Colorado Springs Housing Market
as of February 1, 2020
We are in a VERY Hot Seller’s Market!!
The Colorado Springs Housing Market Update is that we have an extreme shortage of homes available for sale in the area. We have under one month of home inventory, almost at half a month (.83) which means their is a very low supply. The demand for homes in Colorado Springs is very high as well so there are typically multiple offers on homes. The Demand is High because Colorado Springs is ranked consistently as one of the best places to live! According to U.S. News & World Report Colorado Springs Ranks #1 for Most Desirable Places to Live in the Country! Colorado Springs also Ranks #3 Best Place to Live by U.S. News & World Report.
The supply and demand curve has pushed home prices up. In Colorado Springs the median home price in January 2019 was $303,000 and today in January 2020 the median home price is $337,000. So you can see that home prices are still increasing about 11% from year to year.
From a Seller’s perspective, the below metrics in Green are Good, those metrics in Red are Not so good.
Colorado Springs Housing Market
Home Sales (Demand)
Days On Market
⇓ .83 months
.68 months Inventory last month
1.1 months last year
⇑ 1.6% increase
⇓26% from last month
⇑1.6% from last year
$330k last month
$303k last year
⇓ 30 avg days
Avg 34 last month
Avg 46 last year
(Updated by the 7th day of every month. Metrics for all Single Family/Patio Homes in the Pikes Peak region. Data provided by Pikes Peak REALTOR® Services Corp. Absorption Rate & Inventory calculations provided by Wish Property Group, Inc®. © 2012-2018 Wish Property Group, Inc®. All Rights Reserved)
What does Home Inventory really mean
What does the Inventory number for our Colorado Springs Housing Market Update really mean? It means that if no more homes were listed on the market as of today, it would take just 30 days (30 days per month x 1.0 absorption rate) for all the homes currently listed to be sold.
So with very Low supply and High demand for the limited number of homes available, this has caused an increase in Home prices not only last month but over the last several years.
Let’s look at Last Month’s numbers
As of February 1, 2020 we have an Absorption rate of .83 months on hand of inventory. This means that if we are at 1.5 or lower we are in a Hot Seller’s market. If we were at 6 we would be in a perfectly balanced market. If we were at 7 or more we would be in a Buyer’s Market. Let’s look at the Colorado Springs Housing Market Update numbers below.
1. Our first number is the time frame, that being 1 month, the month of January.
2. Our second number is the number of homes sold last month, that being 916 homes sold in January.
3. Our third number is 761 which was the number of Active listings on February 1st (for El Paso County).
761/916 = .83 .83 x 1 month = .83 months of inventory = Very Hot Seller’s Market!!
By using the above Absorption rate calculations we can best determine whether we are in a Buyer’s or Seller’s market. Absorption rate (Inventory) is a measurement of the rate at which a group of homes in a particular area get processed through the system. If the absorption rate is slow (higher number), that means there will be in increase in supply of homes which leads to a buyer’s market. If absorption rate is fast (lower number), that means there will be a decrease in supply of homes which leads to a seller’s market. It is really a function of supply and demand where supply is the current inventory of homes and demand is what has been sold in a given time frame. Absorption rate is the best metric to determine if we are in a buyer’s or seller’s market, however knowing average days on market, home price trend, and home sales trends are obviously good metrics to determine market conditions in your area.
Call Jerrod Butler today @ 719-735-5669 (719-SELL-NOW), I Guarantee I will get your Home Under Contract within 29 days or I’ll buy it! My proven Marketing System gets Results. Any Median price home or less, we can guarantee to buy it, it’s No Risk Selling!
“It’s Your Wish, Let’s Make It Happen!”®