Why prices are not falling and why they probably won't (Colorado Springs edition)

[Ryan Thomson]

Here is an awesome article written by a local and well respected economist for the Colorado Springs Gazette. It's worth a read to understand why prices are not falling and why they probably won't.

Don't let interest rates keep you from buying if you can afford it. If they go down prices will shoot up. Plus, you can refinance if they go down! I have lenders offering point buydowns and free refinances in the future.

And if rates go up? You'll feel like a genius for buying now.

What are you waiting for?

• For prices to fall with such low inventory? Unlikely.
• For interest rates to go down? Demand and prices will increase. You'll buy the same house for a higher price and your monthly payment will be the same.

Here are some highlights from the article: High interest rates contributing to chronic housing shortage | Tatiana Bailey

During the Great Recession, our region significantly underbuilt, which is one of the primary reasons we have a standing housing shortage today. Only during 2021 and 2022 did we reach the ideal number of permits, but that’s largely due to the pandemic-related, historically low interest rates

If we look at building patterns this year through September, we’ve only built out 5,400 dwelling units, so we will again fall short of the ideal number of permits this year. Logically, many would-be buyers are back on the sidelines because of the high interest rates, and builders aren’t going to build homes until that demand comes back.

If you don't follow Tatiana Bailey and her team its well worth it.

[Derek Brickley]

Yep!!  Not every market but we are seeing a lot of the same.