If you’ve been living in Denver for more than a few years, you can visibly see the change in traffic and new construction appearing all around the city. More and more people are moving to
Real Estate in Colorado is in High Demand, But What Does that Mean for You?
Dated: January 8 2021
If you’ve been living in Denver for more than a few years, you can visibly see the change in traffic and new construction appearing all around the city. More and more people are moving to Colorado from surrounding states and influencing the housing market. The demand for real estate has been skyrocketing year after year. What does that mean for soon-to-be homebuyers?
Buyers Will Have a Hard Time Affording a Home
Especially for first-time buyers, it will be difficult to afford a home. As the demand increases, so do the prices. There aren't enough houses to meet demand, and sellers are typically getting multiple offers and are closing above listing price. That’s why there has been a rapid increase in new construction in Colorado. It’s tough to find your dream home, but not impossible.
The most important advice we can offer is to be patient while searching and be ready to put in an offer quickly. When a house comes on the market that you are interested in, be ready to tour and put in an offer as soon as you can. Since sellers are receiving multiple offers, you want to be one of the first to put yours in. However, with the low supply of homes for sale, be patient while searching, and don’t feel discouraged when it takes some time to find the home you are looking for.
How COVID-19 Plays a Role
Like everything in 2020, COVID-19 has played a role in the real estate market in Colorado. With more people working from home and choosing to stay in more often, housing needs are being reassessed. People may have realized the need for more space to work from home or have saved more money for a down payment during the pandemic.
The past two years have seen incredibly low-interest rates, but predictions say that those will start to increase in 2021 as well. According to an article on Zillow, “The anticipation of rising economic growth and rebounding inflation in a vaccinated world economy is already helping 10-year Treasury yields begin to rise out of the doldrums, and mortgage rates are likely to follow if that trend continues." Be prepared for this change if you are planning to buy a home in 2021.
How to Afford a Home
Taking the necessary steps to plan for buying a home is crucial in today’s marketing. You need to be flexible, creative and do your research to be successful. First, you need to know your options based on your credit score. Your credit score determines factors such as down payment and mortgages you’re eligible for. Understand your financing options before you start your search.
Regardless of your credit score, you need to be saving for the money to put down up-front. This is a massive hurdle for people because it’s daunting! Seeing 20% makes you reconsider your options. However, know that you don’t need to put down 20% to buy a home. There are several financing options available that will help you piece together what you need.
Once you start your search, know what your deal breakers are. What do you absolutely need when buying a home? Establishing these up-front will help you narrow down your search. However, be flexible and understand that you may not get everything you want at the price you want. Be willing to make a few trade-offs and compromise.
The Colorado real estate market is tough right now but isn’t impossible to navigate. Do your research, and be patient. It doesn’t happen overnight, but you will find exactly what you need in a new home. Want to explore your options? Contact The Couture Group today via phone at 303-459-2162 or email at email@example.com to schedule a free consultation!
At The Couture Group we are a team of experienced and dedicated professionals who bring a wealth of knowledge and expertise to buying and selling real estate! Holly Couture founded The Couture Grou....