August 2021: Now Is a Great Time To Buy a House!
Yes, you read that right. I’m sure you’ve been hearing how tough the homebuying market has been, not only in 2021 but also throughout 2020. We have been experiencing unprecedented low inventory, most homes selling in bidding wars, prices increasing at a rapid rate, and buyers giving away all their rights under the purchase contract. This can be intimidating and overwhelming to a buyer interested in getting into the housing market. However, there are quite a few reasons why NOW is a great time to jump in.
1. Inventory is on the rise. At the end of July, active inventory in the Denver Metro Area for detached and attached residential homes was up almost 30% over the end of June. This was the largest percentage increase month-over-month on record. There were over 4,000 units on the market, compared to less than 2,000 homes on the market earlier in the year. For the first time in 2021, we have seen some buyers get under contract without bidding wars or excessive competition. We are even seeing some homes stay on the market through the first weekend. This is due to the increase in inventory and decrease in demand we have seen over the summer. Analysts are predicting a more balanced supply and demand dynamic through the end of the year.
2. Interest rates are still at an all-time historic low, which means you can buy more with your money. Even a 1% increase in interest rate can make a difference of tens of thousands of dollars over a 30-year mortgage. Currently, interest rates are still in the range of 2-3%, with some coming in as low as 1.75%. Rates will not stay this low forever, so now is a perfect time to take advantage of getting more bang for your buck.
3. Owning is better than renting. Just like housing prices, rents have been on the rise. According to Realtor.com, rental prices hit a new high in June 2021. Not only that, when you are renting you are paying your landlord’s mortgage instead of your own. As soon as you buy a home, with each passing month, you are building towards your own wealth in the future by paying down your mortgage and building equity as your home appreciates. You have to pay to live somewhere, so you might as well be the beneficiary!
4. Over time, home prices will continue to rise. During the last several years, we have seen many buyers step away from the market because they were concerned that prices were hitting a ceiling, and they did not want to buy right before a “crash.” If only
those people had bought a home one, two, or three years ago, they would be sitting on a lot of equity now! We do not know how long we will see values continue to rise in the current market or when pricing may even out. But we do not anticipate pricing going down anytime soon. We still have a lot of people across the country relocating to the Denver Metro Area due to our incredible four seasons and access to the mountains and outdoor recreation. We have a strong economy and job growth. These factors will contribute towards keeping our housing market healthy and strong. Are you a first-time homebuyer pondering making a move? Check out our First-Time Homebuyer Series here. And whether you are a first-time homebuyer or buying your tenth home, The Steller Group’s experienced team of full-time Buyer Specialists can help you to navigate this ever-changing market. Give us a call today at 720.593.9355 or contact us here.