The cost of living in Colorado Springs in 2022 is at 104.5%. Compare that to Denver, at 128.7%, Pueblo, at 85.2%, and Los Angeles at 173.3%. While Colorado Springs is expensive to live in, it's still relatively inexpensive when compared to larger or more developed cities.
Property showings have continued to be incredibly slow (about 1.5 per listing per week)! Buyer interest has dropped, at least here in Colorado Springs. The market has definitely leveled off.
The Home Purchase Sentiment Index® (HPSI) stated that 80 percent of consumers believe that now is not a good time to buy a house. According to the survey that is the highest percentage ever of lack of faith in the housing market.
The average sale price in Colorado Springs has started to go down since April. Interestingly, it has bumped up again for July. However, if you look at the "Close Price to Original Price Ratio," you'll notice that on average, homes have not been selling for more than asking recently. This is one metric we can use to look at the market as a whole.
Back in March, Colorado Springs made it onto the top 10 least affordable metro areas in the United States (we placed 10th).
Then, at the end of April, when mortgage rates went up, buyers pulled out of the Colorado Springs market, sharply.
Home builders, after having ignored real estate agents for three years because of the sheer buyer demand, are now soliciting agents again to find buyers for their new construction homes.
6/2022 Interest Rate: 6.1%
12/2021 Interest Rate: 3.1%
Average Days on Market is 13 for Colorado Springs
The Feds are raising the interest rates another 0.75% this week. I expect mortgage interest rates to increase in response, long-term anyway.
Inflation is up 9.1% as of end of June. Anecdotally, I have heard that people's grocery bills/living expenses went up about 20% over the last year. Your cost increases may be similar.
Is any of this sustainable?
This market has slowed down A LOT. But we were going Fast and Furious for a couple years here. Now, it's more normal. However, what that looks like in reality is that showings are much fewer for properties.
There are 1,663 listings in Colorado Springs (2,163 in El Paso County in total). That's only a little bit more than the number of listings we had in July 2019. Remember how low that inventory was?
June 2019 TOTAL Listings: 1,366 in Colorado Springs, 1,680 in total in all El Paso County. Inventory has not changed much since then.
We would need to have about 5,000 listings in Colorado Springs in order to see a truly balanced market between buyers and sellers.
What we are seeing right now is a temporary pullback from buyers, due to shock from:
However, could this pullback turn into a long term thing? Is a recession still possible? I don't see the cost of living decreasing, however...
No one wants to buy right now.
If you as a buyer plan to purchase a property to live in yourself, and you plan to keep it long term, then that's the most important thing for you. If you're going to be paying rent anyway, then I consider it a win to lock in a mortgage payment that won't rise like your rent will.
Only you know where you need to live and what that looks like. Just do what's best for you!
If we do hit some kind of recession, home prices may continue falling in Colorado Springs a bit.
Moody's Analytics estimates that Colorado Springs home values are 41% overvalued. That means that a $500,000 home in Colorado Springs might drop in value down to $295,000. Yeah, I think not.
CoreLogic, which runs the majority of the Multiple Listing Service companies for real estate agents throughout the country, thinks there is a low (10-20% chance) of Colorado Springs home prices falling in the next 12 months. That statistic seems more reasonable, but only time will tell!
If you are considering selling property, be aware that it will take longer to sell, and you are not going to get the multiple offers or extra incentives from buyers anymore. In fact, you will likely be giving seller concessions toward the buyer's loan closing costs. That's something that hasn't really been happening since 2017.
Houses, townhomes, condos, all of those need to be in great shape, with great first impressions, in order to sell. That is what a normal market looks like. Unfortunately, this market is still not normal.
I don't know if home values will suddenly plummet in the next 6 months. Nobody knows. I do know that most buyers are uncertain if they should buy right now. If you want to sell in this market now, be prepared for that. Buyer incentives are making a difference again, because most buyers are hesitant.
In the end, none of this really matters. Investor buyers will buy based on the numbers. People who buy to live in it buy because of a change in their lives. There will always be change.
For home sellers, here's how I may make you up to $15,000 over what you would make selling your home on your own, and for way quicker, and here's how I am different from other agents you may talk to:
As you may know, For Sale By Owner Houses don't usually have the same traction as a house listed by a real estate agent. They also don't usually sell for as much. This is due to the inexperience of the homeowner, bad pictures, incomplete info, and most importantly, the homeowner isn't responsive enough to actually sell their own home (I see this one ALL the time).
And of course, it’s not their full-time job, so they can’t give it full-time treatment, which is what you need to sell a house!
