The real estate market, particularly in regard to single family housing, has been a boom for sellers and a challenge for buyers for the past two years. Today, the housing market is a challenge for both buyers and sellers.†According to the National Association of Realtors website, on a national level, existing-home sales faded for the ninth month in a row to a seasonally adjusted annual rate of 4.43 million. Sales fell 5.9% from September and 28.4% from one year ago. The median existing-home sales price rose to $379,100, an increase of 6.6% from the previous year. The inventory of unsold existing homes slipped for the third consecutive month to 1.22 million at the end of October, or the equivalent of 3.3 months’ supply at the current monthly sales pace.As for Colorado, the Colorado Association of Realtors October 2022 Market Trends report shows more homes on the market ó along with a longer amount of time on the market. There were 5,670 homes sold across the state in October; however, this is down 17% from September 2022. The median sale price has decreased by 2% since September 2022; it averaged $550,000 in October.El Paso County Residential Real Estate Market year-to-date statistics, sourced from the Colorado Association of Realtors, indicate that the total of new listings through October 2021 were 15,047, compared to 14,971 through October 2022. The total sold listings through October 2021 were 13,496,†compared to 11,869, through October 2022. The median sale price through October 2021 was $435,000, compared to $480,000 through October 2022.Jackie Pierce Eaton, a real estate agent with Berkshire Hathaway HomeServices, Synergy Realty Group, has been in the business for more than 40 years. Eaton provided in an email the following local statistics for Falcon and Peyton (80831).In October 2021, there were 112 active listings and the homes sold totaled 81. The medium price then was $500,000. In October 2022, the active listings numbered 207; the homes sold were 71. The medium price was $518,000.†”I have not seen any ënon-buying’ trends,î Eaton said. ìI have had two of my own listings sold within one week in Falcon in the past month. The great thing about right now is there are way more homes on the market, and there are less bidding wars because of that. Prices have leveled out, but as you can see from the statistics, the prices are not really lower. They just aren’t going crazy and going up $10K per month.î†She added that buyers are concerned with interest rates but there are many options for financing. She said buyers can ìbuy the rate down Ö and get a percent or two off the current rates.î† She also said that sellers need to be realistic with their price and offer financial options such as closing costs.Eaton said she foresees a healthy market for 2023. Local prices are below the Denver market; and, with numerous employment and higher education possibilities, outdoor activities that are ìsecond to noneî and the overall quality of life, the market should continue to thrive. “Our county has never experienced the huge market crashes that the more populated East and West Coast cities experience,î she said. “Our market changes in waves that are more marginal.î†Brian V. Gray, a senior mortgage broker with Edge Home Finance Corp., has been in the financial industry for 26 years. Gray said the Federal Reserve has increased the interest rates aggressively since March 2022 in an attempt to lower inflation, which has caused mortgage rates to also dramatically increase.†A bright spot for buyers is that there are ìmore homes available to purchase and the sellers are more likely to offer seller concessions to help pay for closing costs or potentially a ë2-1 Temporary Buydown,íî Gray said. Also, if a buyer purchases a house now with a higher interest rate, there is a good likelihood the buyer will be able to refinance the home in a few years at a lower interest rate. He added that home builders might also offer other buyer incentives like upgrades or landscaping and fencing.†Gray agreed with Eaton that a crash in the market experienced in 2008 is highly unlikely. Today, buyers must prove they can afford to pay for the home they intend to purchase.†He also reiterated Eatonís point about the attraction to Colorado Springs. ìColorado Springs has been named one of the most desirable places to live in the United States,î Gray said. ìWe also have a strong economy with all the military bases and have attracted very large companies like Amazon, UPS, Lockheed Martin and many more great companies.î He said those factors will continue to increase the demand for homes in El Paso County and will likely prevent a continued slowdown of the real estate market.Catherine Brown-Swain, the owner and real estate agent of Properties of Colorado, which has served Falcon and other areas of El Paso County for more than 15 years, has been actively involved in the real estate market for more than 30 years. ìLocal home prices have begun to decline, but when you consider that our local housing rates were increasing 5% to 10% per year, on average, over the past few years, home owners have the most home equity they’ve had in the history of the housing market,î Brown-Swain said.††She concurred with Gray that sellers are inclined to pay buyers closings costs and/or assist them in a “buy down rate,î Gray referred to this as a ì2ñ1 Temporary Buydownî (by paying a lump sum of money upfront, a mortgage buydown will allow the buyer to pay a lower interest rate for a predetermined amount of time).The shifting market has somewhat leveled the field and has transitioned to a more “average” market, Brown-Swain said. She said that prior to the exploding housing market, the lower to mid-range home buyers frequently asked for sellers to pay closing costs, which they often accommodated. In the past few years, that declined but those incentives are again on the table.Brown-Swain predicted that the area real estate will continue to be in demand, although not at the level experienced during the last few years. She said one of her sources, Barry Habib, chief market strategist for Residential Finance, predicts that mortgage rates will drop around March 2023 to about 5%.Eaton, Gray and Brown-Swain are all on the same page with regard to the Colorado Springs area being near the top of the list as one the most desirable places to live, and the U.S. News & World Report ranked Colorado Springs one of the best places to live in the United States for 2022. And Forbes Magazine ranked Colorado Springs No. 3 on their list of places to live in Colorado.††As someone who has lived in the Falcon area since the 1980s, Brown-Swain has seen the growth of the Falcon/Peyton/Calhan and Black Forest areas grow exponentially. She said there were two reasons for the initial growth in the area. In large part, the growth was related to housing prices. When Meridian Ranch and Woodmen Hills were built, the housing prices were at least 10% to 20% lower than ìthe city,î so this opened the door to home ownership for more people. Brown-Swain said another reason for the fast-paced growth in the area is the desire for people to escape the city but be close to Colorado Springs. ìAs a local Realtor who specializes in selling lifestyles as opposed to just homes, I feel that our local area lends itself to the perfect balance of having space, yet being close to amenities,î she said.
