The Colorado Springs Housing Market Just Got Worse for 2022

The Colorado Springs housing market for 2022 just got worse now that interest rates have gone up. Now that prices are overinflated, we're adding a few hundred dollars more per month on that monthly mortgage payment. The frenzy might be over.

Colorado Springs Foreclosure New Starts

The graph above goes over foreclosure new starts going back to the last five years, so back to 2017. And when you look at the stats in 2017, back when we had a little bit more of a healthier market. As far as being on the market, I remember when people were saying that we weren't able to ask for concessions back in 2017. I was floored, like, you know, I was offended by that. That was before appraisal gaps and before people offering tens of thousands over the list price to be competitive. I would say a most normal market was probably before 2016. But the graph above is from the El Paso County Assessor's-all public information, you can pull it up yourself.

The highest number in 2017 was108 for new starts. In April of this year we had 119; a considerable jump when comparing to last year. But, that was because we had the forbearance program, the government stepped in and helped out with those mortgages to help people from going into default. People had all this time shortly after the pandemic to kind of, buy time, take their payments and put them on hold or wrap them on the back end of the loan. With some banks, you didn't incur additional interest. It was a nice thing to take advantage of - the 18 months of no mortgage payments.

Will Housing Prices go Down in Colorado Springs?

Foreclosures could take up to about a year to come to fruition, this could be the start of something really bad, a lot of houses are going to come back on the market and that could reduce the prices, but then with the interest rates going up another 2% could cause a problem.

Is Housing Affordable in Colorado Springs?

What about your middle-class buyers, people that can no longer afford a house. And so that's kind of the new dilemma that has come into the picture. You know, with that middle-class situation, the monthly payments are going to be way too high, and the housing prices are already super inflated.

In this graph, you're going to see the average days on market. We've got pretty had ten days on the market on average back in May of 2021. We went all the way down to seven in July. Of course, it's a popular month to be selling your house. Lots of buyers come out after school is out. They want to move in the summertime before August when kids go back to school, and then we shoot up longer days on market over the months from there peaking at 14 in December.

That's why they say the best time to buy is over the holidays. You're going to get the best deal when you're buying a house during these months because most people don't want to move. First of all, it's wintertime. Second, no one wants to move over the holidays. I bought my house on Christmas one time and walked into 20k in equity by closing. As January hits, you get those days a little bit longer and then in May of this year 2022 we're at 11 days on market.

Overvalued Homes in Colorado.

I wanted to share this video of the day of reckoning coming.

This was an article written by the Denver Post, talking about the over inflation, specifically Denver home prices being way higher than they would be with the absence of the pandemic.

That has escalated the rising house prices, mass exoduses, leaving these major cities wanting to go somewhere that wasn't as strict as some of these larger cities such as California. Denver ranks 37 out of the 100 largest metros in April. Home values soaring just over 30.5% of what would have been expected based on long-term trends.

This would not have occurred, had the pandemic not hit creating this wave of the expected value for Denver based on trends and Zillow. Now, we know that Zillow went under with their i-buyer program because of their faulty algorithms. So, I take this with a grain of salt. But more importantly, is the Colorado Springs gap, which was reported at 45.9%, depending on which report you read. I go by the Pikes Peak Association of Realtors' data.

Nonetheless, that's a huge difference. That's almost double inflation. So what Denver Post is saying is home values tend to cycle between periods of over-inflation and undervaluation. So you can read this article in-depth, but just saying that we have a very high premium here in Colorado Springs.

I don't know how much it's going to change. I'm not an economist, I'm a real estate agent, and I use the data that I see, and share that with you. As I've said before, home buying has been tough. Now with interest rates, potential foreclosures coming on the market, it's making a lot of agents nervous with that higher monthly payment for buyers.

Colorado Springs Housing Market Summary

Here is the monthly summary report. This is where we get my average sales price. If you follow me on Instagram, I'm always posting the average home price, but let's look at the median home price.

If you're looking for a house, that's probably where you're going to land to get your average three-bedroom, two-bath home. That median price went up about half a percent. We're down on the average sales price, comparing May of 2022 to April of 2022. But still, year over year, we're looking at 13.2% increase.

So I will be staying on top of these numbers so we can see whether we're heading for a crash.

Homes For Sale from in Colorado Springs from May 2021 to May 2022

If you look back at the history, we didn't have a ton of homes available for sale in Colorado Springs last year in May. 1,184 was a good month for us. 1,360 in May and people are worried about that. Back in 2008, the new number of listings was 5,000 to 6,000, and even over 7,000 at one point. Even if we hit 2,000 new homes for sale on the market - to me, that is the market balancing. That's not a crash to me.

Have questions about the housing market? Feel free to reach out.

