Sometimes you just have to steal
Trying to explain the real estate market today is hard. On the one hand, sellers think it’s still the beginning of 2022 and buyers think it’s 2008. I might’ve stolen that idea but can’t remember from where!
But I know I stole the idea that the last three years have been real estate UNICORN years!
Unicorn: Something that is highly desirable but difficult or impossible to find.
Kudos to Keeping Current Matters for their idea that the last three years in the housing market have been extraordinary. “Unicorn-ish,” I dare say. But it was only “highly desirable” for sellers who could ask outrageous prices for their homes and get it from desperate buyers. In most areas in Colorado homes were appreciating at 1-2 % a month. Low interest rates spurred more people to buy, and first-time and second-time buyers were flooding Open Houses for EVERY. SINGLE. HOUSE.
That has ended.
Back to "Normal?"
We are now hanging out in pre-pandemic territory AKA "normal." Prices dipped a bit at the beginning of the year when financial pundits were screaming “10% interest rates!” or “massive recession” or even “housing market crash!” Now we hear the words, prices rising slowly, 3% inflation, soft landing, and even 6% interest rates by the end of the year.
In other words, excluding the "unicorn" years, we are looking at a market similar to the last 20 years.
Depending on your news source, you might see headlines like “foreclosures up” or “buyers not interested in buying.” None of that is true. Okay, yes, foreclosures are up but that’s because almost all foreclosures were in forbearance during the pandemic. So one foreclosure is more than zero, so I guess that’s up. And yes, buyers are interested but not in your overpriced, not-well-maintained 2-story with terrible curb appeal.
Homeownership & Wealth Building
I just heard a story on NPR on KUNC FM that some home builders are attracting clients with 6% mortgage rates and prices under $400K to attract first-time homebuyers! Of course, that doesn't apply to northern Colorado--yet. There is more new construction but their target is still the more affluent buyer.
If you've held off buying, maybe it's time for you to step out there again. Go to Open Houses, check in with your lender, look at new construction (but be sure to bring your Realtor!), be realistic about your wants vs. needs.
Homeownership is still one of the best ways to create wealth. Just ask any northern CO homeowner.
Comentários