In August 2022, lenders repossessed 3,938 properties in the United States through completed foreclosures, also known as real estate owned, or REO. Home prices have been steadily rising for the last two years. Maybe you have done a bit ofreal estate investing in Colorado but want to take things further and make it into more than a hobby on the side. Research comparable house sales in the area and undercut them. If youre not planning to stay in the real estate property for a long time, do not buy it. Some experts predict that due to low inventory, home prices wont drop in 2023. The bubble pops up when the equation is reversed. While there is always a risk of a market crash, it is unlikely to happen in the current scenario. An increase in interest rates makes homeownership unaffordable for more potential buyers. Sellers are reducing prices as homes stay on the market longer. The Colorado housing market is amid a major shift. Another important metric to consider is the Percent of List Price Received, which dropped to 98.5%. Forget the Mile High City and invest in the Colorado Springs real estate market. Houzeo.com helps you sell your home fast in a slow market by listing your house on MLS. https://www.realtor.com/realestateandhomes-search/Colorado-Springs_CO/overview S everal areas of Colorado are expected to experience a massive rise in property taxes because of changes in the state's housing market. Around 16% of Americans have bad credit. Once your house sells, youll need to buy another one, so youll have to bid against other buyers in an overvalued market. That just seems absurd. The tight labor market is drawing people to the area and keeping college graduates in the vicinity. Current Housing Market Trend 2022: Mortgage applications were 41% lower than a year ago. Economists believe the housing market will slow down but not crash soon. Colorado Springs Real Estate; Columbia Real Estate; Columbus Real Estate; Dallas Real Estate; They can be fixed, remaining constant over the loan term, or variable, fluctuating with a benchmark interest rate. 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. A change in family dynamics can significantly impact your decision to sell your home. There were 1,414 new listings submitted to our MLS last month. This could indicate that buyers are taking longer to find the right house, or sellers are being more cautious and waiting for the right offer. You can convert your property into an Airbnb vacation rental and rent it out to vacationers and tourists on a short-term rental basis. Some experts also believe that the 30-year and 15-year mortgage rates could drop to 6.0 percent and 5.25 percent, respectively. Once you give them a demand for compliance, they have 72 hours to either pay up or move out. Also, the median days on the market might reach up to 35 days or more in the next year, with a current avg of 29 days. https://www.neighborhoodscout.com/co/colorado-springs/real-estate/ Fort Collins and several other cities on the Front Range hit the top ten list due to factors like relatively low cost of real estate in the Fort Collins housing market, high education levels, low taxes, and strong business incentives. . Housing Market Crash Looms Large as Americans Sell Homes. A closing costs calculator for buyers gives you an estimate of your closing costs while buying a house after deducting local closing costs. This ongoing scarcity of inventory explains why many buyers are still forced to bid up prices. You must make the deal look more attractive to sell your house in a slow market. The area is growing both as an outer suburb of Denver and for its reasons, making it the fourth-largest city in the state. Yes! Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. As mortgage rates are at record highs in 20 years by 7.08%. This is partial because Millennials are the biggest group buying houses today, and the Colorado Springs real estate market is already loaded with them. Homeowners are unlikely to trade in their 3% mortgage for a new home with a 7% loan unless necessary. With mortgage rates at peak, buyers are already resisting entering the market. We do not recommend listing with full-servicereal estate agents Coloradoas they charge hefty commissions. The Colorado housing market has been in a state of flux over the past few years due to the surge in demand for homes. Fort Carson, an Army base, is located within the city limits. The Current State of the Housing Market in Colorado Springs *Updated on March 3rd, 2023 Average Sales Price: $500,483 - 2.8% year-over-year decrease Average Sales Price in February 2022: $514,757 Median Sales Price: $465,000 - 5.4% year-over-year decrease There were only 705 active listings this time last year. As a result, there are more people looking for lower cost, adjustable rate loans. Experts predict that mortgage rates will continue to climb because of continued inflation, potential recession, and geopolitical tensions. The infamous Cheyenne Mountain is located just to the west of town. 51% of homeowners still believe that now is a good time to sell a home. Buying a home is critical to your American dream, but should you buy a house or continue to rent? Buying a home solely for selling will only increase inventory. A real estate agent or broker was used by 86% of buyers to purchase their homes. That keeps many college grads here after they finish school while attracting students in the first place. Several county assessors across the state warned that there . Yes, if you are in a stable financial position. The Colorado housing market varies by the overall health of the economy. COLORADO SPRINGS, Colo. (KKTV) - The Humane Society of the Pikes Peak Region (HSPPR) is asking for help from the community after taking in several dogs . That's a 22.9% decrease from one year ago. Additionally, rising interest rates could also affect the housing market, making it more expensive for buyers to obtain mortgages and leading to a decrease in demand. Here's a interactive map of localneighborhoods. Based on the data provided by Zillow, we can expect a moderate increase in the Colorado housing market in 2023-2024. Almost 90% of buyers are represented by a buyer agent who shares access to the local MLS. NORADA REAL ESTATE INVESTMENTShas extensive experience investing in turnkey real estate and cash-flow properties. These trends suggest that the Colorado Springs housing market may be shifting toward a more balanced market, where buyers have more options and bargaining power. We also don't see a major housing crash here in Memphis. Making a strong first impression extends to your homes exterior. Realtors in the Colorado Springs housing market are finding people buying houses even on the south side so they can find a property they can afford, then driving in one or two days a week to Denver. Here are the most recent market statistics to show what has changed. 