As the year begins, I am being asked what does Buying a Home in NoCo in 2022 look like?
There are often times I wish I had a realtor crystal ball. Actually, let’s throw out the crystal ball and get a time travel machine. I would love to pop into April or May of 2022 and see what the market looks like. If only I was friends with Elon Musk or someone else that is likely to perfect this time travel machine.
Alas, I just have to look at predictions, what the market is doing, what happened last year in the NoCo market and other market factors.
Looking at these there may be two things that effect the market for buyers this year.
Buying a home in NoCo in 2022 – 2 Things to Keep in Mind
Inventory Levels – Our inventory levels are still very low. Yes, it is Winter, and this usually happens but even for winter we are low, low, low, low. For those of you that are set up with me on a home search you know this. You are likely stressing or have a little anxiety about not finding homes where you want to live. Some good news is we will see inventory start to pick up, this usually happens after the super bowl. We are nearly there!! While our inventory levels stay low, competition will remain strong.
Interest Rates – This one can be both bad and good news. If you haven’t heard, interest rates are set to climb in 2022 after historically low rates in 2020 and 2021. Let’s start with the positive. As interest rates climb this does take some buyers out of the buying pool. It can also help to bring stability to home prices (note this does not say HOUSING CRASH). This can help lessen some of the fierce competition. The bad news is, if you have been saving and saving for a home and you are nearly there, interest rate increases will affect your monthly payment. If you are right on the border of affording a home this could knock you out, depending how far they climb.
Where to Go From Here
I do see home prices continuing to increase in NoCo in 2022. I think as long as our inventory stays tight, competition will still be strong and we will still have multiple offer situations and homes going above asking. Towns like Fort Collins, Windsor, Johnstown and Berthoud have become very popular and these four towns in particular have seen significant home price rises over the past 12 months. Some of the smaller towns like Evans, Severance, Milliken that are a bit further from I-25 may be more affordable options.
New builds can also be a great option, yes you may not be able to move in straight away and there are some builder delays, but you are often building great equity in this market. You get to lock in at a current market price which is set to rise, giving you instant equity when you move in!
If you are right at the cusp of your budget for purchasing a home right now, you may want to jump into the competition before interest rates climb. If you have a little more padding in your budget and mortgage affordability, waiting for more inventory may be a better option for you.
Let me know how I can help if you are thinking of buying a home in NoCO in 2022!
I'm Haley Bartlett and I am here to help your real estate transitions go as smooth as possible. From helping you with home staging to setting you up at the beginning of each week to make our transaction run smoothly. I am here to help!
9800 Pyramid Ct, Suite 400, Englewood CO 80112
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