Colorado Market Trends January 2023

Colorado Market Trends Jan. 2023

According to Colorado Realtors Association, the statistics look like our normal winter slow down in January.

As a Transaction Coordinator, I have noticed a significant decline in sales from August to today. Interest rates with high housing costs are definitely impacting it. Many of my agents are getting creative, to avoid price decreases on listings. From pricing it in the middle of the comparables, offering a 2/1 rate buy down to maintain equity, and buyers eliminating inspection objection for the concessions. I have also seen, some properties getting under contract relatively quickly, with a much higher termination rate than normal over inspection objections, along with more items than years past being asked on the inspection objection. I have seen more and more agents, take less commission to offset the concessions sellers are offering, and I am conducting more listing contracts amend/extend to decrease the price.

The unique part I play as a Transaction Coordinator is still having the Broker's eye for the Real Estate market, and getting the opportunity to see and share how other agents are finding success in our relatively different than the last 11 years. The market has shifted tremendously, and I suspect it will continue down the path of a price correction, which is massively needed in terms of affordability in the Colorado Real Estate market.

Nationally, we are seeing similar trends, according to CoreLogic, On a month-over-month basis, home prices declined by 0.4% in December 2022 compared with November 2022 (revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results). They also say Colorado is overvalued by 10%+ on the heat map they create. It will be interesting to see how high rates and high inflation (Colorado being the highest in the country at 15.7%) will further impact Colorado’s housing market and rental market.