Colorado Springs Real Estate

 Colorado Springs Real Estate Market Trends

Not only is a home a place to live it can also be a great investment. Knowing that you often make a wise investment on your home not when you sell it but when you purchase it. Having the knowledge regarding the current market conditions can help you make a more informed decision on your next Colorado Springs home purchase or sale and can turn your home into an outstanding investment. In changing real estate markets it is critical to ensure that you are informed and stay ahead of the curve and not chase it. We work hard to not only keep up with the latest real estate market trends both locally and nationally but to also stay ahead of the market to keep our clients informed so that they can make informed decisions on the purchase or sale of their Colorado Springs Homes. If you are in a market that is experiencing trouble or if you listen to the media you may be under a false sense that real estate markets everywhere is in trouble. One key point to remember is that all real estate is local and the market information on this page will help show you how the Colorado Springs real estate market is doing. The market data below represents statistics and information about the sales of Colorado Springs Homes and Patio Homes in El Paso County and small areas of Douglas and Elbert County. The data below paint a broad picture of the health of our overall housing market. Colorado Springs has many sub-markets and price points each of which have their own uniques characteristics. 

This graph shows us the average Colorado Springs homes sales price over the past five years. Colorado Springs has experienced a steady and healthy increase in our average sales price over the past five years.

This chart shows the average appreciation rate for existing Colorado Springs homes over the past five years. The important feature to note is that during the nation wide “boom” years 2003-2005 for real estate we experienced normal and healthy appreciation rates. Compared to the markets with over 20% appreciation rates, we leveled at about 5.8%. Coupled with continued growth and healthy local economy this is one of the main reasons why our market remains healthy. Colorado Springs homes are still affordable and because we didn’t go through the roof in appreciation we are experiencing about a 1.3% increase in home values this year. When you compare this to the declining values of homes in many markets it is evident that Colorado Springs is probably in much better condition than what is being experienced in many markets.

This chart displays the number of total new listings by year. The main point to get from this is that we are not seeing a tremendously high number of listings compared to the prior five years. In an environment where inventory levels are high this is a promising chart as it shows that our inventory levels can recover much quicker to more “normal” levels.

This chart displays the total number of Colorado Springs home sales by year. As you will notice the number of home sales in Colorado Springs was at its peak during the “boom” years of 2004 & 2005. We have experienced a slight decrease in hoe sales over the past two years. We believe that the decrease in the total number of home sales is a result of a combination of a correction from the “boom” years, a more stringent mortgage market, and consumer confidence. When all you hear in the media is how bad the real estate market is, it can become self fulfilling even in good markets. Overall, this years number of home sales is still the 5^th best in history. That is a solid number when you are comparing it to the most home sales we have ever experienced during the “boom” years. The decrease in home sales this year compared to the last few years is what has cause an increase of housing inventory.

This shows the average days that a home for sale was on the market before it sold. You will notice a slight but steady increase of days on the market of the past three years. This is a result of our higher inventory. Even our current level of days on market is much lower than many real estate markets are experiencing.

This is the average sales price in comparison to the listing price. What is important to note here is that we are seeing a high sales to list price even when compared to our best years of 2004 and 2005. Some markets are experiencing sales to list prices well below what we are seeing. Although there are many deals to be had in Colorado Springs, once a home gets priced down to an “acceptable” market value it sells at a reasonable rate. This gives a feel for overall sentiment compared to other real estate markets. It is a buyers market with good even a few great deals, but home sellers are not being stripped of their home value.

Most of the real estate markets that we hear about in the media who are experiencing declining housing prices also experienced over 15%, 20%, and even 30% appreciation. Obviously these levels of increased housing priced were completely unsustainable and have resulted in their decline in prices. In Colorado Springs we are in a buyers market, there are good deals and even some great deals to be had. With that being said our market still remains healthy. Over the next 2-5 years we will continue to experience a large influx of new military personnel and their families, as well as the addition of a new Frontier Airlines maintenance hanger. This will be a very positive addition to help strengthen our local economy as well as the Colorado Springs housing market.   Because Colorado Springs remains a highly desirable city to live, our economy is healthy, we conitue to grow, and we never experienced outrageous appreciation we remain extremely positive for the near term and future of the Colorado Springs real estate market. 

Based on information from the Pikes Peak REALTOR Services Corp. ("RSC"), for the period January 2002 through year to date . RSC does not guarantee or is in any way responsible for its accuracy. Data maintained by RSC may not reflect all real estate activity in the market."