4 reasons to buy a new home now.
If you’re looking to buy a house or condo in the Denver area, time is of the essence! There are four major reasons why you need to act fast:
Federal Reserve Chair Jerome Powell said policymakers believe they have "quite a bit of room to raise interest rates" without threatening progress on jobs or slowing the economic recovery that’s occurring.
The U.S. Gross Domestic Product (GDP) grew at a 6.9% annualized pace in the fourth quarter of 2021, which is the fastest rate since Ronald Reagan was president. In addition, the number of jobs is outpacing the number of available employees, which translates into extremely low unemployment numbers.
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- There were fewer homes for sales in Denver last year and that trend is continuing.
- Houses and condos that were available sold quickly last year and will probably follow that same pattern.
- Housing prices are likely to continue increasing due to inflation.
- The Federal Reserve has indicated it is likely to raise interest rates at least once in 2022 — and some experts are predicting that rates could be raised three or four times this year.
The reason for the rate increases
The fact that homes sold quickly because there were fewer available is pretty straightforward. What might be less obvious is how inflation and interest rates are intertwined. When the economy is struggling, the Federal Reserve cuts interest rates to encourage consumers to make more purchases. When the economy improves, then the Fed starts to nudge rates higher.Federal Reserve Chair Jerome Powell said policymakers believe they have "quite a bit of room to raise interest rates" without threatening progress on jobs or slowing the economic recovery that’s occurring.
The U.S. Gross Domestic Product (GDP) grew at a 6.9% annualized pace in the fourth quarter of 2021, which is the fastest rate since Ronald Reagan was president. In addition, the number of jobs is outpacing the number of available employees, which translates into extremely low unemployment numbers.
Make your move today
Whether you want to live in another school district, get a larger home for a growing family, or downsize into something smaller, it’s smart to start your house hunting journey now. It’s also a great idea to get pre-approved for a mortgage so your offer is more likely to be accepted by a seller.Learn more about loan pre-approvals by contacting us today.