The Colorado economy is strong and the real estate market remains healthy for reasons we've discussed in the past, even though volume of activity is as low as we've ever seen for a population of this size.
However, there is a market condition Matt and Adam discuss in this Podcast that cannot be ignored. They make reference to the physics question, "what happens when an unstoppable force meets an immovable object?"
The unstoppable force in real estate is inflationary pressure and monetary policy plaguing the national economy. Will sustained inflation continue to drive interest rates higher? Will the Federal Reserve be force to continue to raise the overnight rates? And if so, does this ultiamtely create economic slow down and job loss that cools buyer activity in real estate even further, potentially to some tipping point?
And the immovable object is the bedrock of real estate stability right now, 76% of homeowners have an interest rate and payment on their current home they absolutely love. This is keeping inventory low and that low supply ultatmely is what is keeping prices elevated.
Will this real estate health continue? Matt and Adam acknowledge the complexity of this question and work to provide the listener an answer with specific recommendations of how to protect yourself in an economy that feels more than a little shaky.
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