“There has been a direct correlation between the drop-in inventory and the increase in pricing along the Pikes Peak Region. We saw active listings drop over 50 percent among all
The Terminator Cannot Kill This Housing Market
“There has been a direct correlation between the drop-in inventory and the increase in pricing along the Pikes Peak Region. We saw active listings drop over 50 percent among all listings. As demand did not subside, even during COVID-19, prices continued to push up 14.1 percent among all properties in August, year over year. This played into a 18.2 percent drop for the average days on market for single-family homes. For each month that begins with fewer days on market, prices push up, and we see more competition among the buyers who are brave enough to go to war over homes in our area. There seems to be no reprieve on the way for a blistering hot housing market even as we approach fall.
“It is almost laughable to think that if a buyer missed out on a home in May, that they have been priced out of many markets in the last four months. Homes that were ‘affordable’ have become unaffordable in just a matter of months. Many buyers are finding out that, unless you are willing to go significantly above full price, add in appraisal gap coverage and toss in their first born, getting a home in these conditions may be impossible. Even with the first-born, buyers are losing out to other buyers who offer higher, give additional appraisal gap coverage and toss in the first two kids and a dog. Insane isn’t even a word I can use for this market after losing seven offers in a row for a buyer who just four months ago missed out on a home by $1,000 and is now coming in $10-15,000 above asking and still missing out in the same subdivision.
“There’s no doubt that sellers are reaping the benefits of this market. Placing a home on the market and knowing that buyers are going to give their best to get a home, is nice. Knowing that homes that price right will see multiple offers and a seller will have the luxury of picking the best offer for them is a seller’s dream. A special closing date, timeline adjustments, free living and more are now being offered by buyers just to take a stab at getting into a home. As a seller you are going to get what you want, when you want it if you are in the most highly needed price points. However, your plans need to include leaving town or you’re going to get to experience the buyer frustrations mentioned above.
“The U.S. economy is in shambles by any measurements used. COVID-19 wrecked a strong GDP, record low unemployment and strong sales in almost every industry. But for now, housing along the Front Range mocks a failing economy by showing it is more resilient than a cockroach and harder to kill then the Terminator,” said Colorado Springs-area REALTOR® Patrick Muldoon.