Market Conditions

May 2023 was an interesting month in terms of the Colorado Springs real estate market. While prices rose substantially from the early months of this year, they are still behind last year at this time, though not by much. Sales also rebounded from the winter and early spring, but were still down 26.4% from a year ago. While prices will likely not hit the overall peak from last year, continued increases from current levels are likely over the next several months. The median for homes closed was 100% of asking price. The median time on market for May was only 8 days, showing a fairly brisk rate of sales, despite inventory being limited.

The inventory of unsold homes was only 1,749 homes. This represents only a 1.41 month supply at the current rate of sales, which is the lowest we’ve seen since last June.

Other big takeaways last month include:

• 1,638 homes pending sale as of June 1 (this is concerning, it should be higher)
• The median time on market was 8 days for May closings, which is very low overall
• Sales while down from a year ago, were up from April and March, indicating some normal seasonal increase

As of right now, rates are still in the mid to upper 6%’s for conventional and low 6’s for VA. While the increase in rates will certainly impact a buyer’s purchasing power, there are also programs to help lower the rates temporarily for some buyers. It’s important to note that we still expect home prices to continue to rise, even if at a slower rate. Pent up demand appears to be fueling the market more than lower rates, so if rates do drop as they are expected to, things could get even interesting. Waiting to buy could cost you in the long run. Buying sooner than later allows you to lock in a lower price with the opportunity to refinance later when rates lower.

Colorado Springs continues to be ranked highly as a place to live by US News and World report, a reminder that upward pressure may continue for some time on our market. Recent new job announcements in the area will also continue to add housing demand.

Here is a brief summary of some of the May data:

• Sales down 26.4% over last May
• Average price down 3.2% at $536,479
• Median price down 2.5% at $475,000, but up 3.5% over April
• Inventory of unsold homes up 29.1% at 1,749 homes
• Months supply of homes for sale 1.41, very much signifying a sellers market
• Pending Sales 1,638

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 1/1/23 through 5/31/23. 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 © 2023 REALTOR® Services Corp. Questions about this data analysis should be directed to Rick Van Wieren, RE/MAX Properties, Inc, 1915 Democracy Pt, Colorado Springs, CO 80908 ph 719-331-7675 or email vanwierenrick@gmail.com

Updated as of 6/1/2023