There were only 705 active listings this time last year. There has been a gradual decline in homebuyer interest. Economists do not believe that the real estate housing market will crash. All you have to do is fill up this form and schedule a consultation at your convenience. This will roughly average the 30-year and 15-year mortgage rates at 8.50 and 7.70, respectively. Many real estate investors have asked themselves if buying a property in Colorado Springs is a good investment. 23Colorado Springs' housing market, like those in most cities, hit the brakes last year though it stopped short of a crash. As mortgage rates are at record highs in 20 years by 7.08%. Ironically, the near-total lack of homes with negative equity in the Colorado Springs housing market has been considered one reason why prices are going up so fast. Here are the most recent market statistics to show what has changed. While home prices have risen significantly in recent years, there are signs that the market may be cooling off. Home values are expected to go down by 5% to 10% due to unaffordability. We always recommend doing your research and taking the help of a real estate investment counselor. This means well-designed condos and duplexes in the right areas are as attractive to them as a large house in the suburbs. This provides a large, diverse student market that rents properties across the Colorado Springs real estate market. However, the limited supply of homes on the market in Colorado Springs is keeping prices increasing faster than the rate of inflation. Filed Under: Growth Markets, Housing Market Tagged With: colorado housing market, colorado real estate market, Housing Market Forecast, housing market predictions. Prices will fall, but not to the extent homeowners experienced during the Great Recession. Want to sell a distressed property? Next year, there might be a chance that it will be a buyers market. Not just limited to Colorado Springs or Colorado but you can also invest in some of the best real estate markets in the United States. At the same time, sellers may need to be more flexible with their pricing strategies and be prepared to wait longer for their homes to sell. Here's a interactive map of localneighborhoods. Home listings will no longer go out of inventory at a faster pace. Here's a interactive map of localneighborhoods. Based on the data from the Colorado Housing Market in February 2023, it appears that the market is currently in a state of flux. Based on the data provided by Zillow, we can expect a moderate increase in the Colorado housing market in 2023-2024. As of April 13th, 2022, the 30-year fixed-rate mortgage hit 5% for the first time since 2011. This has led to an increase in home prices across most regions of the state, making it difficult for buyers to find their dream homes. There is no way around selling. Some of the information contained in this article was pulled from third-party sites mentioned under references. March 17, 2023 by Marco Santarelli The Colorado housing market has been in a state of flux over the past few years due to the surge in demand for homes. And even with the market cooling this year, the median price of a house sold in August was 10% higher than a . As lenders make it harder to get a loan, home affordability suffers and reduces the demand. Colorado Springs sits on the eastern side of the Rocky Mountains. Some experts predict that due to low inventory, home prices wont drop in 2023. When comparing the data to 1971, the present mortgage rate is moving towards a long-term average of 8% 30-year mortgage rates. Estimated market value. https://www.krdo.com/news/top-stories/airbnb-ordinance-passes-2nd-vote-by-colorado-springs-city-council/862178044 View a map of everyzip code. . Sellers have been experiencing record sales prices for the last few years. Additionally, the median sale-to-list ratio for January 31, 2023, was 0.989, and 19.2% of sales were over list price, while 58.3% were under list price. The personal balance sheets of homeowners today are much stronger than they were 15 years ago. A third of the population of the Denver metro area rents. This article aimed to educate investors who are keen to invest in Colorado Springs real estate. Here are the most recent market statistics to show what has changed. Bank Failures 2023: Will Collapse Affect Housing Market? A housing market bubble starts to form when mortgages are available at low-interest rates, substantial job growth, and lenders easily avail the loan. https://www.coloradorealtors.com/market-trends/regional-and-statewide-statistics/, https://www.zillow.com/ColoradoSprings-co/home-values, https://www.neighborhoodscout.com/co/colorado-springs/real-estate/, https://www.realtor.com/research/hottest-zip-codes-2021/, https://www.realtor.com/realestateandhomes-search/Colorado-Springs_CO/overview, https://greatcoloradohomes.com/colorado-springs-real-estate-market-statistics.php, https://www.propertymanagementincoloradosprings.com/colorado-springs-local-market-statistics, https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters, https://morrisinvest.com/blog/2016/12/21/5-most-landlord-friendly-states, http://www.landlordstation.com/blog/top-landlord-friendly-states, https://www.zumper.com/rent-research/colorado-springs-co, https://en.wikipedia.org/wiki/Colorado_Springs,_Colorado, https://realestate.usnews.com/places/colorado/colorado-springs, https://www.military.com/base-guide/colorado-springs-military-bases, https://www.zeonamcintyre.com/blog/2018/1/26/airbnb-investing-trip-colorado-springs-edition, https://www.krdo.com/news/top-stories/airbnb-ordinance-passes-2nd-vote-by-colorado-springs-city-council/862178044, https://www.avalara.com/mylodgetax/en/blog/2018/10/colorado-springs-passes-new-airbnb-rules.html, er-denver-colorado-springs-might-have-the-hottest-housing-market, demand