Where will the market be in 2016?
The average price of a single family home in metro Denver rose 8% in 2015 and we’re expecting the trend to continue with a 6%-8% increase in 2016. The condo market, incredibly enough, did even better with an average price increase of 16%. These numbers are due to the low number of available homes for sale.
It’s a bit of a Catch 22, where many potential sellers think they won’t find what they’re wanting in their next home because of the lack of homes for sale, which in turn causes them to wait to put their home on the market. This keeps the inventory low and prices rising.
If you’re thinking about buying, this Catch 22 could make you hesitant to jump in and start looking. If you’re in a place where buying makes sense; you’ve got a stable income, a down payment and plan on staying put for a few years, then now is a great time to buy. The rise in home prices will work in your favor in the long run, for example if you’re thinking about purchasing a $300,000 home but decide to wait a year that same home will now cost you $324,000. By purchasing now you will have saved yourself $24,000 plus the additional interest you would pay on that $24,000. Who doesn’t want to save thousands of dollars?