August 2023 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- 30-year mortgage rates jumped from 6.90% to 7.23%
- 1,704 listings are on the market, this is down (16%) from the same month last year (SMLY)
- New listings for the month were 1080, which is down 27% from SMLY
- There were 833 sales for the month, which is down 21% from SMLY
- Median List price/sales price ratio was 99.4% for the month; last year it was 99.0%
- Average sales price for the month was $555,172, up 2.1% from SMLY
- Median sales price for the month was $480,000, down 08% from SMLY
- Median days on market for sold homes was 27; last year it was 17
This past month our local real estate market performed better than expected after a lackluster July. The number of active listings remains low BUT they are higher now than at any other point in 2023. New listings hitting the market continue to drop and are half of where they were two years ago. Sales for the month were down again BUT average sales prices actually nudged up a bit which was a real surprise.
Last month the numbers looked to be trending down and local agents were mostly not excited about how the end of the year was likely shaping up. Mortgage rates in August jumped another 1/4 point pushing rates to a level we haven’t seen since the year 2000 and the number of active buyers continues to shrink. Not only are there fewer buyers, there are fewer sellers too because of the jump in rates from under 3% in 2021 to over 7% today. All of this would make you think the market was declining but the buyers still wanting to purchase seem to be comfortable with the higher rates and are enjoying a better selection of available homes.
One point of interest this month is the average sales price increased while the median sales price dipped. Our assumption for this unique situation is that the high-end market continues to be robust while the rest of the market is struggling some. Buyers in the higher price ranges aren’t as concerned about mortgage rates as they are either making a cash purchase or they can afford higher monthly payments.