As we approach the end of 2024, the Colorado Springs housing market reveals several noteworthy trends, reflecting a gradual shift in dynamics.
Here’s a comprehensive update with detailed charts to help buyers, sellers, and investors make informed decisions.
Market Overview
Colorado Springs remains a somewhat competitive market despite notable changes in inventory, pricing, and sales activity.
- Homes are selling in 43 days, on average, consistent with last year.
- Properties that are priced right and well-prepared can still sell quickly, sometimes in just 20 days, especially in sought-after neighborhoods.
- The market shows signs of transitioning toward a full buyer’s market by 2025, with increased inventory and slower sales velocity.
Home Prices
- Median Home Price:
- $475,000, marking a 2.1% decrease compared to November 2023.
- This reflects stability after significant price growth over the past two years.
- Average Home Price:
- $557,741, showing a modest 0.1% increase year-over-year.
- The slight rise indicates resilience in the high-end segment, while the median reflects broader affordability pressures.
Inventory Levels
- Inventory is up by 35%, with more homes listed than sold.
- This imbalance is giving buyers more options, increasing negotiating power.
- October 2024 recorded the fewest home sales in over a decade, signaling reduced demand compared to the pandemic-era boom.
Neighborhood Insights
Neighborhood dynamics in Colorado Springs provide a range of opportunities:
- Central Colorado Springs: Median value at $368,819 offers affordability for first-time buyers.
- Southwest Colorado Springs: High demand sustains a median value of $563,359, ideal for luxury-focused sellers.
- Northeast Colorado Springs: With a median value of $440,226, it balances affordability and amenities, attracting diverse buyers.
Emerging Trends
- Shift Toward Buyers’ Market:
- Homes are sitting longer, and sellers are more likely to entertain offers below the list price.
- Expect continued easing of competition into 2025.
- Price Segmentation:
- Homes under $450,000 are seeing steady interest due to affordability challenges, while high-end properties sustain prices.
- This bifurcation creates opportunities for targeted investments.
- Seasonal Slowdown:
- Sales typically slow during the winter months, further amplifying buyers’ leverage.
Tips for Buyers, Sellers, and Investors
- For Buyers:
- With rising inventory, explore neighborhoods with higher availability, such as Cimarron Hills or East Colorado Springs.
- Negotiate for concessions like seller-paid closing costs or home repairs.
- For Sellers:
- Pricing remains critical; overpricing will likely extend your listing time.
- Invest in curb appeal and minor repairs to stand out.
- For Investors:
- Consider the growing rental market in neighborhoods like Old Colorado City, where affordability and demand are stable.
- Leverage falling prices to secure properties with the potential for long-term appreciation.
2025 Forecast
As the Colorado Springs market trends toward a full buyer’s market, expect increased affordability and reduced competition in most neighborhoods. Mortgage rate fluctuations will continue to influence demand, but rising inventory and softening prices are likely to shape the market well into next year.
Conclusion
The November 2024 Colorado Springs real estate market reflects a softening environment, with buyers gaining the upper hand. While the market remains stable compared to national trends, local dynamics suggest an evolving landscape. Whether you’re looking to buy, sell, or invest, staying informed will be key to navigating the months ahead.
For more updates, strategies, and personalized advice, reach out to HBR Colorado today.
