I came across this article about how all cash buyers are cornering a market that has historically been driven by first time home buyers. To read the entire article, click here.
In my experience over the last 12 months, I’ve seen this first hand. Last Spring & Summer, first time buyers were being outbid by investors or individuals with the ability to pay cash and also offered far over the listed sales price. It was heart breaking to see time and time again when a buyer would be first in the door for a showing, make a full price offer (in some cases even go over asking price) and still be pushed out by cash deals. “All-cash purchases accounted for 42.1 percent of all U.S. residential sales in December, up from 38.1 percent in November, and up from 18.0 percent in December 2012, according to a new report from RealtyTrac. First-time homebuyers, historically about 40 percent of the market, accounted for just 27 percent of sales nationally in December, the lowest since 2008.”
Also mentioned, is a good point about how the increased appreciation of property drives prices higher and higher, making a home purchase even more difficult. Lastly, first time home buyers are also weighed down with heavy student loan repayment and credit card debt, so the new mortgage rules that have gone into effect this month push off the dream of buying a home for many. If you’re in the market to buy a home this year, my experience is to avoid waiting to buy a home prices for many reasons:
- before prices continue to rise
- before interest rates rise, as predicted a full point increase by end of 2014
- the increased activity of buyers flood the market during the “heavy buying season”
- as lending rules and regulations make it difficult to qualify for a loan.
To those that live in and around the Denver Metro area, it’s no surprise the draw that this city has on many. Denver has so much going for itself as a place to call home and also for big business companies to invest in, it’s no surprise that we are experiencing a huge increase in relocating young professionals and businesses alike.
Most of the great attributes mentioned in the article I was already aware of. Here are some of the interesting items that I didn’t know about:
- “Denver has a growing and diverse industry — mutual funds, natural gas, technology… Denver now has a vibrant downtown. It never used to. So now you have a true mix of city and sky.” Finally we are just considered a cow town any more!
- “Equity Residential, America’s largest publicly traded multifamily landlord, called the Mile High City one of its top three growth markets for 2014.” More evidence that the market is strong with investment opportunity
- Denver was tied with Seattle for the third-biggest increase in 25- to 34-year-old residents from 2008 to 2012.
- Denver’s unemployment rate was at 6% in October 2013 which is under the national average of 7% – More companies are relocating to Denver to take advantage of the highly diverse work population.
And now for the music-to-my-ears data, “the median price of a single-family Denver home was $285,000 in the third quarter, up 9.7 percent from a year earlier, according to the Colorado Association of Realtors. Properties spent 39 days on the market, down from 63 days in the third quarter of 2012.
With Spring upon us in just a few months, now is the time to reevaluate your long term intentions in Denver and if you’re serious about sticking around the Mile High City, to consider making an investment. You’ll be glad you did!
To read the article in its entirety, click here
As 2013 comes to a close, I’d like to thank you for your continued support and confidence that you have placed in me as your Denver real estate specialist.
To friends, family and the professional relationships made throughout the year; I value the opportunity to help with all things that move you – real estate and yoga.
Best wishes for a wonderful 2014!
~Kelly Rose Tierney
“She took the time to get to know us and was very responsive. She never acted like I was bothering her… It was really great working with Kelly. She helped us tour many areas of the city, and then hone in on [the] Hampden [area], where we couldn’t be happier. She was always available, prompt, and took as much time as needed to explain things in plain English!”
– Dave B.