We have experienced close to 10% housing appreciation along the Colorado Front Range for the past several years.
2017 will bring a lot of changes to the housing frontier.
- A new President
- More States that legalized marijuana
- Interest rates going up
- Companies moving in and out of the State
What will that mean for home values?
Across the board, the above factors point to a 'Cooling' of the housing market for Colorado. However, keep in mind that appreciation and lack of inventory have fueled an off the charts market for the past several years. Comparatively a cooling will still be seeing us in more of a sellers market for the Spring of 2017. This time around though, we won't be seeing the frantic 20 + offers that we saw in the Spring of 2016 for the most desirable properties. Bidding wars will be among the cooling factors as buyers will be seeing more inventory that last year. New construction projects are coming to the fore to increase inventory and inventive ways to keep sellers in their homes after a sale while they search for their next home are taking away the fear of being homeless if they list.
Interest rates may hit as high as 5% according to many experts by the end of 2017 - however that number is still historically low and affords many buyers the ability to buy instead of renting for the same price.
So if your thinking of selling - this may be the last Spring that will technically be known as a sellers market for a while. Next year is supposed to swing back into a more balanced market keeping things on more neutral ground for both buyers and sellers. Also a point to remember - June of 2016 saw a 45 percent decrease in buyer traffic as a large portion of buyers had to resign leases and wait until the Spring of 2017 to look for homes again. This Spring see those renters entering the market again - and we should also again see a reduction in buyer activity in June of 2017. If you are thinking of listing - getting your home on the market before the end of April will be critical - with a mid February - early March time frame being ideal.
If you would like to hear more REAL ESTATE REALITY - April Neuhaus will be presenting current information for real estate buyers and sellers on Feb. 2nd, 2017 in Berthoud Colorado for the Chamber of Commerce.