Quick August Market Update

For the last couple of months I have been reporting that the story in our current market is the increase in inventory of available homes for sale. This increase in inventory is trending towards a buyer's market and is not only happening in our area of Colorado, but across the country. However, the market is not indicating that home prices will come down and housing experts say Buyers should not assume they will drop or even flatten out in the coming years. 

Fannie Mae's latest Home Price Expectations Survey (HPES) asked 100 housing experts to weigh in with their predictions for the real estate market in the coming years. The most optimistic group of panelists are projecting 27.4% real estate price growth by 2029 and the most cautious group of panelists are predicting 6.7% price growth by 2029. Click here to read the full Fannie Mae Survey Report.

What does this mean for Buyers? Even the most cautious industry experts are still predicting long-term price appreciation for real estate. You can feel confident that a home purchase now will still be a good long-term investment. For investors, this is a great time to purchase a rental property. The best opportunities will be in the 4th quarter of 2025. Sellers become motivated as the holidays approach and it is starting to look like interest rates will drop in the next month or so.

What does this mean for Sellers? Being priced properly based on condition and location is paramount. Buyers have more choices and opportunities with the increased inventory, so Sellers need to make sure their property is priced realistically. Sellers may also want to consider offering closing cost credits for Buyers to lock in a lower interest rate and help close the sale.

Whether you are considering buying or selling, please reach out and let me help you explore the opportunities. As always, I appreciate your business and your referrals. I hope you have been enjoying the summer.

Best,

Rich