April does bring showers to the Colorado Springs area, but it also starts the second quarter to 2011. Something else to watch for is a slight increase in Interest rates as typically this happens just as the buying season opens for business.
The first quarter closed with a burst of activity in March but I caution that one month does not make a trend nor allude to a turn around in the market. The jump in activity can be directly related to the return of several of our military and the shortage of rentals including the renovations on Peterson that are forcing many families to seek other means for housing during the rebuild of their base housing.
According to PPAR statistics (Pikes Peak Association of Realtors), February had 404 sold properties for the El Paso County and the average sales price was $194,950. There was a 98% sale to list price but once again I caution that this was final list price and not original list price- a very important differentiation. The average days on market came in at 96.
March saw a different story with 714 sold properties, average sales price $182,980, and days on market 94. There was a 97.4% sale to list price ratio. As would be expected the most active community was Fountain Valley with 95 sold properties as this is a favorite location for the military families needing to be close to Fort Carson, Peterson, Schriever, and the affordable housing found in this area.
So what should be expected during the next quarter? I predict a flurry of activity as more military return home, the transition of the arrival of the new Aviation Brigade to Fort Carson, and the slight increase in Interest rates putting the fear of loss into those fence sitters. This is the month of tax returns allowing some buyers to escape the renters trap and increasing rents in the area due to shortages, while others take advantage of the bond money still available for certain household income levels. For sellers I don't think it will bring top dollar as the buyers still have a flood of short sales and foreclosed (REO) properties to choose from as well as the increased supply that typically dominates the second quarter. The homes that are priced right and show the best will get the offer.
For more great buying and selling information check out my website at www.viewallcoloradospringsrealestate.com
Knowledge is power....and it saves a lot of wasted time and energy!