December 2022 market stats - Roaring Fork Valley

Jan 18

This Slack-line photo is the best representation I could find of what the real estate market is experiencing in our valley. We are flying high, the landscape is beautiful, but things look precarious around us. We are defying gravity, and we still seem to be able to find our balance. The best we can do is keep calm and move forward, one step at a time.

Inflation is calming down

It seems like inflation will give us a break. The Fed is not declaring victory yet, but is also not planning on another dramatic increase in interest rates again this year. We hear talks about (only) a quarter of a point increase at the next meeting.

The CPI report came back at a 6.5% inflation this month, down from 8% a few months ago, sign the Fed tightening is working.

Are we benefitting from a positive microenvironment in our valley?

M2 money supply as measured by the Federal reserve.

Despite the stock market correction, the amount of $ in circulation is still over 40% higher than it was in 2020. There was roughly $15,000 Billion in circulation then, and there are over $21,000 Billion now.

The stock market and crypto, offer bleak perspectives on return for 2023. The real economy looks like it will plow through and support real estate values this year. Real estate should be the favored destination for all these freshly printed Dollars.

Local stats: Inventory still dictates high prices.

Despite affordability being low, prices remain elevated. With so little on the market, there is always a buyer willing to pay.

Little or no inventory is hitting the market. This is a sign of the attraction for this asset class, despite the headwinds we are facing. People don’t want to sell. Real estate is the best place to have your money in right now.