Colorado Springs Housing Market Today in 2024

Welcome to the Colorado Springs Real Estate Market Report for October 2024!

The median sales price was $475,000, a 2.1% decrease from last year, keeping prices relatively the same over the previous two years. Inventory is rising, with 35% more homes listed than sold, and October saw the fewest home sales in over a decade.

Homes took an average of 44 days to sell, which is about the same as last year. We are currently in a soft buyer’s market, with signs pointing toward a full buyer’s market by next year.

The Colorado Springs Real Estate Market Update
*Updated on November 6th, 2024

SUMMARY: The median home price reflects the middle sales price of homes sold in El Paso/Teller Counties based on the sales data from October 2024. The average sales price is calculated by summing the sale prices from all properties in El Paso/Teller Counties during the same timeframe and dividing by the number of properties sold, offering a broad overview of the market's pricing landscape. For understanding the typical price range of homes in Colorado Springs, the median home price is often more indicative, as it avoids skewing by ignoring unique high-priced homes.

10-Year Home Price Trend in Colorado Springs

Home prices have stabilized in Colorado Springs.

Home prices dropped a little this month, even though the sales prices for the past two years have been flat. It's challenging to forecast the exact direction of the sales trend from here. In Colorado Springs, our current inventory stands at 3.4 months of supply. Typically, a six-month inventory indicates a balanced market. While we are seeing more homes available than in recent years, we would still need to see an increase in inventory for home prices to begin to decline.

10-Year Active Inventory Trend in Colorado Springs

More homes are coming on the market every month in Colorado Springs.

The chart shows that this October saw the most homes for sale in the last ten years. Also, home prices haven't gone up or down much in the last two years.

If we keep seeing more homes for sale, prices might drop because of the laws of supply and demand. This means that if there are a lot of homes available, buyers might have a better chance to negotiate and get lower prices in the future.

10-Year Home Sales Trend in Colorado Springs

These sales trends indicate that the Colorado Springs housing market is slowing down.

Last October, we saw the lowest number of homes sold since 2012. If this trend continues through the winter, home prices may decline. There will be more homes for sale than people looking to buy. This could be good news for buyers waiting for a better time to buy a house.

Sellers might have to wait longer to sell their homes and could need to lower their prices to attract buyers. This shift will balance the housing market, helping first-time buyers and those looking to move into a bigger home find something within their budget. Both buyers and sellers should watch how things change over the summer, as it could affect their plans.

Is Colorado Springs in a buyer's or seller's market right now?

Last month, we witnessed sales of just 998 homes, marking the lowest October sales figure in over a decade. The time it takes to sell a home is also rising. This trend suggests that we are in a soft buyer's market, especially as we continue to see increased available homes for sale.

For sellers, this means more patience might be needed, and in some cases, pricing strategies could need to be adjusted to attract buyers. Many homeowners are currently hesitant to sell, mainly due to the higher interest rates compared to the very favorable rates they might currently have.

Despite these shifts, Colorado Springs continues to attract significant numbers of new residents. This ongoing influx is fueling commercial development and the growth of our neighborhoods, with new homes and apartment complexes continuing to rise. It's an exciting time for our community as we navigate these changes together, offering opportunities for both buyers and sellers in this dynamic market.

Is the Colorado Springs housing market forecast to crash soon?

Over the past year, we've seen an increase in available properties, yet the market remains vibrant and active, avoiding any downturn toward a recession. The median price for homes listed for sale has remained stable, closely mirroring last year's figures. This stability is a positive sign, showing no immediate risk of a housing market crash in our area. Instead, we're witnessing a shift.

In 2024, home prices in the Pikes Peak region have held steady despite average interest rates. This balance is thanks to a gradually increasing supply meeting the demand for single-family homes in Colorado. As the inventory continues to align with buyer demand, we might anticipate a slight price adjustment throughout the year.

Additionally, there's a growing trend of homeowners tapping into their equity by borrowing against their property. This movement indicates a change in the national housing market. However, it's still too early to forecast how these dynamics will fully play out and when the inventory will increase to stabilize the market further.

Indeed, predicting the housing market's future is challenging in these changing times. Yet, these shifts offer opportunities and considerations for buyers, sellers, and investors alike. Let's closely monitor these trends as we navigate the market together!

Our real estate agents at Great Colorado Homes enjoy discussing the local market with anyone interested in learning about it. If you have any questions, feel free to contact us.

*Based on information from the Pikes Peak REALTOR® Services Corp. ("RSC"), for the period October 1, 2024, through October 31, 2024. RSC does not guarantee or is in any way responsible for its accuracy. Data maintained by RSC may not reflect all real estate activity in the market.

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