WHY THE MARKET IS MORE THAN MEETS THE EYE
To a casual observer of Northern Colorado’s housing market, it might seem unlikely to hear that local real estate activity remains vibrant. That’s due in part to influences that keep housing affordable and in demand for many.
The natural question would be, “How is real estate attracting buyers if median home prices are rising and interest rates are above pre-pandemic levels?”
Overall, today’s homebuyers look different than those from the recent past. The median age for first-time buyers last year was 38 – up from 31 just 10 years ago, and the highest on record. Combine that fact with the knowledge that millennials (ages 25-43) make up the largest segment of the adult population in Colorado, and it speaks to pent-up demand in our region.
“What about affordability?”
As the age profile of new buyers is changing, so are the factors for affordability.
We suggest asking three questions of yourself to help you decide if you are financially ready to enter the housing market.
1. “What do you earn?” Assess your household income. If you’re a potential buyer in your later 30s, you’re likely to be in a much stronger earning position than you would have been when you turned 30.
2. “What do you have?” Consider your assets. Chances are you have accumulated some non-real estate investments that can strengthen your position as a borrower.
3. “Who do you know?” You may have relatives who are able to help with your purchase. In growing numbers, first-time buyers and repeat buyers are receiving down payment support from parents and grandparents.
If your answer to any of these questions is favorable, it may mean you are in a better-than-expected position to become a first-time homeowner, or to move up to your dream home.
Call me to discuss how you might be able to afford a new home.
Read the Full Insider here: The Group Real Estate Insider
