Read the latest newsletter from Berkshire Hathaway HomeServices Rocky Mountain Realtors in Colorado Springs. BHHSRMR keeps you updated on market stats, Downtown news and events, plus helpful homebuyer and home seller tips. In this edition, you’ll find an invite to our Downtown Holiday Party, plus understanding your home warranty.
Real Estate Stats
This real estate market has taken Colorado Springs Realtors on a wild ride, but is this slight change in the market a hint of what’s coming in future months?
We knew the skyrocketing prices and home values were not sustainable for very long and July brought some decreases in average sales price and more listings on the market. For the month of July 2018, our average sale price dropped $14,000 for single family homes to $347,517 which is a more significant month-to-month change than we’ve seen in over 2 years. Many of the past months have been constant increases and made for a highly unbalanced seller’s market. July has been the first we’ve seen buyers starting to feel some relief in our market, as sellers decrease prices and more people are selling. In fact, we exceeded 2,300 active homes on the market – an amount we haven’t seen since July 2017.
Interestingly, we have not seen a significant increase in “Days on Market” which means homes are selling just a quickly, but they are selling for less and there is actually more inventory (homes) to choose from. As of the end of July, our average days on market was 21 days for El Paso County. Keep in mind, various areas of town have different stats, like 45 days in Briargate versus 10 days in Central Colorado Springs.
So should you be worried? No. The market is correcting and finally allowing for a more balanced and fair market, for both buyers and sellers. Now, it should be more about the home and negotiations can become an interaction where both have to give a little. Also, this isn’t yet a verifiable trend – is just one month of changes – and we could see these trends reverse in August as families move before the beginning of school. We often see small ups and downs around this time of year, and then a quick pick up again in the Fall months.
For now, buyers, you should jump on the opportunity of lower prices before interest rates increase anymore. Sellers, most of you are still getting amazing appreciation on your home and full list price, but you may not have 15 offers within the first day…. But there are always exceptions!
Contact your favorite experienced real estate agent for more insights, stats and advice on how to handle your specific life changes and real estate transitions.
As we launch into the summer season, it’s going to be easier to sell a home but tough as a buyer. The May 2018 numbers have been released, and we continue to have more home sales each month and fewer homes being listed. Although our days on market are down even from the previous month (April 2018), our average home price continues to increase.
Keep in mind, these stats are for the entire Pikes Peak MLS, which includes El Paso County as well as other surrounding counties including parts of Teller, Chaffee, Custer, Douglas, Elbert, Fremont, Lincoln, Park and Pueblo.
Average Home Price: $355,927 (Single family homes and patio homes – doesn’t include condos/townhomes)
This has increased from $348,527 only a month earlier in April 2018. As the average home price increases, we see more sales activity in the $300,000-$400,000 price range. Just a few months ago, almost half of the sales activity was in the $200,000-$300,000 price range. As of May 2018, each price range now make up about 30% of sales. That means over 60% of home sales between $200,000-$400,000. If you’re a buyer in this price range, you’re competing in an extremely competitive market, and homes on average are selling for 100.54% of list price (meaning, over the listed price).
Average Days on Market: Dropped to 22
If you’re just looking at El Paso County, the average days on market is 21. However, for our entire PPMLS area, it’s 22 days which is the average across all price ranges. This has decreased from April as well, so homes are selling quicker even in the past month. Also, if you’re in that “hot spot” price range of $200K-$400,000 the average days on market for the past 90 days = 6 days on market. Homes in that high demand bracket are selling in less than a week.
Sold Homes and New Listings Both Up
We saw an increase in the number of homes sold in May, jumping from 1,286 in April to 1,568 in May. So, nearly a 22% increase in sales of homes and as mentioned above, they’re selling for an average of $7,000 more than they sold in April.
Also, our total number of new listings in May was 2,080, just about 100 more new listings than we saw in April (1,972). It’s almost exactly what we saw in May 2017 as well, when we had 2,053 new listings so year-over-year there was no significant change.
What to Expect for Summer 2018
We have no reason to believe this market will slow down, even in the next few years. It will remain a seller’s market and prices will likely continue to increase with homeowners seeing drastic appreciation (probably averaging 13-18% per year). Whether you’re looking at statistics for single family homes, or condos and townhomes, all area appreciating very well and at a steady rate. It matters more on the area, rather than the style of home. Contact your favorite agent to find out stats on your specific neighborhood and how it’s appreciating in value.
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If you are following real estate market stats, you will see various terms thrown around – it’s the real estate jargon that you may not totally understand. That’s okay! And that’s why we are here to answer questions and help you understand the information so you know the best time to react and take advantage of the real estate market whether buying a home or selling a home.
So, what’s the difference between the average home price and the median home price?
Well, let’s start at the beginning. First of all, when you are seeing these real estate statistics, they are typically referring to homes that have sold (closed). The prices are based on the final agreed price for the home, not necessarily the listing price. Currently in the El Paso County market, we are seeing over 99% of homes sell for at or over the list price (year to date). However, there are exceptions where the home sells for less than the listed price.
But for this conversation and industry stats, we are only looking a SOLD homes (meaning, they have made it through the Under Contract phase of the real estate contract and gone to a successful closing).
