Denver is known for lots of things: fantastic weather, spectacular views, and great dining, just to name a few. But buying a home here can be challenging, especially for first timers. Here we’ll go over a few pros and cons to buying in Denver’s competitive market.

1.     Inventory is down

While more homes are being listed, inventory in Denver remains low. According to the Denver Metro Association of Realtors July trends report, there were 4,056 homes on the market, which represents the lowest July on record.

When inventory is low, buyer demand tends to tick upward. And when demand exceeds supply, it can make home prices more expensive, which is exactly what’s happening in Colorado right now.

2.     Home are less affordable
In February of 2016, the median home price in Denver was $325,000. The median price of a single-family home sold in metro Denver in June reached a record $600,000. Renovated homes in desirable areas will run you the most money, but there are more affordable pockets here and there, especially if you don’t mind a fixer upper.

3.     Mortgage rates are low
In some good news, one benefit of buying a home here today is that Colorado mortgage rates are sitting at very competitive levels. Currently, the average 30-year fixed mortgage rate for a new home purchase is 3.133%. And if you can swing the higher monthly payment that comes with a 15-year loan, you may be eligible for a mortgage rate as low as 2.310%.

4.     The market is starting to balance
While it may not be a “cool down” per se, homes are being priced more reasonably and it’s not quite the feeding frenzy we saw at the beginning of the pandemic. Less competition means your offer may be more likely to be accepted.

Depending on your timeline and budget, now could be a great time to buy a home in Denver. But if your finances won’t allow for a mortgage payment you’re comfortable with, it may be best to hold off. If you’re ready to test the waters, contact Metrowest today – we’d love to help you start the process!