It is not exactly a secret that the real estate market has undergone a lot of turbulence during the past few years. The coronavirus pandemic led to a significant slowdown in the real estate market, as many people had to avoid interacting directly with others. Furthermore, the pandemic saw a significant rise in remote work, so when the real estate market started to heat up again, many people were interested in moving to the suburbs. Now, with inflation a major concern, interest rates are rising, which is changing the real estate market once again. What are some of the most significant trends you need to think about regarding the Colorado housing market in 2022 and beyond?
Houses Are On the Market for Longer
One of the biggest trends that people are noticing is that houses are staying on the market for longer. In the past, it was common for houses to have dozens of offers on their first day on the market. Even though there are still situations where houses might receive an offer during the first week, houses are staying on the market for a significantly longer amount of time in 2022. This is likely to continue in 2023, as interest rates are no longer as low as they used to be. Not as many people are interested in buying a house right now, which is why houses are on the market for a longer amount of time.
Multiple Offers Are No Longer Common
As alluded to above, many houses received dozens of offers on their first day on the market. There are some situations where a house might still receive multiple offers, but it is highly unusual. Because there are fewer people interested in buying a house, there isn’t as much bidding going on for homes. The perfect house might still get multiple offers, but bidding wars are likely to be a thing of the past. This could make it easier for people to buy a house, but it makes it harder for someone to sell a house above the list price.
Interest Rates Are Rising, Changing Buyer Demographics
In addition, interest rates are rising, which is changing buyer demographics. Anyone who needs to take out a substantial loan for a house might have a difficult time affording a house in the current market. Because interest rates are so high, many buyers are having a difficult time qualifying for a loan, particularly if they are interested in buying a house for the first time. The smaller the down payment is, the bigger the interest component of the loan payment will be, which makes it harder for young buyers to afford a house. As a result, many people who are interested in buying a house today or able to pay cash (or mostly cash), which is leading to a shift in buyer demographics.
Inventory Is Going Up
One of the biggest consequences of all of the issues above is that inventory is going up in Colorado. During the past few years, there has been a historic low in the housing inventory available in the local area. Now, inventory is slowly beginning to rise. Even though it is still significantly less than it usually is, there are more houses for sale. This could benefit people who are able to afford a house in the current market, as they may be able to find the right house to meet their needs. If you are interested in selling your house, you should accept a cash offer that can keep more money in your pocket.
Sell Your House Fast To Purple Mountain Holdings
If you want to sell your house fast, we can help you. We are Purple Mountain Holdings, and we buy houses in the local area. We buy houses in any condition, and it would be our pleasure to make an offer on your house today. If you decide to accept our cash offer, you can sell your house quickly while avoiding expensive closing costs. The end result is that you get to keep more money in your pocket. Contact us today to figure out how much your house is worth, and let us help you save money on the sale of your house!