in the Denver housing market for the past many years, Colorado Springs turnkey real estate investments. The Colorado Springs area is seeing continual, rather fast growth. Weve got you covered. But the Colorado housing market checked even more boxes as we entered 2021. I don't think the housing market will crash in the next three . That's a 109% increase in available homes for sale in one year. Despite the very large population over the age of 65, Colorado Springs managed to have a median age of 34, several years below the national average. Colorado Springs has been on a 10-year price increase with no end in sight. Even with interest rates rising in 2023, housing prices are still increasing in the Pikes Peak region; unfortunately, the supply of inventory is finally enough to meet the demand for single-family homes in Colorado Springs. Oklahoma: $171,057 with down payment of $22,237. U.S. News and World Report magazine discusses the large retiree community in Colorado Springs. Inventory is low and prices are increasing at a steady pace. List your property on MLS for the best results. Of greater importance to real estate investors in Denver is that the area is growing in population. If you are a homeowner that lives in an area where home prices have started to rise. This guarantees demographic momentum as young people stay here to buy homes and raise their own families, fueling demand for the Colorado Springs real estate market. In Vail, the inventory of homes on the market rose since the first of the year, but still shows 25% lower than a year ago, and at just 40% of long-term averages. On the flip side, more and more people are starting to cash out on their equity by borrowing against their property. This metric has gone up by 103.1% year-over-year, suggesting that homes are taking longer to sell than they did in previous years. Good cash flow from Colorado Springs investment properties means the investment is, needless to say, profitable. Purchasing an investment property requires a lot of study, planning, and budgeting. If you have any questions, feel free to contact us. His mission is to help 1 million peoplecreate wealthandpassive incomeand put them on the path tofinancial freedomwith real estate. https://morrisinvest.com/blog/2016/12/21/5-most-landlord-friendly-states Interest rates are the most significant factor for the real estate market in early . The 1,970 sq. But In the long run, the sellers market will continue. A housing market crashes when theres an immense supply of properties and few buyers to purchase. Shortage of housing for a growing population, a strong economy & increasing jobs have been fueling the demand in the Denver housing market for the past many years. The infamous Cheyenne Mountain is located just to the west of town. Current Housing Market Trend 2022: 21,869 U.S. properties started the foreclosure process in September 2022, down 9 percent from the previous month but up 113 percent from a year ago. Two prominent reasons cause housing prices to fall. Their airport offers direct flights to many cities via Frontier & United. Learn what happens to the Colorado housing market during a recession. These rates have priced many buyers out of the market as theyre at record highs in more than 20 years. Around 16% of Americans have bad credit. Many sellers waiting for the market to turn around will likely give in and increase the inventory. This helps to explain why home prices have risen more than 40% in the past five years, though it is one of the most active housing markets in the country. A typical mortgage borrower has excellent credit, substantial equity, and a fixed-rate mortgage with a rate well below 5%. These are Cash-Flow Rental Propertieslocated in some of the best neighborhoods of Colorado Springs. While the demand in some areas is expected to ease down, there will be new demand from new buyers and investors alike. As per August 2022 data, only a 3.2-month supply is available in the inventory. Before the 2008 housing market crash, the housing supply or inventory peaked at a 13-month supply. Over the past month, the average rent for a studio apartment in Colorado Springs decreased by -5% to $990. The 10-year active inventory trend reflects the active homes for sale for March 2023, going back ten years. If youre not planning to stay in the real estate property for a long time, do not buy it. Friends or family referred 36% of sellers who used a real estate agent, and 27% used the agent with whom they previously worked to buy or sell a home. The cost of obtaining a