Real Estate Absorption Rate in the Colorado Springs Area

What does it mean, months of housing inventory? And why is it important information?

Let us tell you about what this means for the average home buyer…

Simply put, if no more homes were to be listed and the existing housing inventory (homes currently for sale) was all that was available, it is how long would it take to sell out of the available homes for sale.

Currently in the Colorado Springs area it is 1.3 months.

And the formula looks like this - Current active listings ⨸ sold listings for the last 30 days

Current active residential properties for sale in El Paso County Colorado - 1932

Homes sold in the last 30 days - 1473

1932 ⨸ 1473 = 1.3

This time last year the Colorado Springs area had about 0.5 months of inventory, lots of buyers and low inventory pushed the housing market heavily in favor of the sellers. A stable market will have about 5 to 6 months of inventory, so what we are seeing in the Colorado Springs area housing market now is a slight shift from a market that was heavily saturated with buyers to a market that is seeing the buyer pool thin out slightly as more homes are coming up for sale.  

Even though the shift is slight this does add leverage in the favor of buyers as we are seeing  price drops on 40% of actively listed homes and sellers offering concessions to buyers as incentives.

This information is important because it is an indicator to real estate professionals whether it is a “Buyer’s Market” or a “Seller’s Market”.  And even though the numbers this year are higher than the last (by the way the Colorado Springs housing market from 2020 - April of this year saw unprecedented demand) the numbers indicate that the Colorado Springs area is still a seller’s market.  

Many sellers and agents, based on the home buying activity over the last couple of years, are expecting quick sales and multiple offers, but the numbers are saying that’s not where buyers are at in the current market.  With less competition, home buyers are feeling less stressed to make a quick (sometimes panicked) decision and are now able to take the time to see more properties and have a little more negotiating power when making an offer.

Colorado Springs Real Estate - EXIT Realty Mountain View, Brandy Brown Employing Broker/Owner - We help home buyers and sellers along Colorado’s Front Range including Colorado Springs, Pueblo West, Woodland Park, Fountain, and Peyton. Please contact EXIT Realty Mountain View at 719.375.3864 to connect with one of the amazing brokers on our team.

“Your dream is our mission.”