Barry Kunselman | 303.887.0588 | Contact Barry


If you’re looking to buy your Denver home in 2022, you’re likely to balance several factors. Because both mortgage rates and home prices have risen this year, it costs more to buy a home than it did just a few months ago. But that doesn’t mean you have to put your plans on hold. Buying in 2022 has its advantages.


Buying a Denver Home in 2022


2021 was record-breaking in every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis. 

As you've seen on social media, 2021 buyers were submitting offers a hundred thousand over list price, taking on full appraisal gap, taking the house in as is condition giving sellers free rent back. It was costing a lot of money for anybody to buy a house and it was a super crazy year. In 2022 buyers have a greater chance to buy a house. 


Yesterday i was looking at a mountain house that went $40,000 over list price was which is higher than I'm typically seeing in the mountain houses.

In 2021 they're going $50,000, $100,000, and $200,000 over list and so we're seeing the bidding wars calm down quite a bit.


We're not seeing these huge appraisal gaps and if they have them, they know that they don't need to use them because we have comparable homes to support the market value. because we're not seeing the big uptick um because we had such a strong spring that we have comps now that the appraisal gap coverage isn't needed like it used to be. 


There's still a ton of demand in the market. Millennials are the biggest demographic in the United States. Compared to the baby boomers they are a larger demographic and they're starting to have kids.

Even though the Fed in the background is increasing rates to really crush cost of goods, appreciation/inflation, there's still this large force in the background that's going to create this steady environment.


2021 was extreme with interest rates as low as they were, it was like throwing fuel on fire where we had a strong market and the fed just wanted to you know come out of covid with a strong economy. With lack of foresight understanding that that we're going to have to pay the piper here eventually. That's what we're now seeing. This is not going to be a great recession because there's no fixed rate loan right now and the average homeowner has two hundred thousand dollars in equity.

During a recession there is there is a retraction in the economy people will lose their jobs, but they have options. They can sell their home and they don't have to give it up to foreclosure which impacts the whole neighborhood. We have seen that play out, so I believe we're coming around that corner where we're no longer in that reckless situation that we were in in 2021 that just wasn't sustainable it's now a much more controlled healthy environment even though like pulling the band-aid off is painful.


I put an offer together last week that went under contract, and I was like, oh this is a great offer. We're not giving everything away.

  • We can negotiate the inspection.
  • We don't have an appraisal gap.
  • It was a comfortable offer to write that protects my buyer that if something happens, they don't have to come out of pocket for a furnace. They don't have to come out of pocket for a low appraisal.
  • The offers that I've written recently I really enjoyed writing them because there's some protection for the buyer in this market.


Now is a better time to buy than it was a couple of years ago. Yes, interest rates are slightly higher, but it also gives buyers a lot more options. There's more inventory on the market they can write offers that aren't going to break the bank.

Something that was never in the picture last year is somebody being able to buy a house without their house being sold. If a house has been on the market 30 days and it's at higher price point and the buyer needs to sell their house at a lower price point (which we know is going to sell quicker) they could go in buy that higher price point house and say we'll give you a full price offer just give us two weeks to sell our house. Any seller that has their house on the market for 30 days is going to love that offer, so we call this the contingent offer option.

These offers, I believe, are going to start taking place and it's going to be a lot easier for these move-up buyers to get a property. A year ago if your house weren't sold you wouldn't have bought a house. Back then you were extremely stressed out because you had no idea if you were going to find a replacement house in two months

Now, with this slower market it's going to give buyers a lot more options for those move up buyers.


Interest rates are about double what they were last year currently, which sounds terrible but we're still below historical averages. The historical average of the 30-year fixed is seven percent. We're between six and six and a half right now. 

The average life of a loan, depending on the rate, is four to five years. If you buy a home at an imperfect rate, it's okay. Colorado Mortgage can help you dynamically manage the loan you're in. What that means is a refinance. If we do go into a recession again it's not going to be a housing recession, it'll be an economic recession. Rates tend to come down, so if you buy at let's say 6.25 percent, rates come down to 5.25% that that can directly benefit you as a new homeowner bringing your monthly payment down.



In 2021, you buy a house at a hundred thousand over list PRICE, you do an appraisal gap of fifty thousand dollars, you buy the house in as is condition, you have to replace a furnace that's ten thousand dollars, etc. In this market you're not doing that. You're getting about $160,000 in savings being able to write an offer where:

  • you can negotiate inspection items 
  • you don't need the appraisal gap
  • you're not going over $100,000

Interest rates are slightly higher than they were you know a couple of months ago, but you also get $160,000 savings because you're not making that crazy offer that all of us agents were losing sleep overnight.

If you’ve been thinking about buying a home this year, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation.

If you’re ready to get started, let’s connect so you have expert advice on your specific situation when you’re ready to buy a home. Call 303.887.0588 or email