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March 2024 Colorado Springs Real Estate Update

Posted by Sarah Steen on April 18, 2024
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infographic with Colorado Springs real estate statistics for March 2024

Seller's Guide

Real Estate Market Activity in Colorado Springs

Slow Start to Moving Season:

This time last year, interest rates were almost 1% less than now and we saw a big bump in market activity as our moving season kicked off. Real estate in Colorado Springs has been a plateau since December. The number of homes for sale has been hovering around 1800 each month, while home sales have lingered just under 1000. This time last year our spring moving season coupled with slightly lower interest rates nudged the home sales above the 1000 threshold. We haven’t yet seen a similar bump this year.

High Interest Rates:

Last week the Consumer Price Index came at 3.5% and buried all hope that an interest rate cut will happen soon. Add geopolitical conflicts and the S&P and the DOW tumbled to new lows by the end of last week. This resulted in mortgage interest rates landing at 7.4% as of April 16.

Emotions Running High:

We are noticing quite a bit of hesitancy and reluctance to commit among buyers. This is due to a number of factors:

  • More choices with increased inventory
  • Higher interest rates
  • Worry that a house they like better will come on the market
  • Fear that they will buy a lemon if the seller isn’t willing to repair every small issue

Emotions run high on the buying and selling side of real estate. Buyers are scared they are paying too much for a home and possibly not getting exactly what they want. Sellers are scared that the higher interest rates go, the lower their sales price might sink.

Related Reading: 10 Ways to Lower Your Mortgage Payment

TLDR: More Inventory, Higher Rates Mean Fewer Home Sales

Inventory and Sales:

The number of homes for sale in Colorado Springs in mid-April jumped by 200+ units. Sellers have officially started the spring moving season, while buyers are taking their time to make an offer. This dynamic is reflected in the increase in average days on market.

New Construction:

Rising interest rates have motivated buyers to turn to new construction homes more than ever. Builders are offering their buyers more value and huge amounts of sellers concessions to buy down their interest rates. In fact, the National Association of Homebuilders published their numbers of Existing home sales vs New home sales and it shows that 1 in 7 sales is a new construction home.

An important note about those big sellers’ concessions:

Make sure that you have a realtor by your side that is familiar with how these concessions can be spent. We have noticed that the preferred lender’s offered interest rate isn’t always what is best the client. Work with a knowledgeable real estate agent to explore the various avenues to use the seller concessions.

Related Reading: Where to Find New Construction in Colorado Springs

Tips for Home Buyers in Colorado Springs

  • Explore financing options.  It is more important than ever to have a knowledgeable lender by your side that lays everything out for you and helps you understand that it is not necessarily the price of the house but the monthly payment.
  • Understand obligations and risks. A temporary interest rate buy down will help you for the next 2 or 3 years, but do not count on the ability to refinance during that time. There are a number of factors influencing interest rates and a lower mortgage rate is not guaranteed.
  • Choices. Increased inventory on the market means buyers have more choices than they did 4 months ago which is the great benefit of our spring market.
  • Reach out to us to start creating a personalized home buying plan.

Related Reading: Steps to Buy a Home in Colorado Springs

Tips to Sell a Home in Colorado Springs

  • Pressure. Sellers are ready to move on regardless of what the interest rates do and this is creating some movement in our market. It’s important to remember that increasing interest rates put additional pressure on accurate pricing for your home.
  • Condition. You’ll need to ensure that your home is diligently repaired, cleaned, maintained and staged when you list it. Don’t shy away from going the extra mile to make your house more marketable and attractive to buyers. While the average days on market is currently 56, we regularly see homes go under contract much faster than that when they are prepped and priced well.
  • Price. This is the most common mistake we see sellers on the market making right now. Pricing too high will cause your home to sit on the market longer which makes it more difficult to sell.
  • Showings. Ensure your home is ready to show! It’s stressful to have last minute showings, but allow showings whenever possible. The average number of showings each week in Colorado Springs is 2-3 and it takes about 12 showings to generate an offer. The more showings you allow, the more likely it is that you’ll snag an offer quickly.
  • Reach out to us for a free value estimate and consult.