When we are asked, “how’s the market?” it’s a long answer. It’s complicated. There has been a noticeable shift, but why exactly are things changing, and what does that mean for you as a buyer or seller?
The primary reason why things are changing boils down to inflation. Inflation happens when the supply and demand chains are in an unhealthy balance. Too many dollars chasing too few goods means your dollar will not go as far as it did in the recent past. As you’ve likely noticed, everything including merchandise, gas, and the price of groceries has increased substantially, bringing inflation to a 40-year high. When inflation gets out of hand, there are a few methods the Federal Reserve uses to slow it, their main tool is to raise interest rates. Their goal being to slow the economy enough that inflation comes down.
For the real estate market that means a few things will inevitably take place. Many non-cash buyers will be pushed out of the market, not able to afford the additional cost of a mortgage with a higher interest rate. With fewer buyers on the market, inventory will expand and buyers will have more options again. This will likely lead to a slight slowing in the housing market, and we could see home prices start to lower a bit.
Now, before you get discouraged, take note, that this still is not a bad time to buy or sell. In fact, if you look at the history of real estate in Laramie County, you’ll see a consistent trend in the market. The value of real estate in our area has reliably increased year by year. Even through the 2008 recession, there was only a slight slow in the market, causing home prices to dip a little before returning to their previous momentum in 2010.
Another reason to maintain confidence in Cheyenne is the fact that our economy has a foreseeably optimistic future with the upcoming F.E Warren missile silo upgrades bringing in a wave of new residents to the area. The demand for housing, infrastructure, and goods will help businesses thrive and continue to bring new ones to town.
Even though times are less certain than they were a few years ago, we believe it is still a great time to buy or sell. The Cheyenne real estate market will be greatly protected from economic hardship. Although some buyers will have to navigate higher mortgage payments, a wider selection of listings will mean more choices and a less competitive journey to getting an accepted offer. While the multiple offer scenarios have eased, and houses might sit on the market a little longer, sellers can rest easy knowing the list-to-sale ratio is still close to or at 100%.
Whether you are ready right now, or just considering your options, call us at (307) 635 0303 to see how properties sold in your area may have changed your portfolio.