DENVER (KDVR) — Nationally, firms disagree widely on what will happen to the U.S. housing market in the coming year. Locally, realtors and analysts think the Colorado housing market will keep rising in price, though to a smaller extent than the last two years.
After two years of pandemic-induced growth, Colorado’s housing market has secured a spot as one of the nation’s most expensive. Growth has slowed in the last five months, however, mortgage rates are now at 20-year highs.
Home sales have slowed and prices have come down. Prices have not, however, come back down to their pre-pandemic levels.
Economists, mortgage firms, banks and real estate companies are across the board on whether the historically tight U.S. housing market will reverse course in the next year.
Half of the firms that the Data Desk checked think that the national housing market will lose value. Some think it will lose a lot. Accounting firm KPMG LLP predicts the U.S. housing market will drop by as much as 20% in 2023 from its peak in 2022. Investment bank Goldman Sachs predicts the market will drop by 7.5%, and Wells Fargo by 5.5%.
Real estate firms don’t have a rosier picture. Real estate investment firm Amherst said the market will decline 5%, while Redfin believes it will sink by 4%. Even federal mortgage backers Freddie Mac and Fannie Mae think the market will drop between 0 and 2%.
On the other hand, the Mortgage Bankers Association predicts the housing market will grow by 0.7%, while property data firm CoreLogic believes it will grow by 4.1%. Realtor.com thinks it will rise by 5.4%, the National Association of Realtors thinks it will grow by 1.2% and Home.LLC thinks it will grow by 4%.