Weather & Real Estate Market
It’s February 21, 2017 and the temperature outside is 68 degrees with completely sunny skies. WHAT??? Really??? Ever since my husband and I have lived in Colorado Springs (husband, since 1985), we haven’t seen this degree of extreme warmth during what’s supposed to be the snowiest month of weather for Colorado Springs.
Likewise, you can say the same thing about the Colorado Springs Real Estate Market. Over the past twenty years of my real estate career, I can count with my fingers on one hand when the INVENTORY of ACTIVE LISTINGS was actually lower than the number of pending contracts. In other words, things are extremely unusual for both the climate and the market, and realistically, for about every other institution in our country, including religion, politics, and the likes. Everything seems juxtaposed from what might be considered normal.
So, rather than trying to create shock value about our culture or specifically, the market, I have a few words to help you STAND FIRM when the winds of change are furiously blowing.
First, DO NOT BE TOO ALARMED… Last year started similarly as this one, as real estate agent and client alike were frustrated with the perception of having TOO LOW of INVENTORY of listings in our market. It felt like all of us were pulling out our hair to try to best serve our pool of buyers who were scouring around to try to get any affordable home, especially in the price range of $400,000 or less. And this price range makes up 88% of all single-family homes sold in Colorado Springs during 2016.
I do not want to paint of picture of doom and gloom about having a real estate market with low listing inventory. Because in the end, 2016 started its year with extremely low inventory, only 1,052 new listings in January, but as the year progressed, so did its sales. In fact, the year-end sales were 15.6% higher for single-family properties than the total sold figures for 2015, which is really remarkable.
Second, BE PREPARED… What does the beginning of 2017 look like? The winds of change are still blowing. Actually, we are starting a little slower with listing inventory than the previous year, 2016. The number of new listings for January 2017 is 15.4% lower than this time last year. Only 890 new listings were found in our Pikes Peak Multiple Listing Service.
HOW TO BE PREPARED… In other words, get your buying or listing strategy established with a real estate professional. The foundation of your decision-making requires attaining great discernment about the real estate market data, understanding the insight about the number of moving pieces that exist throughout the contract process, and simply, having the kind of trust with your real estate agent that will guide you through to the end of your closing process.
Third and final for this blog, ACT WHEN GIVEN AN OPPORTUNITY… In many cases, especially regarding the $400,000 and under portion of the market, time is not a luxury when the extreme climate changes are happening. As with the real estate market, you must be able to make quick, yet informative, decisions about making your home purchase or selling your property because others in the market are making, most likely, swift moves to either sell or buy their single-family residential property.
Although this is the nature of our market currently, you do not have to be blown over by the moving pieces. But instead, I encourage you to STAND FIRM and ALLOW US to help you to make the best decisions possible when purchasing or selling your next home.
By: Cherise Selley