Want to predict the market? Denver tends to lead Colorado Springs’ real estate market by about 14 months. For the best gauge of what’s next for Colorado Springs, look to the big city to the North.
So what does our future hold?
As a member of Denver’s REColorado, Lauren stays ahead of the curve with market knowledge. Trends in Denver continue very strong, experiencing record prices. In May the number of properties sold in Denver increased 19% month over month. Time on market from list to sale averaged just 29 days! A decrease of 17% month over month in May.
If Denver demand continued as it is at present and no new properties were listed, every property in Denver would be sold in 7 weeks. That’s a hot market!! Three months of inventory constitutes a seller’s market, while 6 months of inventory would be neutral.
Colorado Springs crossed the threshhold from recession-driven buyer’s market into a healthier neutral market in mid- to late- 2011. We had reached a mild seller’s market by early 2012, defined by a seller’s market in the low price range and continuing buyer’s market for higher-end properties. Since early 2013, we have been in a solid seller’s market with an average of 3-5 months inventory on sale at any given time.
That’s nothing compared to Denver’s blazing hot 7 weeks of inventory. Watch out! If this hits Springs in late 2014 or early 2015 as I predict it will, our market will also become very faced-paced – more than it is already.
At this time Colorado Springs homes have an average sale price of $243,230, comparable to local 2005 prices. In May 2014, 28% of active listings sold, a fantastic contrast to the dark days of late 2008 and early 2009 when under 10% of listings would sell in any given month. We currently have 4 1/2 months of inventory on the shelf and a 77 day average time from list to sale. Foreclosures make up 20% of sales, and $200,000-$250,000 is by far the most popular price point in Colorado Springs right now. Mortgage interest rates hover just a little above 4%.