HOUSING MARKET AUGUST 2023 TO AUGUST 2024
Over the past year, the Colorado Springs housing market has experienced significant shifts. Comparing year-over-year data, there have been noticeable changes in home prices, days on market, and the volume of homes for sale. We’ve seen a consistent increase in the average home price (5%), driven by high demand and limited inventory. However, there are also signs of cooling, with longer days on market (one month) and fewer bidding wars compared to last year.
Active listings were up almost 50% from the same period last year, and the number of price reductions each week is almost one-third more than the number of new listings. Not that homes were being overpriced when listed, only that the market is slow enough that lowered prices seem to be a motivation to get Buyers off the fence.
As people wait for lower rates, there needs to be a reality check that we will not see 3% rates again for a long time – if ever. As a real estate professional, we’re hoping to see 5.5% to 6% rates in the next few months to get the market moving.
HOUSING MARKET JULY TO AUGUST 2024
The most noticeable trend over the past month was the dramatic downturn in showings. More and more houses were being listed, and fewer and fewer Buyers were looking. We had a spark of hope that the Feds might lower rates, which resulted in a slight decrease in mortgage rates. That was short-lived, and interest rates continue to hover around 7%. Rates are the lowest they’ve been since February of this year. It is still anticipated the Feds will lower rates three times over the rest of the year starting in September.
Looking at the short-term changes from July to August 2024, there are some intriguing developments. The transition from summer to fall typically brings a slowdown in market activity, and this year is no exception. Add to that it being a contentious election year, and many people are holding their breath for the outcome. However, change varies depending on the neighborhood and property type.
Active listings were up almost 11% from July, but sales fell 1.2% between June and July. We’re not quite in a Buyer’s Market yet, but we’re inching closer than we’ve been in many years.
HOUSING MARKET PREDICTIONS FALL 2024
As we approach September 2024, the housing market in our local area continues to show dynamic trends. We’re seeing a mix of stabilization and fluctuations that could influence the market’s direction in the coming months. Several key factors are driving these changes, including interest rates, inventory levels, the election, and the broader economic outlook.
Seasonal patterns suggest a cooling off as we approach the end of the year, but several factors could disrupt this trend. The upcoming season could bring opportunities for both Buyers and Sellers, particularly as the market adjusts to new economic realities. Even a slight lowering of interest rates should bring a big shift in the housing market.
While inventory is on the rise, there are still too few homes for sale to meet demand. (Although, if Colorado Springs doesn’t stop building massive apartment complexes everywhere, it may also have a dire impact on home sales.)
Lack of inventory (even with a substantial yearly increase) will keep home prices on the rise. There are no national economists who are predicting a housing market crash in 2024 or the foreseeable future. Prices will not have any drastic drops. The rate of increase will slow down, but they will not fall dramatically. We are not in a bubble that’s about to burst.
I can’t emphasize enough that NOW IS THE TIME TO BUY. If you’re concerned about interest rates coming down after your purchase, find a Lender who will refinance FOR FREE*. If rates drop, you’re covered.
The real estate market is normalizing. Prices are going up but not as rapidly as we saw during the Unicorn Years (2020-2022 which were “fairy tale” years in home sales and prices). There is no question the pace of price increase is healthier than what we saw during the pandemic.
Increasing inventory plus limited Buyer demand due to relatively high mortgage rates will ease some of the upward pressure on prices. There is no doubt we are in an unusual market. Talk with an experienced agent. Position yourself in the best place to make the most of selling or buying a home right now. I’d love to help you make your best move. Call or text today!
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