Have you thought to yourself, “I’m going to just wait for the housing market to crash and then I’ll buy a house”. I know a lot of people talk about decreased home prices and an up coming opportunity to get some really good deals. If you are still holding out hope for a market crash, I have some really bad news for you. Looking at very basic supply and demand, it’s extremely unlikely that there would be a crash and more likely than anything is that the mortgage interest rates will continue to inch down which is going to drive demand and prices higher again.
Some people are thinking that since interest rates climbed so quickly in 2022 and winter seasonality hit about the same time, prices have dropped. In Northern Colorado we have seen a slight softening of prices. Right now you can pick up a new property for less than mid 2022 but interest rates have already begun coming back down. The problem with the logic is that when the rates do come down, demand with skyrocket and prices will increase.
As I’ve been saying in other blog posts and videos, there is still an incredible amount of demand to buy homes in Northern Colorado. People want to live here. People are moving from the midwest, Texas, California and other parts of the US. Northern Colorado is a desireable place to live and that will never change.
The milenials are now at the prime age to buy a home. According to the National Association of Realtors (NAR), the prime age for first time home buyers in 32. More people turned 32 in the USA last year than ever before. The number will be beat again this year. (Click here for all the reasons the Real Estate Market Won’t Crash.)
Bottom line, rates are inching down, demand is high and supply is still at an all-time low. I’m concerned that we could be back in the wild bidding wars of 2021 and early 2022. With all of that in mind, I believe early 2023 is going to be the best time to buy a house.