Why Some House Prices Are Declining in 2023 and What To Consider. Colorado Springs & Pueblo Colorado

The real estate market is an unpredictable beast. While housing prices have been on the rise for years, many homeowners may be surprised to learn that they are now on the decline. This trend is expected to continue long into the next few years. In this blog post, we'll explore why this is happening and the factors that are contributing to this decline. We'll also share tips for homeowners who may be considering selling their homes in the current market. If you’re in need of a quick sale, contact us at HelpfulHomeBuyer.com..

One of the main reasons housing prices are declining is due to the rise in interest rates. As interest rates increase, the demand for homes decreases. This is because most homebuyers need a mortgage to purchase a home, and as interest rates rise, mortgage payments become more expensive, making it harder to afford a home. As a result, home sellers must lower their asking price to attract potential buyers.

If you've currently got a mortgage payment with a fixed interest rate under 4%, you're among 60% of households in the United States. However, if you're looking to sell your home, the rise in interest rates means you'll likely have fewer buyers interested in purchasing your home. This can lead to a longer time on the market, and ultimately, a lower selling price.

While traditional methods of working with a real estate agent may be the norm, sellers should be wary of agents looking to use their potential listing as a marketing opportunity. In many cases, working with a broker can end up costing more than it's worth. Instead, homeowners can consider alternate methods of selling, such as creative financing or seller financing.

Another factor contributing to the decline of housing prices is the oversupply of certain homes in select markets. This isn’t occurring everywhere though. With a surplus of homes available, buyers have more options to choose from, which puts pressure on home sellers to lower their asking price. This oversupply is often seen in areas where previous price appreciation has boomed, resulting in a quicker reversal as prices outpaced local buyers ability to afford the homes.

The last factor contributing to the decline in housing prices is the overall state of the economy. When the economy is doing well, people have more disposable income, which can lead to an increase in demand for homes. On the other hand, when the economy is struggling and unemployment creeps higher (which it’s starting to do), people tend to hold off on big purchases like homes. That said, home values are local and are dictated from neighborhood to neighborhood, and can change at any time.

While the decline in housing prices may be concerning for homeowners, there are still options available to those looking to sell. By understanding the factors contributing to the decline, homeowners can make informed decisions about selling their homes. However, if homeowners choose to sell, they should be sure to explore all selling options and choose the method that will best meet their financial needs. While the market may be challenging, with the right strategy, homeowners can still sell no matter the circumstance. You need to talk to someone who can evaluate the valuation of not only your home, but the loan you have on the property as well. We look forward to hearing back from you soon. We hope the current chart below serves you as you evaluate what to do next.