Prices for Colorado Springs real estate continued to jump in September, with the average price up 13.2% at $350,702 and the median up 11.1% at $305,500. The months supply of homes for sale is now 1.93. This is still a very low level, but is the highest all year. Higher overall inventory is a sign that some sellers are starting to respond the higher prices, but there is a growing disparity between the median price of listings in the inventory, 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
Sales for September were actually down 15.6% in September, a material decrease. It remains unclear how much of this may be due to the unique phenomenon of the month starting over the Labor Day weekend, coupled with the last closing day of the month being a couple days shy of the actual month end. New building permits for single family homes continue to be strong, but new construction tends to be in the higher price ranges.
Unemployment remains low, currently at about 3.6% locally. Interest rates have jumped for several weeks in a row, and are now trending into the upper 4’s, the highest level in 7 years. Some of our local call center operations are either cutting back or closing, but the new employers coming in seem to be on the stronger side for wages, so purchasing power is not likely to change much. 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 September data:
- Sales down 15.6% at 1,273 units
- Average price up 13.2% at $350,702
- Median price up 11.1% at $305,500
- Inventory of unsold homes up 14.6% at 2,457 homes
- Months supply of homes for sale 1.93
- Pending Sales 1,790 (down 9.7% 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 9/30/18. 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 10/1/2018