2023 Grand Junction Mid-Year Housing Market Update & Predictions
Not sure what’s in store for the Grand Junction housing market the rest of the year? So far we’ve seen rollercoaster interest rates, a slow down in the number of home sales and a pause on rising home prices, but what can we expect in the fall and winter months?
As your local real estate guide, we’re happy to share some knowledge about what’s to come and what you can do to stay ahead of the changing market trends.
1. Nationwide Equity
For those of you waiting for the market to crash before embarking on your real estate journey, you might be on the sidelines for a while. U.S. home equity rates are still lingering at record-highs, and there is no foreclosure crisis in sight. Eighty percent of current mortgages have a rate of 5% or lower (FHFA), so homeowners are determined to keep their homes and maintain their rate.
2. Renting Prices Rise
With so many of us focused on the housing market, it’s common to turn a blind eye to the renting world. Even as home prices increase, the price of renting is not far behind. There are nearly 3 million households that are making over $150,000 a year that are still renting. (The Wallstreet Journal) Renting a home or apartment in a desirable area can be almost as expensive as a monthly mortgage. So, don’t send your money down the drain paying a landlord’s rent—invest in your own property instead!
Pro Tip: We suggest buying your dream Grand Junction home when the time is right—renting your rate—and refinancing once the rates come down. To learn more about this method, contact the Janice Burtis team for details.
We recently attended an excellent webinar: Brian Buffini's Bold Predictions 2023: Mid-Year Update. Watch the replay for more information on national trends and where the market is heading!
3. Easing Mortgage Rates
The topic everyone is waiting for—when will the mortgage rates drop? Experts predict the mortgage rates to gently ease through the rest of the year, rolling into 2024.
“Be prepared to jump on a dip in rates.” – Robert Frick | Corporate Economist, Navy Federal Credit Union
“With the rate of inflation decelerating, rates should gently decline over the course of 2023.” – Sak Khater | Freddie Mac Chief Economist
“Mortgage rates will drop—with the 30-year fixed mortgage rate progressively falling to 6.0% this year and to 5.6% in 2024.” – Lawrence Yun | National Association of Realtors® Chief Economist
“Our forecast is for a 30-year mortgage rate to be closer to about 5.5% by the end of this year and drop a little lower next year.” – Michael Fratantoni | Chief Economist & Senior Vice President of Research, Mortgage Bankers Association
However, the current market is at a standstill due to a continued shortage of inventory. Current homeowners are hesitant to enter the market due to today’s increased rates, but this is predicted to change once the rates lower to a more digestible percentage. Experts are predicting the market to kick back into gear once the rate hits the mid 5 percents.
At the end of the day, the housing market—local and nationwide—is always dependent on supply and demand. We expect to see more real estate movement as rates progressively lower throughout the year, but things are looking bright once we turn the corner into 2024. If you have questions about the market or would like to discuss your real estate goals, The Janice Burtis Team is always here to assist you with your housing needs. Whether you’re hoping to beat the buyer wave or need some guidance on pricing your home, we are here to help!