What lies ahead for homebuyers and sellers in 2023? While the pandemic-induced surge may have subsided, it is crucial to recognize that the housing market is not on the verge of a crash. Colorado, like other highly desirable areas in recent years, witnessed a significant surge in home prices, resembling the trajectory of a rocket. However, such exponential growth is not sustainable, particularly with the current higher mortgage rates compared to 2021 and the first half of 2022. Although prices may experience a slight dip from current levels, they are unlikely to plummet, primarily due to the persistently low housing inventory in Colorado. Also, if you are looking to buy or sell a home in Colorado, consider Mark Eibner as your agent.
2023 Real Estate Predictions
In 2023, buyers who have the means to afford mortgage rates or pay in cash have a favorable position of leverage. It is an opportune time to consider making offers below the asking price and negotiating concessions from sellers, such as requesting assistance with closing costs. By utilizing this leverage, buyers can explore potential opportunities to secure more advantageous terms in their home purchase transactions.
If you’re a seller who is prepared to make a move, it’s crucial to assess the local market conditions. For instance, in Adams and Arapahoe Counties, sellers encountered an excess of inventory at the start of the year, resulting in a 5 percent decrease in prices. Conversely, in Larimer County, competition remained intense, with open houses drawing significant crowds of potential buyers. Collaborating closely with your real estate agent will provide you with insights into the specific dynamics unfolding in your neighborhood, rather than relying solely on the broader state-level trends. Understanding the local market will enable you to make informed decisions throughout the selling process.