Looking Ahead to 2024 Real Estate Market
One year ago, we predicted the local real estate market would increase 1%-3% in values, inventory would improve slightly, and there would be a 5% bump in total sales. We were correct with the first two, but missed the mark on the number of sales as we underestimated the impact of ultra-low mortgage rates on sellers, convincing many to postpone selling.
Looking ahead to 2024, we anticipate a landscape similar to 2023, characterized by persistently low inventory which will again hinder the number of sales. Prices will see modest gains, while mortgage rates will fluctuate in the 6% range. Buyers & sellers are more comfortable with these rates and we expect more of them to jump into the market.
In the Pikes Peak Region, we anticipate the economy to sustain its slow and steady rebound. We will begin to see the addition of several thousand high-tech jobs which pay above the median salary for El Paso County. The allure of Colorado Springs and the broader Front Range persists, attracting individuals with its climate, outdoor recreation, increased job opportunities, and expanded cultural offerings.
Similar to many U.S. cities, the Colorado Springs Metro Area faces a shortage of available homes (single-family, townhomes, condos). In fact, our inventory is lower than most, and in 2024, we do not foresee a surge in the construction of homes to alleviate this issue. The lack of ownership opportunities will continue the trend of more apartment development for the foreseeable future.
For Buyers in 2024, navigating this market involves acting swiftly, especially for homes in excellent condition and priced competitively. To position yourself favorably, obtain a list of reputable local lenders from your REALTOR and secure a pre-approval before house hunting. Also, be sure your agent possesses the necessary experience and negotiation skills to guide you to a successful closing.
Sellers in 2024 should focus on getting their home in pristine condition and make sure they are priced competitively and strategically. Websites like Zillow are a good place to start but often times they are not very accurate. You also need to identify comparable homes and make adjustments for factors such as condition, size, amenities, and current market conditions to determine an accurate value for your property.
