"Low" home prices, low mortgage rates and soaring rents- these three factors offer the best insights why its the may be the best time in history to purchase a home. Here are 5 major factors that a home buyer should consider before purchasing a home.

 

Low Inventory of Homes for Sale

Supply is shrinking. With inventory declining in many regions including Central Denver, finding a home of your dreams may become more difficult. The best homes in the best locations sell first. If you are in the market for a home, make sure you are armed with a pre qualification letter from a reputable mortgage lender and earnest money is on hand. Be prepared to make a full price offer on the home of your dreams and assess how high you can go if there are counter offers. This is especially true of Central Denver homes for sale on the lower price points. 

 

Price Increases Are on the Horizon

Prices are projected to appreciate by over 25% from now to 2018. First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, waiting to buy that bigger home in spring will likely cost you more as the price of that home would have also likely increased. 

 

Owning a Home Helps Create Family Wealth

Whether you are renting or you own the home you are leaving in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Fed, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

 

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Interest Rates Are Going Up

Qualified first-time and trade-up home buyers are currently getting historically low rates on 30- and 15-year mortgages. Rates will not stay this low forever. The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the end of 2014. That is an increase of almost one full point over current rates.

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.

 

Thinking of purchasing a home today? I'm up to the challenge of helping you find, evaluate and negotiate the home of your dreams from a multitude of options on the Denver homes for sale list. Check out my website to search for available Central Denver homes for sale. Contact me at 303-887-0588 for all your real estate needs.