Colorado Springs January Stats

[Ryan Thomson]

Colorado Springs median home price has fallen from $495,000 in June 2022 to $450,000 in January 2023. This is a 9.09 % decline. Some of this may be seasonal. The median sales price has increased 0.9% from December 2022.

The craziest stat of all to me is that the Average Days on the Market is now at 50 days!! Compare that to 15 in January of 2022. This is a great opportunity to buy a house for under asking price and with strong potential to get some seller concessions towards repairs or an interest rate buy down.

Total active: Total active homes on the market fell from 1,909 to 1,639 in January. A 14% drop from December. But get this… that is a 198.5% increase from last January. Before you freak out and think the sky is falling the number of active listings in 2007 (in a much smaller Colorado Springs) was 7,052! The sky is not falling and we are approaching a more balanced market between buyers and sellers.

New listings have increased by 46.4% since December 2022 but are still down (18.2%) from January a year ago. One theory is that so many people have a low-interest rate locked in, that they don't want to list their property now only to have to buy a property at a much higher rate.

[Jordan Malara]

@Linitha Tadsina As others have said, traditional long term rentals do not yield much cash flow at the moment. With the increased mortgage rates, property prices have not come down nearly enough to create cash flow in the LTR market. When investing in CO Springs (and most areas in CO) you have to keep in mind that it's a growth market where the benefits and wealth creation in real estate will come from appreciation and high principal pay down, not cash flow. As time goes on and rents catch up, cash flow will come, but likely not initially. 

If cash flow if what you desire, you may need to explore more aggressive investment strategies such as a value-add, fix and hold strategy. This would be where you buy a distressed property for under market value, fix it up, and then rent it out. This could yield you greater cash flow from your rental. If you're short on funds to buy a property with 25% down and renovate, then it may be worth exploring a 10% down investment loan option that @Grant Schroeder offers for 1-4 unit investment properties!

From my experience I have not seen a saturation of the market with investment properties thus far. There is still a huge need for rentals and homes to purchase. The military alone creates a transient population of over 100k people that are coming and going from CO Springs in a given year.