Q1 2024 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- Mortgage rates were flat for the Quarter and up about a 1/4 pt from the same quarter last year (SQLY)
- Average active listings for the quarter were 1246, compared to 1099 from the SQLY (up 13%)
- Total new listings for the quarter were 2755, compared to 2662 from the SQLY (up 3%)
- Sales for the quarter were 1896 units, compared to 2132 from the SQLY (down 11%)
- List price/sales price average was 99.4% for the quarter, compared to 98.7% from the SQLY
- Average sales price for the Quarter was $524,741 up from $517,480 during the SQLY (up 1.4%)
- Average days on market for sold homes was 57 for the quarter, up from 49 days from the SQLY
- Single family permits YTD were 766 for the quarter, compared to 555 from the SQLY (up 38%)
Market Summary
The performance of the local real estate market during the 1st Quarter of 2024 was somewhat subdued. Sales experienced an 11% decline and when you combine that to the 1st Quarter of 2023 which saw a decrease of 23%, sales are down significantly. Inventory levels remained tight, but there was some relief which bodes well for prospective buyers. The persistently low inventory has propped up sales prices despite the lack of sales, and if we see any improvement with mortgage rates, sales and prices will follow.
Many potential buyers appear to be awaiting anticipated drops in interest rates, as forecasted by many economists. However, inflation has remained higher than the Federal Reserve would like, delaying any potential relief in interest rates. Mortgage rates hovered between 6.5% and 7% throughout the first quarter, but a drop below 6.5% could stimulate significant buyer activity.
Despite the sluggish start to the year, there is much optimism for the upcoming summer buying season. Even if interest rates continue to be elevated, we expect more sellers to list their homes this summer, providing buyers with a greater selection. The scarcity of inventory was evident in the 1st Quarter, with the best homes (great condition, good location, priced right) often receiving multiple offers. This suggests that for the right property, buyers are willing to sacrifice some dollars.
We do think we will see rates dip some later this year and if we are correct, the local real estate market will really take off.
