Is the Colorado Springs Market Shifting to a Buyer’s Market?
This is the question of the day. In a nutshell, I don’t think it is time to be concerned about a shift. We are seeing some slight increases in some of the market trends, but it is still a strong seller’s market.
Traditionally, the months of September and October have always been slow. It is thought that with school starting, families are less likely to move during this time of year. We see more price reductions, higher days on market and higher inventory, primarily because there are fewer buyers. If we were seeing a shift the days on market would be increasing rapidly, concessions increasing, list price/sales price ratio dropping, inventory increasing significantly, and sales decreasing. We are not seeing drastic changes for any of these criteria and the fact that sale price continues to appreciate and the number of D20 sales are increasing are good signs.
I monitor the Colorado Springs real estate market and write a monthly blog using the numbers provided by the Pikes Peak Association of Realtors Multi-listing Service (PPAR MLS) as well as a monthly blog for the Academy School District 20 neighborhoods, which is my primary market. I created a series of charts for the month of October going back as far as 2004 with the MLS information, which is before our last market peak prior to the crash of 2007-2008 and back to 2011 for District 20. The 2017 market was the hottest market I have experienced since I entered the business in 2006. We have slight increases from 2017 for some of the criteria measured, but I do believe it is more of a seasonal impact. We will have a better feel for if the market is shifting in early 2019.
When a market shifts from a seller’s market to a balanced market, we will see sellers agreeing to higher concessions and accepting lower than list price which results in a lower sales price/list price ratio. When the inventory is closer to 4 months this is considered a balanced market. We are still in a healthy seller’s market with inventory of around 2 months. A Buyer’s market is when inventory is above 4 months.
In today’s market, buyers are still having to wait for their perfect home and might find themselves in a multiple offer situation. Buyers are advised to have their financing in order and a pre-qualification letter from their preferred lender before viewing their first home. To understand the process of buying a home in Colorado Springs, request to be added to my series of emails for buyers.
Academy District 20 Statistics