Do you ever feel like the rise and fall of home prices resembles the stock market? It can seem nerve-wracking when you are looking to buy a home while the news reports contain information about falling prices. You sure don’t want to buy when home prices are dropping.
The good news is, buying a home in the Denver real estate market is not like buying and selling stocks in the very volatile stock market. Although home prices do rise and fall, you will fair far better with home ownership than returns available within the stock market. Home owners tend to own their homes for very long periods of time and can easily weather the small drop of their home values in difficult economic times. More importantly, the Denver housing market not only did not take the big hit other major market have, Denver’s housing market is now improving. New home construction starts showed a significant unexpected increase just last month. – The first sign of improvement for the building industry in over ten months.
Additionally, 30 year fixed rate mortgages are available below 5%; the lowest they have been in the past 30 years.
So why does the real estate market fluctuate? The answer is as simple as basic Economics 101 -Supply and demand. The quality of jobs contributes into the equation of determining home prices too. If there are too many homes on the market as compared to the number of buyers in the market, the prices will drop because not as many people are interested in buying a home. If there are more buyers in an area with too few of sellers, the prices will rise because more people are competing for the same home. Today in Denver, we are actually seeing a "Seller's Market" with multiple offers on many homes below the $200,000 price point.
The real estate market’s rises and falls are hard to predict. America’s current economy has created more unemployment and layoffs and sent real estate into a slow ("Buyer's Market") cycle over the past 18 months. And needless to say, home prices have decreased. The positive aspect of this is that homes across the nation, including throughout the Denver market, are “ON SALE” and it is the best time to buy a home and move up to a nicer home that we have seen in many years.
The good news is, buying a home in the Denver real estate market is not like buying and selling stocks in the very volatile stock market. Although home prices do rise and fall, you will fair far better with home ownership than returns available within the stock market. Home owners tend to own their homes for very long periods of time and can easily weather the small drop of their home values in difficult economic times. More importantly, the Denver housing market not only did not take the big hit other major market have, Denver’s housing market is now improving. New home construction starts showed a significant unexpected increase just last month. – The first sign of improvement for the building industry in over ten months.
Additionally, 30 year fixed rate mortgages are available below 5%; the lowest they have been in the past 30 years.
So why does the real estate market fluctuate? The answer is as simple as basic Economics 101 -Supply and demand. The quality of jobs contributes into the equation of determining home prices too. If there are too many homes on the market as compared to the number of buyers in the market, the prices will drop because not as many people are interested in buying a home. If there are more buyers in an area with too few of sellers, the prices will rise because more people are competing for the same home. Today in Denver, we are actually seeing a "Seller's Market" with multiple offers on many homes below the $200,000 price point.
The real estate market’s rises and falls are hard to predict. America’s current economy has created more unemployment and layoffs and sent real estate into a slow ("Buyer's Market") cycle over the past 18 months. And needless to say, home prices have decreased. The positive aspect of this is that homes across the nation, including throughout the Denver market, are “ON SALE” and it is the best time to buy a home and move up to a nicer home that we have seen in many years.
Although home inventory is declining, you still have an excessive amount of inventory to choose from in all price ranges above $200,000 throughout Denver. Good Deals and Great Deals are still out there for those who are willing to invest some time to lean their local market. If you are considering purchasing a home above the $800,000 price range, fantastic opportunities are still available.
Let me explain the different aspects which affect the real estate market’s ups and downs in the areas that interest you the most. I would be happy to also share with you specific market trends, appreciation and depreciation percentages by neighborhood and show you which communities are most likely to show appreciation within the next several months.
Let me explain the different aspects which affect the real estate market’s ups and downs in the areas that interest you the most. I would be happy to also share with you specific market trends, appreciation and depreciation percentages by neighborhood and show you which communities are most likely to show appreciation within the next several months.
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why does the real estate market fluctuate? Supply and demand. The quality of jobs contributes into the equation of determining home prices too.
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