If you missed the typical sweet spot for buying a home around the end of September, there’s still good news: The upcoming holiday season—from mid-November to early January—might offer better-than-average opportunities for buyers in Colorado Springs. Several factors, including rising inventory levels and projections for falling mortgage rates, suggest that the end of 2024 could be an ideal time to purchase your next home. Here’s what you need to know and how you can prepare for these changing market conditions.
What Makes This Holiday Season Different?
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Above-Average Inventory in the Colorado Springs Market
Typically, housing inventory begins to taper off toward the end of the year. However, 2024 is breaking the mold. As highlighted in the chart, active listings in the Colorado Springs real estate market hit 4,849 in September 2024—the highest level we've seen since 2015. This is a sharp contrast from previous years when inventory often dwindled during the fall and winter months. More homes on the market mean buyers will have a broader selection and more negotiating power. -
Mortgage Rates Expected to Decline Further
Although mortgage rates have been elevated throughout much of 2024, recent trends suggest relief is on the horizon. According to CME Group’s FedWatch Tool, a rate drop is anticipated for December, with additional reductions likely in early 2025. These expectations are already causing a slight decline in mortgage rates, improving financing options for homebuyers.Important Note: While market projections are optimistic about rate cuts, there’s no guarantee that the Fed will act as expected. Mortgage rates don’t always follow a predictable path, so it’s crucial to stay informed about the latest developments by consulting with your lender.
Why Buying During the Holidays Might Be a Smart Move
1. Less Competition
With many buyers pausing their home searches to focus on holiday activities or waiting for clearer market signals in the new year, you’ll likely encounter fewer competing offers during this time. Historically, sellers listing homes in the winter are more motivated to close deals quickly, which could translate into price reductions or more favorable contract terms for buyers.
2. Potential Savings on Home Prices
As the holiday season approaches, sellers often become more willing to negotiate, especially if their home has been sitting on the market since the fall. Realtor.com reports that home prices tend to dip further in November and December as sellers aim to close deals before the year ends. If you plan to purchase during the holiday season, you may be able to secure a better price than you would have during the peak summer months.
What Buyer Should Do Now to Prepare
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Get Pre-Approved and Discuss Rate Lock Strategies
With mortgage rates expected to decline, it’s a good idea to explore rate-lock options with your lender. Some lenders offer programs that allow buyers to lock in a rate early and re-lock at a lower rate closer to closing if rates drop further. This is especially important if you plan to go under contract in mid-to-late December and close in early 2025, after possible Fed rate cuts take effect. This way, you can score a home at the best price and take advantage of any rate drops that occur early in the year. -
Work with a Local Realtor for the Best Deals
Navigating the Colorado Springs market requires local expertise. Colorado Springs real estate agents familiar with recent inventory trends and seller motivations can help you identify the best properties and secure favorable terms. Working with knowledgeable Colorado Springs Realtors can also give you an edge in negotiations, particularly during the quieter holiday season when motivated sellers are looking to close quickly. -
Set Up Market Alerts Now
Even though inventory is high, new listings tend to slow down after mid-November. To make sure you don’t miss a great deal, consider setting up alerts for homes for sale in Colorado Springs that match your criteria. This way, you’ll be notified immediately when a suitable property becomes available. Better yet, take a deep dive into our El Paso County market statistics and really leverage economic conditions.
Final Thoughts: A Unique Opportunity Awaits
While the holiday season isn’t traditionally considered the best time to buy a home, 2024 offers a unique set of circumstances that could make it a prime time to act. With inventory at 10-year highs and mortgage rates projected to decline, persistent buyers may find better-than-average deals in the Colorado Springs real estate market. Whether you’re looking for your dream home or a good investment property, staying flexible and working closely with your lender and realtor will be key to capitalizing on this window of opportunity.
If you’re ready to explore homes for sale in Colorado Springs, now is the time to act. Get in touch with Colorado Springs real estate agents today to begin your home search and prepare for potential savings this holiday season.
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