Thornton and Henderson Home Buying – Are You Sitting on the Fence?

Whether you are looking for a home in Broomfield, Northglenn, Thornton or Henderson, one of the things that most home buyers are trying to do is “time” the market.  No one wants to pay too much, and from what the national news is saying, it is still a “buyer’s market”.

What many buyers think this means is that there is an abundance of available inventory, with sellers practically desperate to get an offer- any offer.

Home affordability is at a record high.  Right now, there are three main reasons for this:

  1. Income in Denver and Denver suburbs has become fairly stable. The unemployment rate is currently 7.8% in the Denver area.  That’s quite a bit lower than the 9.1% national rate, and the 8.3% Colorado rate.
  2. Interest rates for mortgages is still at an all-time low. Ask a mortgage broker, and she will quote you a rate anywhere from 3.25% to 4.5%.  It depends on the duration of the loan and the bank, of course, but the bottom line is that rates are LOW.
  3. Home prices have declined. Anyone who bought their home in the past year or two will tell you that they were able to buy a nice home in a desirable area that they never would have been able to buy 5 years ago.

In reality, when my clients have been searching the available homes for sale, there has been a surprising trend.  What you don’t often hear is that the available inventory is at an all-time low. Many of the distressed home owners have already gone through their short sale or foreclosure, and the “regular” sellers are starting to come out.  Not everyone who wants to move is doing so yet, and winter is here- traditionally a slow time for newly available homes.

What’s more, right now, people looking to buy homes in Henderson and Thornton are mostly looking for homes in the under $300,000 range.

What does this mean for the average home buyer?  Competition!

Case in point: The last several homes I have listed in Thornton and Henderson have gone under contract in an average time of 15 days.  All have received offers at or above asking price.

Still on the fence?  Consider the reasons why homes have been so affordable, as mentioned above.  Now consider this:

  1. Income is likely to remain stable in the Denver area, and if the analysts are reading the trends right, they will improve in the next year.
  2. Mortgage rates will go up.  It’s a given.  Once employment and the economy improves, the rates will go up.
  3. Everyone is waiting for the “bottom” of the housing market.  I think we have already seen it in most neighborhoods.  In fact, homes priced in the $85,000 to $200,000 have gone up 8% over the past 12 months.  Even homes priced from $200,000 to $300,000 have seen a 1% increase.
  4. If you are thinking of buying a luxury home – one priced above $300,000 – those have dropped 10% in the last year.  This is great news for those looking to “move-up”, as that is the perfect storm.  The lower tiers of the market have increased in price, while the higher tiers have not yet recovered.

Every neighborhood in Thornton, Broomfield, Henderson, Northglenn and Westminster will come with its own unique market personality.  Call me at 720-341-5235 to find out what the market looks like in your neighborhood!

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