HOW IS THE MARKET?
As we head into October 2024, and everyone’s attention is on the elections, the real estate market is stable and relatively balanced but also a little spotty. After several years of a seller’s market, with low inventory, high demand, rising prices, and low interest rates, the current market we are in feels slow by comparison. It is true that volume is down—maybe because people are waiting to see what happens with the elections, interest rates, and inflation—but there are still lots of people buying and selling homes.
As you can see, the months of inventory in our current market are trending up, meaning it would now take longer to sell all of the currently for-sale homes at the current rate of sales than it would have taken in recent months and years. As is typical, the more expensive the price range, the more months of supply have. Still, the current numbers are nowhere near what they were for several years in the early 2000’s. These numbers also really vary from one neighborhood to another, so your unique situation might differ from these trends.
At the same time, interest rates are finally coming down. Although they probably will never get as low as they were until last year, everyone expects that lower rates will spur more buying activity. Most experts are projecting that rates will continue to come down a bit for a while, but not dramatically or quickly.
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. Prices are still high, but lower rates are starting to make them more affordable. And, you can lock in today’s prices before the competition heats up too much, and then refinance in a year or two to lower your payments if rates continue to come down. By contrast, if you wait for rates to come down more before you buy, you’ll likely be facing more competition which will drive prices higher.
SELLERS - As always, the best time to sell is when you need to sell to move where you want or need to move. Your situation may improve in the months to come, but it is hard to know for sure, and there are certainly lots of buyers looking for homes today.
If you’d like to know how these market conditions affect your individual situation, whether you’re thinking about buying, selling, or both, please give me a call. I would love to do a detailed analysis for you and help you craft a plan to get from where you are to where you want to be, 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.
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 August.
And a look at how those rates compare with recent years and months.
If you have any questions about what these stats mean for you, please don't hesitate to reach out!
Tim Coen
(719) 337-3901
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