What in the world is happening with the Colorado Springs market? With so much speculation and fear surrounding the housing market, jobs, the state of the current economy, and health concerns, many people are wondering if a housing market crash is coming and housing bubble claims has many buyers worried about making homeownership an investment or selling their current investment at all. You guys, I have been in research mode for weeks and here’s what I’ve discovered! Stick around to the end to see what the average home price was in October.
Zillow Homes in Colorado Springs
Zillow is in the hot seat with its recent ibuyer failure. Zillow recently announced on CNBC that they are discontinuing their home buying business and laying off 25% of their workforce, stating the ibuyer program was a risky and volatile endeavor. Zillow made offers to homeowners who wanted to sell their homes without using a real estate agent to help sellers avoid fees and having to get their homes show-ready and bring in the inconvenience of buyer traffic through their homes. However, when you sell a house this way you could be missing out on multiple offers and a larger profit potential by just focusing on one buyer - Zillow. Think about it.
If Zillow is buying your house and then putting it back on the market with little to no repairs or updates, how much money are you really missing out on? You’re also feeding the corporate giants instead of feeding your local economy and neighbor who is a real estate agent building a small business. Granted, there are situations that require this, but I’m speaking in general. With this billion dollar company Zillow being accused of manipulating the housing market causing inflation on a viral TikTok video by real estate agent Sean Gotcher, you do have to wonder when their popular “Zestimate” feature is dominating home valuation inquiries.
Luckily, some of the Colorado Springs home sellers were able to get their homes' value paid for by Zillow. Some of the homes bought and sold by Zillow in Colorado Springs went negative on their profit. With multiple price decreases, they were forced to sell at a loss. One home in Colorado Springs, for example, was purchased by Zillow at $510,600, then re-listed at $553,900, had 5 price decreases, and ended up selling at $475,000 within 3 months. 🚩🚩🚩
Colorado Springs Foreclosure
Foreclosures are on the rise. We all knew this was coming with so many people losing their jobs and the amount of people in forbearance who could not pay their mortgages, the writing was on the wall for foreclosures. While many owners were able to return to paying their monthly mortgages, some were unable to. New foreclosure starts in El Paso County has increased, but if you trace back the data to 2016, you’ll see that the new starts are still significantly lower than previous years. Also, consider the amount of new people moving to the area at a rate of about 17 and a half percent since 2010. More homes equals high numbers. Visit the El Paso County Public Trustee for more information and stats on foreclosures.
Average and Median Sales Price Single Family Homes
New listings are down for October. Looks like after getting settled with the start of school and the end of summer, the average home sales price has gone back up to $510,180. This is up 2.4% from September, and I’ll link the September housing market stats for Colorado Springs in the text box below this video. This equity is up 18% overall from last year. Interest rates have gone up as well. So this makes affordability a bit tougher. The median sales price is up from last month by 1.4% and is $446,000, a difference of $6,000. Take a look at mortgage rates and how much they are predicted to go up by Q3 next year. It may not seem like half a percent is going to make a huge difference, but this could raise your payment by about $100, and that’s not considering the rising home prices.
Average and Median Sales Price Condos/Townhomes
Let’s talk about the median price for condos and townhomes in Colorado Springs. Last month we saw this median price go down a bit from the previous month. In October the median price was $326,272, so just a tiny bit higher than August. I’m thinking people took a break in September on buying homes. Wonder what November stats will look like? Subscribe and get notifications every time I upload a housing market video! See you next week!
PROSPERITY PROPERTIES GROUP
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Colorado Springs, CO REALTOR®