Colorado Springs Real Estate Today
The current real estate market has caused a lot of uncertainty for buyers and sellers alike. Below are 4 current trends I’m noticing in this market that could help ease the concerns of those who are considering buying or selling a property in the near future. As always, you’re welcome to reach out to Keegan McDowell Real Estate with any questions!
The current median home price in Colorado Springs for single-family detached homes hovers around $468,500, with properties taking, on average, 38 days to sell. Generally, if a home remains unsold after 4-6 weeks, it may be considered overpriced, but I tend to recommend revisiting the price based on buyer feedback after about 2 weeks on the market. Multiple-offer scenarios are less common, and a noticeable trend involves more price reductions on listings aged three weeks or older.
Interest rates for most individuals are currently in the 7s or higher, though the savvy use of a "buydown" strategy can secure rates in 6s or lower. Sellers are increasingly adopting a "Cash Back for a Rate-Buy-Down" approach, proving to be mutually beneficial. Although we’re hearing more about adjustable-rate mortgages and 2-1 buydowns, I’m hesitant to recommend these strategies as it’s impossible to predict exactly what will happen to interest rates in the coming years. On the other hand, long-term rate buydowns offer a secure alternative, especially given the existing global uncertainties.
While predicting mortgage rates remains speculative, experts anticipate a slight decrease next year, which almost guarantees much more market competition. To navigate this potential shift, my suggestion is to buy now while competition is low and consider refinancing when rates drop. The biggest thing to consider in this situation though is that it is essential to budget for the current rate when making purchase decisions, as these near future rate reductions are not at all guaranteed. Many recent refinances involved older mortgages with rates exceeding 5%-6% (which was the norm until about 2010 when rates finally dropped), emphasizing the value of securing today's rates.
New construction homes present a compelling option in the current market. Traditionally, new-build homes tend to sell at a significant premium, but this trend has begun to reverse in the past year. Builders are able to leverage low mortgage rates as an incentive, with some offering rates in the 4s for buyers who use their in-house preferred lender. Exploring this option is a great option for buyers - but always remember it is important to have an informed real estate agent to represent you before entering a builder's sales office.
Reach out to me today for more info and/or to start your home-buying or selling journey! I can also connect you with trusted professionals anywhere in the country.
