Housing Market Predictions September 2021
Although the housing market during the height of Covid-19 was considered abnormally brisk as we moved into the fall of 2020, we are seeing signs of even healthier gains this year. New listings were up over seventeen percent, and the average sales price was up seventeen percent from the same time last year.
The number of yearly sales in El Paso County was up ten percent from September 2020 to September 2021. The driving force behind rising prices and year-to-date sales continues to be a lack of inventory to match demand. We are still in a strong Seller’s market, but things seem to be more favorable for Buyers this September as there was an increase of over twenty-three percent of active listings.
Homes are still selling above asking price. The average home sale in September 2021 sold for two percent over list price, up from the same time last year. The typical time a home sat on the market was ten days, down forty-one percent (seventeen days) from the same period last year.
This is a snapshot of what’s happening with existing single-family homes in Colorado Springs compared to the same month last year.
Monthly Change from August to September 2021
From the time between last month and this, the total number of active listings was up almost fourteen percent. New listings were down over seven-and-a-half percent, and sales were down over four percent. The good news for Buyers is that the rate of increase of the average home price in El Paso County was less than half a percent.
This is in keeping with a “normal” year when the housing market slows down as we leave the summer months and head into autumn.
Housing Market Crash?
There are no economic indicators that the housing market is crashing, merely that it’s leveling out. In a healthy market, average home price appreciation is slightly over four percent.
We should start seeing that leveling out of pricing in the near future, relaxing the dramatic appreciation we’ve seen over the past year. However, I see no indications we will see a depreciation of prices in the foreseeable future.
Over the next few months (typically a slower housing market), we should see listings sustain an increase. People who are serious about buying will continue to look for their dream home into the coming months. It will be a good season to purchase as there will be less competition and more listings.
New home construction is booming. There will be less competition from huge conglomerates like Zillow. This is good news for everyone. Buyer burnout will lessen as more houses are listed and prices slow their frantic increase. The end of mortgage loan forbearance will not cause a slew of foreclosures because, unlike 2008, more homeowners have equity in their property. It should be a prosperous season for both Sellers and Buyers.
This is an especially good time to sell if you are planning to buy a new home. If you have any questions about your personal situation, be sure to contact me today to see how we might help you cash in on this most favorable market.