Happy Holidays Housing Market Insights from Allison Simson
Time to pull out the old crystal ball and see what’s ahead for the real estate market in Summit County, CO! I’ve been in the real estate game for over 25 years and have seen all kinds of “corrections” in the real estate market. Everything from slight slow-downs to the Great Recession. Change is definitely in the air now, but I believe that those who remember the adage “it’s time in the market, not timing the market” will come out on top!
The “real estate” sky is not falling! Yes, the market is stabilizing. It’s feeling the gravitational pull of normalizing after the past few years of jaw-dropping appreciation. The Fed also has been very heavy-handed in their changes this year. This is likely because they were under-prepared and had to over-correct the over-heated market. The interest rate fluctuations are disconcerting, not because they are so high… because the speed of the change was so radical. We went from 3% interest rates to over 7% in just 4 months! Economists agree that rates will settle and likely drop below 6% in 2023. We are past the peak of 7%.
If you are still dreaming of a second home to create long-lasting memories, the current economy does not have to crush those dreams! Don’t be fearful, and don’t overreact. Don’t wait for a “huge correction” because the vast majority of economists do not foresee that happening (especially for world-class ski resort towns!)
Buyers: You have opportunities!
- No more panic buying! You have a little more time to decide on a property (a few days or weeks, not months).
- You have more choices and most sellers are more negotiable. Some may still expect full price (and properties in a hot location will still get it) but there is a good chance you won’t be competing with 20 other offers!
- With interest rates in flux, there is no need for a 30-yr fixed mortgage. We’ve been saying “Buy and then Re-fi!”
Sellers: Inventory is still at an all-time low. This would normally drive prices up but buyers are being more patient.
- Even though you may have missed the peak of our pricing here in Summit County – don’t have FOMO! You’ve still outperformed the stock market AND if you want to sell in 2023, your sales price will likely have appreciated from early 2022 and certainly from our pre-Covid prices!
- The average list-to-sale ratio is back to a more normal number – right around 97% and pricing right is important.
- If you have been wanting to upsize, but were afraid you couldn’t find a replacement property, now you can.
As always, we are here to help you navigate the market and advise you on the best strategy to make your mountain property dreams come true.