WHY TO BUY PROPERTY NOW
Now may be the best time to buy property in a generation. Here are just a few reasons why:
Your purchasing power is at an all-time high.
With rates at historical lows, home financing has never been so attractive. Buyers can lock in 30 year fixed rates in the mid-4s, ARMS in the mid-3s. See this chart to grasp the impact of low rates on your payment (even offsetting price reductions greater than we are expecting locally):
A large inventory of competitively priced homes exists.
The media has focused much attention on the nation's foreclosure situation. A primary effect is an influx of distressed properties on the market, expected to continue for at least the next year. This addition of homes to the supply can both stabilize prices and provide buyers unique below-market opportunities. In plain language: there are some great deals out there.
Despite the recent downturn, real estate is a great long-term investment, and Colorado has a solid track record of appreciation.
Compared to investing in the stock market, real estate has performed better over the last 10 years. In addition, Colorado didn't experience the bubble in home prices like the troubled parts of the country. The graph below shows the investment performance of real estate versus the S&P 500, a good measure for the stock market.
Source: FHFA home price data
This was in an article from Elsa Wohlford with Premier Mortgage Group. If you need a good mortgage person let me know and I will connect you with her.
If you want to brainstorm about the Denver Metro Real Estate Market please contact me. I love sharing my knowledge.