The shortage of homes on the market has increased the demand for homes and that demand is what drives prices up. In June, the Colorado Springs median price for homes rose 6.5% based on current information from the Pikes Peak REALTOR Services Corp. This matches the median price from June 2006! While the supply of homes remains low, the favorable interest rates continue to bring more buyers into the market searching for that perfect home.
However, the number of homes for sale in the market is down from a year ago, which reduces buyer's options and keeps home prices on the rise. With fewer homes for sale and more buyers wanting to buy, sellers are no longer as willing to negotiate on price as they were a year ago. Based on a survey that was conducted by Century 21 Real Estate back in May said that 42% of the homebuyers that were shopping for homes had submitted an offer on a property; however only 11% of the offers were accepted.
The tough competition has buyers rethinking their position. With buyers standing in line to place an offer on a property, sellers are not as willing to lower their price. This is causing buyers to sacrifice and compromise to secure a deal. Buyers are becoming more willing to buy a house in 'as is' condition, pay a higher dollar than they originally planned, and make sacrifices on their wish list items.
We did see interest rates go from the 3% range in May and inch up to above 4% in June; however, this is still a very affordable rate. Because the rise in rates can cause uncertainty, if you are a seller wanting to sell your home, now is the time to get your house on the market!
Don't wait! Prices are up and rates are low.