Is The Colorado Housing Market Going to Crash in 2023?

You may have heard from a few sources that the housing market is set to crash in 2023. Understandably, these predictions have a lot of homeowners worried about selling their homes, but is there really anything to worry about? Having helped clients through decades of market crashes, we think that a housing market crash is unlikely, and that there is no better time to sell than right now. Let’s take a look at why this is.

  • A Bubble That’s About to Pop?
  • How a Market Crash Could Happen
  • The Time to Sell in Colorado is Now
  • What You Can Expect

A Bubble That’s About to Pop?

Many people have been using the term “bubble” to describe the recent rise in market value, which implies that the housing market will experience a dramatic “pop,” meaning a massive downward crash in the housing market.

Colorado residents have been preparing for this potential “pop” and worrying about it for a year since current prices in the Colorado real estate market have been significantly higher than they normally are. However, none of this speculation means that a crash is imminent. In fact, rather than the devastating market crash people have been predicting, what we should expect is a slow and gradual decline in Colorado real estate prices based on past trends and the way things are currently headed.

How a Market Crash Could Happen

Even though it’s safe to assume we will experience a slow decline in prices rather than a full crash, no one can predict for certain where the housing market will shift, and it’s good to be prepared for anything. Given the right conditions and circumstances in the right combination, an unexpected crash could occur. Let’s review a few factors that contribute housing market’s instability so you can know what signs to look out for:

High Unemployment Rates:

Although a small, gradual rise in unemployment rates won’t have a large effect on things, a sudden and substantial rise in unemployment rates could mean a turn for the worse in the housing market. If a great number of people are without jobs, they may frantically try to sell their houses, and foreclosure numbers could rise.

Homebuilding:

When it is thriving, homebuilding leaves more desirable houses on the market. However, during the Coronavirus pandemic, the rising prices of materials meant builders were struggling and facing an increased difficulty in getting building permits. These combined factors can lead to a shortage of homes for sale, which causes prices to rise as they have recently. We are already expecting a continuation of this slow progress in the new-home market in 2023.

Buyer Demand and Motivation:

The two most important aspects of tracking the housing market in Colorado are the buyers’ demand and motivation. After all, if no one is buying houses, the housing market won’t even exist at all. If the public’s demand and motivation to buy houses started to drop suddenly, it would be bad for the housing market as a whole.

The Time to Sell in Colorado is Now

Low housing prices are a great situation for buyers to find themselves in, but sellers and real estate agents will find this situation to be less than ideal. Right now, because there are so few Colorado homes on the market in the first place, competition is high, and lower-priced houses will get offers very quickly. The main takeaway is: if you’re thinking about selling your home this year, there is no better time than right now. Get your home up for sale and on the market while demand for homes is high and prices are higher.

What You Can Expect

This year, we think you should expect to see a gradual decline in prices in the Colorado housing market. While this might not sound good, it is nowhere near the dramatic downward spiral that people have been worrying about! Prices have skyrocketed recently and will simply be sinking back to a more appropriate market value as 2023 progresses.

If you’re thinking of selling your home or buying a new one, there is no one better to help you than our team, EmpowerHome Team. We’ve helped thousands of families through dramatic market shifts, and we have decades of experience navigating the changing markets, so you can rest assured that we can get your home sold regardless of whatever the 2023 markets have in store. Most sellers last year had to call a second or third agent to get the job done, or even worse, not sell at all. The agent you hire the first time matters! Our team sells 98% of our listings the first time, so when you hire us, your home is more likely to sell fast & for top dollar! 

Call or Text us now at 303-529-0697 to start working with a team that will help and support you every step of the way!

Your Home SOLD for 100% of the Asking Price or We Will Pay You the Difference.* No Gimmicks! Visit us HERE for more information.