COLORADO SPRINGS — Colorado Springs is currently experiencing a housing inventory shortage, according to the Pikes Peak Association of Realtors. Their data shows that in July 2022, there were 2,087 houses on the market. Compared to July 2023 with 1,464 houses on the market, that's a deficit of more than 600 homes.
"Generally, we're seeing inventory levels that are a little bit lower than normal, sales are down a little bit, and buyers are struggling to find a home still in today's market," said Broker Manager and Realtor with Remax Properties Brian Slivka.
One buyer I spoke with, Corey Wager, has enjoyed living on the northwest side of town. Since he and his wife have had two kids, they've spent the last year looking for another house in their area. They still have yet to make a purchase.
"We are hanging in there, we're keeping our eyes out, but these houses come and go infrequently, so you kind of have to jump on it when they come," said Wager.
Slivka believes the problem stems from high interest rates, as well as the rapid growth our area experienced during COVID-19.
"The interest rate that a lot of people have currently in their home is probably below 4 percent, and the other reason would be number 2, home prices have gone up exponentially since 2019," said Slivka.
"Doing the conventional 20% down isn't really good enough for that the house you want, you really have to go above and beyond," said Wager. "For the layout we want and the pricing on the area we want it's a little bit limited in inventory. It's been hard because it's competitive when the right house comes up that's at the right price, but there are a lot of houses that are still over price because of inventory".
Slivka believes that lower interest rates could potentially combat the lack of inventory in Colorado Springs. He also believes we are in a "balanced" market in Colorado Springs. While buyers are often paying more than the asking price, many homeowners are unwilling to sell, since their current mortgage interest rate is most likely lower than the current market rate.
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