The New Year for the Colorado Springs real estate market started with tight inventory conditions. While up 26.4% from last January, there were still only 1,706 homes for sale on January 1, only a 1.6 month supply. This is a very low level, well below what is typically termed a normal market. Adjusted for homes that are outside of El Paso County, and for homes that are not actually built yet, the situation is even tighter.
Prices in December were up a modest 5.5%, with the average at $340,908 and the median at $300,855. There is a growing disparity between the median price of listings in the inventory (median of $402,146 and average of $527,688), vs the median price of the listings that are actually sold. This could point to a new affordability gap at the low end of the market. As more affordable homes become scarce, buyers may be finding it more difficult to purchase the homes that are actually for sale. As of January 1, there was under a 1 month supply of homes on the market below the median selling price of $300,800.
Sales for December were down 11.8%. This is the 10th consecutive month of year over year declines, and is probably attributable to a combination of low supply of affordable homes, rising prices, and rising interest rates (4.54% is the Bankrate.com average as of 12/28, actually down slightly from the end of November). New building permits for single family homes continue to be strong (up 15.7% YTD), but new construction tends to be in the higher price ranges.
Unemployment remains low, currently at about 3.9% locally. Interest rates have eased some since the election. Colorado Springs was recently called out as a number 1 market to watch (See article HERE)
Colorado Springs was recently ranked the #2 best place to live in the US by US News and World report (see the article HERE), a reminder that upward pressure may continue for some time on our market.
Here is a brief summary of some of the December data:
- Sales down 11.8% at 1,064 units
- Average price up 5.5% at $340,908
- Median price up 5.6% at $300,855
- Inventory of unsold homes up 26.4% at 1,706 homes
- Months supply of homes for sale 1.6
- Pending Sales 1,208 (down 12% 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 12/31/18. 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 email@example.com
Updated as of 1/2/2019