Election seasons are often fraught with uncertainty, especially for major financial decisions like buying or selling a home. The 2024 election was no exception. In Colorado Springs, it left its mark on the housing market, subtly shifting trends in mortgage rates, buyer behavior, and inventory. For potential buyers and sellers in El Paso County, understanding this evolving landscape is key to making informed decisions.
Mortgage Rates: Modest Movement, Big Implications
In the wake of the election, mortgage rates ticked up slightly, now sitting at around 6.8%. This modest increase may not seem dramatic, but it dashed the hopes of many who were waiting for rates to drop. Some buyers had anticipated the election might bring policies or stability that would lower borrowing costs. Unfortunately, economic factors such as inflation concerns and rising federal debt have maintained pressure on rates, leaving buyers with higher financing costs than they had hoped for.
While rates remain far below the historic highs of the 1980s, they’re significantly higher than the lows seen just a few years ago. This continues to challenge affordability, particularly for first-time buyers.
Inventory Levels: A Buyer’s Silver Lining
One bright spot in the post-election housing market is the abundance of inventory. In El Paso County, the number of homes for sale is at its highest level in nearly a decade. This shift gives buyers an advantage they haven’t enjoyed in years—time and options. Unlike the red-hot market of recent memory, where homes were snatched up within hours, today’s buyers can take a more deliberate approach. They can weigh their options, negotiate more confidently, and, in many cases, secure favorable terms.
For sellers, however, this changing market presents new challenges. Pricing competitively and presenting a move-in-ready home are now essential strategies to attract offers in a more balanced market.
Buyer Hesitation: Waiting for the "Right Time"
Heading into the election, many buyers took a “wait and see” approach, hesitant to make a move until the political dust settled. However, the hoped-for surge in buyer activity after the election didn’t materialize. Instead, sales have simply maintained last year’s pace. As the holidays approach, seasonal trends suggest many buyers will remain on the sidelines until the new year.
That said, those who are active in the market now stand to benefit. Fewer competing buyers and higher inventory mean less pressure to make snap decisions or bid above asking price. For those ready to act, the current market offers a rare opportunity for careful consideration and potentially favorable deals.
Sellers: Adjusting to a New Reality
The Road Ahead: A Market Without Big Changes
Looking ahead, we don’t anticipate any sweeping federal policy shifts that will significantly ease the housing shortage. For homeowners, this is good news—equity and appreciation are likely to remain stable, as limited supply continues to support home values.
For buyers, the road remains a bit tougher. Without a substantial decrease in mortgage rates, affordability challenges will persist, requiring strong negotiation skills to secure a home at a price that feels right. High inventory and a slower pace of sales will likely continue into early 2025, creating opportunities for buyers who are prepared and proactive.
While the Colorado Springs real estate market may lack dramatic changes on the horizon, it remains dynamic. Those who understand its current trends—whether as a buyer or seller—are best positioned to thrive.
To see how this market is playing out in real time, check out these El Paso County listings.
