I talk to a lot of potential home buyers who feel like they can’t afford to buy a home in Northern Colorado. The prices of homes in the area have appreciated at over 20% over the last few years and now mortgage interest rates are climbing. This means home affordability is at an all time low. However, things aren’t going to get better any time soon. Home prices are expected to continue to rise. So let’s look at some things to think about to help you get into the real estate market.
The most important thing you need to know is that home prices are going to continue to go up. They always have. There is an old saying, “Don’t wait to buy real estate, buy real estate and wait.”
Rents will continue to rise, rates will go up and down which allows you to refinance, and demand to purchase a home will always remain high. So you should do whatever you can to get into a home as soon as you can.
The biggest opportunity that I see for renter is buying a condo or townhome. I hear from potential buyers that they want to have a yard but they’ve been living in an apartment. Why not buy the best condo you can get, live in it for two years and then use that gained equity to buy the house with a yard. Usually the other options is to just keep paying rent in that apartment.
There are a lot of things to consider when it comes to buying a home. Don’t wait for a housing bubble to burst because it isn’t going to happen. Call me to discuss what other options you might have. Also, improve your credit scores, save for a down payment and pay down your debt to give yourself the best chance to be able to buy a home.