Winter '23 / '24 Market Report
Bottom Line on Top: A good way to sum up real estate is that it remains unapologetically resilient.
Looking backward over 2023, Douglas, Elbert, and El Paso Horse Properties technically remained a seller’s market, but it felt more balanced. I started calling it schizophrenic… buyers seemed to be holding seller’s feet in the fire in terms of house prices and days on market. Perfectly lovely homes languished while others flew off the shelf in mini bidding battles. I’ve included other markets in Colorado (below) for comparison to the stronger Denver - Colorado Springs metro area.
Looking forward, rising inventory, lower mortgage rates, and economic stability are the factors that will see buyers and sellers return to the market. More inventory would ease the upward pressure on home prices. However, if mortgage rates drop too fast, demand is likely to surge, which would likely result in prices rebounding again.
From the January 2024 Luxury Home Marketing report
What about interest rates??
Buyers and sellers alike want to better understand interest rates. So, here goes, yes they have come down from the near 8% interest rates we saw last fall to just under 7% in early February 2024 (first graph below). That said, it still feels very high because we saw interest rates on average at 4% for over 10 years prior to this period (second graph below). However, when you look at this compared to rates since the 1980’s, you’ll get a very different perspective (third graph). Yes, I know the price of homes was far less in the 80’s than it is now, but I wanted to share how the availability bias is in play when people think about how they feel about interest rates.
And now the fine print: The above information has been researched from the Metro Denver MLS System (www.REcolorado.com) and the Certified Luxury Home Marketing Research Center by Penny Smith of eXp Realty, llc based in Larkspur, CO. It is believed to be accurate, but is NOT guaranteed. Every property will have unique factors affecting value such as location, condition, acreage, quality, size, age, upgrades and features. A thorough in-person assessment by an experienced real estate broker or licensed real estate appraiser is recommended to determine the actual current market value on an individual property. Give me a call, would love to look at your particular situation and help you make the best decision given your goals!