When it came to selling their home, 86% of sellers used the services of a real estate agent. El Paso County is a significant housing market in Colorado, with a population of over 700,000 people. Millennials and Hispanics are in their prime buying years. Purchasing an investment property requires a lot of study, planning, and budgeting. Many sellers waiting for the market to turn around will likely give in and increase the inventory. Zillow has 1573 homes for sale in Colorado Springs CO. View listing photos, review sales history, and use our detailed real estate filters to find the perfect place. The bubble pops up when the equation is reversed. Either way, knowing your profit potential and purpose is the first thing to consider. Thus, demand increases and prices rise as well. Additionally, rising interest rates could also affect the housing market, making it more expensive for buyers to obtain mortgages and leading to a decrease in demand. These rates have priced many buyers out of the market as theyre at record highs in more than 20 years. As a result, sellers have to lower the prices of their homes. In the end, you want to pay the right amount. Also, the median days on the market might reach up to 35 days or more in the next year, with a current avg of 29 days. The controversial Airbnb ordinance was passed in November 2018 by the Colorado Springs City Council. The Colorado housing market is amid a major shift. Current Housing Market Trend 2022: In September 2022, median home prices in Colorado were down by 1.8% compared to the last year. The average sold home was on the market for two weeks. One solution for many is living in Colorado Springs and commuting an hour or more each way to work. Here are the most recent market statistics to show what has changed. Many real estate investors have asked themselves if buying a property in Colorado Springs is a good investment. These trends suggest that the Colorado Springs housing market may be shifting toward a more balanced market, where buyers have more options and bargaining power. 16% of respondents said now is a good time to buy a house. The 1929 Wall Street Crash. Months supply, which is a measure of the number of months it would take to sell all available homes at the current rate of sales, has increased by almost 100% to 1.4 months. If youre not planning to stay in the real estate property for a long time, do not buy it. Affordability becomes difficult for homebuyers. Days on Market Until Sale is another crucial factor to consider, and it is up by 103.1% year-over-year. A majority of homeowners own significant equity in their homes. Right now, prices are slowing down, and inventory is rising. Colorado Springs real estate has continued to appreciate faster than most of the markets in the US. Major changes in a countrys demographics can have a long-term impact on current Colorado housing market trends. It is important to freshen up the curb appeal before potential buyers arrive. RSC does not guarantee or is in any way responsible for its accuracy. Get a clear insight here. . The neighborhoods in Colorado Springs must be safe to live in and should have a low crime rate. Buyers are having more success getting their offers accepted. The Colorado Springs real estate market gets overlooked in favor of bigger markets like Denver. https://www.coloradorealtors.com/market-trends/regional-and-statewide-statistics/ Buyers may have more options, and sellers may have to be more flexible with their prices. NEED MORE CLARITY? Overall, the Colorado Springs housing market seems to be experiencing a balanced shift towards a buyer's market, with a reasonable inventory of homes available for sale. However, it's expected to recover slightly by February 2024 with a predicted decrease of 0.3%. Understanding current government policies can help you predict the demand and supply and identify potentially false Colorado real estate market news. In Vail, the inventory of homes on the market rose since the first of the year, but still shows 25% lower than a year ago, and at just 40% of long-term averages. Additionally, the percent of list price received has dropped to 98.5%, indicating that sellers may be willing to accept lower offers. The Colorado Springs real estate market contains several large populations of renters, many practical reasons for people to move here from the surrounding area and across the country, and long-term factors that will drive growth for years to come. Evaluate the specifics of the Colorado Springs housing market at the time you intend to purchase. The number of homes sold will likely plunge 14.1% to 4.53 million homes, representing the lowest number of property transactions since 2012, when the U.S. was still recovering from the housing. Most economists would agree that a housing bubble does exist. Offer financial incentives like covering all closing costs, accepting allCO inspection requirements, or providing a transferable home warranty. For Airbnb's attractability and business building, there are two huge military bases with Air Force, Naval Academy. Inventory or Homes for sale refers to the number of unsold residential and commercial real estate units. Therefore, it is essential to keep an eye on economic indicators and market trends while making any real estate decisions in Colorado. When comparing the data to 1971, the present mortgage rate is moving towards a long-term average of 8% 30-year mortgage rates. List your property on MLS for the best results. Want to sell a distressed property? More houses on the market may have resulted in a decrease in demand, leading to a drop in average sales price. The housing market refers to properties bought and sold directly