Denver Real Estate Market
Home buyer's have an advantage with low rates and special financial incentives; offsetting rising home prices with Colorado Flat Fee Services.
Denver Real Estate Market 2016
Denver Real Estate Market
“We heard stories about people using flat rate realtors to save money, but it all sounded too good to be true. With our latest house search, we decided to give it a try. We heard John on a radio ad spot and made the call. It is true: it is too good, but not too good to be true. We received over $6600 in rebates from John on the purchase of our house with all the personal attention that we would have received had we gone through a typical realtor. In addition, with the current Sellers’ market, John was able to keep the deal moving forward, even when we thought the deal was dead: TWICE, with no help from the Sellers. Our deal was so good, that we had offers to purchase the house after the closing for almost 10% more. If you want to get a good deal without sacrificing the features; John will deliver. If you want to spend more than you should, check out those other ‘dinosaur’ realtors.”
While prices have moved up, real estate buyers in Denver have a unique opportunity to take advantage of attractive interest rates, special buyer incentive programs and a generally lower demand winter market, says Colorado Flat Fee Realty, Inc. Buyer demands decline from the spring and summer months because many are busy with the holiday season or avoid venturing out to shop for a home due to winter weather conditions. This opens up a wonderful opportunity as it leans towards the home buyer giving them an advantage in what is normally a seller’s market to purchase a great deal.
There are some reports that suggest the home pricing in the Denver area may actually be cooling down. Even if that is the case it may be directly related to nothing more than the time of year when the buying incentive slows down most likely due to the temperature drop. Often times the spring and summer months are reported to be the best time to buy; yet that is not always the case. When the weather heats up, numbers go up, thereby supporting the theory of spring and summer being the optimal time to purchase. When the warm weather returns many more buyers who have prescribed to what others deem to be the best time to buy; emerge from their winter isolation and inactivity to compete for the same property. Buyers who capitalize on the winter time home purchasing decline to purchase in the coming weeks may get a much better deal than if they were to wait until spring time when demand for the inventory will be on the rise again.
Why You Should Buy a Home in or around the Denver Real Estate Market Now?
Pricing and Personal Preference
In any type of market that has a tendency to experience relatively large fluctuations in pricing you always have people that attempt to time the market. Of course, opinions and strategies in how to actually successfully do this on a consistent basis are well, inconsistent at best. It certainly makes sense to pay some attention to the overall price action of a given market before committing your hard-earned dollars. However, real estate in most cases is much more than purely an investment.
For most people, buying a home is a decision about lifestyle and usually involves a need for more or less space depending on individual circumstances. For a family of four or five, moving from a two-bedroom condo that is extremely limited in space to a four bedroom home that allows everyone a little breathing room can have significant positive effects on relationships and daily interaction. Additionally, moving from an area with a school district that is not everything you had hoped and into a neighborhood that allows your children access to a top rated school district is very difficult to put a price on.
While pricing should most certainly be a factor in your decision-making process, it is only one factor of many. One factor involved with purchasing real estate that affects how much you actually pay for a home over the entire time period you own it is your mortgage, more specifically the interest rate attached to your mortgage. The interest rate of your home loan has far greater significance in the total ownership cost of a home than any other factor, including a 10% or 20% price fluctuation up or down.
Get shopping while Mortgage Rates are Low for Now!
Earlier this month, the Fed finally decided to raise its target funds rate by 0.25%, which attracted a lot of attention due to the fact this is the first time in about ten years the Fed has raised interest rates. However, what many fail to realize is this move by the Fed had been broadcast to the markets ahead of time and the effects of the interest rate hike have been “baked into the market” for a long time, probably for several months now.
This is exactly why we didn’t see any huge shifts in mortgage rates or nasty sustained downturns in the stock market the day after the Fed’s decision. Basically, it was a decision that had already been forecast, expected and didn’t take anyone by surprise. In fact, it would have been a huge shock if they did not raise rates.
With all that being said, you may see headlines that refer to the interest rate increase as perhaps a reason it might not be a good time to purchase a home. However, if you look at the chart below it’s easy to see based on the historical trends that rates are still very low and very attractive for those looking to purchase real estate, especially in the hottest real estate market in Denver.
While there have been several points where average mortgage rates have been slightly lower than they are today, over the last ten years, they are few and far between. Right now is still a very good time to lock-in a long-term fixed mortgage interest rate. Comparing the rate you are likely to receive in the current environment against the large majority of periods in the last ten years, you will be saving literally tens of thousands of dollars over the course of your mortgage.
Of course, rates will not stay this low for much longer. So for those looking to take advantage of low mortgage interest rates, now is the time to secure a mortgage approval and find a new home. Interest rates are headed upwards in the very near future and another move by the Fed could make a significant difference in what interest rates are available, even for those with the best of credit and financial situations. Waiting until spring could mean paying a lot more for your new home in the Denver Real Estate market.
Source of Data Provided By: www.stlouisfed.org
Rates and Price are Not the Only Factors
Financial Incentives and Special Mortgages
Interest rates and price are typically the two most talked about factors in a home purchase, but there are new programs available that can offer all buyers who choose to purchase now significant advantages, such as buyer cash back or down payment assistance programs as well as even more specialized funding for employees of certain companies or organizations that fall under the PATH program.
PATH is for employees of public agencies, Colorado public school districts, State University or Community College, Colorado judicial system, public health departments or local government entities and those that participate in the PERA retirement association. These special financial incentives are not always advertised and not every real estate agent offers them. However, if you are working with a Colorado Flat Fee Realty buyer’s real estate agent who services the Denver, Boulder, Colorado Springs and Ft Collins and surrounding areas that does offer these programs, it can save you thousands of dollars on the purchase of a new home.
Therefore, even if the Denver real estate market has experienced an upswing in overall pricing, the continued low interest rates and buyer financial incentives offered by Colorado Flat Fee Realty, Inc. can help offset those increases.
Regardless if the local real estate market is in an upswing or downturn, purchasing a home is a large commitment. Buyers should take advantage of the winter months and every savings they possibly can as it can make a big difference over the long-term. Working with one of our experienced buyer’s agent means not only finding you the right home but also making sure you get all the incentives available as well. Of course, these programs are currently available giving yet another compelling reason for buyers to consider actively pursuing a home purchase in the Denver real estate market now.
Deciding if it is the right time to buy a home is based on many factors, all of which are specific to your individual situation. There certainly is never a “perfect” time to buy for everyone, but taking the above factors into account still makes the hot Denver real estate market an attractive proposition for many new home buyers right now. In fact, there are several very good reasons listed above for buyers in the Denver and surrounding area to get active now and not wait until spring time to look for a new home.
Contact Colorado Flat Fee Realty now to take advantage of the right time to buy a home in the Denver real estate market, the number one hottest real estate market in the USA or the surrounding areas all the way south to Colorado Springs, north to Ft Collins and west to Boulder. 303 300 9660