A Holiday Slowdown: Unique Opportunities for Buyers and Sellers in the Colorado Springs Real Estate Market

As expected, the holiday season brought a noticeable slowdown to the Colorado Springs real estate market. The week of Christmas marked the lowest number of new contracts and showings recorded in the last five years. While the market may seem quiet, this seasonal pause offers unique opportunities for both buyers and sellers to strategize effectively.

Market Activity

• Active Listings:
  There were 34% more homes on the market compared to the same time last year, providing buyers with more choices and sellers with more competition.

• Showings:
  Showings hit a record low, with only 1,690 across the entire market, averaging just 0.65 showings per listing. Last week, we were sitting at .91 showings per listing per week.

• Contracts:
  The number of new contracts also hit a five-year low, which isn't all that unexpected due to the holidays disrupting the usual flow of activity.

• Showings-to-Contracts Ratio:
  The ratio of showings to contracts reached 14:1, indicating a slower, more casual pace in buyer activity. Curious as to the average days on market for your area? Reach out. I am happy to share a report that is hyperlocal to your specific area.

Why This Season Is a Buyer’s Advantage

More Choices, Less Competition

With 34% more homes on the market compared to last year and fewer active buyers, buyers may have the freedom to explore properties. There are somes that are positioned, marketed and priced well are seeing multiple offers, so if you see a home that looks amazing and is priced well compared to those other homes in the neighborhood, don't wait to reach out to your agent to book a showing. 

Motivated Sellers Offering Concessions

Sellers with homes lingering on the market may be more willing to offer concessions, which can cover closing costs or fund a temporary interest rate buy-down. These concessions often have a greater impact than simple price reductions, making homes more affordable over time.

Why This Matters to Buyers

• Leverage in Negotiations:
  Motivated sellers, during the slower holiday season, may negotiate not just on price but also on terms that directly benefit a buyer.

• Lower Monthly Payments with a Temporary Buy-Down:
  Concessions used toward a temporary rate buy-down can significantly lower a buyer's monthly mortgage payment. Partner with your agent and lender to explore this cost-saving strategy.

• Room to Strategize:
  The holiday slowdown can give buyers more time to carefully review options, understand financing solutions, and make well-informed decisions.

Why This Season Is an Opportunity for Sellers

The holiday slowdown doesn’t have to mean a halt to your selling efforts. By partnering with your listing agent and crafting a clear strategy, you can ensure your home gets in front of the maximum number of willing and able buyers.

Tips for Sellers:

• Staging Matters:
  If your home is empty, professional staging is crucial to help buyers visualize its potential. Even if you're still living in the home, minimize furnishings, remove clutter, and pack away at least one-third of your belongings to store off-site. A clean and open space allows buyers to imagine their things and them living in the home.

• Finish Those Projects:
  Any postponed projects should be completed before listing. Buyers evaluate every home through three key lenses: price, location, and condition. Ensuring your home is in excellent condition strengthens its appeal and positions it competitively.

• Deep Cleaning:
  A thorough cleaning is essential. From baseboards to windows, a spotless home signals to buyers that it has been well-maintained.

• Highlight Your Home's Appeal:
  Work with your agent to showcase your home’s best features through professional photography, staging, videos, print marketing, industry marketing, and a strong online presence.

• Maximize Visibility:
  A great agent will have a robust marketing plan to target buyers through online listings, social media, and their network of contacts.

• Offer Buyer Incentives:
  Seller concessions, such as covering closing costs or funding a temporary interest rate buy-down, can make your property stand out and attract more offers.

By positioning your home to appeal to buyers’ focus on price, location, and condition, you can ensure it stands out in a crowded market.

Navigating Interest Rates and Inventory

While interest rates for 30-year mortgages remain higher than earlier this year, creative financing options like rate buy-downs funded by seller concessions can offset this cost. Additionally, the increased inventory gives both buyers and sellers the opportunity to find mutually beneficial agreements. Sellers don't sell to become homeless, they too will be buying in this high interest rate environment.

Whether you're buying or selling, now is the perfect time to strategize for success. Let’s work together to create a plan that helps you achieve your real estate goals.

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