As a real estate professional, I diligently follow the developments in our Colorado Springs real estate market. I connect with agents to strategize about how we can navigate this challenging market with buyers and sellers. Information and a bit of creativity are vital. To be honest, we don’t see the market changing in the near future. The change in average sales price since September has been modest. Average sales price actually decreased from December to January, but this is likely due to the holidays temporarily slowing house hunting activity. Looking at just the average sales price can be misleading for home buyers. The main number causing a difficult market? The very low inventory.
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What to expect in our Colorado Springs market:
- Homes go under contract within hours (if the seller chooses one of the first several offers they receive).
- Frequent appraisal gaps (where the house appraises for less than the contract price). This means buyers have to bring money to the table to make up the difference. This situation can be particularly challenging for VA buyers with a $0 down payment.
- Buyers should be aware that if there is any contingency on the contract it will be countered or not accepted. We have options and strategies to advise our buyers in these situations, but they can be difficult and/or expensive.
- Many homes sell before they are even listed. Networking and having a well-connected agent are more important than ever.
- Buyers are expanding their home searches to areas outside of town. But choices are limited there as well because many folks started exiting the city during the earlier months of the pandemic.
- Buyers are hoping that building a home outside city limits will allow them to get what they are looking within their budget. This is usually not feasible when you add up all of the extra charges of building what is essentially a custom home (even a small one). This route can quickly become overwhelming and expensive.
- During the last quarter of 2020, there was hope that here might be more inventory due to COVID and the forbearance regulations. That impact will be minor at best as inventory levels have decreased to historic lows.
- Builders are struggling to keep up with demand. Building a new home seems to be one of the last ways to purchase a home in Colorado Springs without bidding wars and costly contract conditions mentioned above. Currently, the least expensive listing in our MLS for a single-family home under construction in Colorado Springs is $414,000. There some unlisted new construction homes in Falcon/Peyton starting in the low $400’s. Some builders have instituted lotteries to avoid having buyers camp out in front of their sales offices when new filings are released. Other builders are releasing just one lot a month and increasing prices each month.
Related reading:
Where to find new construction in Colorado Springs
Steps to Buy a Home
Tips for buyers:
- Work with an experienced agent or a newer agent who works on a team of experienced agents. (Click here to read our reviews)
- Trust your agent. It is more important than ever to be work as a team with your agent. We always try our best to help you successfully navigate this very difficult market.
- Our team focuses on excellent customer service and client education. When you work with us, we provide valuable information and tools to prepare you for the house hunt. Please review these resources and take advantage of the opportunity to be an informed buyer. It will make the home buying process so much easier and less frustrating for you if you understand the details provided in these resources.
- There are no deals in this real estate market for buyers. Period.
- The good news: if you feel like you overpaid for your house now, we think you will be relieved at the end of 2021 when others are paying even more. Home prices are expected to continue to increase through 2021.
Sellers
Sellers moving out of town to a less expensive area definitely have an advantage in this market. We’ll start to see military homeowners put their homes on the market when they receive orders for their next duty station. Anyone hoping to sell their home and buy a different house in Colorado Springs will be in a difficult position. Back to back closings have become virtually impossible which means you will likely have to close on your current home before being able to move into a new home.
Tips for Sellers:
- Contact us to schedule a complimentary listing consultation. We’ll help you sell your home for more money in less time while providing outstanding customer service. We don’t just sell houses – we take care of people. It is important to us that you have someone who treats you respectfully, honestly, and fairly during the home-selling process.
- Click here to request a home value estimate from us. You might surprised by how much your home value has increased since purchasing your home.
- Now is the time to sell. Inventory is historically low and buyer demand is very high. This means you could put your house on the market and have a contract within just a few days if it’s priced right.
- Check out our Steps to Sell a House page for detailed information about the home selling process.
Keep following our market updates and commentary as we progress through 2021 to stay current on what’s happening. Click here to subscribe to our blog. Give us a call 719-219-9739 or email susanna@co-regroup.com if you’re hoping to buy or sell in the near future.
