I'm really thankful for Jay Gupta, past chairman of the Board of the Pikes Peak Association of Realtors®. Not only does he provide valuable insight into the statistical data compiled on housing stats, but he demonstrates integrity and professionalism for all who are a part of the Colorado Springs Real Estate industry.
On the few occasions that I have conversed with Mr. Gupta, I've always taken away something inspirational from our meetings. Regarding some of the housing statistics he compiled from the PPAR for May 2009, I again take away some insightful findings.
For this blog and of particular interest for me deals with the price range of what real estate inventory are actually selling. Of the 769 sold listings in May of this year, 92% sold under the $400,000 price range, substantiating some of the conservatism found in the purchases by buyers and investors. One might think that this is a lasting trend for the future. And it may be very well the consistent price range in which sold listings will be found. Yet, as much as this is a present indicator of sales ranges, it also helps us to understand what is happening in other price categories within the Colorado Springs Real Estate market.
While only 8% sold listings exist in the price ranges above $400,000, I believe this trend will eventually reverse when saturation of sales in the lower price ranges occurs. With such a high percentage of sold listings occurring below $400,000, this represents the self-correcting process of the market, giving stabilization to housing overall. This is wonderful news for Colorado Springs housing. And as the housing market continues to stabilize through the ebbs and flows of the financial markets, I believe we can expect to see people taking calculated risks on higher priced homes. The deals in the higher priced ranges are unbelievably attractive, mixing excellent construction and upgrades with incredible value.
The upslope to housing recovery manifests when the sold listings begin to creep into the higher priced ranges. I believe this is exactly where we are in the Colorado Springs Real Estate market right now.
This prediction is not made without consideration of some challenging times. It simply means that we, as Colorado Springs Realtors, must be persistent and maintain due diligence in helping others to find the right homes within their proper financing parameters. Fear has helped to accelerate lower-priced home sales, yet it will also shrink as the market continues to stabilize. And as a result, we should see higher home purchase values in the near future.