In most situations, the housing market is weaker when prices are high and inventory is low. However, 2022 is showing the opposite in the northern Colorado market. Despite the fact inventory of available houses has been low, it’s still a strong, active market. There are several reasons for this unusual trend.
Low Interest Rates
One of the most significant driving factors in the influx of home buying in northern Colorado is the historically low interest rates on mortgages. When buyers are paying a significantly lower interest rate than in previous years, they can afford a higher price on the house they want. Although interest rates have slowly begun to climb, more buyers can purchase homes without worrying about the increase in house prices in the last year or two.
Falling Unemployment Rates
Another factor that is contributing to a stronger housing market is the falling unemployment rate. The unemployment rate is lower than it has been throughout the pandemic, allowing more individuals and families to consider buying a house without worrying about how they will pay their mortgage. As the unemployment rate continues to drop and stabilize, there will be a continued interest in buying homes throughout northern Colorado.
A Strong Pre-Pandemic Market
Although the pandemic did cause a slow down in home purchases for a period due to rising unemployment rates and other uncertainties, it didn’t have a significant impact on a housing market that was already strong. With more people spending their time at home due to working from home, they are looking for a home that best suits their needs. Despite many of the other challenges the pandemic created, it has given the housing market the gift of stability.
If you’re interested in buying a home at today’s low mortgage rates, contact us to start working with our experienced team of realtors.