Brokers Guild Real Estate

Hana Brown

logo
  • Instagram
  • LinkedIn
  • Twitter
  • Home
  • Property Search
    • Advanced Search
    • Map Search
    • Featured Properties
    • Dream Home Form
    • Get Property Alerts
  • Neighborhoods
    • Greenwood Village
    • Centennial
    • Englewood
    • Littleton
  • Schools
  • Relocation
    • Relocation to Denver
    • Schools Information
    • Colorado Schools
    • Fun Facts Denver
    • Colorado Fall Trips
  • Buyers
    • Buy a Home
    • Tips for Buyers
    • List Of Home Inspectors
    • Schools Information
    • Finance
  • Sellers
    • What’s My Home Worth?
    • Relocation to Denver
  • Blog
  • About
    • Meet Hana
    • Reviews
  • Contact

Will the Colorado Housing Market Crash in 2023?

February 14, 2023 By Hana Brown

Will the Colorado Housing Market Crash in 2023?

The Colorado housing market is amid a major shift. The median sale price was down by 1.8% in February 2023 Y-O-Y, but the number of homes sold dropped 42.1%. As mortgage rates are at record highs in 20 years by 7.08%. Sellers are reducing prices as homes stay on the market longer. Buyers finally have some market power.

Now that the housing market Colorado is threatened by a similar instance of rising mortgage rates and the possibility of a recession, buyers and homeowners are asking a familiar question: When will the housing market crash in Colorado?

Economists believe the housing market will slow down but not crash soon.

Prices will fall, but not to the extent homeowners experienced during the Great Recession.

 

5 Reasons Why the Housing Market is Unlikely to Crash in 2023:

1. Low Inventory

As per August 2022 data, only a 3.2-month supply is available in the inventory. This ongoing scarcity of inventory explains why many buyers are still forced to bid up prices. Also, the supply-demand curve indicates that prices won’t crash shortly.

2. Lack of Newly Constructed Housing Supply

The supply of newly constructed houses has yet to return to pre-2007 levels. Also, there’s no way that they buy land, get regulatory approval, and increase the supply quickly.

3. Several New Buyers

There’s a strong demand for homes across various demographics. Millennials and Hispanics are in their prime buying years.

As a result, leaving no other option than low inventory.

4. Strict Lending Standards

Back in 2007, multiple cases of “liar loans” exist – no thorough credit checks, inflated values with none or minimal downpayment.

Lenders today place high standards on borrowers, and most who get mortgages have excellent credit.

5. Drop in foreclosures

A majority of homeowners own significant equity in their homes. The personal balance sheets of homeowners are much stronger today than they were 15 years ago, which is a clear difference between now and then.

As a result, there is no current threat of a foreclosure crisis.

 


Credit to HOUZEO BLOG and NAR data research 2/13/2023.

Filed Under: Housing Market Outlook

Recent Posts

  • Metro Denver Stats January 2023
  • Will the Colorado Housing Market Crash in 2023?
  • December 2021 Market statistics
  • Winterize Your Home
  • Market Statistics – February 2021
  • 4 Crucial Questions To Ask Your Partner Before Buying a House Together
  • January 2021 Market Statistics
  • Outdoor Kitchens – Design Tips for 2021
  • 2020 Year-End Summary
  • HOT November 2020 – Housing Market Stats

Archives

  • February 2023 (2)
  • January 2022 (1)
  • November 2021 (1)
  • March 2021 (2)
  • February 2021 (1)
  • January 2021 (2)
  • December 2020 (1)
  • June 2020 (1)
  • January 2018 (2)
  • February 2017 (1)
  • September 2016 (2)
  • June 2016 (1)
  • March 2016 (2)
  • February 2016 (2)
  • November 2015 (1)
  • January 2015 (1)
  • October 2014 (1)
  • January 2014 (1)
  • November 2013 (1)
  • October 2013 (1)
  • September 2013 (1)
  • August 2013 (2)
  • December 2012 (1)
  • November 2012 (1)

Categories

  • C470 Expansion
  • Commuting to Work
  • Greenwood Village
  • Home Maintenance Tips
  • Homes for Sale
  • Housing Market Outlook
  • Neighborhoods News
  • Stats
  • Trends and Design
  • Trips in Colorado
  • Uncategorized
- - , - PH:
{{{disclaimer_txt}}}
Listing Data last updated: 24th March, 2023 02:00 MST
Equal Housing Opportunity
Privacy Policy
Service by Buying Buddy® IDX CRM
Copyright © 2003 - 2023 Buying Buddy. All rights reserved.
Equal Housing
Blue Fire Group    Real Estate Websites
© 2023 Copyright
LAC
Buying Buddy    Powered By Buying Buddy ®