IRIS BURTON | REALTOR® | COLORADO SPRINGS

PROSPERITY GROUP BY EXP REALTY

3361 NORTH ACADEMY BLVD

COLORADO SPRINGS, CO 80917

719.315.5016

IRISBURTON.COM

IRISJBURTON@GMAIL.COM

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What do you think? Will there be a crash?

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  0%Who knows?

Should I Sell My House in Colorado Springs in 2022?

Welcome back! We are going to be talking about whether or not you should sell your Colorado Springs home in this current 2022 market. You may have been thinking, should I sell my house right now? I know a lot of agents would say yes, you got to sell your house. This is the best time to sell a house historically. You can get the most amount of money that you'll probably ever get for a very long time. Inflation has gone up very high. We have a limited amount of homes available for sale and a lot of demand. There's a lot of buyers and not enough homes to go around. So really everything is just over inflated. People are offering on average between four and six percent above the list price, full cash, full appraisal gap. Most agents are going to tell you that you should sell your house. I'm going to give you my honest opinion on whether you should sell your house in 2022 or not.

Why I’m Not Selling My House Right Now

I own my own house and I would honestly not sell it because I plan on staying here for a long time. Hopefully this house will be an investment retirement plan for us down the road. Now, each situation is different so you really have to think about whether you're going to be living here or not. Do you have to sell your house? Are you sick of living in Colorado Springs? There's all these different factors that would make your answer either a yes or no for you. Let's talk about those things.

Why You Should Sell in 2022

Here are just a few questions that you should ask yourself: Do you have to sell? Do you have to move? Are you going to be relocated? Are you downsizing? Are you needing to be closer to a specific part of town? Maybe you've got a different job and the drive is just killing you. Or maybe you have some debt that you want to clear up. Maybe you can't afford your house anymore. Perhaps you're tired of living in Colorado Springs because you feel like the city has gotten too big. You really miss the hometown feel and you'd rather live somewhere where it's a little quieter, where there's less going on, less traffic. You may want to be somewhere where it might be easier to find a job. If any of these are the case for you then you might want to consider selling your house. These are reasons why I would say yes, you should sell your house in 2022.

Moving Up

If you want to sell your house in Colorado Springs, you can probably afford twice as much house for half the amount of money if you move to certain areas. If you need a list of smaller, less expensive towns, shoot me an email. But, it's kind of like what Californians did to us. They sold their homes and were able to get a much nicer and larger property in Colorado. That could be a reason for you to sell and move. Maybe you want to start a new life. Maybe you need a change of scenery. You can work from home, or you don't really have to work. Maybe you just want to get out of dodge so to speak. Then I would say yes, definitely sell your house in 2022.

Cashing Out Your Equity

Now the other part of that is perhaps you have a lot of equity. Maybe the whole mortgage is paid off. Say you have your home paid off, you're living in a neighborhood with no HOA dues, and all you're really paying is property taxes. That house you bought maybe 20 or 30 years ago may sell for $300,000 or $400,000. All of that would be profit. You can take that money and buy something new. But, this would only be beneficial if you were going to be downsizing or moving to a less expensive area. Maybe you're tired of walking up and down the stairs. Maybe you have a yard and you're tired of watering grass, pulling weeds, taking care of gutters, and cleaning it up. I'm so grateful my husband does all that! It's a lot of work taking care of a house. Some people are just tired of doing it all. Maybe you want to downsize and get a townhouse where the HOA takes care of all of that. A lot of those things you're going to want to consider. Because if you were to take that profit from selling to buy something else, you're not going to really be upsizing a lot. You're probably going to be finding another house that is very similar. You may need something bigger. Maybe your family is growing. Maybe you have people coming to live with you or want to get roommates to make a little more income. A lot of people are adding rental spaces into their properties. If you are wanting to get something bigger you're going to need a lot more money, just keep that in mind. You're probably going to end up with a mortgage again. If you decide to sell and take the proceeds to buy something bigger, you're likely going to have competition. The supply/demand issue. The houses are so expensive and are going for way over asking price.

If it's not going to be that much bigger of a space, you're probably going to want to ask yourself if you still like your house and if it will do for now. A lot of people are comfortable with their mortgage rate and payment. Maybe you don't like your house and you don't mind paying a mortgage again or making a higher mortgage payment for something nicer. Maybe something closer to the mountains so you can have those views that everybody wants. It might make sense to make that move if that’s the case. Really sit down and figure this out. Figure out the math, how much it's going to cost. What kind of house can you get and afford in this new inflated market. Just get all of that dialed in before you make this decision. Now if you want to cash in on your equity as soon as possible I do feel like yes, you should sell now. Who knows what's going to happen?

Is A Recession or Housing Crash Coming?

