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Buyers are finally breathing a sigh of relief. Just three short months ago I was talking about the new normal of buyers waiving all rights to appraisals and inspections. Today, many believe the housing correction has started. Real estate is local so some areas of the country may see the shift sooner than others.
Here in Colorado, we are beginning to see the shift in sellers calling all the shots to now offering to pay closing costs or do repairs which just a few weeks ago, they would have “sold as is” and gotten thousands over asking.
Active listings and days on market are good measurements of the balance between supply and demand in the housing market. When inventory and DOM are low, it’s a seller’s market, and prices generally rise. When inventory and DOM rise, buyers gain power, and prices flatten or decline.
Nationally, those markets where active listings and days on market are near what they were back in 2018-2019 are at the greatest risk of a correction. Some in the industry predict that there may be a chance that prices flatten or even go modestly negative for a period in late 2022 or 2023.
Economists report that the median home price for the week ending July 3 was still up about 12.5% year-over-year. Now, that’s down from 2021’s summer peak when appreciation rates were around 20%, but this level of growth is still very high.
Statistical reports show Days on Market in Colorado as of mid-July are up 36% and Active Listings are up 58% year over year. If you are active in the market to buy or sell a home in Colorado, you have noticed this shift.
To stay up on the latest trends and insights in today’s real estate market, visit Colorado Home Insider.com.
