New Records in 2021….and 2022 is Rolling…
The real estate market closed out 2021 with fireworks, that’s for sure! The Denver metro area experienced a record number of homes sold with 63,684 homes closing last year. Active listings finished at their lowest point ever AGAIN, with only 1,477 homes remaining on the market. And prices…well, they grew by about 17% over 2020!
Check out these graphs!
2022 is off to a brisk start. Demand from buyers in the home search hasn’t let off. Home inventory continues to remain thin. Mortgage interest rates have slightly risen, but are still extremely favorable for those purchasing a home. How have mortgage rates and purchase applications changed? Let’s take a look!
(While the number of mortgage apps is lower than last year, it’s still well ahead of previous years!)
Here’s what economists and research/forecasting experts say are four things we can look for in the Denver metro area’s real estate market in 2022 (just another data point for us of course, we can’t actually predict the future!):
1. Higher Mortgage Rates. NAR expects the 30 year fixed mortgage rate to reach 3.7% at the end of 2022.
2. Housing Demand Will Remain Strong. Would you believe over the last decade, the nation grew by 7%, the slowest rate since the 1930s? However, Denver grew much faster than that! 17% growth since 2010. I think we can all see that. That continued population growth will fuel housing demand.
3. Strong Property Values Will Stay High. Don’t mistake a slow down in home price growth for a price drop. In housing shortage periods like we’re experiencing right now, home prices don’t fall.
4. More Homes to Enter the Market. Some homeowners exiting mortgage forebearance may find that selling their home is the best option. Also, construction is rising in the Denver metro area and Front Range. Nearly twenty percent more single-family permits were issued in 2021 compared to 2020. Denver is a great opportunity for homebuilders. As supply chain disruptions ease and the cost of materials stabilize in 2022, we may see new construction rise even further in the area.
How can we help? We want to be your advocate and champions as you navigate purchasing or selling a home in the Denver metro area! Reach out to us today to learn more about how to find success in our incredibly competitive real estate market.