A lot of people are predicting a market crash because we can't keep going on this route, right? People need affordable housing. It’s going to have to come full circle and all of the signs are there for a recession. Read this article on Business Insider. The only difference is, when it comes to housing we are at an all-time low for foreclosures. Historically speaking, we've never had this low of foreclosure inventory because it's so easy to sell a house and make a ton of money. As long as there’s a supply and demand issue, there is going to be this housing crisis. A lot of people are buying second and third homes. Investors are coming in, and when I say investor I mean someone who already has a home and they're using the second property for rental income. I had a rental in the past. It's not all these big corporations that are buying up houses. Some people own three or four houses at a time. That doesn't leave enough homes for other people investing in property. It’s one of the easiest and best ways to build wealth for yourself. People are realizing that and taking advantage of those opportunities. Especially in a city like Colorado Springs.

We have all these signs of recession. We have inflation, we've got fuel prices going up, we've got housing costs rising. Now the Feds are hiking up interest rates in an effort to balance the market. Now it's gotten even worse. All that to say, we don't know what the market is going to look like in a year. We don't know if you're going to be able to get as much as you would today, right now in 2022 as you would in 2023. Experts are predicting that housing is going to remain steady at least through the end of 2022. Like I said, we don't know if there's going to be an actual market crash. We don't know if there's a bubble. Previous information shows the housing crash and housing bubble were a result of poor lending practices. Adjustable rate mortgages were big. People were cashing in on their equity, refinancing and pulling cash out. Taking second mortgages to fund their trips and lifestyles. That caused a huge financial crisis. A lot of people lost their jobs and could no longer afford their lifestyles, couldn’t afford to pay back the second mortgage they took out. There's a lot of different factors when it comes to this in our current situation. It's kind of this weird perfect storm of different things going on. Wars, disease, inflation, what the heck?!

Long story short; depending on your personal situation, if you don't need to move, you plan on making your home a retirement plan or an investment, you don't need to sell. If you're happy where you are, you love your neighborhood and your home then of course you don't need to sell. Finding a new one is going to be very challenging right now. I am a real estate agent. I do make money when people sell their homes. For me, I feel like I’m not going to sell my home because I won’t be able to find something bigger or nicer. I'd rather just hang on to it for a while. That’s just my personal opinion about whether you should sell your house now in 2022.

Sell Your House in Colorado Springs

If you do need or want to sell your house give me a call or send me a text or email. I'll help you get the most amount of money in the least amount of time. I have a great marketing packet that I put together for you. I don't do sales like anyone else. I don't just slap photos on the MLS and call it a day. You get excellent marketing. Professional photos, Facebook ads, my YouTube channel, and so on. You want to get a lot more eyes on your property because buying a house is different now. 95 percent of people start their home search online through Zillow, Craigslist, and Realtor.com.

Your house needs to look great online as well, not just in person. Some people still aren't going out because of health concerns. They’re not going to open houses and walk through showings. I'd rather do a virtual tour first to see if I like the layout and overall how the home looks. Then I decide if I have enough interest to actually want to go see it in person. I do everything online, all my shopping is done online. I post properties on Facebook because Facebook knows how to target home buyers. You have a better chance of getting the highest and best offer, significantly over the list price. Anybody that tells you you don't need good marketing in this market is lying to you. You want to draw a lot of attention and interest to your home to ensure you get the most amount of money with terms that you want. You can leverage and negotiate based on what your needs are and that all boils down to a good marketing strategy. If marketing wasn't important we wouldn't have these great commercials at the Super Bowl or ads at the grocery store or while you're scrolling on Facebook.

IRIS BURTON

PROSPERITY GROUP

BROKERED BY EXP REALTY LLC

3361 N Academy Blvd

Colorado Springs, CO

irisburton.com

irisjburton@gmail.com

Book a Call

Moving to Colorado Springs 2022: Checklist and tips

Today we're going to be talking about common questions you guys have been asking about relocating to Colorado Springs. Whether you are moving to a military base here, or you're getting relocated for a job position, or just looking for a change. I've got all the details so stick with me.

I’m with Prosperity Group Brokered by eXp Realty, right here in beautiful Colorado Springs. I'm always posting videos about living in Colorado Springs. Moving here, the housing market, and things of that nature. I have a free relocation guide as well. Give me call, text, or email if you’d like a copy. I’d be happy to send it to you.

Moving to Colorado Springs Checklist and Tips

How Much Money Do I Need to Move to Colorado Springs?

The first question that we will be addressing today is how much money you need to move to Colorado Springs. Now, this really just depends on where you're moving from as to how much of a moving service you're going to need. If you're moving all the way from one side of the country to here, that's definitely going to cost you a lot more versus just moving from a couple states away. The last time I got a quote for the movers to pack your stuff for you and load it onto the truck, it was about $2,500. That was just moving your stuff, maybe one truck. If you have a lot of stuff or moving from further away, you're probably going to be looking at a lot more.