to buyers or through real estate brokers. Here's a interactive map of localneighborhoods. Recent sellers typically received 100% of the listing price, and 38% reported lowering the asking price at least once. Whether youve decided to upsize or downsize to live in a low-maintenance home. Know exactly whens the best month to buy a house. Everyone enjoys their own space, and a growing family often requires more space. He predicts a balanced market in which neither buyer nor seller has a monopoly. Conversely, the high price of a property in Denver is driving many businesses to move or expand south into the Front Range, bringing Denvers jobs closer to the Colorado Springs housing market. This means well-designed condos and duplexes in the right areas are as attractive to them as a large house in the suburbs. It's always good to plan conservatively. A housing market bubble is caused due to unsustainable home prices. The market has a total sales-to-total listings ratio above 0.2. However, high prices and rising interest rates are thinning out the number of active buyers. As of April 13th, 2022, the 30-year fixed-rate mortgage hit 5% for the first time since 2011. However, the student market in Colorado Springs is both larger and more diversified than the military student population. 48% of the apartment can be rented in the price range of $1,001-$1,500 while 36% fall in the price range of $701-$1,000. The sales data is for Single Family Homes in El Paso County, CO. What are the Colorado Springs real estate market predictions for 2023? Know them all! If you are looking to make a profit, you dont want to buy the most expensive property on the Colorado Springs real estate market and expect to make a good profit on rents. Read these exclusiveHouzeo reviewsand learn why it is one of thebest FSBO sitesin America. At last, home prices reach unstable levels, making it unaffordable for the average or even above-average buyer. The personal balance sheets of homeowners today are much stronger than they were 15 years ago. Garden of the Gods is a very famous public park located in Colorado Springs. https://www.realtor.com/realestateandhomes-search/Colorado-Springs_CO/overview Colorado Springs' housing market, like those in most cities, hit the brakes last year though it stopped short of a crash. Please do not make any real estate or financial decisions based solely on the information found within this article. Looking at the MSA level forecast for Colorado, we can see that Denver, Boulder, and Fort Collins are expected to experience a decline in housing prices in 2023-2024, with Denver projected to decrease by 1.6% by February 2024. There were 1,414 new listings submitted to our MLS last month. The Current State of the Housing Market in Colorado Springs *Updated on March 3rd, 2023 Average Sales Price: $500,483 - 2.8% year-over-year decrease Average Sales Price in February 2022: $514,757 Median Sales Price: $465,000 - 5.4% year-over-year decrease Furthermore, the state's population growth is expected to continue, which will keep the demand for homes high. The median home price today in California (As of the end of April 2022) was $730,500. The Boulder real estate market also puts you in reach of a great job market. ProfessionalColorado home staging largely involves cleaning, rearranging, or renting furniture and other aesthetic tactics to make your home visually appealing. Anything less than that is a shortage and will lead to continued price appreciation. Economic Downturn: An economic downturn leads to less disposable income, fewer job openings, and higher unemployment. How To Invest in Real Estate During a Recession? https://www.krdo.com/news/top-stories/airbnb-ordinance-passes-2nd-vote-by-colorado-springs-city-council/862178044 This number will increase every month as more inventory hits the market and sales times are extended. Laguna Niguel, CA 92677, Copyright 2018 Norada Real Estate Investments. Mortgage Interest rates significantly impact the current Colorado real estate market. U.S. News and World Report magazine discusses the large retiree community in Colorado Springs. A housing bubble bursts when demand decreases and supply increases. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Colorado Springs, Colorado. Listing on MLS is the best way to sell a house. Brett: The worst crash in our recent history we massed 16% loss over 4 years. You can charge landlords a start-up fee and 20% commission for co-hosting (finding clients and getting the property Airbnb ready). Benefits of Home Staging:There are numerous benefits a seller can get from professional home staging. If one of these variables is taken out of the equation, the bubble pops. The 10-year ARM (adjustable rate mortgage) was at 4.3%. Most of the homebuying discussed here could apply to any housing market that may or may not be coming up on a crash. This has led to an increase in home prices across most regions of the state, making it difficult for buyers to find their dream homes. The 2008 Housing Bubble. The tight labor market is drawing people to the area and keeping college graduates in the vicinity. Best Time to Buy a House: Know exactly when it is best to buy a house! A housing market crashes when theres an immense supply of properties and few buyers to purchase. But the Colorado housing market checked even more boxes as we entered 2021. In Telluride, agents are seeing fewer sales but are marking record prices. The market has seen a decrease in new and sold listings, as well as an increase in the inventory of homes for sale and the time it takes to sell a home. As per August 2022 data, only a 3.2-month supply is available in the inventory. A real estate housing