For Sale By Owners also don't have public data on what they listed for, how long they were on market, and what they sold for. It's hard to have good data on them because of this. However, as an example, I personally followed a FSBO in 80907 this year, and this is what I found:
1201 Westmoreland listed for $400k sometime in early April 2021. It sat on the open market for two months before the seller listed with an agent on June 25th. They listed at $395k. It went under contract Jul 9th (14 days on market), and sold for the same price, $395k.
When I talked to the homeowner, I thought his asking price of $400k was too high for the home, and that seems to have been correct! It sat on market for too long, even with an agent, and the seller missed out on getting a bidding war and top dollar for his home.
The listing agent also missed out on getting more for her seller. If they had listed a little bit less, they could have easily gotten into a bidding war!
Let's take a few more for sale by owner examples in 80918:
There are currently 53 for sale by owner homes in all of El Paso County, at least on the Zillow website, and 2 on ForSaleByOwner.com.
More nearby For Sale By Owner homes:
By comparison, the average days on market for an agent listed home in 80918 is 4 days before it goes under contract! Agent listed homes in 80918 have also been selling for 101.1% to 108.2% over the list price over 2021 (last year it was 100.0% to 102.2%).
FSBO homes seem to sit for 2-3 months before they list with a real estate agent, or they finally do get a lower offer that they decide to take because of the sunk cost fallacy. Or they cancel selling altogether and just get frustrated.
If a home has sat for 2-3 months without an offer, and I wanted that home, I'd be offering a considerable amount less than asking. If the house was listed at say $450k, for a couple months on market, I'd offer $400k.
I mean why not, what's the worst they're going to do, say no? They can counter, and we can find some compromise, but I would at least expect a 20k discount on the price of the home. I could be totally off the mark here on pricing, but that's my personal opinion.
So let's say you as the seller sell this house on your own for $430k. After paying the buyer agent commission (3% is an average amount for each agent that we see in Colorado Springs, though this number is negotiable with your agent) and title company costs, you're usually paying around 4% of the amount you sell your home for, if you sell it without a listing agent.
So in the above example, you as the seller doing FBSO would be walking away with $417,100, and that’s if you actually get $430,000.
If you instead listed with a real estate agent, your agent would likely tell you your home needs to be priced lower, at say $430k. Once your agent lists your home, if we expect to sell your home for 101.1% to 108.2% over the list price, like the average for 80918 in 2021, then you could expect to sell it for $434,730 to $465,260. After factoring in 7% for costs (both real estate agents, and title costs, again, your own numbers may be different), your net amount is $404,299 to $432,692.
So selling at the same price, you make $12,801 less, to $15,592 more with an agent than you would selling it yourself, and you'll do it in 4 days instead of 2 months or more on your own. As a good real estate agent will often be able to sell your home for more, you may make even more on the sale of your home with an agent.
Now, if you’re listed in the MLS with an agent, you stand a much better chance to actually sell your home than selling on your own. Often what will happen is a homeowner will try selling their home on their own, give up after a month or two, and then use an agent. The price could have been too high, or the pictures bad, or not enough exposure as many buyers rely on their real estate agent’s MLS search. Often it’s all three.
So based on the information above, you MAY be able to sell for more on your own than with an agent, but without the experience, responsiveness, and discipline that it will take you to sell it, the odds are against you.
You can potentially save the commission you would have paid out to a listing agent, but then that work your agent would have done falls on you instead, and it’s a lot more work than most people are aware. There’s a reason there’s a whole job for it!
Ultimately, the net amount you as the seller walk away with is the most important number. If I can get you a net amount that is as much or higher than what you were hoping to sell your home for, then does it matter if my commission is $1,000, $10,000, or a million dollars? At the end of the day, the important thing is how much net you are making on your home.
I am transparent in what your options are and what the costs for those options look like. Whether it’s listing your home on the local real estate market in Colorado Springs, or getting a quick cash offer, you get to make the best decision for you! Many buyers are also typically willing to let you stay in your home for a month or two (sometimes more) after closing, so that you have time to find your next home!
If you'd like to dive deeper into numbers, I'm happy to do that with you.
Now, if you live in 80918 or know someone who does, then I’ve compiled some data for 80918 in particular:
There are 7 new listings in 80918 in the past week, ranging from $349,900 to $460,000. There are currently 30 homes for sale. There are 85 80918 homes currently under contract, and 427 that have sold in the last 6 months. 80918 is projected to increase in value by 15.4% over the next year.
