The Colorado Springs real estate market is always shifting depending on what’s happening with the economy and local and global events. The past few years have been particularly dynamic for the market with housing prices soaring and homes in high demand. But will this seller’s market last? These are the expert’s predictions for the Colorado Springs real estate market in 2023.
Houses Will Still Be In High Demand
With so many military bases in and around Colorado Springs, not to mention beautiful parks, top-rated schools and exceptional urban amenities, it should come as no surprise that there is almost always consistent demand for real estate in Colorado Springs. There is every reason to believe that homes here will continue to be in high demand for many years to come.
More Buyers Than Homes
The pandemic caused a cool-down in the construction of new homes thanks to work restrictions and supply chain issues. Although building has picked up again, inventory is still low compared to the demand. As a buyer, this means you may have significant competition for homes. For sellers this could result in multiple offers and faster sales.
Higher Home Prices
Home values in Colorado Springs have consistently risen over the past few years. According to Zillow, the 2022 median home value for homes in Colorado Springs was $476,721, which was a 7.5% year-over-year increase. Experts predict that home values will continue to rise in 2023 to around another 7%. If you’re thinking of selling your home, 2023 could be a good year to get a great price for your investment.
Demand For More Rural Homes
More people are moving out of urban centers than ever before, so we’re seeing a great deal of demand for homes in more rural areas. In Colorado Springs there are numerous rural communities just a short drive from the city where home sales are expected to rise. These include Falcon, Black Forest, and Peyton, all of which are prime areas for those looking for new construction homes and land for sale.
Rising Interest Rates
The Federal Reserve Board recently increased their rates, resulting in a significant increase in mortgage interest rates. This has affected purchasing power, so the beginning of the year may see fewer home sales than the same time period in 2022. However, interest rates are expected to decline in the second quarter of 2023, so this may result in previously hesitant buyers to enter the market.
While no one can definitively predict what will happen in the economy and market in any given time period, all the signs point to a strong year for the Colorado real estate market in 2023. Low inventory and high demand mean that the seller’s market will likely continue. While increased interest rates may cause a slow-down in home sales, home values are expected to remain stable or potentially increase.
Are you interested in buying or selling a home in Colorado Springs? Military Home Search specializes in military relocations and real estate in Colorado Springs and the surrounding areas. Contact us here or call 719-338-7294 to speak to one of our knowledgeable agents today!