Taking advantage of the opportunities available in Denver’s Real Estate market means knowing where the deals are. The Denver Business Journal reported on February 26th that prices Denver home Sellers received for their homes were down 4.5% in 2007, but that this decline was less that what has been seen elsewhere in the US.
For those looking to take advantage of the price reductions in our local market, the key is learning what areas are now Denver’s best buys.
Clearly not all homes in Denver depreciated 4.5% percent last year. Some areas depreciated more and some significantly less, with a few neighborhoods even gaining in value.
Knowing your investment goals will help you identify a property that’s a great investment for you.
Buyers I am working with tend to be doing one of the following: taking advantage of the downturn to become a homeowner; taking advantage of lower interest rates and prices to “move up” while keeping their payment fairly level; and last, buying rental properties to hold for the long term.
While many Buyers have been shut out of the market with the loss of sub-prime lending programs, plenty of new Buyers with good credit but little to put down are enjoying great interest rates and low down payments offered by FHA. Oftentimes, the minimum down payment requirement of 3% is covered by the Seller as an incentive to buy in this market.
Current homeowners who did not experience the property appreciation they expected to are finding they can still move up, because of lower interest rates and the fact that the homes they are moving up into have not appreciated wildly either. Meeting with a lender is the first step in learning what your new payment will be for a more expensive home and what you will need to bring to the table to keep it in the ballpark of your current mortgage payment. Keep in mind that while you may be asked to lower your sales price or contribute funds to the Buyer, you can expect to ask the same of your Seller.
Foreclosure is a fact of life in this Real Estate market and it means a bubble in the Rental market. Fewer will qualify for loans now than in recent years and these people will be looking to rent—either because that can’t buy in the first place or because they lost their home in foreclosure. Learn about using 401K plans to help fund a Real Estate investment and renting through Section 8 or other rental programs that can make renting easier.
Here is 2007 Home Sales Data by Price Point and Area. Prices are holding steady in some areas and have dropped fairly significantly in other areas. Consider what your purchase goals might be, get professional advice on the best way to fund your purchase and begin looking. A more secure financial future may be just around the corner! For more information, I can be reached at (720) 275-3926.
Area, Average Price, % Change
AUN, 106,924, - 24%
AUS, 206,138, - 4%
DHL, 372,329, + 4%
DNE, 202,498, - 6%
DNW, 241,566, >1%
DSE, 514,319 + 26%
DSW, 135,534, - 23%
DEP, 357,255, - 4%
JFC, 256,473, - 6%
Monday, March 31, 2008
Subscribe to:
Posts (Atom)