First Quarter 2023 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- 30-year mortgage rates were 6.32%, compared to 4.67% from the same quarter last year (SQLY)
- Average active listings for the quarter was 1099, compared to 350 from the SQLY (up 214%)
- Total new listings for the quarter were 2662, compared to 3569 from the SQLY (down 25%)
- 2079 sales for the quarter, compared to 2778 from the SQLY (down 25%)
- List price/sales price average was 98.7% for the quarter, down from 102.4% from the SQLY
- Average sales price for the Quarter was $517,480, down from $525,579 from the SQLY (down 1.5%)
- Average days on market for sold homes was 45 for the quarter, up from 11 days from the SQLY
- Single family permits were 554 for the quarter, compared to 1326 from the SQLY (down 58%)
The local real estate market continues to be very solid despite the dramatic shift we saw over the last 6 months of 2022 and buyers & sellers are getting used to the new normal.
Our market continues to be a seller’s market, just not to the same extent as a year ago. The inventory level is low at just over 1 month which is due to strong demand but also the lack of new homes coming on the market. Buyers are becoming more accustomed to mortgage rates in the 6’s, which is better than the 7% rates we saw last October and November.
There is a real reluctance for homeowners to put their homes on the market and lose their ultra-low mortgage payment thanks to the 2% and 3% mortgage rates they currently have. With that said, there will always be those owners who must sell due to things like personal reasons, job relocation, or lifestyle changes, to name a few.
Sales prices are down slightly when compared to the 1st Quarter of 2022, but that was also when the market was absolutely bonkers thanks to record low mortgage rates. A year ago, escalation clauses and appraisal gap agreements were the norm, today it is not nearly as common.
For the remainder of 2023, we believe home values will grow modestly and mortgage rates will stabilize in the 6% range. As the insane market of 2021 and 2022 get further and further in our “rear-view mirrors”, we will see more buyers re-enter the market.
