The Flying Horse Realty Report

Time To Slow Down: Although estimates vary widely - many project that, in 2023, home sales will fall to their lowest rate in the past 11 years…depending on inflation, interest rate adjustments, and other factors (Redfin)

But Not Too Slow: Even though demand is slumping because of surging mortgage rates, prices are being propped up by inflation and a drop in the number of people putting their homes up for sale (USA Today)

If You Build It…The National Assn of Homebuilders predicts homebuilding will start to recover in 2024, and that mortgage rates will ease back from current levels to a range between 4.5% and 6% by 2025 (NAHB)

Some 2023 Projections: Redfin: home prices fall a modest 4% nationally. Zillow: home prices will remain flat in 2023. Realtor.com: home prices will appreciate around 5.4%. Bottom line: nobody really knows! (Misc. Sources)

Propensity For Density: U.S. renters will continue to face challenges from limited supply and excess demand in the coming year (Realtor.com)

Colorado Proud: In December, Colorado had the second highest labor force participation rate in the country, behind only Nebraska (Colorado Dept of Labor)

What’s Not To Like? “Colorado’s strong job growth and low unemployment rate continue to outpace national levels as we continue to bring good-paying jobs to Coloradans” (Jarid Polis)

Let’s Make a Deal: Across the state, housing inventory as well a average sales prices were up from a year ago, with active homes on the market statewide growing to over 70,000 (Denver Business Journal)

Still A Great Investment: The pace of the Colorado housing market has slowed down…however, the forecasts still expect that the Colorado housing market will continue to experience price increases in 2023, albeit at a slower rate than in the past two years (Norada)

Neutral Is Back: Denver is experiencing a trend of decreasing house prices and appears to be transitioning from a seller’s market to a neutral landscape. However, home prices remain above the national average and are still expensive from a historical perspective (Forbes)

Sign Me Up! Despite industry layoffs and cutbacks among some startups and tech giants, our local tech industry’s biggest challenge in 2023 will be hiring enough talent to meet the demand (Colorado Technical Assoc.)

We “Appreciate” It: Banks, Realtors, and mortgage firms disagree on what Colorado home prices will be like in 2023, but some predict Colorado Springs and Pueblo will both outpace Denver in home appreciation in 2023 (Fox 31 News)

Just A Fender Bender: Higher mortgage rates haven’t caused local housing to crash, but they’ve brought about a return to a more balanced market and traditional give-and-take between buyers and sellers (Gazette)

Accidental What? As homes sit on the Colorado Springs housing market longer, some property owners are deciding to rent out their homes and are becoming “Accidental Landlords.” (KRDO)

Cool or Warm? Home prices in Colorado Springs continue to show signs that the market is cooling amidst persistent inflation and spiking mortgage interest rates. Yet, the term “cooling” may be a bit relative as prices are still well above where they were a year ago (CPR)

And They Want To Come Back: In 2022, Colorado Springs (primarily because of our military population) was recently ranked number one in the country where homeowners stay put the shortest. Realtor.com reports the average time between sales in Colorado Springs is four years and nine months (KKTV)

We’re Not Surprised. Of 150 U.S. metro areas recently analyzed to find the best places to live based on quality of life, job market, and where people would like to settle… Colorado Springs was #2 in the country and #1 in the state (U.S. News and World Report)