Months of Supply in Todays Market

The real estate market constantly changes to benefit different people. There are no good or bad markets, only markets that benefit buyers or sellers more favorably. The past two years have favored sellers due to low supply of properties on market and a large amount of buyers. Buyers had very low interest rates helping them afford more but caused the challenge of getting the home they wanted with much competition, which sellers took advantage of.

In late 2022 the market has shifted with the fast increase of mortgage rates. Buyers have backed away however, this leaves an opportunity for those looking to be creative in a more neutral market between buyers and sellers.

The months of supply is a great indicator on which direction the market is leaning. Since 2020 the months of supply in Colorado Springs has been at 1.2 or less, leaning heavily towards sellers. Currently, it is at 2.1 months of supply. Typically, anything over four months is a neutral market and seven plus months is a buyers market. A increase to 2.1 simply shows the market leaning back towards a neutral market giving buyers the opportunity to be creative on the offers they write.

How this benefits you! Start getting creative with the offers you write and ask your agent what they recommend. Think differently on the ways for you to own real estate long term. Being informed gives you the upper hand on others in your market!

Data found:

Pikes Peak Association of Realtors®; Pikes Peak Association of Realtors® (PPAR) | Pikes Peak Multiple Listing Service™ (MLS). (n.d.). Retrieved August 29, 2022, from https://ppmls.mlsmatrix.com/Matrix/Stats/Stats.aspx?c=AAEAAAD%2A%2A%2A%2A%2AAQAAAAAAAAARAQAAAEQAAAAGAgAAAAQzMTg1CgYDAAAAAjI1DQQGBAAAAAI2Mw05BgUAAAAFbnXDmF4NAgs%29