December 2013 Market Update
Here in Colorado Springs, we’ve seen another year of moderate price increases on the order of 5% over this time last year.
Residential sales volume is greatly improved so far this year by 22% over last year.
The number of homes for sale is down almost 11% from this time last year.
And we’ve seen a tremendous 58% reduction in foreclosures!
What does this say to you?
To me it says watch out because more price increases are on the way. We have a steady supply and a strengthening demand. The low end of the spectrum that has been pulling the market down over the past few years, the foreclosures, is swiftly dwindling. I see foreclosure prices bid up with multiple offers all the time. Demand is much greater than supply now in that market.
The caveat is interest rates. Interest rates, too, are trending up, which increases the total cost of ownership for the buyer. I theorize that the concurrent rise in interest rates has muted the rise in home prices recently. I also believe there is considerable pent-up inventory on the supply side in the form of sellers who have been waiting to sell. As the buyer demand continues to increase, sellers will continue to fill the need for inventory with these homes they have been waiting for the right time to sell. Thus, prices will continue to rise but moderately and steadily.
So let’s get your home on market! https://livedreamcolorado.com/sell-a-house/