The housing market has been hot for a while now, but it’s going to get even hotter in 2022. According to a recent report by Denver realtors, it will be a major seller’s market that year.
They analyzed data from the past three years and found that there is a significant shortage of homes for sale in most markets and that in 2022 they expect this to be worse before it gets better.
“This mismatch between the inventory of homes for sale and the available workforce is putting upward pressure on home prices,” said Javier Vivas, manager of economic research at Realtor.com. “The transition from a buyer’s market to a seller’s market is well underway.”
A Significant shortage of homes
The shortage of homes for sale is being driven by several factors, including population growth, low levels of new home construction, and baby boomers downsizing. As a result, prices will continue to rise in the coming years.
If you’re thinking or planning on buying a home in 2022, it’s probably safe to assume that the home you buy will be worth more than what you paid for it when you sell in 2024. “Home values are projected to rise 4.5 percent in 2018, 3.9 percent in 2019 and 2020, and 4.1 percent per year between 2021 and 2022,” said Vivas.
The fact that prices are expected to rise so much in the coming years has many would-be homebuyers concerned about taking the plunge. There could very well be a payment shock when rates start to rise again, which is why some people are still holding onto their cash until they can get a better deal.
Payment Shock
While it might be surprising that the average home price would keep rising in the coming years, when you take into account mortgage rates, it makes a little more sense. As Vivas noted, “In 2022, interest rates are projected to be more than 1 percent higher than they are today.”
While this may or may not seem like much on paper, the simple fact is that if you’re taking out a 30-year mortgage, your monthly payment will go up significantly.
If you’re already living in a home worth more than what you paid for it, then you may not feel the pain of this payment shock as much as someone buying their first home. However, for many people, this could be the tipping point that keeps them from buying a home, which could exacerbate the supply shortage even further.
Unfortunately, there’s no way to predict how big this payment shock will be by 2022, but if you’re looking for a good time to buy a new house, it might not get any better than this.
What was the home median in Denver in 2012?
The home median in Denver in 2012 was $236,234.
What was the home median in Denver in 2017?
According to Zillow, Denver’s median home price increased from $245,000 in 2012 to $395,000 in 2017. This shows that the housing market has been upward over the past several years. It also means that there are a lot of homes in Denver selling well below and above this amount.
What happened in the last three years?
According to Realtor.com’s report, it is expected that Denver’s median home price will increase by 3.9 percent in 2019 and 2020 before increasing further to 4.1 percent per year between 2021, and an additional increase of 2.6 percent is predicted in 2022. This means that in 2022, the median home price is expected to be no less than a whopping $568,000!
What are some of the factors affecting real estate prices?
According to Realtor.com, the U.S. population grew by 6 million between 2010 and 2017, which is equivalent to 2 million new residents each year on average over that period.
Additionally, the number of existing homes sold has declined by more than 30 percent since 2007, while the number of new apartments and houses being built has remained relatively flat.
All of this has led to a situation where there is an insufficient number of homes to meet current demand, which is driving prices higher.
Additionally, many baby boomers are now downsizing as they reach retirement age and sell their larger homes in favor of something more manageable. This is also contributing to the increased demand for housing.
Lowest mortgage interest rates of all time
In 2021 interest rates were as low as 2.25 percent for a 30-year fixed-rate mortgage. People who bought houses in this period were very excited to afford more homes for their money than people before them.
The lack of inventory
Expensive cities such as Denver have seen a lack of new homes built, while older homes are being bought out by people who need more room. This has been putting a strain on the housing market and creating a shortage that drives up prices for everyone.
Denver is becoming a desirable city, especially for young people starting families. The low prices and high wages available to those working in the tech industry make Denver an attractive place for these professionals to settle down.
What advice do you have for prospective homebuyers?
Rebecca P., a real estate agent based in Denver, recommends that prospective homebuyers consult a real estate agent to understand better the market they’re about to enter.
This would allow them to make more informed decisions and set realistic expectations for their budget and preferred location.
At the end of the day, mortgages will be cheaper than renting, so it is advised that those looking to buy purchase sooner rather than later as prices are likely to continue to increase.
Rebecca also recommends that people not get caught up in what is going on with the market at large, as the real estate industry can be very unpredictable, and it’s essential to know your situation.
The only advice Vivas has for those looking to buy a house is to do their research and find a good realtor.
How many people have left the Denver metro area in 2020-2021?
