Which Way Is Housing Going?

Dated: February 21 2023

Views: 138

Are we picking up, stabilizing, or a pause to more declines? Let’s dig into the data and see what we think. We will also hit some national news to try to figure out a trajectory. The Pikes Peak region saw no change in pricing for median sales price year over year. A stark contrast to last year when the market was red hot, and every month prices of homes headed north. The easing of the market can be attributed higher interest rates which have led to a 108 percent increase in listings which has increased the days on market 264% for single family homes and 117% for townhomes. As Spring begins will we see more inventories hit as sellers realize the market of last year is not coming back? That seems to be likely.


Nationally we are hearing about layoffs in the high tech, banking and financial worlds. The retail industry had a terrible fourth quarter. But then the jobs report for January hit at 517k jobs added and lowered the unemployment rate. The mixed reports are hard to figure out, and many have called the latest jobs report inaccurate. Between high inflation, gas prices starting to move back up, and the constant talk about recessions, buyers are simply disengaged.

Most of the data shows we are far worse off as an economy goes than many would like to admit. Car delinquencies rose to levels not seen since 2009. Consumer credit debt hit an all-time high and Americans savings accounts are being depleted trying to keep up. Builder sentiment did rise in January, and that was the first time in a year, thanks to some reprieve on interest rates. But that could be dashed if rates rise again. And the NAHB did forecast a decline for single-family starts in 2023 and KB homes saw a 68% cancellation rate in Q4. Even during the 2008 crisis, that number was only 47%.


As we progress into 2023, we have a lot of mixed messaging going on, but my gut tells me the end of the year is going to be hard on the economy and housing is a lagging indicator. So, while many remain bullish, I lean bearish. The constant headlines of more layoffs, manufacturing declining, freight not being moved, new builds slowing down just tend to lead more softening in the real estate market. And while many feel that this is the bottom, past recessions have shown us that it takes years to find that point. 2006 was our last peak and we bottomed out in 2011. So, is this the bottom, or just the beginning of a long path there? Only time will tell. 

Blog author image

Mindy Sanders Client Care Specialist

I am Mindy Sanders, YOUR Client Care Representative with Muldoon Associates, Inc. After being in the industry for over 15 years as a REALTOR, I wanted to be able to help other REALTORs at my company. ....

Latest Blog Posts

Will Fall Bring Housing Changes?

 “The housing market along the Pikes Peak region continues to create frustration for many buyers and sellers. Despite having active listings fall 14% year over year for all properties, we

Read More

Hard To Know Which Way Things Are Going

“One of the strangest markets I have seen in a long time, maybe ever. And that is because there is not a one size fits all going on right now. While we are 1.8% off our top median prices,

Read More

Regional and National Housing Update

For the buyer waiting for prices to drop, it is going to take a little more patience in the Pikes Peak Region. Although overall sales ended up down 23.1% across all properties, we were only down 1%

Read More

Prices Are Down, and Units Sold Too.

COLORADO SPRINGS“What should have been a busy May just wasn’t. So now, what’s in store for the remainder of the year? Our total units sold remained significantly off last

Read More