If you have been paying attention to the real estate market in Colorado Springs, you probably noticed that home prices had been rising steadily for several months. The low supply of homes available for sale and the high demand of buyers wanting homes continued to drive prices. Then we saw interest rates begin to creep upward. While the improvement in the housing industry has been good news to everyone, we did see changes in August and September.
While the average sale price tended to go up and down between September 2012 and April 2013, they rose steadily in May and June, and then peaked in July. The average sales price then fell in August and again in September, leading us to believe maybe prices are beginning to stabilize.
In September, we also saw interest rates improve because the Fed announced they would not yet cut back on Mortgage Based Securities.
Total Active Listings fell from August to September from 4,251 to 4,070 and the total number of home sales fell from 1,105 in August to 829 in September. The total number of foreclosures as a Percent of sales also fell to 35.6%. The Average sales price between April 2013 and September 2013 fell from $249,250 to $245,177 and the median sales price fell from $220K in April 2013 to $213K in September.
When you look at the September Colorado Springs real estate market, the percentage of houses priced between $200,000 and $249,999 were the biggest sellers with 18% of the total sales in this price range. The year-to-date sales in this price range were similar with just over 18% of the total sales. In September 2013, the total percentage of home sales priced at $249K or less was 67% of the total sales. Home prices over $250K were only 33%. Year-to-date totals varied by only 1%, with 66% of the total sales priced at $249K or less and 32% price at over $250K.
In the past year, we have seen that the demand for homes priced between $250K and $300K was highest, yet in September, there is just over a 5-month inventory supply of homes available. The total percentage of sales for homes priced $400K and higher was dramatically lower and the inventory of homes available exceeded a 41-month supply.
Was the drop in sales between August and September a seasonal trend or the result of uncertainty created by the government shut down and the economic risks surrounding the debt ceiling? With the government’s decision to reopen and lift the deb ceiling, will this trend change? As we wait to see what the reaction is and deal with the onset of the upcoming holiday season, we will anxiously wait to see what the upcoming month’s activity brings.