mortgage decreases as soon as the interest rate does, which increases demand for real estate and raises home prices in CO. The Colorado Springs metropolitan area is home to around seven hundred thousand people. Yes, if you are in a stable financial position. Economic Downturn: An economic downturn leads to less disposable income, fewer job openings, and higher unemployment. That just seems absurd. Increasing mortgage rates will surely have a major impact on home sales in 2023. Home sales are down by 23.9% year-over-year, and National Avg. Supply surges when builders continue to build, irrespective of the lowering demand for houses. Homeowners are unlikely to trade in their 3% mortgage for a new home with a 7% loan unless necessary. What is MLS in Real Estate: Everything You Need to Know. https://www.avalara.com/mylodgetax/en/blog/2018/10/colorado-springs-passes-new-airbnb-rules.html Colorado Springs CO real estate listings updated every 15min. In the end, you want to pay the right amount. Colorado Springs Real Estate Market Predictions for 2023. The housing market refers to properties bought and sold directly to buyers or through real estate brokers. Hence, there is an ongoing shortage of available homes for sale by 3.2 months supply in September 2022. However, Colorado Springs has several things in its favor for residents and real estate investors alike. A city thats within a stones throw of Pikes Peak and the rest of the Rocky Mountains is going to attract tourists. Now, with the first quarter of 2023 in the books, is the market still . Evaluate the specifics of the Colorado Springs housing market at the time you intend to purchase. Redfins data tells us how a typical home sells for less than the asking price. However, few experts believe that housing inventory will rise as interest rates rise and homes become more unaffordable. Closed sales of single-family homes were down by almost 19.6% from last year. Read these exclusiveHouzeo reviewsand learn why it is one of thebest FSBO sitesin America. All information presented should be independently verified through the references given below. While the market may be slowing down, it is still a seller's market, and prices are expected to continue appreciating, albeit at a slower pace. Colorado Springs contains nearly half a million people. People move here for work and the lower cost of living compared to more expensive Front Range cities. Also, theres no way that they buy land, get regulatory approval, and increase the supply quickly. With less disposable income, more layoffs, and few income opportunities, homebuyers resist buying a house. The latter category is driven by defense contractors in the area. Best Home Inspector Colorado:Check out the best home inspectors available in your area. An increase in interest rates makes homeownership unaffordable for more potential buyers. That's a 22.9% decrease from one year ago. Overall, the Colorado Springs housing market seems to be experiencing a balanced shift towards a buyer's market, with a reasonable inventory of homes available for sale. https://www.zillow.com/ColoradoSprings-co/home-values Colorado. July's average home price is $501,138 dollars which is down from the previous month by .04% in June, so it's not too bad. Current Housing Market Trend 2022: The national average 30-year fixed mortgage rate is at 6.1% and up 3.2 points year over year. To get the top dollar value for your money, its beneficial to focus on the local housing market in Colorado. Laguna Niguel, CA 92677, Copyright 2018 Norada Real Estate Investments. As the Fed attempts to control inflation by increasing mortgage rates. If this were 2019, the for-sale housing market in Colorado would be considered booming. The personal balance sheets of homeowners are much stronger today than they were 15 years ago, which is a clear difference between now and then. As a result, the monthly mortgage payment will remain high, and homes may look less affordable. And then from . The 2008 Housing Bubble. Most economists would agree that a housing bubble does exist. It defines the composition of the population based on age, race, gender, income, migration patterns, and growth. The local real estate market in Colorado Springs has been rapidly shifting from a seller's market to a buyer's market. https://realestate.usnews.com/places/colorado/colorado-springs Despite the recent cooling off, there are several reasons to consider a long-term investment in the Denver real estate market. Mortgage rates are touching a record high of 7.08% and may rise even further as the Federal Reserve works to control inflation. Yes! Let us know which real estate markets in the United States you consider best for real estate investing! Months supply, which is a measure of the number of months it would take to sell all available homes at the current rate of sales, has increased by almost 100% to 1.4 months. Subscribe to get our top real estate investing content. Please do not make any real estate or financial decisions based solely on the information found within this article. Creative Ways To Market a House For Sale: Learn how to creatively market your home.
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