Housing Market April 2022 to April 2023
The Colorado Springs Housing Market in April 2022 was an anomaly in any real estate market. Houses were flying off the shelves, selling for over asking, and inventory was at an all-time low. There was a shocking lack of Sellers willing to sell, and Buyers were desperate to move.
So it’s no wonder the numbers would have some substantial changes year over year.
Many Buyers have been waiting for prices to come down, but there was only a slight decrease in home values. The big change we saw was this year people are paying closer to asking price (99.8%) than the over-asking price (104.2%) in bidding wars in last year’s real estate market.
The average house was selling within ten days of being put on the market last year. This year they’re selling in a little over one month. That’s an increase of 260% in days on market. The number of Active listings is up 78%, but the number of new listings is down over 29%.
Less than a thousand houses sold in the local real estate market last month, a decrease of 28% from last year.
We are still in a strong Seller’s Market. If a home is priced right, it is selling quickly. We haven’t seen a Buyer’s Market in the past decade. With the lack of inventory in the real estate market, it doesn’t appear we will see one again anytime soon.
Housing Market from March to April 2023
Between March and April, the average sales price was up almost 3%. That’s typical as we head into the Spring selling season. The number of Active houses month-over-month was up over 11%. Average days on market stayed about the same, with new listings up about 5%.
I had several calls this past month from people asking about foreclosures. They will not have an impact in the near future. They are increasing because the Federal (Covid) Moratorium ended, but they are still far below the national “norm.”
The biggest reason foreclosures will not have an impact is because of the high percentage of owners who either own their house outright or have over fifty percent equity. According to Keeping Current Matters, that’s more than 68% of American homeowners.
All the numbers indicate the market is healthy and still going strong.
Housing Market Predictions for Summer 2023
Let me emphasize we are in a strong real estate market. It’s a great time to sell and a great time to buy. According to a recent survey by 1000wattInside, 91.67% of people surveyed are glad they purchased the home they did. Even with rising interest rates, prices are not going to fall drastically any time soon. House prices are staying stable.
If interest rates come down, your mortgage can be refinanced, but you can’t renegotiate the purchase price of your home. Unlike the real estate market during and after the crash of 2008, there should not be a large fluctuation in home prices.
People often ask about buying during a recession. From all indications, we have hit the bottom of the price drops and they are again moving upward. Not as rapidly as they did during the housing hysteria of 2020 and 2021 (thankfully), but there is no indication whatsoever there will be a freefall of pricing.
In four of the past six recessions, home prices rose an average of six percent. The two exceptions were 1991 when prices dropped an average of 1.9%. And, of course, the housing market crash of 2008 when prices dropped a whopping 19.7%.
One of the great lessons from 2008 is that people are not pulling equity out of their homes like they did. People are not in trouble like they were during 2008 – 2010 because they are sitting on a lot of money in home ownership. Current interest rates are “normal,” but it has spoiled us for the past few years with exorbitantly low rates.
In the 1960s, interest rates were between 3% and 7%!!! So we are not at all out of line with what we’re seeing now. And if we truly are heading for a recession, interest rates typically come down as inflation slows.
A recession typically means lowering interest rates. If inflation slows down, interest rates will come down. You can then refinance your current mortgage, but you will have purchased at the lowest price possible.
If you’d like help to navigate this turbulent real estate market, call an expert. Mimi Foster has been a professional Realtor for several decades in the Colorado Springs real estate market. Call today to find out your best options for your home needs.