January 2025 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- 30-year mortgage rates bumped up to 7.04% in mid January, then settled back down just under 7%
- 1,795 listings are on the market-this is up 49% from the same month last year (SMLY)
- New listings for the month were 968 -which is up 29% from SMLY
- There were 527 sales for the month-which is up 9% from SMLY
- The list price/sales price ratio was 98.6%
- Average sales price for the month was $549,553—up 3.9% from SMLY
- Median sales price for the month was $484,000—up 7.5% from SMLY
- Median days on market for sold homes was 75-SMLY was 55
- Single family permits YTD are at 218-up from 183 units from last year
Market Summary
The new year kicked off with a surge in listings, jumping nearly 50% compared to last January. This increase in inventory provided a boost in sales as well, which rose by nearly 6%. More available homes have helped stabilize both sales activity and pricing across the local market.
Interestingly, despite many homeowners holding onto historically low mortgage rates, we’re seeing more and more sellers deciding to list their homes. Over the past two years, many “would-be sellers” held off due to financial considerations, even if their home no longer fit their lifestyle—whether it was too big, too small, or too far from work. Now, that trend is shifting. We’re also seeing an uptick in distressed sales, such as short sales and foreclosures, as some homeowners find themselves financially stretched.
The market remains strong for homes priced up to $700,000, with a solid buyer pool in that range. However, in the higher-end market above $700,000, demand isn’t keeping pace with the growing number of available homes.
Looking ahead, mortgage rates are expected to stay in the 6% range throughout 2025. While that may feel high compared to recent years, it’s still below the long-term historical average of 7.71% since 1971.
If you’re thinking about buying or selling, now is a great time to strategize. Feel free to reach out with any questions about navigating the current market!
