One of the biggest concerns prospective home buyers have is whether they will lose value in their homes after they buy them. This issue became a reality for homeowners in 2008. When the housing market crashed, many people found themselves underwater on their mortgages with house values dropping dramatically. However, this problem seems to be behind us with Colorado homes experiencing significant increases in their value over the last year. That trend is expected to continue, giving buyers peace of mind.
Low Interest Rates Have Driven the Market
As the pandemic slowed the economy, fewer people were buying homes or making other significant purchases because of lost income or concerns about losing their incomes. In response, the government reduced the interest rates significantly to encourage more people to buy new homes. The reduction saw the desired results with demand for houses in Colorado outpacing availability, driving prices higher. Sellers enjoyed greater profits, while buyers took advantage of offering higher amounts without significantly increasing their payments. It has been a win-win situation for both sides.
The Highest Percentage in the Country
When looking at the appreciation percentage across the country, the region that includes Colorado saw the highest increase. While the nationwide average increase in home value for the country came in around 14.9 percent, Colorado and the other states in this region saw increases in the range of 22.9 percent, eight points above the national average. Experts are predicting an additional increase of around five percent in 2022, giving current homeowners more value in their homes and giving home buyers confidence that they are making a wise decision when they purchase a new home.
If you’re thinking about buying or selling your home this year, we invite you to contact us to discuss current housing market trends and what you can expect in the coming year.