The Colorado Springs Real Estate market has seen some explosive growth over the last few years. While the real estate market stats can seem hyperbolic sometimes, they don’t necessarily tell the complete and whole truth. Folks who have their fingers on the Colorado Springs economic pulse, people like Bill McAfee of Empire Title, have an immense amount of experience interpreting those numbers, and can “divine the bones” so to speak, paint the picture, tell the story and explain what all this really means to buyers and sellers of real estate in 2020.
Lack of inventory in Colorado Springs (a low number of homes for sale) continues to be a driving factor in the real estate market. Historically 3,500 – 4,000 homes for sale would be average. Currently there are about 1,200 homes for sale! This low inventory drives extraordinarily fast sales — in a “normal” or average market if we had 100 homes for sale, we’d sell 20 of those in a month. Currently, out of a 100 homes, we sell 76. In a month. So, if you list your home today you have a 76% chance of selling it within a month. These are extraordinary conditions, indeed.
The shortage of homes is leading to historic price increases too — about 8% appreciation a year on average in the last four years. 32% in four years. This is a significant rebound from the economic crash of early 2012 when things hit “bottom.” Things bounced back up because of the federal home buyer credit before experiencing a subsequent dip again. Colorado Springs saw a $140,000 median home price during this period and now we’re at around $326,000 for that median price — well over a 76% increase in less than a decade.
And the figure above — 1,200 active listings — is an average. At the time of this post, there are literally 512 active single family homes for sale. This is an unprecendented, low figure. The lack of inventory will continue to drive the market in 2020, with consequential price increases in line with the trend of the last four years, or even higher. So, not only is there an incredible shortage of inventory but demand for housing here in the Springs is just increasing.
Interest rates are at a historic low, and will probably stay low. Interest rates are as low as they’ve ever been, or close. If a buyer can afford a payment on a new home, and is willing to stay in that home for at least 5 years, it’s absolutely a good time to buy. But as Bill says, you can’t time the market. It just doesn’t happen. A “buy and hold” strategy continues to be the best option when looking at what is the biggest investment decision most people will ever make — the purchase of their own home.