“What do you think the market will do this spring?”
I’m asked that every day. The only thing I can do is to point out the facts.
Inventory is down. Prices are up. And the supply of homes has dropped to one month and three days. Just as a reference, in 2010, the supply of homes on the market was six months which is a balanced market–sellers and buyers have equal standing. When you have our market, houses go quickly. People keep telling me it’s gonna change—that it must.
No, it doesn’t
At least for now. You could wait two-three years and hope that the market slows down as interest rates rise and we can’t squeeze any more people on to I-25. But the prices will have climbed again and again. That may stop but, realistically, who thinks they’re going to plummet?
Home prices have increased steadily since 2010 and it isn’t stopping. Inventory is still down, even lower than last year in almost all towns in northern Colorado. And people keep coming, increasing the competition for the houses on the market.
“There is no let-up to rising home prices,” said Lawrence Yun, chief economist of the National Association of REALTORS® (NAR), in a statement. “The Case-Shiller Index and National Association of REALTORS® median home price both show gains of roughly double the average wage growth. Even as the tightening job market is starting to boost incomes, those looking to buy are facing a double whammy of fast-rising home prices and higher mortgage rates.” No Let-Up In Home Prices
Is New Construction for You?
There is an option—new construction. New construction is still at half what it was in 2008 but builders are working hard to close that gap. If you decide that a new home is your next step, be sure to tell the onsite agent that you have a Realtor. We save you aggravation and misunderstandings that can’t be undone. The sales people work for the developer, not you.
Yes, this will grind to a halt one day and it prices may even dip 2-3% but prognosticators say we got some ways to go before that happens. If you think northern Colorado might be your home for a while or you want to sell that huge family home and buy yourself a patio home with some amenities, what are you waiting for?