What’s Happening in Colorado Springs Real Estate – August 2024 Market Update
The Colorado Springs housing market has been buzzing with activity, and as we take a closer look at the August 2024 numbers, there are several key trends to highlight. Whether you’re a potential homebuyer, seller, or simply curious about the local market, this update offers a valuable snapshot of what’s been going on in the Pikes Peak MLS region, which encompasses not just Colorado Springs but the surrounding areas as well. Let’s dive into the data and uncover what’s really happening in the market.
New Listings: A Slight Decline but Up from Last Year
One of the first things to notice about the August numbers is the slight dip in new listings. In July 2024, we saw 1,640 new homes come onto the market, but by August, that number dropped slightly to 1,605. While this decrease might seem minimal at first glance, it reflects a broader trend of sellers being a bit more cautious as they navigate the complexities of today’s market.
However, compared to August 2023, when there were just 1,407 new listings, we’re actually seeing an improvement. Sellers are more active this year, which can provide some relief for buyers who’ve been searching for more inventory. Still, the month-over-month decrease suggests that many homeowners are holding back, likely due to concerns about rising interest rates and other financial hurdles.
Sales Are Flat Year-Over-Year
When it comes to home sales, the numbers tell an interesting story. Sales were down slightly from 1,127 in July to 1,064 in August 2024. That’s a minor drop, but more importantly, sales are almost flat compared to August of last year, when 1,067 homes were sold.
What does this mean? Well, despite the increase in listings, buyers are not snatching up homes at a faster rate. This could signal that while more homes are available, buyers are being more selective, or perhaps taking their time due to the rising costs of homeownership.
Average and Median Sales Prices: Marginal Decreases
One of the more noticeable changes in the August data is the drop in the average sales price. In July, the average price of a home was $571,100, but that has since dipped to $558,400 in August. That’s a decrease, but not a dramatic one, and it’s still slightly higher than August of last year, where the average price was $553,900.
Similarly, the median sales price followed this trend, falling from $499,900 in July to $490,000 in August. While this drop might raise eyebrows, it’s important to remember that prices are still up from last year’s median of $480,000. The takeaway here is that while prices have softened a bit, they remain relatively strong compared to where they were in 2023.
Active Listings: A Significant Year-Over-Year Increase
Active listings are one of the most crucial indicators of market health, and August saw a noticeable increase. The number of active homes on the market rose slightly from 3,273 in July to 3,320 in August. While this may not seem like a large jump, it’s a big improvement compared to August 2023, when there were only 2,420 active listings.
This increase gives buyers more options, and in turn, it can slightly ease the pressure on prices. However, even with this growth, the market is still competitive, and homes aren’t sitting idle for too long.
Days on Market: Holding Steady
Another important metric to watch is how long homes are staying on the market. In August, the average days on market (DOM) increased slightly to 38 days, up from 34 in July. This isn’t a huge change, but it does suggest that homes are taking just a little longer to sell. As more listings become available, buyers have more choices, and they might be taking more time to weigh their options before pulling the trigger.
Interest Rates and the Bigger Picture
Now, let’s talk about the elephant in the room—interest rates. Interest rates have been a hot topic for quite some time now, and their rise has certainly influenced the market. Buyers are undoubtedly feeling the pressure of higher borrowing costs, and while they can negotiate with sellers to buy down their rates, it doesn’t change the fact that many are finding it more expensive to finance a home.
What’s more, property taxes are another growing concern. As home values have gone up, so have assessed values, which means higher property taxes. Combine that with rising insurance premiums, and homeowners are facing increased costs across the board. Colorado Springs, in particular, has seen insurance rates nearly triple in the past year due to its high-risk designation, making it more expensive to protect a home.
Why Homeowners Are Reluctant to Sell
One of the major forces shaping the market right now is the fact that 80% of mortgage holders in the U.S. have a sub-4% interest rate. For these homeowners, selling their current property means giving up that favorable rate and taking on a much higher one for their next purchase. This is a huge deterrent, and it’s why we’re seeing so many homeowners choose to stay put unless absolutely necessary.
Additionally, nearly 40% of single-family homeowners in the U.S. own their homes outright, meaning they have no mortgage to worry about. Many of these owners are opting to rent their properties rather than sell, which further constrains the inventory of homes available for purchase.
Affordable Housing: A Growing Concern
As interest rates rise and costs continue to climb, the issue of affordable housing has come to the forefront of the conversation. Colorado Springs is no exception to this challenge. While new apartments and rental units are being built at a steady pace, it’s clear that buying a home is becoming more difficult for many people. The reality is that until a comprehensive solution is found, affordable housing will remain a pressing issue in the community.
Conclusion: Navigating the Colorado Springs Market
The Colorado Springs housing market is in a state of transition. While more homes are being listed, sales have remained steady, and prices are showing slight declines. Rising interest rates, property taxes, and insurance premiums are adding new layers of complexity for both buyers and sellers.
If you’re in the market to buy or sell, staying informed and understanding the broader trends can help you make more confident decisions. As always, if you have questions or need assistance navigating the current market, don’t hesitate to reach out. Whether you’re looking for a new home or simply want to explore your options, we’re here to help.
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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