Quite an interesting month for home sales in Pueblo County. Prices year over year are 3.0% higher than a year before. This figure represents a drop in value from the median price of $340,000 from May of this year. That represents a 10% drop in prices in the past six months.
The decrease in median home prices can be directly related to the 1% rise in interest rates that the Federal Reserve issued in June and subsequent rate increases since then. Our office has noticed a marked decrease in the number of showing of the properties that we have listed since then.
Months of inventory is up 50%, but still relatively low at an absorption rate of 2.7. This basically means that if no other homes came on the market for sale all currently listed homes for sale would be sold in 3 months. A normal market where neither buyer or seller are at an advantage is six months. It sure doesn’t feel that way at the current moment, since we have almost twice as many homes for sale currently than we did a year ago. What this translates to is that there are less buyers in the market at this time.
The past 6 months and the downturn of values.
From May of this year 2022 the median price of homes has declined, the days on market have gone up from 45 days to 60 days and homes are lingering on the market much longer and are experiencing a drop in value as the number of homes being sold are 18% lower than just six months ago.
Interest rates are slightly lower than they were just 30 days ago, but home affordability is still at an all time low.