I work in both Denver Residential Real Estate and Property Management and deal with a large variety of clients on a daily basis. Many of the renters I know are trying to buy their first home and they are getting frustrated with the challenge of getting a home in the Denver market. Many people want to live in the hot neighborhoods: Wash Park, Platt Park, Harvard Gulch, Highlands, Downtown . . . but they are intimidated by the competition, how quickly things are selling, and the low inventory. I have heard many of them say that they are just going to wait and buy when prices come back down and as soon as the "real estate bubble" bursts.
There are two things wrong with this thinking. The first is the assumption that we are in a "bubble". I do not believe that this is the case. The crash of 2006 - 2007 was fueled by sub-prime loans and buyers being overextended. When the market corrected many buyers were upside down in their homes and could not afford their payments. The real estate world in Denver in 2017 is being fueled by a strong economy, job growth and a growing population. This is not "inflated" growth. High prices are also being fueled by a low inventory of homes to sell. Because of Colorado's stance on condominium liability, there are not many "starter" properties available and many people who might normally sell are holding on to their homes as rentals, because Denver has such a strong rental market.
The second problem with the "I will buy later" proposal, is the assumption that prices are going to come down. Statistics show that prices are slowing from the earlier double digit yearly gains, but they are still climbing and do not show signs of stopping or going flat. If the economy stays strong and people keep moving to Denver, I believe that housing is still a great investment.
Why is now the time to buy? This is probably the cheapest you are going to be able to get into the market. If homes are going up by 5-6% per year, you will pay 5-6% more next year than you will pay now. If you get into a home now, that 5-6% increase becomes equity in your new home.
If owning a home is meaningful to you and you can get into a home for close to what rent would cost, then it makes sense to buy now! We would love to help you find your new home. We love to work with first time buyers! Give us a call today: 303-495-8363.