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One sign of the cooling real estate market are For Sale signs outside homes, an indication realtors are no longer overwhelmed by prospective clients. e shift comes as mortgage rates — the amount of interest people pay on their home loans — ticked steadily upwards in recent months, making housing that’s been rising in price for the better part of a decade even costlier. e only light at the end of the tunnel lately could be a slight drop in interest rates. But a drop in home prices might not be in the cards, one metro-area realtor says.
“I think it’ll be a small increase throughout the rst half of the year and then potentially a small decrease the last half of the year,” said Andrew Abrams, a real-estate broker in Denver who has rental properties in Je erson County.
But, overall, home prices are expected to keep going up, Abrams said.
As it is, the market is stagnating. Not only are there buyers like the Storinskys playing a waiting game, but many prospective sellers don’t want to leave behind the cheaper mortgage payments they clinched before, likely on mortgage loans with lower interest rates.
“Sellers are hesitant to sell at a lower price than their neighbors from last spring and leave their low interest rate behind, and buyers are afraid what the future will bring in terms of interest rates and home prices,” opined Kelly Moye, a Realtor in the Boulder and Broom eld area, in a statement.
A short break in price hikes
A deeper dive into the data shows that the median, or typical, price of a Denver area single-family home has seen a seven-month decline. e price sat at $587,500 in November — still eye-catchingly high, but just a 1.3% increase from a year earlier, according to the Realtor association’s December report.
By contrast, in December 2021, the change in median home price was up a whopping 18.3% from a year earlier.
Something to keep in mind is that fall months typically see a slowdown in price growth and home sales each year. But the degree of the slowdown since March “has been more dramatic than normal seasonality, and I think that is dictated by interest rates,” Abrams said.
It’s a calculation that means big changes for families looking to buy homes. Take, for example, a $600,000 home with a 20% down payment.
If the mortgage interest rate sits at 6.5%, the family’s monthly mortgage payment would be about $3,700, Abrams said. On the other hand, at the 3.5% rate locked in by buyers in years past, the mortgage monthly payment would be $2,800.
Feeling priced out
And so the Storinskys’ strategy to cash out while the market was at a high has come with a down side. ey were “originally looking at around $650,000, but interest rates the way they are, we’re probably down into the max $600,000. But probably, more realistically, $550,000 to $575,000 is where we’ll end up,” Stephan Storinsky said. e Storinskys are scouring the north and west metro area for a home – Lakewood, Arvada, Wheat Ridge and part of Westminster.
Danielle Storinsky, 31, a legal assistant, and Stephan Storinsky, 35, a utilities technician, said they’ve been more fortunate than many people in the market.
But the homes he and his wife have seen don’t seem worth it. e listed pictures of a place may “look great,” but in person leave something to be desired, he said.
“I’ve lived here my whole life, and I’ve seen what houses have sold for,” Stephan Storinsky said. “So for me, it’s just not worth it.”
“It’s hard to compete with people from out of state who come from California” and bring large sums of cash, he added. “Seems like you’re pricing the locals out of market.” e Colorado Association of Realtors de nes the seven-county Denver metro area as Adams, Arapahoe, Boulder, Broom eld, Denver, Douglas and Je erson counties. e association’s latest report is based on November data.
Long-term price drop unlikely, Realtor says
Abrams takes issue with predictions that raise the specter of a housing market crash.
“I disagree pretty strongly, and I think the practices that were done before the Great Recession are dramatically di erent than the market today,” Abrams said, adding that “the lending practices back then were just not nearly as strong.”
Before the Great Recession, banks were giving loans to people they knew couldn’t keep up with them, Abrams said.
Another di erence: Fewer houses are on the market today, Abrams said.
In metro Denver, there were about 7,300 homes on the market as of Nov. 1, but in 2006, there were about 3 1/2 times more homes available, Abrams said. ough it’s tough to predict the market amid concerns over in ation and interest rates, the metro Denver housing market could behave in a more stabilized way in 2023.
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www.edwardjones.com Member SIPC New homes in Elbert County are shown on the county’s website, where a notice is posted seeking a consultant to assess the
county’s housing needs. PHOTO FROM ELBERT COUNTY WEBSITE
Stephan Storinsky
A sign calls attention to a home for sale Dec. 5 in southeast Denver.
PHOTO BY ELLIS ARNOLD
Several houses and businesses participated in lighting up properties with enormous displays.
In past years, the city councilors and mayor have been the judges for the annual contest. For 2022, the chamber took on that role. is year’s judges were chamber members Kristel Acre, Brian Biehm, and Jen Bell. e Copper Kettle Kitchen took home the rst-place business award with whimsical Christmas storybook characters. Coyote Creek Golf Course lit up the green winning second place business award with a colorful light display. e residential rst-place honors went to the house on 442 Kahil St., with lights covering the roof with Santa Clauses and the Grinch stealing the show. Second place residential winner is the house at 2235 Coyote Creek Dr., with colorful lights trimming the house, tree, and driveway with frosty snowmen, the Grinch and a reindeer display. e residential Mayor’s choice award went to the house at 1125 Birch Ave,. lit up with candy canes, Santa on a motorcycle, and trees trimmed with colorful lighting.
The Copper Kettle Kitchen, won the fi rst-place business award.
PHOTO BY BELEN WARD
Coyote Creek Golf Course lit up the green winning second place
business award. PHOTO BY BELEN WARD
Second place residential winner is the house at 2235 Coyote
Creek Dr. COURTESY OF FORT LUPTON CHAMBER
SEASONS GREETINGS
Fort Lupton Public Library sta and volunteers gather around Santa Claus Dec. 3 at the library’s Cookies and Cocoa event. The event brought kids to Fort
Lupton for an early chance to meet with Santa. SAMANTHA MARKEY PHOTOGRAPHY
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BY BELEN WARD BWARD@COLORADOCOMMUNITYMEDIA.COM
Weld County seniors will have an easier time getting to the grocer, doctor visits and other errands next year as a new transit program debuts, e Board of County Commissioners approved the new public service program that provides free transportation for underserved 60-plus rural Weld County residents. e service is available to seniors living outside Greeley, Longmont, Brighton, and Firestone. e services provided are through the Community Development Block Grant program.
“ is agreement between the county and 60+ Ride marks a vital milestone for this project,” Commissioner Chair Scott James said. e 60-plus ride provides transportation for Weld County older adults, the elderly, and the disabled to medical appointments, grocery stores, bank and government institutions, social events, and more. ADA van drivers will be hired to pick up residents, according to o cials.
“60+ Ride has been providing innovative comprehensive care that goes above and beyond transportation,” said Commissioner Lori Saine. “ ey provide a connection for communities, especially seniors aging in place. is newest program adds to their capacity to provide more services to our communities with additional needs.”
According to o cials, the board approved the project for $68,775 for services running from December 2022 to May 2023. e larger cities have funding through the U.S. Department of Housing and Urban Development (HUD) to optout of participation in the Weld County community block grant program. e City of Firestone is already using the community block grant funding for its VIa Mobility Services.
