July in Colorado Springs is historically when the market retreats a bit from the torrid pace of the spring market. This July was no exception, with the average price up 7.5% at $347,518 and the median up 8.8% at $310,000, both down from the new all time records set in June. The months supply of homes for sale is now all the way UP to 1.5, the highest it has been for almost 2 years. This is a laughably low number, but it illustrates how low the inventory has been.
Anecdotally, we are starting to see some push back on prices, and the median days on market has begun to stretch out a little bit more (all the way up to 7 in July, also an historically silly low number), so things might actually get a little more sane going forward. Sales are actually down slightly for the last 5 months, and 6 of the last 8 months, and are now flat year to date. New building permits for single family homes continue to be brisk.
Unemployment remains low (in the 3’s), and despite some volatility, interest rates remain in the mid 4’s for the moment. New employment announcements by local businesses continue to roll in, so look for this to continue for a while. Colorado Springs is currently ranked the #2 best place to live in the US by US News and World report, a reminder that upward pressure may continue for some time on our market.
This market has been hard for buyers recently, but the next few months may see at least a little return to more normal conditions. A couple keys to buyer success:
- Be ready to jump when a good one comes along
- Have your lending and cash position solidified before writing offers
- Be prepared to pay more than the asking price, and not to ask for much from the seller in the way of other items
- Use a reputable local lender and Realtor to make sure your offer is given the credibility it deserves
- Be patient. Unless you have lots of cash to work with (and win with), you may not get the first house you write on
Many transactions are involving multiple offers at this point, and prices can easily get bid several percentage points above asking. The ratio of selling price to list price in July was 100.00% across our entire market.
Here is a brief summary of some of the July data:
- Sales down 3.3% at 1,592 units
- Average price up 7.5% at $347,518
- Median price up 8.8% at $310,000
- Inventory of unsold homes up 1% at 2,386 homes
- Months supply of homes for sale 1.5
- Pending Sales 1,998 (down 13.4% from last year at this time)
For more details, see the Colorado Springs Homes Sales Trend Data
“Based on information from the Pikes Peak REALTOR Services Corp. (“RSC”), for the period 1/1/05 through 7/31/18. 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.” Copyright © 2018 REALTOR® Services Corp. Questions about this data analysis should be directed to Rick Van Wieren, RE/MAX Properties, Inc, 1740 Chapel Hills Dr, Colorado Springs, CO 80920 ph 719-331-7675 or email firstname.lastname@example.org
Updated as of 8/1/2018