Real Estate Outlook for 2023

The new year has started off with inflation numbers coming down and a more stable mortgage and real estate market in the future.

The Metro Denver housing market has rebalanced itself.  Inventory is beginning to increase and prices, although still somewhat higher than a year ago, are holding steady.  In the current market, buyers and sellers are on more equal footing and the market is beginning to heat up from its winter lull. 

Many experts are predicting that rates have peaked or are near their peak and that we may see some movement downward into the mid to high 5%-low 6% range for a 30-year mortgage.  15-year mortgages tend to be a little less.  Adjustable Rate Mortgages, better known as ARMs are traditionally lower than 15 or 30-year mortgages and this may be an attractive option for some homebuyers. The positive jobs report that just came out and some inflation slowing has many predicting a soft economic landing and a positive influence on the housing market and interest rates.

Many first-time homebuyers are realizing that with the stabilizing market, now is the time to buy. We are headed into spring which is the traditional buying and selling market and competition will start to become an issue again.  They are also realizing that they are paying their landlord’s mortgage and not putting money back in their own investment.  Additionally, as these homebuyers make more money the tax benefits become more important.

We’ve also seen movement in the market because of families wanting more space and, on the other end of the spectrum, empty-nesters looking to downsize.  Homeowners who have owned for many years know that our current rates are historically low and they are feeling confident with the economy.

If you fit into any of these categories we can meet with you to discuss housing and mortgage options and how your housing investment and subsequent equity will build your long-term wealth.