My 2023 real estate predictions are…
✨ By the end of the year, the interest rates will land somewhere in the mid 5% range. Potentially sitting around the mid 4%’s by 2024. Staying V hopeful and optimistic over here!
✨ Housing inventory will continue to be low.
✨ Home prices will drop, but only by a little. Colorado has always remained strong and has a history of being one of the best places to invest in real estate!
Interest rates: While we saw historically low-interest rates for all of 2020-2022, the sharp increase this past fall from 3% to over 7% was startling, to say the least. As the Feds worked diligently to curb inflation, we saw positive numbers, which helped lower the rates. Based on chatter in the industry, we expect to see them land in the mid 5% range.
Housing Inventory: While a balanced market is 6 months of inventory, even with the higher interest rates and the slowing of the market, we are still in a housing deficit. Meaning we still have very low levels of supply in the market. We are still sitting well below the market average. Though with the hit in interest rates, we see the homes on the market sit for a bit longer, and if not priced correctly, price reductions are prevalent. As the interest rates bounce back to a lower spot, I suspect we will still have a busy market.
Home Prices: We are seeing prices fall just ever so slightly. The past 2 years were absolute insanity, with some neighborhoods seeing close to 25% appreciation. I suspect we will be in the 3-5% range in most communities, which is the average appreciation growth.
If you’re in the market for a new home – look no further!