The Current Pueblo Housing Market

The Current Pueblo Housing Market

Pueblo is a town located south of Denver and just forty minutes from Colorado Springs. Located as a high-altitude desert, Pueblo gets some of the highest numbers of sunny days each year, with over 300 days of sunshine on average. At nearly 4,700 feet above sea level, Pueblo has warm days and cool nights, providing the perfect conditions for outdoor adventures that Colorado is famous for. Nearby Pueblo is the Lake Pueblo State Park, which is popular with residents for kayaking, paddle boarding, camping, and hiking. A short drive away is the famous Great Sand Dunes National Park which boasts epic dunes, winding hiking trails through thick forests, and gleaming marshlands teaming with wildlife.
 
Pueblo also has access to some of the best skiing in the world, just south of Denver. From the world-class apres ski scene at Vail Ski Resort to the diverse terrain at Breckenridge Ski Resort to the wild mountain terrain at Loveland Ski Area, there are plenty of winter activities for the entire family nearby.
 
Pueblo real estate is in high demand with such amazing weather, a great location, and plenty of outdoor magic. If you’re thinking of buying or selling a home in the Pueblo area, you might be wondering what the current market conditions are. Our guide will walk you through the biggest trends in the Pueblo housing market today.

Decreased sales

One of the main national trends is decreased real estate sales. According to the National Association of Realtors, home sales have declined from August 2021 to August 2022 by 19.9% nationwide. The trend continued into the fall as home sales declined an additional 0.4% from August to September.
 
According to the Colorado Association of Realtors, a division of the National Association of Realtors, sold listings of single-family homes were down 27.2% in Pueblo County as of September 2022 compared to September 2021. For sellers, this can mean needing patience when navigating the market. There may not be as many offers as quickly as we’ve seen in the past years, but there are still plenty of buyers. For buyers, a decrease in sales can mean increased inventory and more choices on the market. This is great for locations that were experiencing low inventory and thus high competition.

Steady property values

Despite a decrease in sales, property values are holding steady and continuing to increase, albeit at a slower rate than we have seen in previous years. According to the National Association of Realtors, the national median home price was $389,500 as of August 2022, which is up 7.7% compared to August 2021. Home prices were also up in the West specifically. As of August 2021, the median home price was $563,100 compared to August 2022, when the median home price was $602,900.
 
In Pueblo County, the median home sales price was up 1.7% from September 2021 to September 2022, from $295,000 to $300,000, according to the Colorado Association of Realtors. Thus although home sales are slowing, there is still an increase in selling prices that is favorable to sellers. For buyers, this is also a relief as home price increases are starting to slow from the rapid growth we’ve seen from 2020 to 2022.

Increased interest rates


Part of the slowdown seen in the real estate market currently is due to increased mortgage interest rates. During 2020, mortgage interest rates were at all-time lows, encouraging borrowing and leading to a hot real estate market that continues today. According to Freddie Mac, the interest rate for a 30-year  fixed-rate mortgage in December 2020 was 2.65%. However, in 2022, mortgage rates began to increase. As of January 2022, mortgage rates increased to 3.22% and again to 5% in April. As of the end of October 2022, mortgage interest rates were at 6.94%, one of the highest rates seen since prior to 2008.
 
According to a survey by the National Association of Realtors, 16% of home buyers in 2022 named financing options as the primary reason for buying a home. These buyers may be dissuaded from buying in the future as mortgage interest rates continue to increase. Many experts contribute the decrease in home sales to rising mortgage rates, as increased mortgage interest rates essentially make financing a home more expensive.

Inflation

Inflation has been a major factor driving the real estate market in 2022. According to the Bureau of Labor Statistics, the Consumer Price Index, which measures the cost of goods, increased by 0.4% from August to September 2022. Overall the Consumer Price Index increased for goods by 8.2% from September 2021 to September 2022. The results of inflation can be seen in multiple ways in the real estate market. First, the increase in inflation has prompted the Federal Reserve to increase mortgage interest rates, as described in the section above. This has decreased borrowing and thus cooled off the real estate market with decreased sales.
 
The increase in inflation has also increased the cost of living. This translates to being able to save less, and some people no longer being able to afford a down payment. This also has contributed to the decrease in home sales seen in the past year.

Your next steps

If you’re thinking of entering the Pueblo housing market as a buyer or a seller, you’re going to want to work with a great real estate agent. Real estate agents are trusted professionals that can help you navigate a changing market. In the Pueblo area, there’s no better real estate agent team than Team Gary Miller. The team has extensive experience in the Pueblo area and high-quality customer service that sets him apart from other agents. If you’re ready to step into the Pueblo housing market, Team Gary Miller is ready to help!





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