It seems like everyone is looking for a good deal when it comes to Real Estate agencies. And for sure, there are good deals to be had. But the truth is this. To get that good deal you have to consider a few variables in the market flow.
When looking at the Listing and Sales Summary of single family/patio homes for February 2013 (provided by the Pikes Peak REALTOR® Services Corp), this Colorado Springs Realtor would like to share a few thoughts to consider. Not everyone is going to get the same deal. Simply stated, here’s why:
- Market Absorption Rates. Under the price range of $299,999, the market absorption rate is 3.1 months, meaning that homes are selling at a higher rate than what is considered the normal barometer of 6 months in a neutral market between the negotiation power of the buyer and seller. In other words, the lower the market absorption rate, the more likelihood you will be dealing with a Seller’s market. The higher the absorption rate, then you will be smack dab in the middle of a buyer’s market.
- Hyperlocalism. Each neighborhood typically has its own sense of personality and stability. Value varies between each area. For purposes of this discussion, the market absorption rates in Colorado Springs Real Estate are increased as you go higher in the varying price ranges. For instance, the market absorption rate for homes in the price ranges of $300,000 to $399,999 is 5.1 months versus the market absorption rate of 41 months in the price ranges of $800,000 to $999,999. Therefore, each market takes on its own strategy, fluctuating between a Buyer’s and Seller’s advantage of negotiation.
- Listing Trends. The total active listings have slightly increased since last month, specifically 3.6%, which tops the 3,000 mark in our local market. Although this listing number has slightly increased since last month, the reality is that we are still 5.9% less of listings from the same time last year. Low inventory still remains and closer to asking price offers are found in the lower price ranges.
- Pricing. Average sales prices and median sales prices dipped about 2.5% since last month. This bodes well for those who plan to make buyer and/or investor purchases in our market. Couple this with low interest rates, then you can get in on the action of the market.
Currently, the market demonstrates healthier activity than what I saw for the first quarter of 2012. Typically, our market usually trails behind the Denver market by one-year. And that market is exploding right now. Truly, now is the time to seriously consider real estate for your next home or investment!
Feel free to contact Colorado Springs Realtor, Cherise Selley, Broker/Owner of Selley Group Real Estate, LLC or you may contact our group of Colorado Springs Realtors @ www.selleygroup.com or 2139 Chuckwagon Rd, Ste 210 - Colorado Springs, Colorado 80919 - 719. 598. 5101
All agents affiliated with Selley Group Real Estate, LLC are actively licensed in accordance to the laws of Colorado. Portions of this article are written by Gordon, as framed by the expressed opinions of Cherise, but not proofread.
“Based on information from the Pikes Peak REALTOR® Services Corp. (RSC), for the period February 2012 through February 2013. RSC information may not reflect all real estate activity in the market and is provided as is without warranty or guaranty.”