The Colorado Springs real estate market is different than the rest of the country. Our home prices are still clearly trending up. The news will tell you that there is a significant real estate slowdown across the nation, but we have not felt it in Colorado Springs. The city is growing and our diligent city planners are working day and night to accommodate this growth. People who move here need a place to live, and that demand is keeping our market strong. Take a look at our snapshot below.
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Fact: Overall number of single family homes sold
There was a 2.8 % decrease in homes sold from January to February this year, but we also had fewer homes for sale. Year over year there was a decrease of 1.5%. Nothing to worry about.
Fact: Number of homes for sale
Buyers want to breath a sigh of relief when they see that available home inventory climbed to 1,518 (a 23.5% increase from last year). But compared to January 2019, there were still about 100 fewer homes available to buyers. This means that the market below $300,000 remains very competitive for buyers.
Fact: Average sales price
Whether you compare the $350,736 average sales price to last year ($331,104) or January of this year ($343,989) the the average home price climbed – period. It increased by 5.9% from last year, and this trend will likely continue with the moving season starting up.
Fact: Average days on market
It’s deceiving to see the days on market increasing. This is partially due to the increasing amount of new construction inventory homes. These listings remain on the Multiple Listing Service (MLS) from the beginning of construction until they are under contract.
Strategy for the home buyer:
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- Act Fast: If a home is priced right, get your offer in within the first 24 hours. Don’t lowball, give it your all, so that when you don’t get it you have given it your all, and you can shrug your shoulders and move on.
- Pay Attention to the Market: Look for homes that were overpriced and have been on the market a bit longer. A home like this could be your opportunity snag a house without the stress of other competing offers.
Real world example: I was recently working with buyers when a home originally listed at $329,000 popped up in our listing alerts with a price reduction to $319,000. It was a great house and we jumped on it immediately. Ultimately, we did not win the contract because of multiple competing offers at the reduced price. While no one wanted to look at the home when it was listed at $329,000, it ended up selling for $326,000 ($3,000 less than the original list price for those of you keeping track!). If we had seen the home and determined that the home was just a bit overpriced and come in with a lower offer, we would have had a successful contract and avoided a few gray hairs from the multiple offer stress.
Related Reading:
Strategy for the home seller:
There are so many (home buyer) fish in the pond for you. Home buyers are willing to offer and pay your list price if your home is in the best possible condition and you have staged your home properly. Professional photography can get buyers into the home, but home sellers will have to do their part to get the home sold. Sellers will ask: will I get my money back from improvements? When it comes to small changes in the home like painting, touching up worn wood and corners, and staging: absolutely. It takes some time, elbow grease, and a small investment, but it really pays off!
Pro Tips:
1. Have the carpet replaced instead of giving a carpet allowance. It will show much better and generate offers more quickly and possibly for more money.
2. Unless you have impeccable tenants with great furniture, wait until your tenants are out of the home to put it on the market!
Related Reading:
- Download our Pre-Listing Sellers Guide
- Sellers Frequently Asked Questions
- Home Selling: How Much Will I Make?
©Copyright 2018 Pikes Peak REALTOR® Services Corp. All rights reserved. Unauthorized reproduction is prohibited. Based on information from the Pikes Peak REALTOR® Services Corp. (“RSC”) for the period February 2018 through February 2019. RSC information may not reflect all real estate activity in the market and is provided as is without warranty or guaranty
