Is Our Market STILL Correcting Itself?
“Optimism is essential to achievement, and it is also the foundation of courage and true progress.” – Nicholas M. Butler.
The Great Rebalancing of our market has made this a more stable year. While the trends have been unnerving at times with rate fluctuations and the NAR’s changes after the settlement, the slower market along the Front Range has provided us with more inventory than we’ve seen in a decade. However, the higher sales prices, fear-based headlines, and other volatile events globally and nationally have fueled uncertainty among buyers and sellers.
It’s difficult to watch people sit on the sidelines who could qualify and achieve their real estate goals now (or soon). As RE/MAX Alliance agents, we are committed to educating our clients on the market and the mindset it takes to succeed.
Take Off The Rosie Glasses about “The Good Ole Days”
It’s easy to wistfully reflect on the 2020-2022 market with the “remember when” nostalgia. But remember, those historically low interest rates and record-breaking returns would have eventually made the Front Range market near-impossible for home buying. The extreme buying frenzy escalated prices, bidding wars, and significant appraisal headaches caused a 10+% price increase. On that trajectory, home prices would be at least another 10-15% higher on top of that! Home values that rival the major coastal cities like California would drastically change our communities, culture, and how we live. Instead, home prices have only grown in the single digits, providing more affordable opportunities.
Going Down Takes Longer Than Going Up
If you think of our market like a company, the Federal Reserve is “resizing.” The Federal Rate remaining high downshifted the housing market to a more normal pace. The government felt the economy had slowed down enough to start dropping rates.
Beyond the economic conditions, there are always other speed bumps rate cuts have to get through. Right now, the elections, global economies and events, and the holiday season are influencing affordability and buyers/sellers’ mentality.
So, the transition remains uncomfortable, but the opportunities to reach your real estate goals are possible. A more balanced market requires more understanding, adaptability, and skill. Sellers have to work a little more to receive an offer closer to their asking price (which is not a bad deal). Buyers have more options, time, and negotiating power to get into their desired home.
The Trade-off Is Worth It
No doubt buying and selling along the Front Range still has its challenges. But many clients who’ve adjusted their expectations, strategies, and plans have found opportunities to succeed. We remain one of the most attractive places to call home in the U.S.. The demand for homes isn’t going away. Even if you bought at the beginning of 2022 and lost some value, there is no doubt your home will be worth more in a few months or years.
Read: Our Market Isn’t Imploding: 2008 vs. 2024
But to succeed requires skill and experience. Your RE/MAX Alliance agent will expertly navigate you through the process. So when you see alarming news in the media, don’t hesitate to text, call, or email them your questions. Your RE/MAX Alliance agent is your best local, boots-on-the-ground, expert news source during these uncertain times.
Sources: reuters.com, coloradorealtors.com, federalreserve.gov, The Rueth Team with Movement Mortgage