Housing Market March 2022 to March 2023
While prices came down three percent from the same period last year, it is not a sign prices are coming down across the board. March 2022 saw some of the most aggressive sales and price increases in memory. Last year in March, prices were up over seventeen percent from the previous year. Current numbers show the market is still healthy, but home prices are not rising as rapidly.
Even though the days on market are up over three-hundred percent, forty-five days on market is balanced. It continues to be a strong Seller’s market. Lack of inventory and the number of people who want to move shows no sign of letting up.
Many Sellers hesitated to list their homes, waiting to see what the market was going to do. New listings were down from the same period last year by almost twenty percent. The number of houses sold was down twenty percent, so nothing is too out of sync to cause shock or alarm in the housing market.
Housing affordability is being affected by rising interest rates. It appears Buyers are wrapping their brains around the fact that these interest rates are going to be around for a while. We got spoiled with three percent rates, but the “normal” rate is around seven percent.
Many people hesitated to buy, hoping prices would come down drastically after the surge of prices over the last few years. That does not appear to be on the horizon soon. Most surveys show home prices have bottomed out and are on the rise again.
Housing Market Changes February to March 2023
In February 2023, there were 870 new listings in El Paso County. In March, there were 1,287 new listings. This was an increase of forty-eight percent, but completely normal this time of year as we approach springtime in the Rockies.
Between February and March of this year, prices increased four percent. The month’s supply of inventory went down from 1.5 months to 1.2 months. Simplistically what this means is, if we listed no other homes, it would take 1.2 months to sell all the houses currently on the market. A Seller’s Market is when there is less than five months of inventory.
There are not as many listings coming on the market as there usually are during this time of year. The amount of competition may surprise Buyers as inventory is still low and the housing coffers are not being refilled quickly.
Housing Market Predictions Late Spring 2023
Many people are citing the rise of foreclosures as a cause for panic. The number of foreclosures has been at record lows for the last few years. Several factors played into that.
During 2020 and 2021, there was a national forbearance program on foreclosures as millions of homeowners were forced to stay home. While foreclosures came to a halt, home prices rose rapidly, giving owners a huge amount of equity. Unlike 2008 when people owed more than their home was worth, people could now sell at a profit.
If the national shutdown prevented people from getting back on their feet, it was often unnecessary to sign homes back to the banks. Many owners could now sell at a profit and not only pay off their mortgage on which they had fallen into arrears, but also could walk away with much-needed cash.
When the moratorium ended, we expected there would be a rise in foreclosures. That is certainly not an indication the housing market is in trouble. It’s merely a gentle correction taking place.
There is no question the housing market slowed down during the winter months as people took a deep breath and waited to see what was on the horizon. But prices are not crashing, and interest rates are fluctuating at what will be a new norm for a while. We are continually seeing signs of improvement.
Is Now a Good Time to Move?
The best advice I can give you is: if you find a house you love and can afford, DO NOT WAIT. If interest rates should come down this year, you can refinance. Home prices are unlikely to crash, so the longer you wait, the more it will cost you.
It’s a great time to sell while inventory is still quite low. And if you’re a Buyer, I have seen no sign from experts to show you should wait to purchase a home. If the time is right for you to sell or buy a home, contact an experienced real estate agent and find the confidence to move forward with your plans.