Recently, many of my clients have been asking “is the Colorado real estate market crashing?”  With the rise in interest rates, the extended days on market, and the prevalent price drops we are seeing across the Denver metro market and truly nationwide, it is easy to see why consumers are more concerned about the future of the CO real estate market than ever before.

Many factors can cause the CO real estate market to move in one direction or the other. We saw some incredible appreciation in 2020 and 2021 despite the pandemic. That appreciation was around 24% in Douglas & Elbert Counties in 2021. While that level of appreciation is exciting for homeowners and sellers, it still left inventory at an all-time low because many sellers knew the reality of having to turn around and pay the heavily appreciated prices on their new home. This level of appreciation is a direct result of supply and demand mixed with a little bit of buying frenzy. Often in history, a sharp spike of value is followed by a balancing correction. This is what I feel is going on right now; this correction is not only fueled by a recovery cycle from the sharp appreciation, but it is fueled by the rising interest rates effectively lowering buyers’ ability to purchase. Interest rates will be a discussion for another day.

The main takeaway I would like you to have is that the Colorado real estate market is in a balance cycle NOT a crash. This is still a good time to buy or sell.

If you are a buyer: You may be able to negotiate a little on price, not have to waive inspections, not offer appraisal gaps, avoid bid wars, or not have to offer extended seller rent backs. This is a breath of fresh air for the buyer market as we can revert to more fair and balanced deals.

If you are a seller: Your final sales price may not be as high as it was 9-12 months ago, but you are also saving a little on your buying side while still getting a record price for your sell. Which is the blessing of owning real estate as it always balances itself out.

The Colorado real estate market is a quickly changing animal, so please contact us for a more up-to-date market evaluation.

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Brandon & Kara Lee



For more detailed information, view this helpful video from Dave Ramsey: “Is the Housing Market Going to Crash? / Ramsey Real Estate Reality Check”