HOW IS THE MARKET?
We are finally past the elections, so everyone will be more free to think about the real estate market as they slow down for Christmas and look into next year. The market is a little slow, as is typical this time of year, but there are signs of stability that will hopefully be good for those planning a move in the coming months.
We all wish that interest rates would come back down to where they were a couple of years ago, but those rates were artificially suppressed and too good to stay true. The last year year or more has seen lots of rate volatility, but even more volatility in projections of which way they are heading, and that uncertainty has kept lots of would-be-buyers on the sidelines. Now most projections show rats hovering in the mid-to-high 6% range over the next year or so, with possibly a slight downward trend toward the lower 6% range. They will continue to make small adjustments up and down as they always have, but hopefully the market will begin to understand that this is our new normal, and everyone will be able to continue with their lives and plans, which often involve wanting or needing to move from one place to another.
As you can see, the months of inventory in our current market seem to be stabilizing a bit as well, after trending up in the early part of the year. They are currently in a pretty balanced place and look like they are likely to stay there. This means that buyers have homes to choose from, and sellers can find buyers when they are priced realistically, and neither group has a huge advantage. After the sellers market of a few years ago (buyers had few choices and had to do crazy things to get homes they wanted), a balanced market should be good for everyone. Home prices will continue to rise, but at moderate rates. People who want to move will be able to do so. These numbers also really vary from one neighborhood to another, so your unique situation might differ from these trends.
WHAT DOES THIS MEAN FOR BUYERS AND SELLERS?
BUYERS - This is a good time to be buying. For the first time in years, there are a good number of homes for you to choose from. Let’s make sure you’re solidly pre-approved with a great lender, and we’ll be able to find you good homes in your realistic budget.
SELLERS - As always, the best time to sell is when you need to sell to move where you want or need to move. You’ll have to be realistic, and having qualified help with marketing, negotiating, and troubleshooting will be key, but you’ll be able to sell to get to where you want to be.
If you’d like to know how these market conditions affect your individual situation, whether you’re thinking about buying, selling, or both, please give me a call. I would love to do a detailed analysis for you and help you craft a plan to get from where you are to where you want to be, in the timing that works for you!
Here is a look at how many months of inventory we currently have in the Colorado Springs area, by price range.
And, here is a look at how the months of inventory, across all price ranges, compares with recent months.
Here is a snapshot of interest rates at the end of November.
And a look at how those rates compare with recent years and months.
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