Colorado Springs-area home sales slipped in May for the third straight month, the Pikes Peak Association of Realtors reports.
But it's the tight supply of homes being listed, not a softer market, that's to blame for the decline in sales, said Rick Van Wieren, a real estate agent with Re/Max Properties in Colorado Springs.
Inventory continues to be at exceptionally low levels, amid a frenzied demand for housing, which drove prices last month to another round of record highs, Realtors Association statistics show.
Record-high median and average prices in Colorado Springs are one outcome.
"If we had more inventory, I know my buyers would be under contract and we'd have even more sales," Van Wieren said. "And if I've got buyers, I know that the other 3,500 agents out there, or whatever, do, too. The fact is when you compete for a house, and there's six offers, five people didn't get a house that were ready to buy one."
According to May's Realtors Association report:
- Local home sales totaled 1,568, a 3.9 percent drop from the same month last year. Year-over-year sales also dipped 1.8 percent in April and 1.3 percent in March. About 9-in-10 homes sold last month were in El Paso County, with the rest scattered around the Front Range.
- Despite the recent declines, sales for the first five months totaled 5,967, a 1.2 percent increase over the same period in 2017. Last year's total of 16,337 sales set a record high.
- Homes spent an average of 22 days on the market in May before selling, A year ago, homes sold after averaging 30 days on the market.
- The median price - or mid-point - of homes sold in May jumped to $317,250, up 13.3 percent on a year-over-year basis. Last month's price eclipsed the record of $305,000 set in April. May's average price of $355,927 climbed 11.2 percent over the same month last year and surpassed the record of $348,527, also set in April.
- Homes for sale totaled 1,885 in May, up 1.4 percent over the same month last year. It was the first year-over-year increase in monthly inventory in nearly four years. Still, May inventories typically exceed 3,000 homes, based on Realtors Association reports.
The tight supply of homes for sale probably will discourage some buyers, who also might be priced out of the market as costs soar and interest rates rise, Van Wieren said.
Even so, he doesn't expect a significant downturn in buying and selling. And while inventories might continue to inch up, Van Wieren said he's unsure if enough homes will be listed for sale to even out the imbalance in supply and demand.
"We'll see more listings," Van Wieren said. "Whether they stay on the market for any period of time, I can't say."
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