Median sale price for 80918 in Colorado Springs for the past 5 years:
What I am looking for: someone who is looking to sell their home in 80918 in Colorado Springs, and who is looking for the knowledge and assistance of a local real estate agent. If you are interested, or know someone who is, please let your friendly neighborhood agent know (remember I live here!). Thanks, and I look forward to working with you now or in the future…
Amazon is hiring another 2,200 employees for Colorado Springs! Amazon already has 2,500 employees in the Colorado Springs area, so this is a big addition to job opportunities in Colorado Springs.
What does this mean for the city? It means that there are going to be 2,200 more people with jobs, who may be able to qualify for a loan in the near future. It will create more people who need a place to live!
Also, fun fact, did you know that the typical home value in 80921 is $649,714 vs 1 year ago when it was $549,538?
We'll take another zip code, 80919, where the typical home value is $552,956, versus $448,000 a year ago.
Now let's look at the hottest zip code in the country at this moment, 80916 (just to the left of the CS Airport). The median sale price for 80916 in 2021 is $344,000, vs a year ago at $283,500.
The median home price in Colorado Springs in general sits at 450,000. Compare that to Metro Denver, where the median home price is at $535,000.
So given all the rising home prices, are the people who get jobs at Amazon going to be able to afford homes where they work? Are prices just going to keep increasing?
As I’ve said before, I don’t see any reason for Colorado Springs to stop growing. It is a high demand city, with inviting landscapes and hiking, seasonal weather, fewer bugs, dry, growing nightlife and events, and more. It’s got 5 military bases, with a constant movement of military members. Colorado Springs has lots to offer businesses, as you can see from Amazon’s continued interest in using Colorado Springs as a hub for the whole state.
Yes, it’s unfortunate that the high home prices are driving out many people who want to live here. Still, the demand isn’t going away, and home builders are booming with business trying to keep up with that demand.
So should you buy now, if you’re thinking about it? Should you wait? I think if you want to buy a home for yourself to live in, or if it’s an investment, I don’t think the home values are going to decline at all. They will likely not increase quite as sharply as they did over the past year or two, but I see no reason for home values in Colorado Springs go back down.
If you’re thinking of investing in Colorado Springs, you may be aware that your profit margins are not going to be as lucrative as they would be elsewhere in the country, but you also may make up for that with home value appreciation, due to the demand. Rents are increasing also, so if you’re partial to the city, there are certainly opportunities to pick up investment properties in CS!
August Real Estate Stats for Colorado Springs!
These are the quick August 2021 stats for Colorado Springs, comparing this year to 2020:
•Average Sales Price UP 19.60
•Median Price UP 19.2%
•Residential Units Sold UP 8.3%
•Inventory Levels DOWN 55.7%
•Number of Listings DOWN 48.4.%
•Average Days on Market: 9 days
•Interest rates 2.84%
If you would like to see the full August report, click here:
In other news, the Marlboro Man's 8 million dollar house is for sale in Colorado Springs:
It's near the edge of Black Forest. Bob Norris played the Marlboro Man in ads in the 50s and 60s. It's a 14,000 square foot home on 15 acres, with 8 bedrooms, 10 bathrooms, a 5,300-square foot indoor ice rink, and the other normal rich people things like a movie theatre, tennis courts, courtyard, and swimming pool.
Bob Norris died almost two years ago, a few years after his wife. Bob hasn't owned the house for many years now, it's passed hands a few times since then, but it's fun to learn that history!
I also liked spotlighting a local Colorado Springs zip code last week and providing a snapshot of how the real estate looks there. This week let's take a look at 80922, and 80924. I quickly put together a couple small infographics for each zip code, thanks to the Canva app. Let’s take a look at them!
Expect to see more continued growth in 80924, as Colorado Springs continues to develop in the north and eastern sections of the city! If you live in a different zip code and are interested in what the numbers are for your zip code, let me know!
And that’s pretty typical, is the further north you go, the more expensive it’s getting, and of course that has to do with new development, rising costs of construction, and the desired north location. That’s fine with me, I’m happy living closer to the heart of the city, with mature trees all around! :)
If you're interested in finding out what your home is worth now, ask me! I'm happy to look into it, lots of people are shocked to learn how much of an increase they've had in equity.
If you think someone else would like to know what their house or zipcode is worth, let me know. I'm happy to share what I know!
Kevin James Bond
The Sufak Team
RE/MAX Real Estate Group
I assume with a grabby title like that, you’re a nerd like me and like to see the stats. A lot of people who are new to Colorado Springs like to know things like crime rates, which neighborhoods are safe, what parts of the city to avoid, that kind of thing. Let's go!
