February 2023 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- 30-year mortgage rates have drifted back up to 6.5%, up nearly a half point over the last 30 days
- 1,092 listings are on the market, which is double from a year ago, but down 90 units since January
- New listings for the month were 764, which is down 23% from last year and flat from last month
- There were 645 sales for the month, which is down 23% from last year
- List price/sales price ratio was 97.2% for the month; last year it was 100.1%
- Average sales price for the month was $503,354, down 3.9% from last year
- Median days on market for sold homes was 41; last year it was 4 days
- Single family permits YTD are at 319, down from 790 units this time last year
The local real estate market is in flux and has been producing conflicting results through the first 2 months of the year. For example, inventory is low, prices are down, high-end sales continue to be strong, and housing starts are low—lots of contradicting data.
In our annual review we said it was likely that new listings hitting the market would be low because of rising interest rates and it seems to be ringing true. For many home-owners there must be a very compelling reason to move and buy their next house. Mortgage rates have nearly doubled from where they were before, which greatly increases their mortgage payment on their new home.
Prices are down compared to the same period last year. But if you remember, a year ago we had record low numbers of listings on the market and very strong demand which forced buyers to pay premium prices to get the home they wanted. Buyers today are facing less competition so the need for escalation clauses has gone by the wayside for the most part.