Five Year Trends for Colorado Springs Real Estate Market
Five Year Trends for the Colorado Springs Real Estate Market
I recently read an article in the Colorado Springs Gazette where they used the term "soared" to describe the increasing number of sales from September 2013 to September 2014. I do believe the title of the article is very misleading as well as the data they provided in the article. I report the statistics for our MLS on a monthly basis, and when I saw the report that the number of sales increased 24% from September 2013 to September 2014 I was skeptical.
When I look at the numbers provided by our MLS the number of sales in September 2013 was reported to be 829 and the number of sales in September 2014 was 1026. When you do the math, 1 - (829/1026) the number is 19.2%. When I look at September 2012 the number of sales was 773 sales, which is a difference of 24% but over two years.
I can't explain why the Gazette reported the wrong information, but this got me thinking, what are the 5 year trends? So I turned to our new MLS that provides us with a number of statistical reports. Now, I'm not a statistician, but even I can see that our market is doing better - maybe not "soaring" - but that is OK, we want to improve gradually, so we don't experience the bursting of the bubble like happened in so many markets in 2008.
All of the charts below show our typical seasonal fluctuations, but year over year we like to see improvements. The first chart shows that the average sales price is improving with our current average sales price at $253,218.
This chart is a ratio of closed price to list price. You can see we are at about 98.75% for September and the trend is up.
I always like to show my sellers the ratio of original list price to sales price ratio for their competition. It is a great chart to show that when the difference is great, sellers had to lower their price in order to receive an offer. In the graph below the ratio is actually increasing meaning that sellers are more realistic with their original list price (i.e. listening to their agent) and that the market is improving.
The following chart is also showing improvement in the market even though it is a downward trend. This is the Concurrent Days on Market (CDOM). A downward trend indicates that properties are selling quicker and are not remaining on the market as long.
If you would like to see the market trends for your area, go to Market Insider and insert your zip code and enter your name and email address when prompted.
By Nancy Murray
Murray & Associates, Keller Williams Colorado Springs