‘Seller’s market’ ending, as interest rates cause an influx of housing listings in Colorado Springs
COLORADO SPRINGS, Colo. (KRDO)-- The tide is shifting, and what was once a dominant seller's market in Colorado Springs and the surrounding area just more than a month ago, is now anything but that.
New numbers show a significant shift in housing listings in El Paso County.
Just in the last month, the Pikes Peak region went from having 1,300 homes on the market to 2,100, according to the Pikes Peak Association of Realtors.
"It's a dramatic difference," according to realtor Patrick Muldoon. Muldoon says just over a month ago, buyers had a tough time moving quickly enough to purchase a house in Colorado Springs. Now, that's far from the case.
"They were very aggressive, sellers had a good run," he said. "So maybe we're just seeing some balance."
The problem is seemingly interest rates on mortgages. In July of 2021, average interest rates ran at 2.9%. Now, they are up to 5.3%, making the purchase price of a home just too expensive.
For example, if someone bought a $300,000 home in June of 2021 with the current 30-year interest rate at the time, they'd be paying about $1,249 monthly. Now, in June of 2022, with that same $300,000 house, with the current interest rates, they'd be paying about $1,666 a month, for the same home.
Muldoon says this trend started in Denver and has made its way down here. Eventually, he believes prices will drop.
"I think if we're trending like many parts of this region, you're going to see price drops through the end of the year."
He says the sharp decline in home buying has happened before-- In 2001 and in 2006-- but not at a speed like this.
"When it's quick, it's quick. But this has been very quick. Buyers got very cold-footed, quick."
So while it's certainly not a seller's market anymore, Muldoon says this transition period may be a time for buyers to stand pat too.
"I think the next six months is probably going to show more inventory hitting the market."
