Onward and upward. In 2021, Colorado Springs enjoyed one of its strongest housing markets in its history. The average home price rose over 18% compared to 2020. The number of units sold was record breaking to include existing homes and new construction. 18,073 homes from PPMLS data. Many upper end homes that would have normally sat on the market, sold in 2021 and at strong prices.
Experts say this trend should continue in 2022, pending the impact of a few factors. The Federal Reserve expects to raise its key interest rate three times this year. While these increases are typically no more than 1/8 to 1/4 of a percent, it adds to the overall cost to buy a home if you are financing the purchase. Low inventory and supply chain issues will also continue to be factors in 2022.
Although there is limited inventory there are generally more homeowners willing and wanting to sell than you might imagine. The lack of inventory has stalled many potential Sellers from putting their home on the market. “…sure, I’ll sell my house but where will I go…?” This is all too often what we have experienced recently.
This reluctance to list and sell has brought about new and creative thinking from Buyers. Generous extended closing dates and post-closing occupancy agreements are becoming common place. At Broadmoor Properties we have, for many years asked that the buyers and sellers agree to some type of post-closing occupancy agreement. While in the past it was used to simply ease the stress of trying to move out prior to closing, not knowing if the transaction would close. It is now used by buyers to help the sellers, sell now and transition to their next home later.
While nothing is for sure, we can expect 2022 to be another busy year for residential real estate sales.
If you have questions or would like to learn more about the Colorado Springs housing market, please call Michael or Tim at 719-471-6200. Now is a great time to sell your home with Broadmoor Properties!!!