Market update mid June 2023
May showers have brought June showers to much of Colorado. As I write this almost-half-year market review, there are fat white flakes falling in Winter Park. While many of us are itching to play outside without all the mud and precipitation, we do what we can to stay positive. Fire danger is low. Lake Granby is up 128% of normal (look for some spillway action this summer). Rivers are heaving providing boating fun (along with obvious danger) and much needed water to our downstream reservoirs. According to online resources, Lake Powell is up 38.74 FEET from this time last year!
In years past, we often saw a flood of new listings hit the market each May/June. While this hasn’t been the norm in several years, we are seeing a constant trickle or stream of new listings hitting the market right now. These include all sectors of the market. But while it seems like there are a lot of new options right now, the statistics tell a different story.
The reason why there is an illusion of more listings hitting the market than normal is that they are taking longer to sell. Sales volume is down in almost every sector and town in Grand County. The few exceptions are: Hot Sulphur Springs average sales price jumped 9% from $560K to $614K. Vacant land sales volume is up in both Grand Lake and Kremmling (9% and 11% respectively). Townhome sales volume and sales price are up 5% in Granby bringing average sales price from $740K to $777K.
While inventory may appear to be greater, there aren’t more listings than years past for this time of year. It is just an illusion. The trend around the country is that new listings are still somewhat lagging. This is largely because would-be sellers are staying put. Perhaps they are enjoying their nice, low interest rate or perhaps because there is not a great replacement home option to upsize or downsize depending on the need.
In 2000, the average interest rate for a 30-year fixed mortgage was just over 8%. The current rate this week for a 30-year fixed, primary home is at or just under 6%.
According to many industry professionals, more renowned than us at REWP, this is a great time to invest in real estate. They say this NOT from a high-pressure sales or “glass half full” mentality. They know, like us, that as soon as interest rates start coming down again, we are going to see a surge in buyers. This will most likely lead to a resurgence of bidding wars and frustration for folks wanting to get into the market.
We like the quote from Will Rogers -albeit corny- “Don’t wait to buy real estate. Buy real estate and wait.”
Come to our 15th annual client appreciation party this coming Friday starting at 4 pm and catch up with us, enjoy some BBQ and meet someone new. We will save a seat for you!