With mortgage interest rates dropping to all-time lows, more individuals have shown interest in buying homes in northern Colorado. This is excellent news for the real estate industry that has experienced increasing housing prices and higher demand. However, it has also created a shortage of houses, making the real estate market more competitive than it has been in years. Many people wonder what this means for the coming year. The following are some of the things you should expect from northern Colorado real estate in 2022.
Rising Prices
The northern Colorado housing market isn’t showing signs of slowing down in the coming months. Many real estate agents are still reporting receiving offers above the asking price on houses and buyers compete to get the home they want. This means the prices are likely to continue to rise, at least during the first half of the year. This news is welcome for sellers interested in selling their Colorado homes soon.
Increasing Interest Rates
Unfortunately, the days of record-low interest rates seem to be waning. The government is expected to increase interest rates this year as the economy recovers from the pandemic. Because of these interest hikes, it’s expected it will have an impact on the cost of homes overall. While it isn’t expected to have an effect until at least the second half of the year, buyers will be less willing to spend more on a home if they know their interest rate will be higher.
Should You Wait to Buy?
The biggest question is whether buyers should wait to purchase a home. The answer is complex and depends on your unique perspective. Even though prices are high now, there’s no clear indication the prices will drop when the interest rate increases. There is still likely to be more demand than available homes, which can drive the higher prices. This factor means buyers who wait in the hopes of a lower price could find they get less for their money because the prices will remain high combined with a higher interest rate, resulting in higher payments.
If you’re interested in buying a home in northern Colorado, contact us to get started on the process of finding your dream home.