So, let’s start with the AVERAGE PRICE. It takes us back to elementary school and most of us don’t remember the things we were tested on in 5th grade. When you are a looking at the average (in any industry or calculation) here’s the way to do it:
TAKE THE TOTAL SALES VOLUME AND ADD IT TOGETHER. So if you have 100 homes selling in a specific month, add together all the dollar amounts of the sales of the 100 homes. If each home sells for $300,000 you’ll calculate $300,000 + $300,000 +$300,000….100 times. Obviously, sales are all over the board in reality. So you’re adding together the $30,000 home sales with the 3 million dollar home sales, etc.
- TAKE THE TOTAL OF ALL SALES AND DIVIDE BY THE TOTAL NUMBER OF SALES. In our example, after you’ve added together all the different amounts, you’ll divide by 100 since there were 100 homes sold in the period you’re trying to figure out the average.
- THIS TOTAL GIVES YOU AVERAGE HOME SALES. Currently in our market, there are about 1200 single family homes selling every month in El Paso County. By taking all the prices of those 1200 single family homes, then dividing that total number by 1200 you’ll get the average home price. In April 2018, our average sale price for single family homes was $351,698.
So, what’s the MEDIAN PRICE? The median is the “middle price” – think of it as the median on the highway. It’s the middle!
- TAKE ALL THE HOME SALES AND RANK THEM SMALLEST TO LARGEST. Again, we use the same stats of sold homes (those homes at $30,000 all the way up to the top dollar sale of 3 million).
- TAKE THE NUMBER IN THE MIDDLE OF THE TOTAL SALES. You literally want the middle number, so you could check off one number from the bottom of the list, then one number at the top of the list and continue until you reach the middle number. If you have an odd number of sales, it’s perfect and you take the middle number. With an even number, in order to find the exact median, you’ll take the average of the middle two sales.
- THIS GIVES YOUR THE MEDIAN PRICE. Again, in our current market, the median is higher than the average. Our median sales price in El Paso County for April 2018 was $305,000.
Also, make sure you’re paying attention to the data you’re looking at. Some stats might only show a specific area, like a neighborhood. Others may show all of El Paso County, and others may show an even larger area including all of Pikes Peak MLS, which includes multiple counties.
Statistics for our region are usually broken down further, showing single family homes and patio homes as one total, and condos and townhomes as a separate total.
Consider the time period as well, whether the information you’re considering is based on Year-To-Date, quarterly stats or simply totals for a specific month.
Overall, we don’t expect you to figure this all out yourself! Contact your favorite experienced agent to help explain and analyze the data on your behalf. We can help you understand trends for your neighborhood, city section, larger city, or your MLS. We also have data for the entire State of Colorado, so you can see how your home is valued compared to other counties throughout the State.
Watch for our newsletter every 2 months with local real estate stats, or contact us anytime for an in-depth valuation.
Southern Colorado’s housing market is firecracker hot this summer, even as home prices continue to rise at a much faster pace then the rest of the country. The average home price in El Paso County now tops $326,000, a 10.6% jump from average price last June. The National Association of REALTORS (NAR) reports the Springs leads the Rocky Mountain area for home sales, hitting the 6th spot for Hottest Housing Market, above Denver. A record 1,743 homes sold in Colorado Springs in June, up 5.6% from last June. Home buyers had more properties to choose from, as rose 16.8% from May. But homes in the most affordable price ranges are still selling within days, not weeks, and above asking price. The average home is on the market 24 days, with the average in some areas as low as 7 days. June 2017 Sales Charts
The inventory crunch is across the U.S. NAR says this is the first time that 1 in 3 homes is selling in under 30 days nationally. The demand for affordable homes is building among first-time home buyers and baby boomers. NAR economist Javier Vivas says millions of older and younger Americans are snapping up starter homes and urban dwellings like never before.
Denver’s lack of affordable homes has been pushing metro-area home buyers south to Colorado Springs for years, but the city’s job growth and surging economy are also bringing new residents here in droves. A majority of the 12,000 + available job openings are for high-paying positions in nursing, software engineering and systems engineering, with a median salary of over $67,000.
Local rents have soared 10.4% this year, making Colorado Springs the top city in the U.S. for rent increases in 2016. The soaring cost of rental housing is contributing to the home buying rush among Millennials. Young adults are buying homes at a faster pace than any other market segment across the country. The Millennial generation is now the largest in the nation, outgrowing the Baby Boomers this year, according to the U.S. Census. And our area has a greater number of young adults than the majority of U.S. cities. The median age in Colorado Springs is 34.4 compared to the national average of 37.4.
As we predicted last November, the 2016 Colorado Springs housing market is in record territory, and there’s plenty of mo’ in the market heading into November. Single family home sales skyrocketed 14.4% in October over 2015, and the average home is now worth 11.5% or $30,000 more. The latest stats, released today by the Pikes Peak Association of REALTORS, show home prices and sales both hit all-time highs for the month of October. October 2016 Home Sales Report
The market trend suggests that home sales will fall off only slightly December, which should be welcome news to home sellers and anyone who is planning to list their home before the end of the year.
By contrast, October sales in Denver took an 11.43% nosedive year over year, and plunged almost 17% from September as home buyers are struggling with rising prices and record low inventory. Even rents have been pushed downward by the frenzy of new apartment construction. Denver Metro Market Report