Monday, 06 April 2020

Colorado Springs Real Estate Market Outlook for 2020 (2019 in Review)

Written by Posted On Monday, 13 January 2020 09:59
Colorado Springs Real Estate Market Update 2020 Colorado Springs Real Estate Market Update 2020

2019 was another robust year for the Colorado Springs Real Estate Market. Looking forward to 2020 we expect to see continued growth in both the number of people moving to the area as well as the price of real estate in Colorado Springs. There are of course concerns about both affordability and inventory. Let's take a look at how 2019 stacked up historically as well as what our expectations are for the 2020 Colorado Springs real estate market

 

Median Sales Price

The median sales price is one of the strongest indicators of market strength. A climbing value shows market desirability or strength. While on the other hand, a flat or falling median sales price indicates a slowing or softening market. The Colorado Springs market has seen an impressive 71.3% increase in median home sale price over the last 10 years.

colorado springs median home sale price

This is certainly an impressive number but it is important to keep in mind that a brisk increase in the median sales price can often have a negative impact on the overall health of a market. When the price of homes reaches a certain point, markets can develop an affordability issue. This is what we saw happening in the northern front range real estate market over the past 5 years. Pricing in the Denver real estate market got so exuberant that potential homebuyers chose to move a little further south into the Colorado Springs area by driving a little, they were saving a lot. If the Colorado Springs median sales price continues to climb, the logical trend would be for buyers to look towards the Pueblo, Colorado area.

Days On Market

Days on market is a great indicator of the state of a real estate market. Shorter times indicate a seller's market, while longer market times are a sign of a buyers market. Most real estate pundits agree that a 6 months or 180 Days of supply is a "Balanced" market. Above 180 Days is a buyers market while under 180 Days is a seller's market.

colorado springs real estate days on market 2015 through 2019

The Colorado Springs real estate market has clearly been in a strong seller's market for the past five years. Low inventory levels make the prospects of an improving market for home buyers unlikely. So, if you are looking at Homes For Sale in Colorado Springs you need to take an aggressive approach, we suggest working with an agent that understands the market.

Number of Home Sales

Based on recent reports and historic data the number of sales in the Colorado Springs real estate market looks to remain strong. Here is a look at the past 10 years of home sales in the City of Colorado Springs. This doesn't include areas like Monument, Manitou Springs and Fountain Colorado. 

Colorado Springs Home Sales By Year

In Conclusion

The Colorado Springs real estate market looks to remain strong through the year 2020. Concerns revolve around low inventory as well as cleaning median home prices. As we saw in the Denver market recently, homebuyers give up and move on at some point. While development continues on the east side of Colorado Springs, it doesn't seem to be keeping up with the increase of homebuyers flocking to the area to enjoy our remarkable quality of life.

We will continue to monitor the Colorado Springs real estate market and look for opportunities for those homebuyers that work with us.

 

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Joe Boylan

I have been a Colorado Springs Realtor since 1997 and as a first-year agent, I received the Real Trends Magazine, "Rookie of the Year" Award. Since then I have participated in hundreds of real estate transactions. 

https://www.springshomes.com
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