Prices have steadily risen but are slowing down as more homes hit the market. However, high prices and rising interest rates are thinning out the number of active buyers. The countrys economic power directly affects the housing markets in the US. The forecast for the next year predicts a continued slowdown in price appreciation and sales volume, but it is still expected to remain a seller's market. That's a 109.6% increase from this same time last year. If you are going to price your home high, there are chances that you may detract potential buyers. Sellers are reducing prices as homes stay on the market longer. Another important metric to consider is the Percent of List Price Received, which dropped to 98.5%. Prices are just now starting to level out. The average home value in Colorado Springs is currently $441,691, which is down 0.4% over the past year. It defines the composition of the population based on age, race, gender, income, migration patterns, and growth. Additionally, the median sales price has decreased slightly while the average sales price has increased. This article covers twelve of our favorite neighborhoods in Colorado Springs. Looking for a FSBO home? Delaware was next, with one out of every 2,387 homes in some stage of foreclosure. However, it largely depends on the location and the number of rooms you want to stage. This came into effect on January 1st, 2019. The nationwide housing boom reached a new high in March, when home prices increased by more than 11%. Most economists would agree that a housing bubble does exist. Selling FSBO in Colorado is more popular and high-tech than ever. Apr. Colorado Springs regulations on short-term rentals are not as stringent, though, as those in nearby tourist towns like Breckenridge. This indicates that the rate of existing home sales has slowed to its lowest level in 10 years. As the Fed attempts to control inflation by increasing mortgage rates. With more search options than any other local website. Save this search to receive updates of new listings. Colorado Springs allows properties to be rented out on a short-term basis, but you must have a short-term rental permit and collect the appropriate taxes. This drop in average sales price could be attributed to the increase in inventory of active listings, which increased by 59.3% year-over-year. The three most important factors when buying real estate anywhere are location, location, and location. For a borrower, multiple types of mortgages are available such as adjustable rate mortgages (ARM), conventional loans, fixed-rate mortgages, and government-sponsored. For the eighth month, existing-home sales declined to an adjusted annual rate of 4.71 million. Additionally, the median sale-to-list ratio for January 31, 2023, was 0.989, and 19.2% of sales were over list price, while 58.3% were under list price. The Colorado housing market has experienced a significant surge in demand and price appreciation during the past two years, making it a challenging environment for buyers to find affordable homes. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Inventory of Active Listings increased by 59.3% year-over-year. Unlike the crash of 2008, many homeowners now have substantial equity. Housing Market Crash Looms Large as Americans Sell Homes. Lenders today place high standards on borrowers, and most who get mortgages have excellent credit. Current Housing Market Trend 2022: The median days on the market was 29 days, up 13 year-over-year. Conversely, the high price of a property in Denver is driving many businesses to move or expand south into the Front Range, bringing Denvers jobs closer to the Colorado Springs housing market. The Colorado housing market is amid a major shift. Were standing by to help you take the guesswork out of real estate investing. You can sell your house to cash buyers, IBuyer, or anyone else. Days on Market Until Sale is another crucial factor to consider, and it is up by 103.1% year-over-year. 30-Year Fixed Mortgage Rate ranges from 6% to 7.1%. These are Cash-Flow Rental Propertieslocated in some of the best neighborhoods of Colorado Springs. Learn what happens to the Colorado housing market during a recession. Inventory is back to pre-pandemic numbers and starting to create a buyer's market. According to some industry experts, the most likely scenario is that home prices will begin to climb more slowly in the months ahead. The average size for a Colorado Springs, CO apartment is 837 square feet with studio apartments being the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. See: 8 Places In California Where Home Prices Have Plummeted More: 3 Things You Must Do When Your Savings Reach $50,000 Using data from sources that include the U.S. Census Bureau, the Consumer Financial Protection Bureau, the 2020 American Community Survey and RealtyTrac, GOBankingRates identified the 40 cities most at risk for experiencing a widespread housing crisis. Population growth in Colorado Springs has been just ahead of new home construction; housing permits in the Colorado Springs real estate market, for example, are not yet back at 2005 levels. Here are a few Colorado housing market predictions for 2023 based on the experts forecast. Colorado houses cost more or less. The information set forth herein has been obtained or derived from sources believed by the author to be reliable. There are no actual signs of a housing market crash in Colorado Springs, but a shift is happening. 73% of Sellers said they would use the same agent again. You can also co-host clients in Colorado Springs through profit sharing with landlords. