Housing Market February 2022 to February 2023
There were substantial year-over-year market changes in Colorado Springs for February 2023. The most notable change was the average days on market. Last year homes were selling, on average, in just over a week. This year they’re selling just shy of two months. That’s an increase of over 430%. Still a strong Seller’s Market, but homeowner’s should be prepared for a little longer time to sell their house and price them accordingly.
Another notable market change was home prices were down over four percent. From just under $525,000 last year to just over $500,000 this year, that could be a bonus for Buyers. But with rising interest rates (an almost four percent increase in rates from the same time last year), it may not prove beneficial when it comes to monthly payments.
This is a snapshot of what happened with existing single-family homes in El Paso County (Colorado Springs), Colorado, between February 2022 and February 2023
Last year homes were selling at 103% of asking price. That number has dropped over four percent in 2023. One reason is the sharp increase of Active listings available to potential Buyers. Up 228% from February 2022, this impacts the changing market when Buyers have a larger inventory from which to choose.
The number of new listings was down almost twenty percent from last year’s market. The number of houses sold was down just over twenty percent, which means there were fewer sales this year.
It’s a changing market for both Buyers and Sellers. Monitoring market trends is essential if you’re looking to make a move. This could mean less competition for Sellers. For Buyers, it may be an opportunity to negotiate a better deal. Keep your head up and follow the market with an experienced Realtor like me!
Housing Market Changes January 2023 to February 2023
The market changes month-over-month were more encouraging. The number of single family home sales in February were up twelve percent from the previous month. Active listings were down over thirteen percent between January and February. That’s compared to Active listings being up almost 228% from last year.
The average sales price between the first and second month of the year was down three percent. A large part of the determining factor on whether we’re in a Buyer or Seller market is the amount of inventory available to Buyers. Less than five months of inventory puts us in a Seller’s Market. That means if no other homes are listed, we would sell all available inventory in less than five months.
In February 2023, Colorado Springs had one-and-a-half months of inventory. That’s down twenty-one percent from last month, pushing it even more into the Seller’s Market side. (But that’s still an increase of 275% from last year when it was less than two weeks!)
In addition, from the beginning of January to the end of February, interest rates have risen one percent, affecting the buying power of how much a purchaser may qualify for. Experts expect current interest rates to rise for the next few months as the Feds will continue to raise the Basis Points (bps) over their next few meetings.
Housing Market Predictions Colorado Springs Spring 2023
Many people are taking a step back in pursuing their home ownership dream because of rising interest rates. But before you pause your search, it’s important to consider the potential benefits of buying now. Recent data shows that applications for mortgages have declined over thirteen percent in just one week because of rising rates. This could mean less competition for you in the housing market, making it an opportune time to buy.
The current housing market is challenging due to low inventory and high demand. We are even seeing bidding wars. However, the recent decline in mortgage applications may provide relief for some Buyers. By staying the course and continuing your search, you might face less competition from other Buyers. This could result in a better chance of securing the home you want, at a more affordable price.
While mortgage rates have been rising over the last few weeks, it’s important to remember that they are still historically low. By delaying your home buying plans, you risk missing out on the opportunity to take advantage of lower Buyer competition. In addition, Sellers are often forced to lower asking prices to adjust to rising mortgage rates.
If rates continue to rise, you may end up paying more for your home in the long run. And if rates come down substantially, you can refinance when it becomes financially workable to do so.
Whether you’re buying or selling a home, it’s important to work with a real estate professional who can guide you through the current market conditions. A knowledgeable Agent like me can help you navigate the complex home buying process, negotiate on your behalf, and provide valuable insights into local market trends and conditions.
Rising mortgage rates shouldn’t deter you from pursuing your dream of homeownership. By staying the course and taking advantage of lower Buyer competition, you might find your desired home at a more affordable price. With the help of a trusted real estate professional, you can navigate the current market conditions with confidence.