Denver Real Estate Blog

Many buyers are still waiting for the Denver Colorado Real Estate market to bottom out. I know I’ve mentioned in several post before how certain areas have bottomed out and are actually seeing some great returns. When looking at homes for sale in Evergreen Colorado and certain neighborhoods in Lakewood Colorado you’ll see some recent sales activity that will prove this. Again, and I can’t say this loud enough, we are not in a market that saw double digit increases in home values and are not seeing those same home values drop up to 28%. The Denver Colorado Real estate market has traditionally been a good long term investment and is showing signs of turning the corner with the positive growth we have seen in the past two months.

Working with a buyer looking at Homes in Lakewood Colorado this week I was asked if waiting a few months would provide a better opportunity to capture a lower price. I referred my client to a article I wrote back in February which showed what the potential risk involved are. http://www.ddoverealestate.com/realestateblog/2008/02/22/denver-colorado-real-estate-market/  In this article you’ll see that we were looking at interest rates on a 30 year fixed rate loan as low as 5.5%. Listed below is the breakdown of the monthly payment if you bought a $300,000 home in Feburary with  20% down at the 5.5% rate we were seeing then versus waiting for a 2% drop in home values and the same loan now charging 6%.

$300,000 Home Purchase Today

• Purchase Price = $300,000
• Loan Amount after 20% down = $240,000
• 30 Fixed Rate Payment at 5.5% = $1,362.69

Potential 2% drop in Home Values 

• Purchase Price = $294,000
• Loan Amount after 20% down = $235,200
• 30 Year fixed rate payment at 6% = $1,410.14

As you can see this increased his monthly payment by $47.45 a month. The bad news is a 6% rate on a 30 year fixed would be pretty good right now. Today we are looking at rates closer to 6.5% on the same loan. With that being said he now is writing an offer on a beautiful home and has avoided any risk of additional rate hikes or higher home prices. Today’s Denver Colorado Real Estate market offers a large inventory with good values. These values are showing indications of going away in the near future. With the uncertainty of the current economy and which way loan rates are going to go, now is the right time to buy. We are in a great market for buyers but time is running out.

If you have any questions about real estate in Lakewood, Evergreen, Littleton, Golden, Genesee or any Denver Colorado area please email me at DewayneDove48@msn.com.