Just like Colorado’s weather, the only thing certain about the state’s housing market is that it changes all the time. Still, as the year begins, it’s nice to pause and see which way the wind is blowing.
What will 2023 bring? We asked RE/MAX of Cherry Creek brokers for their thoughts. Here are a few of their market predictions:
Interest rate hikes will mellow—but remain relatively higher—by the second quarter.
“Interest rates will remain higher than they’ve been for the past few years,” says RE/MAX of Cherry Creek President Bailey Dolian, “but that’s not necessarily a bad thing for buyers. More expensive mortgages mean less competition; less competition leads to stabilization in home prices.” In 2023, she predicts, buyers will avoid the frenzied market pace that led to eye-catching offers well-above asking price. “Purchasing a home for a more justifiable price grants a homeowner even more room for future appreciation,” says Dolian. “We’ll see a market where long-term investors prevail.”
Buyers will be more discerning.
The number of homes on the market will remain at historic lows, and buyer demand will also drop, Dolian adds. Thus, “serious sellers need to focus on making their home stand out against the competition. Clean up landscaping, roll on some fresh coats of paint, and make sure all major systems are serviced and in good condition.” And don’t overlook staging your home by a professional. It’s “worth every penny,” says Dolian.
Quality is critical
Buyers will be looking for move-in ready properties with high-level finishes and impressive presentations, say brokers. Sellers updating their homes should make sure those renovations aren’t slap-dash, but done with superior materials and craft.
Sellers will need real estate agents more than ever
“The days of just putting a sign in the yard are over,” notes RMCC Managing Broker Sarah King. Real estate agents are essential in any market, but in the coming year in which high interest rates will likely dampen demand, sellers will need the knowledge and skill of a broker more than ever.