I definitely have opinions on all of those things! I can show you what neighborhoods have lower crime rates, I just am not allowed to say "this is a bad neighborhood" because I’m a real estate agent. Isn’t that wild? That’s a whole different topic, but it doesn’t stop me from pointing you in the right direction so that you can still get the answers you’re looking for.
I can’t blanket a neighborhood or zipcode or part of town, but I can let you see what kind of crime is happening and where it’s happening in Colorado Springs. Then, you’ll know what I know!
Where are the safe neighborhoods in Colorado Springs?
Ah, what you're looking for is the crime rate! When people talk safe neighborhoods, I assume they are referring to "how often are violent or other crimes happening," or "are there sketchy people walking around in this neighborhood?"
You will want to reference a copy of the Colorado Springs official website's Neighborhoods map. Don't waste time looking at some other real estate agent's neighborhood map when you can go to the source and get a beautiful full color map that will show you EVERY neighborhood.
Ok, now that you've given that a look, use it with the list below.
Here is what the low crime rate neighborhoods in Colorado Springs include:
*Note that there are many pockets of great, safe, neighborhoods within all of Colorado Springs, and the above list is not all inclusive, nor should you necessarily stick to just these neighborhoods. The cheaper the neighborhood is, the more likely it is to attract more crime. I am using Colorado Springs online crime maps to base my above list on, and you can too!
If you're still here, I assume you're willing to look at a bit more information on crime rates in Colorado Springs, like other websites you can check out. You got it!
Before I direct you to some information, I will summarize where you can find what I'm about to show you:
Colorado Springs crime maps
Colorado Springs Subreddit
Google Maps - Colorado Springs
Colorado Springs news outlets
Take a quick look on Reddit, if you use that website, and look up that same question on the Colorado Springs subreddit: What are the safe neighborhoods in Colorado Springs? What are the bad neighborhoods in Colorado Springs? What are the crime rates?
You’ll get lots of opinions, and from what I have seen in those threads, there is a lot of overlap for many answers, and I think that’s helpful.
Below are some suggestions for websites that can help you determine where you would like to live in Colorado Springs, based on the crime rates:
My Neighborhood Update
The My Neighborhood Update site is based on calls in to local participating police agencies. The calls may or may not actually be followed through on, but just a call in from someone counts on this site. Sex assault crimes are not included in the Colorado Springs Police Department's upload to My Neighborhood Update. For that, visit: https://coloradosprings.gov/police-department/page/your-neighborhood
For this site, you will need to type your city in (Colorado Springs of course) and you’ll need to zoom in close enough to the city to start seeing results.
You can narrow down based on property crimes, violent crimes, traffic, proactive policing, noise, and disorder.
CommunityCrimeMap is run by LexisNexis Risk Solutions. On this site you can search for a lot more types of crime, like arson, assault, burglary, homicide, motor vehicle theft, robbery, sexual assault, and general theft.
I had problems getting the site to bring up results when I typed in the city, so I manually zoomed in to Colorado Springs to see the results, heads up, if you run into issues. Otherwise, it's a great site for crime rate info!
CrimeGrade is the third one I like. On this site you can just go straight to Colorado Springs and see the crime rates, but in a color-coded system as opposed to individual hits. It lets you zoom out in a sense and see the bigger picture of different areas and neighborhoods of the city.
But wait? What about crime in Colorado Springs in general? What is that like? That one is easy also. Take any of the above sites, and type in your current town or city you live in, and compare! You’ll probably learn some things about where you live that you didn’t know before. You could also compare to any other city you have in mind, for a reference.
You can use CrimeGrade, for example, and just scroll further down the page where they will compare the overall crime rate, violent crime rates, and property crime rates of other cities like Denver and other nearby metro areas, and you can also look at other cities by similar population.
Colorado Springs News Outlets
Other websites you can use to find out local information about Colorado Springs, which will give you local neighborhood use you might find interesting about the neighborhood you're interested in, include:
Colorado Springs Independent (Indy)
Colorado Springs Gazette (subscription based news)
KOAA News 5
KKTV News 11
KRDO News 13
There are other crime rates websites for Colorado Springs also if you do a Google search, but those are my recommendations for a few sites that look to be a reliable source for that information!
Now a disclaimer, I’ve lived in Colorado Springs since 1994, and I have never used a website to look at crime rates in Colorado Springs to base where I want to live. Granted I’ve lived here a while and know the city, but when I’ve been on crime rate sites to look at the Springs, and they start comparing Colorado Springs to other cities, is where they lose me.
For example, CrimeGrade rates Colorado Springs an “F” in crime and safety, and Denver is a “D.” The overall crime grade letter doesn’t really mean anything, as it’s an average of the city as a whole. What’s the difference between D and F? They both fail. If the Springs was so ridden with crime, we wouldn’t have the housing boom we have now. So to give a letter grade I feel is misleading.
