📢 Colorado Springs Market Update: The Impact of Cash Buyers & First-Time Homebuyers

The real estate market in Colorado Springs is seeing shifts in buyer behavior that impact all price points, not just entry-level homes. Cash buyers and first-time homebuyers play a crucial role in keeping the market fluid, and recent trends highlight why inventory remains tight and competition is fierce.

🏡 Cash Sales & First-Time Buyers in Colorado Springs

📌 Cash Buyers:
In 2024, approximately 30.7% of all home sales in Colorado Springs were all-cash transactions. This is a historically high number, making it more challenging for buyers relying on financing to compete.

📌 First-Time Homebuyers:
Nationally, 32% of home purchases were made by first-time buyers, but in Colorado Springs, the number is lower, thanks to rising home prices and mortgage rates. Traditionally, 40% of buyers are first-time homeowners, which means fewer people are entering the market and keeping the cycle moving.

🔗 How This Affects All Price Points

A shortage of first-time buyers impacts more than just starter homes—it creates a chain reaction across all price points:
✔️ Move-up buyers struggle because they can’t sell their starter homes, limiting their ability to buy larger properties.
✔️ The market stays locked as homeowners who would typically upgrade remain in place, restricting available inventory.
✔️ Higher competition in all segments results, as fewer homes enter the market.

⏳ Should You Wait for Lower Interest Rates?

Many buyers are waiting for rates to drop before purchasing—but so are three years’ worth of other buyers who have been holding off for the same reason. When rates do drop, competition will be fierce.

✔️ The best time to buy? When your personal circumstances align—whether it’s a job change, relocation, growing family, downsizing, or a life event. If you’re financially ready, waiting may mean competing against even more buyers later.

📢 What Does This Mean for Colorado Springs Buyers & Sellers?

✅ Sellers: With fewer homes available, pricing strategy and home presentation are crucial in today’s competitive landscape.
✅ Buyers: Be prepared, strategic, and proactive—especially if you’re financing your purchase.
✅ Market Watchers: The Colorado Springs real estate market remains dynamic, with cash buyers and low inventory keeping competition high at all price levels.

💬 Thinking of buying or selling? Let’s talk about a strategy that works for you in today’s market!