Colorado Springs Housing Market 2022: Prices, Trends & Forecast
The Colorado Springs housing market remains one of the hottest markets nationwide. It never wholly cools off. Previous years have seen this market as one of the investors’ most stable markets. Is is still one of the best markets? What about buyers and sellers? Check out the latest news in Colorado Springs housing market prices, trends, and forecasts to determine whether you should buy or sell.
Colorado Springs Housing Market Prices
The Colorado Springs housing market shows significant signs of slowing way down. Although we still see price increases, they are not drastically high price increases. According to Redfin, the median price of homes on the Colorado Springs market is $430,000.
Other sources, such as realtor.com, quote this price higher at $450,000. That’s an increase of 14.5% year over year.
Buyers are paying an average of $213 per square foot, which is almost an 8% increase year over year.
Price increases are due to the low housing supply. Mass migration during the pandemic resulted in many housing markets seeing a low housing supply, including the Colorado Springs housing market. In May of 2022, the housing supply was an estimated .9 months.
The housing supply needs to be at least six months for the housing market to have a balanced supply. Prices come down when the housing supply is healthy for more than six months.
Unfortunately, when the housing supply is less than six months, housing prices will continue to increase. That’s why we are still seeing price increases.
Colorado Springs Housing Market Trends
The drastic increase in prices from the previous two years has resulted in many people leaving the market. However, it’s not so lousy that sellers cannot sell homes.
According to Redfin, houses of all housing types spend an average of 27 days on the market.
However, another source states that houses are sold in 56 days, down from the 63 days they spent on the market last year. Keep in mind that different sources consider different things. For example, the latter source might consider closing times and when the house is officially sold, which does take longer. In both sources, we see houses selling faster than they did last year.
Almost 50% of the homes sold on the Colorado Springs housing market have price drops. This is the highest number of homes on the market sold with price drops in three years.
The Colorado Springs housing market remains hot. Before the pandemic, the Colorado Springs market was sizzling. Houses were in high demand, and real estate companies struggled to keep up. During the pandemic, the market overheated. Now, it’s cooling down, but it remains one of the hottest markets.
New listings increased almost 20% year over year.
According to Zillow, the Colorado Housing market has been one of the best long-term investments for the past decade. Home values have continued to appreciate for the past ten years. In the past year, home values have increased by approximately 21%.
Although some buyers are leaving the market, there are still plenty of buyers entering the market. Approximately 2271 homes were sold in September of 2022 in Colorado Springs. That’s an increase of over 700 homes sold year over year.
Movato data shows just how volatile the Colorado Springs housing market is. Prices were at an alarming high during June 2022 and then dropped again. Despite that, the market remains strong regardless of the volatility of the market.
Colorado Springs Housing Market Forecast
Zillow has forecasted that the market will remain hot over the next year. According to the source, home values will increase by another 13% by May 2023. In the following year, they will continue to appreciate.
As markets nationwide, from real estate to oil markets, remain inconsistent, we will continue to see prices rise and then drop again.
This will be seen more as the market balances out in the coming year. Because houses are in high demand in the area, the housing supply continuously struggles to keep up. After an increase in the housing supply, buyers grab available houses at lower prices. Then, the housing supply is low again, resulting in another price increase.
Timing is essential in this market and will continue over the next twelve months. The market will continue going from a buyer’s to a seller’s market.
Right now, it is a seller’s market. The demand continues to outpace the low housing supply. Although the housing supply is increasing, it will take months for the supply to be able to meet the demand. In the Colorado Springs housing market, you won’t see a balanced market for months, if not years. Need to sell your home fast? We buy houses in the Colorado Springs market as is.
Buyers still have a small amount of room at the negotiating table because houses spend so long on the market. Sellers will continue to drop prices to offload houses quicker, and buyers will continue to have that room at the negotiation table over the next year.
Buyers can spend time in the Colorado Springs market if they pay attention to it. It’s critical to wait until the housing supply increases to enjoy lower prices and negotiate with sellers.
Sellers are enjoying a wonderful time in the market. Sellers can hold onto houses to enjoy the constant appreciation of properties in the Colorado Springs housing market. However, sellers that want to sell their homes fast need to check out this page to find a cash buyer in the area.
The Colorado Springs market is a beautiful market for investors. The high-value homes will have in the long run makes these homes an excellent long-term investment. Investors that want to sell homes fast can buy low and sell high, thanks to the market volatility.