A frequent question I am asked is “What do you think the housing market will do”? Go up, do down .. if I had the answer I would be a very rich woman! The media gives us differing opinions whether it be the market is tanking so wait for it to tank further, or ‘buy now or forever hold your peace’. If you are looking to buy a home in Denver for yourself, there is never a right or wrong time .. homeownership has lots of advantages. So what is currently against us?
*Job growth is weak
* Foreclosure sales are still a high. A foreclosure has a 90% chance of selling compared to a regular sale were current market indicates that only a third will sell
* Consumer confidence is low
However if you need a bit more reassurance, let’s look at these facts:-
• It is much cheaper to buy than rent. Mortgage rates, which fell to 4.55% for the week ending June 2, according to Freddie Mac, are near 50-year lows. And good luck in this crazy Denver rental market .. rental prices are being pushed up as demand increased
On a property like the one you see below right, you can expect to pay around $250 more a month in rent than owning a home (based on 5% down and mortgage rate of 4.55%)
• According to an article in the Wall Street Journal, the number of distressed properties is due to fall in 2013 which is great news for neighborhoods whose prices have been affected by foreclosure
• The number of ‘household formations’ is predicted to rise causing a demand for homes. It is anticipated to grow by 64% from figures in 2008 and over 108% in the next decade
• You can deduct mortgage interest off your taxes
• You get to dictate what colors you want on your walls, and any other remodeling you want
• According to Standard and Poor;s Case Shiller index, home prices did drop 5% in Denver from April 2010 – 2011 and could drop slightly if distressed homes continue to hit the market. However showings are up and ‘highest and best’ is becoming a common practice in today’s distressed property market
• There are proposals to increase the minimum payment on FHA loans from 3.5% to 5%. Click here for more information
If you feel the time is right, let’s go look at some homes for sale in Denver. You could just look back in a few years and realize you have made one of the best financial decisions of your life.
Sources : Wall Street Journal