Colorado Real Estate Market in Correction Phase, Agents Warn

Strategic Insights -

Pessimistic voices about the near future in the Colorado housing market are growing, as agents report a long-overdue correction phase. The median sale price of single-family homes in the Pikes Peak region reached a historic high this summer. Correction overdue "Buyers are gold and sellers are wishing for the good old days when they have 20 showings in a weekend," Compass agent Kelly Moye said. The market is characterized by sold listings continuing to fall year-over-year, with 33,145 homes for sale last month, up 12% from a year ago. Meanwhile, any significant drop in prices that might appeal to buyers waiting on the sidelines remains elusive.

Key Takeaways:

  • The median sale price of single-family homes in the Pikes Peak region reached a historic high this summer.
  • Sold listings are continuing to fall year-over-year, with 33,145 homes for sale last month.
  • The inventory of homes on the market rose by 12% from a year ago.
  • Mortgage rates, trending in the low-to-mid 6s this week, are seen as a primary factor blocking buyers from exploring the market.
  • Some agents doubt that any action by the Fed will substantially lower mortgage rates, fearing that anticipation of a Fed move has already adjusted the mortgage market.
  • The inventory in Colorado Springs is the highest for the area since 2014, with 4,139 single-family and patio homes available for sale.
  • The good news is that at current sales rates, the inventory represents only four months of supply; just 3.5 months for homes priced under $400,000.
  • Higher prices are taking longer to sell, with close to six months for homes over $1 million.
  • Substantial numbers of homes on the market were posting reduced prices last month, some 50% of active listings in El Paso County and around 38% in Teller County.

Statistics:

  • Median sales price of single-family homes in the Pikes Peak region: $592,000.
  • Condos and townhomes median price: $401,650.
  • Inventory of homes on the market rose by 12% from a year ago.
  • Inventory in Colorado Springs: 4,139 single-family and patio homes.
  • Time on the market for single-family homes: 40% more than last year.
  • Multi-family days on market stretched 87% longer.

Sources:

  • The Gazette (Colorado Springs, Colo.), published on an unspecified date (original text mentions "Friday").
  • Colorado Association of Realtors, "Market Trends" report published by an unspecified date (original text mentions "monthly Market Trends report issued by the Colorado Association of Realtors").
  • eXp Luxury Division, "Market Trends" report published by an unspecified date (original text mentions "report to CAR's Trends on Winter Park and other Grand County markets").
  • Summit Resort Group, "Market Trends" report published by an unspecified date (original text mentions "Summit-area agent Dana Cottrell with Summit Resort Group reported").
  • Berkshire Hathaway, "Market Trends" report published by an unspecified date (original text mentions "Edwards agent Mike Budd with Berkshire Hathaway").