Perhaps you've noticed the housing market in Colorado is BOOMING. I mean, you'd have to be under a rock to NOT know this. You're probably also aware that with inventory being incredibly low and with great mortgage rates, it's been largely a seller's market. So what does 2018 look like?
- Inventory is going to continue to be low. According to the Denver Post: "Homebuilders came up about 300,000 homes short of the national need in 2017... Expect new construction to fall 250,000 rooftops short of need in 2018, compounding a national shortage already of more than 4 million houses."
- Low Inventory = High Prices. With the surge of Colorado transplants, climbing economic job growth and continuing shortage of homes, the prices for homes are going to continue to rise, albeit perhaps a little less rapidly.
- Mortgage Rates are climbing. As the economy becomes more stable, the housing industry does too, and with it, mortgage rates rise. Over the last few years we've seen 3% rates, and in 2017 it hit 4%. Projected mortgage rates are expected to hit 5% by end of 2018.
In conclusion, the market is going to continue to be crazy. Buying a home is going to be harder and harder as the year progresses. With lower inventory, higher prices and higher mortgage rates, your best bet is if you're planning on buying - do it sooner than later.