The real estate market has always operated in a cycle. Home prices increase steadily, peak, then decline sharply, resulting in a flattened market. As you very well know, the last peak in the housing industry was 2006, after which home prices tumbled and continue to remain low.
With all of the negative comments about the housing market, are the conditions actually signs that you should make your move to buy a home in Denver today? Well, not today, but you know what I mean. Let’s take a closer look at the market to see if there are factors that indicate it may be approaching its last dull moment.
First, very few new homes are being built. At the bottom of the real estate cycle, new construction is essentially non-existent. If we haven’t hit that point yet, we are nearly there.
There is also a growing demand for housing as buyers wait on the sidelines longer and longer. Eventually, this pent up demand will be unleashed on the market, and the cycle will continue.
Rents are rising for those that are not buying homes. Recent studies show that for those with the necessary means, buying a home is actually cheaper than renting in many of the country’s biggest cities, including Denver.
Finally, experts believe that when negative outlooks and statistics put pessimism among Americans at an all-time high, things start to look better. We will see over the next few months if things begin picking up like many expect them to.
By looking at these factors, one will conclude that we are at or very near the bottom of the real estate cycle, and the positive qualities of the market will begin to take hold in the very near future. If you are considering buying a home in Denver, now might be the be the best time to take advantage of mortgage rates at historic lows and lower-than-we’ve-seen home prices. Call me today to learn more about the local housing market.