Is now a good time to buy a house in Colorado?
Navigating today’s housing market might feel like navigating a storm. With headlines shouting about high interest rates and sky-high home prices, many potential homebuyers are feeling trapped. How do you know when it’s the right time to buy a home? If you can manage the monthly payment, now could be a great time to buy a house in Colorado. Let’s explore why.
Buying a House Now or Continuing to Rent
Here’s a real-life scenario: A colleague of mine recently reconnected with a client who considered buying a house back in 2019 alongside her mother. They had a budget of $475,000 and found a nice little home within their price range. The estimated monthly payment, with tax and insurance, was about $3,000—which felt steep compared to their $2,000 rent. They decided to postpone the purchase.
Fast forward to today, their rent has shot up to $3,000—the same as that old monthly payment, but without a home to call their own. Had they locked in the mortgage rate back in 2019, not only would they be paying a monthly amount equivalent to their current rent, but they’d also have built substantial equity in their home. Moreover, the home’s value would have appreciated, offering them a higher net worth and financial security.
Start Building Your Wealth Now
With a fixed-rate mortgage, your monthly payment stays the same, even as rents keep going up. And as you earn more money over time, that payment feels smaller in your budget. Plus, while your rent money vanishes each month, mortgage payments build your wealth as your home’s value grows.
Let’s peek into the future. Imagine four years from now. Will your rent be even higher? Probably. But if you buy a house today, your monthly payment stays the same while your income likely grows.
The numbers also tell a compelling story. According to the National Association of Realtors, the average net worth of renters stands around $8,000, while homeowners boast an average net worth of $300,000—that’s a huge difference that shows the wealth-building potential rooted in homeownership.
Don’t Wait for the Perfect Home
It’s common to want your first home to be your forever home. However, most Coloradoans only live in their homes for an average of eight years – and many outgrow their homes within two years. Your initial home purchase doesn’t have to embody your dream home; it merely needs to serve as a springboard toward long-term financial growth and security. By stepping into homeownership, you join a community of individuals progressively building their net worth, one monthly mortgage payment at a time.
Is Now the Best Time to Buy a House?
Looking back, the best time to buy a house might have been years ago. But since we can’t time travel, the next best time is today. The housing market across Colorado is still hot, and the sooner you jump in, the more you can benefit in the long run.
Beginning your homeownership journey may seem scary, but with a proper budget and guidance, you could very well be on your way to securing long-term financial stability. So, is now the right time to buy a house? If you’re ready, it just might be. The key to your future home, and a solid financial future, could be in your hands sooner than you think!
If you’re ready to take the first step in planning your budget and determining if now is the best time for you to buy a home, schedule a time to chat with our experts or test out a mortgage payment calculator.