How 3rd Quarter Real Estate Trends Impact Your Home Value
As the end of the 3rd quarter of 2022 closes out, we see a definite cooling trend in the real estate market. This cooling trend can be attributed to three significant factors:
Rising interest rates
Uncertainty of inflation
A major correction on Wall Street
Due to this real estate cooling trend, median home prices have dropped for the fourth-straight month and are down to $570,000. That is an average drop of $30,00 for the last four months. Because of their affordability, condos have only seen a median price drop of $20,000 over the previous four months. These price drops, however, are no reason to panic. Home prices are still up 9.6% from a year ago.
Another crucial real estate measurement that determines the status of the market is the Average Number of Days On Market. This critical factor indicates whether we're in a buyer's or seller's market. It is considered a buyer’s market if the Average Days On Market is above six months. Today, in the Colorado real estate market, we are still in a seller’s market because the current Average Days On Market is 1.3 - 2 months for single-family homes. With this being the case, the pricing strategy of your home will be one of the most important factors to successfully selling your property.