Is the Real Estate Market Headed for a Crash?
What's the Shift All About?
2021 was a record-breaking year for the U.S. housing market. We had record low interest rates and record high home sales. After a whirlwind two years of pandemic-induced selling and buying, we are starting to see the signs of a market cooldown here in the Denver Metro area.
One major factor in the potential cooldown is a rapid rise in interest rates. Hopeful homebuyers will have to navigate rising mortgage rates in the coming year. Significant interest rate hikes in 2022 will be a game-changer for our housing market. Many buyers are fatigued from the bidding wars we experienced at the beginning of 2022 so a market with longer days on market and less frenzy may be a welcome relief. But the rising interest rates will decrease their homebuying budgets.
What Numbers are We Watching?
Here are some interesting stats that I'll be watching (and sharing!) each week.
In the past 7 days (as of 6/21/22) across the 7 counties of the Denver Metro area:
- New Listings 1,202
- Price Decrease 1,170
- Pending 1,282
- Back on Market 258
- Closed 1,174
What does this mean?
Well, the price decrease number being almost equal to new listings and pendings is a sign we have a LOT of price adjustments happening. We are definitely shifting and this might be our new normal for awhile. It's important to price where the market is headed - not where it's been.
But don't worry - we are here to help see you through this shift. Below is a perfect graph that shows the rise of home prices over the past several months compared to prices of last year. We’re seeing some great buying opportunities starting to pop up now. The chart is Parker but I have this info for any of our areas. Just get in touch and let me know which county or city you'd like generated and I'll send you all sorts of good info! Or just click the image below to view the full version of the report, and don’t forget to subscribe.
You can see in the chart above that if we hadn't had the recent short period of rapid price appreciation spikes, the current (lower) prices would not be news-worthy.
Curious what your own city or county looks like? Just click here and instantly get your personalized chart that you can customize to your area of interest.