WHY BUYING A HOME IN 2015 IS YOUR BEST RESOLUTION

Dated: 12/30/2014

Views: 1981

If you have been thinking about buying a home, 2015 may be your year.  Several economic factors are in play to make 2015 the time to make that move. 

MORTGAGE INERTEST RATES ARE STILL LOW

This narrative has not changed for years. With mortgages hovering around 4%, the days of historic low rates may be coming to an end as the economy improves.  The lowest rates in modern history were back in 2012 and have been inching up ever since.  The lower the rate, the more house you will be able to afford, it’s that simple.

THE ECONOMY IS IMPROVING

Unemployment is below 6% verses almost 10% in 2010.  Consumer spending is up and the stock market set an all-time high in 2014.  The downside of all this is interest rates raise as the economy improves.

RENTS ARE AT A RECORD HIGH

Every renter knows rents have skyrocketed over the past couple years.  Some Denver-metro areas have seen an 18% increase in 2014 according to Zillow.  The demand is still very high and there is no sign of rents lowering in the near future.  Interestingly the same research shows on average homeowners spend 15% of their income on a mortgage compared to 30% for renters.  The tax benefits and building equity that bonuses of homeownership are another reason to consider making that move.

DEMAND FOR HOMES ARE READY TO SURGE

Demand is already high for those looking to buy but will likely increase in the coming year.  With all the above factors convincing buyers to consider homeownership, prices will reflect the supply and demand in the market.  During the economic downturn, construction all but stopped creating the pent-up demand we see now.  As population increases and more buyers enter the market there will continue to be increased pressure for homes in the coming year.

IT’S NOT JUST A HOME BUT AN INVESTMENT

This is something a buyer should discuss with their financial professional but on the whole as long as you get good advice from your real estate broker and your lender, a home is a hedge against inflation.  In an inflationary environment when prices of goods and services rise, a major asset such as a home purchased at a fixed monthly cost becomes more valuable. 

HAPPY 2015!

Everyone knows that real estate prices can rise or fall depending on market conditions.  Buyers can continue to wait for the “ideal” market but 2015 will ring in low interest rates, rising rents, and rising demand which could make this a great year to make that move.

Jeff McGahey

As a Colorado native, real estate broker since 2006, and real estate investor for over 15 years I have the expertise and knowledge to help guide you and your family through the most important transact....

Want to Advertise on this Site?

Latest Blog Posts

Colorado Native Trout And Where To Find Them

Cutthroat Troutthe greenback subspecies named official state fish of Colorado in 1994The Cutthroat (Oncorhynchus clarki) deserves to be state fish, as it is the only trout that is native

Read More

Jul 5 2017 Happy Belated 4th

What a great summer in the real estate world. Denver is such a great city to be in and I have been very active with lots of great clients - showing them homes and helping them with their mortgage

Read More

Jul 2 2017 36392 1

Another great month! I'm starting to think that I have now seen every house in Denver! This past month has been a non stop showing extravaganza! I have some wonderful clients who all make this job

Read More

The Highlands Neighborhood

I grew up in a charming handcrafted home on 35th in the West Highlands. Built in 1922 by the owner of a local lumber yard.  It seemed like every house in the neighborhood was

Read More