Сolorado Springs Housing Market Predictions in 2021

Bonnie Van Gorder of Bonnie Buys Houses Fast!

Many have been asking me what I predict for the 2021 Colorado real estate market for buyers and sellers, so I thought I’d share my thoughts based on my years in the real estate industry as well as what I hear from my network.

2020 An Unprecedented Real Estate Market In Colorado Springs

Before we dive into 2021, it’s essential to review what occurred in 2020 so we can understand the basis for our predictions. In 2020 we experienced an unprecedented seller’s market in El Paso County, where sellers saw their houses go under contract, on average, in 19 days at record prices. Inventory levels were at record lows, so buyers didn’t have a lot to choose from.  While sellers enjoyed unprecedented selling prices, buyers took advantage of record-low interest rates in the 2 – 3% range. The low-interest rates resulted from an effort to counter the negative economic growth brought on by the COVID 19 pandemic.

*Market Statistics December 2020, Empire: Title of Colorado Springs, LLC.

2021 Real Estate Forecast: Unprecedented Selling and Buying Continues

Impact of COVID and New Jobs in Colorado Springs

So let’s take a look at what sellers and buyers can expect as we move through 2021. What we know is that the COVID virus is still here. However, the vaccination rollout is bringing some rays of light. The hysteria and unknown that COVID initially brought on have settled, and we’ve learned what we need to do, meaning masks, disinfecting, and social distancing. Politically, the presidential election, which was also somewhat of an unprecedented affair that caused disruption has been settled. The job market remains shaky, but there is some light on that front as it was announced that Colorado Springs would House US Space Command For At Least 6 Years. The command brings more than 1,400 troops and civilian workers and potentially billions of dollars to the Pikes Peak region. Also, Amazon’s massive Colorado Springs distribution center is on track for 2021 opening and will bring over 1,000 new jobs. 

Sellers: What To Expect In 2021

Sellers, this is your time to sell. The real estate market in El Paso County remains very strong, so, if you’re looking to sell, take advantage of the many positives to selling in this environment. You can expect to have your house on the market for a short period. The average is 16 to 19 days on the market. That means not a lot of time where you have to keep everything looking pristine to show it. If your house is in excellent condition, you can expect to get top dollar and possibly receive multiple offers. In El Paso County the median house price was $380,000 in 2020, and according to Realtor.com  National Housing Forecast For 2021, for Colorado Springs, 2021 year over year sales growth is expected to be 5.4%, while the 2021 year over year price growth is expected to be 6.4%.

What Sellers Need To Do Now

Because of the market, if you’re selling a house that’s in good condition, renovations should be minor. If your home is in marginal condition, you may need to do a few key upgrades to get top dollar. I like to say you need to remove any eyesores or things that are blatantly out of date.

Appliances should be in the ‘new’ range, ensure landscaping is neat, and if need be, make light renovations to the kitchen or bath if it’s very out of date. If stained, an outdated color, or simply worn, putting down new carpet is an inexpensive fix that will make a difference and help you sell quickly and for top dollar. Check out Top 5 Tips To Sell Your House Fast In Colorado Springs for more ideas on what you need to do to sell your house fast.

Buyer Demographics for El Paso County

It’s always good to know your target market. We’re seeing a lot of first time Gen X and Millennial buyers who are taking advantage of only having to put a small amount of money down and lock in low-interest rates. They’re looking to buy a home for their growing family. VA and FHA buyers are also strong as minimal down payments are making buying much better than renting. First-time buyers can now get more for their money.

With Space Command, Amazon, and other stellar companies in the area, plus the high quality of life we offer, Colorado Springs remains a destination for people relocating for our excellent job market compared to other areas in the country. These ‘relos’ are bringing money from other locations, some of which have been more expensive (think New York California, Chicago), and they’re coming with good jobs, all of which put sellers in a good position to offer their homes.

Finally, there are the trade-up buyers, who include millennials or there’s the baby boomers who may be downsizing. All these buyers realize the low-interest rates make it a great time to make a move and buy a new home.

What Are Buyers Looking For?

Buyers are looking for a turnkey house. They want move-in ready, meaning they want to move in and not have to do any repairs or renovations. Buyers are willing to pay more for move-in ready and will even bid up homes that feature the amenities they’re looking for.

Buyers are also willing to pay top dollar for homes that are centrally located and near conveniences like shopping, restaurants, doctors, dentists, etc. Buyers realize they may have the work from home situation today, which will most likely not last forever. Thus, as we get back to a normal state, they’ll want the conveniences close by. 

Buyers are also willing to pay more for top school districts. In El Paso County, the top school districts include District 20, District 38, and District 49. I have to add District 11, which has made significant strides in the last 10 years and is also in growing demand. 

If buyers are without kids, they are willing to compromise on the school district.

Overall, buyers hope to find affordable houses (which will not be easy due to continued low inventory). Buyers will be watching the low-interest rates while looking for availability in the market at their price point, which can be a challenge, especially given low inventory.

First Steps If You’re A Buyer

If you’re planning to buy a home, get prequalified with your lender and be prepared to act quickly. When you find a home you like, you’ll most likely pay asking price with no concessions (i.e., the seller won’t pay any closing costs), and for more desirable houses, you may be paying above list price. There are not a lot of deals out there, however you will enjoy the low interest rate for the life of your mortgage. If you want to pay below-market value, you’ll need to be prepared to do repairs and renovations while you’re living in your new home, some of which may be quite expensive. 

First Steps If You’re A Seller

Sellers, now is the time to sell if you are interested in moving from your home. This market will not last forever, however, there has truly never been a better time for you to profit from your investment. If your house is in prime condition, you can expect to get top dollar and receive multiple offers, and it will happen quickly. 

If your house is in marginal condition and you want to get top dollar and have your home move quickly, you should make the few upgrades needed to help your house move fast. Having a house on the market is tiresome as you have to keep it pristine for showing, and with COVID, having many people traipse through your home is not preferred.

If your house doesn’t fit into the above categories, you can still profit and get a fair price without a lot of hassle. For example, if your home is in poor condition, you inherited it, and it needs repair, or perhaps the economy has you behind on payments, you may want to sell it quickly. You could go the standard route and use a realtor, or you can contact a local, reputable real estate investor who will give you a fair price. Here we emphasize that you should make sure the investor you are working with has experience which usually comes with several years of being in the business. Client testimonials are also a good way to evaluate a seasoned investor. In this real estate environment, you have to beware of those who will take advantage of the market and you! 

If you want to sell your house quickly and don’t want the hassle of renovating or repairing, contact us. We’re reputable real estate investors, a family business, and we’ve lived in the area for 28 years. We’re happy to provide you with a free estimate of what your house is worth, and we pay cash, or we can use existing financing to buy your home. We buy your house fast, and we always treat our clients fairly. If selling your house quickly is your goal, don’t hesitate.  Contact us today with any questions or for an estimate. We’re always happy to share our expertise and help.