This September, the Colorado Springs real estate market is seeing a shift that hasn’t occurred since 2014. That’s right—back when Peyton Manning was still the Broncos quarterback and performing at his best, we had this many homes on the market for buyers to explore. 🏠
💼 Big News from the Federal Reserve: On September 19th, the Federal Reserve announced a rate cut of 0.5%, hinting that more rate reductions could follow soon. Shortly after, interest rates hit their lowest point in two years, allowing some conventional borrowers under contract to secure a fantastic “5” on their mortgage rate! 💰
However, things took a turn with last Friday's Jobs Report, showing nearly double the expected number of jobs created in September. While Wall Street celebrated this economic surge with excitement, seeing wage growth of 4% 📊, the bond market didn’t respond as favorably. Within days, interest rates jumped by 0.4%, pushing today’s rates 0.5% higher than the recent two-year low.
🌟 Opportunities for Buyers: Despite the fluctuations in interest rates, the good news continues. For buyers, inventory levels remain high, with ten-year records in nearly every price category, offering a wide variety of options to choose from. This means buyers have greater negotiating power, with the opportunity to explore multiple properties and find one that meets both their budget and lifestyle needs.🏡🔑
🔄 Market Dynamics: For every home that sells, another is entering the market, keeping inventory levels stable. Above-average listing activity was noted throughout September and early October, indicating a strong and active market. 🌐
📅 Longer Months of Inventory: Traditionally, a buyer’s market is defined by having six months of inventory. In today's fast-paced world, it's more realistic to expect around three months of supply. The single-family home market currently has 3.43 months of supply, suggesting a slight buyer's market. The condo and townhouse market, with 4.3 months of supply, is clearly favoring buyers. Ask any agent in our market and they will tell you it definitely "feels" like a buyer's market. 🏘️
❗ Probability of Sale: From 2019 to early 2022, the market was straightforward—nearly every listing taken would sell, with 94.5% of listings closing in both 2020 and 2021. Fast forward to 2024, and the probability of a sale has dropped to 68%. In today’s market, a listing is no longer a guaranteed sale. Price, condition and location are key and sellers that get it aligned with buyer's expectations have a greater chance of selling. 💼
Looking to navigate the changing market in Colorado Springs? 🏡 I’m here to help! Reach out at 719-922-0102 or visit www.NicoleStromRealtor.com. Let’s develop a strategy that suits your needs and goals.
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About the Author
Nicole Strom
Nicole is a mom, grandma, a retired military spouse of over 25 years, as well as a full time Real Estate Professional serving her clients in and around Colorado Springs.
You need a REALTOR® with vast experience and knowledge of our specific market. You need a REALTOR® that genuinely cares about you and puts your needs first. You need a REALTOR® you can trust. Nicole is that REALTOR®.
