Have you been thinking about when to buy a home in Denver in 2023? First, be sure to go and check out part 1 of this series right here. That will explain why I think now might be the best time to buy a home in Denver in the past 3 years.
Once you have read that link be sure to come back here. In Part 2, I will explain how to get over the one thing holding buyers back. Interest Rates!
How To Get Over the One Thing Holding Buyers Back Right Now
Most buyers looking to buy a home in Denver are sitting back and watching right now, they are on the shelf just waiting. When you ask why? The number one reason I get is interest rates.
Here is some good news right off the bat! Interest rates are currently in the mid to high 5’s. Guys, they were in the high 7’s just 1-2 months ago. I think seeing the mid 5’s is great as a normal interest rate over the past 15 years has been in the range of 6-7%.
Those 25 and 3% ranges we were seeing WERE NOT NORMAL. Just like the crazy covid market was not normal, those low, low interest rates were also unreal. So that 5% range is pretty great. Number 1 on getting over interest rates is likely doing your own research as to what is normal and not normal.
Taking Advantage of The Current Market to Buy a Home in Denver right now!
So, interest rates as I type are in the 5’s. We all know this could change quite quickly. The good news is, as buyers are sitting on the shelf and the market normalizes there is opportunity. Opportunity to negotiate the interest rates down are better than they have been in years.
We are seeing buyers able to negotiate thousands and tens of thousands to help buy down their interest rates. What does this mean? This means at closing they can use the seller’s money to buy an interest rate down 1-2%. These interest rate buy downs all look different. It is best to talk to a mortgage lender to have them explain it to you. In general, this buys down last’s a certain amount of time. So, you may buy a 5.5% interest rate down to a 4.5% for a one-year period. At the end of the period, you can refinance if interest rates are lower. I have mainly seen 1-2 year buy down periods, but I have had my own buyers get their interest rates down by 2% which can be quite a savings for them.
It has been a long time since we have seen buyers be able to use sellers’ money for this kind of advantage.
Other Advantages to Think of When it Comes to Savings
The interest rates are not the only thing to consider right now. Yes, they can make a payment higher, but we are seeing some of that balanced out. If you were in the housing market 2020, 2021 and early 2022 you know the craziness that was happening. You likely know of or heard about people bidding $100,000 over on a home. So, say you had a $450,000 home and you bid $100,000 over then you are paying on a $550,000 home. Right now, prices are coming down and with room for negotiation, you may be able to get that same home at $525,000. If you were still in the craziness, you may be paying $600,000 upwards for that home! You may end up paying less, even with a higher interest rate then you would have had the market continued going up and up at crazy levels.
You are also able to negotiate those expensive inspection items that you were previously having to budget for yourself, saving you more money.
What the market will do over the next few years is hard to predict. If you are thinking of buying a home in Denver and are planning on holding on to it for a while, then now could be a wonderful time to buy!
Click here to get my free buyer’s guide to help you navigate the market!
I'm Haley Bartlett and I am here to help your real estate transitions go as smooth as possible. From helping you with home staging to setting you up at the beginning of each week to make our transaction run smoothly. I am here to help!
9800 Pyramid Ct, Suite 400, Englewood CO 80112
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