Is Denver real estate doomed? Is this sky really "falling" on Denver real estate?
In this Realtor's opinion the answer is NO...but we sure have slowed down a lot - as most of Denver real estate sales are "off" target from last years sales by about <28%>.
Only Highlands Ranch, Thornton and Erie remain the same -or showing sales increases. Is there an explanation for this? Well let's think about that...
There still remains two big problems for the Denver real estate market. First, there are less people able to qualify now with the tightening of the underwriting rules & qualifications for mortgage lending. With no more zero down loans and harder to qualify FHA and conventional loans - more people CAN'T buy - even if they wanted too! Second, everybody seems scared to death with the economy, the price of gas and other expenses going higher! Consumer confidence is definitely hurting the Denver real estate market.
But, is this very logical - and does this make sense in reality?
The answer is no! The reality is that you're going to neither have to rent or you're going to have to buy. You get a tax deduction when you own a home you get zero when you rent. In many neighborhoods it's pretty cheap to rent, but the stuff you're renting is pretty crappy. Nobody seems to care of their cars depreciating at record rates... but so many people are convinced they should still wait before they buy. Why the insanity difference here?
Savvy buyers are snatching up houses left and right at very low prices - and at very low interest rates! Why aren't you? Many homes for sale in the Littleton real estate market, Highlands Ranch, Parker, and southeast Denver and Southeast Aurora are selling in less than 30 days on the market - if they're priced correctly! Ugly homes and unremodeled homes are taking forever to sell - go figure...!!! But there are still many bargain homes out there if you still hurry! There certainly isn't anything wrong with a 5.875% 30-year fixed-rate loan - and I just did a 10% down investor loan at 6.625% for another client who just bought a foreclosure deal!!!
The only question for you is - how long are you going to keep sitting on the fence?
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