market or real estate market refers to a network of buyers and sellers looking to buy and sell real estate. There is a high chance that the homes value may decrease before it starts to increase again. The average days on the market for homes listed in March 2023 was 48 days. Colorado Springs regulations on short-term rentals are not as stringent, though, as those in nearby tourist towns like Breckenridge. A typical homebuyer financed 94% of the home price. Selling FSBO in Colorado is more popular and high-tech than ever. Inventory is back to pre-pandemic numbers and starting to create a buyer's market. Prices are just now starting to level out. There were only 705 active listings this time last year. Home prices may continue to decrease, and it is possible that the number of days on the market will continue to rise. A few sellers are still in a dilemma considering the slow market, high inventory, decreasing home prices, and increasing mortgage rates. Let us know which real estate markets in the United States you consider best for real estate investing! There were 1,480 homes for sale last month. The median number of days property listings spend on the market in a given geography during the specified month. You can convert your property into an Airbnb vacation rental and rent it out to vacationers and tourists on a short-term rental basis. A slow Colorado real estate market may force buyers to refinance their new homes. Fort Carson, an Army base, is located within the city limits. In September, pending home sales fell for the fourth consecutive month, falling month over month by, Housing affordability declined significantly in. In February 2023, the median price in the Colorado housing market (statewide) was $536,000, down -3.4% year-over-year. The high demand for houses decreases when theres a downtrend in the nations economy. Disclaimer: The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. Colorado Springs CO real estate listings updated every 15min. These are Cash-Flow Rental Propertieslocated in some of the best neighborhoods of Colorado Springs. Even with interest rates rising in 2023, housing prices are still increasing in the Pikes Peak region; unfortunately, the supply of inventory is finally enough to meet the demand for single-family homes in Colorado Springs. Overall, it seems like the Colorado housing market is going to be somewhat balanced, with some regions experiencing a decrease in home values and others experiencing an increase. The local economy is strong and mortgage rates remain low. Buying a home solely for selling will only increase inventory. Colorado prides itself on cultivating high-tech jobs like California without the over-crowding or insane housing prices. The top 10 most overvalued housing markets in Colorado are as follows: Heber-Overgaard, AZ 66.7%, Cave Creek, AZ 26.9%, Saddlebrooke, AZ 23.1%, Coolidge, AZ 18.3%, Marana, AZ 13.6%, Fortuna Foothills, AZ 12.3%, New River, AZ 11.2%, Fountain Hills, AZ 11.1%, Litchfield Park, AZ 9.9%, & Peoria, AZ 9.9%. Buying a home might not build equity as quickly as expected. Try Our CustomHome Search Yes, if you are in a stable financial position. To buy or finance a house, it is necessary to be in a stable financial condition. Conditions in the Colorado Springs real estate market seem to be in a sustainable, upward direction and show no signs of slowing down. Want to get a net proceeds estimate? Demographics make it easy to determine what types of real estate properties are in demand. 1-844-759-7732; Buy Menu Toggle. On the flip side, more and more people are starting to cash out on their equity by borrowing against their property. Almost 90% of buyers are represented by a buyer agent who shares access to the local MLS. Learn about the unique aspects of living in Colorado Springs. However, given the recent trends, it seems likely that the market will continue to cool off somewhat. The Colorado housing market is amid a major shift. New Listings decreased by 19.6% year-over-year, which either shows a decrease in seller optimism. Sales decreased 23.8% from the prior year and 1.5% from August. https://www.uccs.edu https://www.coloradorealtors.com/market-trends/regional-and-statewide-statistics/, https://www.zillow.com/ColoradoSprings-co/home-values, https://www.neighborhoodscout.com/co/colorado-springs/real-estate/, https://www.realtor.com/research/hottest-zip-codes-2021/, https://www.realtor.com/realestateandhomes-search/Colorado-Springs_CO/overview, https://greatcoloradohomes.com/colorado-springs-real-estate-market-statistics.php, https://www.propertymanagementincoloradosprings.com/colorado-springs-local-market-statistics, https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters, https://morrisinvest.com/blog/2016/12/21/5-most-landlord-friendly-states, http://www.landlordstation.com/blog/top-landlord-friendly-states, https://www.zumper.com/rent-research/colorado-springs-co, https://en.wikipedia.org/wiki/Colorado_Springs,_Colorado, https://realestate.usnews.com/places/colorado/colorado-springs, https://www.military.com/base-guide/colorado-springs-military-bases, https://www.zeonamcintyre.com/blog/2018/1/26/airbnb-investing-trip-colorado-springs-edition, https://www.krdo.com/news/top-stories/airbnb-ordinance-passes-2nd-vote-by-colorado-springs-city-council/862178044, https://www.avalara.com/mylodgetax/en/blog/2018/10/colorado-springs-passes-new-airbnb-rules.html, er-denver-colorado-springs-might-have-the-hottest-housing-market, demand in the Denver housing market for the past many years, Colorado Springs turnkey real estate investments. One of the most significant changes in the market is the increase in the number of days on the market until