Hey there! Welcome back to My Front Range Living. We’ve got your latest scoop on the Colorado Springs housing market for April 2024. But first, let me share some exciting news—I’ve just returned from the National Association of Realtors (NAR) legislative session in Washington, D.C. I’ve gathered some valuable insights, which we’ll be sharing in upcoming articles. Stay tuned!
What’s New in the Colorado Springs Housing Market?
If you’re considering buying a home in Colorado Springs or just want a clearer picture of the current housing market, this is for you. As always, we focus on single-family homes, which are the primary interest for most of our viewers. This information is based on the Pikes Peak MLS, with specific details about El Paso County and Colorado Springs at the end. Let’s dive in!
Inventory and Listings
New listings have seen an uptick. In April 2024, there were 1,666 new listings, a substantial increase from 1,337 in March and 1,495 in April 2023. This growth—11.4% year-over-year—suggests a rising inventory. It will be interesting to see how this impacts the market as we move forward.
Sales and Prices
Sales have also seen some movement. In April, there were 959 sales, up slightly from 941 in March, but down from 1,090 in April last year. The average sales price, however, has soared to $564,715 from $527,629 in March. This is a notable jump from $532,200 in April 2023, representing an increase of 6.%. The rising prices indicate that home values in Colorado Springs continue to climb, albeit not at the breakneck speeds of a few years ago. This steady appreciation is good news for homeowners, though it poses challenges for buyers in terms of affordability.
Median Sales Price
The median sales price follows a similar trend, increasing from $470,000 in March to $490,000 in April, up from $459,000 in April 2023. These figures highlight a persistent upward trend in property values in the area.
Total Inventory
As of April, there were 2,139 single-family homes listed in the Pikes Peak MLS, up from 1,868 in March and significantly higher than 1,590 in April 2023. Please remember, a balanced market has about 6 month worth of inventory and we are currently sitting at 2.2 months.
El Paso County and Colorado Springs Specifics
Now, let’s zero in on El Paso County and Colorado Springs. On May 10th, we examined homes with at least three bedrooms, two bathrooms, and a two-car garage, priced at $565,000 or less. This price point is just slightly above the average sales price.
El Paso County Inventory
In El Paso County, there are 680 homes meeting this criterion. This provides a more refined picture of the market, particularly for those targeting specific features in their future homes.
Colorado Springs Inventory
In Colorado Springs itself, there are 538 homes within the same criteria. While the overall inventory seems decent, these figures suggest a relatively lean market, especially when focusing on specific home features.
Days on Market
Days on market have decreased dramatically, from 56 in March to just 40 in April. This indicates that well-priced homes are moving quickly, often within a day, and frequently attracting multiple offers. Homes not priced competitively, however, tend to linger on the market.
THE IMPORTANCE OF DAYS ON MARKET:
- Indicator of Market Activity: The DOM provides valuable insight into the pace of the real estate market. A shorter DOM typically indicates high demand and a seller’s market, where homes are selling quickly. Conversely, a longer DOM suggests a slower market where the buyers may have more opportunities.
- Seller’s Expectations: For sellers, the DOM can help set realistic expectations regarding how long their home might take to sell. Understanding the average DOM in their area and price range allows sellers to adjust their strategies accordingly, whether it’s pricing competitively, improving the home’s appeal, or adjusting marketing efforts.
- Buyer’s Perception: Buyers often interpret the DOM as an indication of a property’s desirability and potential negotiation leverage. A property that has been on the market for an extended period may signal to buyers that there could be room for negotiation or that there may be underlying issues with the property.
- Market Trends: Tracking changes in the DOM over time provides valuable insights into market trends. For example, a decreasing DOM may indicate increasing demand or a tightening market, while an increasing DOM could signal a shift towards a buyer’s market or potential economic factors affecting buyer activity.
- Price Adjustments: If a property has been on the market for an extended period without significant interest, sellers may need to consider price adjustments to attract buyers. Monitoring the DOM allows sellers to make informed decisions about when and how to adjust pricing to stay competitive in the market.
- Property Perception: A prolonged DOM can sometimes lead to negative perceptions of a property, regardless of its actual quality. Buyers may wonder why the property hasn’t sold and may be more hesitant to consider it, potentially leading to further delays in the sales process.
Colorado Springs Housing Market Influences
Mortgage rates, property taxes, and insurance premiums are all affecting affordability. The recent hikes in assessed property values by the El Paso County Assessor have led to higher property taxes, and insurance premiums have risen by an average of 30%. Combined with steady mortgage rates around 6% to 7.25%, these factors are making homeownership more challenging for many buyers.
Conclusion
The Colorado Springs housing market continues to evolve, with shifts in inventory, pricing, and buyer preferences. Whether you’re looking to buy or sell, staying informed with the latest data is key to making well-informed decisions.
To compare last months numbers, click HERE
**Data source: PPMLS
About The Author
The team at My Front Range Living are a group of full time real estate experts serving Colorado Springs, El Paso County and the surrounding areas. Their knowledge of the local community and experience in the industry provide you incomparable value when buying or selling a home. With several years of experience in helping out of state buyers and sellers, they are the go-to team when it comes to relocating and helping Colorado feel like home.
Even if you’re looking for an agent in another city or state, the My Front Range Living team has a network of experts that can connect you with the right professional.
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