Median List Price

We area big fans of Median List price, we feel like it’s the best indicator we have as far as overall market health and optimism. Having said that I would normally be very concerned with the orange, 90-day downward death spiral line we see in the accompanying chart.

At this point we are reserving our alarm and here’s why. First of all, the Fourth Quarter is generally the slowest time of year here in the “Pikes Peak” region. As a very seasoned Realtor once told me “No one wants to move their Christmas Tree”.

Secondly, the federal stimulus incentives we saw early in the year essentially borrowed from the future pool of buyers to stop the bleeding. Those were buyers that might have bought in the fourth quarter, so we are paying that debt off now.

The third factor would be jobs. Until we see more optimism around the idea of job opportunities being more abundant, homebuyers will tend to stay on the sidelines and whenever there are fewer buyers, Median List price falls.

We don’t feel like we will have a strong sense of how our market truly is until the end of the second quarter. At that point we will have been through the front end of a “normal” busy cycle with no artificial stimulus. So, if you follow the Colorado Springs Real Estate market, check back regularly, we will be monitoring and sharing.