Reading real estate headlines these days can be alarming. There’s a drumbeat of dire news about a bubble ready to burst. While some economists want to predict a return to the housing calamity of 2008-’09, the factors that caused the market to unravel during the Great Recession are not in force today.
Yes, the pace of sales is slowing. And for some would-be homebuyers, higher interest rates are pricing them out of the market. But there’s not been a sudden halt to demand, particularly in Northern Colorado.
Chances are, you’ve been part of this conversation with a neighbor – about the house down the street that just sold for tens of thousands of dollars over the asking price, and for far more than any price that seemed plausible in your neighborhood.
It’s not a mirage. In some cases, last year’s $450,000 house is fetching $525,000, or maybe $550,000. Even $600,000.
Last year, the Northern Colorado market experienced its biggest one-year leap in home appreciation – 18 percent – in nearly 40 years (1982-’83). And with each “I-can’t-believe-it sale”, it seems that market values in many neighborhoods are being reset on a weekly basis.
For home buyers and sellers, it’s time to re-set expectations and pivot with a changing real estate landscape. Here are some tips for dealing with the steep slope of today’s home prices:
After spending much of last year below the 3 percent threshold, average mortgage rates for 30-year fixed loans breached the 4 percent barrier in recent weeks – a trend that’s causing some real estate observers to grow a bit gloomy about the housing market.
If the headlines are giving you the heebie-jeebies, relax. Here’s a double dose of perspective to ease your anxiety:
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