Are We on a Fast Track to Reliving the 2021/2022 Real Estate Bidding Wars?
Written by Bellco Home Loans
Recession? No recession? Soft landing? Hard landing? Falling home prices? Bidding wars? Every day the story changes – but what does the data actually say?
The real estate industry whiplash we’ve experienced over the last few years made sellers wary and forced some potential buyers out of the market. But when we take a look at the latest stats on today’s market, there are good reasons for buyers and sellers to be optimistic.
February Real Estate Market Data
According to data from Cherry Creek Mortgage, application submissions increased 42% in January, with credit inquiries jumping 59.6% and new interest rate locks increasing by 19%. Buyers are showing an increased appetite for the market, as RE Colorado reported a 500% increase in properties under contract when comparing February 1-13, 2023 to January 1-13, 2023.
Anecdotal feedback from local real estate agents supports the stats behind this warming trend, as many are experiencing multiple offer situations and homes selling above the asking price. Listings that sat idle at the end of 2022 have gone under contract in a matter of days when relisted in January.
Real Estate Outlook for Buyers and Sellers
With spring (and the busy real estate season) just around the corner, tight inventory and a rapidly expanding buyer pool could lead to another competitive landscape for buyers. The real estate rollercoaster keeps the industry on its toes, but the data suggests that home prices may be stabilizing, rather than crashing.
The inevitable decline of home prices from 2021’s historic highs and an uptick in interest rates has cooled the red-hot market, but that leveling out means more buyers may be ready to make the leap. As an increasing number of buyers prepare to enter the market, we could see accelerating competition and ongoing inventory challenges in the months ahead.
If you’re thinking about buying a home this year, you may want to get in touch with a mortgage expert sooner than later. The Bellco Home Loans team is here to help if you have any questions about your options.
Disclaimers:
Bellco Home Loans, LLC NMLS# 2085298. This material is informational only and not an advertisement to extend credit as defined by TILA/Regulation Z nor an application for credit as defined by RESPA/Regulation X. All applications are subject to underwriting approval and determining applicant’s ability to repay. Not all applicants are eligible for or qualify for all loan products offered. All loan programs, terms and conditions are subject to change without notice.
Bellco Home Loans is a collaboration between Bellco Credit Union and Cherry Creek Mortgage, an independent mortgage lender that’s been helping families attain homeownership for over 30 years. Equal Housing Opportunity.
