Denver's pie in the sky; your last rent payment and a place to call home for good.
As Corcoran Perry & Co.'s content writer, I soak up home purchase knowledge like a Denver lawn soaks up water in a Colorado drought. But, despite my real estate info absorption and my affinity for the Realtors and company I work with, I still haven't bought a house.
My current abode is a 2 bedroom apartment in Stapleton and I pay A LOT of rent. Yes, I could easily pay the same amount monthly for a realistic mortgage - and I'd have a house! As a new mother, I can just picture my little one running through our sprinklers and chattering with her imagined tea party guests in our backyard. I want her to be a big sister, so at some point, we'll have to up-size anyway.
* Full disclosure: I do own a small rental condo in the city which was purchased when Denver was a buyer's market. So, I'm a property owner but live in a rental. I'll need to up-size soon to accommodate our growing family but haven't faced this type of real estate atmosphere yet!
Every factor practically nags at me to buy a home, and to buy it soon! Don't I want to make a place my own? Don't I want to stop throwing money into the jaws of the rental monster? Don't I want to grow my home equity as my children grow alongside it? Well of course! It's just that I'm a bit scared.
Why Denver real estate makes me trigger-shy:
1. Denver's shortage of homes for sale
Denver has seen record low numbers of homes on the market for several years now and that's not supposed to change in 2018. What does that mean for homebuyers? There won't be too many houses to choose from.
2. So much competition
Because of the listing shortage, home buyers can expect to face a lot of competition. In this ˜seller's market' (sellers tend to have more power than buyers right now), it's very important to put forth an appealing offer. Find an awesome agent and they'll happily help you with this! The problem is, you'll have to move quickly and may lose out on a home or two that you have your heart set on - it can be stressful.
3. Houses are just so expensive
Since the market first began its recovery after the great recession in 2013, home prices have basically doubled. Enough said.
These three realities are significant factors to consider when deciding whether or not to buy a home in Denver. And they're a bit nerve-racking. But, there are undeniable upsides to owning a home, regardless of the ˜seller's market' we're currently in.
What I've learned as a real estate writer:
1. Home prices will continue to rise
No matter when you buy, chances are you'll eventually make money on your house. The real estate market goes in cycles of booms and busts, but historically, the busts always turn back into booms. As long as you plan to hang onto your house for a while, the market has proven over the long run, you'll gain home equity.
2. If you stay in your budget, you can seriously up your quality of life
Make sure to stay within your budget when buying a home (your lender can help you with this) to avoid becoming house poor. By keeping your monthly payment within your means, you can set down roots, engrain yourself in a community, and create a space you'll love - all for about the same price as paying rent.
3. Home equity is the single most impactful wealth factor for most Americans
According to Forbes, the average American homeowner amasses 45 times more wealth over a lifetime than a renter. This is certainly something I want to be part of!
Yes, the ˜seller's market' in metro Denver holds strong, making the idea of buying a home stressful - to say the least. But, the benefits always bring me back to reality; I will buy a house in the coming year. That pie in the sky will be sliced and served, allowing my family to unpack for good.
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