October 2024 Colorado Springs Real Estate Market Trends
The Colorado Springs real estate market in October 2024 revealed a landscape with elevated inventory and a shift toward a buyer's market. With a range of factors—from seasonal trends and rising interest rates to economic uncertainties surrounding the upcoming election—buyers and sellers alike are navigating new dynamics. This analysis unpacks these changes to provide insights into what might lie ahead.
Market Overview for October 2024
ELEVATED ACTIVE LISTINGS
Active listings in Colorado Springs remained consistently high throughout October, with minimal changes week-to-week. Inventory started at 2,359 and ended at 2,354, marking one of the highest points in over a decade. This surplus of available homes has shifted the market toward a more favorable environment for buyers, as greater inventory generally leads to increased negotiation opportunities and buyer leverage.
DECLINE IN NEW LISTINGS
New listings followed a steady decline throughout October, starting at 243 and ending at 100. This reduction reflects typical seasonal slowdowns but may also indicate seller hesitation amid economic and election-related uncertainties. With the holiday season approaching, this decreased influx gives buyers more leverage, as motivated sellers may respond with price reductions. Additionally, factors such as Permanent Change of Station (PCS) season, affordability pressures, and rising property taxes could be prompting some owners to enter the market or consider downsizing.
REDUCED BUYER ACTIVITY
Contracts on homes dropped consistently throughout October, from 234 at the beginning to 107 by the end. Rather than a lack of interest, this trend likely reflects a cautious approach among buyers, who may be holding off for potential price adjustments in response to high inventory. Additionally, with school in full swing, the buyer pool is naturally smaller, giving active buyers more room to negotiate, ask for concessions, and request repairs.
CLOSED SALES
Closed sales followed an irregular pattern, peaking mid-month and then tapering off. This movement suggests a combination of buyers securing deals early in October and others pacing their decisions, potentially in anticipation of economic changes. Sellers, on the other hand, may be pushing to close deals before the winter slowdown. As the market enters the colder months, competitive pricing is likely to remain crucial for sellers looking to finalize transactions by year’s end.
AVERAGE DAYS ON MARKET (DOM)
The average days on market in October ranged from 46 to 53 days, indicating that properties are spending a consistent amount of time on the market. This figure reflects a stable pace for well-priced homes, with some homes taking longer to sell due to either higher price points or niche market appeal. The steadiness of DOM shows that the buyer’s market is active, yet selective, as buyers carefully weigh options and sellers make strategic adjustments.
MEDIAN SOLD PRICES AND PRICE ADJUSTMENTS
The median sold price peaked at $459,990 mid-month before settling to $446,750 by month’s end. This wave-like movement indicates that while buyers are willing to pay premiums for certain properties, there is also responsiveness from sellers in making adjustments to attract buyer interest. Price reductions rose sharply toward the end of October, with many sellers adjusting to the current landscape as more inventory gives buyers increased choice.
additional note:
While October ended with reductions in buyer activity and price adjustments, it’s essential to recognize that the real estate market is highly dynamic. These “reductions” could very well have shifted upward over the weekend or in subsequent days, as the market frequently adjusts to real-time demand, economic factors, and seasonal influences.
External Influences on the Market
ECONOMIC CONDITIONS AND ELECTION IMPACT
The proximity of the 2024 presidential election has introduced economic uncertainties, influencing both buyer and seller behavior. Potential changes in fiscal policies, interest rates, and economic direction contribute to a cautious market atmosphere, with participants awaiting clearer signals before making significant decisions.
SEASONAL FACTORS AND FOOTBALL SEASON
The onset of football season may also impact real estate activity, as potential buyers and sellers engage in seasonal events. Some reports suggest that major sporting events can affect weekend showings, with motivated buyers taking advantage of reduced competition during these times.
Key Takeaways & Opportunities
October 2024 marked a unique period in the Colorado Springs real estate market. High inventory levels combined with reduced showings and a smaller buyer pool make this an ideal time for buyers to explore their options. Additionally, rising interest rates and the uncertain economic landscape surrounding the upcoming election are further contributing to the cautious buyer approach. These factors create favorable conditions for negotiation, giving buyers the opportunity to secure beneficial deals.
FOR BUYERS
This market offers ample choices with the potential for favorable negotiation outcomes. With interest rates on the rise, locking in a competitive rate sooner rather than later could be advantageous. Monitoring the market closely and staying informed on broader economic developments will also be key in navigating the next few months.
FOR SELLERS
In a competitive market with high inventory, effective pricing and property presentation are essential. Sellers should remain flexible, keep an eye on interest rates, and consider closing sooner to avoid the winter slowdown when fewer buyers may be active. By strategically aligning with current demand, sellers can still secure strong interest and timely offers.
The Colorado Springs real estate market in October 2024 revealed a landscape with elevated inventory and a shift toward a buyer's market. With a range of factors—from seasonal trends and rising interest rates to economic uncertainties surrounding the upcoming election—buyers and sellers alike are navigating new dynamics. This analysis unpacks these changes to provide insights into what might lie ahead.
RESOURCES
Colorado Springs Housing Market Trends
Colorado Springs, Colorado Housing Market Report October 2024
Colorado Springs Real Estate Statistics
Colorado Springs Real Estate Market Trends, Active Listings Colorado Springs, Buyer's Market Colorado Springs, Colorado Springs Housing Inventory, Colorado Springs Home Showings
