First quarter of the calendar year brought nearly a mirror image of where we were at this time last year regarding number of new listings and sales. Those factors are small, single digit percentage changes. However, our average sales price for both single family homes and townhome/condos is up significantly, and 1st quarter brought an increase in interest rates as well.
How much are homes selling for in the Pikes Peak region?
Currently, our average sales price for a single family home is $335,439 (cumulative for January – March 2018). For townhomes and condos, the average cumulative sales price is $213,631. Single family prices are up 12.5% from first quarter last year, and condo/townhome average price is at an amazing 14.5%. That’s some pretty nice appreciation on your investment over a 12 month period!
Home Inventory and Sales Up in March versus February 2018
As we jump into the Spring season, sellers and buyers have been busy in the month of March 2018. The total number of new listings in March was 1,758 single family homes, which is up almost 43% from February 2018 (1,233 new listings in February). It’s even more significant with townhomes and condos: we still saw 270 units listed in March, which was a 86% increase from February. We expect these trends to continue through summer, as it’s typically the busiest season for buying and selling homes. In fact, the trend has already started as the days on market for single family homes dropped from 40 days (February 2018) to 28 days in March 2018.
Interest Rates Are Up As Well
Not only are home prices increasing, increasing interest rates have had an impact on 1st quarter of 2018 as well. Although we’re still spoiled with historically low rates, we did notice a quick jump in the past 3 months of nearly half a point. Interest rates change based on the type of loan and other factors, but currently conventional 30-year loan rates are around 4.375%.
What’s The Future for This Market?
We all wish we had a crystal ball to see into the future and tell you exactly what’s going to happen in the world of real estate. Analyst are predicting this market will most likely continue for the next 4 years or so, meaning home prices will keep increasing and seller’s will have the edge in most price ranges. If you’re thinking of buying a home, now’s the time.