Housing Market May 2022 to May 2023
There is no question the housing market was at an all-time high during May of 2021 and 2022. Being called “the unicorn market” because of its rarity (or non-existence), it’s hard to compare today’s more normal market to the last few years. According to Keeping Current Matters, another way to say it is: “Something that is greatly desired but difficult or impossible to find.”
Home prices fluctuated slightly downward, but no major changes as predicted by the doomsayers that the real estate sky was going to fall. Year over year, with May of 2022 still being in the unicorn market, we were only down two percent in our average sales price in Colorado Springs. Home prices, on average, were still selling at full asking price. That was only a slight decrease from last year when offers were about three percent more than asking price.
The Federal Reserve has raised the federal funds rate ten times in the past year. The rates (5% – 5.25%) are the highest rates since September 2007 for borrowing costs.
Housing Market April to May 2023
Between April and May of 2023, sales were brisk. Up eighteen percent month over month, we headed into the summer with strong sales. The number of listings increased almost eleven percent, and we had a month and a half of inventory.
We continue to see an impressive Seller’s Market with no signs of that slowing in the near future. Because of a lack of inventory and the number of buyers looking for reasonably priced homes, we are often still seeing multiple offer situations.
In addition to other obstacles, cash buyers still make up almost twenty percent of the buying public, making it more difficult for first-time buyers to enter the housing market.
Housing Market Predictions Summer 2023
If you’re thinking of purchasing a home or refinancing your current one, should you be concerned with the rising interest rates? If it’s your time to buy, don’t let the rates stop you. You will hear a lot of doom and gloom about the real estate market, but that will be from people comparing it to the past two unicorn years.
There are too many options to work within the framework of current loans. Some might include a current purchase and a refinance when rates come down. I always caution my clients, though, that we will probably not see the touted three-percent rates again in a normal market in the foreseeable future.
Some lending options might be HELOCS, ARMs, hybrid ARMs, and a fixed rate buy down. Don’t let the frightening tactics of the naysayers hold you back from making a move or getting equity from your home. Check with your lender to see which options might be best for you.
As we head deeper into the summer housing market in Colorado Springs, we see a seasonal rise in showings but historically low inventory. However, showings are down and there are not as many buyers. Many are looking for foreclosures, but those will not have much of an impact on our local market for quite some time as too many homeowners have too much equity in their homes.
If you’re thinking this summer might be your time to make a move, call a seasoned professional and let’s talk about your best real estate options.