The months of inventory in Colorado Springs has increased from 2.9 to 3.4. This means it will take 3.4 months to sell all of the current inventory on market with out adding any new listings. Denver Metro has increased from 2 to 3.
A typical sellers market runs from 0-4 months of inventory. Neutral market is 4-6 months of inventory and a buyers market is 6+ months of inventory. Recently it has definitely felt like a buyers market with the amount of price drops and increase in opportunities to negotiate for buyers. We still have a long way to go before it is a complete official buyers market and who knows the types of deals you could get at that time! The end of 2022 will definitely push Colorado into a certain neutral market with the FED rate increase in mid December.
A neutral market provides buyers options to negotiate great prices for long term holds as primary residences and investment properties. Although, do buyers really have as much leverage as they think? Hard to say, but compared to where the market has been the last two years with buyers having no leverage over sellers getting a little bit back sure does make it feel like negotiation power is in the buyers favor.
If you know anyone considering to make a new investment I'd love to help them out. Send them this article to keep them informed on the changing market!
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