Buyers, Let’s Buy a House

Buyers, Let’s Buy a House

  • Victoria Merchant
  • 09/14/22

I had a great weekend with some friends, they came over, and we all enjoyed it- had some good food, laughed a bunch, the works. It was a great way to end last week and bring in this one. Tag’s been super busy, which makes me super busy. But I’ll take it. Idle minds and all that. 

The Airbnb is blowing up! So many takers! It’s cool, but I’m like, can we ever go and enjoy it? Pricing is the only thing that gets tricky. I’m going to use Price Labs, a pricing tool, to help me figure out how to handle it, and I’m sure that will make it all go smoother and take the guesswork out of it for me. 

Fall is totally in the air, and I can’t get enough of it. Although, doesn’t it kinda feel like winter just ended? It’s gonna be snowing up here in like a week; I just know it. Grrr. Or should I say, brrrr? Winter. Is. Coming. 

My Real Estate Status

I had two closings last Friday, one land and one house. They went well. And I still have my fancy listing in West Ranch; we’re setting up a broker open for next week. My Littleton listing in Chatfield Bluffs is still available, too. Things have definitely cooled off but the best way to describe it is ‘normalizing.’ That 2 years were really unhealthy!

I have nothing under contract at the moment, but I just picked up a few buyers, which I’m thrilled about because it’s a great time to buy a house in Colorado! 

Yes, we have inflation issues and a shifting market, but it’s okay, don’t be scared. Real estate is an excellent investment if you plan to sit on it for a while. If you wanna take the plunge, reach out, and let's discuss. 

Current Denver Area Real Estate Market

Greater Metro Denver experienced a pop of activity following the lull of Labor Day Weekend. Active inventory is beginning to decline which tightened our months of inventory by 0.2 at 1.4 MOI.

I continue to track showings each week and we are holding fast at approximately 2 shows per property per week across Metro Denver, with 13 showings to go under contract.

Three Things Buyers Can Do in Today’s Housing Market

It’s clear the 2022 housing market has been defined by rising mortgage rates. With this, it’s also become more costly to purchase a home. According to the National Association of Realtors (NAR):

Compared to one year ago, the monthly mortgage payment rose to $1,944 from $1,265, an increase of 53.7%.”

If you’re thinking of buying a home or have been trying to recently, that’s a significant increase in a monthly mortgage payment – and it may be causing you to press pause on your plans. This jump is making homes less affordable, especially compared to the last two years when mortgage rates were at historic lows.

The good news is you can navigate today’s housing market and this rising rate environment with a few simple tips. Here are three things you may want to consider to help make your homeownership goals a reality.

1. Expand Your Search Area and Criteria

If you’ve been looking for a home in the city center or a specific area that’s starting to feel out of your price range, you may want to try looking a little further out in a location that could be more affordable. Expanding your search location or re-prioritizing the items on your wish list can open up opportunities you haven’t considered, which could help you afford more of what you need (and want) in a home. 

As CNET notes:

Area growth is likely to keep pace with the market, which means that the outskirts of town might be hopping within five years. Consider stepping out of your ideal location by searching in the nearby cities. You may find better prices and more square footage.”

2. Explore Alternative Financing Options

Working with a trusted lender to learn about the different loan types and options is essential too. 

According to Nerd Wallet:

A variety of mortgages are available with varying down payment and eligibility requirements.”

Experts know how to point you in the right direction when it comes to exploring ways to find the best home loan for your situation. With rising mortgage rates making it more costly to finance a home today, there may be an ideal option out there that your loan officer can introduce to you. This could make a home purchase more affordable and within your financial reach over the life of your loan.

3. Look for Grants, Gift Funds, and Down Payment Assistance

There are also many options available when it comes to securing the funding you need to purchase a home. One valuable resource to explore is Searching for specific down payment assistance options available in your local community could be a game changer when it comes to taking your first step toward homeownership. 

As NAR indicates:

Many local governments and non-profit organizations offer down-payment assistance grants and loans, targeted to area borrowers and often with specific borrower requirements.”

Plus, there are programs and special benefits for individuals working in certain professions or with unique statuses, including teachers, doctors and nurses, and veterans.

Ultimately, that means there are many federal, state, and local programs available for you to explore. The best way to do that is to connect with a local real estate professional and your lender to learn more about what’s available in your area.

Bottom Line

If you’ve been searching for a home and have found yourself stepping out of the process because you’re worried about rising costs, let’s connect. Having a team of local advisors on your side may be just what you need to guide your search in a new and more affordable direction.

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If you have any real estate related questions, are interested in having a 'no-strings' valuation done on your property, or would like to see some Colorado mountain homes, don't be afraid to reach out!