You're going to have to hire someone to move your vehicles as well, if you have that. It's just such a huge scope of moving services that you might need. I have a couple references for you. Just so you can get a few different quotes. You're going to want to call two to three different companies and make sure that they have good reviews. Just because they might be cheaper doesn’t mean that you should use them. If you want all your stuff to show up on time, don't go with the cheapest person. Go with the person that has a good amount of reviews and actually read the reviews. Don't just look at how many stars they have. Go through and read them, make sure that they are legit.

Is Colorado Springs a Good Place to Live?

The second question that gets asked a lot is if Colorado Springs is a good place to live. Colorado Springs is definitely a great place to live. We have so much to offer. We've got mountains, we've got views, we've got clean air-fresh air but, the traffic isn't the greatest. Overall though Colorado Springs is one of the best places to live. We've topped several charts including Bankrate and Forbes and the list goes on. Our houses used to be a lot more affordable, five or 10 years ago. As of late, it's gotten really popular and less affordable than before. But, if you're comparing us to places like Hawaii, California, or New York, you can get more house for your money here in the Springs. People that have lived here for a long time will say that it's not affordable anymore. Whereas new people really enjoy the prices here, the cost of living. I do have a video about that so I won't go too deep into it. Check out my YouTube channel here. I have a couple of different videos on the cost of living. There are more stats about the housing market as well.

"From hiking and biking trails in Garden of the Gods Park to the notorious white-knuckle drive up Pikes Peak, the city is a gateway to natural beauty" – Bankrate rates Colorado Springs #22

Get information. Not just based on what you hear from other people but, get actual data and facts. Not all these hyped-up click-bait videos and headlines. Make sure that you're getting real information from a local (like me) or, other people that are in our market on YouTube. There are other agents that are providing good value. Just make sure that you’re doing your homework and research. And maybe come out and visit. I always recommend that you visit because the climate is so different here. Depending on where you're coming from. Even a lot of places in the Midwest might not have the same weather or climate here. I know that some people have a hard time breathing, like if you have asthma. A lot of people have a hard time with the altitude, they’ll get what’s called altitude sickness. So, you really want to make sure that you're going to be comfortable when you're living here. It's a very dry climate as well.

What Do I Need To Know Before Moving to Colorado Springs?

The next question is, what do I need to know about moving to Colorado Springs? I actually have a playlist called living in Colorado Springs, just click here. Go ahead and watch the video and just let me know if you have any questions. If there's something specific that that you're looking for please feel free to reach out!

I also have in my relocation guide all of the school districts. So, if you are wanting to know which neighborhoods are in the district that you want to be, I have a map. Now, even with the map make sure that you call the district first. If you have a house that you're looking at in a specific district, you want to make sure that you'll actually be going to the school you’re interested in. You can click on the links inside of the map and it'll direct you to that school. Call the school district and make sure that the home you’re interested in is going to be in that school or district now in Colorado Springs. You can choice into other schools but, that's kind of a gamble and a risk. If you want to do something like that, you got to get it in early.

Don’t wait until the last minute right before school starts to get your kids registered. A lot of them will have what's called a “choice-in” cutoff date. That could be before school is even out for the current year. So, this could be in February. If you're thinking about "choicing" your child into a different school or district, you're going to have to get that done right when you sign up or, they'll tell you when the open enrollment is. Each district and school is different. Make sure you call.

Do a virtual tour of the school. Some of the schools will allow you to come visit and take a tour. I recommend that. If you're going to come out and visit make sure that you have that on your to-do list.

Make sure you visit the DMV. I have all those links on my website for the county, just a bunch of resources. You don't want to be here and not be able to do whatever you need to do when you get here. Just have it all planned and ready to go.

Setting Up Services for Your Home

Last thing, make sure that you get your utilities set up. Don't wait until the last minute. You might get a disconnection or a reconnection fee. If you buy a house out here make sure that you call the right utilities company. We've got Colorado Springs Utilities, Black Hills Energy, and Cherokee Metropolitan District just to name a few. You can download your free checklist on all those relocation items from my website. It'll have the different utilities companies and all the stuff that you need to do. Get set up with some of the companies we use. A lot of banks in the area are convenient to you. So, download that checklist.

Ready to Download Your Relocation Guide?

Let's face it. Moving across states can be overwhelming. But, why make it harder than you need to? Let the experts work for you. Book a call with me below, or download your free guide.

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IRIS BURTON | REALTOR®

PROSPERITY GROUP BY EXP REALTY

3361 NORTH ACADEMY BLVD

COLORADO SPRINGS, CO 80917

719.315.5016

IRISBURTON.COM

IRISJBURTON@GMAIL.COM