Purchasing a home is always daunting, whether you’re buying your third home or entering the housing market for the first time. Is it the right time? Will the market shift? Would it be better to wait? These are questions that every buyer has asked themselves. Although the Denver real estate market is ever-shifting and everyone’s circumstances are different, let’s take a look at the facts and see if we can answer the question ‘Is now a good time to buy a house in Denver?’.
An Overview of the Denver Housing Market
It’s no secret that the Denver population has been on the rise constantly for many years. People are moving to the Mile High City from all over the country in search of a lower cost of living and the outdoor activities on offer here. The constant influx of people has led to a similarly constant rise in housing prices.
After over a decade of DMAR experts classifying the Denver housing market as a ‘seller’s market,’ it has recently been classified as ‘neutral’ as the number of active listings grows, and buyers become more conscious of potential market downturns. While prices are still high, we are seeing a slowdown in price growth for the first time in a long time.
One reason for the reduction in average selling price is certainly that interest rates are higher than they have been in recent years. While interest rates can make it feel more difficult to afford a home, it’s worth remembering that just like the recent increase, eventually, they will decrease too — giving you a chance to refinance. So, while they may seem prohibitive now, they may actually make it easier to enter the housing market since they are contributing to lower overall prices. Currently, Koelbel is offering financing incentives for many of our communities. For example, we are currently offering a grant program for Prelude buyers as a way to help make homeownership more attainable. Talk to a Koelbel Community representative to get details on what is currently being offered at the communities you are interested in.
Beyond The Numbers
With price-growth slowing and higher interest rates than in recent years, current buyers are also discovering something homebuyers in Denver (or anywhere in Colorado) haven’t had for ages — time. With the chaos of the last few years calming down, we’re not seeing the intense bidding wars and compressed buying timelines that were hallmarks of the last few years. Instead, buyers now have time to not just find a home, but to find the right home. As a buyer you’ll now find less pressure and more freedom to consider options, make thorough inspections, and settle down in a place you love without the oppressive levels of competition.
What to Consider When Buying a Home
The first thing to consider when looking at buying a house or other home in Denver is where you want to live. Explore different neighborhoods, talk to people, and be realistic about necessities such as commute times and distance to amenities and places you frequent. Don’t know where to start? Check out our communities across Denver and the Front Range and see what may be the best place for you to buy a home in Denver.
The next thing to consider is the timing of the purchase. Traditionally, summer is the most expensive time of year to buy a home, but some sources, such as HomeLight claim that any time between January through March and August through October may be the most ideal due to the amount of opportunities on the market.
Before starting the process, we recommend you speak with a mortgage broker to get a realistic sense of your budget and the possibilities available to you.
So, Is Now a Good Time?
In short, yes. The old adage of real estate always being a good investment continues to ring true to this day. Denver is an expensive market, yes, but while prices may dip a bit in the short term, the long-term health of the market is not in question — Denver continues to be one of the most desirable cities in the country to live in and right now buyers will find a calmer, more flexible market.
Koelbel offers an extensive suite of resources and support for homebuyers. Check out our post on what to expect when purchasing a Koelbel home and explore our other resources here.
Feel free to get in touch with any questions, you’ll find the contact form on our site.
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