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COLORADO SPRINGS, COLO. -- New reports show more improvement in the housing market both nationally and locally.

According to the Pikes Peak Association of Realtors Colorado Springs home sales in August were up nearly 8 percent from last year.

Homes are also selling faster and at a higher price.

"If you're in the market right now to be a seller or a buyer it's an absolutely perfect time to be there," Ted Bachara, Broker Associate for RE/MAX Properties, said.

With interest rates staying low Bachara said it's still a great time to buy a home.

"They're at 3.25 to 3.5 percent. You can do a 3 percent on a 15 year loan. These are fixed rate loans, the lowest in probably between 50 and 60 years," he said.

Low interest rates mean lower mortgage payments making owning a home more affordable.

"A lot of buyers are buying homes for less than they were paying for rent," Bachara said.

While the last few years have been a buyer's market Bachara said sellers are making a comeback.

"A lot of sellers are starting to get their homes sold where in the past they couldn't sell them because there were too many homes on the market, too much competition, lots of bank owned and short sale properties, and that's gone away," Bachara said.

Bachara added that the inventory in Colorado Springs is around 13 percent lower than last year which is creating a higher demand for good homes.

"With that drop in inventory it's causing the prices to bump."

Whether looking to buy or sell Bachara said it's about playing your cards right.

"Make your offer good. Don't beat the sellers up because if it's priced well somebody else is probably going to be coming in there," he said. "As a seller you want to price your home extremely competitively. You're in a price war as a seller and you're in a beauty contest."

Bachara said homes in the $150,000 to $200,000 range are currently selling the best.

"This is probably the best market we've seen in the last five years, not just locally but historically across the country."

In August homes on the market sold in an average of 74 days, down from 92 days last year.