To further my point, take a look at this Patch article about Colorado Springs being one of the safest cities in America, as of the end of 2019, when the article was written.
You can also look at Niche's Colorado Springs crime and safety poll, which I think is a better way to figure out crime in Colorado Springs in general.
Crime and safety is very subjective, and more information, and LOTS of other people's opinions, is the answer.
Another mention is to look up neighborhoods on Facebook to see if you can find any local community pages for very niche local news for the specific neighborhoods you are looking at. The big popular neighborhoods like Banning Lewis Ranch for example, has its own FB page. A lot of smaller communities will not have this feature though, so it's hit or miss.
Colorado Springs Google Maps for crime
Another great way to know about a neighborhood’s specific quirks, and what kind of people live there, is to use Google Maps, yes Google Maps! You can do the street view on a particular address and go from there to click through to other streets, which allows you to virtually see a whole street, and a whole neighborhood, straight from your phone or computer.
Start with my work address on 215 W Rockrimmon Blvd. From there, click through to the streets you want, and Google Maps will show you what the neighborhood looks like from the street, without ever having to leave your house!
Talk to your neighbors!
Of course, you could do the same thing in person, if you’re in the Springs, just start driving in different neighborhoods and get a feel for how you like them. If you are in the Springs, this is the route I would recommend, over all other ways of finding out about crime, or what you think of a particular neighborhood.
If you go see neighborhoods and houses in person, what you and/or your real estate agent can do at that point, is after you go see a house, or let’s say you want to get the scoop on a neighborhood before you start looking at homes there, what you do is you start talking to neighbors! Go find people in their front yard, or if you can’t find anyone, knock on some doors and tell them what you’re doing:
“Hi, I’m Kevin and I’m looking at buying a house on Adirondack (give them the actual street you’re on), do you know anything about the neighborhood that you’d say would be important for someone new to know about?” You could start a conversation with someone who actually lives there and get their input about crime, safety, schools, the neighborhood quirks, all of that.
You could ask your real estate agent for their opinion, but it’s only one opinion. Your agent’s job is to represent you in the purchase or sale of a house, professionally. A great agent will always be challenging themselves through continued education and constant interaction with the real estate market.
They can show and guide you in their field of expertise, and there is a right and a wrong way to write contracts and stay out of legal trouble.
There is no right or wrong answer on where to live in Colorado Springs, or where not to live, or what do you love/hate about Colorado Springs, or pros and cons. Those are all subjective answers, and that’s what a real estate agent is not supposed to do, is give their subjective opinion on where is a good place to live.
All they can do is help you buy or sell a house. So for real estate agents, they can’t tell you where, but they can tell you how.
Their singular opinion on a neighborhood, since they are in a position of trust, may steer you away from neighborhoods that you might actually like, and that’s where fair housing violations come into play.
Again, a real estate agent cannot legally give you their opinion of if a neighborhood is "safe," or if a school in a particular neighborhood is a "good" school, without likely violating fair housing laws. For more info on that, visit: https://realestate.usnews.com/real-estate/articles/what-your-real-estate-agent-cant-tell-you
If your real estate agent is willing to tell you, “These neighborhoods are in the bad part of Colorado Springs,” they’re scaring you into not wanting to move there, right? Due to the standards of professionalism we as agents have, we cannot steer people away from any neighborhood. The client has to choose their own places they don’t want to live. Obviously, the prices will likely affect where most buyers choose to live also.
This is another reason I say to actually talk to your neighbors/potential neighbors. You will quickly get a good feel for what kind of people your neighbors are, and how THEY feel about the crime rates and safety in their neighborhood. Why would you base your opinion on one agent’s neighborhood preferences, when they may not even live in the neighborhood you’re looking at, when you’ve got people who actually live there who can tell you all about it?
So in summary, use the above websites to gather information about the neighborhoods in Colorado Springs you are interested in, and use the above sites (AND others if you like!) as a supplement for getting some quick opinions from others, but when you think you have 2 or 3 neighborhoods you want to focus on, actually talk to people who live there. Go take your dog or your kids for a walk in that neighborhood and be friendly with people!
That’s the best way to learn about Colorado Springs.
I'm Kevin James Bond, native to Colorado and author of this site, which exists to educate anyone who wants to hear a local's thoughts and experiences with Colorado Springs and the surrounding areas. I am also a Colorado Springs real estate agent. You may learn more about my real estate services at Kevin James Bond, RE/MAX Real Estate Group.