Colorado Springs Housing Market Today in 2024

We're excited to share the latest on the Colorado Springs real estate market. Typically, January tends to be a quieter time for home sales. However, this January presented us with a pleasant surprise – we saw an increase in homes hitting the market compared to last January. It's quite a shift from December 2023, where the number of homes listed was far less than those sold.

The current situation underscores a pressing need in our community: Colorado Springs needs more homes for sale to satisfy the growing buyer demand. With interest rates experiencing a slight decrease, we're witnessing a noticeable uptick in active homebuyers. Currently, we're looking at a supply of just 2.6 months to cater to the anticipated demand.

This dynamic market offers both challenges and opportunities. For sellers, given the high demand, it's a great time to consider listing your home. On the other hand, buyers might find more options available now than in the recent past, though the competition remains high.

The Current State of the Colorado Springs Real Estate Market
*Updated on February 5th, 2024

Average Home Price:

The Average Home Price in January 2023 was $525,254.
There has been a 0.5% decrease ⬇ in the average home price since last year.

Median Home Price:

The Median Home Price in January 2023 was $445,000.
There has been a 1.1% increase ⬆ in the median home price since last year.

SUMMARY: The median home price represents the most common sales price of all the homes sold in El Paso / Teller Counties from last month's home sales in January 2024. The average sales price is the combined average of all sold properties in El Paso / Teller Counties for the same period. The median home price better represents the most common price range of homes sold in Colorado Springs.

  • Total Active Listings in Colorado SpringsIn January 2023, Colorado Springs saw a welcoming uptick in the real estate market, with 1,749 active listings. This marks a 6.7% increase in available homes compared to last year. While our inventory levels remain lower, this growth is a positive sign. However, it's important to note that we're observing a price stagnation due to the current inventory status.

  • New Versus Sold Listings in Colorado SpringsLast month, we saw 963 new listings added to our MLS, which is just slightly below (by 0.2%) the number we had one year ago. Additionally, there were 668 homes sold last month, marking a 9.6% decrease compared to January 2023. It's noteworthy to mention that this is the lowest number of homes sold in January we've seen in the last nine years.

    • Days on Market in Colorado SpringsThe term 'days on the market' describes how long a home has been listed before it goes under contract. For homes listed in January 2024, the average was 51 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.

10-Year Home Price Trend in Colorado Springs

10 Year Price Trend in Colorado Springs

Are home prices dropping 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 January 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 2.6 months, the highest it's been in quite some time. 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

10 Year Inventory Trend in Colorado Springs

Is it a good time to buy a home in Colorado Springs?

Navigating the decision to buy a home in Colorado Springs? Let's chat about some key factors to consider that can help guide your choice. First up, the housing market: it's all about timing and availability. If you notice plenty of homes on the market with fewer buyers, you could snag a fantastic deal. On the flip side, if buyers are flocking in but homes are scarce, expect prices to be on the rise, making it a bit more challenging to find that perfect deal.

Interest rates also play a big role. Low rates mean lower mortgage costs, signaling a potentially good time to buy. However, if rates start climbing, so does the cost of borrowing, which might increase your overall investment in a new home.

Now, let's talk finances. Assessing your financial health is crucial. Consider if you have a solid down payment ready, how stable your job is, and where your credit score stands. These factors are vital in determining whether you're in a good position to make such a significant commitment.

Purchasing a home is a major life decision and one that should align with your long-term goals and lifestyle aspirations. The ideal timing for buying a home truly depends on a mix of market conditions, personal readiness, and financial stability. Consulting with a real estate professional and a financial advisor can provide you with tailored advice, ensuring you make an informed decision that suits your unique circumstances.

10-Year Home Sales Trend in Colorado Springs

10 Year Price Trend in Colorado Springs

Why are home sales low in Colorado Springs?

The real estate market in Colorado Springs has experienced a fascinating journey over the past few years. When the COVID-19 pandemic emerged, we saw a noticeable dip in the number of homes listed and sold, leading to a tighter inventory for prospective buyers. Then, as interest rates hit historically low levels, the desire to buy homes surged, despite the limited availability. This period marked a bustling activity in home sales. However, more recently, with interest rates climbing, there's been a noticeable deceleration in home sales.

The chart above provided offers a clear visual representation of this trend, highlighting a reduction in sales over the last two years. It's an interesting time for our market, and understanding these patterns can provide valuable insights for both buyers and sellers navigating the Colorado Springs real estate landscape.

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

Sellers Real Estate Market in Colorado Springs

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 668 existing homes, marking the lowest January 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, there could be a need to adjust pricing strategies 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, despite average interest rates, home prices in the Pikes Peak region have held steady. 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 adjustment in prices 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, although it's still early to forecast how these dynamics will fully play out and when the inventory will increase to further stabilize the market.

Indeed, predicting the future of the housing market is challenging in these changing times. Yet, these shifts offer both opportunities and considerations for buyers, sellers, and investors alike. Let's keep a close eye on 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 January 1, 2024, through January 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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