The Colorado Springs housing market in 2022 is more competitive than ever. Is it even worth trying to buy a house or sell a house in this market? In this video I will go over why the Colorado Springs housing market just got worse and whether there is a crash or a recession on the horizon.
How much money do I need to live in Colorado Springs?
According to payscale.com, the average salary in Colorado Springs can range from about $49k and up depending on the profession. With lenders advising buyers to stay around one third of their income for housing expenses, that doesn’t make owning a house affordable in Colorado Springs based on these numbers unless you are putting a huge down payment on the house. Affordability is definitely a challenge for single income homes.
Average Home Price in Colorado Springs
The average home price just hit $539,684. This is up 4.8% from the previous month. The median sales price is at $475,000. This is up $65k from last year. This doesn't seem to be slowing down at all. Check out this graph of homes for sale in Colorado Springs average sales price over the last 20 years.
Foreclosures in Colorado Springs
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In the graphs in the video, you'll see how each state is doing pre-pandemic to now in 2022. The green states aren't doing so great, while the blue states have less foreclosure starts. As you can see, Colorado is green so our foreclosure starts are up 5%. We'll get into that more in a bit.
People are getting ridiculous with spending and overextending themselves. Homeowners got really excited about their equity and let's face it, not everyone is good with their finances. According to SpendMeNot.com, 69% of adult Americans have less than $1,000 in a savings account. So what do you think happens with 8% inflation and overspending after using cash out refi's to supplement income or get caught up with debt? Will people be able to keep up with their payments, higher property taxes since values are up, inflated gas, food, and mortgage payments?
Housing Crash in Colorado Springs
Now, realistically, home buyers are much more qualified these days than then. So I think housing prices will begin to stabilize at worst, but I honestly don't see a housing crash any time soon, but that's just my humble opinion.
Should I Buy a House in Colorado Springs?
Easy answer, yes. But not a one-size-fits-all for everyone. Everyone needs a place to stay right? You're likely going to be paying rent regardless and in today's market that looks like at least around $1,800 per month and I'm being very conservative because it's more like $2,100 per month for a 3 bedroom, 3 bath in Colorado Springs.
So you live here for 5 years and you pay $1,800 per month for 5 years, here's what happened. You spent $21,600 per year on rent on an asset that belongs to someone else. $108,000 in 5 years on an asset that belongs to someone else. Let's just think about that for one holy second. You've spent 6 figures to pay off your landlord's mortgage. You just bought your landlord 1/4 of his house. Is that not deflating? Now think about spending $108,000 on your own asset. Seems doable, right? If you could have bought something 10 years ago would you have?
IRIS BURTON | REALTOR®
PROSPERITY PROPERTIES GROUP
Brokered by EXP® REALTY, LLC
3361 N Academy Blvd, Colorado Springs, CO