HOUSING MARKET AUGUST 2023 TO AUGUST 2024
We saw a slight decline in interests rates in August 2024, but that had little effect on purchase applications in the Colorado Springs housing market. While purchase applications rose 1%, they are still down 9% from last year. Showings were also down substantially from last year. There is a noticeable “wait and see” attitude among Buyers wondering if lower rates are going to hold. From the time someone applies for a mortgage and finds a home to buy, it’s possible rates will go back up, causing uncertainty in home purchases.
While the average sales price rose 2.3% year over year, the number of houses sold was down 3.6%. Election years are historically slow for home sales, but not usually this far ahead of an election. After three decades of doing this job, I don’t remember such uncertainty in buyer confidence. It’s as though everyone is holding their collective breath to find out what the economy is going to do.
I can’t emphasize enough that prices are not falling. They are not rising as rapidly as they have in recent years, but they are not falling. As a matter of fact, prices have risen in the past 70 of the last 75 years, with four years of that unusual decline being 2007-2010.
Homes in the Colorado Springs market are still selling for 99.3% of asking price, but that number is deceptive. Many Sellers are lowering prices and then selling for 99.3% of the lowered price. Almost every week for the past few months, price reductions are outpacing new listings by almost 150 homes per week. (For example, 400 new listings per week in El Paso County and 550 price reductions.)
HOUSING MARKET JULY TO AUGUST 2024
Between July and August 2024, new listings were down about 3%, while sales were down 3.6%. Month over month, the average sales price dropped 3.5%, and the median sales price dropped 3.1%. All of this indicates a lack of consumer confidence.
The number of active listings rose just over half a percent, and El Paso County currently has almost three months of inventory. While that is certainly an increase over last year, we are still solidly in a Seller’s Market. The switch to a Buyer’s Market does not happen until there are six to seven months of inventory.
HOUSING MARKET PREDICTIONS FALL 2024
What can you expect if you’re thinking of making a move in late 2024 or early 2025?
In a nutshell, Buyers can expect mortgage rates to come down slightly, and it is expected more homes will sell. If you’re worried about purchasing a home and interest rates coming down soon thereafter, find a local lender who will refinance your loan for FREE (up to every six months) for the time you own your home. That way you don’t have to worry you might miss out on the best rates for you.
In the coming months, home prices should continue to rise, but at a much slower rate than they did during the pandemic years. Regardless, real estate is always an excellent investment with the proper guidance. Find an experienced Realtor who can help guide you through the rapidly changing home market. It’s not getting any easier, and more so than ever, this is an area where experience matters. Contact Mimi Foster today to discuss your particular real estate needs.