2022 California Housing Market Forecast is expected to be . Try Our CustomHome Search In conclusion, the Colorado housing market has been a challenging environment for buyers in recent years, with high prices and limited inventory. The Colorado Springs metropolitan area is home to around seven hundred thousand people. Thus, home prices rise. https://www.coloradorealtors.com/market-trends/regional-and-statewide-statistics/ With more search options than any other local website. If one of these variables is taken out of the equation, the bubble pops. The sales data is for Single Family Homes in El Paso County, CO. What are the Colorado Springs real estate market predictions for 2023? The number of mortgage applications received compared to the previous year. The Colorado housing market has shown resilience to economic fluctuations in the past, and its diverse economy and job growth make it less vulnerable to sudden changes. 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. It's a substantial shift that has impacted our market within the last few months. Skip to content. Next year, there might be a chance that it will be a buyers market. The metro-level forecast predicts a decline in home values in Colorado Springs, with a projected decrease of 0.3% by March 2023 and 0.6% by May 2023. This article aimed to educate investors who are keen to invest in Colorado Springs real estate. Overall, it seems like the Colorado housing market is going to be somewhat balanced, with some regions experiencing a decrease in home values and others experiencing an increase. While nearly 20% of homes are selling over list price, more than half are selling under list price. We've all been having will-it-won't-it conversations about a potential housing market crash for at least the better part of a year, but most experts say that a crash isn't likely this spring. One significant factor that could impact the Colorado housing market's future is the state's economy. Buyers are having more success getting their offers accepted. Prices have steadily risen but are slowing down as more homes hit the market. These minor changes indicate a relatively stable market with no drastic shifts expected. Learn about it so that you are aware. The local economy is strong and mortgage rates remain low. In 2021, we recorded record numbers of sales. Industry sectors hiring people include hospitality and professional and technical services. Even as we started into the year of COVID-19, the market was hot and showed no signs of slowing down. https://greatcoloradohomes.com/colorado-springs-real-estate-market-statistics.php The Colorado housing market starts to slow when the properties supply exceeds the present demand. Another solution thats more readily available in Colorado than elsewhere is telecommuting. Not all deals are solid investments. However, it is important to note that the real estate market is unpredictable, and these metrics can change quickly. The 10-year home price trend reflects the median sales price for March 2023, going back ten years. That equals a 110% increase in inventory in just one year. It is important to freshen up the curb appeal before potential buyers arrive. We value your privacy We use cookies to enhance your browsing experience . The pent-up demand for housing is expected to be supplied between 2025 and 2030, according to the National Association of Home Builders. However, it largely depends on the location and the number of rooms you want to stage. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Colorado Springs, Colorado. Peterson Air Force Base sits on the eastern edge of town. Months supply was up by almost 100% to 1.4 months, which is a sign that Colorado is a seller's real estate market. These are Cash-Flow Rental Propertieslocated in some of the best neighborhoods of Colorado Springs. Heres our guide. Theres a strong demand for homes across various demographics. Inventory is back to pre-pandemic numbers and starting to create a buyer's market. 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. Buying a home might not build equity as quickly as expected. But the housing task force estimated that the state will need 325,000 new homes over the next few years alone to restore the market to its historic balance and Colorado has struggled to build . Here are the most recent market statistics to show what has changed. However, the changing demographics by 2030 will result in lower demand for new housing, which could lead to a slowdown in construction activity. That's a 109% increase in available homes for sale in one year. Looking ahead to the rest of 2023 and into 2024, it is difficult to predict with certainty what will happen in the Colorado housing market. At the same time, the market is still heavily tilted toward sellers, and it is likely that demand for homes will remain strong. . Sellers have been experiencing record sales prices for the last few years. https://www.avalara.com/mylodgetax/en/blog/2018/10/colorado-springs-passes-new-airbnb-rules.html 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 market has a total sales-to-total listings ratio above 0.2. Most of the homebuying discussed here could apply to any housing market that may or may not be coming up on a crash. 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. A bad cash flow, on the other hand, means you wont have money on hand to repay your debt. The El Paso County housing market is currently experiencing a shift as the median and average sales prices have decreased by 4.9% and 4.2%, respectively, compared to last year. Another major attraction is the US Olympic Training Center, located in Colorado Springs. The Denver metropolitan area is home to around 2.7 million people. Over a given period, the median house price is the middle sale price among all homes ranked from highest to lowest. Colorado Springs's real estate appreciation rate in the latest quarter was around 3.02%, which equates to an annual appreciation rate of 12.63%. As the pandemic continues to evolve, it's important to monitor any potential changes in the housing market and adjust accordingly. Here's what housing data looked like in Feb 2023, which was released by the Colorado Association of REALTORS. 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. July's average home price is $501,138 dollars which is down from the previous month by .04% in June, so it's not too bad. Increasing mortgage rates will surely have a major impact on home sales in 2023. While the market may be slowing down, it is still a seller's market, and prices are expected to continue appreciating, albeit at a slower pace. Search Homes ByNeighborhood As with any real estate purchase, act wisely. 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. Evaluate the specifics of the Colorado Springs housing market at the time you intend to purchase. 2022 Housing Prediction #5: Mortgage rates will be over 6%. Also, get secure & powerful listing using Houzeo Mobile App. Sell FSBO, Sell your home now! The personal balance sheets of homeowners today are much stronger than they were 15 years ago. Weve got you covered. Choosing a real estate professional/counselor continues to be a vital part of this process. The typical home goes to pending in about 33 days, and the median sale-to-list price ratio is 0.994. Sell FSBO! Before you begin, make sure you have a solid financial condition. Here's the latest news about the Colorado Springs real estate market. Best Time to Buy a House: Know exactly when it is best to buy a house!