Despite widespread speculation among economists about an impending recession in the middle of 2023, the official announcement has not yet been made, as highlighted in this Denver Post article (source: https://www.denverpost.com/2023/01/14/denver-economy-recession-real-estate-agents/). However, the lingering uncertainty surrounding the economy and market fluctuations often leads individuals to question the potential impact on the housing market. It is crucial to dispel a common misconception that the real estate market inevitably crashes during recessions. In order to provide a more accurate understanding of the behavior of the real estate market, we sought insights from several reputable real estate professionals in Denver who possess a deep understanding of the market's dynamics on a daily basis. Here is what they had to say.
Stephanie Plost Realtor with Corcoran, Perry & Co had this to say.
I serve all of the Denver Metro areas. Having lived in Colorado for over a decade I have familiarized myself with different cities and neighborhoods that make up the great Denver region. To answer the question.
“What can potential home buyers & sellers expect with an impending recession?“
In light of the potential economic downturn, it is reasonable to question the strength of the real estate market. However, historical trends suggest that even during recessions, the demand for real estate remains relatively stable. This is particularly true for highly sought-after locations such as Denver, where the number of homes for sale has dropped significantly over the past year. These trends indicate sustained demand for housing in the area. Also, if interest rates decrease as expected, it could further stimulate the real estate market, making homeownership more accessible for potential buyers. Every recession is unique, it is important to keep your eye on the economic indicators and reach out to your local Realtor to stay informed.
“Believe it or not, we are in a recession!” Sasha Romanoff Realtor with Keller Williams Advantage Realty
Yes, that can be scary to think about, but it does not have to be. My name is Sasha Romanoff with Keller Williams Advantage Realty, LLC. I guide buyers and sellers with their real estate needs in Denver Metro and focus on Lakewood/Golden/Arvada, along with the Lone Tree/Highlands Ranch/Parker areas.
When talking to other professionals in the real estate industry, I have found a common theme that they are comparing this recession to the crash of '08. This is seen as a good thing for those in the Denver metro area because we were not hit as badly as other states and cities nationwide. However, each recession is different. What do I mean by this? Ultimately, we don't know exactly how this will play out and that does not truly matter. What matters is how you prepare for the recession. My advice would be to get your finances in order and create a plan. Most people don't think about the abundance of opportunity that presents itself in a recession and I want to empower you to be one of those people! If you are curious about what I mean by that, give me a call at 508.523.1573, and let's chat!
Cache Nies - Mortgage Advisor with Intercap Lending
Offers his insight. “Did you know that since the early 1930s, the US has experienced 14 recessions, on average occurring once every six or seven years? While the economy shrinks in every recession, not all are created equal. While some are short-lived with relatively small GDP declines, others leave us feeling like we've been hit by an asteroid -- like the Great Recession of 2008. Contrary to popular belief recessions are not always necessarily a bad thing for housing. In fact, over the last 14 recessions housing appreciation stats stand at 73-7-1. That’s 73 years of appreciation, 7 years of depreciation, and 1 year of stagnation. “Pretty good record if you ask me.” Not to mention during recessions we investors flee from risky assets such as stocks and put money in more secure assets such as treasuries and mortgage bonds. So it’s reasonable to think that we should see more rates start to come down as inflation gets under control. As rates come down, we will see competition increase to limit this already very tight inventory environment we have in housing. This will open the door to multiple bids, waiving contingencies, and shortening timelines. However, on the flip side of that as a homeowner, this will open the opportunity for both rate & term, and cash-out refinances. As the famous saying goes “Don’t wait to buy real estate, BUY real estate and wait.” Cache provided this article on tips to get the best interest rate when shopping for a home. "How To Get The Best Interest Rate"
Here is what Jessica Anderson - Realtor with The Moxie Real Estate Team EXP had to say.
As the real estate market in Denver prepares for the potential impact of an upcoming recession, Jessica Anderson, an agent with the Moxie real estate team, shares her insights on what home buyers and sellers can expect. Serving the Denver metro area, Fort Collins, and Loveland, Anderson believes that while a recession may introduce some challenges, the local housing market is positioned to weather the storm. "Historically, the Denver market has shown resilience during economic downturns," says Anderson. "During a recession, home buyers can expect increased affordability as prices may stabilize or experience a slight decline. This presents an opportunity for buyers to enter the market or upgrade to a larger property. Sellers, on the other hand, may face a more competitive landscape with potentially longer days on the market. It becomes crucial for sellers to price their homes strategically, highlight unique features, and ensure optimal presentation to attract buyers in a more cautious environment." Anderson recommends that both buyers and sellers work closely with experienced agents who can provide valuable guidance tailored to the specific market conditions. While the housing market may experience adjustments during a recession, Anderson remains optimistic about the long-term prospects for Denver and advises buyers and sellers to stay informed and adapt to the evolving market dynamics.
In summary, while the potential recession poses uncertainties, the insights from some of Denver’s top real estate agents, and mortgage advisors proves that the Denver real estate market has shown resilience in previous economic downturns. Buyers may find opportunities for affordability and upgrades, while sellers should strategically price and present their homes to attract buyers. Staying informed and adapting to evolving market conditions will be key for success in the Denver real estate market during this potential recession.
Whether you are a First Time Home Buyer, or an experienced Investor, looking to take advantage of a Cash Out Refinance our team of experienced professionals is here to help!
Media Contact
Company Name: Intercap Lending: Cache Nies, Mortgage Lender
Contact Person: Cache Nies
Email: Send Email
Phone: (760) 851-6706
Address:215 Union Blvd Suite 210
City: Lakewood
State: CO, 80228
Country: United States
Website: https://www.intercaplending.com/loan-officer/cache-nies/?loan-officer=cache-nies
