Buy or Sell with Projected Declines in Colorado Real Estate Market?Posted on May 04, 2017
Some Colorado real estate market analysts project of a drop of 30 percent in prices at the end of 2019. Is it a good time to buy or sell homes in the Castle Rock and Westminster area? Considering analysts see a run-up of prices between 2017 and 2019, most buyers who don’t procrastinate will preserve their equity. According to a recent article by thedenverchannel.com, a data mining company looked at housing trends, analyzing the Colorado real estate market. They focused on Ft. Collins, Denver, Boulder and neighboring communities. They predict an average drop of about 9.3 percent over 5 years starting in 2019. Since most sellers have a buy another home, it’s better to sell and buy within the next two years rather than wait until a sudden decline. Also, consider a few other prudent steps to protect yourself from housing declines.
Opt for a fixed-rate mortgage
Because mortgage rates will likely go up, most financial experts recommend home buyers choose a fixed rate mortgage. Although some feel tempted for an adjustable rate or interest only loan, those types of mortgages work better when rates go down.
Focus on the neighborhood
Another important rule is to buy a Colorado home in a neighborhood that you like in a better area. According to a piece by trulia.com, there are five clues that you found a neighborhood to boost your resale value later. Walkability, amenities, historic charm, unique homes and good schools are all factors that protect the value of your home even during a housing decline.
Even though some predict values will go down after 2019, most real estate professionals forecast healthy housing price growth in the next two years. Plan to stay put in your home for at least 7 years or longer if you plan to make a lot of costly renovations or improvements. If you want to buy and sell in a short length of time, keep a close watch on the local real estate market.
At Team Lassen, we work with families and individuals relocating to Colorado as well as those looking for a first home or step-up home in the Castle Rock, Westminster area. For more information about the Colorado real estate market, please contact us.