What a year it’s been.
2018 is just about over and it’s time to reflect on the past year. Back in December of last year, we predicted the following trends to come to fruition in 2018:
- Limited Inventory
- Limited Affordability
- Appreciation of 4-6%
Well, much of that rang true. 2018 was almost equal to 2017 in the number of sales. Anyone looking for a home last year felt the lack of inventory and high demand for the few homes for sale at a given time. This lack of inventory statewide helped properties appreciate at ~7-8%, thus making affordability a continued challenge for some.
Reflecting on the past 12 months, there are many new and happy home owners who are glad they purchased a home or investment property. Equally, there are many home sellers that capitalized on the market and enjoyed the home-selling process which was likely much easier than in years past.
Now, as we head into 2019 what can we expect from the Colorado real estate market?
If you keep up with national headlines, you might hear about a market-wide slowdown or possibly an impending real estate bubble.
However, it’s best to read and understand the articles and then look a little closer at your hyperlocal market and talk to me, your hyperlocal real estate expert.
Although nationally the real estate market is likely to slow down, it won’t be coming to a stop. Sales will still occur and local appreciation will continue. Will we see some stabilization in prices? It is very likely.
Will we see more inventory/homes for sale? A slight increase, but still very low compared to years past. The spring market (think Feb-April) will see the shortest days on market. Once early summer approaches (May-July), I think we’ll see homes on the market for a bit longer with more time for buyers to think about their purchases. If you’re a buyer, you’ll have a bit more time to breathe. As a seller, always price your home correctly and remember to trust the process and have a bit of patience after a week or so. A wise tip to home sellers in 2019 – don’t wait till summer if you’re able to sell in the earlier spring months.
Affordability will continue to be a challenge and it seems that the days of mortgage interest rates below 4.5% are in the past. Look for rates to bounce from the high 4% to mid 5% range. Don’t let that over worry you though. A .5% increase on a mortgage rate accounts for approximately $75.00 in a monthly payment on a $250,000 loan. Skip one dinner out a month and enjoy a home-cooked meal in your new home instead!
Colorado is well insulated to absorb a lot of national real estate adjustments. There is strong job growth in Colorado, inventory is limited, interest rates (although fluctuating) are still very affordable, and above all, Colorado is a highly desirable place to live.
So, bring on 2019! I look forward to being your trusted real estate professional in the new year.
A Refreshing Look at the Question “What is my House Worth?”
Let’s take a look at some of the stats for our area to get a better idea of what is going on in the local housing market!
In El Paso County for November 2018, the average sales price* was:
- $300,000 for Single Family Homes (up 7.1% from 1 year ago)
- $209,000 for Condos/Townhomes (up 11.8% from 1 year ago)
I have access to detailed stats across Colorado and can help you find out the worth of your property any time. I can also help you determine what your home is worth even if it’s in a different area. As always, I am here for you. If it’s time for you to buy or sell, let’s talk.
*Median sales price based on a six-month moving average