Back around 2005-2006 the US housing market saw a "bubble" which lead to the foreclosure crisis of 2007-2009. With home prices rising quickly in 2020 and 2021, many homeowners (and prospective)
Common Things to Look Out for Before Buying Your Dream Home
Dated: April 15 2021
It is easy to become overwhelmed when you decide to buy a home.
Friends, family, colleagues, and even acquaintances will give you their opinions whether you are a first time home buyer or you're buying your "forever" home. While most of them are looking out for your best interest, or maybe they want a great place to visit, they are not fully aware of what is happening in the housing market.
When it is time to buy, it is important for you to be prepared. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision.
Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Growing family? Shrinking family? New job? Before you make the plunge, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. As we've seen during the past year (due to the COVID-19 pandemic), home buyers are focused on how the house will impact themselves and their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four Primary reasons people buy a home: (1) schools for children, (2) a safe environment, (3) more room, and (4) control of your own space instead of renting.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, what is most important to you? Spend time with your significant other, spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. In fact, the Denver housing market has been very strong this spring. House prices are climbing, inventory is low, and homes are selling quickly. We've seen some increases in mortgage rates, but they are still at or near all time lows. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The sales price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Talk to a mortgage broker (we can give you referrals) and ask where they see rates in the near future.This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Only you (and your family) can determine the right time to purchase your dream home. Knowing why you want a new home, your budget, and your "must have" home features will make the process easier and less stressful!
We are The Kearns Team, and we bring a new perspective and over 30 years of real estate experience to the Denver and Colorado Front Range real estate markets. In today’s real estate environment, yo....