What’s Ahead for the Grand Junction Housing Market

Surging mortgage rates have put some much-needed pressure on the hot housing market in recent months after home prices hit record highs across the nation. But as mortgage rates have begun to decline in recent weeks, many economists are mixed about whether home prices will continue their slow decline through 2023–or crash.

The nation’s overall housing supply remains limited, as those who purchased homes in recent years at extremely low mortgage rates are staying put. This tight inventory has kept prices from seeing deeper declines, making homes still unaffordable for many, especially first-time homebuyers.

Even though home prices remain high year-over-year, they’re not as eye-popping as they were earlier this year. How far home prices dip in 2023 will likely depend on where mortgage rates go.

Many housing insiders warn buyers against trying to time the market as the economy wades through its current period of uncertainty.

After a couple of red-hot years for the housing market, there are indicators a correction is underway, but it’s been slow-going. Mortgage rates are still more than double what they were the first week of 2022 and home prices are more than 6% higher than a year ago, making it harder for would-be buyers to access affordable housing.

The median existing-home sales price was $379,100 in October, up 6.6% from a year ago but down from the record high of $413,800 in June, according to the National Association of Realtors (NAR). Still, the higher housing costs have taken a toll on home shoppers as mortgage applications are at their lowest level in 25 years, according to the Mortgage Bankers Association (MBA).

Total existing-home sales dropped 5.9% from September to October, marking the ninth consecutive month of declining sales, as home shoppers were “squeezed out of qualifying for a mortgage,” said Lawrence Yun, NAR’s chief economist, in the report.

But that could turn around soon.

“Mortgage rates have come down since peaking in mid-November, so home sales may be close to reaching the bottom in the current housing cycle,” said Yun.

Should I Buy a Home Now or Wait?

Buying a house—in any market—is a highly personal decision. Because homes represent the largest single purchase most people will make in their lifetime, it’s crucial to be in a solid financial position before diving in. Contact our team to start planning your real estate goals for the new year!