As median home prices have risen in the Denver area (and beyond) over the past year, rent is on the rise as well. Nationally, rental rates have risen 5.1% year over year from October 2011 until last month. In Denver, rental rates have increased a whopping 9.4% over the past year! A 3 bedroom 2 bath home available for rent last year on the South end of town might’ve gone for $1250 – this year the same place will cost closer to $1400 bucks.
What does this mean for Buyers? Higher rent means less extra money to save toward a down payment on your planned home purchase. If you are planning a purchase, think about cutting back on monthly expenses now in order to save more toward your down payment. Home prices will likely continue to increase, especially as we move into the busy spring sales season. Call me – I’m happy to refer you to a mortgage professional who can prequalify you for your upcoming purchase.
What does this mean for Investors? Don’t wait! Let’s talk about your investment goals and start looking for great deals in your desired neighborhoods. Rental income is a lucrative option, and this type of passive income makes a great investment in a rising market like ours. Home prices are on the rise, but there are still deals to be had if you know where to look.
What about Sellers? Today’s lucky sellers are seeing Denver-area price increases of 10.1% over last year! Now is a great time to sell, and there is no reason to wait. November-December-January is a fantastic time to capture serious buyers. There is typically less inventory available, and fewer looky-loos than we see during warmer months. You may be considering listing your property next year. Call me to find out what your home is worth, and to discuss strategic timing to get the most money for your home sale.
I’m just a phone call or email away. If you have questions about your home, your neighborhood, or your ability to successfully buy or sell a home, give me a ring.