In the past few years and more than ever nowadays I get asked the following questions a lot:
- Are we in a “housing bubble”?
- What if I buy now and the market drops out?
- When are mortgage interest rates going up?
- What’s going to happen to the economy?
- Should I sell or should I stay?
I have some answers to these questions, and it turns out my opinions are backed up by a pretty heavy hitter in the world of economics!
Strong Economic Growth and No Anticipated Change to Interest Rates
This month, the TV show 60 Minutes interviewed Jerome Powell, Chairman of the Federal Reserve. They covered a lot of these topics and I encourage you to watch the full 15-minute-long segment. (Or you can watch my two-minute summary in my video above.)
The Federal Reserve has no plans to raise rates anytime soon. Additionally, they are expecting the highest economic growth in 30 years with a very strong second half of the year.
Implications for the Denver Area Real Estate Market
What this could mean for our housing market is that we will continue to see rapidly rising prices throughout the year into 2022. As I often say, it’s important to keep in mind that:
- Colorado has some of the highest appreciation rates in the country (see the graphic below). This means that over the long term, property values go up *significantly* here.
- The only time you would lose money is if you sold in a down market so just don’t sell at the wrong time.