Wow, Real Estate in the Denver Metro Area went from 0 to 60 pretty darn quick. We are showing property pretty much every day, and have a handful of great new listings coming up in the next few weeks.
We have helped a bunch of great folks score some really nice digs in the past few weeks (like the Ferry family, below - how cute are they?!), and we are seeing deals with multiple offers, and many properties are selling in less than 60 days within 5% of the original list price.
I have a bunch of great information to share, as well as photos from some of the tours that we have been going on -- and some words of wisdom (yes, I said that) for both buyers and sellers, so watch this space and I will spit it out as soon I can grab a few minutes in between meetings, showings, and of course, kid-running!
In the meantime, I wanted to share this great article from MSN Real Estate today...Waiting for Bottom Could Cost More
No one knows when home prices will hit bottom, and
the reality is that it won't happen everywhere at the same time.
Even if you have a great crystal ball, the state of the real-estate market should never be the determining factor in deciding when to buy a home. More important are the state of your finances, the state of your job and how long you intend to live in the area.
But if the time is right for you to buy, you may be better off acting now rather than waiting for the bottom of the market. This is why: While home prices may fall, interest rates almost surely will rise, and the two factors together will determine how much you actually pay. With higher interest rates, you could end up paying more for a cheaper house.
Alison Paoli of the Zillow blog offers three scenarios for a typical home she calls 100 Main St.:
- Buy the home for $300,000 in November 2010 with an interest rate of 4.1%: Monthly payment is $1,159.
- Buy the home for $294,600 in January 2011 with an interest rate of 4.7%: Monthly payment is $1,222.
- Buy the home for $276,924 in January 2012 with an interest rate of 5.1%: Monthly payment is $1,285.
Not only are interest rates rising, fees for loans are increasing as well, starting March 1 for Freddie Mac and April 4 for Fannie Mae.
Other factors, such as negotiation and supply and demand in your chosen neighborhood, will affect how much you pay for the house. Factors such as your credit score will affect which interest rate you actually pay. The ones we report are averages.
But both price and interest rate are important when calculating when to jump into the market.
Emily Trinks, writing at Zillow Real Estate Research, has some additional calculations. She tells would-be buyers:
With so much talk about when and where the real-estate market will hit bottom, it's easy to forget that the home prices are only one part of determining how much buying a home will actually cost. We get caught up looking at the moving parts independently and often forget that, like airline seats, neighbors might be paying vastly different amounts for practically the same product.
Read more: Good Time to Buy in Metro Denver
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