Colorado Springs Housing Market Today in 2024
In February 2024, the Colorado Springs housing market revealed some interesting trends that deserve a closer look. Despite the number of homes sold in February staying fairly consistent over the last ten years, this year saw a noticeable increase in new and active listings compared to the previous year. This shift provides insights into the market's direction and has implications for Colorado Springs buyers, sellers, and real estate professionals. Let's dive into these changes and what they mean for the local housing landscape.
The Current State of the Colorado Springs Real Estate Market
*Updated on March 6th, 2024
Average Home Price:
$511,272
The Average Home Price in February 2023 was $500,483.
There has been a 2.2% increase ⬆` in the average home price since last year.
Median Home Price:
$455,950
The Median Home Price in February 2023 was $440,000.
There has been a 3.61% increase ⬆ in the median home price since last year.
SUMMARY: The median home price reflects the middle price of homes sold in El Paso/Teller Counties based on the sales data from February 2024, essentially indicating the price at which half the homes sold for more and half for less. Meanwhile, the average sales price is calculated by summing the sale prices of 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 exceptionally high or low sales prices.
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In February 2023, the real estate market in Colorado Springs experienced a positive surge, with active listings reaching 1,830. This represents a significant increase of 26.8% in the number of homes available on the market compared to last year. This inventory growth is excellent news for home buyers, who will benefit from a more comprehensive selection of properties.
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In the most recent report, the MLS saw an addition of 1,142 new listings last month, which is a 17.0% increase from the same period last year. Moreover, there were 792 homes sold last month, representing a modest rise of 1.8% over sales in February 2023. The higher number of listings compared to sales has contributed to an uptick in our available inventory.
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The term 'days on the market' describes how long a home has been listed before it goes under contract. For homes listed in February 2024, the average was 53 days. This represents a slight uptick of 1.9% compared to last year, indicating that homes are selling at a pace very similar to what we saw around this time last year.
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10-Year Home Price Trend in Colorado Springs
Home prices have stabilized in Colorado Springs.
We're seeing a steady phase in the housing market – home prices are holding their ground. A glance at the 10-year Home Sales Trend reveals an interesting pattern: the sales prices for the past three February have been remarkably consistent. It's challenging to forecast the exact direction of the sales trend from here. In El Paso County, our current inventory stands at 1.8 months. Typically, a six-month inventory indicates a balanced market. So, 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 highlights that February of this year marked the second-highest count of active listings observed in the past ten years for the housing market. Additionally, it has been noted that home prices have stabilized during the last three Februarys, showing no significant increases or decreases. Should increasing active listings continue, home prices will likely start to decrease as a natural response to the principles of supply and demand. This suggests that an excess in available properties could lead to a more competitive market environment, potentially benefiting buyers with more negotiable prices.
10-Year Home Sales Trend in Colorado Springs
These sales trends indicate that the Colorado Springs housing market is stable.
This chart presents the sales data for the past ten Februarys in Colorado Springs, highlighting that this February witnessed the second-lowest sales volume in a decade. Despite this, the sales figures for February have remained remarkably stable over the last ten years. This consistent sales performance each February underscores a steady demand in the Colorado Springs housing market. Such stability suggests that the desire for homes in this area has been reliably steady regardless of economic ups and downs or seasonal variations. For homeowners and those considering selling, this indicates that February has traditionally been a reliable month for sales, potentially boosting confidence to list properties during this time.
Is Colorado Springs in a buyer's or seller's market right now?
Colorado Springs has recently been at the forefront of an exceptionally strong seller's market, the likes of which we haven't seen before. However, the tide is beginning to turn in favor of buyers. Last month, we witnessed sales of just 972 homes, marking the lowest February sales figure in nearly a decade. This trend suggests a gradual shift from a seller's market towards a more balanced, if not a buyer's market, especially as we continue to see an increase in available properties.
For sellers, this means a bit 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, largely due to the higher interest rates now compared to the very favorable rates they might currently have.
Despite these shifts, Colorado Springs continues to attract new residents in significant numbers. 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 going 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 gradual 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 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 February 1, 2024, through February 29, 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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