September 7, 2023
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my “Special Brand of Customer Service”, it is my desire to share current Residential real estate issues that will help to make you a more successful and profitable Buyer and Seller.
LOTS OF GOOD NEWS TO SHARE…
I’ve had questions about where the Residential real estate market is headed here in Colorado Springs since a number of folks have been concerned about the high interest rates.
Well, I’m here to tell you that despite the highest mortgage rates since 2001, the housing market is in great shape, both here and nationally.
In fact, just this week the 2023 home price forecasts from seven organizations were revised. As you can see in the chart below which provides the original 2023 forecasts that were released in late 2022 for what would happen to home prices by the end of this year, the most recently released forecasts are much more in line with what I predicted for the same period.
In all instances, the original forecasts called for home prices to fall. But when you look at the right column, you can see all the experts have updated their projections for the year-end to show they expect prices to either be flat or have positive growth. That’s a significant change from the original negative numbers.
Most important to note: DO NOT BELIEVE EVERYTHING YOU READ OR HEAR ABOUT RESIDENTIAL real estate. We are approaching the time of year when the market typically slows so if you read that homes are NOT selling as quickly, well—that’s normal. Last year the media said that home prices would fall significantly and that did not happen.
It’s also so important to localize everything—especially Residential real estate. We have a thriving city that will continue to thrive with all the new companies relocating here. If there were more available homes for sale, we would see far greater sales no matter the high mortgage rate.
And speaking of the mortgage rate, that is not a problem either. Rates WILL go down in the next few years and as they do, mortgage loans can be refinanced at those lower rates. In fact, some buyers have that specifically put in their loan package, depending on the lender.
The most important thing to remember is that there are always folks who need to buy and those who need to sell. If you are even considering your options, the time to talk about it is NOW.
So, yes, things are looking up in Residential real estate and if you’ve even considered buying or selling during the past year and held back for whatever reason, give me a call and let’s see how we can make that happen.
And, if you’ve got a minute and a half, I’ve got some more news for you. Simply click on the link below and you will be directed to my personal YouTube channel.
To watch, click here:
https://youtu.be/VDA1XsWWgOo
In fact, while you’re at it, you might want to subscribe to my channel, so you won’t miss my future broadcasts. It won’t cost you anything…well, it could cost you… if you miss some of my informative musings!
So, as always, if Residential real estate is among your current hopes and dreams, please give me a call at 719.593.1000 or email me at Harry@HarrySalzman.com and let me help make them come true.
And now for statistics…
AUGUST 2023
Statistics provided by the Pikes Peak REALTORS Service Corp., or it’s PPMLS
Here are some highlights from the August 2023 PPAR report.
In El Paso County, the average days on the market for single family/patio homes was 27. For condo/townhomes it was also 27.
Also in El Paso County, the sales price/list price for single family/patio homes was 99.4% and for condo/townhomes it was 99.5%.
In Teller County, the average days on the market for single family/patio homes was 47 and the sales/list price was 103.9%.
Please click here to view the detailed 10-page report, including charts. If you have any questions about the report or to find out how it relates to your individual situation, just give me a call.
In comparing August 2023 to August 2022 for All Homes in PPAR:
Single Family/Patio Homes:
· New Listings were 1,407 Down 21.9%
· Number of Sales were 1067, Down 21.9%
· Average Sales Price was $553,959, Up 4.4.0%
· Median Sales Price was $480,000, Down 0.1%
· Total Active Listings are 2,420, Down 8.3%
· Months Supply is 2.3, Up 0.4
Condo/Townhomes:
· New Listings were 230, Down 9.1%
· Number of Sales were 189, Down 12.1%
· Average Sales Price was $361,131, Down 0.1%
· Median Sales Price was $347,500, Down 0.7%
· Total Active Listings are 352, Up 53.7%
· Months Supply is 1.9, Down 4.4
AUGUST 2023 MONTHLY INDICATORS AND LOCAL MARKET UPDATE ILLUSTRATE OUR LOCAL TRENDS IN DETAIL
Colorado Association of REALTORS® , Pikes Peak REALTORS Service Corp, or it’s PPMLS
Providing greater detail than the above report, this contains information on both El Paso and Teller counties for Residential real estate.
The “Activity Snapshot” for all residential properties in El Paso and Teller counties shows the Year-to-Date one-year change:
- Sold Listings for All Properties were Down 22.7%
- Median Sales Price for All Properties was Down 2.1%
- Active Listings on All Properties were Down 14.0%
You can click here to read the 16-page Monthly Indicators or click here to get specific information on the geographical are of your choice from the 18-page Local Market Update. It’s a good idea to check out your own area or one that you might be considering in order to get a good idea of the local pulse. As an example, here is a detailed report on the Colorado Springs area:
COLORADO SPRINGS RANKS #89 IN THE Q2 FHFA HOUSE PRICE INDEX
Federal Housing Finance Agency, 5.30.23
The recently published FHFA House Price Index for first quarter 2023 lists Colorado Springs as #89 out of the top 100 in house price changes during that quarter.
While we are still in the top 100, we fell 58 places from last year. Our lack of available homes for sale has kept us from ranking considerably higher and I am hopeful that things are beginning to turn around in that area.
It should be noted that we are still ranked higher than Denver! A definite plus and assuredly not lost on companies looking to relocate to Colorado.
Here is a copy of the Colorado Springs changes:
Here is the list of 100 measured cities in ranking order:
WHY IT’S STILL A SELLER’S MARKET TODAY
Keeping Current Matters, 9.4.23
Even with activity in the housing market slowing from the frenzy of recent years, it’s still a seller’s market due to the historical lack of available homes for sale.
What exactly does that mean and more importantly, what does that mean for you if you want to sell your home today?
The most recent Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Housing inventory is measured by the number of available homes on the market. It’s also measured by months’ supply, meaning the number of months it would take to sell all those available homes based on current demand. In a balanced market, there’s usually about a six-month supply. Today, we have only about 3 months’ supply of homes at the current pace. (see graph below):
As the visual shows, given the current inventory of homes for sale nationally, it’s still as seller’s market.
We are nowhere near what’s considered a balanced market today. In fact, the current months’ supply is half of what’s typical of a normal market. That means there just aren’t enough homes to go around based on today’s buyer demand.
According to Lawrence Yun, NAR’s Chief Economist: “There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”
Attention Sellers:
These conditions give you a real edge. Right now, there are buyers who are ready, willing and able to purchase a home. And due to the shortage of homes for sale, the ones that do hit the market are like magnets for those buyers.
Bottom Line:
If you are wanting to sell and trade up or move to a new neighborhood, today’s market sets you up with a big advantage when you sell your home. Due to the low supply your home will be in the spotlight for motivated buyers who are craving more options.
If this is something you have considered, please give me a call and let’s discuss all your options.
ECONOMIC & WORKFORCE DEVELOPMENT REPORT
Data-Driven Economic Strategies, August 2023
As always, I like to share the useful economic data I receive from our “local economist”, Tatiana Bailey. You will see in these charts what’s happening locally in terms of the economy as well as the most recent Workforce Progress Report.
This information is especially invaluable to business owners; however, I think you all will all find it worthwhile reading.
To access the report, please click here and if you have any questions, please give me a holler.
