May 2023 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- 30-year mortgage rates have started to tick back up to nearly 6.8%
- 1,292 listings are on the market, this is up about 200 units since last month
- New listings for the month were 1273, which is down 31% from last year
- There were 1059 sales for the month, which is down 23% from last year
- List price/sales price ratio was 100.0% for the month; last year it was 104.0%
- Average sales price for the month was $540,476, down 2.6% from last year
- Median days on market for sold homes was 28; last year it was 9 days
- Single family permits YTD are at 1106, down from 2140 units this time last year (↓48%)
Not much has changed in the last 30 days in terms of the health of the local real estate market, it remains a “seller’s market”. This is despite the rise of mortgage rates, which are again flirting with 7%.
It is interesting to think that the rise in mortgage rates is having more of an affect on sellers than buyers. What we mean is, many sellers have rates on their mortgage at or below 3% which is making them think twice about selling. The jump in rates from a year ago (under 3% to over 7%), had a signifi-cant impact on buyers, because many had never seen a mortgage rate above 4.5%. It seems many buy-ers are getting comfortable with the higher rates and making a decision to move forward with their purchase.
The market took a dramatic turn last April/May which really shocked many buyers & sellers and “froze them in place”. Now when we look at the last 12 months of data, we can see the market leveled off really really fast. It wasn’t crashing like some economists predicted was happening.
Colorado Springs continues to see a housing shortage with the short term solution being apart-ments. The huge influx of new units has finally created higher vacancy rates (7.4%) and slightly lower rental rates. Builders have cut their production in half from a year ago, but we expect they will start to gain some momentum in the second half of the year and housing starts will increase slightly.