Colorado Springs-area home prices took a breather in July from their record-setting pace during much of this year. But that doesn’t mean the housing market is poised for a significant slowdown, industry members say.
Single-family homes remain in demand, sellers continue to fetch top dollar for their properties and buyers still engage in bidding wars amid a shortage of houses on the market, some real estate agents say.
“It is still very much a seller’s market,” said Rick Van Wieren, a real estate agent with Re/Max Properties in Colorado Springs. “We were probably cruising along at 85, to use a freeway analogy. And we’re probably going to be in a stretch where we’re more like 75 or 70. On the freeway, do you call that a slowdown? You’re still moving really fast.”
According to a Pikes Peak Association of Realtors report released this week:
• The median price, or midpoint, of area home sales was $450,000 in July — unchanged from the record high set in June, but still 19.4%, or $73,000, higher the median of $377,000 in July 2020. Before July, median prices had set record highs for five consecutive months starting in February.
• The average sales price was $501,138 in July, slightly below June’s record of $502,961. Yet, July’s average price rose 17.2% or $73,545, from $427,593 a year ago. Before July, average prices also had been on a five-month streak of record highs.
• July home sales totaled 1,844, a nearly 7% year-over-year decline. That drop could be misleading, though. July’s sales were the second highest monthly total over nearly 30 years, based on historical data maintained by The Gazette. Last month’s sales fell, however, because they were compared against a record 1,978 home sales that took place in July 2020.
• Through the first seven months of 2021, home sales totaled 9,989, up almost 9% from sales of 9,177 during the same period last year.
• Homes averaged just a week on the market in July compared with 20 days a year ago.
• At the end of July, the supply of homes listed for sale totaled 981. That’s the highest monthly inventory since 881 homes were on the market in October 2020. Still, July’s inventory was down 29.4% on a year-over-year basis, and historical figures show July listings frequently topped 3,000 and even 4,000 in past years.
The fact that July prices didn’t set another record high might indicate that some buyers took a break from looking last month, even as overall demand remained strong, said Chris Lutyen, managing broker for Coldwell Banker Residential Brokerage in Colorado Springs.
In July, some buyers typically pause their house hunting while they go on vacation, Lutyen said. Or buyers might delay their search as they get their kids ready for school at month’s end, he said.
But that doesn’t mean a slowdown is in the offing; long-term mortgage rates remain “crazy low” and attractive to buyers, Lutyen said. Thirty-year, fixed-rate loans averaged averaged 2.80% nationally last week, according to mortgage buyer Freddie Mac.
Lutyen expects August to be another busy month for sales.
“We’re still very much in an extremely strong sellers’ market, and there’s plenty of buyers out there,” he said.
Van Wieren, of Re/Max Properties, said he continues to see multiple offers for homes. There have been occasional price reductions on homes listed for sale and some properties might stay on the market a little longer before they sell.
But Colorado Springs remains an extremely popular place to live, he said. The city’s quality of life draws buyers from other areas of the country, and it “never hurts” to receive national media attention as a great place to live, Van Wieren said.
U.S. News & World Report’s most recent list of best places, published in July, tabbed the Springs as No. 6 among the nation’s 150 most populous metro areas.
“We still have equity-rich buyers coming from lots of different markets,” Van Wieren said. “We have buyers who didn’t win yet; every time you see a home sell, that was a multiple offer situation, it’s anywhere from three to six buyers that didn’t get the house. And so they’re still on the market.
“This is going to take some time where maybe it’s only three offers instead of six, or nine or whatever,” he said. “But is that slowing or softening? … Because it’s still ridiculous.”
This content was originally published here.
