If you’ve watched the housing market over the last several years, you have seen the increase in demand and the low inventory problems that have plagued many areas of northern Colorado. However, you may be left wondering what dynamics are shifting the housing market and creating this situation. The following are three factors that have led to a high-cost, high-demand housing market.
One of the biggest driving factors in the current housing market situation is the interest rates. These rates hit an all-time low during the pandemic as the economy struggled. However, with the world coming out on the other side of the pandemic, these interest rates are slowly beginning to rise back to pre-pandemic levels. While things seem to be slowing down, there is still a significant push among buyers looking for a home to buy before interest rates rise further.
Spring and summer have always been prime times on the housing market, particularly in northern Colorado. No one wants to move in the cold, snowy winter months. However, as spring gives way to warmer weather, individuals and families make moving a priority. Because the spring season is upon us and summer isn’t too far behind, it’s not presumptuous to assume there will still be a higher demand for houses for at least the next several months.
The Millennial generation is approaching the age when many people start looking to buy their first home. This factor is increasing the usual demand for homes that northern Colorado experiences every year. As the largest generation on record, it’s no surprise that many of them will be looking at the housing market sometime between 2019 and 2023.
If you’re interested in finding your ideal home in northern Colorado, contact us to start working with an experienced real estate agent.