HOUSING MARKET PREDICTIONS SPRING 2024

HOUSING IS ALWAYS A GOOD INVESTMENT

Regardless of what the naysayers say, real estate is a good investment! From April 2023 to April 2024, only 2.1% of properties with a mortgage have negative equity! That’s an amazing statistic.

When coupled with the fact that home equity rose almost 9% during the same period, real estate is a significant investment. Don’t let the media scare you. Since 1943, homes have appreciated in value in all but five years. Four of those five years were during the market crash around 2008.

Let’s look at what’s been happening in the local Colorado Springs real estate market over the past few months.

December 2022 to December 2023 had a gain of 6% of the average sales price ($498,626 to $526,216). Homes in December were selling for a little over 99% of asking price.

a good investment january

January 2023 to January 2024 saw a price appreciation of almost 3%, $523,441 to $524,852. The number of Active homes on the market in January 2024 rose over 3%, but new listings were down almost 5%. Homes were still selling for more than 99% of asking price.

a good investment february

In February, new listings coming on the market rose 14% from the same period last year. The number of houses sold was down 2.4% year over year (712 sales in February 2023 to 695 sales in 2024). February average sales price year over year rose from $502,291 to $515,411, an increase of 2.6%.

a good investment march

While March 2024 saw an increase in the average sales price of a home in Colorado Springs, it also saw a rise in average days on market and a substantial decrease in the number of houses sold (16.9%). Fluctuating interest rates, buyers waiting to see if those rates would come down, and a lack of inventory were factors in decreased sales.

a good investment april

HOUSING MARKET MONTH TO MONTH 2024

Sales from February to March rose over 15% (695 to 800). Active listings were up over 3%, and we are still strongly in a Seller’s market.

Housing is always local. “They” would tell you the market stinks right now, but no matter when you buy, real estate is a good investment. I showed a house to a buyer recently that had 40 showings the day it was listed on the MLS. I recently listed a home on a busy street that had three cash offers within the first two days listed. Definitely a sign of lack of inventory and buyers wanting to move.

Thirty-three percent (33%) nationally of homes sold last year were purchased with cash. That’s good news and bad news – certainly bad news for buyers trying to compete with a loan. But contrary to what national news is screaming across headlines, residential real estate is alive and well and thriving. Is now a good time to move?

My personal feeling is always – if the time is right for you, it’s a good time to move. The market is in constant flux, and it does not bode well for those trying to wait it out to “time the market.”

HOUSING MARKET PREDICTIONS SPRING 2024

At the end of last year, everyone expected the Feds to lower interest rates. The market was collectively holding its breath so buyers could grab lower interest rates.

The unemployment numbers are what the Feds have been waiting for. Regardless of how high they’ve come in (a determining factor in choosing not to lower rates), their numbers were revised down drastically in January (from 353,000 to 229,000!), as well as a downward revision in December. Unemployment rates are at their highest levels since January 2022 at 3.9%. Feds want the rate to stay below 4.1%, so if unemployment rates continue to rise, it is a likelihood there will not be a rate cut in June of 2024 as expected. Current rates in early April 2024 are just under seven percent, in the high sixes.

While the Bureau of Labor Statistics reported 303,000 new jobs added in March when only 200,000 were expected, the weak part of that report was the quality of job gains.

Looking ahead, the phrase Marry the house, date the rate comes to mind. Headlines say prices are going to crash. Again, while real estate is always local, there is no sign that prices will be crashing in the Colorado Springs market. Did I mention that real estate is a good investment? I firmly believe when interest rates come down, there will be a flood of buyers hitting the market, and prices will rise accordingly. Don’t wait. If you’re ready to move, now is the time.

The ability to do a truly free refinance when rates come down is a great tool to have in your home-buying arsenal. If you want to know how to approach what’s going on locally in the market, consult with an expert. There is no obligation to find out not only what your home is worth, what you might expect to net from a sale, and also what your buying power currently is. I’ve been in the local real estate market for over thirty years. I’d love to talk to you about your particular situation.

By Mimi Foster

About the Author

Mimi has received the honor of being voted one of Colorado Springs' Best Realtors five years in a row. With over two decades of experience, she is committed to making the home buying/selling process as easy and enjoyable as possible. Read Full Bio…

Helping buy and sell homes throughout Colorado Springs,
Old Colorado City, Manitou Springs, and surrounding areas

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