Should You Buy a House in Denver, Colorado in 2022?

Published:
May 30, 2017
Last updated:
May 3, 2022
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With steadily rising home prices, many Denver residents are now asking the question: Should I buy a house in Denver, Colorado in 2022? This article will help you get closer to making that decision.

Denver is a desirable city to live in, and the 620,000 people who live here can attest to that. But if you had a home purchase on your mind recently, you may have wondered if you should finally make that purchase in Denver in 2022. Based on the current temperature of the market, price predictions, and rising interest rates, is 2022 the right time to buy?

According to mortgage-buying corporation Freddie Mac, the average rate for a 30-year home loan sits at 5.1%. That’s quite a bit higher compared to where rates were the same time last year, though it’s still lower compared to several years ago.

Home prices in Denver have also increased quickly over the past 12 months. This means that those who postpone their home purchases until later in 2022, might encounter higher housing costs. So one could argue that now is a great time to buy a house in Denver, as we continue to head further into 2022.

Should I Buy a House in Denver in 2022?

Should you buy a home in Denver this year? There is no simple “yes” or “no” answer to this question. It’s the kind of question that must be considered on an individual basis, due to the many variables involved.

But for many would-be buyers, current conditions in Denver are ideal for buying a home. Here are some recent real estate market and mortgage trends to help you decide if you should buy a home in 2022.

1. Mortgage rates are increasing

Mortgage rates are higher now (May2022) than they were at the start of last year, as already mentioned. The average rate for a 30-year fixed mortgage sits at 5.1% during the week of May 2, 2022. 

Looking forward, analysts with the Mortgage Bankers Association (MBA) expect rates to remain somewhere around the 5% for the foreseeable future, though it remains to be seen exactly what will happen. Not long ago, the MBA predicted that the year 2022 would end off with a rate at 4%. But we’ve already shot past that point.

Live Denver Mortgage Rates

2. Denver home prices have increased quickly

The Denver real estate market generated a lot of headlines over the last couple of years, mainly because of rapidly rising home prices. That said, according to the real estate information company Zillow, the median house value in Denver rose by 20.9% over the last 12 months alone (as of May 2022). 

Home prices are expected to continue rising in 2022, though perhaps not at the same pace. 

As for the whole rent-versus-buy question, consider this. The median rent in Denver for a 3-bedroom apartment is $2,992 according to Apartment List. If you were to buy a house in Denver at the current median price of $627,189 with a 20% down payment at today’s mortgage rate for a 30-year fixed-rate mortgage, your mortgage payments would be $2,707, per month. Not only is that slightly less in mortgage payments compared to rent, the equity growth you could see over the coming years is another added bonus.

3. The Denver market is hot

As already mentioned, the housing market in Denver is hot right now. Prices in Denver have increased at a rapid rate, and are expected to increase at a healthy pace throughout the remainder of 2022. 

Denver is notorious for having home price increases that have steadily outpaced wage increases, and 2022 seems to be no different.

Now may be the ideal time to get into the market in order to get in before prices continue to soar, and while historically low interest rates continue before they start on an upward trend once again. 

First-time buyers who are wondering if they should buy a house in Denver in 2022 should pay close attention to this trend. Houses in the metro area will likely be more expensive next year than they are now. Here’s more advice for first-time buyers.

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Do You Need a Mortgage to Finance a Home Purchase in Denver?

Are you thinking of buying in Denver in 2022? Knowing how much you might pay each month will help you determine if now is the best time to buy. At Sammamish Mortgage, we can give you a personalized mortgage rate quote, along with a breakdown of your estimated monthly payments. We service all of WA, CO, ID, and OR since 1992, and have a number of mortgage programs to offer, including our Diamond Homebuyer Program. Please contact us to get started.

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