Even before the start of the Covid-19 pandemic, we've seen a strong seller’s market in Colorado Springs. Sales for newly constructed homes are up, and existing homes are often selling above their asking price. Bidding wars between potential home buyers are common in the hot real estate market, but the August 2021 numbers are indicating the housing market is showing signs of cooling off.
A report from the Pikes Peak Association of Realtors (PPAR) shows the number of available homes for sale are down 6.1% from the previous year. The number of single-family homes are also down, but August 2021 still saw the second number of sales slightly behind July of 2020. The housing market may be slowing slightly and giving more buyers a chance to finally secure a home.
What Does a Slower Real Estate Market Mean For Buyers
The number of available homes on the market is down, but August 2021 did see listings slightly peak over 1,000. However, inventory is still low historically speaking. Part of this is due to a slowdown in new construction. The ongoing global pandemic is affecting everything from available labor to material costs and supplies.
Even though August numbers are down from the previous year, it is also the first time since 2020 over 1,000 properties were listed for sale. It means potential buyers have more options and may not have to settle on a home or neighborhood that’s not at the top of their list.
The real estate market in Colorado Springs is also seeing fewer people searching for new homes. With less competition, homebuyers are less likely to find themselves in brutal bidding wars. Sellers will also need to become a little more aggressive with proper pricing and marketing.
The Housing Market in El Paso County
PPAR reports houses taking around nine days to sell in El Paso County. It is two days longer on average than in July but noticeably shorter than the previous year. Most homes sold within 19 days in 2020.
It is looking a little more like an opportunity for buyers heading into the fall of 2021. The market is stabilizing with fewer crowds flocking to the same home. It doesn’t mean sellers are dropping their asking prices below fair market value, but you are less likely to see spikes.
Housing prices are lower than in July by an estimated 0.4%, but are still around 14.5% higher than the previous year. The drop in home prices means houses with dedicated media rooms for laser projectors are becoming more affordable.
What Is Driving the Current Housing Market
The Colorado Springs housing market is being driven by two factors. The Coronavirus pandemic is fueling the search for single-family dwellings, and more people are looking to distance themselves from their neighbors. That is one reason many individuals are leaving the bigger cities and looking for homes in smaller communities with a little more elbow room.
Low-interest rates are also driving the real estate market. Potential homebuyers are finding it easier to afford mortgages. The Fed is expected to raise interest rates on home loans in the coming months, but even with the increase, mortgages are still historically affordable.
Contact a Realtor When You Are Ready to Buy or Sell
Competition for homes is slowing down, but it doesn’t mean you should navigate the market by yourself. Only a licensed real estate agent knows the ins and outs of the changing market and will ensure you get the best price and terms whether you are buying or selling.