Planning to buy or sell a home in Colorado Springs, CO? It’s important to understand the housing market and average home prices in Colorado Springs before making a move. Home prices provide crucial information about the health of the housing market.
For home buyers, average prices can help them make informed decisions about finding a home that meets their needs. For sellers, understanding home prices can help them set a competitive asking price.
As of early 2023, the Colorado Springs market is experiencing an increase in inventory and a decline in sales prices. So, what do you need to know before entering the market? In this post, our team at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team will discuss home prices in Colorado Springs and what you should know before buying or selling a home.
Factors That Affect Home Prices in Colorado Springs
First, it’s important to note which factors can affect average home prices in Colorado Springs. Several of the top factors include:
- Economic conditions. Rising interest rates, inflation, recession, and other economic challenges make buying a home unaffordable for many buyers and often lead to home sellers lowering their asking prices.
- Demographic trends. Age, income, education level, and family size affect an area’s home prices. For example, as people reach retirement age, they may want to live in smaller homes or senior communities. As demand for these types of homes rises, so do prices.
- Availability of housing. Prices in the market are determined by supply and demand. Low supply coupled with high demand will lead to higher home prices. If there is a large supply but little demand, it leads to lower prices.
- Interest rates. When interest rates are high, it makes mortgages more expensive. As a result, home buyers, particularly first-time buyers, struggle to afford homes. This leads to sellers lowering asking prices to compensate for the higher interest rates.
- Seasonal trends. Many home sellers list their homes on the market during spring or summer when buyers are more active. Increased demand causes home prices to rise. In contrast, the colder months generally see less demand and lower prices.
Average Home Prices in Colorado Springs
In the past few years, the Colorado Springs housing market was generally considered a seller’s market, with high demand and high prices. But currently, the area has been experiencing a slowing housing market as buyers and sellers grapple with rising interest rates and high inflation.
According to many real estate experts, this shift has brought the market back to an equilibrium. This balanced market is better news for home buyers, who now have a greater supply of homes to choose from. However, the market conditions aren’t quite a buyer’s market.
Overall, the market is still fairly competitive. In early 2023, the average sales price for a home in Colorado Springs was $519,861, up 2.4% from 2022. Similarly, the median sales price was $445,000, a slight decrease from the previous year.
In addition, the supply of homes has increased. In February 2022, there were a little less than 500 homes listed for sale. In February 2023, the inventory rose to a little over 1,400 homes on the market.
What to Consider When Buying or Selling a Home in Colorado Springs
So, what can home buyers and sellers do to navigate the current real estate market? If you’re selling a home, you might need to prepare for a longer sale. Keep in mind that in a balanced market, it isn’t necessarily a bad sign if your home stays on the market for a few weeks.
You may also need to lower the asking price of your home to attract home buyers, who are already facing more expensive mortgage payments.
If you’re buying a home, you might expect less competition from other buyers, as high interest rates keep many people out of the market. Another benefit of fewer buyers is that you have a better chance of the home seller accepting your initial offer.
This is because sellers know there’s a greater supply of homes and not as many buyers in the market. As a result, they may be more willing to negotiate or agree to concessions to get a deal.
Of course, it’s critical to work with an experienced realtor in Colorado Springs who can evaluate your situation and guide you through the current market conditions. That way, you can get the best possible deal when buying or selling a home.
Barb Schlinker Will Get You Your Home Value for Free!
If you need to buy or sell a home in Colorado Springs, Your Home Sold Guaranteed Realty - Barb Has the Buyers Team can help. Our real estate team has been serving the area for years and has developed a reputation as one of the best realtors.
We have in-depth knowledge of the historical market trends and average home prices in Colorado Springs. On top of that, we have thousands of five-star reviews from clients who love working with us because of our commitment to customer service, communication skills, and unique buyer and seller guarantees.
This includes our Guaranteed Sale Program for sellers, which ensures your home sells within your desired time frame. If it doesn’t, we buy it ourselves.
For buyers, we offer our Buyer Satisfaction Guarantee. With this program, we’ll buy your home back if you realize it isn’t the right fit for you. That way, you can truly be confident in your purchase decision.
To learn more about working with our team, give us a call at 719-301-1802 or fill out the form below for more information.
