2022 so far has been a wild ride in Colorado Springs real estate. We’ve seen historic lows for inventory and highs for home prices. It seemed like buyers practically had to sign over their first born to get under contract in the first quarter. And we’ve seen a swift and drastic shift to market dynamics in May, June, and July as interest rates increased, buyer demand cooled a bit, and inventory (finally!) started increasing.
July 2022 Colorado Springs Real Estate Snapshot:
Units sold:
We had about 300 fewer closed home sales in July than June. It’s important to keep in mind that real estate stats are always behind because they reflect what was happening in the market 4-6+ weeks ago. That means our July 2022 stats reflect homes that went under contract in May and June since it usually takes about 30 days to close a home transaction.
This is particularly impactful when considering that May and June are the busy moving months in Colorado Springs and all real estate stats are usually pretty high during this part of the year. Interest rates were higher earlier in the summer than they are today which caused many buyers to take a break and reassess their personal buying situation.
Homes for sale:
As always, the number of homes for sale is always just a snapshot of one day. However, there is no denying that we’ve seen a significant change in inventory. In fact, Colorado Springs and the surrounding areas had a 100+ increase of inventory per week in the month of July compared to July 2021.
Average sales price:
The sales price went up! By a staggering $6,000 over June?! Does that mean we are getting back to the “old” fast market? It would be easy to come to this conclusion if you only look at the average sales price.
But the median sales price tells a different story. Median sales price in Colorado Springs went from about 495k in June to 482,500 in July. That’s a staggering $12,500 decrease month over month, even though it is still an increase compared to last year.
Why was there such a significant decrease in median sales price when the average sales price went up $6,000? The Colorado Springs area had a significant number of closings over $1 million in July. We had one $6 million and six $2 million listings that closed and this skewed the average home price higher. The median home price gives a more realistic picture of how home prices are trending in Colorado Springs.
Days on Market:
Days on market doubled compared to last year. The chart below gives additional context. In the $300,000 – 500,000 price range, nearly 50% of active listings had at least one 2.4-3% price reduction. The days of throwing a house on the market for an easy sell are gone. Diligent preparation, strategy and detailed price review is what has the highest chance of working.
What’s next?
Sellers:
- Inventory has climbed 10 consecutive weeks in a row. More inventory + less demand + seasonal slowdown = lower prices.
- You’ll still find multiple offers for listings under $400,000, but nothing like it was 6 months ago. Prices have slowed in every other price range.
- Price your home competitively and diligently prepare and stage your house. The better your home looks, the better the photos will be. Great photos generate showings, showings generate offers. Consider offering seller concessions to assist buyers who are facing closing cost hurdles with this new mortgage landscape. Your task at hand: to convince buyers that your house is the best value for the money.
- Remember, if you’re planning to buy another home after you sell, you will likely enjoy less competition, more time to home shop and make decisions, and maybe even more room to negotiate terms.
- Reach out to us even if you’re just considering selling a home in the near future. We can help you strategize about how best to prepare your home and keep you appraised of what’s happening in the market in real time.
Related Reading:
Tips for Sellers Navigating the Market Shift
Steps to Sell a Home
Pricing Your Home to Sell
What’s my home worth?
Buyers:
- Rental rates are projected to continue to rise. If you are financially ready, you can stabilize your housing costs by buying a house.
- Keep up with inventory, pricing and market movement. Most importantly, be prepared with a pre-approval. This will allow you to better judge whether a house is a good fit for you or not.
- Mortgage rates might not be as high as you think. They change almost daily and there are some great opportunities to wait for the right moment to lock. In the meantime, work on improving your credit score.
- There is more home inventory. This means you might not have to compete and seller contributions and negotiations are back on the table.
- Reach out to us to come up with a plan. Even if your plan is 2 years from now, we can work with you to come up with a specific strategy to help you achieve your home ownership goals.
Related Reading:
Steps to Buy a Home
10 Ways to Lower Your Mortgage Payment
Tips for Choosing a Lender
Renting vs. Buying
As always, reach out to us with any questions. We’re happy to help you come up with a plan to meet your real estate goals in 2022 and beyond. Call 719-219-9739 or email susanna@co-regroup.com.
Homes for Sale in Colorado Springs
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