Here’s what we can expect from Colorado’s real estate market in 2022.
If you thought last year was crazy, buckle up for another wild ride. Today we want to give you a market forecast for northern Colorado’s 2022 market.
First, prices will likely continue to rise. Last year, we saw about 20% appreciation across the market. While things may not be that intense this year, it looks like we’re in for another year of double-digit appreciation.
Why are our prices rising so high? The biggest issue is our low inventory. Our supply is about as low as it has ever been, but demand remains high due to a myriad of factors. One thing we have our eye on this year is if we’ll start to see pent-up demand from the pandemic enter the market. We suspect many folks have sat on the sidelines waiting for the pandemic to end, but with no clear end in sight, more people may figure they may as well enter the market now instead of later.
We also think you should keep your eye on new construction. Builders are completing homes as fast as they can, but it’s hardly making a dent in our supply issues. We could have an influx of new homes in the next three years, and it still might not be enough to meet our high demand.
If you’re looking to buy, keep an eye on new construction.
As for our low interest rates, it looks like they may finally be increasing. Experts predict that rates will increase to 3.6% or even 4% by the end of the year, so if you’re looking to buy, consider stepping into the market before they go up.
Finally, we expect cash to be king once again. Cash is always preferable, but in our hot market, it has become even more important. If you can’t buy with cash, you have options, and we’ll cover what you can do to compete in a future video.
If you have any questions about today’s video or anything else, please call or email us. We are always willing to help!