Buyer's Market Near, But Not Quite Here

Dated: September 15 2022

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What a difference just a few months make. The shift is here, and it is moving fast. We are down almost 30% on sold listings year over year. And that statistic continues to show how the buyers have dropped out of the market when you add in the 102.9% increase in inventory. Just like last month, we are seeing a continuation of lower sold properties and higher inventory. At the beginning of the year we were all told that we had a shortage of inventory and too much demand. Fast forward to now, and we have inventory, but demand is gone.  Buyers have most of the power now, but are either patient, or not interested. Afterall, why would the be? Every day is a news cycle of bad economic news ranging from stocks, inflation, layoffs and housing data. In fact, Moody’s recently published the top 183 housing markets that will see a 20 percent drop in values.

 

The meat and potatoes of the economy are simple, make everything unaffordable and the consumer will stop buying. Terrible decisions by the FED to create trillions of dollars inflated everything from food, stocks, and housing.  Now the FED continues quantitative tightening and it’s putting a lot of pressure on many asset classes, which includes housing.  Colorado continues to be one of the States making news on being unaffordable and in a housing bubble and we are beginning to feel that as sellers either remove their homes from the market or price drop. Can’t do either, well then rent. As this occurs we are now seeing rents begin to soften. All of this occurred in a matter of months.

 

What to expect moving forward?  The national economy is getting worse. I believe we are at the beginning of what will be more months of declining home sales and price drops both in Colorado and Nationwide. Even if inventory stays where we are, lack of demand will put more pressure on sellers to adjust prices. What was once a hot sellers’ market for years has now shifted. Buyers are more in control but are not showing their hands. After years of double-digit appreciation, the time has come to see those prices pull back. My father once told me, a veteran REALTOR of 45 years,  that Colorado is a boom and bust State for real estate. My guess is, that the bust is coming.

Patrick Muldoon

2016 REALTOR OF THE YEAR

2021 ICON AGENT 

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Patrick Muldoon

I have many interests and hobbies to supplement my busy career in real estate. Although I enjoy my work I also enjoy finding free time to enjoy the most important things in life. This includes being w....

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