Most home buyers may have a general understanding of this hot Denver market, but let's break it down to the nitty gritty. With a perfect storm of home buying factors colliding in Denver at the moment, it is easy to see why, you too, should get in the market ASAP.
1) Interest Rates
Interest rates are incredibly low right now, but are going up. An interest rate can significantly change the amount you pay monthly for your mortgage and the amount you pay in total for your home.
For example, if you purchase a $250k house, put 20% down, and get a regular 30 year fixed loan for the remaining balance, your home will cost you a total of $399k at the end of 30 years at our current interest rate of 4.13%. Say the interest rate goes up to the national average rate of 8.52%. At the end of your 30 year loan, you will have paid close to $605k! That is almost double what you would pay if you bought now. The fact of the matter is, low interest rates save you a ton of money in the end. And they are super low right now.
2) Increasing Home Prices
Home prices are rising, and they don't look to be slowing down any time soon. With such a limited inventory in the Denver area, a huge increase in population each year, and investors scooping up everything they can, home prices are going to continue to rise. It looks like waiting to buy will most likely hurt your wallet, not help it. Most experts agree that the Denver market will keep this momentum for at least a few years.
3) Limited Inventory
As the city's population grows, the city grows. Meaning that neighborhoods that were once undesirable due to their distance from downtown, now become the new hot neighborhood as people are priced out of more centrally located areas. This is going to continue to happen, so snatching up a property in one of the neighborhoods close-ish to the city's center now, will surely be a very strong investment as the city continues to expand.
4) Crazy Rental Market
The Denver rental market is crazy... like totally, and completely mad. It is likely that your mortgage will be significantly lower than your rent. And putting money towards an appreciating asset of your own always feels better than paying someone else's mortgage!
5) Job Growth
The Denver job market is rapidly growing, with companies moving from the coasts to set up office's in the area. With cheap labor, and lower business costs, experts expect the city's growth to continue, increasing the value of homes in the metro Denver area.
Hopefully you now understand the buzz and excitement about the current Denver real estate market. It's an exciting time to live in beautiful Denver, Colorado and a good time to get into this market before the rest of the country discovers our little secret ;)
Please contact Jenna Hamel at Dwell Denver Real Estate with any questions or Denver real estate needs:
jenna@dwell-denver.com
www.dwell-denver.com
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