The Colorado housing market is currently undergoing a significant shift, with the median sale price falling by 1.8% in February 2023 year-over-year (YoY), and the number of homes sold dropping by 42.1%. As mortgage rates are at record highs in 20 years, with an average rate of 7.08%, sellers are reducing prices as homes stay on the market longer. With this shift in the market, buyers are finally gaining some market power. However, the Colorado housing market is now threatened by a similar instance of rising mortgage rates and the possibility of a recession. Thus, buyers and homeowners are asking a familiar question: When will the housing market crash in Colorado?
Buyers are Already Out for Spring of 2023
The real estate market has undergone significant changes over the past year due to the global pandemic. However, despite the initial shock to the housing market, the demand for housing has remained strong, and this is evident in the latest ShowingTime Showing Index. The index measures the number of buyers actively touring available homes, and it shows a 62% jump in showings from December to January – one of the largest on record.