October 2023 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- 30-year mortgage rates hit a high of 7.78% during the month
- 1,840 listings are on the market, this is down 10% from the same month last year (SMLY)
- New listings for the month were 915, which is down 8% from SMLY
- There were 647 sales for the month, which is down 28% from SMLY
- Median List price/sales price ratio was 100.0% for the month; last year it was 98.8%
- Average sales price for the month was $555,257, up 3.2% from SMLY
- Median sales price for the month was $485,000, up 3.2% from SMLY
- Median days on market for sold homes was 26; last year it was 23
As we near the end of the year, the local real estate market continues to perform better than most people expected, especially after a slow start. In October, prices climbed more than 3% when compared to October 2022 with the primary driver being the lack of homes on the market.
This year, we have seen fewer homes come on the market (down about 27%) because homeowners have such low mortgage rates on their current home. In 2021, we also had low inventory but for a much different reason, there was massive demand thanks to the ultra low mortgage rates. Most homeowners who live in their primary residence do so because of their lifestyle and personal needs. People tend to buy and sell real estate when they get married/divorced, have kids/become empty-nesters, convenience to their job, and as their income swells or diminishes. Many homeowners have put off selling despite these reasons because their monthly mortgage payment is so low. At some point the inconvenience/stress of changes in their lives will outweigh the low mortgage payment. We predict we will start to see this occur in 2024.
We also expect mortgage rates to stay relatively flat and possibly even come down some in 2024. Now that rates are near 8%, if rates move closer to 7%, those wanting to purchase a home will likely jump at the chance to buy a home with a 7% rate. Owning a home is still how mamy Americans build real wealth.