Colorado Association of REALTORS | Interest Rates a Likely Variable in 2022’s Denver Housing Market
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Interest Rates a Likely Variable in 2022’s Denver Housing Market

Dec 28 2021

Interest Rates a Likely Variable in 2022’s Denver Housing Market

Higher interest rates could be the only big change in Denver’s forecasted real estate market. Prices may increase a bit but should temper due to lack of inventory for consumers to choose from. “Not since October of 2020 has there been even one full month’s worth of inventory on the market and not ever before have we seen a winter with less than half that like we’ve seen in 2021,” said CAR Spokesperson Matt Leprino. Higher interest rates may also prove to be another reason that price increases slow, but it could be a few months to a few years before that happens. According to CAR spokesperson Kelly Moye, “Interest rates will likely go up and with that, purchasing power will diminish. In an already expensive market, that could push buyers away from Colorado and into more affordable areas,” Moye said.  “That may just be the beginning of balancing our market again but that will take a few years for the market to react to that adjustment. I expect we will see another strong market and the challenge for buyers here will remain. However, I think it will be tempered with the rising interest rates and lack of affordability in our area. I think we’ll see appreciation but not as much as we saw in 2021.”

https://www.bizjournals.com/denver/news/2021/12/28/colorado-housing-trends-2022-expectations.html

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