Local Pueblo County Median Home Prices up 10.2% from a year ago

The median selling price in January 2024 for single family homes was $325,000. Last month, December 2023 the median selling price was $315,500, representing a 3% increase from just last month but a full 10.2% from this time last year.

The absorption rate is staying steady

The real estate industry uses a statistic to gauge whether we are in a seller’s market or buyers’ market, commonly rereferred to as Absorption Rate. It is calculated by taking the total number of active listings in the market for the previous month and is divided by the total number of sales from the previous month. In a traditional balanced market that number would be six. Meaning if no other homes came on the market and everyone that is going to buy purchases a home, there would be no more homes for sale in six months. In January compared to last year that number has risen by 17.2% meaning in the traditional sense it’s still a sellers market. In comparison at the end of December 2023 that figure stood at 3.2. So we are relatively balanced from the previous month, but the overall market is telling us that during this past year the number of homes is staying steady in relation to the number of buyers in the market at any given time.

Mortgage rates decrease in January

Mortgage rates decreased in the month of January to average around 6.63% with the low at 5.75%. At the Federal Reserve meeting Jan 30 and 31, the Federal Open Market Committee held interest rates steady at a rate of 5.25% to 5.5%. Citing inflation and the job markets showing volatility the Fed decided now would not be the time to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.