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Belcaro Real Estate Market Forecast 2023

Posted on: January 5, 2023

Belcaro is one of the most exclusive neighborhoods in denver. First time home buyers probably are not buying $2M+ homes in denver.

Home price increases will likely slow down

The last few years have shown a steady, sometimes frantic, upward climb in the cost of real estate across the entire U.S. This climb continued in the first quarter of 2022 despite some experts predicting a slowdown. This change was mainly due to the movement of people during the pandemic coupled with extremely low-interest rates. It created the perfect storm that lit the real estate world on fire. Sellers were totally in the driver's seat, and buyers were willing to pay for what they wanted. This buying frenzy drove housing prices up over 30% in some markets year over year.

These increases will likely slow significantly as we settle into a new normal. People will still need to buy and sell homes regardless of the market, but prices will remain stable. The Belcaro real estate market will continue to be active, with price increases flattening or in the single digits in 2023. This change is primarily due to the rise in inventory as some buyers drop out of the search for a new home.

Neither buyers nor sellers will have the upper hand during negotiations

The real estate market is often referenced as either a buyer’s or seller's market. Occasionally, we also hear references to a neutral market. As we know from our discussions above, people need to buy and sell homes. This fact won’t change. Who will be in the driver's seat during negotiations will be different. Since 2020, sellers have been calling the shots. Buyers have been strongly bidding against one another to land the home they wanted. Many sellers received thousands more than their asking price.

In 2023, we will see a more neutral playing field. No one will have the upper hand when it comes time to make an offer. Belcaro homes for sale will have a listing price based on research done by local real estate agents like Nick Bruce. The listing price for these homes will be close to what the sellers can expect to receive during an offer. The idea of multiple offers competing with one another will go away. These adjustments will turn the Belcaro real estate market into a neutral market. Buyers and sellers will have a balanced negotiation process.

Buyers will make adjustments to their budget due to rising interest rates

As the world transitions back into normalcy, we face growing pains. The biggest hurdle facing most Americans today is the inflation rate. The Federal Reserve continues to work toward putting this fire out by using the one tool designed to help: interest rates. These increases in interest rates will force some buyers to re-evaluate their budgets. This change in the budget may take them out of the running for a larger home. They may settle for a smaller home that needs work or potentially continue renting. Some buyers will back out of the search, increasing the available home inventory on the market. An increase in stock will normalize supply and demand, determining a home’s price.

Every adjustment to the interest rate impacts a family's monthly budget. As there continue to be adjustments, hundreds of dollars are added to the cost of a mortgage every month, and hundreds of thousands of dollars are added throughout a thirty-year mortgage. These facts will certainly cool the buyers down as they begin their search for a new home.

Homes may require cosmetic improvements before selling

When the market was a seller's market, buyers didn’t care about cosmetic updates. Some buyers even purchased homes without ever stepping foot inside. They simply wanted a home in their desired location. As we transition into this more neutral market, sellers may be better served by completing any overdue projects on their homes before listing them.

Projects like outdated carpets, overgrown landscaping, and deferred maintenance will cost sellers money. Completing these projects will improve your listing and attract more buyers to showings. Home staging will also bring more buyers and offers to the table. Sellers will want to highlight the fantastic features of their house and hide the not-so-awesome.

You’ll ultimately decide the right time for you to buy or sell. Understanding the local market in which you plan to move into or sell your home will give you a solid foundation to start the process. Nick Bruce has a strong background in the local Belcaro real estate market and will get you the results you need.

*Header photo courtesy of Shutterstock

Recommended Reading: Why People Love Living in Belcaro

Work With Nick

Nick has experienced how stressful and time-consuming buying a new home in Denver can be, and his mission is to take that burden off of his clients. Using LIV Sotheby's International Realty's cutting-edge technologies, he carefully analyzes housing trends in the chosen location while considering his buyers' wants, needs, and budgets.

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