What two key questions should I ask myself before buying a home in Telluride right now?

You should ask yourself: (1) Where do I think home prices are heading? and (2) Where do I think interest rates are heading? These questions help you make a confident purchasing decision by understanding the market dynamics affecting your investment.

What are experts forecasting for home prices in 2023?

According to expert consensus cited in this post, most experts are projecting home price appreciation of around 2% in 2023, though some are calling for depreciation. The Home Price Expectation Survey from Pulsenomics—which includes over one hundred economists and real estate experts—also forecasts home price appreciation over the next several years.

Are mortgage rates expected to continue rising?

Yes, though at a slower pace than earlier in 2022. George Ratiu predicts rates may surpass 7% within three months of this October 2022 post, while Mark Fleming notes that much of the rapid rate increase is likely behind us, though rates are expected to continue drifting higher over coming months.

What is driving the current increase in mortgage rates?

Economic uncertainty, financial market volatility, world instability, and higher inflation are the primary drivers of rising mortgage rates in this market environment.

Two Questions Every Telluride Homebuyer Should Ask Themselves Right Now

By Anne-Britt OstlundOctober 14, 20222 min read

Rising interest rates have begun to slow an overheated housing market as monthly mortgage payments have risen dramatically since the beginning of the year. This is leaving some people who want to purchase a home priced out of the market and others wondering if now is the time to buy one. But this rise in borrowing cost shows no signs of letting up soon.

Economic uncertainty and the volatility of the financial markets are causing mortgage rates to rise. George Ratiu, Senior Economist and Manager of Economic Research at realtor.com, says this:

“While even two months ago rates above 7% may have seemed unthinkable, at the current pace, we can expect rates to surpass that level in the next three months.”

So, is now the right time to buy a home? Anyone thinking about buying a home today should ask themselves two questions:

1. Where Do I Think Home Prices Are Heading?

There are two places to turn to answer this question. First is the consensus of what experts are saying. If you look at what experts are projecting for home prices in 2023, they’re forecasting home price appreciation around 2%. While it’s true some are calling for depreciation, most are calling for appreciation in home values over the next year.

The second spot to turn to for information is the Home Price Expectation Survey from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists. According to the latest release, the experts surveyed are also calling for home price appreciation for the next several years (see graph below):

2. Where Do I Think Interest Rates Are Heading?

Like mentioned above, Ratiu sees mortgage rates rising over the next several months. Another expert agrees. Mark Fleming, Chief Economist at First American, says:

“While mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us.”

The instability in the world and higher inflation are driving this volatile market, resulting in higher borrowing rates for those looking to buy homes.

Bottom Line

If you’re thinking about buying a home most especially in the Telluride area, asking yourself about home prices and mortgage rates will help you make a powerful and confident decision. Experts see both prices and rates rising in the future.

Want to speak with a Telluride Real Estate expert? Contact Mountain Rose Realty today so you can be guided in your entire real estate journey!

Frequently Asked Questions

What two key questions should I ask myself before buying a home in Telluride right now?: You should ask yourself: (1) Where do I think home prices are heading? and (2) Where do I think interest rates are heading? These questions help you make a confident purchasing decision by understanding the market dynamics affecting your investment.
What are experts forecasting for home prices in 2023?: According to expert consensus cited in this post, most experts are projecting home price appreciation of around 2% in 2023, though some are calling for depreciation. The Home Price Expectation Survey from Pulsenomics—which includes over one hundred economists and real estate experts—also forecasts home price appreciation over the next several years.
Are mortgage rates expected to continue rising?: Yes, though at a slower pace than earlier in 2022. George Ratiu predicts rates may surpass 7% within three months of this October 2022 post, while Mark Fleming notes that much of the rapid rate increase is likely behind us, though rates are expected to continue drifting higher over coming months.
What is driving the current increase in mortgage rates?: Economic uncertainty, financial market volatility, world instability, and higher inflation are the primary drivers of rising mortgage rates in this market environment.