The Winter Slowdown—Is it Real in 2023?
Conventional wisdom says that the winter, with its snowy weather, busy holidays, and school vacations, is not the ideal time to buy or sell a house, but this year especially you might be able to benefit from bucking the trend.
Market trends are complex, and it pays to be aware of how they are coming together. Typically we see a more quiet market until after the Super Bowl (February 11, 2024), but two years ago the Denver market saw things pick up much earlier in January.
It’s always tough to predict the future, but there are some indicators that you might want to be prepared in case trends shift in your favor as a buyer or seller this winter.
Winter Buyers and Sellers are Motivated
If you didn’t have to buy or sell a house, then you can afford to wait and time your transaction for traditional busy times like the summer, but we all know that life happens, and ideal timing is rarely the case. Whether it’s changing jobs or shifting life circumstances, there are always people who need to buy or sell a house yesterday.
Also, with so many buyers and sellers following that conventional wisdom and sitting out of the winter market, you can also benefit from a less crowded marketplace and therefore a less frothy bidding market.
Of course, that’s provided there’s enough inventory …
Denver Currently Has More Inventory than Usual
Mortgage rates have been at a 10+-year high since the middle of 2022, which has put a damper on activity and resulted in some listings staying on the market for much longer than we have been used to seeing in the Denver area.
As we approach this winter, that means more inventory than a typical year. With many potential buyers paying more attention to holiday shopping and vacations and parties than the market, you could sneak in under the radar.
Of course, mortgage rates are still high, so you’ll want to make sure you’re paying attention to those as well.
Mortgage Rates Don’t Have to Drop Much to Speed Things Up
If mortgage rates drop 1%–2%, that could be enough to bring more buyers to the market. Will they drop? If I knew that answer for sure, I’d be a very important person!
If you’re thinking of buying then it is It’s worth considering how different mortgage rates affect your purchasing power. Keeping an eye on how they are moving will allow you to be a bit ahead of the curve instead of waiting until February.
So, is the winter slowdown real in 2023? Maybe, but also maybe not as slow as usual, and maybe not slow at all.
The lesson to take is that if you’re looking to buy or sell, being prepared can help you take advantage of a busy time when others don’t have their eyes on the prize.
If you are considering buying, here are a few steps I recommend you take:
Check in and update me on your thinking so I can be on the lookout.
Get pre-approved
Take a look at houses that have been on the market for >90 days
