I believe we are starting to see the correction that has been way overdue in our market. More homes are starting to come to the market, and I believe we have reached the Peak in pricing. Let’s look at the facts.
Colorado has had home price increases in the double digits for the past 2-3 years in most Counties. However personal income increases are still in the single digits (for most of us!)
Inflation is at an all time high, gas prices, and grocery bills have increased significantly in the past few months.
Interest rates have gone up significantly this year, which has a great impact on the buyers monthly payment. For example on a $600K loan with 10% down , the difference between 2.8% interest rate and 5.5% is $848 more per month!
Covid and government intervention, kept delinquent renters and homeowners in their residence.
Although inventory remains the big issue, we are starting to see more homes coming up for sale. We are not seeing as many showings, competitive offers, and offers well over asking price.
Some buyers have simply quit looking, because they no longer qualify. Some are waiting for price decreases. Everyone has an opinion on the market!
The majority of my sellers this past year, have decided to cash in on their equity, and move to other states where the prices have also gone up, but where you can still by more home for your money.
I believe most homeowners will continue to stay in their homes with the lower interest rates, rather than move, however there are always circumstances that will cause a necessary move.
If you are in default, facing foreclosure, and have equity in your home, it’s a much better option to sell your home, then let the bank take your home from you!
I know there are a lot of concerns for folks today, and we have all been impacted by rising prices on almost everything.
Change can be difficult, but it can also bring new opportunities. If you want to discuss the market further, and explore all of your options, please contact your local real estate expert, your accountant, your attorney, and your lender. The more informed you are about the market, the better decisions you can make.
As always, I wish you all the Best!
Lori Walter Broker/Owner of Walter Realty
