Homebuyers Looking on the Bright Side this Selling SeasonAmanda Molitor
Over the past two years, many factors have contributed to a boom in homebuying activity that has sparked a trend of appreciation of home prices and accelerated the speed of the market. However, despite the negative media surrounding the market, homebuyers remain largely optimistic – and for good reason. According to a survey from Ojo Labs, 50% of homebuyers feel optimistic about buying a home in the next three months – which is when the market is typically at its most active. Whether it’s a buyer’s first-time purchasing or they’re looking to upsize or downsize their home, maybe the grass is greener in a yard of your own. Let’s look at some of the opportunities to succeed in the current real estate market.
Competition Creating Opportunity
Inventory has long been a challenge for the real estate market and the buyers that compete for the homes that are available. While this can seem like a deterring factor for homebuyers, the competition in the marketplace is also prompting sellers to enter the marketplace much sooner than they may have originally planned – increasing inventory.
Over the past month, many communities have seen a slight increase in inventory on the market – such as Denver Metro where the number of detached single-family homes on the market rose by 21.9% in February compared to January. As we enter the spring, when the selling season is typically at its highest, additional homes will continue entering the market giving buyers more options to choose from.
Owning is More Appealing Than Renting
While home buying might seem intimidating for those who have been renting, making the decision to invest in property may save them more money in the future. This steep increase in rent prices is encouraging more consumers to enter the real estate market to find their first home, take advantage of the current interest rate, and begin accumulating equity in a residence of their own – making homeownership even more exciting than before.
This is because as home prices rise, so do rent prices. A newly released report from realtor.com®, stated that more than half of metropolitan areas will see starter homes becoming more affordable than rental properties. In January, the monthly cost of buying a starter home was more affordable than renting a similar-sized apartment in 26 of the 50 largest metros, according to realtor.com®.
Pandemic Relief Assistance is Still Available
There is a significant portion of consumers who are still reeling from the financial impact of the pandemic. But did you know that the federal funding program, Homeowner Assistance Fund, which was implemented to help homeowners recover from the impact of the pandemic, is still in place within many states including Colorado? This program is currently available to those how currently own and occupy a primary residence in Colorado, have experienced financial hardship after January 21, 2020, and provide income documentation and have a household income equal to or less than 100% of the area median income in their county. This assistance program can help those who need financial assistance to begin living the life they love in a house that feels like home in Colorado.
Find the perfect home for you with the help of LIV Sotheby’s International Realty. Visit livsothebysrealty.com to browse our selection of homes, learn about the latest market updates, and more.