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February 2024 Colorado Springs Real Estate Update

Posted by Sarah Steen on March 14, 2024
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The Colorado Springs Real Estate Market of 2024: A More Balanced Landscape

Over the past year, the Colorado Springs real estate market has shifted to a more balanced state, offering a middle ground for both buyers and sellers. Let’s take a closer look at the latest data for the Pikes Peak region.

Infographic of Colorado Springs real estate stats for February 2024 including average home price, amount of inventory, days on market and overall sales

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Home Prices in Colorado Springs

Price growth decreased by almost 5% from February 2022 to February 2023, while interest rates climbed by 2.5% within just 12 months. The higher interest rates resulted in a 20% hike in monthly mortgage costs compared to the previous year.

The average sales price decreased by about $11,000 month over month, but there was still an increase of 2.2% year over year. A slow but steady value increase is indicative of a more normalized real estate market compared to the frenzy of 2021.

Related Reading: 10 Ways to Lower Your Mortgage Payment

Chart of 2024 Home Price Forecasts

Source: Pikes Peak Association of REALTORS

What happens when interest rates dip?

At the start of 2024, there was a very brief flurry of buying activity when interest rates dipped into the 6’s. This brought hope to sellers and buyers, but the activity abruptly cooled as interest rates climbed back up to 7%. At the beginning of March, mortgage interest rates started trending down again and we immediately we saw a strong increase in showing activity. This pattern proves without a doubt that buying activity is directly linked to interest rates, and the market reaction has been surprisingly quick. Buyers are ready: they have their pre-approval and spring to action when the right house comes on the market.

Interest rates have been fluctuating with the various economic reports like the Consumer Price Index and job reports. For example, the creeping inflation values of the past few days along with the sustained strong labor market had the interest rates inch up again to 7%. This has many experts thinking that a Federal Reserve Board interest rate reduction is further down the road than previously predicted.

Related Reading: Tips for Choosing a Lender

Inventory Relief

The Colorado Springs market had a 26% increase in homes for sale compared to this time last year. With 1,830 homes for sale at the end of February, that’s the highest inventory we’ve seen since 2016! Sellers are ready to move on after feeling locked into their current homes with super low mortgage rates. Home sellers are hopeful that this year will be better in terms of pricing and rates, and they are just done waiting for that perfect time to sell. More supply paired with lower buyer demand should result in more choices for buyers even if the home prices have not become less expensive.

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Sales Activity

The number of sales has been steady since October of last year. We’ll likely see this number tick up as we move further into the busy moving season.

Tips for Home Sellers in Colorado Springs

In previous reports, we have recommended that sellers should have their home perfectly prepared for buyers and this continues to be true. While the average days on market is at 53 days, strategically priced and very well-presented homes literally fly off the market. We recently had a listing go under contract in just 4 days because the sellers worked hard to optimize their home for photographs and showings.

  • Price Strategically: Overpriced homes will sit longer on the market. The longer a home lingers on the market, the more likely it is that potential buyers will wonder if there is something wrong with the property.
  • Prepare Diligently: Buyers want a move-in ready home. Now is the time to address any overdue maintenance, deep clean and declutter. Consider getting a prelisting inspection and address any problems without the stress of contract deadlines!
  • Reach out to us to request a detailed home evaluation and market analysis or to schedule a listing consultation.

Related Reading: Steps to Sell a House

Tips for Buyers in Colorado Springs

  • Get preapproved for a mortgage so you can move quickly when a home you like comes on the market.
  • Work with a trusted lender and real estate agent to figure out a way to reach your goals even while interest rates hover around 7%.
  • Don’t try to time the market. Make your real estate move when the numbers and timeline work for your situation.
  • Connect with us for to schedule a discovery call and we can start creating your personalized strategy to buy a home in 2024.
  • Expect buyer activity and competition to jump with any interest rate dips.

Related Reading: Steps to Buy a Home

The key point is that sellers and buyers are done with waiting and eager to move on with their lives. This means we are entering a more balanced market and we’ll start to see more overall movement in the market.
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