When is the best time to buy a house in Denver in 2017? When I'm asked this question, it reminds me of the time I asked the grouchy guy at the nursery the best time to plant a tree. His response, five years ago. Five years ago would have obviously been the best time to buy a house in Denver but since most of us don't have access to time travel, tomorrow is the best time to buy a house in Denver.
Between now and June, the average sales price for a Denver home is expected to increase by $40,000 with the majority of appreciation in April and May. April and May is when the most buyers will be out and we will see offers in excess of 20k over asking price on a very regular basis. Prices will reach their highest point in July, but this is from all the homes going big under contract in April and May.
Since the market has exploded in Denver, we've seen eerily similar market trends each month which makes predicting what will happen much easier and thus planning for the best time to buy easier. luckily you don't have to take my word for it and we can reference these amazing graphs provided byMegan Allen with Land Title. Megan is Denver's premier Real Estate stat market genius and the past five years her prediction for the average sales price in Denver has been within $1,000 each year, so she knows what she's talking about.
The tough part right now is there is very little inventory to choose from, I get it. The bright side is that there are also fewer buyers out there competing. The next 4 weeks will be the best time to buy in 2017 before buyers are out in force and the market takes off. I realize this isn't possible for everyone but just realize 6 months from now you might be paying 10% more for the exact same home and that doesn't even factor in rising interest rates.
If you are stuck in a lease, do the math before you decide to wait. The 3k buyout may pale in comparison to average sales price when your lease expires. If you want to save for more of adown paymentto avoid mortgage insurance, talk to a lender to see if you can qualify with less down. If your home appreciates $40k this year, there's a good chance your mortgage insurance can be removed and those 10 months of mortgage insurance you pay will be nothing compared to the equity you will realize by simply being in the market.
If you are in the market to buy a house in Denver, then I strongly urge you to accelerate your process and find something asap before the rest of Denver starts shopping in March. I feel like I tell buyers this every year and will keep saying it so that hopefully my clients can get buy soon and realize some serious equity just buy buying at the right time. And as always, make sure you are working with an experienced agent who knows how to navigate this crazy market and can help you get the house of your dreams on the first try, not your 10th or 12th.
Mic Ortega
Urban Niche Group and Live Urban Denver
303.903.3734
www.urbannichegroup.com
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