The Colorado Springs housing market has been a topic of intense interest for both buyers and sellers in recent months. With shifting economic conditions, changing inventory levels, and fluctuating mortgage rates, many are wondering: Are Colorado Springs home prices going down? To answer this question, we need to take a close look at recent data, current trends, and expert predictions for the future of this dynamic market.
In this blog post, Colorado Springs real estate expert Barb Schlinker discusses the current state of home prices in Colorado Springs and what potential buyers and sellers can expect in the near future.
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Key Takeaways:
- Colorado Springs home prices increased 6.6% in July 2024, reaching a median sold price of $519,133, despite earlier signs of cooling.
- The market is transitioning to a more balanced state, with increased inventory giving buyers more options and negotiating power.
- Price trends vary significantly by home size, with larger homes seeing the biggest increases, while market performance outpaces most nearby areas.
- Factors influencing the market include increased inventory, rising mortgage rates, new construction, and local economic conditions.
- For personalized guidance in this complex market, expert assistance from a local realtor like Barb Schlinker is invaluable for both buyers and sellers.
Current Market Conditions:
As of July 2024, the Colorado Springs housing market data presents a complex picture. While earlier data suggested a downward trend, the most recent figures indicate a potential shift. Let’s break down the key aspects:
1. Median Home Prices:
The median home sold price in Colorado Springs was $519,133 in July 2024, marking a significant 6.6% increase from the previous month. This recent uptick contrasts with earlier reports of a year-over-year decline, suggesting a possible market rebound.
2. Listing vs. Selling Prices:
In June 2024, the median listing home price was $480,000, trending down 4% year-over-year. However, homes were selling for a median price of $483,500, slightly above the listing price. This indicates that while sellers may be listing conservatively, buyer demand is pushing actual sale prices higher.
3. Price per Square Foot:
The median listing home price per square foot was $223, providing a stable metric for comparing property values across different home sizes.
4. Days on Market:
Homes in Colorado Springs are selling after an average of 31 days on the market. This figure has remained relatively stable month-over-month but has seen a slight increase compared to the previous year.
5. Sale-to-List Price Ratio:
Properties in Colorado Springs sold for an average of 1.29% below the asking price in June 2024. This suggests that while sellers are not always getting their full asking price, the discounts are relatively minor.
Barb Schlinker, Colorado Springs real estate expert, summarizes the current market situation:
“The Colorado Springs housing market is showing resilience and adaptability. While we’ve seen some cooling compared to the frenzied pace of recent years, the latest data suggests a market that’s finding its balance. Buyers are gaining more options with increased inventory, but well-priced homes in desirable areas are still commanding strong prices. It’s a market that rewards both informed buyers and strategic sellers.”
Factors Influencing the Market:
Several key factors are currently shaping the Colorado Springs housing market:
1. Increased Inventory:
There are currently 4,036 homes for sale in Colorado Springs, ranging from $17,000 to $36.3 million. This increased supply has shifted some power to buyers, creating a more balanced market compared to the seller’s market of recent years.
2. Mortgage Rates:
Rising mortgage rates have impacted affordability, potentially cooling demand and contributing to the earlier observed price decreases. However, the market appears to be adapting to this new normal.
3. New Construction:
Ongoing new home construction has contributed to the increased inventory, providing more options for buyers but also potentially putting downward pressure on existing home prices.
4. Local Economic Conditions:
Colorado Springs’ diverse economy, bolstered by sectors like technology, healthcare, and military, continues to attract new residents, supporting housing demand.
5. Environmental Considerations:
The area’s high risk of drought could be a long-term factor affecting property values and desirability.
Price Trends by Home Size:
Interestingly, price trends vary significantly depending on the size of the home:
– 2-bedroom homes: Increased by 7.8% month-over-month
– 3-bedroom homes: Decreased by 5.0%
– 4-bedroom homes: Increased by 8.7%
– 5+ bedroom homes: Increased by 10.3%
This variation suggests that market dynamics differ across housing segments, with larger homes seeing the most significant price increases.
