The Colorado Springs Real Estate market continued to be strong in the year 2019. Growth in the area has continued over the past 5-years and doesn’t really show signs of slowing down. We are looking forward to 2020, and we expect that this year will see some drastic growth in terms of no. people moving to Colorado Springs along with the price of the real estate. Although there are some concerns about the inventory and affordability of the real estate market. In this article, we will see how the real estate market was stacked up in 2019 and what all can we expect from the 2020 real estate market in Colorado Springs.
The Median Sales Price
What is the median sales price? Median sales price can be termed as one of the best indicators of the market strength. When the median sales price is showing a climbing value or upward slope, it shows the market strength or desirability. On the other hand, a downward slope or flat median sales price shows the softening or slowing down of a market. Fortunately, the Colorado Springs real estate market has shown a 71.3% increase in the median sale prices of homes for the last ten years. If you have been looking at Homes For Sale In Colorado Springs over the last few years, you are probably already aware of this fact.
The fact is, this hike in the median sales price is quite an impressive thing to consider when speaking about a real estate market. But it should be noted that a drastic increase in the median sales price often has a negative impact on a market on an overall basis. If the price of properties reaches a certain point that is beyond the marginal limits, the market can face affordability issues. The northern front real estate market has experienced something like this for the past five years. The prices of homes in Denver Real estate has gone so high that potential real estate buyers preferred to drive a little further towards the southern part of Colorado Springs and buy property there. This was even cheaper than affording such high priced homes in Denver. Therefore if the median sales price in Colorado Springs continues to rise, then automatically potential buyers will move towards Pueblo in the Colorado area.
According to 2019, the properties in Colorado Springs had a median home value of $293,500. In just one year of time, the inventory levels have caused the rates to rise drastically. To this area's demand and supply ratio, the prices increased to about 8.8%. On the other hand, median homes prices, in the other part of the United States have increased by only 6.6 %. What it shows is, in the upcoming years, the median home prices of the Colorado Springs real market is going to outpace the national average. In 2020, the median home prices are expected to rise at an additional 5.5% whereas the other parts of the US may see a rise by only 4.1%.
Days on Market
This is a great indicator to show the state of the real estate market. Longer times indicate a buyer's market whereas shorter market times indicate a seller's market. Real estate experts often agree that six months or one-eighty days supply shows a balanced market. When it is above one-eighty days, it’s a buyer’s market and when it’s less than one-eighty days it’s a sellers’ market.
For the past five years, the Colorado real estate market has strongly remained a seller’s market because of the obvious reasons. Low inventory levels are not going to make the market supportive for home buyers. Therefore if you are looking for real estate properties in Colorado Springs, we suggest you consult with a real estate expert, who has detailed idea about the real estate market conditions in Colorado Springs. Take an aggressive approach if you are planning to buy a property here.
Number of Home Sales
As per the recent reports & the history of the data, the no. of sales in real estate market of Colorado Springs seems to remain quite strong. During the past ten years, the no. of home sales in this area kept on increasing. If you check the image of the graph, you will see an upward slope throughout the past ten years. 2016 and 2017 have seen the maximum number of sales in this area.
Colorado Springs Investing
Though today’s’ high prices are not quite suitable for home buyers, it is suited for another exit strategy- that is the buy & hold rental property investment. As the prices of home values continue to increase, it would be a great investment to buy a property here and hold it for a while. The more you hold a property, the better value you will get in the future. Through this way, the potential homebuyers will be able to get returns by buying a home and renting them. This way the home buyer can recoup the high acquisition costs.
A summary of the real estate market in Colorado Springs
The Colorado Spring real estate market has become beneficiary, despite the increase in the prices that the market has seen in the past few years. It should be noted that the same demand which is responsible for increasing up the home prices is also responsible for making the real estate market more attractive to invest on. Investors who are able to buy properties in Colorado Springs stand to get benefited due to the lack of inventory in that area.
Finally, the Colorado Springs real estate market will remain strong throughout 2020. The only concerns are low inventory and cleaning median home values. In Denver real estate market we already saw how potential home buyers preferred to shift from that area as the prices rose to a great extent. Similarly, if the prices in Colorado Springs rise above the marginal level, this area too might suffer.
So have you thought of investing in Colorado real estate market? If not keep connected to us, since we will monitor the Colorado Springs real estate market and keep updating the latest news. For further questions feel free to write to us.
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