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates. A side benefit of this diverse military market is that the Colorado Springs real estate market enjoys a large, permanent population of renters but without the wild swings that come with the rise and fall of a single military bases fortunes. Affordability becomes difficult for homebuyers. Skip to content. However, if the economy were to take a downturn, it could lead to a decrease in demand for homes and a subsequent drop in prices. The area is growing both as an outer suburb of Denver and for its reasons, making it the fourth-largest city in the state. Unless you have plans to downsize, rent, or relocate to a more affordable area, youll only be selling and entering the bubble. This metric has gone up by 103.1% year-over-year, suggesting that homes are taking longer to sell than they did in previous years. On the flip side, more and more people are starting to cash out on their equity by borrowing against their property. A housing market bubble starts to form when mortgages are available at low-interest rates, substantial job growth, and lenders easily avail the loan. An increase in interest rates makes homeownership unaffordable for more potential buyers. His mission is to help 1 million peoplecreate wealthandpassive incomeand put them on the path tofinancial freedomwith real estate. Should you buy a house or continue to rent in 2023? Buying a home is critical to your American dream, but should you buy a house or continue to rent? El Paso County is a significant housing market in Colorado, with a population of over 700,000 people. Lenders used to offer mortgages to anyone without doing any prior credit checks or down payments. Looking at the MSA level forecast for Colorado, we can see that Denver, Boulder, and Fort Collins are expected to experience a decline in housing prices in 2023-2024, with Denver projected to decrease by 1.6% by February 2024. https://www.zeonamcintyre.com/blog/2018/1/26/airbnb-investing-trip-colorado-springs-edition In El Paso County, that would mean our home prices would drop to between $392,700-$448,000. However, sellers can benefit from selling a house if the following factors favor them. According to ATTOM, Illinois had the most REOs (493), followed by New York (337). Copyright 2023, Great Colorado Homes INC. |. How To Buy a House in Colorado with Bad Credit, Who Pays Buyers Agent in For Sale By Owner, 12 Best For Sale By Owner Websites in 2023, How to List On MLS For Sale By Owner Without a Realtor (2023 Update), 10 Best Companies That Buy Houses for Cash (2023 Rankings), Flat Fee MLS: Everything You Need to Know, Americas 10 Best Discount Real Estate Brokers and Companies (2023). Buying a home solely for selling will only increase inventory. Their airport offers direct flights to many cities via Frontier & United. Colorado Springs recently experienced the strongest "seller market" we have ever seen. The average rent for a 1-bedroom apartment decreased by -1% to $1,195, and the average rent for a 2-bedroom apartment remained flat. https://morrisinvest.com/blog/2016/12/21/5-most-landlord-friendly-states Closed sales of single-family homes were down by almost 19.6% from last year. We have double the number of available homes for sale as we did last year. Fees and taxes can vary from one county to another in Colorado. This has led to an increase in home prices across most regions of the state, making it difficult for buyers to find their dream homes. Selling a house is not an easy task in a slow market. CHANCEY BUSH, THE GAZETTE Construction crews work last. A change in family dynamics can significantly impact your decision to sell your home. Now that the housing market Colorado is threatened by a similar instance of rising mortgage rates and the possibility of a recession, buyers and homeowners are asking a familiar question: When will the housing market crash in Colorado? This results in defaults and foreclosures, ultimately increasing the market supply of homes. 2022 California Housing Market Forecast is expected to be . This means well-designed condos and duplexes in the right areas are as attractive to them as a large house in the suburbs. This eventually decreases the demand for housing, resulting in a drop in home prices. Buyers might consider a mortgage with short due dates and high payments. According to housing economists, there are five significant reasons why the market will not crash anytime soon: Low inventory, Lack of newly constructed housing supply, Several new buyers, Strict lending standards, and a Drop in foreclosures. As the mortgage rate decreases, it gets more convenient for the homebuyer to afford a home. While the demand in some areas is expected to ease down, there will be new demand from new buyers and investors alike. Get the list of best for sale by owner homes in your area. As a result, leaving no other option than low inventory. Overall, the Colorado Springs housing market seems to be experiencing a balanced shift towards a buyer's market, with a reasonable inventory of homes available for sale. The decrease in new and sold listings has contributed to an increase in the inventory of homes for sale by 92.3%. Search Homes ByZip Code Map In September, pending home sales fell for the fourth consecutive month, falling month over month by, Housing affordability declined significantly in. The speed of our local market is causing some folks to try and sell their home without a Realtor (FSBO). This is good news for buyers who may have been priced out of the market in the past. The personal balance sheets of homeowners are much stronger today than they were 15 years ago, which is a clear difference between now and then. But the Colorado housing market checked even more boxes as we entered 2021. Subscribe to get our top real estate investing content. A few sellers are still in a dilemma considering the slow market, high inventory, decreasing home prices, and increasing mortgage rates. According to the Colorado Association of Realtors, the median single-family home price in Colorado topped $500k for the first time in April of last year and has now dropped to $536,000. Dallas county was a seller's real estate market, which means that there are more people looking to buy than there are homes available. Despite the very large population over the age of 65, Colorado Springs managed to have a median age of 34, several years below the national average. In conclusion, the Colorado housing market has been a challenging environment for buyers in recent years, with high prices and limited inventory. Colorado Springs has been on a 10-year price increase with no end in sight. ProfessionalColorado home staging largely involves cleaning, rearranging, or renting furniture and other aesthetic tactics to make your home visually appealing.