You get two Highlands Ranch real estate forecasts. Our first forecast presents flat to gradual home price growth over the next 12 months. Our second forecast, based on the effects of economic changes, presents home value increases or declines over the next 24 months, depending on how the economy changes and importantly, your specific Highlands Ranch neighborhood. You see three potential outcomes within your second forecast.
Based on what will likely happen in the Highlands Ranch real estate market in the next one to two years, should you sell or buy a home now or wait out the market for better conditions and opportunities?
Current political actions (and talk and threats and reversal of threats and new threats) are creating massive uncertainty and hesitation in the housing market. Buyers are scared and sellers are scared and builders are scared. Professional economists don't want to go on record with published forecasts and the Federal Reserve is taking no actions, instead riding out the market to see what might happen.
In spite of all of this uncertainty, we're offering you here two Highlands Ranch 2025 to 2027 real estate market forecasts. Your first forecast, which is based on the extrapolation of market conditions continuing similar to how they have been the last three years, albeit at a slower increase in values, in general demonstrates flat to slightly increasing home values. Your second forecast, which is a regression based analysis, offers you three scenarios for every neighborhood in Highlands Ranch based on 1) lower inflation and interest rates, 2) moderate inflation and interest rates, and 3) greater inflation and interest rates. View your specific Highlands Ranch neighborhood for the four forecast outcomes in Your Highlands Ranch Professional Real Estate Dashboard at the bottom of this article.
Your regression based forecast varies greatly by specific neighborhood in Highlands Ranch. Why? Shouldn't the Highlands Ranch real estate market move as one market? No. The rather complex regression analysis offering three potential forecasts for each neighborhood in Highlands Ranch, demonstrates that each neighborhoods values vary greatly based on changing economic conditions.
Which economic conditions are you using? Each neighborhood was separately analyzed and forecast using: 1) inflation rate, 2) mortgage rate, 3) unemployment rate, 4) national association of home builders confidence index, 5) personal consumption expenditures index, and 6) real earnings. As an example of the economic effects on home values, the importance of these variables for just one outcome for one individual neighborhood is given here.
So, why would my neighborhood respond differently to changes in these economic factors than other neighborhoods in Highlands Ranch? Money.
As a slight generalization, neighborhoods with $1,000,000 to $5,000,000 home sales are less affected by mortgage rates (rich guys pay cash) or unemployment rates (who needs to work when you're rich). Whereas, neighborhoods in the $400,000 to $700,000 home price range suffer substantially when interest rates are high and employment is low. At least this is what the regression analyses demonstrates—with high valuation accuracy.
One last question, why do home values often seem to increase as inflation increases? Some (some) inflation is good for real estate values, especially those in neighborhoods where loans are just an option. But for those of us needing jobs and loans, at a certain threshold too much inflation means our loan rates are going up and the prices of homes are going up, and we've got to walk away from buying due to affordability issues. Then the forecast takes a nosedive.
Before deciding if you should sell or buy a home now or within the next 24 months, click your specific neighborhood on the dashboard below to see your custom forecasts. All forecasts were custom created for each individual neighborhood within Highlands Ranch.
