Single-family home sales across the state fell more than 14 percent from August to September — but remain up 9.1 percent over September 2018 in the seven-county Denver metro area and 5.3 percent statewide, according to the latest monthly market data from the Colorado Association of Realtors.
As expected, new listings are down seasonally, and overall inventory remains a significant issue statewide, according to the report. Yet continued buyer demand has kept median and average sales prices relatively flat.
In general, homes are sitting on the market a few days longer and sellers are having to adjust pricing and/or make concessions to get the sale across the finish line.
Statewide, single-family homes and condo/townhomes were on the market an average of 47 days, according to the report, up 6.8 percent from August to September 2019. However, condo and townhomes’ average days on market were up nearly 24 percent year-over-year.
“September 2019 was another strong month for the Colorado Springs-area housing market for single-family/patio homes,” Colorado Springs Realtor Jay Gupta said in a news release.
Even with a 15 percent drop in active listings, “we recorded the highest monthly and year-to-date sales volumes, highest average and median sales prices, and the second highest monthly and year-to-date sales compared to any month of September on record,” he said.
Homes stayed on market an average of 26 days, with the sales-price-to-list-price ratio at 99.5 percent.
“Our average sales price was $368,430, with the median sales price of $325,500, and a 1.5-month supply of inventory,” Gupta said. “Since buyers generally purchase properties offering competitive values, 42 percent of El Paso and 31 percent of Teller counties active listings in the Pikes Peak MLS had price reductions.”
Last month, 85.5 percent of the single-family/patio homes sold in the Colorado Springs area were priced under $500,000, while 12.2 percent were between $500,000 and $800,000, and 2.3 percent were priced over $800,000.
For the year to date, sales of single-family/patio homes priced under $300,000 dropped 19 percent, primarily due to the inventory shortage. At the same time, there was a 23 percent increase in homes priced between $300,000 and $400,000, and a 26 percent increase in homes priced between $500,000 and $600,000.
World economic and economic conditions could affect both the local and national markets, Colorado Springs-area Realtor Patrick Muldoon said.
“China and the U.S. continue to not come to an agreement on trade deals. This led to choppy waters in the world economy and not something that should be overlooked,” Muldoon said. “Farmers in the U.S. continue to get crushed because of this.
“Manufacturing retracted, dropping to 2009 levels,” he added. “The Fed then got nervous and dropped interest rates again. Gold rallied and pulled back slightly, and we got to witness another inverted yield curve. September posted huge declines in auto sales, and we witnessed 100-plus point swings in the stock market as everyone tries to figure it all out.”
What comes next is anyone’s guess, Muldoon said.
“Rumor is devaluation of the dollar, another Fed interest rate drop, and central banks trying to stop a slowing world economy,” he said. “Stay tuned because one of these days we may see a reverse here in housing. But until then, buyers are getting great interest rates and sellers are getting top dollar. I am not sure if that is a win/win, but it’s what we have at this time.”