Fountain Valley 376 308 77 3.7 $214,820 $196,212

Manitou 26 11 88 7.1 $473,185 $389,345

Marksheffel 55 35 60 4.7 $308,948 $249,246

Midway 8 2 141 12.0 $182,388 $49,292

Northeast 159 163 65 2.9 $308,318 $236,569

Northgate 104 73 81 4.3 $436,167 $384,186

Northwest 132 95 69 4.2 $432,165 $335,613

Old Colorado City

61 49 68 3.7 $212,870 $213,911

Peyton 26 22 55 3.5 $527,702 $265,418

Powers 221 244 52 2.7 $233,936 $227,547

Rock Creek 7 8 51 n/a $897,257 $266,738

Southeast 124 123 66 3.0 $146,874 $137,544

Southwest 208 121 77 5.2 $731,159 $288,573

Tri Lakes 178 102 99 5.2 $548,273 $417,370

Ute Pass 34 9 63 11.3 $363,406 $148,222

West 38 49 72 2.3 $573,625 $291,336

Divide 57 20 83 8.6 $384,363 $189,451

Woodland Park 80 49 69 4.9 $474,698 $291,425

Quarterly Pricing Tools

List Price Active Listings Solds Days on Market Inventory

Supply Demand Days to Sell Months

Under $75,000 99 52 73 5.7

$75,000 to $99,999 117 75 73 4.7

$100,000 to $124,999 194 113 82 5.2

$125,000 to $149,999 336 207 69 4.9

$150,000 to $174,999 359 257 65 4.2

$175,000 to $199,999 435 240 61 5.4

$200,000 to $224,999 368 203 63 5.4

$225,000 to $249,999 391 232 77 5.1

$250,000 to $274,999 288 169 94 5.1

$275,000 to $299,999 305 138 79 6.6

$300,000 to $324,999 189 73 86 7.8

$325,000 to $349,999 182 91 75 6.0

$350,000 to $374,999 164 74 72 6.6

$375,000 to $399,999 183 63 79 8.7

$400,000 to $424,999 79 30 138 7.9

$425,000 to $449,999 93 23 105 12.1

$450,000 to $474,999 50 20 99 7.5

$475,000 to $499,999 73 28 109 7.8

$500,000 to $549,999 87 36 102 7.3

$550,000 to $599,999 96 20 94 14.4

$600,000 to $649,999 63 17 81 11.1

$650,000 to $699,999 61 13 40 14.1

$700,000 to $749,999 28 8 112 10.5

$750,000 to $799,999 45 5 67 27.0

$800,000 to $849,999 9 1 224 27.0

$850,000 to $899,999 17 1 172 51.0

$900,000 to $949,999 6 1 627 18.0

$950,000 to $999,999 23 1 460 69.0

$1 mil to $1.50 mil 60 8 91 22.5

$1.5 mil to $2.0 mil 25 2 51 37.5

$2.0 mil & above 17 0 n/a n/a

3-Month Price Comparisons for Single Family & Patio Homes

This chart combined with the previous one will help you determine your listing price if you are considering

selling your home. Call me if you need assistance utilizing this graph.

ERA Shields Real Estate

was founded in 1985. The firm is locally owned and comprised of a TEAM of

individual real estate brokers who work together to provide professional real

estate services. Our offices are designed to enhance the synergy amongst our

team as we continue to set the bar for success in real estate.

ERA Shields Real Estate

handles more relocation business than any other firm in the Pikes Peak re-

gion. We are the Principle Broker for Cartus (the world’s largest Relocation

company in the world) which handles nearly 160,000 transfers each year

across 165 countries.

ERA Shields Real Estate

is a Top 25 Broker for ERA Real Estate. ERA Real Estate is a global real estate

franchise with 31,000 sales associates in 1800 offices located in 36 countries.

It is committed to bringing technology and services to its agent base which

allow them to serve their clients in today’s world.

ERA Shields Real Estate

is an award-winning residential real estate company for the Pikes Peak

region. Annually we are recognized locally & nationally for our production

and for our involvement in our community. Our agents are full-time

professionals working to be Your Trusted Advisor.

ERA Shields Real Estate

is committed to the Community. In 2013 we raised over $45,000 for

MDA, volunteered in excess of 2000 hours and have received The

Community of Kindness Award & Circle of Light Award. Our agents are

encouraged to invest in our community.

The data found within the ERA Shields Real Estate Annual Review is based on information from the Pikes Peak REALTOR® Services Corporation

(RSC) or its PPMLS, El Paso CountyTrustee, and Pikes Peak Regional Building Department. This content is deemed reliable; however RSC, PPMLS

and ERA Shields Real Estate do not guarantee its accuracy. Data maintained by RSC does not reflect all real estate activity in the market.