Second Quarter 2023 Real Estate Market Update
Colorado Springs Real Estate Quick Facts
- Mortgage rates were flat for the Quarter but up about 1pt from the same quarter last year (SQLY)
- Average active listings for the quarter was 1290, compared to 1223 from the SQLY (down 5%)
- Total new listings for the quarter were 3855, compared to 5599 from the SQLY (down 31%)
- 2922 sales for the quarter, compared to 3997 from the SQLY (down 26%)
- List price/sales price average was 100.0% for the quarter, up from 103.2% from the SQLY
- Average sales price for the Quarter was $545,116, down from $559,944 from the SQLY (down 2.6%)
- Average days on market for sold homes was 28 for the quarter, up from 9 days from the SQLY
- Single family permits were 1129 for the quarter, compared to 1255 from the SQLY (down 10%)
The first half of 2023 has gone close to what we expected—fewer homes for sales, diminished buyer pool due to higher mortgage rates, low inventory, and no more double digit price gains.
Despite there being fewer buyers, demand is still solid. Combine this with the lack of homes for sales and the inventory rate remains very low. Also, the big price gains of 2021 and 2022 are a thing of the past. We predicted modest price gains of 1%-3%, but so far this year prices have actually slipped by about 2%.
A year ago the market was in the midst of a quick adjustment because of the quick rise of mortgage rates which shocked many buyers and put them on the sidelines. Mortgage rates have not come down, but buyers who need to buy are more comfortable with the current rates.
Our local economy is solid with persistently low unemployment and higher wages. The threats to our local economy may be the expected glut of office space becoming vacant and the large number of multi-family coming online.
