This sounds like a pressure tactic however it truly is not! It is URGENT that buyers act sooner than later if they want to have the opportunity to own a home in Colorado!
The reason its best for buyers to act sooner than later
is due to the staggering value appreciation!
These value appreciations range by sub markets however we have seen ranges from as low as 8% to 12%! Financial Advisors commonly state that disciplined savers will save 10% of their annual income. Imagine an average home price of $367,000 that has a 10% value appreciation in the next 12 months, a buyer would have to save $36,700 to buy the same house in twelve months! This creates an urgent situation for home buyers who are now priced out of the Colorado housing market!
Since 2010 the prices have risen for all types of homes in Colorado. This has been driven by basic supply and demand-a very high demand paired with a very low inventory. The diversification of our employment market has created a steady migration of people moving to Colorado for these jobs-94,000 in 2016 and 101,000 in 2015! This steady migration has created an ongoing demand for housing in Colorado-both homes to purchase as well as rent-and the inventory has not been able to keep pace.
The good news is: programs are available that can help buyers become home owners!
There are two prominent programs being used by many buyers currently. The first of these programs is a government grant that covers the down payment costs for the buyers of either 3.5% for an FHA loan or 5% for a Conventional loan. In addition, CHFA is a program that offers buyers the ability to receive funds to cover the closing costs-which easily range from 3% to 2% depending on the fees charged by the lending institution the buyer securing the loan through. If a buyer can secure funds from both the grant and CHFA all the buyer must pay is for the due diligence fees; the inspection & the appraisal! These fees tend to range as low as $1,000 to $1300.
Let’s compare this to renting a home or an apartment in Colorado. Most property managers and landlords are asking for first and last month rent plus a security deposit and in many cases a pet deposit. The average two bedroom, two-bathroom, apartment is renting for $1880. If we calculate the first and last month rent fee alone that will add up to $3760!! Add in a deposit, let’s say $1000 for this example, and that rental has now cost $4760!! It has cost the client $3,760 more dollars to buy than rent!
NOW truly is the ideal time to buy a home and enjoy the benefits of homeownership!