New Year, New Market: 2023 Grand Junction Real Estate Update!

It's a new year and a new market! 🎉 🏠

Nationally, bankers and real estate firms disagree widely on how much the housing market will rise or fall this year as high interest rates brought a two-year homebuying frenzy to a halt this winter.

Here in Grand Junction we have seen a lot of shifts – especially with home sales, interest rates and inventory levels.

In this quick video I share some tips on what YOU need to know before you set your investment or homeownership goals for the year.

2022 Grand Junction Stats:

• In Mesa County, 3,257 residential properties were sold in 2022 (down 21% from 2021) for a total volume of $1.38 billion in sales (down 9% from 2021).

• The median home price in Mesa County peaked at $416,000 in 2022, but the final median home price was $370,000, up 6% from the end of 2021 ($350,250).

• Last year saw a bounce-back for inventory from a pandemic-induced slump. In July, Mesa County inventory surpassed 500 properties for the first time since May 2020. As of the end of December, there were 523 residential properties on the market.

• Building permits fell from 911 in 2021 to 720 in 2022, the fewest since 2017.

Overall 2022 started out much like the last two years, but interest rate hikes by the Fed combined with inflation and high home prices shocked buyers and created a market slowdown. This continues to make it harder for many homebuyers to access affordable housing.

PREDICTIONS FOR 2023

Lawerence Yun, The Chief Economist at the National Association of Realtors predicts we’re going to see interest rates come down slightly and stabilize this year around 5.5-6%.

We’ve returned to a more normal market pace, which suggests that we’ll see listings increase this spring because, seasonally, people put their property on the market in February, March, April. If listings do increase and rates come down just a little bit, we’re going to get an increase in activity, and we’re already seeing this happen in Grand Junction.

Bottom line: If you want to buy, you shouldn’t “sit on the sidelines” and wait for a particular shift in the market. It’s difficult to time the market perfectly and if rates do drop you can always refinance.

Janice Burtis has worked in many markets and bought when interest rates were as high as 8%! She never regrets purchasing real estate and has a lot of tips and advice for those wanting to get into their first home or build their real estate portfoilio.

If your real estate goals for 2023 involve buying, selling, or investing in a home, please contact us.