December 2024 Colorado Springs Real Estate Market Trends
| NEW LISTINGS | TOTAL ACTIVE | AVERAGE DOM | PRICE DROPS | CLOSED | MEDIAN HOME PRICE | |
|---|---|---|---|---|---|---|
| WEEK 1 | 144 | 2133 | 60 | 235 | 129 | $440,000 |
| WEEK 2 | 121 | 2034 | 60 | 172 | 103 | $449,000 |
| WEEK 3 | 99 | 1938 | 63 | 126 | 172 | $468,024 |
| WEEK 4 | 53 | 1885 | 64 | 87 | 80 | $479,039 |
December marked a month of seasonal adjustments and evolving dynamics in the Colorado Springs real estate market. With the year drawing to a close, the data reflects the expected holiday slowdown, yet significant shifts in buyer and seller behavior emerged, influenced by broader economic trends and local conditions. Tightening inventory, fluctuating price reductions, and varying buyer activity defined the market's behavior over the month. Here’s an in-depth breakdown of December’s market trends and insights.
New Listings
New listings steadily declined throughout December, dropping by nearly 63% from the first to the final week of the month. This significant reduction aligns with seasonal patterns, as many sellers opt to delay listing their properties during the holidays in anticipation of increased activity in the new year.
The sharp drop in the final week highlights the limited influx of new inventory, placing pressure on buyers who were already navigating an environment with fewer choices. Sellers who listed early in December benefitted from a slightly less competitive market, while late-month listings may have struggled to capture attention amid the holiday distractions.
Total Active Inventory
Total active inventory steadily decreased over the month, reflecting the combined effects of declining new listings and robust buyer activity. By the final week of December, active inventory had dropped by 11.6% from the start of the month, underscoring a tightening market.
This reduction signals strong absorption, with buyers steadily depleting available inventory even as the holidays approached. However, the limited supply also likely contributed to rising median home prices, as buyers faced increased competition for desirable properties.
Average Days on Market (DOM)
The average DOM for sold homes gradually increased over the month, rising from 60 days in early December to 64 days by the final week. This trend reflects a selective market, where some homes sold quickly while others lingered due to pricing or condition factors.
Properties that were competitively priced and move-in-ready continued to attract buyers, while homes requiring updates or listed above market value tended to sit longer. The slight increase in DOM also suggests that buyers took more time to weigh their options as inventory tightened and the holiday season brought distractions.
Price Drops
Price reductions decreased significantly throughout December, falling by nearly 63% from the first to the last week of the month. This trend reflects growing seller confidence as inventory tightened and motivated buyers remained active.
The sharp decline in price drops suggests that sellers were less inclined to adjust pricing, particularly in the second half of the month when fewer new listings created less competition. However, buyers likely felt the pressure of fewer price reductions, reinforcing the importance of acting quickly to secure favorable deals.
Closed Sales
Closed sales fluctuated significantly over the month, with a notable spike in mid-December before declining sharply in the final week. The 67% increase in closed sales during the third week of December reflects heightened buyer activity, likely driven by those seeking to finalize purchases before year-end.
The drop in the final week is consistent with the holiday slowdown, as fewer transactions typically close during this time. Overall, the month saw a total of 484 closed sales, showcasing a robust demand despite the seasonally slower period.
Median Home Price
The median home price rose steadily throughout December, climbing by 8.9% from the first to the final week. This upward trend reflects strong buyer demand and limited inventory, which drove competition and pushed prices higher, particularly for move-in-ready homes.
Higher-priced properties likely contributed to the rise in median prices, as buyers competed for desirable options in a shrinking market. Sellers with updated or energy-efficient homes benefited the most from these conditions, achieving higher price points as the market tightened.
External Influences on the Market
ECONOMIC UNCERTAINTY & THE PRESIDENTIAL ELECTION
The upcoming inauguration of President-elect Donald Trump has created significant economic uncertainty, particularly regarding potential policy shifts affecting the housing market. Anticipated changes to mortgage interest rates, housing incentives, and tax reforms have left many buyers and sellers cautious. Buyers in Colorado Springs who fear rising interest rates may have rushed to lock in favorable terms during December, contributing to the mid-month spike in closed sales. On the other hand, some sellers hesitated to list, waiting to see if market conditions would stabilize in early 2025.
Moreover, Trump’s focus on "America First" policies could influence local military-related employment, given Colorado Springs' heavy reliance on defense contractors and military bases. Increased defense spending might boost housing demand in the area, particularly in neighborhoods near Peterson Space Force Base and Fort Carson. However, uncertainties around broader economic policies may have tempered some of the market’s momentum in December.
