March 2025 Market Update

HOW IS THE MARKET?

We’re honestly still waiting to see how the market will shape up for 2025.  We’ve started a little slow, with total sales down a little and average days on market up a little from this time last year.

Activity always starts to build as we head toward spring and summer, and hopefully we’re heading toward a more stable and balanced market than we had last year, with more homes under contract than there were a year ago and interest rates projected to stay relatively stable through most of this year.  

Lots of folks had put their plans on hold a couple of years ago as rates climbed very quickly, and many people stayed on the sidelines last year with all the election and rate uncertainty, so there’s lots of hope that many of them will start moving forward again now that the election is past and rates have reached a "new normal". 

The overall market is pretty balanced between buyers and sellers.  There's higher competition for the available homes under $500,000 (which generally favors sellers) and lower competition for homes over $600,000 (which generally favors buyers), but there’s no price range in which either group has a huge advantage. That should be good news for the overall market and people who need or want to make a move this year.  Let me illustrate it this way...

• 10-15 years ago the market was really slow:  The pace was really relaxed, but the situation was stressful. Values were going down and everything felt stuck.  Buyers could take their time and be really choosy, but most needed to sell before they could buy, and that was nearly impossible.  It was like a traffic jam—everyone was stuck and stressed out because they couldn’t get where they needed to be.

• 3-5 years ago the market was really fast:  The pace was frantic, and the situation was stressful. Values were shooting up, but everything was happening too fast.  Sellers could sell quickly for great prices, but it was really hard to buy and people were having to grab whatever they could get.  It was like bumper-to-bumper traffic all moving at 90+ miles an hour—everyone was excited but also stressed because it just didn’t feel safe.

• Today the market is moving normally:  The pace is reasonable. Values are stable or rising slightly and people can make plans for moving.  It is like when traffic is flowing smoothly at or near appropriate speed limits. 

WHAT DOES THIS MEAN FOR BUYERS AND SELLERS?

• BUYERS - This is a good time to be buying.  For the first time in years, there are a good number of homes for you to choose from.  Let’s make sure you’re solidly pre-approved with a great lender, and we’ll be able to find you good homes in your realistic budget.

• SELLERS - As always, the best time to sell is when you need to sell to move where you want or need to move.  You’ll have to be realistic, and having qualified help with marketing, negotiating, and troubleshooting will be key, but you’ll be able to sell to get to where you want to be.

LET ME HELP YOU GET FROM WHERE YOU ARE

TO WHERE YOU WANT TO BE

Whether you’re thinking about buying, selling, or both, please give me a call.  These market trends may affect you, but your situation is unique.  I’d love to help you analyze your best options and craft a plan to get you moving forward, in the timing that works for you!

Here is a look at how many months of inventory we currently have in the Colorado Springs area, by price range.

And, here is a look at how the months of inventory, across all price ranges, compares with recent months.

Here is a snapshot of interest rates at the end of November.

And a look at how those rates compare with recent years and months.