Aspen Real Estate Market Forecast 2023

Are you thinking about buying or selling Aspen real estate in 2023? Are you wondering how the current state of the Aspen housing market impacts the value of your home? The local housing market is always changing and evolving, but this article will quickly compile all of the facts in order to get you up to speed on where things currently stand and how they might change in the future. 

Home prices in Aspen are trending slightly downwards compared to last year. According to the latest data from the Aspen Board of Realtors, Aspen homes sell for a median sales price of $11 million. Homes are also spending an average of 145 days on the market within Aspen, which is much higher than the 37 days seen in early 2022. Prices are cooling off, with the median price representing a 24% drop compared to prices seen in February 2022. The inventory of Aspen homes for sale has also risen by 15% over the past year. That said, approximately 90.4% of properties are still selling for the original asking price. In addition, sold listings throughout Pitkin County have dropped by 36% from February 2022 to 2023, with the number of days on the market rising by 19% and inventory rising by 2% in the county.

It’s clear that the market tells tales of cooling off, with many buyers hesitant to enter the housing game. When discussing the market fluctuations, it’s also worth mentioning that the strong market activity of the past two years set the bar rather high for what anyone could have expected heading into 2023. 

The market is slowing down after a prolonged busy season that took place immediately following the pandemic. When COVID-19 first hit in early 2020, interest rates quickly dropped as the Federal Reserve searched for the best possible response. This caused buyers to come out in droves to shop for homes across the country in the hopes of locking in a lower monthly payment. Sales prices rose exponentially as a result of the increased demand for real estate, and many sellers found that they were still able to command multiple offers with waived contingencies even when listing their homes for a much higher price.

Things began to slow down in 2022, however, and Aspen isn’t the only housing market across the nation where prices are beginning to drop or stall out. High interest rates and heavy inflation have many people questioning if this is the right time to buy a home. Thankfully, your agent will be your expert guide to buying or selling in any market condition.

Nobody knows. The Federal Reserve has expressed a desire to lower interest rates sometime during the next few years. They believe that this would create a more favorable environment for all involved. It is likely that interest rates won’t drop until inflation gets under control, and it’s hard to predict when this might happen. The good news is that past trends show that rates tend to drop back down to past averages rather than remaining at a higher point. 

Temporary economic setbacks rarely have a long-term effect on property values. A recent study showed that home values have outpaced inflation over the past century by nearly three percent. This is encouraging news for homeowners, as it means that home values are actually growing and not simply keeping up with inflation. Keep in mind that the past 100 years included multiple serious economic challenges, such as the Great Depression of the 1930s and the housing market crash of 2008. Despite these setbacks, the housing market was able to rebound and return to a position of strength. 

Despite the cooldown of the housing market, there are still several reasons to believe that the market is in a strong overall position. One key statistic that isn’t always talked about is the mortgage delinquency rate. Industry leaders believe that the mortgage delinquency rate tells a greater story about where the market currently stands. A higher mortgage delinquency rate would suggest that the market is in deeper trouble. This may signify that the market is better off than what rumors may lead you to believe. 

According to the National Association of Realtors, the market is usually most active during the late spring and early summer. There are a number of reasons why more buyers are looking to purchase a new home at this time. Tax refunds usually come back before the end of April, and prospective buyers are interested in using the extra cash to fund their down payments. Families with school-aged children are eager to move when the school year gets out. Activity stays strong through September before cooling down in October. By the end of October, the market is pretty quiet. Homes still sell during the winter, but not at the same rate as in the summer. That said, your agent will devise a solid selling strategy that gets results in any season. 

Buyers will benefit from lower average sales prices. Plus, purchasing now gives you a chance to lock in a sales price while maintaining the flexibility to refinance a loan later on. Sellers will benefit from average sales prices that remain significantly higher than they were a few short years ago. They may wish for the days when multiple offers were common, and prices were constantly rising, but they will still have a good chance to make a strong profit if they choose to sell now. 

If you have more questions about the current state of the Aspen real estate market, reach out to leading agent Lisa Hatem for top-notch guidance. With extensive expertise in the local housing scene and record-breaking sales backing her, Lisa is ready to provide outstanding service and dedication. She would feel honored to have the opportunity to serve you.