I have a market data link at bottom for reference. In May there were only 880 sold transactions. Yeah 880 is more than zero, we are almost 40% off the buying pace of the 2005 peak and there are 2200 more homes for sale. So units are up 50% on the supply side and down almost 40% on the demand side. One showing a week seems to be about average, and the average new listing price is $313,000. I'm guessing you're $100,000 to $200,000 more than that in Pine Creek.
The good thing is that there really is not a lot of new inventory coming on the market. Eleven of the last 14 months have seen fewer listings come on than the same month a year ago. So we're finally at the place where we have fewer homes for sale now than we did this time last year (about 2%). It will be interesting to see if this continued into June when PPAR releases their data next week.
Another problem that wasn't there just a year ago in your price range is jumbo financing. If you're over $417,000, that might effect buyers. You can put 3% down with some lender and do a $416,999 loan and you're in the conventional 6.25% interest rate category; cross $417,000 and you can only get that rate on a 5 year ARM. If it's fixed, the rate is close to 8%. And there are no 2nds to pair that mortgage with any longer. Colorado Springs buyers tend to leverage their purchases pretty heavily, especially further north in town. There isn't a lot of big cash involved in many sales. Pranab is relating pretty accurately the local buying activity: we have time on our sides; we're seeing some healthy price cuts; we're willing to stretch to get a great home, but let's see if that great home is willing to stretch to get us as a buyer first.
The national funk has really hurt our relo business this year. Last summer, all the buyers seemed to be relo because the markets weren't too bad yet in other places. Now the relo buyers who would want to buy D20, Pine Creek, Golf Course, etc.... they're coming from upside down markets, owe money on their home there and can't buy as much here or just plain can't sell their home there. Check out some of the price drops they're seeing in California, they're unbelievable (do a Trulia search on say, Stockton, CA). Those who got out last year got out ahead of the hurricane. Those who planned on getting out this year are in a race to the bottom. Those are the typical summer-time buyers we're used to seeing in Colorado Springs, and they just aren't here this year because of national problems dragging on the market.