I love diving into the numbers when it comes to the Colorado Springs real estate market. My team scours through MLS listings to pull the data on active houses, crunch the numbers, and get a really good idea of what it’s like to buy a home in the Springs.
Some questions I ask myself when reviewing the variety of houses for sale in Colorado Springs:
- How many houses are listed?
- What’s the highest price?
- What’s the lowest price?
- How many square feet does it have?
- What home types are for sale? Are they single family homes? Townhomes? Mobile?
- Where is it located (Briargate, Central Colorado Springs, Black Forest, Fort Carson, etc)?
I also want to know how many bank-owned properties are for sale in Colorado Springs. How many short sales? After all, I still get questions about “deals” and have to explain that bank-owned properties are not deals anymore. For one, banks know what they can ask, and then buyers offer above and beyond list price.
There are so many statistics and data points to sort through, it can often be overwhelming for someone looking to buy their dream home in the Springs! I decided to add the numbers into an infographic and show them to you. Bear in mind that these numbers refer to Colorado Springs only-despite being close, areas like Denver and Castle Rock have drastically different markets.
Colorado Springs Homes for Sale
Colorado Springs is the proud home to multiple military installations like Fort Carson, the United States Air Force Academy, and Peterson Air Force Base. Our military population heavily influences our real estate sales cycle. As summer approaches, military personnel get their orders to move to or out of Colorado Springs. This makes June and July very robust sales months. Things start to slow down a tad as we approach fall and winter.
For now, our inventory numbers are climbing. The total number of listings at the end of November 2018 was 2,158 (this included single family homes, townhomes, patio homes, and condos). The increased inventory provides a welcome relief for buyers because they have more options to choose from. While the inventory increase could be anxiety-provoking for sellers, our 35 average days on the market is still ridiculously short. According to the National Association of Realtors, Colorado Springs is the 6th hottest market in the nation.
Related Reading: November 2018 Colorado Springs Market Snapshot
New Homes in CO Springs, CO
As a result of this uneven market, buyers are turning to new construction homes instead of a move-in ready house. It seems like a great idea: you choose your own floor plan, home design, and skip the tediousness of shopping around for available homes. However, this plan has its own challenges: a narrow labor market often extends build times, so you run the risk of the home construction quality suffering. Since there’s no open house or another way to see the home before you make your decision, it can be risky! Recent trade tariffs are also driving up the cost of building materials and increasing new construction prices points.
New home constructions have a similar home value so they aren’t necessarily expensive, but seem like a viable option to the low inventory of existing homes. After all, this part of Colorado is one of the most desirable places to live in the entire United States! In some areas, builders have lists of potential buyers waiting for new filings to open. The number in the infographic represents only the number of homes available through the multiple list service (MLS). Many builders do not use the MLS as there are fees connected with it and the potential customer traffic is high enough that they don’t have to participate.
- 5 Reasons to Use a Real Estate Agent for Your New Construction Home
- 10 Tips for Choosing the Best Lot for your Home
- Where to Find New Construction in Colorado Springs
CO Real Estate Auction Listings:
Home auction listings, just like bank-owned properties and short sales, imply that there is a deal. However, buyer beware! Make sure you read all the fine print and understand that there are additional charges that are coming on top of your offer price. These charges could negate any savings in your initial offer. Also, make sure that you are very well aware of what damage the home has – it is a CLEARANCE after all, so some damage is to be expected. However, unlike a “regular” sale, you might lose your earnest money regardless of your reason to terminate the contract! Again: READ. EVERYTHING.
Bank-owned Properties and Short Sales in Colorado Springs, CO
Our market usually doesn’t have many available. Right now there are 5 bank-owned properties and 10 active short sales. Again, this is a CLEARANCE sale and everything that applies to the auction listings applies to the bank owned and short sale listings. The good news is that you have a greater chance of getting your earnest money back if you decide to back out.
When you are making an offer on a bank owned property, expect that things are a bit different: disclosures are not “disclosing,” but simply saying “we don’t know anything.” You have to hurry up to meet all deadlines to retain your rights, and the bank cares very little about deadlines. It’s quite the take it or leave it situation right after the hurry up and wait.
A short sale is when a home is worth less than the money owed – which happens very rarely and will become much more common once home prices do not rise so insanely. I am happy to see that we don’t have them. CO real estate short sales are pretty easy, but they can take a loooooooong, looooooong time to close. Just don’t be in a hurry when you offer on one.
Most Expensive and Least Expensive Home Prices
There are a variety of price points when looking to buy a home in El Paso County, but it does skew toward the higher side. Often, clients look on the Re/Max website and see the costs without fully understanding the factors that go into pricing a home – From the property type, to how close it is to the Rocky Mountains, to nearby high schools, everything affects the price, and CO Springs is still one hot market. Some examples**:
- under $100K: 12
- $101k – $200k: 64
- $201K – $300k: 412
- $301K – $400K: 584
- $401K – $500K: 414
- $501k-600k: 203
**Single Family Homes, Patio Homes, Townhomes, and Condos as of 12/10/2018
I receive many requests for homes between 250 and 300K, but there are only 412 available for all of these buyers. Although this time of year has an increased inventory at that price point, it is still not quite enough to meet buyer demand and to equalize the market. The average home price has declined ever so little down to 343K in November, which is nearly 100K more than what many home buyers want to spend.
This begs the question: Are we turning into a San Francisco? How low will home affordability go in Colorado Springs? Will teachers, service providers, emergency personnel, etc. still be able to afford a home in our city?
What do you think?
Our infographic provides a quick overview of the latest stats for the Colorado Springs real estate market. From inventory numbers to the wide variety of available price points, you can get a general idea of the current real estate market data. As noted above, keep in mind that the number of new construction homes in the graphic is the what is listed in the MLS. Some builders don’t list their homes in the MLS, so there might be more than 185 new construction homes currently available.
Thinking of buying a home in the Springs and want more information? Click the picture below to download our buyer guide and learn all about the home buying process. Or sign up for listing alerts to learn more about what is available in your price range.