Is It Time to Sell Your Parker, Co Home?

In every market, investors and homeowners alike are trying to get a sense of the top of the market. “When can I sell my home for the highest price?” “Is the market going up or down?” are questions I’m asked all the time. Is it time to sell your Parker, Co home? While it’s tough to say, we may see the top of the market this year.

Here are four reasons why I think this year may be the top of the market.

1. Interest Rates Are Rising

While interest rates aren’t the only metric determining real estate market direction, it is part of the equation. Over the last year, mortgage applications have declined 52% refinances, and purchase applications are down over 12%, year over year. Buyers pushed through rate increases last year, but now they’re starting to pull back as rates reach highs not seen since before the pandemic.

If rates continue to increase, this will affect the demand for housing. I have seen some information that says mortgage interest rates won’t go above 4% this year, but rates are already so close to that level it’s hard to imagine they won’t go a little higher by year-end.

Here are some other factors to consider.

2. Buying Is Becoming Unaffordable

Since February 2019, there has been a 31% increase in the median home price in the Parker, Colorado, real estate market. Coupled with an interest rate increase of 31.40% since January of 2021, homes have become much less affordable. 

3. Inflation and Energy Costs

Inflation is at a level not seen since 1982, and all sectors of the economy have been affected. Food, gas, travel, building materials, durable goods, and luxury items have all gone up in price. 

Natural gas prices have been increasing steadily since 2019 and spiking here and there to give a wake-up call to homeowners, tenants, and potential buyers.

As a result of inflation, the Consumer Price Index rose from 5.4% to 6% year over year.

4. Are Wages Going Up Commiserate with Inflation? 

While the economy is in good shape, can it withstand the pressure of increasing costs? Over the last year, wages have only increased by .4%. Considering the CPI increased .6% over the same period, most wage-earning Americans effectively make less this year so far than they did last year.

So what’s this mean for the housing market in Parker? In the near term, demand for homes could slow, and the supply of homes could increase when that happens. More supply and less demand could start to put downward pressure on home values—economics 101.

If you’re thinking about selling your Parker, Co home, it may be best to consider this your year to get that done before we see a reversal in the market, more homes for sale, longer times to sell, and a reduction in home values.

I’ve been selling real estate in Parker, Co for over 20 years, and if you’re thinking about selling this year, please don’t hesitate to call me or click here for my contact page. I’ll respond personally and promptly.

Thanks for visiting!