July 2023 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- 30-year mortgage rates held steady for the month, right around 6.8%
- 1,633 listings are on the market, this is down (18%) from the same month last year (SMLY)
- New listings for the month were 1145, which is down 32% from SMLY
- There were 851 sales for the month, which is down 25% from SMLY
- Median List price/sales price ratio was 99.7% for the month; last year it was 100.3%
- Average sales price for the month was $548,681, down 2.1% from SMLY
- Median days on market for sold homes was 24; last year it was 13
- Single family permits YTD are at 1811, down from 2792 last year (↓35%)
Our local market is changing and becoming more balanced. Just about all the data we track is showing signs of the market weakening. Don’t mistake this as a sign that the market is about to fall apart. But we do think our optimistic forecast of 1%-3% appreciation this year may end up closer to 1%-3% of depreciation. The number of active listings is inching back up, the number of new listings is shrinking, sales for the month were the lowest of any July over past 10 years, and prices dipped 2%. You ask, “How can the number of active listings be going up when fewer homes are coming on the market?” The answer is the higher mortgage rates have relegated many buyers to the sidelines, thus shrinking the active buyer pool.
The very limited number of new listings is helping to keep inventory down, which in turn is helping prices to hold steady…or in this case, just move down slightly. The reason for so few new listings is because homeowners with mortgages in the 3% range are doing all they can to stay in their current home—why would they sell their larger and more expensive home to downsize into a smaller, lower priced home, when their mortgage payment would double?
There is some good news for buyers. Buyers now have a selection of homes to view and compare, and then make an offer on a home they really love. BUT buyers should not be lulled into thinking they can make low-ball offers or wait to make an offer. Homes that are in excellent condition, well located, and priced well are selling quickly and oftentimes get multiple offers.
If you are selling, be sure you get advice from your agent about how to ensure that your home shows great and is priced right. If it isn’t, your home will likely be on the market for a while.