Comparison to Nearby Cities:
When compared to neighboring areas, Colorado Springs shows strong performance:
- Colorado Springs: 6.6% price increase
- Pikes Peak: 5.9% increase
- Cheyenne Mountain: 4.3% increase
- Elsmere: 3.7% increase
- Manitou Springs: 28.7% decrease
Colorado Springs outperformed most nearby areas in terms of price appreciation, suggesting localized factors are influencing its market positively.
Future Predictions:
While it’s challenging to predict future market movements with certainty, several indicators suggest what we might expect:
1. Stabilizing Prices:
The recent uptick in median sold prices could indicate that the market is finding a new equilibrium after a period of adjustment.
2. Continued Buyer Opportunity:
With Colorado Springs currently classified as a buyer’s market, those looking to purchase may continue to find favorable conditions, especially compared to the highly competitive seller’s market of recent years.
3. Seasonal Variations:
As we move into fall and winter, we may see typical seasonal slowdowns in activity and potentially in price growth.
4. Interest Rate Influence:
Future changes in mortgage rates will play a crucial role in determining affordability and, consequently, demand and prices.
5. Economic Factors:
The overall health of the local and national economy will continue to influence the housing market. Any significant changes in employment rates or economic growth could impact housing demand and prices.
“Now that more homes on the market, you have to be the best available home on the market to compete to get the buyers that can afford homes right now… You have to be prepared to be the best home on the market, and that’s absolutely what we help our home sellers do every day.”
Considerations for Buyers and Sellers:
For Buyers:
- The current market offers more choice and negotiating power than in recent years.
- Consider the long-term value of properties, especially in light of potential environmental factors like drought risk.
- Be prepared to act decisively on well-priced properties, as the market is showing signs of strengthening.
For Sellers:
- Realistic pricing is key. While the market is strengthening, buyers remain price-sensitive.
- Highlight unique features of your property, as different housing segments are performing differently.
- Be prepared for potentially longer selling times compared to the peak of the seller’s market.
Your Next Steps…
Call Barb Schlinker to Help Navigate the Shifting Tides of Colorado Springs Real Estate
So, are Colorado Springs home prices going down? The answer is not a simple yes or no. While we saw some cooling earlier in the year, recent data suggests a potential turnaround, with prices showing resilience and even growth in certain segments. The market appears to be finding a new balance, offering opportunities for both buyers and sellers.
As always in real estate, local knowledge and up-to-date information are crucial. Whether you’re looking to buy or sell in Colorado Springs, working with a knowledgeable local real estate professional can help you navigate these complex market conditions and make informed decisions.
Why Barb Schlinker is Your Go-To Expert in Colorado Springs Real Estate
For the most current advice and insights tailored to your specific situation in the Colorado Springs real estate market, don’t hesitate to reach out to Barb Schlinker. As a seasoned real estate expert in Colorado Springs with a background as a Navy Veteran, author, pilot, and businesswoman, Barb brings a wealth of experience to every transaction. The real estate professionals at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team are known for selling homes 60% faster and for 8.1% more money than the average.
Barb’s expertise isn’t just limited to Colorado Springs proper. Her team covers a wide range of areas including Flying Horse, Tall Pines Ranch, Woodmoor, Peyton, Fountain, Castle Rock, and many others. This broad coverage ensures that whether you’re looking to buy or sell in the city or surrounding areas, Barb has the local knowledge you need.
Barb hosts a weekly radio show, “Your Real Estate Voice,” where she provides valuable information about buying and selling homes. This commitment to educating the public demonstrates her deep understanding of the market dynamics.
For personalized guidance based on the very latest market data and trends, call Barb Schlinker at 719-301-1802. With her team’s proven track record and risk-free guarantees, you can trust that you’re in good hands whether you’re navigating this complex market as a buyer or a seller. Don’t just make a move in the Colorado Springs real estate market – make an informed one with Barb Schlinker’s expert assistance.
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