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olorado Springs real estate prices reached a new record high in June, with the median price for a single-family home exceeding $500,000. This milestone surpasses last summer's previous record of $499,000, according to the Pikes Peak Association of Realtors. While the increase may seem modest at $1,000, it represents an important psychological barrier for many homebuyers.

    Pikes Peak Association of Realtors President Windy Bailey notes that this price point perpetuates a perception of Colorado Springs as one of the most unaffordable areas to live in the country. However, other Front Range cities are even more expensive, with Boulder's median home price consistently above $900,000 and Fort Collins reaching $585,000.

    The high prices in Colorado Springs persist despite an increase in available homes on the market. In June, there were 4,055 houses for sale in the Pikes Peak region, the highest number since summer 2014. Bailey attributes the rapid price growth during the COVID pandemic to increased demand and low mortgage interest rates, which have since slowed but remain higher than before.

    The current housing market dynamics leave many buyers struggling to enter the market. "First-time homebuyers are unable to afford the monthly payments due to high interest rates at this price point," Bailey said. Meanwhile, homes priced above $700,000 are selling more quickly than starter homes, which are waiting longer to be sold.

    The state legislature passed a bill aimed at incentivizing the construction of multi-unit housing options for purchase, such as condos. House Bill 1272 reduces the number of lawsuits against builders over alleged construction errors, but Bailey considers it a "tiny win." She believes more needs to be done to address the shortage of entry-level homes and their appreciation in value.