sale. Economic indicators include GDP, employment ratio, manufacturing activity, the prices of goods, etc. Inventory is building up to levels equivalent to 2015. From June 2022 to July 2022, Florida's median sale price fell by 2.7%, from $410,400 to $399,200. Choosing a real estate professional/counselor continues to be a vital part of this process. The area is growing both as an outer suburb of Denver and for its reasons, making it the fourth-largest city in the state. As a result, the market seems to be changing, but it's too soon to tell when inventory will return and help balance the entire market. You should also try to clean and declutter your home so prospective buyers can see the living areas. Shortage of housing for a growing population, a strong economy & increasing jobs have been fueling the demand in the Denver housing market for the past many years. Sell FSBO! The countrys economic power directly affects the housing markets in the US. At the same time, sellers may need to be more flexible with their pricing strategies and be prepared to wait longer for their homes to sell. Industry sectors hiring people include hospitality and professional and technical services. However, the changing demographics by 2030 will result in lower demand for new housing, which could lead to a slowdown in construction activity. Consult with one of the investment counselors who can help build you a custom portfolio of Colorado Springs turnkey properties. As a result, there are chances that the housing supply will remain low. You can also co-host clients in Colorado Springs through profit sharing with landlords. Another indicator of a cooling market is the decrease in closed sales of single-family homes, which were down by almost 19.6% from the previous year. Buyers finally have market power. The cost of obtaining a mortgage decreases as soon as the interest rate does, which increases demand for real estate and raises home prices in CO. Also, the supply-demand curve indicates that prices wont crash shortly. The inevitable results are a decline in prices and sales. Today's median price of a home listed for sale is only 3% lower than last year. Forget the Mile High City and invest in the Colorado Springs real estate market. This drop in new listings may indicate that sellers are waiting for a better time to list their homes, or there is a seasonal slowdown in the market. https://en.wikipedia.org/wiki/Colorado_Springs,_Colorado The 10-year home sales trend reflects the number of homes sold for March 2023, going back ten years. . Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments a nationwide provider of turnkey cash-flow investment property. Friends or family referred 36% of sellers who used a real estate agent, and 27% used the agent with whom they previously worked to buy or sell a home. The population has increased by 1.33% from 2019. Colorado home prices are expected to rise even further in 2023. The Colorado housing market has experienced a significant surge in demand and price appreciation during the past two years, making it a challenging environment for buyers to find affordable homes. These trends suggest that the Colorado Springs housing market may be shifting toward a more balanced market, where buyers have more options and bargaining power. Houzeo.com helps you sell your home fast in a slow market by listing your house on MLS. Bank Failures 2023: Will Collapse Affect Housing Market? The months supply metric is calculated by dividing the number of homes for sale by the number of homes sold in a month. The average size for a Colorado Springs, CO apartment is 837 square feet with studio apartments being the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. Current Housing Market Trend 2022: 21,869 U.S. properties started the foreclosure process in September 2022, down 9 percent from the previous month but up 113 percent from a year ago. Mississippi: $157,828 with down payment of $20,517. Taking possession of a mortgaged property when the mortgagor fails to make mortgage payments. The Colorado housing market is highly localized as market trends vary from region to region. Inventory of Active Listings increased by 59.3% year-over-year. Housing bubble bursts for a variety of reasons. Still, you can manage to buy a house and get a better deal. Colorado allows you to quickly evict tenants who dont pay their rent. With the observed trend, higher interest rates could cause a 10% drop in home sales next year. This will roughly average the 30-year and 15-year mortgage rates at 8.50 and 7.70, respectively. According to the Zillow data, the Colorado Springs housing market is expected to experience a minor decline in home values in the coming year. Inventory is low and prices are increasing at a steady pace. A side benefit of this diverse military market is that the Colorado Springs real estate market enjoys a large, permanent population of renters but without the wild swings that come with the rise and fall of a single military bases fortunes. His mission is to help 1 million peoplecreate wealthandpassive incomeand put them on the path tofinancial freedomwith real estate. Lenders used to offer mortgages to anyone without doing any prior credit checks or down payments. An increase in interest rates makes homeownership unaffordable for more potential buyers. A seller may conceal the need for major repairs. If this were 2019, the for-sale housing market in Colorado would be considered booming. Understanding and dealing with sellers disclosure in Colorado can be intimidating for home sellers. Economists do not believe that the real estate housing market will crash. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current.