So, we're definitely seeing a cooling in the market where it's not as crazy as it was last year. I don't think that it's sinking. I think that it's just kind of normalizing and leveling off because the demand is not as high as it was before.
Now, this is great news for buyers because last year buyers had no chances of getting into the home of their dreams unless they brought in 10, 20, 30, 40, up to a hundred thousand dollars in order to be able to compete to get the home of their dreams. And honestly, maybe not even the home of your dreams. Some of the houses - you were spending that just to get into a house period. I wonder how many buyers regret their homes today?
Is the market cooling off?
We had this huge influx of people moving out of large cities and they were coming to these smaller cities and it seems as though a lot of that has calmed down. That could be because school is starting, right? My kids started school today and people are starting to get back into the normal groove and swing of things. That has a lot to do with why things are starting to normalize. A lot of people are saying that the housing market is crashing or that it's beginning to sink.
Is the housing market going to crash?
I don't really agree with those who say the market is going to crash, at least not anytime soon. I might be wrong or I might be right, but I don't think that it's sinking. I think that it's just kind of normalizing and leveling off because the demand is not as high as it was before.
Average home price in Colorado Springs
So, if you watched my video last month in June about the average sales price in Colorado Springs, it was just over half a million dollars, $502,961 was the average home price in Colorado Springs for June. July's average home price is $501,138 dollars which is down from the previous month by .04% in June, so it's not too bad. We won't really get to see until maybe a month or two later to get the full picture of what the market will do, but I am seeing a lot of price decreases.
Are home prices dropping in Colorado Springs?
Homes are not going for as high as they were last month or in the previous months - actually like the whole last year. They're not going for as high as, but they're still priced around the same, just a few price decreases and houses are sitting on the market a little bit longer than normal. And, "normal" would be like three days was the median time frame for homes to be sold. So now it's probably a week or two instead which is normalizing, not necessarily sinking; it's just getting back to normal from what it was before.
Did home values go up?
This is the first time in a very long time where home prices did not go up in value from month to month in quite some time. This is great news. It's still going to be a seller's market. It's still a great time to sell your house, but now we're back to it also being less competitive for buyers to find a house. Buyers are now not having to write eight to fifteen offers. They might just be writing one or two offers. But the overall equity that people have gained from this time last year is still up 17.2%, so a home's value is always going to go up. There may be times where it might dip down for a little bit, but generally, eventually housing prices always go up, which is why owning a home is such a great investment. You already have to live in it, you might as well let it gain some equity for you over long term.
As far as the median price goes, which is the price that I like to look at because it seems a little bit more realistic when it comes to what you're going to probably be paying in a market like ours, that did not change from the previous month. That number is still the same from my last video. The median price had no change from June to July of 2021. For condos and townhouses that did go down a little bit. The average home price in condos and townhomes in Colorado Springs has gone down 2% from last month so it's now $324,807. The median price it is now down to $315,000 from $320,000.
That's all I have for you today for July's monthly market update. Please stay tuned and subscribed so that you can see how the market is progressing over time over these months. By the way, every now and again I like to do freebies and giveaways such as Starbucks gift cards, gift cards to local restaurants or local businesses here in Colorado Springs so if you follow me on my Instagram page, that's where you'll get all the freebies, giveaways, and things like that. I'd love to get to know you, connect with you as you build wealth through homeownership. I'll talk to you soon see you next week!
Today's stats and data are brought to you by ppar.com. ©Copyright 2021 Pikes Peak REALTOR® Services Corp. All rights reserved. Unauthorized reproduction is prohibited. Based on information from the Pikes Peak REALTOR® Services Corp. (“RSC”) for the period July 2020 through July 2021. RSC information may not reflect all real estate activity in the market and is provided as is without warranty or guaranty.
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IRIS BURTON BROKER ASSOCIATE
RE/MAX® INTEGRITY Colorado Springs, CO REALTOR®