I am really not a fan of bad news, but sometimes it just has to be told. July 2010 home sales in Colorado Springs is one of those bad news stories. At only 713 sales, we were down 24.6% from last July, which was not a great month to begin with. This was something we expected however. With the tax credit expiring, there was some borrowing of sales in the spring from the summer months. It will take a few months for ‘normal’ demand levels to really be established. In the mean time, the inventory of unsold homes jumped 16.9%, an 8.4 month supply of homes at the July selling pace.
There is a silver lining. Prices actually improved again, with the average up 2.4% at $237,029, and the median up 5.1% at $209,800. Interest rates are still incredible at 4 3/8% . The ratio of selling price to list price went back up to 97.6%, a more normal figure. And the 90th percentile (indicating where the top 10% of activity is) jumped again, to $415,000, the 1st time we’ve seen that level in a while, and a sign of continued strength in more expensive homes.
What will it take for us to get to a more sustainable level of home sales? Jobs. The quality of life in Colorado Springs is famous. What we still need are more jobs, and preferably of the higher paying variety. 🙂
For more details about home sales, see the Market Conditions section of this web site.