SEASONAL TRENDS & BUYER-SELLER BEHAVIOR
The holiday season exerted its usual influence on the market, with new listings and active inventory shrinking as sellers opted to delay until after the new year. Yet, December also saw strong buyer demand, with closed sales peaking mid-month. This suggests that motivated buyers, including those relocating for PCS (Permanent Change of Station) orders or seeking year-end tax benefits, were active despite the seasonal slowdown.
Interestingly, the declining inventory and fewer price reductions provided sellers with more leverage. Buyers faced increased competition for well-maintained homes, which likely contributed to the steady rise in median prices throughout the month. Sellers who listed energy-efficient homes or properties ready for immediate occupancy benefited most in this environment. Conversely, homes needing updates or those priced above market value saw longer days on the market, especially toward the month’s end.
RISING ENERGY COSTS & GEOPOLITICAL TENSIONS
The geopolitical tensions in the Middle East, particularly the rise in oil prices, directly impacted household budgets in Colorado Springs. With colder temperatures in December, increased heating costs may have influenced buyer behavior, making energy efficiency a priority. Homes with features like upgraded insulation, modern HVAC systems, or energy-efficient windows likely saw more interest from cost-conscious buyers.
Additionally, rising energy prices may have deterred some relocations, as higher transportation costs made moving less appealing. This could explain part of the slowdown in new listings and the hesitation among some buyers who were balancing the costs of moving with increased household expenses. Sellers of larger, less energy-efficient homes may have found it more challenging to attract buyers, further contributing to the selective nature of December’s market.
LOCAL & NATIONAL PUBLIC HEALTH DEVELOPMENTS
The first severe human case of bird flu reported in Louisiana heightened public health concerns nationally. While it didn’t directly impact the Colorado Springs market, it added an element of caution for buyers considering interstate relocations. Health concerns and fear of travel disruptions may have slowed some relocation activity, particularly for families with children or those in higher-risk demographics.
Additionally, the lasting effects of the COVID-19 pandemic continued to shape buyer preferences, with many still prioritizing homes with larger square footage, dedicated office spaces, and outdoor areas. Sellers who highlighted these features in their listings likely saw stronger interest, even during the holiday season.
TECHNOLOGICAL INNOVATION & COMMUNITY APPEAL
Google’s unveiling of a new quantum computer in December underscores the growing importance of technological innovation across industries. While not directly tied to the housing market, tech advancements often attract skilled professionals, many of whom seek housing in well-connected cities like Colorado Springs. The city’s proximity to tech hubs in Denver and its appeal as a family-friendly location may continue to drive demand in 2025, particularly in higher-end neighborhoods.
Moreover, the community pride brought by events like the Philadelphia Eagles' sports achievements, though seemingly unrelated, can subtly enhance the appeal of family-oriented neighborhoods. Localized celebrations and morale boosts may contribute to a sense of stability and attract buyers seeking strong community ties.
Key Takeaways
FOR BUYERS
Limited inventory and rising prices underscored the importance of acting quickly to secure desirable properties. Buyers navigating the holiday season faced increased competition, particularly for move-in-ready homes, while fewer price reductions left less room for negotiation.
FOR SELLERS
Sellers benefitted from tightening inventory and strong buyer demand, enabling many to hold firm on pricing. Homes listed early in December performed well, while those entering the market later in the month encountered more challenges as distractions from the holidays peaked.
OVERALL MARKET OUTLOOK
December’s market reflected seasonal patterns but maintained notable buyer activity, driven by tight inventory and rising prices. Both buyers and sellers have opportunities to position themselves strategically as the market transitions into 2025, with inventory and energy efficiency remaining key factors in shaping demand.
As December wraps up, the Colorado Springs real estate market closes the year with notable resilience despite the seasonal slowdown. Buyers faced limited inventory and rising prices, emphasizing the need for decisive action in a competitive environment. Sellers, on the other hand, leveraged tight market conditions to achieve favorable outcomes, particularly for well-maintained and energy-efficient properties. As we move into 2025, the market is poised for new opportunities, with external factors like energy costs, economic policies, and evolving buyer preferences expected to play a critical role. Whether you’re looking to buy or sell, staying informed and strategically prepared will be key to navigating the shifting dynamics in the months ahead.
December 2024 Colorado Springs real estate trends, Colorado Springs housing market, Real estate market insights, Colorado Springs home prices, Holiday real estate market trends
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