STAT ME UP!
I’ve got last
year’s stats Under My Thumb but remember You Can’t Always Get What You
Want!
2023 stats may
not bring much Satisfaction but there were folks out there that looked
at the market and said “Gimme Shelter!”
Single
Family Detached
·
New
home Listings finished the year down 5.5% from 2022 at 2,723
·
Sold
Listings were down a whopping 12.2% at 1,999
·
Days
on Market were up 30.4% to 60 days
·
Percentage
of List Price Received 99.6%
·
Median
Price flat at $600,000- kind of surprising!
Townhome/Condo
·
New
Listings were up 11.2% from 2022 at 917
·
Sold
Listings were down 7.1% to 682
·
Days
on Market went up 10.0% to 66 days
·
Percentage
of List Price Received 99.6%
·
Median
Price up 2.5% to $415,000
You guessed it,
higher interest rates were the Beast of Burden! that led to many of
these numbers.
The volume of
transactions was obviously way down because fewer people could afford to buy
and fewer people wanted to move out with their low interest rate locked
in. Fewer sales transactions and hardly
any mortgage refinance transactions brought the market to a much slower
pace. Mortgage companies, title
companies, Realtors, and mortgage lenders found themselves with extra time on
their hands in 2023. Where do we go from
here? Check the back flap for my
thoughts….
Where are we going?
The affordability issue has finally
come home to roost. Having gone through
nearly 10 years of double-digit appreciation and then having rates go from
under 3% to touching 8% for a short period of time last year. The result is simple, housing is
expensive. Real expensive in many cases.
I ran numbers on a condo in Southeast
Fort Collins recently. With 20% down,
which is over $100,000, the monthly mortgage payment, including HOA, was over
$4,000! The comparable sales in the
neighborhood may support this price, but rarely can buyers afford it. With such a dramatic change in interest rates
over the last 12 months, values are supported by recent comparables, but buyers
are struggling to qualify.
There were high hopes of rates
decreasing in the first quarter this year and now those are a bit more
tempered. This will be the ultimate
stand-off. Will rates decrease or will
sellers decrease their prices? It’s a dicey
old-fashioned game of Chicken! In this
game of Chicken, we can all hope values are in a Mack truck and interest rates
are in a 1974 Ford Pinto. As the
interest rates give in and pull off the road values can keep steaming right
down the highway!
Many analysts I follow believe rates
are currently too high given historical spreads between the 10-year Treasury
and Mortgage Rates. They are hoping
there is both lowering of fed funds rate and Treasuries and a decreased spread
leading to measurably lower rates. I’m
hoping for that was well. Lower values
would be a whole other conversation!
Mortgage Minute:
I now have Reverse Mortgages!
-Tap into
home equity
-No
payments until loan ends
-Stay in
your home
-Supplement
your income
-Tax free!
-Use funds
as you wish
Contact me for any real estate or mortgage needs!
Brandon Tompkins
970.545.0633
Senior Real Estate Specialist
Reverse Mortgages
Certified Luxury Home Marketing Specialist
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