Market Activity End of 2020
As we head into the year 2021, the Colorado Springs real estate market has been unlike anything we’ve seen before.
The total number of available listings is by far the lowest on record.
Meanwhile the total number of sales per month is at its highest ever!
The relationship between number of sales per month (sales volume) and the amount of available homes for sale at any given time (inventory) is measured as “Months of Inventory”. The current months of inventory is extremely low. In terms of supply and demand, the low Months of Inventory means we have very high demand but very low supply.
That means the market is a very strong Seller’s Market. Learn about buyers markets vs sellers markets.
This makes real estate prices increase fast.
Even though Colorado Springs housing prices are going up, mortgage interest rates have continued going down, lower than they have ever been.
For buyers, even though you may purchase a house for a higher price than you would have a year ago, the actual cost per month for that home may not be any more than it would have even at last year’s lower price.
For sellers, the great news in this market is that your property – if priced right – should stay on the market for a record short time period. Properties in most price categories are selling faster than ever right now in the Colorado Springs area.
You can see in this chart an overview of how quickly home prices have been escalating, and what a shortage of housing we have been experiencing locally.
To compare 2020 to 2019, we see prices overall are up 12%, the total amount of home sales are up 8%. Meanwhile, the number of listed homes for sale is down 36%. Houses are listed for 19 days on average. That’s across all price ranges. For homes below the median price, the duration of time on market is much less. Finally, mortgage interest rates ended the year at 2.68%!
Compare this current strong sellers market to the opposite strong buyers market just a few years ago. The Colorado Springs real estate market has changed dramatically over the last few years! Whether you are selling a house, purchasing a house, or both, please make sure you have expert representation with an experienced Realtor who prioritizes your best interests and understands how to achieve your goals in the current market!
Reach out, we are happy to help!