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April 2024 Colorado Springs Real Estate Market Update

Posted by Sarah Steen on May 14, 2024
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infographic with April 2024 Colorado Springs Real Estate statistics including average home price, days on market, and number of homes for sale

Real Estate Numbers in Colorado Springs

After a sluggish start, the spring real estate market has officially kicked off here in Colorado Springs. You’ll see that some of the sales numbers in our market are contradictory. For example, Colorado Springs had an incredible 6.1% year over year price increase to an average sales price of $564,715 and a median sales price of $490,000. But the number of sales compared to last year dropped 12% while we have 34% more active listings on the market.

Mortgage interest rates that are stuck in the 7s are one reason for the decreased sales activity. Many buyers continue to wait on the sidelines while interest rates remain high. Buyers who are actively shopping tend to go for cream puff properties and pay a premium for them. A cream puff is a property that is completely updated and upgraded. Flip homes usually fetch so much money because they are cream puffs.

  • Overall Sales: 959 (-12% from April 2023)
  • Number of Homes for Sale: 2139 (+34.5% from April 2023)
  • Average Sales Price: $564,715 (+6.1% from April 2023, +7% from March 2024)
  • Average Days on Market: 40 (-16 days from March 2024)

Download the Seller Guide

When will interest rates go down?

There has not been much movement in the Consumer Price Index (CPI) which has prevented the Federal Reserve Board from decreasing interest rates like everyone is waiting for.

We find ourselves in a similar situation that we’ve had for over a year. Many homeowners are still in Golden Handcuffs holding on to their super low interest rates from a few years ago. When they look at the properties in their budget and how different their monthly payment would be with current interest rates, the numbers usually don’t make sense.

The sellers we are working with are simply ready to move forward with their lives. If you have a 2 or 3% rate, you probably have enough equity built in your current home to make the move you want. Additionally, because Colorado has a fairly high cost of living, sellers moving to a different state could luck out with less expensive home prices.

Related Reading: Steps to Sell a House

Real Estate Trends We’re Watching

  • Townhomes and condos are trailing the value increase that we see in single family homes. This is usually because HOA fees are so high due to increasing insurance premiums.
  • It’s a relief for sellers that the average days on market has decreased, but 40 days can still wear on a seller’s patience to have a house show ready at all times.
  • Buyers are also weary. They are frustrated with the high number of poor quality listings on the market, high prices, mercilessly high interest rate, and expensive property taxes, insurance and HOA fees. This is especially true for buyers who do not have equity from a previous home to increase buying power.
  • The much-anticipated Silver Tsunami has not arrived. The prediction was that Boomers would sell their homes in large numbers to downsize or move into assisted living. With the number of Boomer homes potentially going on the market, the hope was that the increased inventory would put downward pressure on home prices. But this wave of inventory has not yet happened.

Related Reading: Tips for Downsizing

Home selling strategies in Colorado Springs

Make your house a cream puff. Prepare your home diligently and then price it RIGHT.

Planning to stay in town? Don’t paint yourself into a corner with offering on a new house before you put your home on the market or at least get it ready to list. Even the most organized homeowners need time to get their home ready for sale. If you offer on a house first and go under contract, the stress to prep your current home to go up for sale can be incredibly overwhelming. We see homes that are not presented well and overpriced sit for weeks on the market and then the pressure starts to mount. This could result in losing the contract on the new house or taking a big price cut on your current home to get it sold.

Sellers have a few options for buying and selling simultaneously:

  • Prepare your home diligently and price strategically. Make a plan to rent midterm and put all or part of your household into storage.  You can wait for your current house to sell before you start looking for a new house, or you can start your home search after the home is up for sale. Offer on a house no earlier than the time that your current house is under contract.
  • Carry two homes if your finances allow it. You can still prepare you home and put it on the market. But a lot the pressure is lifted since you are not forced to sell it to buy a new one.
  • Consider renting out your current home or taking out a HELOC from your current home as a down payment on your new home. Check in with your lender for details on this option.

Related Reading: Trade Up Your Home

What are the best buying strategies for home buyers?

Math and patience.

Sounds simple, but that’s what it boils down to. It’s also very advantageous to have a willingness to look at a great location and stay open to homes that aren’t cream puffs. Choosing a house with low property taxes, low/no HOA fees, and a rate buy down will help keep interest rates (and therefore monthly payments) in check.

Related Reading: 10 Ways to Lower Your Mortgage Payment

If you fall in between any of these situations and you are not sure what to do, give us  a call to see what game plan we can come up with for you.