They say that the only thing that you have to fear is fear itself these days, and that’s especially true in the real estate market in Denver, Broomfield, and Thornton. Specifically, you shouldn’t be afraid of buying or selling a home in this market. Yeah, there are a lot of talking heads out there that are spreading doom and gloom about buying or selling a home right now, but they are motivated by selling the most clicks and views, not by actually delivering the truth. The truth, you see, isn’t always as interesting of a story over the doom and gloom headlines. Sometimes the truth is plain and simple and it’s really not the end of the world. This week, read on through this blog as we explore the actual pros and cons of buying or selling a home in the Colorado real estate market.
Don’t Listen To Scare Tactics
There are people out there that are trying to scare people out of investing in this market because they are seeing a crash on the horizon because mortgage rates are going up. Mortgage rates fluctuate with a lot of macro economic factors and their going up doesn’t always mean a crash is incoming. But, you can sell more newspapers if you tell people otherwise! This type of crash just isn’t going to happen because there are not enough homes on the market for a crash. The inventory just isn’t there and neither should the fear.
Refinancing And Low Inventory
Over the last two or so years, lots of people were refinancing because of low mortgage rates. At the same time, their incomes went up, so now they are sitting in their home with low mortgage payments. According to Logan Mohtashami at Housing Wire: It all started when mortgage rates jumped from 5.25% to 6.25% this year and I saw how home sellers reacted to that move.
They aren’t moving because to buy again now is more expensive. This is one of the reasons why inventory is going down. In other words, people are pretty happy with their lower mortgage, well valued home, and knowing that it is a seller’s market which inspires confidence in home ownership overall. This also means that if you do want to sell, now is a great time because there is still relatively low competition in the marketplace.
Build And Diversify Your Portfolio
This could actually be an ideal time to invest in real estate because fewer people are buying and rents continue to rise. You also aren’t going to be fighting off a lot of competing cash offers (finally!). You can really take your time when shopping around for the best deal for your budget. Do not be scared to buy because historically the mortgage rate is still low and there are more options because home prices are starting to go down.
For The Road
Doom and gloom sells, but reality is much more optimistic and provides excellent opportunities for those who have the patience and the knowhow. Wondering what your home is worth, if it is the right time to sell, or maybe investing in real estate? Give us a call! We are happy to help you put a customized wealth building strategy together or just answer questions you may have.