Amy Jewett Sampson

Colorado Home Insider Podcast

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.

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

Is the Real Estate Market Balancing Out?

Hot Real Estate Market: Summer Cooling?

Colorado Affordable Housing Program

Foreclosure vs. Bidding Wars

New Fees on Second Homes