WILL COLORADO EXPERIENCE A SUMMER COOL DOWN TO ITS HOT REAL ESTATE MARKET?

LET’S ALL AGREE, SELLERS HAVE GOTTEN EVERYTHING AND BUYERS HAVE GIVEN EVERYTHING IN THE PAST TWO YEARS.

MANY BUYERS ARE ASKING AS WE HEAD INTO THE HOT SUMMER MONTHS, WILL THEIR BE A COOLING OFF PERIOD?

PREDICTIONS ARE HOMES WILL STILL CONTINUE TO GAIN VALUE AT A RATE OF 11.5% (SLOWER THAN A YEAR EARLIER WHEN HOMEOWNERS SAW HOMES PRICES JUMP UP 22.9 PERCENT IN THE SECOND QUARTER OF 2021.

REDFIN’s CHIEF ECONOMIST SAYS THAT “DESPITE SIGNS OF THE HOUSING MARKET COOLING, PRICES WILL STAY HIGH.”

WHILE IT IS STILL A SELLERS MARKET IN COLORADO AND MUCH OF THE U.S., BUYERS MAY BEGIN TO GET SOME RELIEF FROM THE SIZZLING HOT REAL ESTATE MARKET.

SOME PRICE-POINTS ARE STARTING TO SEE SLOWER TRAFFIC AT OPEN HOUSES, HOMES STAYING ON THE MARKET A BIT LONGER AND NOT AS MANY OFFERS. A HOME THAT WOULD HAVE SOLD FOR 20% OVER THE LIST PRICE BACK IN FEBRUARY, IS NOW ONLY GETTING 5-8% OVER THE ASKING PRICE.

THIS MAY BE DUE TO BUYER FATIGUE FROM FIRST-TIME HOME BUYERS WHO WERE PRICED OUT OF THE MARKET IN EARLY MAY WHEN THE WAVE OF INTEREST RATE HIKES HIT.  AS WELL AS, INVESTORS AND SECOND HOME BUYERS WHO WERE SLAMMED WITH EXTRA FEES BACK IN APRIL.

EXPERTS ARE PREDICTING THE HOT REAL ESTATE MARKET MAY BE COOLING A BIT FROM THE EARLY TO MID SPRING CRAZE AS THE MARKET BEGINS TO ADJUST FOR ALL THESE VARIABLES. THIS MEANS FOR COLORADANS WHO ENTER THE BUSY SUMMER BUYING AND SELLING SEASON, KEEPING CLOSE TRACK OF THE SUMMER MARKET TRENDS WILL HELP WITH MANAGING EXPECTATIONS IN ORDER TO CURB DISAPPOINTMENT WHILE STILL FINDING YOUR DREAM HOME.

FOR MORE NEWS AND INSIGHTS ON COLORADO’S REAL ESTATE MARKET, VISIT COLORADOHOMEINSIDER.COM