As more people are coming to the Denver metro area every day, some people have left because it is becoming hard to find an affordable place to live that’s close to work.
This has created a decrease in population by 0.1% from 2020-2021. The U.S. Census Bureau has not released the official numbers yet, so these are projections based on data from previous years.
Is Denver considered part of the Midwest?
Denver is considered part of the Mountain West region, including all states west of the Mississippi River.
The Midwest region is broken down into East North Central, Illinois, Indiana, Michigan, Ohio, and Wisconsin. Then you have West North Central, which includes Iowa, Kansas, Minnesota, Missouri, Nebraska, and North Dakota.
How many people are projected to move into the Denver metro area in 2022?
The population is projected to increase by over 100,000 people from 2020-2022. In 2020 the population reached 3,935,073, and in 2022 it’s estimated to be 4,035,073. These specific numbers are projections based on data from previous years.
How do you know when it’s time to buy a house?
The best way to know when to buy a house is to consult with a real estate agent. They will review your financial status and help you decide based on that.
They will also be able to give you an idea of what the housing market looks like your desired area and how long it will take for you to break even if you take out a loan.
A realtor can also help you learn about the different kinds of loans available to you and which ones will fit your budget best!
How many new homes were built between 2020 and 2021 In Denver?
In 2020, 1,734 new homes were built, and in 2021 1,768 new homes were being built. These numbers have been projected based on data from previous years. This is a decrease of 4% from 2020-2021.
Denver Vs. Boulder Vs. Colorado Springs home prices?
- Denver – $551,000
- Boulder – $900,000
- Colorado Springs – $409,000
The best city in Colorado is?
That’s a tough question to answer. Each county/ city has its own unique set of pros and cons, so it depends on what you look for in a city.
Some people might prefer Denver because it is a larger city with more amenities and job opportunities. Others might choose Boulder because it is a smaller city with a more relaxed vibe.
Colorado Springs is great for those who want to be close to the mountains. It depends on what you are looking for in a city!
Is it cheaper to buy or rent a home?
This is a difficult question to answer as it depends on various factors, such as where you live, the size of the home, and how long you plan on staying in the house.
It is cheaper to buy a home than rent one in most cases. However, this can vary depending on the market conditions in your area.
What are the benefits of buying a home?
There are many benefits of buying a home, such as:
- building equity in your home over time.
- You can take advantage of tax breaks.
- Customizing your home to fit your needs.
- You can have a place to call your own.
- You can stop paying rent and start investing in yourself!
Is Denver a good place to retire?
Denver is a great city for retirees since it has a high quality of life and an affordable cost of living. There are lots to do in Denver, from museums to breweries! It’s also close to many natural outdoor activities like hiking and skiing.
In addition, the healthcare industry in Colorado is booming right now, so there are lots of opportunities to find work.
What’s the average commute time in Denver?
The average commute time in Denver is 24 minutes. This number varies depending on where you live and how congested traffic can be during different times of the day.
What will happen in the next five years?
There’s no way to know for sure, but all indications point to continued growth in the Denver real estate market. The population is still increasing, more people are moving to the city each year, and the number of existing homes for sale continues to decline.
Once interest rates begin to rise, this could very well be a payment shock when rates start to rise again, which is why some people are still holding onto their cash until they can get a better deal.
If you’re already living in a home worth more than what you paid for it, then you may not feel the pain of this payment shock as much as someone buying their first home.
However, for many people, this could be the tipping point that keeps them from buying a home, which could exacerbate the supply shortage even further.
Unfortunately, there’s no way to predict how big this payment shock will be by 2022, but if you’re looking for a good time to buy a new house, it might not get any better than this.
Where will Coloradans move to in 2022?
The most popular states for Coloradans to move to are:
Phoenix is one of the most popular cities in Arizona that people like to visit all year long because the weather is great the majority of the time.
Salt Lake City is another trendy city that many people would like to live in because of the friendly people, diverse population, and fantastic culture.
Living in both Salt Lake City and Phoenix is more affordable than in Denver, so it’s no surprise why these cities are so popular among Coloradans.
These two cities also have many job opportunities, which helps to attract more people to relocate there.
Florida is a prevalent state for retirees because the weather is warm all year round, and there are plenty of activities to do.
Texas is also a trendy state for people to move to because it has a lot of job opportunities, and the cost of living is relatively low.
California is a top-rated destination for people who want to experience city life. Los Angeles and San Francisco are popular cities that people love to live in.
