February 2022 vs February 2021
As winter reared its frigid head in the Colorado Springs region, the housing market continued on a brisk and heated voyage of home sales. The average price of a single-family home in El Paso County rose to $523,845, up almost seventeen percent from the previous year.
Homes sold, generally, at 103% of asking price. That was a slight increase from last year. The typical home was on the market for ten days, down over a third from February 2021.
On any given day in February of 2022, you could find less than 200 homes available for sale, but the average for the month was 327 Active. If no new houses came on the market, there would be less than two weeks of inventory for sale! That’s a staggering statistic when you consider that in a ‘balanced’ market, there are six months worth of inventory.
There were almost 1,100 new listings, with El Paso County sales being 848. That is good news for Buyers as there was a slight increase in listings vs. sales. Active listings, however, were down almost ten percent from the same period last year.
Market Changes in the Past Month
The number of Active listings between January and February 2022 was down over five percent (from 346 to 327). This is not uncommon for a February housing market. Sales were down over four percent between January and February, but again, that is not uncommon for frigid winter months.
New listings were up slightly (about two percent). But between the first two months of this year, home prices increased almost four percent. The predictions for this year were that price appreciation would hover around the six-to-eight percent marks in 2022, so these actual numbers do not bode well for Buyers wanting to purchase a home this year.
Market Predictions for Remainder of 2022
Almost all of the national financial experts believe home prices will NOT come down this year, but interest rates will continue to rise.
For every point increase in interest rate, it cuts a Buyer’s ability to qualify for a loan by approximately ten percent. If a Buyer qualifies for a purchase price of $500,000 at a 3% interest rate, they would only quality for a $450,000 purchase price at 4% interest. ($500,000 x 10% = $50,000) So $500,000 less $50,000 gives them a buying power of $450,000.
Increasing values and increasing interest rates may slow the market this year as Buyers feel the pinch of fewer and fewer houses being available in their price range. We are certainly not looking at a housing bubble like we saw in 2008, if for no other reason than most people now have equity in their home.
As sales and listings remain strong, this year’s housing market is on track to stay a strong Seller’s market. Now, more than ever, it is vital to have an experienced Agent on your side – whether Selling or Buying a home in Colorado Springs.
Feel free to contact me to find out what your home might be worth in this bustling market. With several decades of experience in the local real estate market, I’d be happy to discuss your particular situation with you.