Our five main predictions for the housing market in the coming year.
This is an exciting time in northern Colorado real estate. We’ve been on a crazy ride since interest rates spiked in the middle of 2022, but we’re finally starting to see some relief. Here are our predictions for the housing market in 2023:
1. Interest rates will come down. All signs are pointing to inflation cooling. Therefore, we should see mortgage interest rates start to come down slowly through 2023. Some experts are even predicting we might be back to having interest rates around 5% by the end of the year if we’re lucky.
2. Property values will increase. The reason for that is simply supply and demand.
3. The supply of homes will remain very low. Many homeowners were able to lock up an interest rate of 2% or 3% a few years ago, so most will stay in that home as long as rates remain higher.
Prices should remain stable due to low supply and high demand.
4. Demand will stay high. We are still one of the most in-demand regions in the country and that has not changed, nor will it change in 2023. Therefore, demand will remain high but supply will be low, which keeps upward pressure on prices.
5. Rents will increase at a modest pace. Higher rates have driven some would-be homeowners into renting. As a result, there are still quite a few people competing for a smaller pool of rentals, so rental rates should stay up.
We are looking forward to another great year in real estate. If you have any questions, don’t hesitate to call or email us. We are always willing to help!
Chris Mullenberg Market Update Tags: 2023, Northern CO, real estate market