Colorado Housing Market Predictions  What's the 2023 Forecast?

The housing market in Colorado has been on a roller coaster ride for the past few years. With home values increasing rapidly in certain areas and then dropping just as quickly over the last few months, it can be hard to know what to expect in the future. But one thing is certain—the Colorado housing market will continue to evolve. So, what can we expect from the Colorado housing market by 2023? Let’s take a look at some of the most likely scenarios. 

Price Increase Predictions 
Experts predict that home prices in Colorado, specifically Denver as a more micro market, will continue to increase over the next few years after a few more months of stagnation and gradual decline come to an end, reaching an average of around $535,000 by 2023, compared to $575,000 in October. While the last few months have seen a decline in prices due to an increase in interest rates, and lack of demand, the forecast is still remaining positive for the following year. There may be some stagnation in the market, which will balance it to pre-covid characteristics, however, it is expected to recoup the 10-20% adjustment over the last few months. This means, if you buy now, you can expect to recoup the lost equity of the person you purchase from. In addition, with interest rates high, and demand low, you can purchase the house you want without excessive competition, and get the long-term home you want while enduring high rates for the short term. As rates fall, you can refinance and capitalize on lower payments, drop PMI as equity grows, and be settled into the home of your dreams for less money than expected. 

Affordability Challenges 
Unfortunately, with rising prices also comes greater affordability challenges for many potential buyers—especially first-time homebuyers. This is because rising prices can push potential purchasers out of their desired price range or force them into taking out larger loans than they had originally planned for. To combat this issue, more lenders are offering loan programs specifically designed for first-time buyers which offer lower interest rates, rate buy-downs, or down payment assistance programs. Additionally, some sellers are now offering Buyers CASH at closing to help cover the cost of their closing costs or to purchase down their interest rate from 6.5% to 4.5%, for example. These are commonplace, so don't let what you see on paper worry you too much. We can get creative and we're in a market that allows for creativity and negotiations.

Rent Increases Slowing Down 
In recent years there has been an increase in rental rates across Colorado due to increased demand coupled with limited supply; however this trend appears to be slowing down as more apartments become available throughout the state and rents begin leveling off or even decrease slightly in certain areas. This means that renters won't have as much competition when searching for apartments and they should be able to find something within their budget without having to worry about competing against other tenants vying for the same space. Additionally, landlords may even be willing to negotiate on rent if tenants can provide proof of income stability or good credit history - so don’t be afraid to ask!  

Conclusion
No matter what happens in 2023 - whether it's higher prices or greater affordability options due - one thing is certain; the Colorado housing market is always changing and evolving! If you're looking at purchasing property or renting an apartment soon make sure you do your research and stay up-to-date on all of the latest trends and predictions so that you can make informed decisions when it comes time to buy or rent your next place! With this knowledge you'll be sure find yourself living comfortably in no time! Reach out to my team and I to help you accomplish your home buying and selling goals, we're professionals that study it each and every day.