As I look back on 2022, it's clear we experienced a lot of change. Aside from ditching our masks earlier in the year, the real estate market went from 150 mph to 80mph, and interest rates more than doubled. Things are calmer now, and I don't feel like that's a bad thing. Buyers aren’t rushed to make decisions the minute they step into homes, and they have more time to explore their options. Sellers aren’t getting peak prices, but they’re selling their homes at solid price points. Negotiations are back, and buyers and sellers are working together to get to the closing table.

What I'm seeing as we enter 2023

Inventory will continue to be a big challenge for buyers. Yes, supply is going up but not by much.

Buyers are able to negotiate a discount on price; however, low inventory continues to keep pressure on prices. There are still some homes that get multiple offers, but this is no longer the norm.

Sellers are putting more effort into getting their homes ready for sale, like making improvements and staging, and it's paying off.

Well, the Fed did it again—they raised interest rates. These rate hikes continue to squeeze buyers’ budgets and the uncertainty that follows causes others to take a wait-and-see approach.

My Observations

As interest rates have risen since spring, I’ve watched sellers lower their prices and days on market increase.

We're moving away from a pure seller's market; however, sellers have a slight advantage because the supply of homes is so low. Buyers and sellers are negotiating on price, terms, and inspection repairs.

The number of new listings has been declining since interest rates began rising. This tells me sellers may not want to list their homes and trade their low-interest-rate mortgages for something higher.

Sellers who price their homes based on peak-market activity end up overpricing them. These properties eventually sell after price adjustments.

Despite the current economic environment, there are engaged buyers out there. Our market continues to be strong from a historical perspective.

Things are going gangbusters around here. Every week there’s not enough homes to keep up with insane demand, and buyers keep paying high prices because they’re competing for something that’s in limited supply.

From Aspen to Parachute, there were 150 new listings in April and 211 sold. The ratio of new listings to sold homes is .71:1.

There have been more sales than listings in 7 of the past 8 months.

To put things in perspective, in a balanced market, six months is considered normal to sell a home. As of the end of April, it took 3.2 months--for the entire local market.

And, prices keep going up, up, and up.

I'll get to my kidney in just a minute. First--our housing market is a beast for buyers right now. We do not have enough inventory to meet current demand.