Is it a Good Time to Buy in Denver?
If you have recently thought about testing the waters of the housing market in Denver, now might be the time to consider purchasing a home in the area. Although the market is cooling down, it is a buyer’s advantage this time of year. As of early September, Denver’s residential area dropped from the number two spot on the list of hottest markets, down to number three. However, buyers should not let that deter them from buying a home in the area. The only two locations ahead of Denver on the housing market listing are San Francisco and Dallas-Fort Worth, respectively. So how does this effect buyers?
The stock market turmoil at the end of August could work as a benefit for potential buyers. This factor had the potential of reducing demand of homes. Therefore, delaying a move by the Federal Reserve to raise interest rates, which would then spill over into higher mortgage rates. Therefore, individuals and families are able to receive mortgage loans with lower interest rates, which in many cases is a driving point for home-buyers. The demand for new homes remains strong and homes are staying on the market longer, nationwide. This factor favors buyers because they have the time to research homes, find the one they love, and start the process of obtaining a loan from a bank.
Although there is currently a cooling period in Denver after a frenzied summer of home-buying, the market remains tight.
But really, how does this help the buyer? There are currently less contracts going towards any one home. Typically, houses on the market have several contracts lined up; multiple individuals and families are vying for a particular home. The seller will typically take an offer higher than listed, or just below. Very rarely will a seller take anything less than what the home was appraised at, especially if there are many inquiries. However, if there is only one contract coming in on a house, the seller is more likely to accept a buyer’s offer, even if low, so they can sell the house. This is especially true if the home has been listed for a long time, or several times.
With Buckley Air Force Base in the Aurora/Denver area, there are many military families that decide to buy homes here. The typical move season for military members is during the months of May all the way until the end of September. It is especially good to be a buyer during this timeframe. When military members receive orders, they have a year or less to situate their belongings and prepare to sell, if they are owners. Because military members do not have a choice but to move when told to, it is crucial they sell their homes. In those instances, they are more likely to accept an offer quickly, especially if they are nearing the time when they have to move.
Even though the housing market is currently in the cooling period, that does not mean that anyone should be afraid of buying a home. In fact, it is a good time to begin the process of buying at this point. Due to the holidays and less moves, November, December, and January are the ideal times to purchase a home. Therefore, if you are looking to buy a home soon, it is best to start the process now since the market has cooled down and there will not be a lot of buyers to compete with.