Question: In 2011 what went up in Colorado Springs?

a) hot air balloons at the Balloon Glow during Labor Day weekend

b) Air Force Thunderbirds performing an AFA air show

c) home sales in the Pikes Peak region

d) all of the above

If you guessed (d) then you are correct!  That's right...2011 year-to-date home sales in our area surpassed total home sales in 2010 by 3.3%  I know it's a small climb, but at least we are headed in the right direction!

In 2011 we saw 8,459 single family home sales here.  Our average sales price dropped slightly by 4.9% this year.  BUT...here's the biggest change of all:  ACTIVE LISTINGS (meaning existing homes for sale) DROPPED BY 24% THIS YEAR.  Whoa!  Okay, let's summarize.

Sales are going up.  Inventory is going down.  Supply and demand are trading places.  What will that do the market this year?  Hmmm, I'm thinking prices are going to start going up again.  It will most likely be a gradual increase in price, and I'll bet the lower price ranges will see the most rapid improvement.  But I predict that 2012 will be an exciting year for real estate here!