Employment is going up, Interest Rates are still down and Home Prices are still below peaks in most areas.
Employment has been a huge issue with home values. The next generation of home buyers—the Millennials—has been particularly affected by the nation’s job slump. Saddled with student loans and tight lending restrictions, many in this generation have been living with their parents to save money until the economy picks up. Employment numbers have been getting stronger month after month. The U.S. economy is finally adding jobs—about 200,000 new jobs per month. What this will do is make it possible for the Millennials to move out of Mom & Dad’s home and move into the housing market, and that is a lot of demand!
Interest Rates are below 4.25% right now! A loan for $200,000 will cost $983.88 per month, P&I. Average rents in Denver is just over $1,200! Right now, it is more affordable to buy the homes that people are renting. Interest rates cannot stay low forever, Time to take advantage!
Home prices in most areas are still below their peak in 2007-2008. That means that with the recovery, prices are expected to increase over the next few years. Buying a home now still gets you in as the values are still rising. Most indicators are pointing the the fact that we are not at the top and should’t be for some time now.
Time to buy!
Contact Jeff Hansen for more Real Estate Advice