Saturday, 28 March 2020

Monument, Colorado-Real Estate Market Wrap-Up for 2019

Written by Posted On Tuesday, 21 January 2020 19:10

Monument, Colorado is a small town located at the northern edge of El Paso County, Colorado just north of Colorado Springs. Monument began as a historic railroad stop on the old Rio Grande Railroad in 1872.

The area has grown and developed over the years and it’s finally become a well-established community. Homes in monument range from small condos and townhomes to large estate grade lots featuring towering Ponderosa Pines as well as views of the front range. Monuments beautiful natural geographic characteristics in conjunction with its proximity to both Denver and Colorado Springs have made the real estate market very hot.

Median Home Price:
Median home prices have increased by nearly 40% over the past five years. The current median home price for single-family/patio homes stands at $515,585. This is of course great news if you're homeowner or seller. If on the other hand, you are looking to buy a home in the area inventory has tightened while prices have increased.

Monument CO. Median Sales Price 2010 2019

Number of Sales:
While the Monument real estate market is growing, there aren’t a lot of sales in the area on a yearly basis. Over the last five years, the area has averaged 579 per year. As the chart below illustrates the Monument market and stayed consistent over the last five years. There are a couple of new home areas in the town of Monument and many of those sales are not reflected here.

Monument Colorado Number of Sales

Days on Market:
Days on the market shows the true story of what’s going on in the real estate market in Monument, Colorado. While the median price has climbed over 40% in the past five years, days on the market has actually decreased by 42%. This shows the strong demand for the Monument market.

Days On Market Monument Colorado

Conclusion:
While an improving market and climbing median sales price are good news for homeowners, we do worry about affordability. At some point, the market gets out of reach for enough homebuyers that prices fall. We aren’t there yet and we will certainly be keeping our on the market to see if 2020 is the year this happens.

Until that point, we will continue to talk to our clients about the Monument real estate market in seller’s market terms.

Advice For Home Buyers
If you are a home buyer in the market looking for a Monument Colorado Homes For Sale, It’s important to understand that you are looking in an area that is considered a seller’s market. A seller’s market is defined as any market where available home inventory is below a six month supply. This is the case in the Monument area. This means you need aggressive about getting to the properties as soon as they hit the market. Additionally, you need to work with a Realtor that understands the market dynamics. This means how fast are homes going under contract, how do bidding wars work, what are listing agents looking for in an offer. Not understanding these types of details can cost you the property you want.

Advice for Home Sellers
The biggest mistake home sellers make in a seller’s market is getting greedy. Just because an area is in a seller’s market doesn’t mean that a buyer is going to be willing to pay more for a property than it is actually worth. Value is still an important principle to keep in mind when putting your home on the market. It’s a better idea to price the home correctly from the beginning. This shows your home as a value which is more likely to produce multiple offers, ultimately resulting in a high net gain for the home seller. The opposing strategy is to overprice the home and hope that a buyer’s desperation motivates them to pay the price. This tactic usually backfires, even in a strong seller’s market. The reality ends up being a house with longer than normal time on the market. This gives the prospective buyer the sense that there is something wrong with the property.

Eventually, the home seller starts reducing the price while the days on market continue to rise. We call this chasing the market which means the seller keeps implementing a series of price drops until they reach the point where the property once again looks like a value in spite of the abnormal days-on-market number. This number inevitably nets the home seller less than a reasonable market-based price would have from the start.

It doesn’t matter what the condition of the real estate market is, there is always competition for the best buyers. So, make sure your home is well-staged, decluttered, in good repair. There are some great articles that talk about how to get your home ready to put on the market, here are a few of the most helpful articles:

Finally, choose a Realtor that knows the market, understands pricing and the contract-to-closing process. Making a mistake on this one can cost you thousands of dollars, even in a strong seller’s market.

Monument, Colorado is a great area and offers a wonderful quality of life. At times finding the right home can be a challenge but at the end of the day, it is worth the work. If you want to talk with one of our Realtors about buying or selling a home in Monument, Colorado, please feel free to get in touch with us. Contact 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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