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Don’t wait to buy Denver real estate, buy it now

March 5, 2015

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Don’t wait to buy Denver Colorado real estate, buy it now

By: Don Preisser
Realtor – Colorado Luxury Homes Real Estate

Housing experts predict that a home selling for $400,000 today will most likely sell for $435,000 or more by the end of the year. The new surge in low supply (currently, only 4,000 homes available in the Denver real estate market which is an all-time low) and high demand will cause homes to increase in price approximately 8% or more.

If you are thinking about selling your home this year, there is no need to wait until spring which is traditionally the start of the housing market, as homes on the market are selling rapidly. Contrary to common belief, there is an ongoing need for homes for people relocating to Colorado, first time home owners, home owners who are downsizing, families uprooted by natural disaster and among other reasons.

Interest rates are now at the lowest levels since the 1960’s. At the 2015 Colorado Real Estate and Economic Summit, economist Elliot Eisenberg said “It is almost a certainty that the Fed will raise rates this year, albeit slowly. He said “The first bump could come as early as June”. On Monday, Mr. Eisenberg repeated “That Denver has one of the strongest economies of the country. Even falling oil prices will not dramatically hurt the local economy, because it is so diversified”.  Interest rates will dictate how the housing market responds since an increase in rates will slow down the market. This happened back in the summer of 2013 when rates jumped to 5% and the market slowed dramatically. Conversely, a few weeks later the Fed reduced rates and the housing market caught fire again. Remember that interest rates affect both buyers and sellers and the rule of thumb is that for every 1% increase in rates will generally reduce the buying power by 10%. So, for example a buyer that now qualifies for a $400,000 loan and the rates go up 1% means that the buyer will only qualify for a $360,000 loan. This may price them out of the market and the seller will have to find a new buyer for his home.

Placing your home on the market now will put you in front of the competitive Spring market, and there’s a good chance that it will go under contract quickly provided it is priced right and looks appealing to buyers. To place your home in its best light, have it pre-inspected so you know what items to repair/replace before it’s listed.  Consult with a professional Home Stager or Interior Designer who can give you advice on how to market your home to appeal to a wide variety of buyers. Declutter by donating, selling or storing items that you don’t want or use anymore so your home appears more organized and spacious.

When selling your home and moving up or downsizing to another, it is always better to be under contract on the home you are selling when making an offer on the new home rather than having the home purchase being based on a contingency. A contingency is that you must sell your home before you can buy theirs, unless you can pay cash or if you can qualify for two home mortgages until your listed home is sold. With so few homes on the market, it is difficult to make the seller wait until you sell your home. There are a large number of buyers who have already sold their homes such as those who are relocating, Millennials who have been renting and saving up for their dream home, and newlyweds who are first time buyers.

If you wait to put your home on the market when everyone else does in the Spring, you’re competing against more sellers, you may not get the price you want for your new home, buyers could get caught in an interest rate increase that would prevent them from buying your home, and you may not be able to purchase the home you want from the money from the sale of your home if you have to lower your price and then pay a higher interest rate to buy your dream home. If your new home is the last home you will ever own, why would you settle for less?

If you are interested in selling your home or buying a new home then please contact me at (303) 875-9292 or email don@coloradosluxuryhomes.com. I work as a listing agent or buyer’s agent in all price ranges throughout the Greater Denver Metro area. Please feel free to visit my personal real estate website www.coloradosluxuryhomes.com to see a wide variety of listings with no obligation or contact me and I can set up a personal property search for daily alerts of properties coming on the market or price reductions.

Don Preisser, Realtor with Your Castle Real Estate.

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