The real estate market has received a lot of attention the last several years. Record median home prices, rising interest rates, and the fear of a looming recession have all had an impact on the national and local markets since the beginning months of the Covid-19 pandemic in 2020. With some experts maintaining that the housing market nationally is beginning to show signs of cooling, many questions are being asked by buyers and sellers alike on what their next moves should be. But not all markets behave in ways that mirror what is happening nationally. If you are considering entering the Cherry Creek real estate market, you’ll want to know what experts are saying about the current prices and trends, as well as their predictions for the rest of 2023 and beyond.
National Housing Price Trends
Home prices soared in early 2020, with many houses selling for far more than their list prices. As new home builds slowed to a crawl, the available housing inventory was involved in a bidding war. The high demand and low supply resulted in median home prices soaring into unseen territory.
But data shows that the housing market has cooled some over the last 15 months. Rising interest rates have certainly given some otherwise prospective buyers pause, leading to median home prices dropping year-over-year in April 2023 for the first time since before the pandemic.
And though home prices have dipped some, many forecasters aren’t predicting an all-out crash like the nation saw with the Great Recession in 2008. Stricter lending guidelines have kept foreclosure rates low, and there is still more of a demand than a housing supply in many major U.S. markets. These facts have led many to predict that prices might dip a bit more, but will level off by the end of the year.
With the national forecast in mind, what does the data show for the Cherry Creek real estate market?
The Cherry Creek real estate market is showing signs of promise
For more than a decade, the market in the Denver metropolitan area has heavily favored sellers. The peak was in September of 2021, when housing inventory was at its lowest point, driving up prices. But it appears that the area is now entering a market that will be favorable to buyers.
The inventory of available homes has greatly risen here, impacting the median home prices. Experts predict that this will impact homes valued at 500K and higher the most, with homes listed for under 500K being in a more balanced market.
The home prices in Cherry Creek are still higher than the national average and look to continue to be for the foreseeable future. Though the supply of homes is higher now than two years ago, the area is still one that is greatly desirable. For these reasons, it’s highly unlikely that home prices will drop much more here, although the days of bidding wars on houses are probably coming to an end on most of the listed properties. These Cherry Creek real estate insights suggest that while the market is shifting, Cherry Creek remains a prime area for both buyers and sellers.
To buy, sell, or hold Cherry Creek real estate
If you are in a position where you need to sell your Cherry Creek real estate, don’t be discouraged by the recent dip in median home prices. Even if the forecasters are correct and there’s a buyer’s market on the horizon, your home is still likely much more valuable than it was pre-2020.
The best news seems to be in the favor of buyers in Cherry Creek. The timing here will be important, however, and will give you a few things to mull over. If you wait a bit to buy a home, you might be able to take advantage of a dip in the value of the home you will eventually purchase. But there is something important to consider that might make you act faster.
The rise in interest rates has been an unfortunate reality since early 2022. The Fed has raised rates to levels not seen in years, which is part of the reason that the housing supply has jumped in certain markets. If you wait too long to buy, you might well be entering a mortgage where you’ll be paying a lot more over time for the home than you would if you put in an offer today.
Considering the future of Cherry Creek housing, whether you want to buy or sell a home in Cherry Creek, it’s important to weigh out all of your options. Just like the stock market, it is difficult (if not impossible) to time the real estate market so that your sale or purchase will happen under the best possible market conditions. The reality is, if you HAVE to sell, sell using an agent that will help you get the most money for your home. And if you are buying, consider what rising interest rates will impact on the amount of money you will end up paying out of pocket over the entirety of the mortgage.
Your next moves
The decision to buy or sell real estate isn’t one that should be taken lightly. For most Americans, the home is the single largest investment that they’ll ever make, and buying or selling one is recommended to be transacted by using a real estate professional. Data shows that using an agent as a seller will get you more for your money than you would if you sold the property alone. And as a buyer, an agent will not only help you find the home of your dreams but will use their negotiation skills to secure you the best possible price. For buying and selling Cherry Creek homes, consider the agents on Trish & Maggie. Their years of experience will go to work for you, giving you a stress and hassle-free journey to the closing date.
Recommended reading: When is the Best Time to Sell a House?
