Why the Current Northern Colorado Market Favors Buyers
It might seem like a terrible time to buy a home. But for first-time home buyers, right now could be the best time to buy.
Fixed rate mortgages trump rising rents
Rent rates increased by 13.4% That’s an additional $300/month or $4000/year. And, rents are subject to increase again. Fixed-rate mortgages keep monthly payments stable and consistent for your loan term.
Homeownership is a great hedge against inflation.
While the cost of living continues to rise, you can lock in your largest monthly payment – your mortgage.
Decreases in buyer competition results in buyer incentives.
Buyers are exiting the market, and inventory is rising. That means that many sellers are offering incentives to sell their homes. These incentives are leaving buyers with more money in their pockets.
Motivated sellers mean you can get better sale terms.
Right now, buyers have more flexibility with contracts and terms when making offers on homes. We’re seeing:
- Repair credits
- Interest rate buy downs
- Price negotiations
- A higher rate of accepted FHA and VA offers.
Home ownership now will lead to greater opportunities for you later. If you choose to buy a home now, you will have the opportunity to refinance your home into a lower rate later. You may also be able to sell your new home for more down the road and move up into your dream home. Or, if you choose to keep your home when you move up, you’ll be taking the right first steps to start your rental portfolio. There are also a lot of money saving tax advantages to owning a home (you can read about them in my blog here).
In short, this current Colorado market favors buyers, and may be a good time to get into the market if you are a first timer!
Whether you are looking to buy, invest, or sell, I’d love to work together to create the best strategy for you in this market.
To get started, schedule your free conversation here!
I'm Lauren Haug! I'm a teacher-turned-real estate agent, and I teach people how to build wealth through real estate in Northern Colorado.
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