Home Prices up 6.49%
Average Home Price December 2019: $364,584 (compared to $340, 907 in Dec 2018)
In winter months, the Colorado Springs market typically experiences fairly flat home prices, and this winter is looking like it will continue that trend based on the average home price change from November to December. While there was a slight decrease in average home prices during this time period, we had increased buyer activity and a huge reduction in availability inventory. This pushed many buyers into higher price brackets and influenced a 6.49% increase from December 2018. This impact was reflected in the $400-600k price range. Curious about how much your home might be worth? Click here for a free home value estimate.
Inventory down 22.7%
Homes for sale at the end of December 2019: 1,302 (down from 1,668 in Nov 2019)
I was not surprised to see that the home inventory was even lower than 2018’s lowest number (1,462). As a real estate professional or a home buyer, you definitely feel it throughout the month when inventory is low. There are fewer options to work with and it can make finding the right home a challenge. Inventory is a number to pay attention to as we continue through our typical winter real estate lull until March when folks start listing houses in anticipation of summer moves.
Related Reading: Tips to Find Your Dream Home
Number of Homes Sales up 17.2%
Single Family Homes Sold in December 2019: 1,247 (compared to 1,064 in Dec 2018)
Home sales were significantly up despite the challenge of low inventory. Many potential buyers jumped into the active buying pool as home affordability slightly improved with decreased interest rates and December home prices. Buyers were definitely active in December, and they weren’t just shopping for holiday gifts. This is a trend reflected in many markets across the country.
Days on the Market decreased by 6 Days
Days on Market December 2019: 34 (compared to 40 in Dec 2018)
The increased buyer activity is reflected across the board, including a 6 day decrease for days on the market.
What will the rest of the winter season look like?
While we are still in the real estate winter lull, I believe that the trend of buyer activity will continue along with a slight uptick in inventory each month until we start to see the larger inventory jumps in March. Buyer interest will remain strong. The buyers that couldn’t find their dream home in December and folks who decided to make a change in the new year are out in full force looking for homes. If you happen to find a home that has been on the market awhile, you should be able to purchase that home with a reduction. 15-20% of homes under $600,000 end up selling with a total list price or sales price reduction between 2-16%.
Why would you put your home on the market now?
The easy answer is that there are a lot of under served home buyers still shopping. The low inventory means less competition for your home. Home prices are seasonally lower which means you might net a bit less. But if you’re planning to buy a home in Colorado Springs after your sale, you can potentially save $5,000-10,000 on your home purchase in addition to the continued low interest rates. If you’re curious about selling your home, contact us at firstname.lastname@example.org or click here for a free home value estimate.
Remember, our real estate team is always here to help and answer questions. Contact us at 719-321-0800 or email email@example.com.