I get asked this question all the time. So here is my take on the current state of the Real Estate Market.
Home Prices are still outrageosly high. The truth is with the lower inventory, It is going to take sometime before Coloradans see prices fall back to a more affordable price. We seem to be in an overall leveling out mode.
Foreclosures are on the rise, and the big investors seem to have backed off a bit. This combined with lay-offs, we could start to see more homes become available, and also more short sales, and foreclosures. The banks do not have the same emotional ties with the home, so they will be more aggressive with price. Thus we could start to see resale home prices shift down.
I don’t see the market being sustainable with the higher interest rates, AND the current home prices.
I do think something will shift by Fall, whether it be lower interest rates or lower prices.
If you are selling your home , it is still very much a sellers market, however you will likely be giving up your lower interest rate. That is a good situation if you are moving out of state, where home price averages are lower, and maybe you have enough equity to purchase without a loan.
For the buyers, I feel your pain. I see the prices of home in Colorado every single day, I am stunned as well! When I ask sellers how much would they pay for their current home today? They usually get quiet. The truth is as a Realtor and a consumer, I can’t justify paying some of these crazy prices. I felt the same way in 2000, when I came home after traveling to 3 different states with my husbands job for 10 years, when we returned home prices had double!
As always all the best to you and yours, and if I can answer any questions or help in any way, please reach out,
Sincerely,
Lori Walter
