Record Sales and Prices Close Colorado Springs Real Estate Market in 2021 | Subscriber content

Last year was another record for home sales and prices in the Colorado Springs area as lower mortgage rates and the desire for home ownership continued to fuel a furious demand for housing. local.

Sales of single-family homes and patio homes totaled 18,159 in 2021, surpassing the previous year’s record of 17,337, according to a December market trends report released Tuesday by the Pikes Peak Association of Realtors.

“It’s incredibly strong,” Joe Clement, broker-owner of Re / Max Properties in Colorado Springs, said of the local market. “I look at this graph and it shows that 18,159 addresses were sold through the (Multiple Listing Service) in 2021. That’s the highest number ever.”

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But strong demand has also led to sharp price increases. In December, the median price of homes sold during the month rose 18.4% to $ 450,000 from the same month a year earlier, according to the Realtors Association report. The December median equaled the region’s record price, first set in June.

Local median prices have now risen year over year every month since December 2014, the Gazette’s historical data shows – a seven-year streak. Additionally, year-over-year prices have increased in double-digit percentages for 18 consecutive months, dating back to July 2020.

Mortgage rates continue to boost interest in housing, industry experts have said.

Thirty-year fixed rate loans hit a national average of 3.11% last week, and weekly rates have passed the 3% mark almost every week since mid-October, according to mortgage buyer Freddie Mac.

Despite this increase, rates around 3% remain historically low and attractive to buyers.

How low? Twenty years ago, long-term, fixed-rate mortgages averaged over 7% in the last week of 2001, according to figures from Freddie Mac. Forty years ago, at the end of 1981, 30-year fixed-rate mortgages averaged just over 17%.

But it wasn’t just demand that drove prices up.

Colorado Springs continues to struggle with a shortage of homes for sale, an issue that has plagued the Pikes Peak area and other markets for two to three years.

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In December, the supply of Colorado Springs area homes listed for sale at the end of the month totaled just 659, a roughly two-week supply based on the number of properties available and the pace of recent sales, according to the report of the Association of Real Estate Agents.

On the one hand, December listings are up nearly 25% from the same month in 2020. And yet December inventories have steadily exceeded 2,000 and even 3,000 in the years leading up to the Great Recession. .

The housing shortage and continued demand have led to bidding wars among buyers, many of whom are submitting bids that are several thousand dollars above the seller’s asking price.

The market has been a boon for sellers, but a source of overwhelming disappointment for many buyers who can’t find a home to buy, estate agents in the area have said.

And don’t expect those trends to change in 2022, Clement said.

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The region needs more newly built homes to hit the market to help increase the overall supply and slow the rise in prices, he said. He is not optimistic that the shortage will ease anytime soon.

“It’s the same problem we’ve had for the last couple of years: it’s inventory,” Clement said. “I don’t see how we can all of a sudden get away with it unless they (home builders and developers) start getting development plans approved in two weeks or something and they can get started. building like crazy and trying to catch up. But it doesn’t. It’s not going to happen. “

The Real Estate Agents Association market trends report tracks sales of homes managed by its member agents; it does not include homes sold by individuals. Most home sales take place in El Paso County, the remainder in Teller and a handful of Front Range counties.

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