Colorado’s second largest city has pushed Denver aside in the burgeoning real estate market. While Denver remains one of the top places to live in the US, Colorado Springs is showing up ahead of Denver in recent polls.
A Denver Post article in July 2018 listed Colorado Springs as the ninth best place to live in the country, with Denver showing up at number fifteen. US News & World Report published their list placing Colorado Springs in the number two spot just behind Austin, Texas. Overall, affordability combined with good economics, education and health pushed the Springs high in the lists.
Colorado Springs real estate is seeing more activity based on the lower home prices than its neighbors to the north. With a median average of $335,000 for a single family home, the market is significantly lower than the median price in Denver, even with an average home price increase of 9.8% over the past year. With the proximity to Denver and quick access to the mountains, Colorado Spring’s lower housing costs make the area very attractive.
Denver Slows, Prices Rise
Denver home prices continue to climb, but at a slower pace. The median price for a detached, single family home came in at $432,500 this past August, a 7.8% increase year over year. But even as prices move upward, the real estate market has slowed. Days on Market, which is the time from listing the property to going under contract, went from an average of 5 days in the Spring to 9 days in August. Homes are sitting on the market longer and making sellers nervous.
No Need for Panic
There has been a slowdown in the market, but not one that should cause alarm today. Last August there were 6,811 properties of all types sold in the Denver market, compared to 6,448 properties sold in August 2018. This is a 5.3% decrease year over year, so still within a reasonable range statistically. Let’s not panic. More properties were sold in July 2018 than July 2017.
Our long-standing seller’s market may be eroding, but this is actually good news for both buyers and sellers. Buyers are finally getting more opportunities and choices when selecting a home, and without the frantic decision making that comes with relentless buyer competition. There is a little breathing room for the buyer and more thought is put into the purchase. For the seller, better decision making on the part of the buyer should mean fewer abandoned deals.
Balance is Win-Win
A more balanced market is also good for the seller. While the property may take a little longer to sell, prices remain at historically high levels. Even with buyers having the ability to do some negotiating, the seller is likely still getting top dollar for their home.
The economy continues to shine making the prospect of interest rate hikes inevitable. This pushes people out of the housing market. But the booming economy is starting to show wage increases with could help buyers overcome the increased costs.
This is also where the advantages of Colorado Springs and Pueblo to the south become more apparent. With the growth in the southern part of the Front Range it is possible for people to maintain the Colorado lifestyle and own a home at a more reasonable cost.