MARKET WATCH – July 4, 2022
Best Time to Buy a Home
Should you buy a home now? When is the best time to buy a home? Watch the latest housing market update to learn what is happening in the current Denver housing market.
Presented by Nathan Beauchamp, Managing Broker at Nathan Mortgage and Bryan Molaska, REALTOR® at Realty One Group.
Transcript
Nathan Beauchamp: Hi guys. Nathan Beauchamp, owner and managing broker of Nathan Mortgage, here. And I’ve got my, my friend and REALTOR® Bryan Malaska. He and I were having lunch earlier today and talking about how the market’s changed.
Is Now a Good Time to Buy?
Bryan Molaska: I think there is a unique opportunity, a unique window of opportunity right now. We’ve all heard the battle stories over the past several months and they are true as true can be. Twenty offers on a property in 24 or 48 hours. Multiple offers, cash offers.
Bryan Molaska: To the point where I had, and I’m not alone, had many buyers who just flat out tapped out and said, “I can’t do this.”
Nathan Beauchamp: Yep.
Bryan Molaska: The good news is those days are over. Inventory is up right now. There’s much less demand. Interest rates are they’re still historically low, right?
Are Interest Rates High?
Nathan Beauchamp: They don’t feel low to someone whose friend got a, you know, 3%, ten, you know, ten months ago, twelve months ago. Yeah. But in the, in the scheme of like over a 40-year period, we are still in the extremely low-interest rate category. Even though it’s 6%.
Should I Wait for Home Prices to Lower?
Bryan Molaska: If you’re gonna wait until prices settle, that is not gonna happen. Everything that I’m seeing and experiencing tells us that in the Denver Metro area, we’re going to see between a 5 and 6% increase over the next 24 months again.
Nathan Beauchamp: Yep.
Bryan Molaska: Right. So it’s not gonna be this 10, 12, 15% growth. Thank goodness.
Bryan Molaska: We’re now in a sustainable market.
Nathan Beauchamp: Right.
Bryan Molaska: Accessibility is there for buyers. And prices are gonna continue to climb. So we have an opportunity for buyers to capitalize on the future equity in these homes.
Bryan Molaska: Can you speak a little bit more about that, that interest rate conversation?
Should I Wait to Buy for Lower Interest Rates?
Nathan Beauchamp: Yeah. So, you know, let’s say you are thinking “Hey, rates are too high. I wanna wait for them to come down”. Well, for one, we don’t know that that’s gonna happen.
Bryan Molaska: Um,
Nathan Beauchamp: It’s, it’s likely that at some point they’re gonna be lower than they are now, but is that gonna be six months from now?
Bryan Molaska: Right.
Nathan Beauchamp: Twelve months, two years, three years. No way to know with certainty. So, you could be waiting for an indetermined amount of time. What I always tell clients is like the number one reason to buy a house is to live in it. And if you’re in the mentality of, Hey, I wanna buy real estate, cause I want to maximize investment. That’s a different game than, Hey, I’m buying a thing because it has intrinsic value for me to own my own home, to build equity, to do it at what I like and to live in it the way that I wanna live in it. So that’s in my mind like the primary reason to buy a home. So I, I tell clients like, you know, be a little agnostic in terms of rate, be a little agnostic in terms of what you think the market is gonna do. Stock advisors say, don’t try to time the stock market, because you can’t right. Even experts get it wrong. Even hedge funds go bankrupt cause they make big bets that go wrong.
Ready to move? Learn if now is the best time to buy a home.
Bryan Molaska: I’ve seen too many sellers lose opportunity. I’ve seen too many buyers lose money and opportunity by trying to time the market. When is the best time to sell? When is the best time to buy? When you need one, it’s like when you are ready. Yeah. When you’re ready for this for, for home ownership, that’s the time. When’s the time to sell. When you’re ready to sell right. Period, end of story.
Nathan Beauchamp: I moved to Colorado in 2016 and I thought, Hey, maybe we might be near the peak. Should I really buy a home? Right. And you know, why I bought one is that I decided to take the advice that I give other people. I bought a house to live in. And from 2016 till now, you know, that home is, I don’t know, like most of Denver gone up 70, 80%. If I had done what my gut was telling me, which was to play it safe I would’ve lost a very significant chunk of capital.
Bryan Molaska: I haven’t seen a window of opportunity like this for months and months and months. Right. And it like, again, the writing on the wall says it’s, it’s a fair and fine time to be buying in Denver Metro.
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Have questions about the best time to buy a home? Contact us for a free consult at (303) 277-1506.